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Electricity Energy Efficiency Solar Panels

Why Solar is the Fastest Growing Energy Source in the US

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As we approach the new decade, we’ve entered a new world of energy sources. In 2016 solar was the fastest growing source of energy in the world, and it has only continued to grow since. In 2014, renewable energy made up 24% of global electricity generation and is projected to grow to 31% by 2040. By the year 2050, solar energy alone is projected to increase to 36% of renewable generation, up from 7% in 2015.

 

According to executive director of the Paris-based International Energy Agency Dr. Fatih Birol, “What we are witnessing is the birth of a new era in solar photovoltaics (PV). We expect that solar PV capacity growth will be higher than any other renewable technology up to 2022.”

 

What is driving the growth?

 

Projected growth in Solar

Along with recognizing the growth in solar, it is equally important to understand why solar is growing. There are three prime factors that are driving the expansion of solar energy; market conditions, policy decisions, and specific regulations geared toward reducing carbon emissions and moving quickly to adapt renewable energy in lieu of fossil fuels. In 2016, 196 different nations signed the Paris Climate Agreement which sought to reduce carbon emissions by 20% and increase renewable energy’s share of the market to 20% as well as increase energy efficiency by 20%. Independently, businesses are taking their own efforts to utilize renewable energy by building their own facilities using solar roofs. In 2017 a United Nations cited a study from International Renewable Energy Association that found switching to clean energy sources such as hydro and solar could accomplish 90% of the climate goals set by the Paris Accord.

 

Part of why solar energy is experiencing such rapid growth is due to how accessible it is and how easy it is to harness. According to the Proceedings of the National Academy of Sciences of the United States of America, the amount of solar radiation that reaches earth’s surface every hour is more than the total amount of all energy used by human activity in a given year. According to the IEA; India, the United States, and China will account for 2/3rd of all renewable energy expansion. 

 

The U.S.’ booming solar market

 

solar energy

 

While during the previous administration, the United States saw the largest boom in oil production in US history, now the US is poised to see a massive boom in solar production. According to International Business Times, based on reliable indicators all signs point to a huge boom in solar production through 2024 and likely beyond that. The Solar Energy Industry Association cites the passage of the Solar Investment Tax Credit (ITC) in 2006 as the catalyst that provided stability in the industry, allowing solar to experience an average annual growth rate of 50% during the past decade. 

 

The ITC alone has proven to be a highly effective policy in job creation and energy production. Since its passage, the ITC has created north of 200,000 American jobs and added $140 in private sector investment into the economy. On top of that, the ITC helped grow solar deployment by 10,000 percent since its introduction. 

 

Despite recent efforts by the US to pull out of the Paris Climate Agreement, the solar industry is still experiencing rapid growth and prices continue to drop. Even with the current administration’s promises to focus on coal, Green Solar Technologies projects that, “[w]ith the solar industry growing at such exponential rates, it seems that the U.S. is on track to switch its fossil fuel dependence to renewables like solar over time.” Similarly, the SEIA projects that global solar capacity will more than double by 2024.

 

Environmental awareness among consumers

 

Solar energy

Not only is there surge in renewable sources of energy such as solar, led by governmental policy, consumers as well have created a new demand for environmental consciousness. According to a 2018 report from Nielsen, “Consumers in markets big and small are increasingly motivated to be more environmentally conscious and are exercising their power and voice through the products they buy.”

 

With that, according to a survey conducted by Nielsen, in total 81% of consumers believe that companies should play a role in preserving the environment. Nielsen noted that this is not just wishful thinking on the part of the consumer but that it plays an increasing role in the companies that consumers do business with. Particularly among younger generations, consumers are more drawn to engage with companies that take environmental efforts to reduce the harm of climate change, creating a market demand for environmental consciousness. 

 

solar energy

 

Another factor driving this increased demand for alternatives such as solar energy is health and health related issues. A negative externality of climate change is a decrease in air and water quality. Specifically, health issues such as typhoid and asthma are linked to decreasing air and water quality. Similarly, according to the World Health Organization, 12.6M people die each year due to environment related causes attributed to changing climate. 

 

Similarly, on the consumer end of things, the spike in energy prices has created a new appeal of switching to solar as a source of energy. This phenomenon has two main driving points; 1) the costs of solar are dropping at exponential rates and 2) electricity prices are surging. In some ways these two correlate with each other. A Bloomberg report from this past summer noted that the road to a green infrastructure necessarily led to skyrocketing electricity prices. Regardless, recent backlashes against electric companies such as PG&E in California for forced blackouts or APS in Arizona for repeated rate increases, has solar looking like a great alternative source. 

 

Conclusion

 

Solar as a source of energy has been declining in price and rising in demand in tandem with traditional electricity sources becoming more expensive. According to a new article in PV Magazine, the cost of solar has gone down by 89% during the past decade with an average annual decline of 20%. There are multiple factors responsible for the decrease. From a rise in environmental consciousness among consumers to the Investment Tax Credit in the US market and the surging solar market in China, solar energy is projected to soar over the next coming decades not just in the US but around the world.

Electricity

APS Seeks Rate Increase, Opening Lane for Solar to Rise

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Last month, Arizona Public Service company (APS), announced it would seek a new $184 million rate increase. According to the formal request submitted to regulators, the proposed hikes would raise rates for the average household bill by 5.4%. This announcement comes just 2 years after APS raised rates by 4.5% in 2017. Increasing electric rate projections opens up a lane for solar to emerge as an alternative.

APS to hit customers with rate increases

 

APS raising rates

 

In July, the Arizona Corporation Commission ordered APS to undergo a rate case after 2 years of customer complaints over the company’s prices. When casting her vote on ordering the rate case, Commissioner Sandra Kennedy declared, “the people of Arizona are sick and tired of being sick and tired.” The final vote in favor of the case was 5-0. 

 

At the time, AZCentral noted that though the initial reason for the case was in part due to concerns about the company’s prices being too high, that the result of the case could actually lead to higher prices yet. The proposed increases would cost average consumers using 1,020 kw hours of electricity per month an additional $7.50. That rate would of course increase during the summer when usage is higher and decrease during the winter months. 

 

The deal has not yet been finalized and according to Phoenix Fox 10, customers would likely not see any changes on their bill until late 2020. In their request, APS cited its investments in creating clean and renewable energy and improving infrastructure as the need to pull in $184M. The company’s rate case program manager Drew Schroeder commented on the pending case stating that, “The rate case is our opportunity and bring forward receipts and ask for recovery of those investments.”

 

This request comes amidst several controversies involving APS including two heart related deaths as a result of power being shut off during the summer for late payments, and a federal investigation into the company’s spending on political campaigns. “It’s arrogant for them to be coming on the heels of all of those things and asking people for another $184 million,” said consumer advocate Stacey Champion, adding that APS already has the highest electric bills of any utility service in the state. 

 

Soaring electric prices

 

Solar

 

Over the past decade there has been a steady rise in electric prices. According to the Energy Information Administration, electric rates have increased 15% in the last 10 years. In just 2019 alone, EIA projects that the electric rate increase for residential users will be 1.2%. Across the globe demand for electricity has increased. In 2018 global demand rose by 4%. In Texas, which has seen huge spikes in temperatures during the summer of late, the Electric Reliability Council of Texas warned that as demand continues to rise, price rises will follow. 

 

While energy prices have gone up, during the same time, prices for solar have gone down dramatically. According to a study from UC-Berkeley, between 2017 and 2018, the price of solar dropped 11%. Since 2010, while prices for electricity have gone up, the price of solar has plummeted by 85%. Additionally, according to Bloomerg’s New Energy Finance outlook report from this year, by 2050 the price of solar will fall by 63% compared to today’s prices.

 

The cost of installing solar for residential customers today is a fraction of what it was decades ago. While even just 10 years ago the cost of solar installation was around $50,000, today that price averages between $10-14,000. 

 

Financial benefits of switching from electric to solar

 

solar panels

 

Despite the start-up costs, consumers have financial incentives to switch to solar. Estimated savings on homes that switch to solar range from $13-20,000 over a 20 year period. The estimated average 20-year savings for a solar powered home in Phoenix is $8,000. Additionally, the same UC-Berkeley study found that adding solar panels to a home increases the home value by 3.74%.

 

Solar has proven to be vastly more efficient than standard electric powered homes. A huge advantage of solar is its ability to generate energy, allowing for the storage of excess energy for later use during peak hours. Switching to solar also protects consumers from unpredictable rate changes from electric companies. Those elements combined saves households tons of money on their bills. 

 

Today, solar is the fastest growing energy source in the world. In 2016 solar panel capacity increased by 50%. With the release of the 2018 IPCC report on climate change there has been a surge in demand for renewable energy. Yet unlike standard electricity, prices are only projected to continue going down. As prices for electricity increase, solar will soon become a highly sought after alternative. It’s also estimated that by 2030, both wind and solar energy will undercut existing coal and gas almost everywhere. 

 

With APS proposing yet another electric rate increase, now may be the best time to look into switching to solar. As the price of solar continues to fall while electric rates rise adding more and more to household bills, many will start to turn to solar to save money, increase efficiency, and to reduce their carbon footprint. 

Electricity Energy Efficiency Solar Panels

How Much Power Does a Solar Panel Produce?

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“How do solar panels actually work?” This question is asked many times here at Solar Fuse. Well we can answer this question with also telling your how much power is used, per square foot. This question is not a hard question to answer. The main determination is really figuring out what size solar panel system a homeowner needs and what they want. To understand how much solar power is produced per square foot it’s helpful to know what solar panels are made of.

 

How Solar Panels Are Made

Think of it as a math problem with the equation being: If a solar panel is rated to produce 360 watts, and it’s about 3-and- ¼-feet wide by 5-and- ½- feet long, then each square foot must produce about 20 watts, but this is not necessarily correct.

 

Temperature: Temperature has a lot to do with heat. If there’s too much heat, your solar panels may not work as effectively. Once the heat increases to higher than 77 degrees Fahrenheit, then the power is will decrease. The best panels have a low “temperature coefficient”, so the hot temperatures are minimized and won’t affect the energy saving process.

 

Spectrum: Rainy and cloudy days can also affect your solar panels. Contrary to what most think, solar panels work during cloudy or rainy days. The reason for this is because there is still a wide spectrum of light that is being received by the panels. Although clouds block some light, it never fully block all of sunlight or the spectrum. This is the reason that it is still possible to get sunburned during rainy or cloudy days.

 

Angle: Depending on the angles and direction that your home is facing, this will determine the energy you are saving and how the solar panels are working as well. Most solar panels are built with “anti-reflective glass,” which means once light enters the panel it will reflect back into the solar cell to hold as much power as possible.

 

Amount of light: Typical solar absorption is at its peak around noon, but this also depends on the location. Shadows from trees, dust, leaves and other factors can block light, affecting solar panel power output. Shading can not only hurt power production, but it can also damage solar panels over time.