Macroeconomic Analysis of Solar Panel Industry Introduction This article provides the prospect of solar panel electric power generation industry, especially for the local part of the business that are to install the system. The solar panel industry mainly targets the installation in a small scale such as on a family house unlike other major power generation using coal, oil, hydraulic, or nuclear sources although the large scale solar panel power project plant using a vast land to place solar panels exit. The question is whether it is profitable to venture into the solar panel installation business which work as a contractor for the solar panel companies that manufactures, market and sell to the consumers who would like to install the panel at their home or building. The success of the business is basically dependent on the demand from people who want to install a solar system and the supply which involves the cost. All the hype about the environmentally friendly power generation technology seems to be able to maintain the decent level of demand for the next several years and the subsidy from the U.S. federal government to provide the incentives for installing solar panels should help keep this high demand. On the other hand, the consumption behavior of people can largely be influenced by the macroeconomic events in the current, future and expectations. This article of “postal service considering cutting 12,000 jobs” explains the current and future solar panel industry and offers the recommendation supported by economic theory and current economy and even introduces alternative opportunity (booming of the housing market) for those who are concerned about the environment and would like to make a contribution in the field. Industry of Solar energy At first, it is important to investigate the industry itself more deeply. Is the demand for the solar panel really expected to be held high enough to be worthy to invest? The nature of marketing the solar panel is that the consumer needs to put up a fairly large cost to install and ten or more years or so to finally realize the cost saving by decreasing the subsequent monthly electricity bill which they would be paying to the regional electric company. The system installation cost will become lower with the government subsidy which works as incentivizing the installation. However, if it is really beneficial and cost-saving, there is no need for a subsidy to give people incentive to purchase the product, and it will be very difficult to convince people to purchase a product that has so much uncertainty in finally yielding a benefit as long as ten years after for the price of a luxury vehicle.
The U.S. government has a plan intended to promote consumption of solar energy as an alternative source of energy (Hoover, et.al, 20012). A company known as1366 Technologies has received funding from the U.S. government to establish a plant for manufacturing of photovoltaic solar cells. A number of other solar manufacturers and power companies have received government funding ("under the stimulus funds from the 2009 American Recovery and reinvestment Act") to the tune of twelve billion dollars to establish sixteen solar projects (Glenn et.al, 2013: 374). The government subsidies are aimed at increasing the manufacture affordable solar panels for the consumers. The manufacturers of solar panel will apply the latest technology that will result to a significant reduction of production cost of solar panels. “The company plans to cast silicon wafers for solar panels directly from the molten output of industrial furnace” in order to save half of the silicon cost otherwise wasted when cutting the block of pure silicon with a saw (Glenn et.al, 2013: 375). Also, the company intends to coat the Wafers with materials that shall improve performance of the panel. The U.S. government intends to increase the global demand for solar energy hoping to increase U.S. market share for solar panels. However, many people are still doubtful of the effective of solar energy as an alternative source of energy whether at present or in the future.
The demand Graphs for “Solar Powered Lamps”, are continually increasing as people receiving awareness about the benefits, which can be derived from using the product. Governments are encouraging the manufacturing of “Solar Powered Lamps”, helping in promoting the product by allowing duty free imports of the manufacturing components.
The challenges that will be faced are the fact that many countries are already producing their own solar energy and storing it as well using it within the grid system that is already established. It’s called harnessing the energy. The main grid systems are aware of the energy that can be produced and in large countries are encouraging solar power for homes and businesses, solar energy is definitely the way of the future. In Burnaby for example if a home owner installs solar panels on their home and does not use all the power produced, the left over energy will go to BC Hydro the home owner will then receive a cheque for the extra energy Hydro is still hooked up to your home and monitors your consumption.
Even though that photovoltaic systems are one of the fastest growing among the sustainable energy market. First Solar, sale their products to low-income individuals, these individuals will have an option to finance their solar panels system. There is an option of getting just a full loan or just the amount needed to purchase the product, and will only be require to pay only 5% per month of the amount loaned that is with exclusion of a 10% interest fee. The product will be interest free for the first 3 months and the length of the loan payments will be for 20 months. First Solar will make their prices extremely flexible for the Dominican market, this simply strategic way of penetrating the market in a way that both parties will benefit. Our products will get to be known in the market, and this will generate positive brand awareness.
Preview: Today I will discuss the potential that solar power has to become this country’s main supply of energy and the latest research that can make solar power more efficient and cost effective. I will also present the environmental benefits that come with using solar power over other and more harmful forms of energy.
Solar cells have been around since 1883, when the first solar cell was created. Even though they have been around for so long, many people still wonder why they have not been implemented into wide-scale usage already. Solar cells today are highly efficient and can provide enough energy to power many cities today. But what is holding them back from being used in developing countries that have a chance to base their society around them, or in already developed countries? Simply put- the cost.
The year 2011 is seen as the year of transition on the solar PV industry. Europe, the largest market for solar PV, is expected to lose its market share to newly emerging markets such as Canada, India and China. India and China have announced ambitious PV targets and are seen as the next hot beds for PV investments. It is expected t...
United States policy and legislature developments regarding solar energy include the SunShot Initiative, the American Recovery and Rehabilitation Act (ARRA) of 2009, and the Energy Improvement and Extension Act (EIA) of 2008. The SunShot Initiative was enacted in February 2011 and aims to “make the total cost of solar energy fully economically-viable for everyday use, so that all Americans can benefit from this clean renewable energy source.”1 The ARRA invested $114 million into the solar energy industry for the research and development of photovoltaic systems, solar power concentration and high penetration solar deployment.2 The ARRA and EIA created tax credits for homeowners and businesses for their investment in solar power.3 The implementation of these policy and legislature initiatives promote the growth and development of the solar energy industry and therefore positively impact Sun Edison.
In this paper the externalities of three types of power-generation will be discussed: coal-fired, nuclear and photovoltaic (PV). The economic instruments to internalize the externalities will also be examined.
The sun has been a major aspect of life since the beginning of time. People used many other forms of energy before electricity was discovered. There has been a debate over energy resources for years. Many people are worried about what current energy resources may be doing to the environment. Oil spills and nuclear power plant mishaps have only been a few accidents that have had a big impact on the environment and the people who inhabit it. There are plenty of energy sources that do not harm the environment and are still able to get the job done. Solar energy is one energy alternative that will insure the betterment of the country and, at the same time, protect the natural environment.
Are you one of the million people in America struggling to pay with electric bills? Well solar energy would definitely help you a lot in your life and will support you from the beginning, all the way to the end. It uses renewable energy so you don’t have to waste as much money as you did before! It’s great for the environment and causes no pollution whatsoever once you install it. Many people all around the globe uses solar panels for especially their houses because it’s a great thing to have for yourself, and the economy. The three crucial reasons why you should use solar energy is because of low maintenance, abundant, renewable energy, and due to it’s reducing of electricity costs.
In regard to the current energy profile of the country and the harmful effects of the mentioned main sources of energy, the Philippine government should invest in the renewable energy, solar energy, because of several factors such as its continuous decrease in cost, versatility, low measure in its environmental impact, and its infinite source of sunlight as its main source of energy production.
... budget in order to afford these systems, they will gain their money in short period. Renewable energy is definitely worth it, because it is limitless, harmless and helps to improve economy and peoples lives at the same time.
Solar energy in simple is the energy provided by the sun known as solar radiation. This energy can be used to produce solar electricity or heating. This energy can be for domestic use or even commercial use. The solar technologies are classified into 2 types, the solar photovoltaic (PV) and the concentrated solar power (CSP). For solar photovoltaic technology, the conversion of solar energy to electrical energy directly requires solar photovoltaic cells. In brief, the sunlight strikes the PV cell, the semiconductor material of the cell will absorb part of the light, and it will energize the electrons in the material, allowing it to flow freely, creating electricity. It is known as the photovoltaic effect. The other way to produce electricity
Regarding to solar power, Mistry claims that although the solar power does not generate pollution, it has a lot of costs. To built solar panels with a photovoltaic equipment has high costs. For instance, a photovoltaic system just for a home can cost around $35,000 (Kumar, 2012). However, if our goal for the future is to get a healthy environment, switch fossil fuels for solar power might be the best choice to achieve that goal. According to Kumar (2012), Solar power is a clean and renewable energy so, it decreases the dependency on fossil fuel and also reduces the air pollution. When the sun heats the panel, it generates clean energy which does not pollute the environment. All in all, the costs of solar power might not be applicable when it is certainly the best way for having a clean