The United States solar market is expected to have more government support under the Obama administration compared to the Bush administration. Mr. Obama has set a goal to generate 25% of the United States energy from renewable sources by 2025. This is a big goal considering that currently less than 10% is from renewable sources, including hydroelectric power. If this goal is realized, renewable energy sales will soar. To further boost the industry, the renewable energy tax credits that were set to expire at the end of this year were extended and in some cases expanded.

On the Downside
Solar development that depends on financing may see hurdles under the current credit crunch, temporarily slowing the rapid growth the industry has experienced. Because the price of certain fossil fuels such as oil and natural gas have recently declined, it is more difficult to obtain financing in the short-term. Hopefully, price drops won’t take attention off of the finite quantity of fossil fuels that is dwindling at this very moment.

Wind energy might be the simplest renewable energy to understand. Yet there are misconceptions about what makes the wind industry turn.

The United States now has nearly 17,000 megawatts of wind power installed, which can supply about 1.2 percent of the nation’s demand for electricity, according to a recent report from the Department of Energy (DOE).

With these numbers projected to grow in the coming years, it might be good to be aware of a few myths that are blowing in the wind.

1. Wind is cheap

No one owns the wind, so it might seem like wind energy should cost less than other technologies that require costly fuel, such as coal or natural gas, to operate.

However, the initial investment for wind energy is high. Large scale wind turbines cost a few million dollars per megawatt to put up, which at face value appears competitive with new coal-fired power plants, but the wind doesn’t always blow. In effect, wind turbines typically only produce electricity about 30 percent of the time, so it takes longer to pay back the building costs.

Taken together with government incentives and maintenance costs over a turbine’s 20-year lifetime, wind energy ends up costing about 4 cents per kilowatt-hour, according to DOE estimates. That’s slightly more than coal, but the two are getting closer all the time.

2. America is way behind the rest of the world

Denmark gets 20 percent of its energy from wind. Germany has the most wind turbines of any country. China is set to nearly double its wind energy capacity in just one year.

You might think the United States is dragging its heels, but in terms of the raw total, America produces more wind energy than any other country (thanks to it being windier here than in Germany).

And more investment is on the way.

One recent headline grabber is the world’s large wind farm project in Pampa, Texas, proposed by oil magnate T. Boone Pickens. This is part of the so-called Pickens Plan to invest $1 trillion on wind turbines throughout the wind corridor from the Dakotas down to the Texas panhandle.

3. Wind turbines are loud

Wind turbines used to be loud, but newer designs are less so.

Some of the bad rap about noise can be attributed to a single wind turbine constructed in 1978 outside of Boone, N.C., which generated low-frequency sound waves that rattled windows and made some people sick in nearby homes.

Since then, most new rotors turn slower and are mounted in front of (not behind) their towers. These and other changes have dramatically lowered the noise, said Pat Moriarty of the National Renewable Energy Lab in Golden, Colo.

Still, some neighbors complain, and the wind industry continues to search for even quieter designs.

4. Wind turbines kill birds

This one is actually true, but the problem is not as bad as some people claim.

The impression that all turbines are dangerous to birds comes from Altamont Pass Wind Resource Area in California. This was one of the first big wind farms, and unfortunately it was placed in a migratory bird pathway, Moriarty said.

In addition, Altamont’s 4,800 small wind turbines — many installed in the early 80s — have rotors low to the ground and packed close together, which may be why more than 1,000 birds (half of which are raptors) die there each year.

Newer wind farms report fewer bird deaths probably because the turbines are taller and spread further apart. And for comparison’s sake, studies show that many more birds die colliding with cars and buildings than die in turbine blades.

5. Any house can own a windmill

Unless you have a good chunk of land around your house, it’s probably not a good idea to get a wind turbine. If it’s too close to buildings or trees, the wind will be turbulent and won’t produce the power that it’s supposed to.

But what do we know. The small wind turbine market grew by 14 percent in 2007. Some of these are for boats, but others supply homeowners who live off the grid.

Solar panels have been in short supply since 2005 because silicon, a key component of photovoltaic solar panels commonly installed in homes and businesses, was limited.

With the federal alternative-energy investment tax credits set to expire Dec. 31, installers and manufacturers have reported a spike in demand for solar panels this year.

“It’s almost a man-made shortage because everyone is scurrying around to get their jobs done before the tax credits expire,” said Ron Kenedi, vice president of Solar Energy Solutions Group for Sharp Electronics Corp., the largest maker of solar panels.

Tucson-based Technicians for Sustainability buys solar panels from Schott Solar Inc. and SunPower Corp. Both makers have told company President Kevin Koch that he will likely not be able to get more panels this year.

“We’ve pretty much taken up our allotment for the rest of the year,” Koch said.

If a business asked Koch to install a 30-kilowatt system, typical size for a commercial job, Koch said he could not take on the project this year.

“I would have to turn them down,” he said.

A typical residential installation would take a 3- to 5-kilowatt system, using fewer panels, installers said. So the shortage is more critical for business installations.

Dave Haycock, of All West Energy Inc. of Fountain Hills, said that his company will take on projects one at a time.

“We have a limited supply,” Haycock said of solar panels.

Scottsdale’s American West Solar, the largest installer in Arizona, has long-term deals to buy panels from Sharp and Kyocera Solar Inc.

But with the increase in demand before the solar credit expires, the company said it cannot take any more orders for 2008.

“We’re fully committed for this year,” said Krystal Book, a company spokeswoman.

The normal wait time for solar projects is a few months, Book said.

Phoenix’s Perfect Power would not have trouble filling orders before the end of the year, but it is not taking any more commercial projects for 2008, said John Balfour, company president.

“We have a plan, we’ve kept to our plan, and we look like we’re going to be right on target,” Balfour said.

(via azcentral.com)

Here’s a few solar stocks that I’ve been following:

First Solar is a long time favorite but it’s been taking a beating. Not sure why; there’s been no significant news. The market as a whole has plunged over the past few days but FSLR’s fall has outpaced the general market significantly. Perhaps it has to do with the drop in the price of oil?

This one looks like it might be testing support.

Here’s a solar index that I currently own. Reflects the beating that solar stocks are currently taking from the bears. Hold on tight, we’re in for the long run!

Eponymous big-box colossus IKEA has shown some great green developments lately, from flat-pack bike trailers to eco-friendly lines of housewares. Now the patent purveyor of all things flat-pack has announced plans to invest $77 million into its GreenTech energy fund with the goal of eventually producing solar panels, efficiency meters, and energy efficient lighting. Granted its massive distribution network, IKEA’s uptake of green tech could pose a monumental shift in the accessibility and affordability of these technologies.

As far as big-box retailers go, it’s hard to dispute the sphere of influence that IKEA casts over the world market. Striking a golden balance between quality and affordability has allowed the furniture giant to build an extensive network of 270 stores in 35 countries, attracting half a billion customers every year. IKEA’s recent investment is exciting because it stands to mobilize these massive distribution channels towards the proliferation of green technology.

IKEA’s GreenTech fund was established eight months ago and is looking to invest in up to ten startups over the next five years. These investments will focus in five key areas: solar panels, alternative light sources, product materials, energy efficiency, and water saving and purification. IKEA hopes to bring its first wave of green tech products to market within three to four years.

Via CleanTech Group and environmentalleader.com

Photo Credit: VeryBigJen

The Japanese government will introduce tax credits and subsidies to encourage household use of solar energy starting next year. The details will be determined in August when the budget is created. The incentive will decrease the cost of a solar photovoltaic system by an estimated 50% within 3 to 5 years.

Japan & Energy
The country imports a majority of its energy. Japan has virtually no oil or natural gas reserves within its borders and is the 2nd largest importer of crude oil. All of the coal used within Japan’s borders is imported. With 55 nuclear reactors, Japan has the 3rd largest generating capacity behind the US and France.

A mere 9% of Japan’s electricity is generated from hydroelectric power and a majority of the sites with good generating capacity have been exhausted. Although this is the main source of self-sufficient electricity, significantly expanding production is not an option.

Japan’s Climate Change Initiatives
Prime Minister Yasuo Fukuda has shown interest in combating climate change and will be the host of the G-8 summit in August. Japan set a long-term goal of reducing carbon emissions by 60%-80% by 2050. Although the public supports reducing greenhouse gas emissions, Japan is currently not on target to meet the goals created in the Kyoto Protocol. Solar energy can help reduce the production of electricity from fossil fuels, thus reducing emissions.

(via triplepundit.com)

From Yahoo Finance:

The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MAC Global Solar Energy index. The fund normally invests at least 90% of total assets in common stock, ADRs and GDRs that comprise the index.