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2.0 Solar Energy Industry, Markets, and Applications Solar energy technologies offer the potential to assist our nation with several critical national problems. First, solar energy can be used to produce heat or electricity in homes, factories, and power plants—displacing fossil fuels—and eliminating harmful pollutants that can contribute to climate and health issues. Second, solar energy captured and used to create electricity or thermal energy enables diversity in our energy mix and reduces our dependence on foreign oil. Finally, solar energy components are high technology and their manufacture creates high-paying jobs. Thus, solar energy can provide critically needed energy, reduce the impact on our environment, enhance our nation’s security, and create economic development. Currently, a significant and growing solar industry in the United States is serving customers by providing solar water heating, pool heating, and solar-electric systems. However, the national benefits will only be achieved with significant capture of market share in larger energy markets. Solar energy components must be successfully integrated into homes, buildings, and power plants to provide value to customers. To date, many of the solar energy systems are significantly more expensive than the traditional options available to customers (e.g., engines, gas heaters, grid electricity). The cost, performance, and convenience of these systems must be improved if solar energy is going to compete in energy markets against more traditional alternatives. Some large-scale solar technologies are close to being cost competitive, but the risk of making such a large investment is an obstacle to commercialization. This section puts into perspective the extraordinary potential that solar energy offers to the nation. This potential will be realized only through research, development, and deployment into a variety of markets and applications. Subsequent sections will discuss in detail the potential applications and benefits of solar energy. 2.1 National Needs and Benefits Solar energy can directly benefit the nation by substantially contributing toward resolving three national problems—air quality, energy reliability and security, and economic development. Our nation’s economic health and security increasingly depends on reliable, clean, abundant, and affordable energy. Energy consumption in the United States is projected to increase by about 32% by 2020.1 Solar energy systems have the versatility to provide clean electric and energy systems for grid-connected power, grid-independent power, water and space heating, industrial process heating, and power plants. Solar energy has enormous potential as a supplement or alternative to fossil fuels for serving energy markets in the United States and developing nations. Clean Energy The advancement of solar energy provides the United States with an opportunity to lead the world to a clean energy future. Solar energy is harnessed by a diverse mixture of technologies that can meet the environmental challenges of today, while safeguarding the future. In 2002, President Bush introduced the Clear Skies and Global Climate Change Initiatives. This plan is an aggressive initiative to reduce power-plant emissions, as well as a new strategy for handling global climate change.2 The major goals of the President’s plan include reducing air pollutants (nitrogen oxide, sulfur dioxide, and mercury), establishing market-based emission trading credits, and reducing overall greenhouse-gas emissions. 1White House Web site, National Energy Policy, http://www.whitehouse.gov/energy/Chapter1.pdf 2White House Web site, http://www.whitehouse.gov/news/releases/2002/02/20020214.html, Fact Sheet: President Bush Announces Clear Skies and Global Climate Change Initiatives Solar Energy Technologies Program Multi-Year Technical Plan 9PDF Image | Solar Energy Technologies Program
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