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Solar energy systems can be distributed to generate power at the point of use, decreasing the need for vulnerable and costly power lines. Solar energy systems are already the technology of choice for remote and portable power markets. Solar energy is available during peak daylight hours when electricity use (and price) is at its highest level, thereby easing the burden on current peak-load energy production. Thus, the use of solar energy enhances the security of our national energy supply because sunlight—as an indigenous resource—can be harvested for use in commercial and industrial heating and for electricity production, avoiding the need for fossil fuels in these applications. It will indirectly reduce our need for fossil fuel imports, allowing U.S. supplies of oil and natural gas to meet the demands of transportation and other markets. By reducing our reliance on imported oil and avoiding volatile fossil-fuel markets, solar energy can improve the U.S. trade balance and minimize the effects of world energy price-shocks. Economic Benefits The solar industry continues to grow steadily as costs for solar systems decline in the expanding markets for renewable energy. Since the late 1990s, the market for solar energy from photovoltaics has grown at an annual rate of 20%. The solar industry estimates that growth rates above 25% annually are possible, resulting in a $27 billion market by 2020. This market growth would result in a U.S. solar industry that could employ 150,000 people by 2025.5 With technological innovations lowering costs and increased market growth leading to new jobs and export opportunities, solar energy can become a major high-technology growth industry that contributes significantly to our country’s economic growth while concurrently serving to improve our trade balance. 2.2 Existing Solar Industry The existing solar industry has experienced steady growth throughout the past decade, but has achieved only a fraction of its potential toward solving our nation’s energy problems. Since the 1970s, when the solar-energy market was virtually nonexistent, the business of solar energy has realized 100-fold price decreases, resulting in the production of millions of watts of generating power per year and achieving multibillion-dollar markets. The current U.S. solar industry employs some 20,000 men and women, representing about 300 companies, universities, and utilities.6 The companies range from small-installation contractors to large multinational corporations. These companies have recognized the growing market for solar energy and are investing millions of dollars to increase their market share by diversifying product lines and improving product performance. PV cells and modules and solar-thermal collectors primarily define the current state of solar manufacturing in the United States. The solar industry is growing: according to the Renewable Energy Annual 2001, published by the Energy Information Administration (EIA), solar-thermal- collector shipments surged 34% in 2001 to 11.2 million square feet. The total revenue for all shipments of solar-thermal collectors was $32.4 million in 2001, up 18% from 2000. Nearly 73% of all solar collectors are for pool-heating applications.7 Solar water heaters comprise the remaining 27% of U.S. solar-thermal applications. The energy output of the pool-heating systems installed in 2001 was the equivalent of 664 MW—the size of a conventional power plant. 5U.S. Photovoltaic Industry Roadmap Steering Committee, Solar Electric Power—The U.S. Photovoltaic Industry Roadmap Reprinted 2001. p. 11 6 U.S. Photovoltaic Industry Roadmap Steering Committee, Solar Electric Power—The U.S. Photovoltaic Industry Roadmap Reprinted 2001. p. 17 7Energy Information Administration, Renewable Energy Annual 2001 Solar Energy Technologies Program Multi-Year Technical Plan 11PDF Image | Solar Energy Technologies Program
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