Solar power is currently enjoying something of a renaissance: from 0.3 gigawatts in 2000, solar capacity in the United States grew to 45 gigawatts by 2014. Due to improvements in technology, prices of solar photovoltaic cells have come down considerably. Another factor contributing to the popularity of solar has been the fact that new solar installations often qualify for tax credits, rebates and favorable regulations.
Solar power is appealing because it’s a pollution-free form of electrical generation that people can use in their own homes. By using energy gleaned from the sun, they can cut back on their electric bills by only turning to local gas companies and electricity providers at nighttime or when it’s cloudy out. In most cases, excess solar electricity can be sold back to the local power company, so with judicious planning, it’s sometimes even possible to achieve a zero or negative electrical bill.
One of the disadvantages of solar equipment is its high cost, but even this is beginning to change. SolarCity, chaired by entrepreneur Elon Musk, has pioneered a type of solar agreement called a solar lease. These leases enable ordinary homeowners to get a solar system set up on their properties without having to pay a dime upfront. Instead, they agree to pay SolarCity a monthly fee over a specified number of years for the use of the equipment. In almost all cases, the price for the lease is much less than what they would have to pay a normal energy supplier for the equivalent amount of electricity. SolarCity has even released a mobile app enabling customers to track energy production and usage, learn of ways to conserve energy and share information about solar power with their friends.
Tesla Motors, one of Elon Musk’s other companies, has created a product that fits in perfectly with SolarCity’s mission. Called the “Powerwall,” it’s a battery that can store the power generated by solar panels. This stored energy is then available for use later on. This will help negate one of the drawbacks of solar energy: the fact that it’s dependent on the sun being out. The batteries, available in two separate models for residential use, currently come with price tags of $3,500 and $3,000 each. This is a bit too expensive for most people to purchase on a whim, but prices are likely to decline with the opening of Tesla’s Gigafactory, which will be able to manufacture hundreds of thousands of batteries per year and is expected to begin operations in just a couple of years.
Because the Powerwall enables homeowners to time-shift their consumption of solar energy, some electrical companies are worried. Demand for their services will decrease once people become proficient at managing the production and use of the power generated by their own solar cells in ways that leave little room for any outside entities. It may be the case that in the future, old-school energy suppliers will have to transform themselves from primarily sellers of electricity to managers of the grid infrastructure if they want to remain relevant and profitable.
As more and more energy production shifts from oil- and coal-fired plants to clean, renewable solar, we may see total levels of greenhouse gas emissions sharply reduced. This phenomenon is not isolated to the United States – many countries around the globe are keen on solar power. China added over 5 gigawatts of solar capacity in the first three months of this year alone. Indian PM Narendra Modi meanwhile intends to have 100 gigawatts installed by 2022.
Innovative technical advancements, price reductions and creative financing options are combining to make solar power a realistic option for millions of homeowners. Around the world, industrializing nations are taking seriously their pledges to reduce their levels of emissions. Although it’s too early to predict exactly what will happen, it could be the case that humanity, through the use of solar power, can become a net carbon-zero species within a few decades.
