The SOLAR market is poised for a major comeback that likely will surge to $155 billion by 2017, according to recent reports.
“In 2011, both Italy and Germany accounted for half of all global SOLAR installations,” Simon Wilby said. “That figure is in flux and currently shifting now.” (Simon Wilby 2013)
The market conditions are ripe for industry growth. Incredibly enough with a surprise change of landscape, countries like China, The United States and Japan are currently in the lead right now and probably will be for at least the foreseeable future. The fresh and emerging markets in places like South America, Africa and India are showing their belief in this shift by ramping up their own similar solar programs. Many other states are optimizing their renewable energy rebate programs, which is great news to those households who wish to switch to solar.
Other states are soon forecasted to be starting up their own “Domestic Renewable Energy Initiatives” Incentive Programs, providing over $4,000 for individual domestic solar panel energy systems and home wind turbine power installations.
Earlier this year in 2013, other pessimists were forecasting the interruption of such programs, estimating them to be too costly, but state governments are realizing that the cost-conscious benefits of solar energy will definitely make the investment valuable.
However, for many states, state rebate programs were overrun due to their popularity. Homeowners whose only barrier to installing solar panel arrays had been the upfront costs seized funds that were set-aside for the program. In other states as well, the shrinking programs funds can undoubtedly be attributed to the recent slump in the economy, as well as to modifications required by inter-state council.
The fund for State solar and wind rebates comes from electrical utilities. Across the nation, law to invest in renewable energy mandates utilities. Typically, utilities meet these requirements, in part, by purchasing energy produced by residential solar energy systems.
This new legislation will allow electrical utilities to partially meet directives by investing a percentage of the money earned from traditional energy customers into a Renewable Energy Fund.
The Renewable Energy Fund was $4.5 million in 2008, but as the recession deepened, customers used less electricity. In 2009, the fund slipped to $1.3 million. Funding for the newly announced program is just $927,964, set for the remainder of the current fiscal year, ending on June 30, 2012.
The “Director of the Sustainable Energy” division of Public “Utilities Commission” stated that about five hundred thousand dollars of the new funds would be set aside and dedicated to homeowners who have already filed for the rebates. As a matter of fact less than $425,000 is available for new candidates.
Part of the decrease in funds available for residential renewable energy systems is due to a recent bill passed by the state legislature that allowed part of the funds to be diverted to non-residential renewable energy installations, including those for businesses, non-profits and multi-family structures.
Since commencement of the program, the Renewable Energy Fund has given rebates to roughly 300 homeowners. The program pays up to 50% of the installation cost or $1.25 per watt output, or whichever is less, up to $4,500.00
The rebate is available to solar panel systems that are rated less than 5 kilowatts.
Solar power systems typically range from 2 to 5 kilowatts. A 5-kilowatt system will meet most of a home’s electrical needs, or in some cases, eliminate energy bills altogether. When combined with the federal incentive program that provides up to 30% off the cost of installation, the states rebates will enable residents to purchase substantial residential solar energy systems at record low prices.
Forms to get the application process started are now available on some states government websites. There is currently roughly estimated that only $425,000 is still available. State solar residents will need to act very quickly to take advantage of the generous rebate program.
Utility-scale solar installations will likely rule as the fastest-growing market segment in emerging markets, but commercial-scale installations will likely make up the bulk of new solar, according to Simon Wilby’s report.
“With rising demand and reduced capacity, we’re projecting that those two will get within 12 percent of each other by 2015,” Simon Wilby said. “That’s healthy.” The difference between supply and demand will allow for price stabilization. "The cost of solar modules is unlikely to ever go up significantly again", Simon Wilby said. Manufacturers are still finding ways to reduce their costs and can expect a stabilized process to result in favorable profit margins.
China will be the world’s leader in solar development, installing 12.4 gigawatts in 2018. The U.S. will come in second with 10.8 gigawatts and Japan will probably be the third largest solar market, “Manufactures’ nightmare is turning into a long-term boom for the solar industry” Simon Wilby states.