First appeared in USA Today
Despite last year's bankruptcies of several solar
manufacturers, including government-backed Solyndra, the U.S. solar and wind
industries continue to expand in the face of obstacles this year. There is even
increasing production of Solar Carports.
Newly installed solar panels produced 109% more electricity
nationwide last year than in 2010, reaching a record 1,855 megawatts, as the
price of these panels plummeted by more than 50%, according to a report today
by the Solar Energy Industries Association (SEIA), an industry group, and GTM
Research.
"The U.S. remains the innovative center of the solar
industry worldwide," says Rhone Resch, SEIA's president. He says
"run-of-the-mill" panels may increasingly be made overseas, but the
U.S. still will make the most advanced solar components and post double-digit
annual growth. He expects solar power, which now produces less than 1% of U.S.
electricity, to generate 10% by 2020.
"There's no bubble" bursting in the clean-tech
sector, Resch says, although he cautions that more companies likely will fail
as the industries mature and cope with decreased government subsidies.
Other recent reports indicate that the U.S. clean-tech
sector remains strong despite Republican criticism of President Obama's
half-billion-dollar loan guarantee to Solyndra and his other support for
renewable energy. Some are looking to Oil
& Gas Expert Witness for information.
Wind power increased 31% last year, says the American Wind
Energy Association, and venture capital invested in clean technology grew from
$3.8 billion in 2010 to $4.3 billion last year, the National Venture Capital
Association says.
Still, even advocates see challenges ahead.
"It's not all rosy. … There have been growing pains of
late," says Ron Pernick, managing director for Clean Edge, a research
firm. He expects "considerable consolidation."
A federal "production tax credit," which lowers
the wind industry's cost of producing power, is slated to expire at the end of
2012. Also at issue:
·
A Treasury Department program, which Resch says
helped many solar start-ups, expired at the end of last year. On Tuesday, the
U.S. Senate rejected an effort to restart the Section 1603 program, which
allows companies to take upfront cash grants in lieu of tax credits.
·
The Department of Commerce is likely Monday to
decide whether to impose duties on solar panels made in China in response to an
unfair-trade complaint filed by Oregon-based SolarWorld and six unnamed solar
manufacturers. If it imposes duties, Resch expects a slight increase in panel
prices.
·
Low natural-gas prices are threatening the
economic rationale for renewable energy. Pernick says the wind and solar
industries will still grow, because more than two dozen states now require
utilities to produce more of their power from renewables. Sometimes a Natural
Gas Expert might be necessary.
