A Brief Introduction
The sun is our planet’s natural source of energy. Due to advances in technology and the demand for cleaner energy, solar power has become a viable and attractive option for homes and businesses.
What Is Solar Power?
Solar power, also known as solar energy or photovoltaic power, is the conversion of the sun’s light into electricity using photovoltaic cells or panels.
The most common type of solar panels are made of silicon wafers, which are processed into solar cells. Solar cells are the fundamental building blocks of solar power and are thus extremely important and widely used. They allow for the conversion of light energy into electrical energy.
How Has It Grown?
The global solar power market was valued at US$16.9 billion in 2016 and is projected to reach US$26.9 billion by 2026.
The industry value is expected to grow at a CAGR of 6.3% between 2017 and 2026.
The relatively high demand for solar power and the technology’s growing maturity and economic viability have driven this growth. According to a research report from Allied Market Research, demand for solar power in the United States will increase from 3.9 gigawatts in 2017 to 7.8 gigawatts by 2027.
Thanks to reduced electricity costs and government incentives, such as the US$0.41 per kilowatt hour federal solar tax credit and the accelerated depreciation for solar equipment, the cost of producing solar power has been declining. The average price of solar power in the United States fell 35% from 2016 to 2017. This is attributed to increased production and reduced demand as a result of the country’s renewable energy portfolio standards (REPS). These standards require utilities to obtain a certain percentage of their electricity from renewable resources like solar and wind power by 2025.
Where Is It Used?
Although homes and small businesses make up the bulk of the residential and commercial solar markets respectively, industries and large businesses have also adopted solar power because of its many benefits.
There are three ways in which solar power can be integrated into a business or industrial setting:
- Off-grid power system – this type of system provides electricity to specific locations that lack the grid connection, usually rural areas or military bases where there is no conventional power supply.
- Distributed power system – this type of system provides electricity to all locations in a specific network and can be controlled from one place.
- PV (photovoltaic) power plant – this type of system is a combination of the previous two. It provides electricity to a distributed network of locations from a central point, like a solar farm.
Who Uses It?
Thanks to its increasing affordability and its many advantages, more and more homes and businesses around the world are turning to solar power. In fact, experts predict that, by 2050, half of the global population will rely on solar energy for at least some part of their daily needs.
The benefits of solar power are becoming more evident as people realize how much time and how little money it takes to generate their own energy. In the United States, about 4.9 million households currently rely on solar power to some extent, compared to 3.5 million in 2015. This is attributed to the increasing acceptance and popularity of the clean energy source, as well as the growing number of people looking for ways to reduce their energy bills.
Why Solar Power?
In simpler terms, solar power is the energy that the sun provides directly to the earth. As the sun has been lighting up the sky for billions of years, it is a perfect source of energy to harness for our needs. The only difference is that now we have the technology to capture and convert this energy into something useful. This is important because, as mentioned earlier, we need to reduce our dependence on non-renewable sources of energy to combat climate change.
The Advantages Of Solar Power
Many people consider the advantages of solar power to be its abundant availability, reliability, and lower cost. Let’s take a closer look at each one:
- Abundant: It is always sunny somewhere, which makes solar power available 24/7. This is in contrast to fossil fuels, which we need to purchase at certain times of the year depending on the seasons.
- Reliable: As the sun provides energy to us constantly, we don’t need to worry about the weather interfering with our electricity supply. Some people even get power from several sunflower farms that are connected to each other, which provides redundancy in case one source of energy stops producing.
- Lower Cost: Producing solar power is cheaper than buying it from conventional electricity providers. The cost of producing solar power has been declining in recent years, which has made it more affordable.
Allied Market Research says that the solar photovoltaic market value will rise from USD 16.9 billion in 2016 to USD 26.9 billion by 2026.
The Rise Of Solar Power
The global solar power market value will rise from USD 16.9 billion in 2016 to USD 26.9 billion by 2026, according to market research firm Allied Market Research.
The industry value is expected to grow at a CAGR of 6.3% between 2017 and 2026.
The relatively high demand for solar power and the technology’s growing maturity and economic viability have driven this growth. According to a research report from Allied Market Research, demand for solar power in the United States will increase from 3.9 gigawatts in 2017 to 7.8 gigawatts by 2027.
Thanks to reduced electricity costs and government incentives, such as the US$0.41 per kilowatt hour federal solar tax credit and the accelerated depreciation for solar equipment, the cost of producing solar power has been declining. The average price of solar power in the United States fell 35% from 2016 to 2017.