Solar in America: Why Are We Celebrating?

American Flag waving under bright sun solar energy For the past 6 years I’ve been following the development of the solar industry, particularly PV, in the United States. While I’m inspired by some of the ideas and innovations I’m seeing, such as the emergence of solar leasing, the Federal ITC and Loan Guarantees, and the continuing reductions overall cost of solar panels and complete solar systems, I’m still not satisfied, and frankly a little disappointed with our progress to date. Why are our most visible industry champions so happy these days?

I’m writing this while sitting at a Starbucks in Davis Square in Somerville Massachusetts, taking an occasional moment to gaze out the window at the passers by on this beautiful warm sunny day, one of the first of the year after a brutal winter. There’s lots of great energy here, young entrepreneurs working on business plans and talking over deals, students hard at work learning about science and technology, and generally expanding their minds. It’s a beautiful thing. So much advancement is happening in this area already and there’s bound to be more to come given the brain power and inspiration in this area. Now that the weather is getting better people are feeling more energetic and inspired, making for great things to come.

Still as I write this, I can’t help but feel disappointed. Earlier today I watched a replay of Rhone Resch’s keynote speech at the PV America Conference last week, the tone of which was strikingly upbeat, with a celebratory tone throughout. In short, more of the same message that we’ve heard from SEIA in each of the past six years.

The highlights of the speech were all about the growth of solar in the US, 102% year over year vs 2009, to 878 MW, and the results of a study by SEIA and Greentech Media finding that 74% of the value of a domestic solar installation remains in the US even if Chinese solar panels and other solar equipment is used. Great news for solar and for the American economy, right?

Not really. If you look at the numbers you see a different picture. While triple-digit growth in any industry is nothing to sneeze at, we need to look at what’s happening in other countries to fully understand how we’re doing here.

Globally, solar PV installations grew by an 140% last year, roughly 38% more than in the US in what we’re calling a banner year at all of the major US conferences.

Let’s look at the backdrop in a slightly different light. While the US economy grew at a mediocre 2.9% last year, solar was flying high. In fact it’s been mentioned that PV is the fastest growing industry in America right now. Why then can’t we accomplish what any functional industry would? These being significant influence at the federal, state, and municipal levels, and more aggressive investment from our financiers?, How about making it easier for the little guys out there to get their piece of this growing pie?  Maybe even some focus on solar geared toward America’s general population? Still, each and every day I meet someone who doesn’t even know what solar is, and I live in a progressive, highly educated area, with strong support for greentech and sustainable building. This is more tragic than grounds for celebration.

2010 and the beginning of 2011 exposed massive flaws in our energy structure through tragedy after tragedy. We saw the largest oil spill in US history, a coal mine collapse that killed 29 and made public numerous safety violations, and today we face the fallout of a nuclear meltdown that has killed hundreds, contaminated food and water supplies, and displaced hundreds of families.  Of course, such a disaster was considered impossible, until it happened… again.

Still, BP and Massey Energy’s stock valuations are already fully recovered. In fact, Massey is on quite a tear of late. Deep water drilling in the gulf is back online and we’ve heard almost nothing of the 4600 mine safety violations uncovered since the US stepped up investigations after the Massey disaster. Add to this the “sudden” finding that fracking has been poisoning water and food supplies and the economic limitations of wind power, and you’d expect to see solar on a stratospheric growth curve.  So why are we patting ourselves on the back for a mediocre year in 2010

Any good management team knows that you put your best resources behind you’re highest potential products, and reduce support for mature or lagging ones. Solar economics are proving competitive with fossil fuels, today. We’ve seen solar replace plans for both natural gas and wind development based on economics, and prices continue to fall as production and supply comes online to meet demand.

This is our time to push harder than we ever have, both politically and in raising public awareness and support. Congratulating ourselves is absolutely the wrong tack. In fact, it’s the worst possible thing to do given the recent events that support more investment solar.

2011 is the year to capitalize on the true market opportunity for domestic PV. Our home and business owners need to be aware of their ability to produce power rather than depending on the utilities to do it for them. This builds economic strength and a stable energy infrastructure. Yes, massive utility scale projects look great in press releases and make for a great soundbite on the local news, but they do far less for small businesses that will hire back the workers they laid off during the housing crash if given the opportunity.  It’s also the right way to fulfill America’s obligation to be the largest solar power market in the world.

Here in Davis Square the sun is shining bright on countless black tar roofs, so there’s nothing to celebrate. Keep pushing, keep innovating, and let’s postpone the celebration for when we truly deserve it.

Joe Boyce

President, Gaia Worldwide

Founder, Solarvisionaries.org