Solar hot water systems can compete economically with conventional systems in some areas. And as the cost of solar PV continues to decline, these systems will penetrate increasingly larger markets. In fact, the solar PV industry aims to provide half of all new U.S. electricity generation by 2025.Aggressive financial incentives in Germany and Japan have made these countries global leaders in solar deployment for years. But the United States is catching up thanks particularly to strong state-level policy support. The rolling blackouts and soaring energy prices experienced by California in 2000 and 2001 have motivated its leaders to create new incentives for solar and other renewable energy technologies. In January 2006, the California Public Utility Commission approved the California Solar Initiative, which dedicates $3.2 billion over 11 years to develop 3,000 megawatts of new solar electricity, equal to placing PV systems on a million rooftops.
Other states are following suit. Arizona, Colorado, New Jersey, and Pennsylvania have specific requirements for solar energy as part of their renewable electricity standards. Many more states offer rebates, production incentives, and tax incentives, as well as loan and grant programs. Even the federal government is offering a 30 percent tax credit (up to $2,000) for the purchase and installation of residential PV systems and solar water heaters.
Article credit: Union of Concerned Scientists USA
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