| Having been in the renewable energy and solar power | | | | where we are seeing serious shifts in technology. |
| industries for the last 10 years, I often get asked about | | | | The advent of the micro-inverter has altered solar |
| what the future holds. Whether you are interested for | | | | power significantly. Before, all systems required a large |
| investment purposes or general curiosity, I would say in | | | | centralized inverter to alter and condition the power |
| the general the future is extremely bright for clean | | | | that panels produce so that it can be fed to the grid. |
| energy. Here are some things that we see coming in | | | | This system worked fairly well, but the expense of the |
| the next 5 to 10 years that will shape the markets for | | | | inverter and the performance of the panels could |
| the industry, and specifically solar power. | | | | negatively affect the project's economics. |
| Feed-in-Tariffs Will Proliferate | | | | The micro inverter actually alters and conditions the |
| The most widely used model for encouraging solar | | | | power directly as it comes out of the panel. This |
| power installations now is giving rebates for installed | | | | means that power from each panel can be monitored |
| watts. The problem with this model is that it doesn't | | | | and optimized, and it means that a solar power |
| actually give incentives for producing more clean | | | | system of any size is now available. With centralized |
| energy, which after all is the point. Installed watts don't | | | | inverters, which cost upwards of $2000, it made sense |
| always translate to produced watts due to installation | | | | to install at least a $10,000 solar power system to |
| issues and equipment efficiencies. | | | | cover the cost of the inverter. Now, with micro |
| This is where feed-in tariffs come in. This actually | | | | inverters costing less than $200 in some cases, |
| rewards the solar power producer by paying them a | | | | homeowners can install one panel, and expand as |
| rate for the electricity they feed back in to the grid at | | | | much as they like. |
| 3-4x the actual retail rate. So some homes might be | | | | And solar panel manufacturers, like Sunpower, Sharp, |
| paying $0.11/kw-hr for power but selling power back to | | | | and Mitsubishi, are getting into the act and building the |
| the grid for $.45/kw-hr that is produced by their solar | | | | inverter right into the panel. This gives much more |
| panels. This can produce a profit and much faster | | | | flexibility to the solar power systems available and |
| return on investment for the system. | | | | open up the market to millions more customers. |
| Most importantly, this method actually encourages | | | | Power Storage Will Get Better |
| clean energy production (instead of just installation) and | | | | One central issue facing all renewable energy sources |
| energy efficiency, since reducing the building's | | | | is storage. After all we need power when the sun's |
| consumption will increase the profitability of the solar | | | | not shining and the wind is not blowing, right? Rapid |
| power system. | | | | advancement in this sector will drive growth |
| Feed-in tariffs have been wildly successful in Germany, | | | | industry-wide, as century old technology (like lead-acid |
| making it number one in terms of installed watts in the | | | | batteries) will be replaced. |
| world. We have seen several programs in Florida, | | | | Several universities, including MIT and Stanford, are |
| California, and Ontario get implemented with success | | | | dedicating tens of millions of dollars to research and |
| over the past 5 years. There are similar initiatives in | | | | development of battery technology. Advancements in |
| New Jersey, Michigan, and several other states. | | | | the technology are making the batteries lighter, more |
| Look for these programs to proliferate over the next | | | | affordable, and environmentally friendly. |
| decade, driving the demand for all sizes of solar power | | | | Some of the emerging technologies are in heavy duty |
| systems higher. | | | | Lithium Ion batteries (already used in small electronic |
| Solar Components Are Changing Rapidly | | | | applications), and ultra-capacitors. |
| The next 5 to 10 years will be shaped in part by the | | | | With these advancements in technology and policy, the |
| technology advancements that we are seeing now. All | | | | future for solar power and renewable energy is indeed |
| solar power systems require additional components | | | | bright! |
| like racking, inverters, and sometimes batteries. This is | | | | |