SOLAR IS BOOMING!

With the price of oil climbing to US$70 a barrel, the demand for Solar on the world market is dramatically increasing. After decades of money- losing research, the major players like BP Solar, Kyocera, and Sharp are starting to show a return on the investment. Sharp, the world’s market leader, sold more than $1 Billion worth of solar, and solar panels now account for 5% of Kyocera’s annual sales. All solar PV production is sold until next year and significant shortages of solar panels are being experienced.

Time magazine notes that solar panel costs have fallen 66% over the last decade. Company analysts estimate that a further 50% reduction would make solar powered electricity costs comparable with other types of fuel within the next decade. If oil and gas prices continue to increase, this cost parity could come a lot sooner.

Despite this boom, one still occasionally hears that the energy Payback for a solar panel is negative- that is to say it takes more energy to make a solar panel than can ever be produced from it.

According to a US Department of Energy, NREL report “Energy Payback-: Clean Energy from PV”, the payback ranges from one to four years even accounting for all the energy costs including to make the aluminium frame, the glass front etc.

A Dutch Utrecht University report places the Energy Payback at 1.3 to 4.6 years and Siemens Solar Industries suggested a 1.8 to 4.1 year Payback.