Solar industry still hot

In California, solar energy is still a growing industry even amidst the bad economy or maybe perhaps due to it.

In 2008, the amount of electricity provided in the state by the solar energy, and rebate applications under the state’s Million Solar Roofs program attained record high in the last quarter of the year.

"While we don't have the final numbers yet, it appears we nearly doubled the amount of solar installed in 2008 vs. 2007," said Molly Tirpak Sterkel, director of the California Solar Initiative. "That's a magnificent story."

Experts credited the increase in solar sales to a big increase in the federal tax credit. This is an ongoing state’s rebate and new innovative financing programs, and as to rising consumer concerns over global warming. This growth arrives amidst the US economy suffering from a turbulent stock market, consistent declines in house and car sales and growing unemployment.

Perhaps 150 megawatts or more of new solar panels were put up in California in 2008, Sterkel said, up from 81 megawatts in 2007.

She added that California has more than half of the solar capacity in the United States, and that the state ranks as the world's No. 4 solar entity after Germany, Spain and Japan.

Solar's growth here is "somewhat surprising, as we expected the economic downtown might have some dampening effect," said Damon Franz, an energy analyst with the California Public Utilities Commission.

Consumers see advantage with solar energy

Lyndon Rive, the chief executive officer of Solar City, a solar installer said that the increase in sales was due to the fact that the consumers are now seeing solar as a safe economic risk.

As consumers and installers rushed to finish projected by the end of the year, there were concerns that the Congress won’t extend the federal solar tax credit.
Then once Congress extended the tax credit for eight years and lifted a $2,000 cap in favor of a 30 percent credit, consumers were first getting their systems after Jan. 1.

All in all, the federal tax credit and the California incentives can decrease the cost of a residential solar system, which typically costs $25,000 to $35,000, by as much as $14,000.