Less than a decade ago, wind energy was considered an emerging industry—new, "alternative," and expensive. Today, it's competitive with fossil fuels. The reason? State and federal mandates and incentives have helped to create a vibrant and competitive market for wind power, bringing down costs for the benefit of consumers and developers alike.

Today, solar power can be prohibitively expensive for many residential and commercial applications. As our state and nation begin to grapple with finding solutions for reducing carbon pollution, increased incentives or mandates for solar is one of the likely next steps.

Solar power technologies take two common forms: photovoltaic and solar thermal. Photovoltaics convert sunlight directly into electricity. Solar thermal projects generate electricity by heating liquid to produce steam that runs a generator. The high temps produced by solar thermal systems can also provide heat and steam for applications like heating buildings.

Solar industry heating up
Investments in solar, wind expected to skyrocket

Morgan Stanley recently estimated that annual global sales from wind, solar, and geothermal power and biofuels could grow to as much as $1 trillion by 2030.

The company was particularly optimistic about solar power. It expects solar electricity generation to rise from levels nearly too small to measure in 2005 to 11.2 percent in 2030 (while wind power could go from 0.9 percent to 9.6 percent in the same period).

Technological advancements like solar films and nanotechnology—in addition to smart policies and incentives—will help to create a more competitive solar product in the future.

Harnessing steam down under
Australian town to become first all-solar city

The Queensland state government in Australia plans to construct a $6.5 million, 10-megawatt solar thermal power station in the city of Cloncurry, making that town the first in the world to be powered completely by the sun.

The power station uses solar thermal technology: sunlight is reflected onto graphite blocks by an array of 8,000 mirrors. Water is pumped through the blocks to create steam, generating electricity with turbines. The graphite will also store heat, producing steam and generating electricity during the night.

The Queensland government said the station would produce about 30 million kilowatt-hours of electricity annually, enough to power the entire town. It is expected to be running by early 2010.

States move on solar
A smattering of incentives from across the nation

In Wisconsin, the utility We Energies pays 22.5 cents per kilowatt-hour to solar energy providers—businesses or homeowners—for up to a total of one megawatt system-wide (enough electricity for approximately 1,000 homes).

New Jersey has a state law requiring two percent solar-generated electricity in its state energy mix. This will result in 1,500 megawatts of new solar power development

California created a $250 million fund to subsidize solar thermal projects and a $3.2 billion dollar incentive program for photovoltaic projects. The state goal is to encourage one million solar roofs.

Minnesota utilities are required by pay 7 to 9 cents per kilowatt-hour for up to 40 kilowatts per site. In addition, the state provides a sales tax exemption and a small rebate for solar photovoltaic systems. Minnesota has no incentives for solar thermal projects; solar thermal systems are one-half to one-third the cost of an equivalent photovoltaic system.

Fresh Energy is a nonprofit organization leading the transition to a clean energy system. One that supports the health of our economies, our people, and our environment while moving us toward energy independence. www.fresh-energy.org