Prospects for Alternative Energy - Research Paper Example

Prospects For Alternative Energy: Solar Power Human race from the very day of its existence has and continues to face challenges on many fronts. History is witness to a variety of wars, political and regional conflicts, religious and cultural tensions, genocides and natural disasters that keep on appearing in new disguises. But adding to this list is a now a matter that threatens the very life on earth, the global climate change Global climate change is a hard, but, a critical reality. According to Stanford Solar Centre ‘planet-wide studies indicate that the average surface temperature has increased by approximately 0.5 – 1.0 ̊ F (0.3-0.6 ̊ C) over the last century’. The figures might seem minute, yet, it ‘is the largest increase in the surface temperature in the last 1,000 years’ (www.solarcenter.stanford.edu). It should be reminded that it is the small changes that lead to bigger consequences. The harsh reality of the climate change and its effects has forced world organizations, non-government organizations, corporate world and private individuals to seek cleaner and renewable sources of energy. Solar energy is one of the sources that is currently being investigated and is already in place in countries such as US, Europe, China and Africa. The paper aims to study the solar power in terms of it usage, the audience which can benefit from solar power, the costs of installation and the incentives provided particularly by the US states, for using solar power. Solar Power: Types and Use of Solar Power Using Sun’s energy is not a new phenomenon as mankind have always sun’s energy for various purposes such as drying clothes, drying herbs and others purposes. Solar power is using sunlight and converting it into electricity or heat. There are three ays of using Sun’s energy. 1. Solar cells – also called photovoltaic, PV or photoelectric cells. These cells are used to convert sunlight directly into electricity. 2. Solar water heating – the heat of the Sun is used to heat up the water. The system is also used for central heating at homes and offices. 3. Solar Furnaces – here huge array for mirrors are used to concentrate the Sun’s energy into a small space leading to higher temperature. (www.darvill.clara.net) Solar power can be sued for a variety of purposes such as marine and aviation navigation lights, water pumping, telecommunications repeater stations, oil and gas SCADA systems and off grid remote houses. Various studies of using solar energy are underway. A research is University of Nevada is currently investigating the use of solar power that will ‘take care of the ecosystems of termines lakes around the world’. According to the report, the ‘new solar distillation system will help in removing the salinity of the lake water’ (www.alternative-energy-news.info). The aim of such research is to maintain the ecosystems of the closed-water bodies where the concentration of salts and mineral becomes high due to water area being closed by geographical structure. Thus, the research on solar energy is opening doors towards opportunities in sectors where one could never imagine. Solar Power: The Target Audience and The Benefits The recent financial crisis, hikes in oil prices in international markets and volatile food commodity prices have had effects on the lives of common man in various ways. The rising cost of electricity is one of the major burdens being faced by every individual in the world. Solar power is an energy that can be used for all kinds of purposes and is meant for all audiences. Mostly it is the residential, industrial, commercial and institutional sectors – the primary users of electricity – that are the main targets for the solar power. In The Northeast State of US, ‘it’s the homeowners and small businesses who pay some of the highest retail electricity rates in the nation’ (Sharp et al 2007). The usage of solar power in reducing the electricity bills along with the state incentives has become an economical viable solution for such customers. Sharp et al (2007) state that as more PV systems are installed, the combined generation capacity will help stabilize the utility infrastructure, and reduce brownouts and blackouts during summer peak time loads. But the use of solar power is not limited to residential and small businesses. Major corporate like General Electric (GE) are investing in research and productions of solar panels to use solar power efficiently. Solar Power: The Cost and Incentives The cost of installing solar panel varies from country to country, state to state, region to region. The World Bank is currently going to invest $5.5 billion for North Africa solar power projects’ (www.alternative-energy-news.info). A number of factors are involved in installing and utilizing solar power such as the amount of sunlight received in a particular region, the incentives on using a new form of energy and the cost of installing. In the US, the installation of solar panels varies from state to state due to differences in state rebates, financial incentives and other fees of installation. Cooler planet (a website dedicated to solar power) uses the data from ‘Database of State Incentives for Renewables and Efficiency’ and calculates the ratings through this method. Cooler planet calculates ‘a typical 3kW system ($27,000) and ran through each of the state rebates and incentives, estimated the electricity the system would offset in 5 years, and come up with an estimate of the net cost for a solar power system for each state. With this cost as well as factoring in property tax exemptions and available loans, the ratings [were calculated] for each state’ (http://solar.coolerplanet.com/Articles/solar-power-rating.aspx) Taking the top 15 states, the table shows that the state of Louisiana ranks high in terms of using solar power energy with most state rebates and financial incentives. California as a state ranks at the top in terms of efficient solar power and renewable energy user. However, As Sharp et al (2007) point out in the north-eastern states it is Connecticut, Massachusetts and New York that appear in the top 3 in term of subsidies provided for the solar energy. The state of Pennsylvania is also investing over $5 million dollars in solar projects’ (www.solar.calfinder.com). Table: Rankings of State for Solar Power State Cost Property Tax State Loan Local Loan Total Points Louisiana 79 5 2 0 86 Oregon 69 5 0 0 74 Connecticut 62 5 4 0 71 Massachusetts 64 5 0 0 69 New York 62 5 0 0 67 Hawaii 65 0 0 0 65 North Carolina 64 0 0 0 64 Wisconsin 58 5 0 1 64 Illinois 56 5 0 0 61 Minnesota 54 5 0 0 59 California 49 5 0 1 55 Source of the table http://solar.coolerplanet.com/Articles/solar-power-rating.aspx From the table 2, various installation costs and incentives can be seen. Out of the four states, it is certainly Louisiana that costs lower in terms of installation of the solar power compare to the rest. The differences in the state incentives indicate the level of funding received by the various states and the differences in the policies to pursue the usage of solar energy throughout. The state of California is the most active state in terms of exploring and using the renewable sources of energy especially solar power, wind and geothermal. It offers an extensive rebate to residential, commercial and industrial sectors for using solar power energy. Table 2. Incentives and Costs of Solar Installations State Louisiana California New York Oregon System Cost $27,000 $27,000 $27,000 $27,000 Sales Tax +$1,080 +$1,958 Exempt Exempt Federal Tax Credit -$2,000 -$2,000 -$2,000 -$2,000 State Tax credit -$12,500 -$5,250 -$6,575 -$6,000 Solar Savings -$2,548 -$4,631 -$4,001 -$2,228 Year 5 cost $11,032 $17,077 $14,424 $13.060 Source of the table http://solar.coolerplanet.com/Articles/solar-power-rating.aspx United States can be seen as a model in terms of development of renewable sources of energy, the policies implemented to encourage the use of such resources through financial incentives and state rebates, the funding of various researches in universities in such areas and practically using the resources for energy purposes. Both developed and developing countries stand to gain if they come together and exchange ideas and policies to reduce the fossil fuel usage and develop ways that use cleaner source of energy. BIBLIOGRAPHY ‘New Solar Pond Distillation System’ online on [www.alternative-energy-news.info/technology/solar-power/] Accessed on 28 Feb 2010 ‘World Bank to Invest in North African Solar’ online on [www.alternative-energy-news.info/technology/solar-power/] Accessed on 28 Feb 2010 ‘What is Solar Photovoltaic’ online on [www.cansia.ca/solar-energy-101/what_solar_photovoltacis-pv] Accessed on 01 March 2010 Solar Energy online on [www.darvill.clara.net/elteng/solar.htm] Accessed on 02 March 2010 ‘California Solar History’ online on [www.findsolar.com/Content/CaliforniaSoalrHsitory.aspx] Accessed on 01 March 2010 Sharp, John, Furse, Ray and Chew, Robert (2007) ‘Solar Success in the Northeast’ online on [http://homepower.com/article/?file=HP121_pg50_Sharp.pdf] accessed on 02 March 2010 ‘Solar Power Rating’ online on [http://solar.coolerplanet.com/Articles/solar-power-rating.aspx] Accessed on 02 March 2010 Stanford Solar Center online on [http://solar-center.stanford.edu/sun-on-earth/global-warm.html] Accessed on 01 March 2010 Read More