Report on Solar Energy in the US and Canada

Executive Summary

The US and Canada are developing renewable energy sources to decrease their dependence on fossil fuels, develop self sufficiency in power generation, and decrease the pollution that results from the combustion of fossil fuels. Consumers in the US and Canada have become more open to the use of solar energy due to its eco-friendly nature. To promote investment in the solar energy sector, the US government introduced the renewable portfolio standards, and the net metering system, while the Canadian government had introduced the net metering system. In addition, tax rebates, financing systems, and an array of supporting regulations have also been introduced.

The governmental efforts seem to be paying off as the installation of solar energy systems, which was earlier limited to the off grid sector, is expanding to the grid connected sector.

The policy makers in both the US and Canada were determined to meet the future growth in power demand through increased production of renewable energy. Canada had a competitive advantage due to it being an early adopter market for new technologies and low photovoltaic production cost when compared to other major photovoltaic producing nations such as Japan and Germany.

The demand for solar energy is influenced by a number of factors such as the cost of generating solar power compared to conventional power, the sustainability of power supply, and the capability of providing electricity in remote areas due to its decentralized nature. People should be made aware about the advantages of solar energy and any misconceptions they have about it should be removed. Solar energy supply depends on a number of factors such as the investment made in solar energy systems, which in turn, depends on the payback period. Determining the right location for the installation of the solar energy system is essential for optimum performance as solar radiation varies from region to region.

However, there are a few challenges in the solar energy industry. In the US, the challenges are in the form of a conglomeration of regional markets and the lack of a well-developed structure. Lack of standardization of material to be used for the production of photovoltaics affects the quality and cost structure of the solar energy systems available in the market. It was reported that a majority of the Canadian population felt that the government measures to support development of the solar energy industry were inadequate. A coordinated effort by the government and the private sector should be implemented, supported by adequate funding to develop the solar energy industry. A mechanism should be developed for testing solar products before they are released into the market.

Keywords

Solar Energy Industry, Oil and Gas, Power Sector, USA and Canada, North America, Global Warming, Climate Change, Greenhouse gases, Photovoltaic panels, Solar cells, Regulatory environment, Renewable Portfolio Standards, Advanced Energy Initiative, Million Solar Roof Initiative, Solar American Initiative, Renewable Energy Production Incentive, Tax exemptions and rebates, Renewable Energy Deployment Initiative, Net Metering

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