US Solar Market Grows Despite Difficult Economic Conditions

Despite the global economic downturn, the solar market in the United States grew by 36% in 2009. To date, the United States is the third largest photovoltaic market in the world (behind #1 Germany and #2 Spain). 

The solar market is undergoing constant changes. Also the idea of photovoltaics has been around for over a century, only recently has it become mainstream. In 2009, changes include new companies entering the market, lower-cost panels, and changes in incentives and regulation. Solar companies need to be on top of these changes in order to remain competitive.

California leads the United States in solar installations. It has 53% stake of photovoltaic output. Most of the growth in 2009 came from utility and residential solar installations. Price cuts with minimal declines in incentives provided incentives to homeowners to install solar. In addition, new programs, such as the Pennsylvania Sunshine Solar Program, provided incentive for new companies to enter the solar playing field.

With so many states offering incentives to install solar, the United States is able to keep funding sources relatively disperse. This means that the United States solar market does not have the same risk as the national policies of Germany or Spain.

In addition, 16 states have enacted a Renewable Portfolio Standard. The Renewable Portfolio Standard gives the source of electricity production and requires a set amount of electricity production from renewable sources. Part of this standard is solar electricity production. 

In the next 5 years, the solar market is projected to grow to 4.5-5.5 gigaWatts. One gigaWatt is enough electricity for 70,000 homes. This is 10 times the size of the current solar market. With market growth like this, it is extremely tempting to enter the lucrative (and growing) solar market. 

Wanting to enter the solar market but do not know how? Contact Rich Hessler Solar (949) 208-0221 for ideas on how to enter the solar market.

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Texas Renewable Energy Incentives

 

Texas Renewable Energy Incentives

Apart from TXU partnering with various solar companies to lease solar panel systems to homeowners, Texas provides other incentives for businesses and homeowners involved in renewable energy technologies.

Texas incentives allow for companies and other organization subject to their franchise tax to deduct 10% of the total cost of a solar energy system from the franchise tax.  

Another of Texas' incentives includes corporations involved in the manufacturing, selling, and installation of solar energy devices to be exempt from the state franchise tax.  This exemption is significantly beneficial to manufacturers as there is no ceiling on the exemption.

According to Texas' solar incentives program, the franchise tax is equivalent to the corporate t ax.

A solar energy device is defined as a system or series of mechanisms designed primarily to provide heating or cooling or to produce electrical or mechanical power by collecting and transferring solar-generated energy. The term includes a mechanical or chemical device that has the ability to store solar-generated energy for use in heating or cooling or in the production of power.  Wind energy technologies are also eligible for the franchise tax deduction and exemption.

Texas incentives also allow for the property tax exemption of the appraised value of a property as a result of any installation or construction of either a solar or wind-powered energy device meant to produce and distribute thermal, mechanical, or electrical energy for on-site use or for a device that is used to store that energy.

To apply for this incentive, one must fill Form 50-123, "Exemption Application for Solar or Wind-powered Energy Devices".

With many states offering great solar rebates and incentives, it is time for the federal government to strongly encourage the use of renewable energy. In his national address on Tuesday, the President declared one of his next goals is to push clean energy in the United States. This is in response to the catastrophic oil spill in the Gulf of Mexico and the fact that the United States is spending billions every year on foreign energy. The President want more of our consumed energy to come from national, clean energy sources.

Rich Hessler
Business Services for the Successful Small Business 

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