Breakthrough: The U.S. Can Become a World Leader in Solar Power

By Alisha Fowler, Breakthrough Generation Fellow

The U.S. market, once the leader in solar energy manufacturing and development around the world, has fallen in recent years. But, there is renewed excitement and hope brewing for the U.S. as energy experts in Europe predict that the U.S. can and likely will surpass Japan and Germany in solar power market share in the years to come. Energy experts also agree that in order for the U.S. to successfully reclaim its leadership position, continued government investment is required.

Eicke Weber, director of the Fraunhofer Institute for Solar Energy Systems in Freiburg, Germany, predicts that the solar industry will blossom and increase 10 to 100 times in volume over the next ten years. Such a large increase in the market translates to hundreds of billions of dollars to be realized. The industry will grow from a mere $15 billion to between $100 and $300 billion during this time.

"In the coming years, we will see a changing of the torch," Weber said. "The biggest market, the most exciting market, should be the United States."

Investment: We Need It!

Weber, and other technology experts both at home and abroad, also warned that government incentives are necessary for "10 to 15 years" to bring solar costs down to competitive levels and enable the technology to reach its potential. They urged U.S. policymakers at the state and federal levels to heed that example.

Yes, the U.S. should be the leader in solar power manufacturing. But the U.S. can only resume its lost leadership position in the solar market if the federal government improves its most recent behavior. The U.S. government has left solar, and all other renewables for that matter, effectively in the dark while endlessly bickering over the extension of the critical production tax credits.

The bickering and delaying is actually a decision that ends support for emerging renewable industries. In fact, trade organizations representing renewable-energy companies on Capitol Hill are already reporting less growth and increasing anxiety over whether the incentives will be available. The American Wind Energy Association also estimates that more than 116,000 U.S. jobs and nearly $19 billion in investment could be lost in just one year if the incentives are not renewed.

Japan, Weber said, has also seen a "drastic decrease" in market share following a decision to retract government subsides. Let us chart a different course, while we still can, and continue and increase state and federal investment to support U.S. capacity for innovation.

Innovation: We've Got It!

The Silicon Valley's go-go-go attitude regarding technology development is an enormous asset for the U.S. as it helps develop scalable renewable technologies that can capture the market.

In fact, there is a large solar power conference going on in Silicon Valley this week, Intersolar North America - the first U.S. branch of a huge Intersolar conference and tradeshow held annually in Europe, with more than 210 solar companies and 12,000 individuals attending. The focus of the conference is the bright future of solar as it helps to wean the world off of petroleum, and how to help solar reach its maximum potential. Many conference attendees spoke about the need for the price of the technology to be driven down in order for solar to emerge as a major player in the world energy market.

Investment and Innovation: A Winning Combination

With the combined powers of innovation and government investment, the U.S. is well positioned to bounce back as a leader in solar power.

The U.S. could also capture other clean energy industries if we can muster the governmental will to support research, development and deployment of new technologies.

We have the know-how. Now we need investment to give American innovators the tools they need. So lets get it!

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