The future of the solar industry in the north eastern United States now looks much brighter following the massive injection of $20 million in federal money designed to act as a stimulus for the solar industry in Massachusetts. The cash stimulus will equate to 16 Megawatts of new solar installations in the state and will see the construction of some high profile solar sites including Logan International Airport in Boston.

Deval Patrick, Governor of the state of Massachusetts has made it his aim over recent months to make the state a leader in the field of photovoltaic investment and recent announcements regarding the cash that will be made available for large solar installations certainly backs up the political rhetoric coming from the governor’s office.

Speaking about the states renewable energy plans, Ian Bowles, secretary of the Executive Office of Energy and Environmental Affairs in Massachusetts stated that,

“With this infusion of federal funds, Governor Patrick is building the clean energy economy of the future for the Commonwealth”, going on to add that, “It’s phase one of the solar big bang”.

The current plans for solar installations in Massachusetts which will include new housing projects, public buildings and of course Logan Airport are part of a wider project which has been in place since the investiture of Governor Patrick. When he took office, solar installations in the state were around 3.5 megawatts and he has set the ambitious target of 250 megawatts of solar capacity by 2017.

The state of Massachusetts provides a good example of a solar industry growing with the help of government funding and root changes in attitudes with regards to the way our energy should be produced. As Seth Kaplan, spokesman for the Conservation Law Foundation commented,

“The amazing thing when you think about it is that we don’t have solar on every large flat roof. Any large flat roof without solar on it is a missed opportunity.”

Which such ambitions, the state of Massachusetts will be sure to provide a great opportunity for photovoltaic investors in the near future as they set their sights on a solar future.

Following on from the UK Solar economic forum, currently taking place in London, Green Power Conferences, one of the leading organizers of green energy events has announced the upcoming US Solar forum to take place in Washington.

With Barack Obama’s recent espousals of green initiatives and a sizeable upturn in green investments in light of the crisis facing Wall Street, the Solar economic forum, to be held in Washington D.C. on the 9 & 10 of September, will be sure to generate a huge interest amongst US solar sector members.

The US Solar economics forum will offer advice on the US solar industry and how it can react to the global economic crisis. With a particular focus given to recent legislation both on a national and local government level attendees will be able to get a strong feeling of the direction in which the US solar industry is heading. Similarly, with expert analysis and financial evaluations of the feasibility of various photovoltaic technologies the event will offer a forum focused on networking and real business success.

The forum will offer attendees the opportunity to come face to face with some of the key players in the US solar industry with the following high profile, expert speakers confirmed:

·          John Bartlett, Financial Analyst, U.S. Department of Energy, USA

·          Julia Hamm, Executive Director, Solar Electric Power Association, USA

·          Mike Nedd, Deputy Director, Bureau of Land Management, USA

·          David Arfin, Vice President, SolarCity, USA

·          Rainer Aringhoff, President, Solar Millennium, USA

·          Matt Cheney, Chief Executive Officer, Renewable Ventures, USA

·          Carrie Cullen Hitt, President, The Solar Alliance, USA

·          Shawn Kravertz, President, Esplanade Capital, USA

·          Nancy E. Pfund, Managing Partner, DBL Investors, USA

·          John Woolard, Chief Executive Officer, Brightsource Energy, USA

For full information on this conference and how it could benefit anyone involved in or wishing to learn more about the industry and its prospects, please visit:

http://www2.greenpowerconferences.co.uk/v8-12/Prospectus/Index.php?sEventCode=SP0909US

With the British government currently assessing the details of the feed-in tariff which is to be introduced in 2010, they will undoubtedly heed the example of Spain and the way in which the government there failed to live up to the initial expectations of the tariff. Spain, despite having one of the strongest photovoltaic sectors in the world, failed to capitalize on the successes of the solar industry there by changing the way PV investment was subsidized, something which has led to a steep decline in photovoltaic investment and installation in that country.

In conjunction with the global financial crisis which has taken a particularly strong hold of the Spanish economy, the reduction in solar investment has contributed to a culling of jobs and cutbacks in PV manufacturing in Spain, something which will see a surplus of PV plant being exported to growing solar sectors elsewhere in the world.

Industry insiders in the UK have put pressure on the government and lobbied the Department of Energy and Climate Change by expressing the importance of a feed-in tariff which stimulates sector growth by offering incentives and security to investors. It is generally accepted that a tariff rate of at least 20p per unit of electricity fed-in to the national grid by small scale energy suppliers would be sufficient in part to kick-start the solar industry in the UK following its inauguration in 2010.

Certainly, elsewhere where comprehensive feed-in tariff legislation has been introduced there have been marked successes in the uptake of photovoltaic technology and job creation in renewable industries. In Germany for example, the feed-in tariff legislation has proved to be consistent and generous in the provisions offered to those wishing to invest in the German green sector. Indeed, the German tariff model is often held up as an example of how to incentivise investment and build public awareness.

Spain is expected to experience a dramatic reduction in photovoltaic installation in 2009 with 375MW compared to 2008 installations of 2,500MW. Spain will now fail to live up to its ambitions of becoming the European Union’s leading renewable energy producer by 2020 largely because the Zapatero’s government has neglected the tariff scheme across the country. The introduction of a 500MW project cap along with the withdrawal of essential subsidies has seen the solar industry stagnate and since the new year, decline. Members of the solar industry in the UK will therefore be hoping that the British government follows the example of Germany rather than Spain in the way that they choose to roll out the much talked about feed-in tariff next year.

According to a Solarbuzz market report, solar investment in the Czech Republic increased 17 fold since 2007 due to the strong feed-in tariff there. Last year 50.8 megawatts of solar plant were installed in the Czech Republic compared to just 3 megawatts in 2007 representing a huge increase in solar investment. The Czech solar market, although still small compared to the European renewable giants Germany and Spain, has grown exponentially since the introduction of a feed-in tariff in 2005.

The Czech feed-in tariff has been extremely successful at attracting investment as it pays the highest rate for renewable electricity of any other European tariff. Currently set at 12.79Koruny per unit of energy fed-in to the grid (44p), the rate makes solar investment a very viable option for investors looking to diversify their portfolios by moving towards green shares. In the light of the recent economic downturn and the drawing in of purse strings in most sectors, solar offers investors a yield on their investment protected by government legislation. The Prague government has set itself the target of reducing its carbon emissions by producing 8 per cent of its energy by renewable means by 2010 and will therefore look to protect the solar industry within its borders.

While the Spanish solar market is still 48 times bigger than that of the Czech Republic, the Spanish sector has experienced a slowing due to the reduction of the rate of its feed-in tariff when the 500 megawatt cap was reached bring the rate paid down from 0.42 euros to 0.32 euros. This fall in the feed-in tariff rate was reflected by a marked reduction in Spanish solar plant and provides a warning to governments looking to sustain a boom over a long period. Jenny Chase of New Energy Finance commented that,

“I know some developers that were in Spain are now in business school because the market’s over, and some have moved to the Czech Republic”.

The Spanish example of the shrinkage after the initial 2007 boom will provide a warning to governments looking to implement their own feed-in tariffs in the near future. Certainly, the Department of Energy and Climate Change (DECC) will implement the feed-in tariff in the UK by the end of 2010 and are currently undergoing consultancy as to how to finance the tariff. Industry insiders have petitioned the government demanding at least a 40p/unit rate for electricity fed-in to the grid over a long term period of around 20 years. The Czech government have been extremely successful thus far and will continue to use their tariff system to attract investment in solar.