A recent article in BusinessWeek, “Solar: The Sun Will Come Out Tomorrow”, discussed factors that could lead to a boom in the solar power industry in the not too distant future. 

“As prices come down, the economics of solar power will look much better” said managing director for renewable energy at Navigant Consulting. Recently prices in the solar panel market have plunged and the outlook for the next two quarters look gloomy. However the article points out that several factors could lead to a strong comeback by solar.

-Congress just passed a long-term tax credit and mandates utility companies to generate more electricity from renewable sources. 

-The cost of solar is nearing the price of electricity in states such as California and Hawaii. 

-The Obama administration is expected to spend on green initiatives. 

As solar technology becomes more efficient in harnessing the vast power of the sun, I think solar will play a significant role in solving the energy problem and open up opportunities for investment. The global leader in solar energy is Germany. Germany produced over half the world’s solar energy in 2006 despite having half as many sunny days as Portugal, according to the Washington Post. A large reason for this is the premium that Germany’s government pays for solar-generated electricity. If the US government were to enact similar incentives, it would go far in promoting growth of solar-powered energy.

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