Solar Growth in U.S. is Impressive

Those who are thinking about installing a solar power system aren't alone.

The growth of solar installations in the U.S. has been nothing short of meteoric. According to data from the American Solar Energy Society, the number of residential solar power installations in the country grew by 40 percent last year. That is even more impressive in light of the tepid economic conditions that prevailed in 2009, when millions of jobs were lost and gross domestic product contracted by 2.4 percent.

In fact, the editor of the society's magazine, Solar Today, revealed to HousingWatch.com this month that solar has been growing at a breakneck pace for some time. In the U.S., Seth Masia said, "solar power installations have averaged about 35 percent to 40 percent annual growth over the past five years."

To be sure, America has some catching up to do. Other developed nations have been installing clean energy for years, and the U.S. is still far behind nations like Germany and Italy in terms of total capacity. But solar could get a big boost in America if the drivers of its popularity in Europe - subsidies called feed-in tariffs - emerge here.

Some places already have FITs on a limited basis. Gainesville, Florida was the first U.S. municipality to make them available - and its program was fully subscribed in short order. Other FITs have been rolled out in the U.S.; Oregon is currently testing a pilot FIT program, for example.

What's smart about FITs is that they shift the burden of subsidizing renewable energy projects from the government to electric ratepayers. FIT programs guarantee payment to those who generate clean power; rather than the rebates that are common in the U.S., they subsidize solar installations over 15 or 20 years.

It's not clear whether they'll be introduced on a broader scale. Utility policy is set on a state-by-state basis, so individual states will have to decide if they want to force utilities to pay more for clean energy. Some states, in lieu of FITs, are opting to impose renewable-power mandates on utilities; California, Colorado and New Jersey have the toughest renewable standards in the nation.

Whatever form solar subsidies take, though, solar energy should continue to be popular as long as incentives are provided to homeowners.