Solar Power Not Ready For Prime Time

AMERICA CAN RELY ON TRADITIONAL FOSSIL FUELS WHILE MAKING OTHER ENERGY SOURCES COST-EFFECTIVE

Iam a huge believer in the long-term potential of the sun to supply power to the world.

The sun is a powerful and dependable source of energy when we fi gure out how to harness that power eff ectively and eft ciently. By most estimates, the sun will continue to shine for another 5 to 7 billion years, after which time we will have bigger issues than converting its power to useable forms.

Also, according to a 2002 study, the sun delivers more energy in an hour than the world consumes in a year. If the sun is so powerful and reliable, why does it deliver less than 1 percent of the U.S. energy needs?

The answer: It is not cost effective - yet.

So, what makes solar power so impractical now?

First, it isn’t very eft cient in terms of capturing the sun’s power and converting it into electrical energy. The best solar panels are only about 17 percent eft cient in converting the sun’s energy into electricity.

Second, it can cost $25,000 to $35,000 to install a solar energy system in an average house in America. Even after considering the incentives,there is a 20- to 30-year pay out on this investment, which is longer than the average time of home ownership.

The only thing that makes solar energy even remotely reasonable is the subsidies this industry is receiving throughout the world.

Whether it is the feed-in tariffs in Germany or the tax credits in the United States or loan guarantees in China, this industry receives way more support than it deserves. This indicates that on its own it can’t deliver two things that are essential for any successful business in the United States: an eff ective, competitive product and a profi t.

Solar energy is at least four times more costly than energy produced by fossil fuels. This is why governments around theworld have to force people to buy it in order to prop it up.

Next, the fi nancials just don’t add up. The entire global revenue for solar panels is only about $64 billion today and will probably only reach $65 billion by 2016 because of falling prices, yet China alone spent $33 billion in 2010 on solar loans. This is why Germany, the top producer of solar power in the world by far, is planning to cut subsidies and phase out support completely over the next fi ve years.

So, what kind of energy policy should we be pursuing that would be appropriate for today and the future?

First, we should stop subsidizing all energy industries. We just don’t have the money. I agree we should stop all tax breaks and subsidies for our oil companies, but I also would suggest we should do the same for wind, solar and ethanol. Save the money and let the free market go to work.

Second, if China is practically giving its solar products away, we should buy them and tax the heck out of them as they comehere. This would raise the costs of their solar equipment to marketsupported prices, allowing American companies to compete fairly for that business and help us balance our federal budget at the same time. Thanks, China!

Third, our government should support research in all kinds of renewable energy sources through our universities and agencies like NASA to fi nd real cost-eft cient answers to our energy needs. We can do this for a fraction of the cost of our current subsidy approach to this industry.

Then, in 10 to 20 years we can absolutely dominate a newly created and profi table solar industry.

Until then, however, we need to take advantage of the resources God has blessed this country with.

America is the most energyrich country in the world.

We have more coal than Saudi Arabia has oil. We have more oil than all of the Middle East countries combined and natural gas may be our most abundant resource. In fact, we could supply all of our own needs for hundreds if not a thousand years depending on which projection you believe.

The point is, we are loaded! We should work “with” not “for” environmentalists to drill and dig here and now while we develop our wind, solar and other renewable energy sources for the future. As a side benefit we will take money out of the pockets of our enemies and employ hundreds of thousands of Americans.

This is the real “all of the above” energy strategy we need.

KEVIN CANFIELD, A SPRINGDALE RESIDENT, IS A PROCTER & GAMBLE RETIREE AND AUTHOR OF “MASTERING SALES.”

Opinion, Pages 13 on 09/02/2012

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