Rise and shine: the clouds of high costs haven't darkened the solar promise.

• Author: Andersen, Glen
• Position: SOLAR INDUSTRY

The sea of solar panels at the Blue Wing Solar field near San Antonio, Texas, spans 114 acres and silently produces enough emissions-free electricity to power 1,800 homes.

The field, the third largest solar photovoltaic installation in the United States, is expected to produce electricity reliably for 30 years. So why did the utility choose solar?

"CPS Energy has worked to include solar power in our generation portfolio in an effort to expand our low-emission resources," says Richard Pena, senior vice president of energy development at CPS Energy, which purchases the energy generated at the site.

Utilities across the nation--in response to government incentives, mandates, their own goals and customer interest--are increasing the amount of solar electricity in their portfolios. The United States has some of the richest solar resources in the world, with enough potential to supply the nation's electricity needs many times over.

The challenge is tapping that resource efficiently and at a cost that will be comparable with conventional electricity prices.

"Today, we have a very diverse fleet that includes nuclear, coal, natural gas, wind, and small amounts of solar and landfill gas," say Pena. "Our bills remain among the lowest of major cities across the country, and we continue to look for ways to ensure diverse energy resources, because it's proven to be in the best interests of our customers and community."

State lawmakers have been helping enlarge both residential and utility solar markets through tax rebates, renewable energy requirements and financial assistance. Those who support incentives cite a number of reasons.

"Solar systems are quick to install, use a fuel that's free, generate

electricity during peak demand, need no water, and are extremely versatile in where they can be used," says Texas Representative Drew Darby. "Texas needs to use every homegrown resource we can find. We have a lot of gas, we have a lot of wind, and we have a whole lot of sun."

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Ohio Senator Kris Jordan, however, thinks state policies promoting the use of solar are not needed. Jordan, who introduced a bill to roll back Ohio's clean energy requirements, says the "mandate unnecessarily distorts the energy market and forces power companies to use expensive new technologies that have been shown to drive up energy costs."

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Booming U.S. Market

Despite the high-profile bankruptcies of a few U.S. solar companies this year, by most measures the solar market is healthy and growing. It increased 67 percent, from $3.6 billion in 2009 to $6 billion in 2010, and the rapid growth continued through the first two quarters of 2011. Although solar contributes less than 1 percent of the nation's electricity needs, nearly 9 percent of all new electrical generation capacity installed this year is expected to be solar.

One of the drivers for solar is the ease and speed at which installations can be built. Compared with conventional power plants, solar facilities can be built much more quickly, since they can be spread out in many different places and located near where energy is used--rooftops, fields, parking structures and highway medians. The lack of emissions also makes them much easier...