Thursday, March 12, 2009

Is the Economy Killing Oregon's Solar Solutions?

With high gas prices pushing public opinion towards electric, solar and other energy options, the future of alternative energy seemed so hopeful, but then the economy went down the tubes. Will it take solar energy solutions with it?

SpectraWatt Inc. a solar cell manufacturer based in Hillsboro, Oregon recently announced that due to a lack of funds they are suspending construction indefinitely.

However, one has to wonder if this is going to mean bad news or good news for homeowners who are looking for low cost solar panels to install while they can still take advantage of this years federal tax break.

This tax break is for solar electric systems and it practically tripled in January for a typical homeowner. There is also a new solar loan program that homeowners can take advantage of that is sponsored by Portland-based Umpqua Bank and the Energy Trust of Oregon, the program is called GreenStreet Lending.

Tax breaks and a lending program combined with impending high gas prices will likely spur interest in alternative energy but what level of competition is required to keep prices competitive?

SpectraWatt may have pulled out, but other solar based companies such as SolarWorld and Sanyo are here and still going strong. Perhaps prices of solar panels will continue to fall giving North westerners a chance to capture the sun for a price that makes our appalling lack of sun, irrelevant.


What do you think?

Do you think SpectraWatt's inability to maintain a presence in Oregon will affect consumers?

Will lack of competition raise the price of solar energy solutions for consumers?