Here Comes The Sun: Solar energy is becoming more attractive for mainstream consumers

The price of a barrel of oil has never been higher ($62.00+ in summer 2005 even before the chaos caused by Katrina). Some say this is a temporary spike, but more and more analysts are agreeing that this kind of pricing is here to stay. World consumption is at an all time high and given the new thirst for oil in China and India it is unlikely to diminish. According to International Energy Outlook, global demand is expected to continue to increase by as much as 59% in the next fifteen years. Already, consumer energy bills have been increasing on average 6.5% per year for the last thirty years in the United States. Given the dramatic rise in the cost of producing energy using traditional non-renewable resources, this rate is bound to be overtaken by unheard of price increases in the very near future. And for consumers who are becoming more and more environmentally conscious, the thought of the millions and millions of tons of CO2 and other bi products being released into the atmosphere annually through the use of fossil fuels in creating energy is very alarming. It is a no brainer that our reliance on oil to create energy leaves us very vulnerable. There are renewable technologies that produce energy, but the problem has been one of cost effectiveness. It has always been cheaper to supply energy using fossil fuels, and consequently, renewable sources such as solar or wind power have not taken off. But the situation now appears to be changing. More and more, our consumption of energy is outstripping supply. The grid can barely keep up with demand and rolling blackouts are no longer just a concept. No wonder governments are looking for alternatives. And no wonder everyone is talking solar once again. In 1985 annual worldwide solar power system installation accounted for 21 megawatts of power. By 2004, this had multiplied to an incredible 927 megawatts in new installation power production alone. The demand for solar produced energy over the last several years has increased annually about 25%, although in 2004 sales were up a whopping 67% from the previous year. There are several reasons for this increase in popularity for all things solar powered. Beyond the obvious environmental considerations and the privilege of not having to rely on power from a grid that is aging and stretched to capacity, solar is getting cost effective. While traditional energy production gets more expensive, technological advances are making solar power cheaper. In 1980 the cost of harvesting energy from the sun stood at about $100 per watt. Literally a hundred times more expensive than the going rate of electricity, these systems were not economically viable. By 1999 however, technology had reduced this to about $4 per watt and costs have continued to decline by about 5% per year since. The Return on Investment is becoming very attractive for many commercial organizations and consumers. Efficiencies have been realized in several technologies. The inverters that transform the collected DC energy into usable AC energy used to deliver only about 65% efficiency. 35% of the collected energy was lost in the transformation process. Today