Solar Energy, Warm And Fuzzy, Or Bad Investment?

Abstract

When considering solar energy, it’s helpful to understand two common uses of solar, generation of electrical power, and use for heating water. Generation of power is commonly done by use of Photovoltaic (PV) panels, which generates direct current (DC), which is then often converted to alternating current (AC) which is more commonly used for power distribution in the modern world. Solar water heating is done by a number of means that collect heat, and transfer the heat directly to water held in a holding tank, sometimes a separate container, and sometimes directly into a more conventional system similar to or the same as a hot water heater tank. Use of solar energy in both of these ways reduces the need to use power generated from natural gas, coal, oil, hydroelectric, or nuclear power sources. However, both methods of capturing power to be used in a commercial or residential setting are limited by the availability of sunlight. Therefore, use of solar power has limitations of both geographical and temporal restrictions. Areas with more sunlight can make better use of solar energy, and solar energy can only be captured during daylight hours. While this limitation seems significant, consider that use of power is also cyclic. Peak power use is often midday, when there is also peak ability to generate solar power. Since there is a match in this way, solar energy is in a position to help offset this peak usage situation. We can break down into general scales of the applications of solar power generation: the residential (homes and apartments) generation of solar power, the commercial (small and large businesses) generation of solar power, and the industrial (power plant scale) generation of solar power. Each of these areas currently has significantly different issues, creating opportunity and limitations that distinguish the effectiveness of implementing solar solutions.