On Tuesday I attended the first Intersolar Conference in the United States, as its organizers brought the conference from Germany to San Francisco partly because of California's willingness to pursue positive changes in energy policy. Charles Gay, Corporate Vice President and General Manager of the Solar Business Group for semiconductor company Applied Materials, spoke about the many attractive qualities of solar power. Gay projects the cost of solar energy to be directly competitive with grid power within three to five years, which I took as welcome news. Gay says the economy of scale from manufacturing panels and the subsequent decrease in the cost of producing equipment for semiconductors will lower the price of solar panels.

More efficient materials, combined with the capacity to use the same multi-purpose machinery in production of larger panels, are giving solar a stronger case. For example, equipment that was previously used to process glass for auto and flat screen TV industries can be repurposed for solar with little difficulty, he said. Thin film panels in the company's SunFab line have a manufacturing cost of less than $1 per watt and are at least 10 percent energy efficient.

In addition to providing clean energy, solar has the added benefit of creating jobs in local markets. Larger panels not only require less wiring and labor, but they're also easier to install in the field, according to Gay. Technological advances allow companies like his to manufacture solar panels at a rapid pace, so it would only take ten months to make enough solar panels to provide electricity in scale as opposed to the six years or more it would take to build a nuclear power plant after it is approved. Professor Eicke Weber boldy touted solar as the "only kind of energy that can solve earth's problems." This is not surprising considering Weber is the Chairman of the Conference Committee for Intersolar North America, as well as the Director of the Fraunhofer Institute for Solar Energy Systems ISE. Weber projected that the PV industry will grow between 10 to 100 times in volume in the coming decades, increasing from a $15 billion industry to $100-$300 billion.

After citing oft-cited reasons for developing renewable energy (climate change, reduction in geopolitical conflict, etc.), Weber struck down some of solar's competitors: nuclear is dangerous because of waste storage issues, clean coal technology increases the cost of energy dramatically and is unproven. I was pleased to hear that he wasn't endorsing solar as the only answer, as he also gave props to geothermal, wind, hydroelectric, and biofuels as necessary for energy diversity. However, he says these options can be limited in their potential, as in the case of wind mills that are rejected as too visible by the public.

Weber also ran through the types of support that have helped to expand the market for PV systems. He cited the introduction of quotas for renewable energy (also known as renewable energy portfolio standards) that mandate that utilities transition to renewables over time. He said rebate systems that lower cost to the consumer seem productive, but may not be economically attractive. Feed-in tariffs have been highly successful in Germany, offering consumers a fixed price per kW hr for 20 years and guaranteeing a 10% annual return on their investment. Who wouldn't want to make a smart money move like that?

It was refreshing to envision the production of longer-lasting, more efficient, less expensive solar panels in the near future. We can always count on radiation from the sun, and cloudy Germany has shown us how to capitalize on this resource even under less than optimal conditions. Rapid industry growth and research and development advances seem to be producing a solar energy product that is increasingly appealing as an answer to our needs. When partnered with smart grid technology, this option could put more power in the hands of the individual and localize energy management, as well as create much-needed domestic jobs.