Solar Energy Growth

NY Times article - A Green Energy Industry Takes Root in California Currently solar is 3 to 5 times more expensive that solar, but the amount of solar being installed is growing. The article writes about the huge amount of Venture Capital funding that is betting on new technology to lower the cost of solar. The price of solar production has been impacted by a shortage in silicon (traditional method of making solar cells). The solar industry has been growing by 30% per year. The prices for solar power has become competitive enough in Japan, where the government has removed the subsidy they have. Applied Materials has invested in developing equipment for making solar cells (Applied Materials is the company for chip equipment).

Two factors that are a major influence on the price of solar are Moores Law (number of transistors doubles every two years, which means prices go down fast for electronics) and efficiency gained through increases in production. The more you produce, the better you get at it which reduces cost.