According to Secretary of Energy J.M. Grantholm, solar is our cheapest and fasting-growing source of clean energy. And, under a scenario outlined in the U.S. Department of Energy's Solar Futures Study, by 2035 the solar energy sector will have the potential to serve 40 percent of U.S. electricity needs.
There is no doubt about the demand for solar energy, but what about the supply? The centerpiece of the pared down, yet to be passed federal reconciliation bill is $300 billion in tax incentives for producers and purchasers of wind, solar, and nuclear power inducements intended to speed up a transition away from electricity generated by burning fossil fuels.
Although many incumbent utilities are moving down the renewable path, achieving the goal of large-scale solar will require many more new entrants. As with the deployment of cellular telephony nearly 50 years ago, creative, ambitious, and hard-driving entrepreneurs will be stepping up to deploy as soon as possible.
Key to success and scale will be siting solar facilities. Many of the desirable sites are owned by tribal, federal, state, and local governments. As the next generation of solar developers jump into the fray, they will need to enter into public-private partnerships with governments, usually in the form of long-term solar leases.
The process-oriented nature of government often creates friction with solar developers' need for speed. And while there is an emerging consensus about the burning need for carbon reduction, that has not yet resulted in the elimination or streamlining of governmental processes or regulations. Yuri Freedman, Senior Executive at SoCalGas involved in renewables, notes that until these issues are reconciled, solar developers will be challenged to act at the speed of climate change.
Dealing with government agencies can involve the developer, and also the government, in novel issues that can affect the execution of leases and the timing of approval. Issues for solar developers to keep in mind:
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