SOLAR ENERGY

The sun is probably the most important source of renewable energy available
today. Traditionally, the sun has provided energy for practically all living creatures
on earth, through the process of photosynthesis, in which plants absorb solar
radiation and convert it into stored energy for growth and development. Scientists
and engineers today seek to utilize solar radiation directly by converting it into
useful heat or electricity.

HOW SOLAR ENERGY IS USED TO PRODUCE ENERGY.

Solar power is arguably the cleanest, most reliable form of renewable energy available,
and it can be used in several forms to help power your home or business. Solar-
powered photovoltaic (PV) panels convert the sun's rays into electricity by exciting
electrons in silicon cells using the photons of light from the sun. This electricity can then
be used to supply renewable energy to your home or business.

There are different solar energy components that makes up a complete solar power
system, they are:

The roof system

In most solar systems, solar panels are placed on the roof. An ideal site will have no
shade on the panels, especially during the prime sunlight hours of 9 a.m. to 3 p.m.; a
south-facing installation will usually provide the optimum potential for your system, but
other orientations may provide sufficient production. Trees or other factors that cause
shading during the day will cause significant decreases to power production. The
importance of shading and efficiency cannot be overstated. In a solar panel, if even just
one of its 36 cells is shaded, power production will be reduced by more than half.
Experienced installation contractors such as NW Wind & Solar use a device called a
Solar Pathfinder to carefully identify potential areas of shading prior to installation.
Not every roof has the correct orientation or angle of inclination to take advantage of the
sun's energy. Some systems are designed with pivoting panels that track the sun in its
journey across the sky. Non-tracking PV systems should be inclined at an angle equal
to the site’s latitude to absorb the maximum amount of energy year-round. Alternate
orientations and/or inclinations may be used to optimize energy production for particular
times of day or for specific seasons of the year.

Solar panels
Solar panels, also known as modules, contain photovoltaic cells made from silicon that
transform incoming sunlight into electricity rather than heat. (”Photovoltaic” means
electricity from light — photo = light, voltaic = electricity.)

Solar photovoltaic cells consist of a positive and a negative film of silicon placed under a
thin slice of glass. As the photons of the sunlight beat down upon these cells, they
knock the electrons off the silicon. The negatively-charged free electrons are
preferentially attracted to one side of the silicon cell, which creates an electric voltage
that can be collected and channeled. This current is gathered by wiring the individual
solar panels together in series to form a solar photovoltaic array. Depending on the size
of the installation, multiple strings of solar photovoltaic array cables terminate in one
electrical box, called a fused array combiner. Contained within the combiner box are
fuses designed to protect the individual module cables, as well as the connections that
deliver power to the inverter. The electricity produced at this stage is DC (direct current)
and must be converted to AC (alternating current) suitable for use in your home or
business.

Inverter
The inverter is typically located in an accessible location, as close as practical to the
modules. In a residential application, the inverter is often mounted to the exterior
sidewall of the home near the electrical main or sub panels. Since inverters make a
slight noise, this should be taken into consideration when selecting the location.

The inverter turns the DC electricity generated by the solar panels into 120-volt AC that
can be put to immediate use by connecting the inverter directly to a dedicated circuit
breaker in the electrical panel.

The inverter, electricity production meter, and electricity net meter are connected so
that power produced by your solar electric system will first be consumed by the
electrical loads currently in operation. The balance of power produced by your solar
electric system passes through your electrical panel and out onto the electric
grid. Whenever you are producing more electricity from your solar electric system than
you are immediately consuming, your electric utility meter will turn backwards!

Net meter
In a solar electric system that is also tied to the utility grid, the DC power from the solar
array is converted into 120/240 volt AC power and fed directly into the utility power
distribution system of the building. The power is “net metered,” which means it reduces
demand for power from the utility when the solar array is generating electricity – thus
lowering the utility bill. These grid-tied systems automatically shut off if utility power
goes offline, protecting workers from power being back fed into the grid during an
outage. These types of solar-powered electric systems are known as “on grid” or
“battery-less” and make up approximately 98% of the solar power systems being
installed today.

SOCIAL IMPACT OF SOLAR ENERGY

Energy is essential to human beings. The increasing demand of energy has triggered the public
scrutiny on the sustainability issues associated with the energy production and transmission.
There have been many studies focusing on reducing the environmental impacts associated with
the energy sector. Renewable energy sources such as solar energy have been prompted to
mitigate these environmental impacts. This research adopted a quantitative approach to
investigate the social acceptance of solar energy technologies from end users’ perspective in
Shandong province, China. A large-scale questionnaire survey was conducted. The results show
that there is a considerable high level of social acceptance and public awareness of solar water
heater. However, another major application of solar energy, solar PV has not gained a high level
of social acceptance or public awareness in Shandong. This study provides useful references for
policy makers to further promote the utilization of solar energy innovations

The increase in energy demand has caused considerable attention to be directed toward
sustainable energy resources. The importance of electricity generation through solar energy has
been intensively highlighted globally, but some part of the world has yet to exert efforts to
develop this energy resource. This study explores the social acceptance and level of human
interest in solar energy. In addition, this work identifies the difficulties in the consumption of
solar energy and the expectations for solar energy development in Malaysia. Survey results
show that 80 % of the respondents are highly interested in solar energy. However, most the
respondents have reported that some hindrances, such as expensive solar panels and lack of
correct information about solar energy utilization, make fuel-generated electricity a preferable
choice. Meanwhile, almost 80 % of the respondents believe that government incentives could
best enhance solar energy usage nationwide. To implement new solar energy policies
successfully in Malaysia, the government should support the establishment of solar power
plants, as well as provide complete information and funding for independent research.
Furthermore, more than 70 % of respondents perceive the government to be the main
organization that should lead the development of this energy sector. Therefore, this research
provides some useful references for policy makers to continue promoting the use of solar
energy in Malaysia

Environmental impact of solar energy.

Solar power is an extremely clean way to generate electricity. There are no air emissions
associated with the operation of solar modules or direct application technologies. Residential-
scale passive construction, photovoltaic, solar water heating, and other direct applications reduce
power generation from traditional sources and the associated environmental impacts.

Modern society is extremely dependent electricity generated by oil and coal, which both add to
greenhouse gas buildup in the environment. Our homes, vehicles and technologies require
immense amounts of energy, yet fossil fuel supplies are finite. Sunshine, however, isn't
disappearing anytime soon.

Solar energy is abundant throughout many parts of the United States. In a single day, the amount
of sunlight hitting the United States is more than 2,500 times the entire country's daily energy
usage. From an energy security and sustainability perspective, it seems logical to make the most
of solar power technologies. There are multiple technologies used to create electricity from solar
energy. Many homes and businesses install photovoltaic panels, which absorb sunlight and use
semiconductors to create usable energy. Larger complexes use panels, too, but others deploy
concentrated solar power, which uses lenses or mirrors focused to a small area, where the
tremendous heat is turned into electricity.

Both technologies help the environment because they reduce the need to burn fossil fuels. That
means a correlating drop in air pollution and greenhouse gases. And because they don't have
many moving parts, they're quieter, too.

Photovoltaic panels are still expensive to produce. However, many experts expect that hardware
prices will drop by at least 50 percent in the next few years as more companies invest in this
technology. Once a resident or business can afford the panels, they're installed easily and tied
into the electrical system.

One of the great things about solar power is that it produces its greatest output as demand spikes.
Energy usage jumps during summer months due to air conditioners -- but that same solar energy
that warms the country can be captured and used to power those devices.
At this point, though, solar power accounts for only around 1 percent of electricity generation. It
will take years of concentrated effort by the government and by private investors to make the
most of solar power's potential.

ECONOMIC IMPACT ON SOLAR ENERGY

As solar power starts to gather more momentum than ever with production increasing,
installation costs falling and government funding providing incentives for many, it is having a
wider effect on regional, national and international economies. Solar energy may not be an
invention but with its efficiency, cheaper costs and increased availability it is becoming more
prominent and increased focus on it can provide many benefits.

The main advantage is of course to produce much cleaner energy at a cheaper rate to power
our homes, hospitals, shops and other amenities. As solar energy becomes more in demand it
provides a boost to the economy in various ways.

Creates Jobs

From installing solar panels on the roofs of individuals’ homes to setting up a solar power plant,
workers are required to carry out such tasks. This creates tens, hundreds and even thousands of
jobs depending on the size of such projects. For example, Iluméxico aim to supply 300,000
people in rural Mexico with solar power which has created an initial 180 jobs in the region
along with brining clean, affordable energy to off the grid homes.
Innovation

There is a knock-on effect of the increased focus on solar and green energy for other businesses
too. Car manufacturing companies will see an opportunity to develop more electric vehicles
that can incorporate solar energy into powering them. This creates new jobs and in other
sectors a similar phenomenon may occur. It does reduce the reliance on fossil fuels which is
likely to have a negative impact upon jobs in that sector over time

Reduces Reliance on Imported Fuel

In the same way that solar power can increase exports it will also reduce the need for importing
similar products and alternatives. There will be a reduction in the need for coal, oil and gas
being imported which can help avoid tentative political situations and the reliance on
dominating powers such as the recent sanctions imposed upon Russia.

Increasing your own country’s reliance on renewable, solar powered energy replaces the need
for importing fossil fuels from abroad to meet the demand. It also eliminates expensive
shipping costs and is pumping money back into your own economy rather than another
nation’s. With more use of green energy in other aspects, such as powering vehicles, there
should be less need for petrol and diesel, so what’s required can be sourced more locally.

Decreases Government Spending

Most governments now have set reduced carbon emissions targets. Not only does solar energy
help achieve these results but it also cuts down on the amount of government spending (and
therefore taxpayers’ money) used towards meeting such requirements. This can save a lot of
outgoings which can be used elsewhere.

COST COMPARISONS BETWEEN SOLAR ENERGY

AND OTHER SOURCES OF ENERGY.

Comparing the cost of various energy sources is far from simple. Government subsidies
play a major role in shaping the growth potential for a new power source, which means
that making an “apples to apples” comparison of the costs of solar energy vs. fossil
fuels side-by-side is a complicated task.

One wind turbine generated the same amount of electricity per kWh as about 48704 solar panels. To
manufacture and maintain 48704 solar panels, 28,126,560 kWh must be consumed. It took 23,822,339
kWh more to produce 48704 solar panels than it takes to produce one wind turbine.

When comparing the amount of CO2 released per kWh during a wind turbine and solar panel's life cycle,
the wind turbine produced 4.64 grams of CO2/1kWh while the solar panel produced 70 grams of
CO2/1kWh. This means the wind turbine released less CO2 than the solar panel to the atmosphere.

Energy balance is the amount of time needed to pay back the energy consumed. The lower the payback
time, the sooner the machine starts producing energy that is renewable. The wind turbine took only 6.6
months to repay its energy balance while the solar panel took 3.2 years. Because the turbine took less
time to repay its energy balance, the turbine can then profit from the energy generated after its
payment.

Energy Return on Investment (EROI) is used to compare the quantity of energy supplied to the quantity
of energy used in supply process. The higher the ratio, the less energy is consumed in producing the
energy. The wind turbine's EROI is approximately 36.5 :1 while solar energy has a EROI of 5:1. We can
deduce that that the wind turbines return more energy for a certain amount of energy invested.
1. Enabling environment
An enabling environment refers to the prevalent conditions in a country or region that support the
growth of the industry in question. The enabling environment is mostly a function of the national
government and regulatory bodies. National policies are an effective way to gauge the viability of a
business model from one country to another. In Europe and the US, several solar energy projects
came to realization due to subsidies and tax breaks as well as other supportive policies in the early
stages of development. In 2012, nine of the 10 leading countries in solar power installations saw a
drop in small-scale investments in the industry because their governments cut back on subsidies.
Kenya’s Energy Regulatory Commission (ERC) develops new energy generation centres based on
the Least Cost Power Development Plan (LCPDP). The latest version of the LCPDP, released in
March 2011, covers the 20-year period from 2011 to 203115. Methodologically, the report utilizes a
least-cost planning approach aimed at delivering the required level of electricity supply at any given
point in time at the lowest overall economic cost. Looking closely at the LCPDP for Kenya, it is clear
that there is no provision for the generation of electricity from solar energy resources at any point in
the projected 20-year period. The decision to omit solar energy sources from the electricity supply
projections was based on previous assumptions that rendered solar too expensive in this setting.
The LCPDP consequently stresses the “great potential for the use of solar energy throughout the
year because of [the country’s] strategic location near the equator” in its current state, the plan limits
the solar energy applications to SHS, solar water heating and other off-grid uses in rural areas far
from the grid.

This exclusion clearly sends the message: “We are not interested in Solar Energy!” to the industry.
However, this stance is changing because of support for solar energy from the European Union
(Africa EU Energy Partnership) and the Powering Africa from the American Government.

2. Access to finance/affordability
Access to finance has been defined as the most significant challenge to the penetration of solar
energy technology in Africa. The effects of limited financing options are felt on all levels of the
distribution value chain from the manufacturer through to the importers, distributors, dealers and
finally the end user11. The lack of detailed information about the solar industry in African countries is
a major impediment to foreign direct investment. Limited awareness of market trends and rates of
return along with the fears of political instability raises the risk elements for investors. These factors
lead to the development of a ‘High Perceived Risk’ level that results in overall investor uncertainty.
However, in 2012, investments into the solar industry in developing countries went up by 19%,
resulting in the introduction of $112 billion into the market. This was the highest ever investment in
solar energy in Africa.

The limitations of Access to Finance can also be attributed to the Cost of Capital which has emerged
as a major impediment to the growth of the solar energy in developing countries. Cost of capital is
the cost of the funding used to finance a business and is dependent on the mode of financing as well
as the policies at the firm or lending organization. It is usually determined by the ratio of the cost of
equity to cost of debt capital used to finance the venture. It has been found that in Africa, high
interest rates combined with the cost of technology and foreign expertise have greatly affected the
cost of capital for solar energy projects. Nevertheless, in 2012, the share of foreign investment in the
African solar industry rose significantly by up to 19% with Kenya being one of the major
beneficiaries. At the same time, investment in the US and Europe dropped a notch due to policy
uncertainty and cuts in subsidies on renewable energy. These emerging trends could significantly
affect the cost of capital in the region and further lower the LCOE of solar energy.

Furthermore, with strategic negotiations and financing models, larger solar projects can achieve a
lower cost of capital in Kenya as well as the rest of Africa.

3. Awareness
Consumer education has been highlighted as one of the top three challenges facing the penetration
of PV systems in rural areas in Kenya and the rest of Africa11. There is a great need to raise the
awareness levels of the target market of the energy generation options available and their benefits,
as well as the hazards involved with using the more dangerous dirty fuels to light their homes. The
shortage of entrepreneurial skills and entrepreneurial capacity in the energy sector8 has limited the
marketing of solar products and other METs to the end user.
Finally, the aspect of awareness that is most challenging to overcome is caused by Market Spoilage.
Market Spoilage occurs due to the presence of substandard products in the market. In a study
carried out by the Lumina Project on LED torches in East Africa, it was found that 90% of the users
experienced quality-related problems during the six-month study period19. Poor-quality products,
although cheap, increase the difficulty of market penetration because the end users no longer trust
the technology. In 2009, Lighting Africa began testing the quality of solar products available in the
African market. The study revealed that 13 out of the 14 Pico PV products in circulation did not pass
their quality tests. A second round of tests was carried out in 2012 when the number of products in
the market had risen to 120. The results were similar in that only 46 of the products passed the
quality tests11. Consumer education is an expensive hurdle that has to be overcome for any solar
energy product to develop a client base, especially in rural Africa.

4. Access to technical support services

Availability of technical assistance in the proximity of the end users is a key factor in countering the
effects of market spoilage. The presence of technicians well versed in trouble-shooting, repair and
maintenance of the MET systems in the locality increases the trust of the consumers20. Due to the
novelty of most of the solar energy products, it is important to develop local maintenance capacity in
the area where the products are being marketed. Nevertheless, the scattered nature of BOP
consumers coupled with their low buying power makes the notion of setting up service centres in the
distribution regions unsustainable