Renewable Energy

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Clean Energy Spending Will Surpass $2 Trillion This Year

Investments in carbon-free energy will be twice as large as fossil fuel spending in 2024, the International Energy Agency predicts

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California has hit record-breaking milestones in renewable electricity generation, showing that wind, water and solar are ready to cover our electricity needs

Mark Z. Jacobson

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This April’s total solar eclipse will present a unique challenge to power grid operators because of the decline in solar power generation

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Renewable Power Set to Surpass Coal Globally by 2025

Renewable energy will surpass coal power by 2025 and, with nuclear energy, will account for nearly half the world’s power generation by 2026, the International Energy Agency forecasts

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China is running away with clean energy expansion, with the E.U. and U.S. following far behind

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Solar and natural gas surged last year in the U.S., while wind stumbled

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There’s a Better Way to Mine for Electric Vehicle Batteries

We do not want to trade the harm of emissions from gasoline vehicles for the harm caused by unsustainable mining practices

Beia Spiller, Sangita Kannan

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Google Taps Hot Rocks to Cool Climate

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Commercial Airliner Is First to Cross Atlantic with Biofuel Power

Virgin Atlantic flew the first large commercial jet to traverse the Atlantic with 100 percent sustainable aviation fuel

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  • 08 August 2023

Clean energy can fuel the future — and make the world healthier

You have full access to this article via your institution.

Aerial view of rows of solar panels on a hillside in Zhumadian, Henan Province of China.

China is on track to reach its solar-power target for 2030. Credit: Zhao Yongtao/VCG/Getty

The 2030 targets laid out by the United Nations for the seventh Sustainable Development Goal (SDG 7) are clear enough: provide affordable access to energy; expand use of renewable sources; improve energy efficiency year on year; and enhance international cooperation in support of clean-energy research, development and infrastructure. Meeting those goals, however, will be anything but simple. As seen in many of the editorials in this series examining the SDGs at their halfway stage , the world is falling short.

This is due, at least in part, to the influence of the fossil-fuel industry, which drives the economics and, often, the politics of countries large and small, rich and poor. Rising human prosperity, as measured by economic growth, has long been linked to an abundance of fossil fuels. Many politicians fear that the pursuit of clean-energy sources will compromise that economic development. The latest science clearly counters this view — but the voice of the research community is not being heard in the right places. To meet the targets embodied in SDG 7, that has to change.

There is much to be done. In 2021, some 675 million people worldwide still did not have access to electricity. This is down from 1.1 billion a decade or so ago, but the pace of progress has slowed. On the basis of current trends, 660 million people, many of them in sub-Saharan Africa, will remain without electricity by 2030. And projections indicate that some 1.9 billion people will still be using polluting and inefficient cooking systems fuelled by coal and wood (see go.nature.com/3s8d887 ). This is bad news all round: for health, biodiversity and the climate.

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Carbon emissions hit new high: warning from COP27

Achieving the energy-access targets was always going to be a stretch, but progress has been slow elsewhere, too. Take energy efficiency. More energy efficiency means less pollution, and energy efficiency has increased by around 2% annually in the past few years. But meeting the target for 2030 — to double the rate of the 1990–2010 average — would require gains of around 3.4% every year for the rest of this decade.

The picture for renewable energy is similarly mixed. Despite considerable growth in wind and solar power to generate grid electricity, progress in the heat and transport sectors remains sluggish. Renewable energy’s share of total global energy consumption was just 19.1% in 2020, according to the latest UN tracking report, but one-third of that came from burning resources such as wood.

One reason for the slow progress is the continued idea that aggressive clean-energy goals will get in the way of economic development. It’s easier and more profitable for major fossil-fuel producers to simply maintain the status quo. Just last month, ministers from the G20 group of the world’s biggest economies, including the European Union, India, Saudi Arabia and the United States, failed to agree on a plan to phase out fossil fuels and triple the capacity of renewable energy by 2030.

But this is where science has a story to tell. In the past, researchers say, many models indicated that clean energy would be more expensive than that from fossil fuels, potentially pricing the poorest nations out of the market as well as driving up people’s food bills and exacerbating hunger. But the latest research suggests that the picture is more complex. Energy is a linchpin for most of the SDGs, and research that merges climate, energy and the SDGs underscores this 1 . For example, the agriculture and food-transport sectors still depend on fossil fuels, and that generates pollution that kills millions of people each year. Other links are indirect: lack of access to light at night and to online information — as a result of energy poverty — hampers educational attainment and contributes to both long- and short-term inequality.

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US aims for electric-car revolution — will it work?

The lesson from research is that it might be easier, not harder, to address these challenges together. In 2021, researcher Gabriela Iacobuţă at the German Institute of Development and Sustainability in Bonn and her colleagues showed that technologies centred on renewable resources and efficiency tend to come with few trade-offs and many benefits, including improved public health and wealth, thanks to a cleaner environment and better jobs 2 . And climate scientist Bjoern Soergel at the Potsdam Institute for Climate Impact Research in Germany and his colleagues found that a coordinated package of climate and development policies could achieve most of the SDGs while limiting global warming to 1.5 °C above pre-industrial levels 3 .

The study assessed 56 indicators across all 17 SDGs. One proposed intervention is an international climate finance mechanism that would levy fees on carbon emissions that would be redistributed through national programmes to reduce poverty. A second focuses on promoting healthy diets — including reducing the consumption of meat, the production of which requires a lot of water, energy and land. This would benefit people on low incomes by lowering both food and energy prices.

The biggest challenge lies in translating these models to the real world. To do so, we need leaders who are not bound by outmoded thinking, are aware of the latest science and can draw on the research to build public support for the necessary energy transition. We require more national and international public institutions that are willing to address problems at the system level. And all of this needs a science community that is willing and able to champion knowledge and evidence.

Nature 620 , 245 (2023)

doi: https://doi.org/10.1038/d41586-023-02510-y

Vohra, K. et al. Environ. Res. 195 , 110754 (2021).

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Iacobuţă, G. I., Höhne, N., van Soest, H. L. & Leemans, R. Sustainability 13 , 10774 (2021).

Article   Google Scholar  

Soergel, B. et al. Nature Clim. Change 11 , 656–664 (2021).

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Renewable Energy Industries: A Research Guide

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Author: Natalie Burclaff, Business Section Head, Science & Business Reading Room.

Created: December 2020

Last Updated: March 2024

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Get connected to the Library’s large and diverse collections related to science, technology, and business through our Inside Adams Blog. This blog also features upcoming events and collection displays, classes and orientations, new research guides, and more.

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Renewable energy is generated by sources that can be replenished within a relatively short period of time. Solar, wind, water, biomass, and geothermal are all renewable energy sources. 1 Green energy, while similar to renewable energy, is a subset of sources that have the highest environmental benefits. 2 Clean energy sources emit low carbon, and include renewable energy sources along with nuclear power. 3

Renewable energy sources have been used to generate heat and power for much of human history, and more relatively recently, electricity. Renewable energy makes up 12% of primary energy use in the United States and 11% worldwide. 4 While there is still a strong dependence on fossil fuels for heating, electricity and transportation, the oil crises of the 1970s pushed for stronger investment into alternative energy sources. Additionally, the negative effects of climate change have increased public demand in finding non-fossil fuel based energy, aided by government incentives and standards. 5

This guide focuses on resources relevant to researching the business of generating and distributing renewable energy. To that end, there are sections of this guide about the power grid and the electric power sector which consumes energy in order to generate and sell electricity. This guide does not include technical or engineering information on developing renewable energy technologies. Information on the power grid, climate change, and energy policy are included as they relate to the renewable energy industry. For information on corporate responsibility, which includes businesses that use renewable or green energies, see Corporate Social Responsibility: A Resource Guide . Additional information on green businesses is in Green Business: Sources of Information . Most of the guide takes a U.S. perspective, but international sources are included throughout.

For an excellent overview U.S. energy sources, there have been a number of Congressional Research Service reports on renewable energy topics, including:

  • Lawson, Ashley J. Variable Renewable Energy . CRS In Focus IF11257. Congressional Research Service, June 25, 2019.
  • 21st Century U.S. Energy Sources: A Primer. CRS Report R44854. Congressional Research Service, March 16, 2021. The section on renewable energy starts on page 25.

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Renewable-energy development in a net-zero world

The rapid maturation of wind and solar power has been nothing short of astonishing. Not long ago, the development of new solar and wind farms was typically driven by small regional players, and the cost was significantly higher than that of a coal plant. Today, the cost of renewables has plummeted, and many solar and wind projects are undertaken by large multinational companies, which often also announce staggering development targets.

About the authors

This article is a collaborative effort by Florian Heineke, Nadine Janecke, Holger Klärner, Florian Kühn , Humayun Tai , and Raffael Winter , representing views from McKinsey’s Electric Power & Natural Gas Practice.

Over the past decade, the growth of renewable energy has consistently and dramatically outperformed nearly all expectations (Exhibit 1). Upward corrections of estimates have become something of a ritual.

But this growth story is just getting started. As countries aim to reach ambitious decarbonization targets, renewable energy—led by wind and solar—is poised to become the backbone of the world’s power supply. Along with capacity additions from major energy providers, new types of players are entering the market (Exhibit 2). Today’s fast followers include major oil and gas companies, which aim to shift their business models to profit from the increased demand for renewables and the electrification of vehicles, and private-equity players and institutional investors that make renewable energy a central component of their investment strategy. Leaders in the shipping industry are investing in renewables to enable the production of hydrogen and ammonia as zero-emission fuel sources; steel manufacturers are eyeing green hydrogen to decarbonize their steel production, with renewables providing the green electricity for the process. Car manufacturing companies are also striking renewable-energy deals to help power their operations and manufacturing, as well as making investments in wind and solar projects.

McKinsey estimates that by 2026, global renewable-electricity capacity will rise more than 80 percent from 2020 levels (to more than 5,022 gigawatts). 1 Global Energy Perspective 2022 , McKinsey, April 2022. Of this growth, two-thirds will come from wind and solar, an increase of 150 percent (3,404 gigawatts). By 2035, renewables will generate 60 percent of the world’s electricity. 2 Global Energy Perspective 2022 , McKinsey, April 2022. But even these projections might be too low. Three years ago, we looked at advances made by renewable energy and asked, “How much faster can they grow?” 3 “ Rethinking the renewable strategy for an age of global competition ,” McKinsey, October 11, 2019. The answer is: faster than you think they can.

Three core capabilities for wind and solar developers

This race to build additional solar and wind capacity increases the pressure on developers to execute efficiently and heightens competition for finite resources. Still, the three winning capabilities we identified three years ago as important for building or expanding a renewables business are even more critical now. They form the bedrock required to tackle upcoming challenges:

  • Value-chain excellence. As competition intensifies and government support for renewables subsides, strong capabilities across the entire value chain are the required cost of admission. For instance, gaining access to scarce amounts of attractive land will require differentiation in project origination and development. As margins squeeze and operators’ exposure to risk increases, ambitious companies will want to explore new, profitable offtake markets for their electricity, such as data centers or hydrogen electrolyzers for industrial production.
  • Economies of scale and skill. Driven by the rapid scaling of the renewables industry, many players have built efficient operating models. However, finding employees with the necessary skills and capabilities, particularly in high-demand areas such as project development and engineering, is becoming a bottleneck for growth ambitions.
  • Agile operating model. Agility and speed will be key in finding innovative ways to integrate partners and in establishing robust, high-performing supply chains. They will also enable businesses to shift resources quickly to the biggest value pools and respond to changes in the landscape, such as shifting regulations or price volatility.

Four challenges that will define the new era of renewable energy

Leveraging these capabilities as a strong foundation, successful renewables developers must navigate an increasingly complex and competitive landscape. Specifically, they will have to focus on and address four emerging challenges:

  • A scarcity of top-quality land. Developers are in a constant scramble to identify new sites with increasing speed. Our analysis in Germany, a country aiming to nearly double its share of electricity coming from renewables by 2030, offers a glimpse into the constraints. Of the 51 percent of the country’s land that is potentially suitable for onshore wind farms, regulatory, environmental, and technical constraints eliminate all but 9 percent. 4 McKinsey land use optimization model. Meeting capacity targets will mean adding wind turbines to 4 to 6 percent of the country, giving developers very little room for error.
  • A blue-collar and white-collar labor shortage. Across economies, the “Great Attrition” is making it difficult for companies to find and keep employees. Since April 2021, 20 million to 25 million US workers have quit their jobs, and 40 percent of employees globally say they are at least somewhat likely to leave their current position in the next three to six months. 5 Aaron De Smet, Bonnie Dowling, Bryan Hancock, and Bill Schaninger, “ The Great Attrition is making hiring harder. Are you searching the right talent pools? ,” McKinsey Quarterly , July 13, 2022; Table 4. Quits levels and rates by industry and region, seasonally adjusted, US Bureau of Labor Statistics, updated October 4, 2022. This environment presents a particularly acute challenge for industries such as renewable energy, where specific technical expertise and experience are crucial elements of success. For instance, our analysis suggests that between now and 2030, the global renewables industry will need an additional 1.1 million blue-collar workers to develop and construct wind and solar plants, and another 1.7 million to operate and maintain them. 6 Renewable energy benefits: Leveraging local capacity for onshore wind , International Renewable Energy Agency (IRENA), 2017; Renewable energy benefits: Leveraging local capacity for offshore wind , IRENA, 2018; Renewable energy benefits: Leveraging local capacity for solar PV , IRENA, 2017. This includes construction laborers, electricians, truck and semitrailer drivers, and operating engineers.
  • Supply chain pressures. The soaring cost of steel, manufacturing disruptions caused by extended lockdowns in China, and transportation backlogs at ports are already making it difficult for wind and solar developers to complete projects in their pipeline on time and on budget. Some of these pressures will abate as others move to the forefront. For instance, many of the raw materials needed to manufacture solar panels and wind turbines are projected to be in short supply. This includes nickel, copper, and rare earth metals such as neodymium and praseodymium, which are indispensable for the creation of magnets used in wind turbine generators.
  • Pressure on profits and volatility of returns in the short term. The increasing number of players moving into the renewable-development space, combined with reduced levels of government support and higher costs of materials, technology, and financing, is putting pressure on returns. At the same time, an all-time-high price volatility creates uncertainty and market risk.

Renewables developers will need to act decisively to prepare for these upcoming challenges. In a series of future articles, we provide detailed insights on each of these pressures and share potential ways players can take action.

Florian Heineke is a consultant in McKinsey’s Frankfurt office; Nadine Janecke is an associate partner in the Hamburg office; Holger Klärner is a partner in the Berlin office; Florian Kühn is a partner in the Oslo office; Humayun Tai is a senior partner in the New York office; and Raffael Winter is a partner in the Düsseldorf office.

The authors wish to thank Nadia Christakou, Florent Erbar, David Frankel, Emil Hosius, Anna Kemp, Nadine Palmowski, Andreas Schlosser, Sophia Spitzer, Christian Staudt, and Jakub Zivansky for their contributions to this article.

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Renewable energy, explained

Solar, wind, hydroelectric, biomass, and geothermal power can provide energy without the planet-warming effects of fossil fuels.

In any discussion about climate change , renewable energy usually tops the list of changes the world can implement to stave off the worst effects of rising temperatures. That's because renewable energy sources such as solar and wind don't emit carbon dioxide and other greenhouse gases that contribute to global warming .

Clean energy has far more to recommend it than just being "green." The growing sector creates jobs , makes electric grids more resilient, expands energy access in developing countries, and helps lower energy bills. All of those factors have contributed to a renewable energy renaissance in recent years, with wind and solar setting new records for electricity generation .

For the past 150 years or so, humans have relied heavily on coal, oil, and other fossil fuels to power everything from light bulbs to cars to factories. Fossil fuels are embedded in nearly everything we do, and as a result, the greenhouse gases released from the burning of those fuels have reached historically high levels .

As greenhouse gases trap heat in the atmosphere that would otherwise escape into space, average temperatures on the surface are rising . Global warming is one symptom of climate change, the term scientists now prefer to describe the complex shifts affecting our planet’s weather and climate systems. Climate change encompasses not only rising average temperatures but also extreme weather events, shifting wildlife populations and habitats, rising seas , and a range of other impacts .

Of course, renewables—like any source of energy—have their own trade-offs and associated debates. One of them centers on the definition of renewable energy. Strictly speaking, renewable energy is just what you might think: perpetually available, or as the U.S. Energy Information Administration puts it, " virtually inexhaustible ." But "renewable" doesn't necessarily mean sustainable, as opponents of corn-based ethanol or large hydropower dams often argue. It also doesn't encompass other low- or zero-emissions resources that have their own advocates, including energy efficiency and nuclear power.

Types of renewable energy sources

Hydropower: For centuries, people have harnessed the energy of river currents, using dams to control water flow. Hydropower is the world's biggest source of renewable energy by far, with China, Brazil, Canada, the U.S., and Russia the leading hydropower producers . While hydropower is theoretically a clean energy source replenished by rain and snow, it also has several drawbacks.

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Large dams can disrupt river ecosystems and surrounding communities , harming wildlife and displacing residents. Hydropower generation is vulnerable to silt buildup, which can compromise capacity and harm equipment. Drought can also cause problems. In the western U.S., carbon dioxide emissions over a 15-year period were 100 megatons higher than they normally would have been, according to a 2018 study , as utilities turned to coal and gas to replace hydropower lost to drought. Even hydropower at full capacity bears its own emissions problems, as decaying organic material in reservoirs releases methane.

Dams aren't the only way to use water for power: Tidal and wave energy projects around the world aim to capture the ocean's natural rhythms. Marine energy projects currently generate an estimated 500 megawatts of power —less than one percent of all renewables—but the potential is far greater. Programs like Scotland’s Saltire Prize have encouraged innovation in this area.

Wind: Harnessing the wind as a source of energy started more than 7,000 years ago . Now, electricity-generating wind turbines are proliferating around the globe, and China, the U.S., and Germany are the leading wind energy producers. From 2001 to 2017 , cumulative wind capacity around the world increased to more than 539,000 megawatts from 23,900 mw—more than 22 fold.

Some people may object to how wind turbines look on the horizon and to how they sound, but wind energy, whose prices are declining , is proving too valuable a resource to deny. While most wind power comes from onshore turbines, offshore projects are appearing too, with the most in the U.K. and Germany. The first U.S. offshore wind farm opened in 2016 in Rhode Island, and other offshore projects are gaining momentum . Another problem with wind turbines is that they’re a danger for birds and bats, killing hundreds of thousands annually , not as many as from glass collisions and other threats like habitat loss and invasive species, but enough that engineers are working on solutions to make them safer for flying wildlife.

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Solar: From home rooftops to utility-scale farms, solar power is reshaping energy markets around the world. In the decade from 2007 and 2017 the world's total installed energy capacity from photovoltaic panels increased a whopping 4,300 percent .

In addition to solar panels, which convert the sun's light to electricity, concentrating solar power (CSP) plants use mirrors to concentrate the sun's heat, deriving thermal energy instead. China, Japan, and the U.S. are leading the solar transformation, but solar still has a long way to go, accounting for around two percent of the total electricity generated in the U.S. in 2017. Solar thermal energy is also being used worldwide for hot water, heating, and cooling.

Biomass: Biomass energy includes biofuels such as ethanol and biodiesel , wood and wood waste, biogas from landfills, and municipal solid waste. Like solar power, biomass is a flexible energy source, able to fuel vehicles, heat buildings, and produce electricity. But biomass can raise thorny issues.

Critics of corn-based ethanol , for example, say it competes with the food market for corn and supports the same harmful agricultural practices that have led to toxic algae blooms and other environmental hazards. Similarly, debates have erupted over whether it's a good idea to ship wood pellets from U.S. forests over to Europe so that it can be burned for electricity. Meanwhile, scientists and companies are working on ways to more efficiently convert corn stover , wastewater sludge , and other biomass sources into energy, aiming to extract value from material that would otherwise go to waste.

Geothermal: Used for thousands of years in some countries for cooking and heating, geothermal energy is derived from the Earth’s internal heat . On a large scale, underground reservoirs of steam and hot water can be tapped through wells that can go a mile deep or more to generate electricity. On a smaller scale, some buildings have geothermal heat pumps that use temperature differences several feet below ground for heating and cooling. Unlike solar and wind energy, geothermal energy is always available, but it has side effects that need to be managed, such as the rotten egg smell that can accompany released hydrogen sulfide.

Ways to boost renewable energy

Cities, states, and federal governments around the world are instituting policies aimed at increasing renewable energy. At least 29 U.S. states have set renewable portfolio standards —policies that mandate a certain percentage of energy from renewable sources, More than 100 cities worldwide now boast at least 70 percent renewable energy, and still others are making commitments to reach 100 percent . Other policies that could encourage renewable energy growth include carbon pricing, fuel economy standards, and building efficiency standards. Corporations are making a difference too, purchasing record amounts of renewable power in 2018.

Wonder whether your state could ever be powered by 100 percent renewables? No matter where you live, scientist Mark Jacobson believes it's possible. That vision is laid out here , and while his analysis is not without critics , it punctuates a reality with which the world must now reckon. Even without climate change, fossil fuels are a finite resource, and if we want our lease on the planet to be renewed, our energy will have to be renewable.

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  • Sky's the Limit for Biofuels
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Earlier Headlines

Thursday, may 9, 2024.

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Tuesday, April 2, 2024

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Wednesday, March 27, 2024

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Thursday, February 29, 2024

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Tuesday, February 27, 2024

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Monday, February 26, 2024

  • What Will It Take for China to Reach Carbon Neutrality by 2060?
  • New World Record for CIGS Solar Cells

Tuesday, February 20, 2024

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Friday, February 16, 2024

  • Electrification or Hydrogen? Both Have Distinct Roles in the European Energy Transition
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Friday, February 9, 2024

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Wednesday, February 7, 2024

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Monday, February 5, 2024

  • Ammonia Attracts the Shipping Industry, but Researchers Warn of Its Risks

Wednesday, January 24, 2024

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Tuesday, January 23, 2024

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Thursday, January 18, 2024

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Wednesday, January 17, 2024

  • A Non-Proliferation Solution: Using Antineutrinos to Surveil Nuclear Reactors
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Thursday, January 11, 2024

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Renewable Energy

Renewable energy sources are growing quickly and will play a vital role in tackling climate change..

Since the Industrial Revolution, the energy mix of most countries across the world has become dominated by fossil fuels. This has major implications for the global climate, as well as for human health. Three-quarters of global greenhouse gas emissions result from the burning of fossil fuels for energy. Fossil fuels are responsible for large amounts of local air pollution – a health problem that leads to at least 5 million premature deaths each year.

To reduce CO 2 emissions and local air pollution, the world needs to rapidly shift towards low-carbon sources of energy – nuclear and renewable technologies.

Renewable energy will play a key role in decarbonizing our energy systems in the coming decades. But how rapidly is our production of renewable energy changing? What technologies look most promising in transforming our energy mix?

In this article we look at the data on renewable energy technologies across the world; what share of energy they account for today, and how quickly this is changing.

Renewable energy generation

How much of our primary energy comes from renewables.

We often hear about the rapid growth of renewable technologies in media reports. But how much of an impact has this growth had on our energy systems?

In this interactive chart, we see the share of primary energy consumption that came from renewable technologies – the combination of hydropower, solar, wind, geothermal, wave, tidal, and modern biofuels. Traditional biomass – which can be an important energy source in lower-income settings is not included.

Note that this data is based on primary energy calculated by the 'substitution method' which attempts to correct for the inefficiencies in fossil fuel production. It does this by converting non-fossil fuel sources to their 'input equivalents': the amount of primary energy that would be required to produce the same amount of energy if it came from fossil fuels.

Approximately one-seventh of the world's primary energy is now sourced from renewable technologies.

Note that this is based on renewable energy's share in the energy mix. Energy consumption represents the sum of electricity, transport, and heating. We look at the electricity mix later in this article.

Breakdown of renewables in the energy mix

In the section above we looked at what share renewable technologies collectively accounted for in the energy mix.

In the charts shown here, we look at the breakdown of renewable technologies by their components – hydropower, solar, wind, and others.

The first chart shows this as a stacked area chart, which allows us to more readily see the breakdown of the renewable mix and the relative contribution of each. The second chart is shown as a line chart, allowing us to see more clearly how each source is changing over time.

Globally we see that hydropower is by far the largest modern renewable source. However, we also see wind and solar power both growing rapidly.

Renewables in the electricity mix

How much of our electricity comes from renewables.

In the sections above we looked at the role of renewables in the total energy mix . This includes not only electricity but also transport and heating. Electricity forms only one component of energy consumption.

Since transport and heating tend to be harder to decarbonize – they are more reliant on oil and gas – renewables tend to have a higher share in the electricity mix versus the total energy mix.

This interactive chart shows the share of electricity that comes from renewable technologies.

Globally, almost one-third of our electricity comes from renewables.

Hydropower generation

Hydroelectric power has been one of our oldest and largest sources of low-carbon energy. Hydroelectric generation at scale dates back more than a century, and is still our largest renewable source – excluding traditional biomass, it still accounts for approximately half of renewable generation.

However, the scale of hydroelectric power generation varies significantly across the world. This interactive chart shows its contribution by country.

Share of primary energy that comes from hydropower

This interactive chart shows the share of primary energy that comes from hydropower.

Share of electricity that comes from hydropower

This interactive chart shows the share of electricity that comes from hydropower.

Wind energy

Wind energy generation.

This interactive chart shows the amount of energy generated from wind each year. This includes both onshore and offshore wind farms.

Wind generation at scale – compared to hydropower, for example – is a relatively modern renewable energy source but is growing quickly in many countries across the world.

Installed wind capacity

The previous section looked at the energy output from wind farms across the world. Energy output is a function of power (installed capacity) multiplied by the time of generation.

Energy generation is therefore a function of how much wind capacity is installed. This interactive chart shows installed wind capacity – including both onshore and offshore – across the world.

Share of primary energy that comes from wind

This interactive chart shows the share of primary energy that comes from wind.

Share of electricity that comes from wind

This interactive chart shows the share of electricity that comes from wind.

Solar energy

Solar energy generation.

This interactive chart shows the amount of energy generated from solar power each year.

Solar generation at scale – compared to hydropower, for example – is a relatively modern renewable energy source but is growing quickly in many countries across the world.

Installed solar capacity

The previous section looked at the energy output from solar across the world. Energy output is a function of power (installed capacity) multiplied by the time of generation.

Energy generation is therefore a function of how much solar capacity is installed. This interactive chart shows installed solar capacity across the world.

Share of primary energy that comes from solar

This interactive chart shows the share of primary energy that comes from solar power.

Share of electricity that comes from solar

This interactive chart shows the share of electricity that comes from solar power.

Biofuel production

Traditional biomass – the burning of charcoal, organic wastes, and crop residues – was an important energy source for a long period of human history. It remains an important source in lower-income settings today. However, high-quality estimates of energy consumption from these sources are difficult to find. The Energy Institute Statistical Review of World Energy – our main data source on energy – only publishes data on commercially traded energy, so traditional biomass is not included.

However, modern biofuels are included in this energy data. Bioethanol and biodiesel – fuel made from crops such as corn, sugarcane, hemp, and cassava – are now a key transport fuel in many countries.

This interactive chart shows modern biofuel production across the world.

Installed geothermal capacity

This interactive chart shows the installed capacity of geothermal energy across the world.

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Renewable Energy Explained

Solar, wind, hydroelectric, biomass, and geothermal power can provide energy without the planet-warming effects of fossil fuels.

Chemistry, Conservation, Earth Science, Engineering

Braes of Doune Wind Farm

As of 2017, wind turbines, like the Braes of Doune wind farm near Stirling, Scotland, are now producing 539,000 megawatts of power around the world—22 times more than 16 years before. Unfortunately, this renewable, clean energy generator isn't perfect.

Photograph by Jim Richardson

As of 2017, wind turbines, like the Braes of Doune wind farm near Stirling, Scotland, are now producing 539,000 megawatts of power around the world—22 times more than 16 years before. Unfortunately, this renewable, clean energy generator isn't perfect.

In any discussion about climate change , renewable energy usually tops the list of changes the world can implement to stave off the worst effects of rising temperatures. That's because renewable energy sources, such as solar and wind, don't emit carbon dioxide and other greenhouse gases that contribute to global warming. Clean energy has far more to recommend it than just being "green." The growing sector creates jobs, makes electric grids more resilient, expands energy access in developing countries, and helps lower energy bills. All of those factors have contributed to a renewable energy renaissance in recent years, with wind and solar setting new records for electricity generation. For the past 150 years or so, humans have relied heavily on coal, oil, and other fossil fuels to power everything from light bulbs to cars to factories. Fossil fuels are embedded in nearly everything we do, and as a result, the greenhouse gases released from the burning of those fuels have reached historically high levels. As greenhouse gases trap heat in the atmosphere that would otherwise escape into space, average temperatures on the surface are rising. Global warming is one symptom of climate change, the term scientists now prefer to describe the complex shifts affecting our planet’s weather and climate systems. Climate change encompasses not only rising average temperatures but also extreme weather events, shifting wildlife populations and habitats, rising seas, and a range of other impacts. Of course, renewables—like any source of energy—have their own trade-offs and associated debates. One of them centers on the definition of renewable energy. Strictly speaking, renewable energy is just what you might think: perpetually available, or as the United States Energy Information Administration puts it, "virtually inexhaustible." But "renewable" doesn't necessarily mean sustainable, as opponents of corn-based ethanol or large hydropower dams often argue. It also doesn't encompass other low- or zero-emissions resources that have their own advocates, including energy efficiency and nuclear power. Types of Renewable Energy Sources Hydropower: For centuries, people have harnessed the energy of river currents, using dams to control water flow. Hydropower is the world's biggest source of renewable energy by far, with China, Brazil, Canada, the U.S., and Russia being the leading hydropower producers. While hydropower is theoretically a clean energy source replenished by rain and snow, it also has several drawbacks. Large dams can disrupt river ecosystems and surrounding communities, harming wildlife, and displacing residents. Hydropower generation is vulnerable to silt buildup, which can compromise capacity and harm equipment. Drought can also cause problems. In the western U.S., carbon dioxide emissions over a 15-year period were 100 megatons higher than they would have been with normal precipitation levels, according to a 2018 study, as utilities turned to coal and gas to replace hydropower lost to drought. Even hydropower at full capacity bears its own emissions problems, as decaying organic material in reservoirs releases methane. Dams aren't the only way to use water for power: Tidal and wave energy projects around the world aim to capture the ocean's natural rhythms. Marine energy projects currently generate an estimated 500 megawatts of power—less than one percent of all renewables—but the potential is far greater. Programs like Scotland’s Saltire Prize have encouraged innovation in this area. Wind: Harnessing the wind as a source of energy started more than 7,000 years ago. Now, electricity-generating wind turbines are proliferating around the globe, and China, the U.S., and Germany are the world's leading wind-energy producers. From 2001 to 2017, cumulative wind capacity around the world increased to more than 539,000 megawatts from 23,900 megawatts—more than 22 fold. Some people may object to how wind turbines look on the horizon and to how they sound, but wind energy, whose prices are declining, is proving too valuable a resource to deny. While most wind power comes from onshore turbines, offshore projects are appearing too, with the most in the United Kingdom and Germany. The first U.S. offshore wind farm opened in 2016 in Rhode Island, and other offshore projects are gaining momentum. Another problem with wind turbines is that they’re a danger for birds and bats, killing hundreds of thousands annually, not as many as from glass collisions and other threats like habitat loss and invasive species, but enough that engineers are working on solutions to make them safer for flying wildlife. Solar: From home rooftops to utility-scale farms, solar power is reshaping energy markets around the world. In the decade from 2007 and 2017 the world's total installed energy capacity from photovoltaic panels increased a whopping 4,300 percent. In addition to solar panels, which convert the sun's light to electricity, concentrating solar power (CSP) plants use mirrors to concentrate the sun's heat, deriving thermal energy instead. China, Japan, and the U.S. are leading the solar transformation, but solar still has a long way to go, accounting for around just two percent of the total electricity generated in the U.S. in 2017. Solar thermal energy is also being used worldwide for hot water, heating, and cooling. Biomass: Biomass energy includes biofuels, such as ethanol and biodiesel, wood, wood waste, biogas from landfills, and municipal solid waste. Like solar power, biomass is a flexible energy source, able to fuel vehicles, heat buildings, and produce electricity. But biomass can raise thorny issues. Critics of corn-based ethanol, for example, say it competes with the food market for corn and supports the same harmful agricultural practices that have led to toxic algae blooms and other environmental hazards. Similarly, debates have erupted over whether it's a good idea to ship wood pellets from U.S. forests over to Europe so that it can be burned for electricity. Meanwhile, scientists and companies are working on ways to more efficiently convert corn stover, wastewater sludge, and other biomass sources into energy, aiming to extract value from material that would otherwise go to waste. Geothermal: Used for thousands of years in some countries for cooking and heating, geothermal energy is derived from Earth’s internal heat. On a large scale, underground reservoirs of steam and hot water can be tapped through wells that can go a two kilometers deep or more to generate electricity. On a smaller scale, some buildings have geothermal heat pumps that use temperature differences several meters below ground for heating and cooling. Unlike solar and wind energy, geothermal energy is always available, but it has side effects that need to be managed, such as the rotten-egg smell that can accompany released hydrogen sulfide. Ways To Boost Renewable Energy Cities, states, and federal governments around the world are instituting policies aimed at increasing renewable energy. At least 29 U.S. states have set renewable portfolio standards—policies that mandate a certain percentage of energy from renewable sources. More than 100 cities worldwide now boast receiving at least 70 percent of their energy from renewable sources, and still others are making commitments to reach 100 percent. Other policies that could encourage renewable energy growth include carbon pricing, fuel economy standards, and building efficiency standards. Corporations are making a difference too, purchasing record amounts of renewable power in 2018. Wonder whether your state could ever be powered by 100 percent renewables? No matter where you live, scientist Mark Jacobson believes it's possible. That vision is laid out here , and while his analysis is not without critics , it punctuates a reality with which the world must now reckon. Even without climate change, fossil fuels are a finite resource, and if we want our lease on the planet to be renewed, our energy will have to be renewable.

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Nutifafa Yao Doumon

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Countries around the world are exploring ways to transition away from fossil fuels. The transition, prompted by carbon emissions that exacerbate climate change, is vast and includes renewables such as solar, wind, and hydro. But is transitioning as simple as choosing renewables for energy? What other facets must be considered in this transition? Nutifafa Yao Doumon is an IEE faculty member and an assistant professor in the College of Earth and Mineral Sciences. He and his students have been thinking about what the transition will require, what challenges lie ahead, and what could go right/wrong in the process.

What factors should be considered in the transition to renewable energy?

I recently had a similar discussion with my graduate students in MatSE 597 (Organic/Hybrid Optoelectronic & Photovoltaic Devices), a course that discusses renewable energy, sustainability, and energy transition . We agreed that meeting the energy transition is a complex challenge that requires a multifaceted approach. Though the following factors may not be exhaustive, they are crucial for the transition to renewable energy:

  • Investment in renewable energy infrastructures
  • Technology innovation and research and development (R&D)
  • Energy efficiency measures
  • Policy support and regulatory frameworks
  • Global cooperation and collective action

What are some of the main challenges in the transition to solar energy?

The energy transition  is not a simple task. It faces many multifaceted challenges, including technological, environmental, societal, economic, and geopolitical issues. Here, I will comment briefly on the technological and geopolitical aspects  to give you a sense of the complexity we are dealing with.

From a geopolitical perspective, it is crucial to acknowledge the concerns of many regions or countries in the global south . They believe the West is coercing them into adopting renewable technologies , arguing that they have not been the main contributors to greenhouse gas emissions and that transitioning to other energy sources is not a priority, especially when they have not yet reached the level of development that the West has experienced. They believe, especially in Africa, that this may stall Africa’s rise out of poverty. These opinions are thoroughly expressed in two op-eds authored separately by the ex-vice-president of Nigeria, Prof. Yemi Osinbajo in an  Economist op-ed  (paywall) , and the president of Uganda, his excellency Yoweri K. Museveni, in a  Wall Street Journal op-ed  (paywall). This could be a whole debate on its own.

From a technological perspective, the energy transition seems to be equated with transitioning entirely from fossil fuels to renewable energy sources through novel technologies. While this is an ideal scenario for the betterment of the planet, the reality could involve drastically reducing fossil fuels and significantly increasing renewable fuels. Most renewable energy technologies are not fully mature and do not yet match fossil fuels in terms of societal integration. Silicon-based solar technology, the most established, has an efficiency of 26% and a lifespan of 20-25 years. Many other solar technologies, such as organic, dye-sensitized, and perovskite solar cells, are still under investigation and not yet market-ready due to their low efficiency and instability.

The biggest challenge to solar technology is that it cannot be a standalone solution; it needs complementary storage technologies like batteries to be fully accessible 24/7. Solar installations also require significant land, often in farming communities. Mining for materials to sustain solar and battery technologies opens a new set of challenges. There are many ramifications in terms of challenges that solar power or panels face during their lifespan, including disposal or recycling of this technology.

“A collective, well-coordinated effort can help us achieve our renewable energy and climate goals, creating a more sustainable and equitable energy landscape for future generations.”  Nutifafa Yao Doumon Assistant Professor and Virginia S. & Philip L. Walker Jr.  Faculty Fellow in the College of Earth and Mineral Sciences

What opportunities exist to make the transition more just and sustainable?

We have many opportunities and lessons from our past actions and inactions to make the transition more just and sustainable. Deploying some of the renewable technologies can be region-, location-, or geography-dependent. For example, solar energy is highly efficient in hot climates, predominantly found in the global south, while wind energy is more suitable for regions with high natural wind speeds.

Global cooperation and collective action are crucial for investing in renewable energy infrastructures and driving technology innovation and R&D geared toward making the transition just and sustainable. Our past actions have shown that raw materials and minerals mining and processing can negatively impact deprived, rural, local, or Indigenous communities. This past knowledge gives us an opportunity to do better this time. However, this will require the involvement of communities themselves, the right policies, governments, and political will.

How could these opportunities impact researchers' work?

These opportunities could open the door for research diversification and inter-/multi-disciplinary team collaboration. Investing money and time into innovation and R&D of new technology for renewable energy harvesting, conversion, and storage is vital. It is also crucial to ensure that communities appreciate the efforts and technologies that could potentially replace or be in the mix with existing fossil fuel-based assets and gadgets.

Therefore, I see a considerable impact not only on how the community of researchers should approach research from an interdisciplinary and community-engagement perspective but also on how renewable technology companies and industries approach their R&D portfolios. Topical research must also involve pre- and post-technology development and deployment assessment. Researchers are becoming increasingly aware of their research’s carbon footprint, developing new and efficient work methods, and embedding sustainability in their processes.

What could go wrong if we are not mindful of these challenges?

The danger here is friction between the global south and global north and imminent fracture on the geopolitical front. Global warming and climate change are universal threats and must be confronted together. Working together voluntarily and collectively as equals, knowing our strengths and weaknesses, is the right way forward. Otherwise, countries in the global south may resist the push toward a green energy transition, becoming immediate and/or future polluters of the planet, which contrasts with the desired outcome.

On the technological side, though it may be insignificant, there is a risk that we may fail to fully realize the technological dream and deploy all renewable energy sources in time to mitigate global warming. Finally, in the quest for these technologies, we may end up worsening environmental pollution levels, health hazards, living standards, and well-being of different communities globally.

What could go right if we address these challenges?

Almost everything, from solving energy crises in major geographical locations through global cooperation and collective action to protecting our collective environment through equal treatment, climate justice, and mitigating global warming. A collective, well-coordinated effort can help us achieve our renewable energy and climate goals, creating a more sustainable and equitable energy landscape for future generations.

Nutifafa Yao Doumon  is an assistant professor and Virginia S. & Philip L. Walker Jr. Faculty Fellow in the College of Earth and Mineral Sciences. With a background in physics, nanoscience, and leadership, his main interest focuses on materials for solar technologies. He conducts research into Optoelectronic and photovoltaic devices, looking at stability testing and chemical characterization of the active layer, indoor/outdoor testing of organic/perovskite photovoltaic modules, and characterization of degradation and failure modes/mechanisms.

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Should we worry about wasting renewable energy? Here’s why ‘spilling’ excess power is expected – and efficient

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Senior Research Associate, Renewable Energy & Energy Systems Analyst, UNSW Sydney

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In Australia’s electricity system, more and more energy from sunlight and wind is being “spilled” – or not converted to electricity.

In the last year, the amount of renewable energy spilled was roughly equivalent to the annual consumption of 750,000 typical households, or three months of consumption for the state of South Australia. Some have attributed these dynamics as being driven by a “ solar power glut ”.

At face value, this seems like a terrible waste of renewable energy, even more so in the face of a slump in rate of renewable energy growth and the pressing need to reduce emissions.

But the story is more complex. Such spillage, also known as curtailment, is also an expected and efficient feature of renewable energy systems.

What is ‘spilled energy’?

The energy market operator defines spilled energy as “energy from variable renewable energy resources that could be generated but is unable to be delivered”.

It represents energy that could have been converted to electricity, but wasn’t. The unconverted energy simply remains in the environment.

It is typically broken down into two categories, based on the cause of the spillage. Firstly, there is curtailment based on the operation of the transmission network. Power generation can be constrained due to operation limits or congestion in the network, resulting in spilled energy. This can occur when there are too many generators in the same area, trying to send power through the same transmission line. Secondly, a generator may reduce output due to low market prices, which the operator calls “economic spill” also known as “economic curtailment”.

The amount of this curtailment has been growing in recent years. In the last 12 months this curtailed energy represents more than 8.5% of the total potential. This varies considerably by region, with as much 12% spilled in Victoria in the last year.

research on renewable energy

Why is spillage efficient?

It doesn’t make economic sense to try and utilise every renewable electron. The cost to store, transmit and utilise every single watt of power from a renewable energy source would be exorbitant.

For example, we don’t build additional highway lanes to accommodate traffic for the busiest single hour on an Easter weekend. In a similar way, it doesn’t make sense to build transmission to ensure every single watt is transferred. This would be expensive and result in severely underused infrastucture. For the more common weather conditions – when it isn’t blowing a gale or in the middle of a sunny day – the network would be considerably oversized.

Studies that model energy systems primarily powered by renewables commonly find it is more economically efficient to build additional renewable capacity, and spill some generation when there is an abundance of supply above demand.

The Integrated System Plan, a roadmap for the electricity system prepared by Australia’s energy market operator, projects an increase of renewable energy curtailment in the best case scenario. Approximately 20% of renewable generation is expected to be spilled by 2050. This is roughly equivalent to the current consumption of the state of New South Wales.

On one level, this shouldn’t be surprising.

Households often buy larger solar PV system relative to their consumption.

And it’s now common practice to install solar panels in excess of the capacity of the inverter to convert the power and send it to the home or grid. This is usually done to maximise use of the inverter and exports across a limited connection.

These two examples are broadly analogous to what happens on the grid, with economic curtailment and transmission-based curtailment.

research on renewable energy

Are current levels efficient?

At a system-wide level, current levels of spillage are above what was expected. The integrated system plan suggests curtailment rates of around 5% might be considered appropriate for today’s penetration of renewable energy, compared with the today’s level of around 8.5%. This difference relates to how things are working in the real world, including how rules around accessing transmission capacity currently work.

A recent discussion paper from the Australian Energy Market Commission highlights this mismatch, and suggest that “in the absence of reform, actual levels of curtailment are likely to exceed the levels forecast in the ISP”, pointing to issues with the current arrangements for generators accessing transmission capacity.

They imply the current system is resulting in higher than expected congestion, leading to increased costs for consumers and potentially unnecessary transmission builds. Managing transmission access remains a challenge for developers building new renewables projects.

Australia’s fleet of coal-fired power generators is another key driver of economic curtailment. While coal generators are more flexible than commonly understood, they have their limits. Specifically, they can only reduce operation down so far, to so-called minimum generation levels. Below these levels, they have to turn off completely, which is a costly exercise.

Coal generators therefore prefer to continue to generate, even at negative prices, rather than completely shut down. As a consequence, and to avoid paying to generate, renewable energy is spilled, rather than coal shutdown. In the context of the energy transition and the need to reduce emissions we actually have a glut of coal, rather than renewables.

research on renewable energy

Where to next?

The curtailment story is complex. On the one hand it is an expected phenomenon, and one we should get used to as we transition more toward a renewable-dominated electricity system. We should, however, be encouraging consumers to make use of this abundance of renewable generation where possible, such as by shifting their useage to the middle of the day .

On the other hand, some of these levels of curtailment are beyond what is expected. That’s in part because we still have an excess of coal power. We separately need to ensure grid congestion is properly managed, and access arrangements are reformed, to prevent unnecessary costs to consumers and renewable developers alike.

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Since 2008, hundreds of thousands of solar panels have popped up across the country as an increasing number of Americans choose to power their daily lives with the sun’s energy. Thanks in part to  Solar Energy Technologies Office (SETO) investments , the cost of going solar goes down every year. You may be considering the option of adding a solar energy system to your home’s roof or finding another way to harness the sun’s energy. While there’s no one-size-fits-all solar solution, here are some resources that can help you figure out what’s best for you. Consider these questions before you go solar.

See the Spanish version here. Vea la versión en español aquí .

How does solar work?

There are two primary technologies that can harness the sun’s power and turn it into electricity. The first is the one you’re likely most familiar with – photovoltaics, or PV. These are the panels you’ve seen on rooftops or in fields. When the sun shines onto a solar panel, photons from the sunlight are absorbed by the cells in the panel, which creates an electric field across the layers and causes electricity to flow.  Learn more about how PV works .

The second technology is concentrating solar power, or CSP. It is used primarily in very large power plants and is not appropriate for residential use. This technology uses mirrors to reflect and concentrate sunlight onto receivers that collect solar energy and convert it to heat, which can then be used to produce electricity.  Learn more about how CSP works .

Is my home suitable for solar panels?

Solar panels are built to work in all climates, but in some cases, rooftops may not be suitable for solar systems due to age or tree cover. If there are trees near your home that create excessive shade on your roof, rooftop panels may not be the most ideal option. The size, shape, and slope of your roof are also important factors to consider. Typically, solar panels perform best on south-facing roofs with a slope between 15 and 40 degrees, though other roofs may be suitable too. You should also consider the age of your roof and how long until it will need replacement .

If a solar professional determines that your roof is not suitable for solar, or you don’t own your home, you can still benefit from solar energy. Community solar allows multiple people to benefit from a single, shared solar array that can be installed on- or off-site. Costs associated with purchasing and installing a solar energy system are divided among all of the participants, who are able to buy into the shared system at a level that best fits their budget.  Learn more about community solar .

Those interested in community solar can take advantage of a tool from SETO awardee EnergySage. The company's  Community Solar Marketplace  aggregates the many available options in one place and standardizes project information, allowing interested consumers to easily locate and compare multiple community solar projects in their area.

How do I start the process of going solar?

There are a number of  mapping services  that have been developed by SETO awardees that will help you determine if your roof is suitable for solar and can even provide you with quotes from pre-screened solar providers in your area. In addition to those resources, an internet search can help you find local companies that install solar panels. Because you will likely have many options to choose from, it’s important to thoroughly read reviews of solar companies to make sure you are selecting the best fit for you and your home.

Solar co-ops and  Solarize campaigns  can also help you start the process of going solar. These programs work by allowing groups of homeowners to work together to collectively negotiate rates, select an installer, and create additional community interest in solar through a limited-time offer to join the campaign. Ultimately, as the number of residents who participate in the program increase, the cost of the installations will decrease.

Can I install solar myself?

Right now, the best way to install solar is through a qualified professional who holds a certification to do so and works with high-quality solar panels. The industry-standard certification is awarded through the North American Board of Certified Energy Practitioners (NABCEP).

How much power can I generate with solar?

The National Renewable Energy Laboratory (NREL) developed a tool called  PVWatts  for this purpose. It estimates the energy production and cost of energy of grid-connected PV energy systems for any address in the world. It allows homeowners, small building owners, installers, and manufacturers to easily develop estimates of the performance of potential PV installations, and can even compare solar’s cost to utility bills. These tools are great for getting started, but make sure to work with a solar installer for a custom estimate of how much power your solar energy system is likely to generate.

For its analyses, NREL uses an average system size of 7.15 kilowatts direct-current with a 3-11 kilowatt range. According to SETO awardee EnergySage, that’s enough power to meet all the energy needs for an average home in Austin, Texas.

Will I save money by going solar?

The amount of money you can save with solar depends upon how much electricity you consume, the size of your solar energy system, if you choose to buy or lease your system, and how much power it is able to generate given the direction your roof faces and how much sunlight hits it. Your savings also depend on the electricity rates set by your utility and how much the utility will compensate you for the excess solar energy you send back to the grid. Check the  National Utility Rate Database  to see current electricity rates in your area.

In  some cities around the country , solar is already cost competitive with the electricity sold by your local utility. The cost of going solar has  dropped every year since 2009 , a trend researchers expect to continue. Not only are the prices of panels dropping, so are the costs associated with installation, such as permitting and inspection—also known as “ soft costs .” All of SETO's funding programs are working toward improving the affordability of solar and making it easier for consumers to choose solar.

It should also be noted that energy efficiency upgrades complement solar energy economically. By using  Energy Star  appliances and other products in your home, you’ll need less solar energy to power your home.

Can I get financing for solar?

Consumers have different financial options to select from when deciding to go solar. In general, a purchased solar system can be installed at a lower total cost than system installed using a solar loan, lease, or power purchase agreement (PPA).

If you prefer to buy your solar energy system, solar loans can lower the up-front costs of the system. In most cases, monthly loan payments are smaller than a typical energy bill, which will help you save money from the start. Solar loans function the same way as home improvement loans, and some jurisdictions will offer subsidized solar energy loans with below-market interest rates, making solar even more affordable. New homeowners can add solar as part of their mortgage with loans available through the  Federal Housing Administration  and  Fannie Mae , which allow borrowers to include financing for home improvements in the home’s purchase price. Buying a solar energy system makes you eligible for the Solar Investment Tax Credit, or ITC. In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. The tax credit expires starting in 2024 unless Congress renews it.  Learn more about the ITC .

Solar leases and PPAs allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated. Consumers enter into agreements that allow them to have lower electricity bills without monthly loan payments. In many cases, that means putting no money down to go solar. Solar leases entail fixed monthly payments that are calculated using the estimated amount of electricity the system will produce. With a solar PPA, consumers agree to purchase the power generated by the system at a set price per kilowatt-hour of electricity produced. With both of these options, though, you are not entitled to tax benefits since you don’t own the solar energy system.

Navigating the landscape of solar financing can be difficult. The Clean Energy States Alliance released a guide to help homeowners understand their options, explaining the advantages and disadvantages of each.  Download the guide .

How can I find state incentives and tax breaks that will help me go solar?

DOE created the Homeowner's Guide to the Federal Tax Credit for Solar Photovoltaics to provide an overview of the federal investment tax credit for those interested in residential solar photovoltaics, or PV. It does not constitute professional tax advice or other professional financial guidance. And it should not be used as the only source of information when making purchasing decisions, investment decisions, or tax decisions, or when executing other binding agreements.

DSIRE  is the most comprehensive source of information on incentives and policies that support renewable energy in the United States. It is operated by the N.C. Clean Energy Technology Center at N.C. State University and was funded by the U.S. Department of Energy. By entering your zip code, DSIRE provides you with a comprehensive list of financial incentives and regulatory policies that apply to your home. Additionally, an experienced local installer should be able to assist you in claiming any state and local incentives, as well as the ITC. 

If you want to learn more about state and federal solar policies regarding incentives and tax breaks, the Solar Power in Your Community guidebook (PDF) has a section—Appendix A on page 87—that explains it in detail.

How will solar impact the resale value of my home?

Buying a solar energy system will likely increase your home’s value. A  recent study  found that solar panels are viewed as upgrades, just like a renovated kitchen or a finished basement, and home buyers across the country have been willing to pay a premium of about $15,000 for a home with an average-sized solar array. Additionally, there is evidence homes with solar panels sell faster than those without. In 2008, California homes with energy efficient features and PV were found to sell faster than homes that consume more energy. Keep in mind, these studies focused on homeowner-owned solar arrays.

When it comes to third-party owned (TPO) systems,  data shows  that while they add some complexity to the real estate transaction, the overall impacts in terms of sales price, time on market, agreement transfers, and customer satisfaction are mostly neutral. In some cases, TPO systems can even add value.

The  PV Value®  tool is helpful for both home sellers and homebuyers. It calculates the energy production value for a PV system and is compliant with Uniform Standards of Professional Appraisal Practice and has been endorsed by the Appraisal Institute for the income approach method. Make sure your appraiser uses this tool to get the most accurate estimate of your PV system’s value.

I have a Homeowners' Association (HOA). Can I still install solar panels on my house?

In most cases, yes, you can install solar panels on your home if it is governed by an HOA, though you will likely have to submit a request. Many states and territories have enacted solar access laws, which prevent HOAs from prohibiting or unreasonably restricting solar installations. Solar access laws vary by state, so if you’re planning to install solar and have an HOA, it’s important to know the laws that apply to you.  Learn more about HOAs and solar energy .

What is net metering and how could it impact my solar installation?

Net metering is an arrangement between solar energy system owners and utilities in which the system owners are compensated for any solar power generation that is exported to the electricity grid. The name derives from the 1990s, when the electric meter simply ran backwards when power was being exported, but it is rarely that simple today. Whether or not your solar system qualifies for net metering payments depends on policies and practices in your state and electric utility. Your local electric utility would be a good place to source information on net metering in your service area. When researching net metering policies and practices in your service area, there are some basic questions to consider, such as availability in your service area, eligible system size and customer type, rates, and design of bill credits.

Can I go solar without changing the aesthetics of my home?

Yes! Building-integrated photovoltaics, or BIPV, allows homeowners to alter the appearance of their solar panels so they match their surroundings. SETO has funded projects that commercialized technology enabling homeowners to add a graphical layer to their solar panels so they blend in with the roof. Learn more about BIPV .

I have heard a lot about solar plus storage. What is that and do I need it?

Storage refers to energy storage, most often in the form of batteries. Installing energy storage with a solar system can help utilize the power generated when it’s needed most, regardless of whether it’s sunny outside at the time. Storage allows you to save that energy and use it later in the day, like when you turn the heat on at night or run the dishwasher after dinner or even when the power goes out. Ask your solar installer if they offer battery storage options and learn more about storing solar energy .

Is solar safe?

Absolutely! All solar panels meet international inspection and testing standards, and a qualified installer will install them to meet local building, fire, and electrical codes. Also, your solar energy system will undergo a thorough inspection from a certified electrician as part of the installation process. 

A working PV panel has a strong encapsulant that prevents chemicals from leaching, similar to how defroster elements are sealed in a car windshield. Occasionally, a solar panel may break due to weather or other events. According to the International Energy Agency Photovoltaic Power Systems Technology Collaboration Program , any lead and cadmium exposure from broken solar panels in residential, commercial, and utility-scale systems would be below the acceptable limit set by the U.S. Environmental Protection Agency for soil, air, and groundwater.

What are the environmental benefits of solar?

Using solar power instead of conventional forms of energy reduces the amount of carbon and other pollutants that are emitted into the environment. Reducing the amount of carbon in our atmosphere translates into less pollution and cleaner air and water.

What should I do if I believe a solar company is misrepresenting itself or its products?

No one should feel they are being taken advantage of while pursuing clean energy. At the federal level, you can contact the Federal Trade Commission to report fraud, scams, and bad business practices. At the state level, laws vary depending on where you live. You can contact one of the consumer protection offices within your state or territory to see how they can help, too.

Where can I find other resources to learn about going solar?

Residential Consumer Guide to Solar Power  – In an effort to make going solar as effortless and streamlined as possible, the Solar Energy Industries Association developed this guide to inform potential solar customers about the financing options available, contracting terms to be aware of, and other useful tips.

A Homeowner’s Guide to Solar Financing: Leases, Loans and PPAs  – This guide from the Clean Energy States Alliance helps homeowners navigate the complex landscape of residential solar system financing. It describes three popular residential solar financing choices and explains the advantages and disadvantages of each, as well as how they compare to a direct cash purchase.

Solar PV Project Financing: Regulatory and Legislative Challenges for Third-Party PPA System Owners – Third-party owned solar arrays allow a developer to build and own a PV system on a customer’s property and sell the power back to the customer. While this can eliminate many of the up-front costs of going solar, third-party electricity sales face regulatory and legislative challenges in some states and jurisdictions. This report details the challenges and explains alternatives.

A Beautiful Day in the Neighborhood: Encouraging Solar Development through Community Association Policies and Processes  – This guide, written for association boards of directors and architectural review committees, discusses the advantages of solar energy and examines the elements of state solar rights provisions designed to protect homeowner access to these benefits. It then presents a number of recommendations associations can use to help bring solar to their communities.

Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes  – This report from Lawrence Berkeley National Laboratory finds that home buyers are consistently willing to pay premiums of approximately $15,000 for homes that have solar across various states, housing and PV markets, and home types.

SEIA Residential Lease Disclosure Form  – This form for solar energy leasing companies will help consumers better understand the terms and costs of their solar leases. The form is also designed to help consumers choose among competitive providers.

Residential Solar-Adopter Income and Demographic Trends – This report from Lawrence Berkeley National Laboratory finds that while solar adoption skews toward high-income households, low- and moderate-income households are also adopting, and that the rooftop solar market is becoming more equitable over time.

Learn more about the  solar office's accomplishments .

Learn More About How to Go Solar

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  • Visit our Solar Energy Research Database .
  • Learn more about SETO's solar energy research .

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Rhode Island Energy President Greg Cornett and URI President Marc Parlange sign an agreement to collaborate on future research in renewable energy, sustainability and energy alternatives on Friday during a ceremony in the Fascitelli Center for Advanced Engineering on URI’s Kingston Campus. (URI Photo)

URI, Rhode Island Energy partner to propel research on renewable energy

  • By Michaela Erin Crimmins URI Communications
  • Jun 20, 2024

KINGSTON — University of Rhode Island President Marc Parlange and Greg Cornett, president of Rhode Island Energy, earlier this month announced the launch of a strategic partnership that will propel important research in renewable energy, energy alternatives, and sustainability.

The partnership brings together researchers at URI and the PPL Corporation, a Pennsylvania-based energy company composed of Rhode Island Energy, LG&E, Kentucky Utilities, and PPL Electric Utilities, which serves 3.5 million customers in four states.

“This new industry-university collaboration will enable URI and Rhode Island Energy to advance and accelerate important work to help realize sustainability goals,” said Parlange. “The joint projects created by this agreement will address the critical need to develop innovative solutions to support transition to renewable energy in Rhode Island while also contributing to economic development across our state.”

“We are proud to announce this partnership between Rhode Island Energy and URI as it has such an important impact on the economic development of Rhode Island beyond supporting research endeavors,” said Cornett. “I am especially glad to see it provides opportunities for students to participate in these activities and gain a competitive advantage in ocean renewable energy.”

As part of the agreement, Rhode Island Energy has launched the $100,000 Brighter Futures scholarship at URI that will support URI students passionate about clean energy, sustainability, decarbonization, and grid reliability. Research collaborations will also provide opportunities for student participation, enabling graduates to join the fast-growing sector of ocean renewable energy.

For PPL, the partnership with URI is among numerous higher-education collaborations it has developed to further research initiatives to reach its sustainability goal of achieving net-zero carbon emissions by 2050. Its research and development priorities include renewable integration, carbon capture and sequestration, geothermal, long duration energy storage, advanced nuclear technologies, distributed energy resources and next generation smart grids.

Rhode Island Energy and PPL selected URI as a strategic partner to address research in offshore renewable energy, climate change, grid decarbonization, nuclear technology advancement and carbon capture, among others.

The energy company has also worked with URI on the preparation and submission of several National Science Foundation research grants. URI faculty in ocean engineering and the Graduate School of Oceanography recently received an award of $250,000 — with the University of Kentucky and PPL as partners — to study the possibility of carbon capture in the ocean.

In its mission to support the state’s robust blue economy, the URI College of Engineering has formed numerous research collaborations, including a recent $2.5 million award from Revolution Wind, a partnership between Orsted and Eversource to build a 704-megawatt offshore wind farm serving Rhode Island and Connecticut. The award supports research to monitor lost or abandoned fishing gear and ecosystem diversity during construction and operation of wind farms.

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BOEM Advances Offshore Wind Near U.S. Territories

Sara McPherson Phone (202) 341-9827

The Bureau of Ocean Energy Management (BOEM) is seeking ideas for baseline environmental and socioeconomic studies to inform BOEM’s decisions on potential offshore wind energy activities in the U.S. territories, as well as information on entities in the U.S. territories that have the capabilities, expertise, and interest in carrying out environmental monitoring and conducting studies.  

“BOEM develops, funds, and manages rigorous scientific research to ensure our decisions are informed by the best science and Indigenous knowledge available,” said Dr. Rodney Cluck , Chief of BOEM’s Environmental Studies Program. “Additional research focused on the U.S. territories will increase our understanding of these important areas, and the potential impacts of offshore wind energy development on their residents and resources.”  

Today’s announcement follows the release of a new five-year plan for offshore wind leasing announced by Secretary Haaland in April. 

Since the start of the Biden-Harris administration, the Department has approved the nation's first eight commercial scale offshore wind projects, held four offshore wind lease auctions – including a record-breaking sale offshore New York and the first-ever sales offshore the Pacific and Gulf Coasts, and advanced the process to establish additional Wind Energy Areas in Oregon, the Gulf of Maine and the Central Atlantic. Thus far, the Department has approved more than 10 gigawatts of clean energy from offshore wind projects — enough to power nearly 4 million homes. The Department has also taken steps to grow a sustainable offshore wind industry by encouraging the use of project labor agreements, strengthening workforce training, bolstering a domestic supply chain, and through enhanced engagement with Tribes, fisheries, underserved communities and ocean users.  

To formally request ideas for baseline environmental and socioeconomic studies, the bureau has issued a request for Letters of Interest (LOI). BOEM is also issuing a Request for Information (RFI) to determine which entities in the U.S. territories have capabilities, expertise, and interest in performing environmental monitoring and studies in the U.S. territories.  

The deadline for responding to the LOI and RFI is August 23, 2024 .  

BOEM is responsible for managing the development of U.S. Outer Continental Shelf (OCS) energy, mineral, and geological resources in an environmentally and economically responsible way. A critical component of BOEM’s mission is protecting the environment while overseeing the development of OCS resources. The bureau’s geographical responsibility increased substantially with the passage of the Inflation Reduction Act (IRA) of 2022, which expanded the definition of the OCS and directed BOEM to consult with governments of the U.S. territories on the suitability and feasibility of offshore wind energy development. BOEM is using funds provided to the Department of the Interior by the IRA for the baseline environmental and socioeconomic studies in support of understanding the potential impacts from offshore wind energy development in the U.S. territories.

BOEM’s Environmental Studies Program  develops, funds, and manages rigorous scientific research specifically to inform policy decisions on the development of energy, mineral, and geological resources on the OCS, as required by law. This environmental and social science research is designed to provide BOEM the necessary information to assess, predict, monitor, and manage potential environmental impacts of the activities it authorizes.

The Department of the Interior’s Bureau of Ocean Energy Management (BOEM) manages development of U.S. Outer Continental Shelf (OCS) energy, mineral, and geological resources in an environmentally and economically responsible way.

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