Solar energy has the most excellent chance of meeting the world’s longer-term energy needs and reducing carbon dioxide emissions. However, fully realizing this potential will require a greater focus on developing lower-cost technologies and an efficient policy for deployment in a thorough new report on the Future of Solar Energy published today by the MIT Energy Initiative (MITEI).
“Our objective has been to assess solar energy’s current and potential competitive position and to identify changes in U.S. government policies that could more efficiently and effectively support its massive deployment over the long-term, which we view as necessary,” said Robert Armstrong, Director of MITEI.
Chair of the study, Richard Schmalensee, Howard W. Johnson Professor of Economics and Management Emeritus at the MIT Sloan School of Management and Economics, said, “What the study shows is that our focus needs to shift toward new technologies and policies that have the potential to make solar a compelling economic option.”
The study group will present their findings to members of Congress and top officials from the administration during this week’s session on the outskirts of Washington, D.C.
The Future of Solar Energy analyzes the current commercial, technical, and policy aspects of solar energy. It offers recommendations to policymakers on the most effective support from the federal and state levels in research and development, technology demonstration, and solar energy deployment.
The central theme of the study is the necessity of preparing our electrical systems, both technologically and from a regulatory point of view, to enable the massive expansion of solar power that fluctuates unpredictably during the day. To address this, the study focuses on the necessity of federal support for research and development to develop low-cost, large-scale electrical storage technology.
The study suggests that current subsidies for state and federal governments designed to stimulate investment in solar systems must be reviewed to improve their effectiveness and efficiency while placing more focus on rewarding the production of solar electricity.
The group also suggests that the state Renewable Portfolio Standards, intended to help increase electricity production using renewable sources and be integrated into a unified national program to reduce the costs of meeting established requirements by allowing unlimited interstate trade of credits.
The report concludes by pointing at the necessity of an innovative and energizing strategy for technology development, including federal research and development investments focused on developing advanced technologies and systems with the potential for transformational system cost savings. “The MIT, “Future of …” studies” are multidisciplinary studies that analyze the role different energy sources could contribute in meeting the energy demands in the face of carbon dioxide emission limitations. These reports are comprehensive and composed by multidisciplinary teams of MIT researchers. An eminent external advisory committee guides the research.