Executive Summary
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The US and Canada are developing
renewable energy sources to decrease their dependence on
fossil fuels, develop self sufficiency in power generation,
and decrease the pollution that results from the combustion
of fossil fuels. Consumers in the US and Canada have become
more open to the use of solar energy due to its eco-friendly
nature. To promote investment in the solar energy sector,
the US government introduced the renewable portfolio
standards, and the net metering system, while the Canadian
government had introduced the net metering system. In
addition, tax rebates, financing systems, and an array of
supporting regulations have also been introduced. |
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The governmental efforts seem to be paying
off as the installation of solar energy systems, which was
earlier limited to the off grid sector, is expanding to the grid
connected sector. The policy makers in both the US and Canada
were determined to meet the future growth in power demand
through increased production of renewable energy. Canada had a
competitive advantage due to it being an early adopter market
for new technologies and low photovoltaic production cost when
compared to other major photovoltaic producing nations such as
Japan and Germany.
The demand for solar energy is influenced by a number of factors
such as the cost of generating solar power compared to
conventional power, the sustainability of power supply, and the
capability of providing electricity in remote areas due to its
decentralized nature. People should be made aware about the
advantages of solar energy and any misconceptions they have
about it should be removed. Solar energy supply depends on a
number of factors such as the investment made in solar energy
systems, which in turn, depends on the payback period.
Determining the right location for the installation of the solar
energy system is essential for optimum performance as solar
radiation varies from region to region.
However, there are a few challenges in the solar energy
industry. In the US, the challenges are in the form of a
conglomeration of regional markets and the lack of a
well-developed structure. Lack of standardization of material to
be used for the production of photovoltaics affects the quality
and cost structure of the solar energy systems available in the
market. It was reported that a majority of the Canadian
population felt that the government measures to support
development of the solar energy industry were inadequate. A
coordinated effort by the government and the private sector
should be implemented, supported by adequate funding to develop
the solar energy industry. A mechanism should be developed for
testing solar products before they are released into the market.
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