| Solar energy has always been a concept that | | | | not guarantee it will receive funding from one year to |
| possesses enormous potential. Most people realize | | | | the next) Limited funding yields limited progress and |
| solar energy is viable and not "science-fiction wishful | | | | that is why solar panels and solar energy products do |
| thinking". Solar rays are not difficult to harness and | | | | not experience the strong growth most assume it |
| they can be turned into energy rather easily. | | | | would. |
| Considering the current energy crisis the world is | | | | Yet, solar energy systems could explode in popularity |
| facing, many wonder why solar energy has not made | | | | overnight if one minor change occurs: market |
| the inroads many predicted. Why is this? | | | | demand increases. |
| Troubles for the Industry | | | | Issues of the Market |
| One of the main reasons solar energy has not made | | | | If demand in the market were to increase |
| huge inroads despite the energy crisis centers on the | | | | significantly then the solar energy industry would be |
| difficulty for companies to recoup investment capital. | | | | revolutionized overnight. The companies producing |
| Simply put, no engineer can design a solar heating | | | | solar energy panels would receive an influx of capital |
| panel on paper that will be without flaws and errors. | | | | it had never experienced before. This would lead to |
| The panels have to be built, installed, and tested. The | | | | more solar energy products and concepts. This would |
| results then must be monitored and any errors and | | | | provide solar energy with a huge chunk of the |
| flaws must be modified. Then, the process must be | | | | energy market. Considering the benefits of solar |
| repeated until a workable solar panel has been | | | | energy in light of concerns about global warming, why |
| developed. Afterwards, the panels must be produced | | | | has this chain of events not happened yet? |
| and marketed. The final price of the solar panels | | | | Honestly, it is not easy to convince millions of people |
| must then be able to recoup the costs associated | | | | to switch to solar energy for homes. People are used |
| with the process. However, making many sales is not | | | | to their traditional forms of energy and, in general, |
| easy and that makes it difficult for investors to | | | | may be skeptical of anything that is new or untested. |
| reduce capital. | | | | Also, the costs associated with installing solar panels |
| Investment Issues | | | | in one's home may be cost prohibitive. That is, there |
| Solar energy companies often rely on private | | | | are those who may be interested in solar panels but |
| investments and venture capital. That is, people | | | | the cost of purchasing and installing the panels may |
| invest money into the research and development of | | | | not be financially viable. |
| solar panels with the hopes of receiving profits via | | | | Once again, all of this could change overnight. The |
| their solar energy stocks. If a return on the | | | | energy market is hardly a predictable one. Solar |
| investment is not forthcoming then it becomes | | | | energy may only be a small part of the market now, |
| difficult to acquire further funding. (Similarly, if the | | | | but all that could change if a new innovation is |
| company is relying upon government grants it can | | | | developed and prices come down. |