It’s hard to say that a recession will be good for anything. Indeed, that seems like some form of oxymoron. Yet, the world’s present situation is somewhat unique – we just might have the answer to our troubles before those troubles set in. Make sense? Perhaps not. Here’s the deal: One major contributing factor to zipped-up wallets and rampant For Sale signs blowing in the wind has been rising energy prices. So it follows that curbing those high energy costs would have a sizable impact on our economic woes. Furthermore, one industry that continually shows promise and innovation, plus the ability to bring energy prices down to bare minimums, is the renewable energy industry with, arguably, solar power at its helm.

But what does a recession mean for solar power? If I were a better economist I could throw market indicators and trends at you and explicate the many decimal points in your daily paper’s business section. Alas, I am no such thing. Thankfully, however, I do not need to be an expert to see the potential for solar and other renewables in the upcoming recession. The table is set.

Solar is already growing rapidly every year, and a big obstacle to even faster expansion has been lackluster, nearly-disappeared federal tax credits. But now those have been renewed, including the removal of the $2,000 cap on residential systems. That is like taking a door that is half open and throwing it open all the way. Starting January 1, 2009, solar will get a whole lot more affordable. Now, perhaps, the feds could initiate legislation to guarantee low-interest renewable energy loans for solar and other clean systems rather than guarantee some bumbling banker’s salary.

An enlightening case study into solar’s potential to thrive during the recession will occur, I believe, in California, which is facing a nearly $15 billion shortfall in the upcoming year. California already has the world’s third largest solar market, thanks to a number of progressive solar initiatives. Combine those with federal credits and you come up with affordable solar energy systems, some of the most affordable in the nation. An even higher interest in solar power will only create more quality jobs and ever-increasing energy savings for consumers.

Solar has long been a very grassroots industry, supported by forward-thinking businessmen and eco-minded homeowners. This mentality of change from the bottom up may just be the key to pulling California and the nation out of a recession. Especially now that we have the top on our side. Progress in solar power inherently keeps the gains close to home…not overseas.

It’s unlikely that solar can solve our problems alone. Wind, tidal, geothermal, and others will all need to play a part. If the economy completely crashes and banks close and chaos becomes the new consumer, then so be it. But while we have some life left in our wallets, we need to be focusing on solar and renewable power. Not only can it help in the short term but it is a long-term solution.

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Posted on October 21st in Solar Politics by Dan.