What can Microsoft, Intel, Dell, and others teach the solar industry? Many think the solar industry could learn a lot from the chip world. It all goes back to what is known as Moore’s Law, made famous by Intel co-founder Gordon Moore. Moore’s Law states that as technology improvements advance, the price of computer chips would drop and performance would go up. His statement has so far been proven as your ipod has more storage than my first computer. Will this happen to photovoltaic panels? The idea isn’t that far-fetched. “A solar cell is just a big specialized chip, so everything we’ve learned about making chips applies,” said Paul Saffo, an engineering professor at Stanford (CNET).

Silicon Valley is gearing up for what many think will be an energy revolution. “This is the biggest market Silicon Valley has ever looked at… For entrepreneurs, energy is going to be cool for the next 30 years,” said T. J. Rogers of Cypress Semiconductor (CNET). However, questions regarding the validity of these statements are everywhere. Number one on the list is consumer behavior. Will consumers want to switch to solar energy? That could mean even throwing out the old water heaters for a solar heating system. It’s not like buying a computer and plugging it in. It’s a complicated system that has several large components. How will government actions influence consumer behavior? Federal tax breaks have, starting in 2009, been lost as they were not renewed in the latest Energy Act. Another question mark on the page involves reliability. Current systems are plenty durable, but the panels of the future are sure to be different. When we reach that cheap and efficient technology, will it be effective enough? Will they stand up to abuse and last? These and others are sure to be answered as investors are opening up their wallets to the idea of Solar Valley.

We all hope we can enter the solar age, where energy is as widely produced as information is shared today, and a solar infrastructure explodes as quickly as the internet. The fact of the matter is that this time the stakes are higher. Let’s hope the Silicon minds can find the Solar solution.

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The senate keeps forgetting to include important tax breaks for renewable energy projects. Last year, senate passed the Energy Act which raised the bar on miles per gallon, and other household efficiency issues. It seems that we’re still stuck with the idea that it’s okay to harm the environment… less. Industry proponents say that the failure to extend tax credits for renewable energy systems installation will dramatically slow down the growth of the wind and solar industries. To add insult to injury, they extended tax breaks to oil companies instead. This adjustment was one made by the senate under the threat of a veto.

The growth of the renewable energies industry is seen as an important avenue to slowing global warming and relieving world citizens from oil dependency. It’s also viewed as an important cure to the energy crisis caused by electricity demands as individual households invest in their own energy source. Decentralization of electricity is a movement that will surely suffer as homeowners will have much less incentive to install wind and solar energy systems. In addition, recent studies have shown that real estate values and occupancy rates are greatly improved through green architecture. The injured housing market that eagerly awaits a boost from renewable energies will have to get it before the end of 2008 when the tax credit expires.

Though the rest of the Energy Act is a good step in the right direction, it’s hard to see Big Oil slap down the rising champion, Renewable Energy (and thanks to you all for permitting the sports analogy). With presidential elections forth coming, we’ll be holding our breath to see how a new administration supports a renewable economy.

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