The rise of sustainable, solar energy
Solar power is an environmentally friendly energy source. Learn what the sun’s rays can do to power, and help preserve, the planet.
What is solar energy?
Solar energy is energy that comes from the sun. The sun’s heat and light are harnessed and used to generate electricity or thermal energy for a variety of household, business, and other operational needs. The output of a solar power system is measured in watts.
Solar energy—also known as solar power, solar generation, or solar radiation—is the most abundant, renewable source of energy. A renewable energy source is an energy source that can be regenerated. Unlike fossil fuels (oil, natural gas, and coal), this energy source is not depleted after one use. Additionally, wind, hydro, and geothermal power are other examples of renewable energies.
It might surprise you to learn that solar-energy technologies aren’t a modern-age discovery: People have been using solar since 7th Century B.C. when humans used magnifying glasses and the sun’s rays to make fire and burn ants. Of course, since that time, there have been major developments and advancements in solar energy technologies.
Here’s a brief overview and timeline of solar energy, per the U.S. Department of Energy:
- In 1767, Swiss scientist Horace de Saussure built the world’s first solar collector.
- Edmond Becquerel, a French physicist, discovered the photovoltaic effect—when light or radiant energy produces a voltage or electric current—in 1839.
- Decades later, French mathematician Augustin Mouchot registered patents for solar-powered engines.
- In 1883, New York inventor Charles Fritts created a solar cell by coating selenium with a thin layer of gold that achieved an energy conversion rate of 1 to 2 percent (for reference, most modern solar cells operate at a rate between 15 to 20 percent), according to Smithsonian Magazine. Inventor Edward Weston received two patents for solar cells five years later.
- Albert Einstein published a paper on the photoelectric effect in the early 1900s.
- In 1954, Bell Telephone Laboratories produced a silicon solar cell—the first cell that could convert enough energy to run day-to-day electrical equipment—with 4 percent (and later 11 percent) efficiency. Six years later, Hoffman Electronics reached 14 percent efficiency.
- In the 1970s, Dr. Elliot Berman designed a less expensive solar cell, resulting in a price reduction to $20 a watt.
- Paul MacCready built a solar-powered aircraft (the first of its kind) with 16,000 solar cells on it and flew it from France to England in 1981.
- In 1998, scientist Subhendu Guha led the way to invent flexible solar shingles that convert sunlight into electricity for roofs.
- In the 2000s and beyond, great strides continue to be made in the capability and efficiency of solar energy technologies.
Today, “solar energy is the fastest growing and most affordable source of new electricity” in the United States, according to Energy.gov, with 3 million installations in the country. And globally, solar energy is on the rise, as well, for home and industry use.
An everyday, popular example of solar energy would be the black, rectangular solar panels you see on some house rooftops. Corporations have embraced this form of solar generation, too—even Disney World has a Mickey Mouse-shaped solar facility made up of 48,000 solar panels outside its Epcot theme park.
Solar technologies have continued to evolve and improve over the years. This article will provide an overview of solar energy, how it works, the advantages of using it, and the future of solar power.
How is solar energy collected and stored?
Photovoltaic (PV)
Involves using a device (think solar panels) to absorb sunlight and turn it into electrical energy. These devices are known as solar cells and are connected to form larger units that generate power.
Concentrating solar power (CSP)
Collects energy from the sun to create heat, which is then used to generate electricity. This technology uses mirrors to focus or “concentrate” light energy.
Solar heating and cooling (SHC)
Collects energy from the sun and uses it to provide heating and cooling services to homes and businesses. This technology uses a solar collector, insulated piping, and a hot water storage tank.
Solar energy storage components
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Batteries
The core of energy storage systems. Two common types of batteries are lithium-nickel-manganese-cobalt and lithium-iron-phosphate.
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Critical load subpanels
Enables you to decide what essential devices get powered in the event of a power outage.
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Solar panels
Used to recharge batteries. Thin film, PERC, polycrystalline, and monocrystalline are different types of solar panels.
What are solar panels made of? At their core, solar panels typically contain silicon—the most common semiconductor material used in PV cells—glass casing, a metal frame, and other hardware to hold the panel together and support the functionality of it.
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Inverters
Used to convert alternating current to direct current (solar panels and batteries convert direct current into alternating current).
Solar energy storage
Then, per Green Building Elements, there are three ways to store solar energy:
Battery storage
Most commonly, lithium-ion batteries are used to store solar energy.
Mechanical energy storage
Compressed air (forced into a vessel, like a tank, and dispensed as necessary), pumped-storage hydropower (water pushed through turbine generators to produce energy when there is a demand), and flywheel (excess energy that is used to provide power when needed) are three variations of this type of storage system.
Thermal storage
Uses molten salt and water in an insulated tank to hold energy.
There’s also “virtual storage,” a process by which you heat or cool a building before there’s an anticipated spike of electrical demand. The building then stores this energy for when it’s needed.
For a full list of terms and definitions, view the Solar Energy Glossary at the U.S. Department of Energy.
Advantages of solar energy
So, what are the advantages of solar energy? There are quite a few, including environmental welfare, job opportunities, and tax credits. Here’s an overview of some of the primary benefits:
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It’s better for the environment than traditional power sources
The planet is probably the first thing that springs to mind when considering the benefits of solar energy. Renewable energies like solar power help curb the world’s reliance on fossil fuels, reduce our carbon footprint, and provide electricity without causing toxic pollution.
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The costs of maintaining solar power have improved
While the initial setup may be cost-prohibitive for some households, maintenance costs have gone down over the years. Specifically, in the last decade, the cost to install solar has dropped by 60 percent. (However, costs can depend on factors such as the region and supply chain constraints.)
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There are tax advantages to solar energy systems
Making the move to solar energy can be good for your wallet (albeit down the line). For instance, the U.S. government offers a federal solar tax credit that can be applied toward the installation costs of a solar PV system. State and other local governments may also offer programs to help offset the higher price point.
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Solar power technologies have evolved
Equipment and storage technologies have greatly improved over the years. Today, solar panels produce more energy for longer (with efficiency around 20 percent) and last up to 30 years.
There are many wide-ranging positives to using solar energy for your home or business. However, this energy source isn’t without its limitations. Here are some drawbacks to using solar power:
- Pollution is still a concern. While solar energy is a more environmentally friendly solution than burning fossil fuels, some of the chemicals and materials used in the PV cell manufacturing process produce hazardous waste.
- It can be pricey to set up. While solar power can save you money down the road, initial installation and equipment can be expensive.
- There are service limitations. Because energy is generated when the sun is out, certain times of day and weather conditions (like cloudy skies) are not optimal for solar power.
- Other environmental impacts. Water use, land use, and potential habitat loss are considerations that need to be made when scaling solar power systems.
Jumping off that last point, solar energy presents environmentally friendly opportunities for industry and business. For instance, emerging tools and apps can help organizations visualize reservoir simulations to increase drilling hit rates and upgrade electrical grids for distributed energy resources to reduce costs and expand possibilities. There have also been great strides using quantum computing for power generation optimization.
How to implement solar energy
Before you implement solar energy, do your research. You’ll want to calculate the costs for your area, check out available rebates and tax credits, explore different systems, and look at reviews for system installation companies. You can technically install solar panels yourself, but you’ll want to consider if that’s the best option for you.
If you’re a business owner, you’ll have several considerations when making the move to solar energy, including what uses electricity in your workplace (the cooling and heating system, machinery, equipment, etc.). While, like households, you’ll eventually experience cost savings, making the switch to solar will likely be an upfront investment of time and money. However, there are IoT energy solutions available to help you lower operational costs while optimizing supply and demand and monitoring grid asset maintenance.
For home installation, most people would probably consider the high price tag to be the biggest roadblock to getting started with solar energy. For instance, the cost for a solar panel system in an average-sized house in the U.S.—after any solar tax credits—ranges from $11,144 to $14,696, and about $200 to $250 per panel for a small DIY project, according to Consumer Affairs. Some guides expand the range further, listing the costs as between $10,000 and $25,000 in the U.S. There are also “soft costs” to consider, such as permitting and installation labor costs. You could choose to lease solar panels—which means you don’t have to pay for installation, maintenance, or repair costs—but there are pros and cons to consider.
The upfront price can be steep for most households, and there’s some wait until you reach the solar panel payback period (on average, you’ll see a return on your investment in seven to 12 years). But the savings can be significant, too: Solar energy can save U.S. residents between $600 and $2,000 on electricity costs, per year, according to HomeGuide. Additionally, some installations cost less than the listed figures. The size of your home (a larger property usually indicates a higher price point), your level of energy consumption, and the types of technologies you choose for your system are three primary factors that will influence costs. Websites like Solar Estimate allow you to enter your zip code or choose your location on the virtual map to help determine the costs of installing solar panels on your home.
You can also choose to incorporate solar energy into your everyday life in various ways, both big and small. You don’t need to spend a lot of money to get started with solar power, either. For instance, you can purchase a solar-powered case for your smartphone, solar-charging flashlights for your car emergency kit, or a solar cook-stove for your next camping trip—in some cases, for under $100. Outside of solar panels, there are other options to sun-power your house, too. Homeowners can use solar-powered devices to warm their pool and set up solar lights to brighten up their backyard or patio at night. You can also use solar generation in your work life. Want to work remotely, offsite? Bring a portable solar panel charger to power your laptop while you work outside at a coffee shop.
The future of solar energy
The future of solar power is bright (pun intended), because:
- It’s good for the planet. Solar energy is sustainable and environmentally friendly.
- Clean energy is where the world is headed. After the year 2035, 50 percent of power generation will be renewable.
- It’s becoming more affordable and efficient. The price of solar power systems is expected to continue to drop, while service continues to get better.
- It helps create new businesses and jobs. Both industry and job growth are expected to flourish in this space.
To that last point, careers in the renewable energy field are booming. This sector employs more than 3 million people in the U.S. and 11 million people globally, according to the Environmental and Energy Study Institute. The number of jobs in solar vary across the U.S. For instance, there are 211 solar jobs listed in North Dakota versus over 10,000 in Texas, according to Solar Energy Industries Association (SEIA). Nevertheless, the solar energy space consists of engineers, researchers, solar plant operators, equipment installers, and a variety of other professionals in jobs across the country.
Companies are also looking ahead to solar power and other renewables. Large tech companies have announced social responsibility initiatives and environmental goals for their organizations. For example, Microsoft has made a pledge to be water positive and carbon negative by 2030. Consumers increasingly care about corporate social responsibility, as well, so expect more organizations to develop policies around their commitment to sustainability in the near future.
Accelerate your sustainability journey
Wherever you are on your path to net zero, Microsoft Cloud for Sustainability enables you to amplify progress and transform your business through environmental, social, and governance (ESG) capabilities.
Frequently asked questions
- Solar energy is energy from the sun that can be generated into electricity. It’s a renewable source of energy, which means it’s replenishable and not depleted after one-time use. Solar energy has a variety of uses, and can be used to power buildings, heat water, charge applicable electronics and devices, and more. Solar energy is also known as solar power or solar radiation. Learn more >
- Solar energy can be used both domestically and commercially. On a residential level, for example, it can provide homes with electricity, hot water, and heating and cooling. Some businesses use solar energy to operate their offices, factories, or farms. Additionally, governments can power public utilities and facilities—such as streetlights, parking lots, transportation, and schools—with solar energy.
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Using solar energy has several advantages. In addition to being abundant and renewable, solar energy reduces our collective carbon footprint because solar generation itself produces zero emissions. Solar energy can also be cost-effective. For instance, technological advancements are making solar power systems increasingly affordable, and over time, these systems can drastically reduce utility bills. What’s more, solar energy is scalable—it can be used to power a single residence or an entire community. Finally, solar energy systems can be installed in virtually any location, even remote areas, which means power can be provided in places that lack access to electricity.
- First, there are three primary technologies used to harness solar energy: photovoltaic (PV), concentrating solar power (CSP), and solar heating and cooling (SHC). Once it’s been harnessed, you need a few basic components to store it: batteries, solar panels, critical load subpanels, and inverters. Then, there are three ways to store solar energy: battery, mechanical energy, and thermal storage. Depending on your needs and what you’re using solar power for (say, to power a 1,200-square-foot suburban home versus a large property off the grid), your process may differ.
- The initial costs of setup—in the United States, it can cost anywhere from $10,000-$25,000 for a residential home—can be pricey for many consumers. However, some countries have government programs that can help you offset the costs of getting started with solar energy. This might include resources on building a cost-efficient system or how to secure available tax credits. It’ll take some time (about a decade), but you should recoup the costs of a solar panel system and see the savings reflected in your electricity bill. Depending on factors such as the cost of your solar energy system and the size of your property, your electricity-cost savings can be anywhere from a few hundred dollars to a couple thousand dollars per year.
- Solar energy is one of the most sustainable forms of energy available today. Not only is it abundant and renewable—the sun provides enough energy each day to meet our current global energy demand for an entire year—it can also be generated economically and on a large scale. Solar generation produces no greenhouse gas emissions, requires minimal maintenance costs once solar panels have been installed, and provides power with no risk of water or air contamination.
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