1.21.2011

Get Rid of Permits, Ride the Solar Wave

In a tremendous example of how regulation can impact our world, a new study has estimated that half of Americans would be able to receive clean solar power at grid parity within two years if permitting processes were made uniform. According to the study the current problem is that the lack of a uniform permitting system across jurisdictions adds nearly $3,000 to the cost of every project. This extra cost arises mainly from the researchers firms employ to study myriad state and local regulations, but also from people who have no role other than as place holders in permit lines.

Of course there isn't enough capacity for half of Americans to receive solar currently. However the logic would be that the reduced costs (and hassle) of a more uniform system would either bring more developers into the space or entice existing generators to embark upon new projects. Combined with subsidies at both the state and federal levels, being able to contractually sell energy to the grid at more competitive prices would do just that.

Though the study was predictably sponsored and produced by a large solar firm (SunRun), the numbers are compelling enough that the Obama Administration is said to have taken a strong interest in the problem. And if the solar industry has anything to do with it, the Administration's 'interest' in the issue will turn into action soon. The New York Times has further details here.

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