Solar power has long since been a source of energy for civilizations, as far back as the ancient Greeks, homes were known to built facing the sun to use the passive qualities of solar thermal energy to heat structures. Roman architecture took it a step further by lining the sun facing walls with glass or mica to hold in the thermal energy gain.

Interestingly enough, during the peak of the industrial revolution, in 1861, Auguste Mouchout invented a steam engine powered solely by the sun. But it never pushed past the market forces of increasingly cheap coal power.

But it wasn't until the mid-ninteenth century that the sun was actually used to produce electricity, that can be credited to the great Albert Einstein for his "photoelectric effect" for which he was awarded a Nobel Prize in 1921.

Photovoltaics

The first actual solar cell capable of generating electricity was produced by Bell Laboratories in 1953. Three years later, when the technology was available to the public, the cost-prohibitive nature of renewable energy technologies was born and realized. At that time one could pay a whopping $300 per Watt!!

But it was the oil embargo of the early 1970's that brought prices for solar panels down to a level where individuals besides NASA could actually think about purchasing. The oil hike brought much fear into the hearts of consumers who now saw the vulnerabilities in the energy market. Terms such as "Energy Security" and "Energy Independence" became common play. It was the US government who took the step, under the direction of President Jimmy Carter. The Administration invested heavily in renewable energy technologies, and helped citizens obtain these technologies through generous subsidies.

Since that time solar paneling has been dropping in price, but so too has the price of fossil fuels, making it a falling baseline competition. But in the early 1990's Japan and Germany began large concentrated efforts to permeate their nations with solar power. This has invigorated the market and caused substantial price drops. An average solar electric system can now be installed for about $9.00 per watt, without including the many generous incentives available in the US.

More:

• Renewable Component of Energy
• Example Cost-Recovery Scenario
• Financial Information Photovoltaic, Soy Foam & Solar Thermal