According to Bloomberg, the majority of the $20 million in funding will be awarded to companies working on ways to reduce the cost of solar energy. The rest of the cash will be dedicated to the DOE’s Photovoltaic (PV) Solar Incubator Program (SIP), an initiative designed to speed up the development and distribution of some of the nation’s most promising solar energy technologies.

During a conference call on Friday, Secretary Chu said the program is part of President Obama’s goal of getting 80 percent of all of the nation’s energy from either renewable sources like solar and wind, natural gas, nuclear power or “clean coal.”

The DOE hopes the Sunshot Program will lead to cutting the cost of solar energy by 75 percent by 2020. That would bring solar energy down to an even $1 per watt, or 6 cents per kilowatt-hour (kWh) — equal to cost of fossil fuel. According to Fast Company, Sunshot will help accomplish this by focusing on four main areas of solar energy development: solar cell technology, electronics to optimize solar system installation, the solar manufacturing process, and installation, design and permitting for solar energy systems.

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Why? The California-based company offers a 20-year, zero-down solar lease deal to homeowners. Translation: You pay a monthly fixed rate for using the solar photovoltaic (PV) system atop your house. That rate won’t fluctuate, like prices of conventional electricity. And even though that fee can vary depending on your region, SolarCity claims the savings you’ll see the very first month you use the system will exceed your payment.

The program is already in play in California, Arizona, Texas, Colorado and, most recently Oregon. Now the company has announced plans to expand eastward.

Beginning in February, SolarCity will offer its solar lease in Maryland, where the state’s energy administration is giving homeowners grants of up to $10,000 at a rate of $0.50/watt (W) to help with the cost of installing a solar PV system.

To boost solar power in Maryland, SolarCity has acquired the solar energy installation branch of Clean Currents — an independent solar energy company with an office in the Baltimore area. Soon thereafter, the company plans to venture into the Washington, D.C. market. It’s all an extension of SolarCity CEO Lyndon Rive’s belief that people anywhere will install solar, “as long as it won’t cost them an arm and a leg.”

So far, there’s really no reason for SolarCity to believe otherwise. A total of 1,500 communities have bought in to the program so far. We’ll keep an eye on how things shape up on the east coast.

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The 37-page report includes cost analysis of 70 percent of the residential solar energy systems in the United States. It finds that, between 1998 and 2009, the cost of  home solar installation has fallen by 30 percent. Moreover, in 2010 alone, installations have dropped by 14 percent in California and 16 percent in New Jersey, the two states leading the nation in residential solar installations.

So the same-sized system that went for nearly $11 per watt in 1998 can now be bought today for around $6 per watt in those states. To get a clearer picture of the currently solar market in the entire country, check out the National Renewable Energy Laboratory’s (NREL) Open PV Project, which keeps a running, real-time tally of  the number of photovoltaic (PV) installations in the country (77,366), today’s average cost per watt ($7.15) and the nation’s current solar capacity in megawatts. The data are reported on a voluntary basis, so the numbers aren’t comprehensive. Nevertheless, the site provide a helpful glimpse into solar power costs around the country.

As for the report, the price reduction is clearly good news for homeowners worried about the cost of installation. But the steep decline in price also indicates that competition within the industry is heating up, and therefore driving prices down. Most important, with innovation being the key factor among companies battling for their spot under the sun, we can expect development of more efficient solar panels to rise quicker than previously predicted.

If this price trend continues, the solar industry may soon be able to stand on its own without government incentives. There’s been much debate recently about how long federal, state and utility incentive programs will have to keep the industry moving forward. But while we’re heading closer to a day when those programs won’t be needed, we’re not there yet. Even with the price drop, the upfront cost of residential solar energy systems still falls between $25,000 and $40,000 before any incentives are taken into consideration.

That’s where financing options come in to play. Qualified homeowners throughout the country can choose the financing route and pay a monthly payment toward owning the system that is usually less than their utility bill. So now, there’s really no excuse. Use GetSolar’s Solar Calculator today and find out how much money you can save each month with a solar energy system.

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Abound Solar, which operates in Colorado and throughout Europe, recently raised $110 million, thanks partly to a $400 million loan guarantee from the U.S. government. The company will use the fresh capital to expand production at its plant in Longmont, Colorado and open a brand new factory in Tipton, Indiana.

Abound’s thin-film solar panels are relatively unique because they are flexible and, therefore, can be applied in more places than standard crystalline silicon panels. Thin film is also generally less expensive to produce. The drawback is that commercially available thin-film technologies not as efficient as crystalline panels.

By 2012, Abound Solar wants to see its Longmont, Colorado plant produce 200 megawatts (MW) worth of solar panels each year; the company has even loftier expectations for its future factory in Indiana. By 2014, it expects to churn out 640 megawatts (MW) worth of panels annually. That would make it the largest producer of solar panels out of any manufacturing facility in the country. Both Colorado and Indiana workers will also see new job opportunities from the company’s expansion. It’s estimated that, in order for Abound to meet its production goals, the company will have to hire about 1,200 workers over the next three years.

Abound was awarded a $400 million loan guarantee from the U.S. Department of Energy (DOE), which has taken steps to back companies that develop innovative clean energy technology. Through the program, DOE has dished out over 30 loan guarantees to energy and auto companies that meet this criterion.

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As it stands, the program gives a 30 percent cash rebate to commercial developers of renewable energy systems. The program was initially a 30 percent tax credit before the American Recovery and Reinvestment Act of 2009 turned it in to a cash incentive. The possibility of the program reverting back to a cash incentive on January 1st lit a fire under the leaders of the U.S. clean energy industry, who credit the cash version of the program with jump-starting thousands of clean energy projects throughout the country.

With the economy still not at full strength, these leaders began tirelessly lobbying Congress to extend the  cash grant, saying that many planned projects can’t be built without it because they won’t have sufficient financial backing. Consequently, tens of thousands of renewable energy jobs would be in danger.

As of a month ago, it was unlikely that the lame-duck congress would have enough clout to extend the program. But extensive lobbying by industry leaders like the Solar Energy Industries Association (SEIA) and key house democrats like Montana’s Max Baucus, Iowa’s Tom Harkin and North Dakota’s Kent Conrad pushed congress into action.

While not official, the measure is expected to pass during a vote this coming Monday as part of a revised compromise tax bill. Here are list of energy related measures that are included in the bill, courtesy of Brighter Energy:

• The start-of-construction deadline for the cash grant in lieu of tax credit program, established in Section 1603 of the American Recovery and Reinvestment Act.
• The current per-gallon tax credits and outlay payments for ethanol as well as the existing 54 cents per gallon tariff on imported ethanol and related 22.67 cents per gallon tariff on ETBE.
• The dollar-per-gallon production tax credits for biodiesel and for diesel fuel created from biomass, as well as the 10 cents-per-gallon small agri-biodiesel producer credit.
• The credit for manufacturers of energy-efficient residential homes.
• The Section 45M credit for US-based manufacture of energy-efficient clothes washers, dishwashers and refrigerators.

As soon as the vote takes place next Monday, GetSolar will give you the final tally. You can find out more about the benefits the grant extension will bring to the renewable energy industry here.

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NREL’s figures show the state as having close to 2,500 operating projects within its borders, which puts it behind only California and New Jersey in the entire country. Pennsylvania’s Department of Environmental Protection Secretary John Hanger says the number is likely higher given that the NREL’s data is based on voluntary numbers. Hanger estimates the state has over 3,000 operating projects.

As it stands, the 2,434 projects accounted for a total of 38.5 megawatts (MW) of generating capacity. Together, at maximum output, the solar energy systems produce enough power for 5,800 average American homes each year. That puts Pennsylvania in the top five in the nation for solar. Governor Ed Rendell’s goal was to reach this point by 2011.

There are several reasons why Pennsylvania has been successful in its solar push. One of those is the PA Sunshine Rebate Program, an incentive program that began in 2009 and has a lifetime budget of $100 million. The program aims provides per-watt solar rebates to Pennsylvania homeowners — and businesses — who install solar panels. To date, the state has dispersed some $94 million in solar incentives through the Sunshine Rebate, funding 4,855 solar electric and hot water projects.

All of these projects need workers to complete them, and Pennsylvania is seeing high returns in this area as well. The Keystone State has 6,700 of its residents working in the solar jobs sector, second only to California. With 600 state businesses currently working on installing solar energy systems — with and a total of 130 MW of solar energy set to be installed in Pennsylvania by the end of 2011 — expect that number to rise.

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The “Cash is King” approach worked, as it provided a stronger incentive for property owners to invest in such systems. As The New York Times reports, a property owner who installs a 500-kilowatt (KW) photovoltaic (PV) system on a 100,000-square-foot for $2.2 million would receive $660,000 back within that 60-day period. Up to the end of October 2010, the cash incentive had led to 1,118 solar energy installations and helped nearly doubled business investment in solar energy from $3.4 billion to $6.7 billion between 2008 and 2010.

But when the clock strikes midnight on New Year’s Eve, the party is over.

Congress is unlikely to extend the treasury grant option and, accordingly, it will revert back to a tax credit in 2011 and remain that way until 2016. This has left owners of commercial buildings scrambling to begin projects before the new year in order to take advantage of the cash offer. So many projects have sprung up recently that there are simply not enough of some solar energy system supplies to cover everyone’s needs.

Jamie Hahn, managing director of Solis Partners — a New Jersey-based solar project developer — says many manufacturing companies are having trouble keeping up with material demand. Specifically, PV panels and system inverters are on back order. Companies that don’t get to the current supply in time could be forced to wait as long as eight to 12 weeks for new supplies to arrive, far too late to take advantage of the treasury grant.

When the tax credit option returns, solar industry experts expect a sharp decrease in solar business installations. Most of the systems installed after the deadline will be by way of power purchasing agreements (PPAs), but even those are not as enticing as the treasury grant that makes it feasible for companies to outright own the system they install. Under a PPA, the solar installer owns and operates the system, and consequently receives all the tax credit and subsidy perks that come along with it.

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Since 2000, LIPA’s Solar Pioneer Program has offered a per-watt solar rebate to customers who install solar photovoltaic (PV) rooftop systems. When combined with tax incentives — a 30 percent solar tax credit from the federal government and a 25 percent credit from the state of New York — the LIPA solar rebate program had enabled property owners to install a 5-kilowatt (kW) system for under $10,000, a considerable deal. The offer was a dream come true for Long Island homeowners, but it turned out to be a bit of a nightmare for LIPA.

Last month, LIPA had to suspend its rebate program for 2010 because its $20 million budget had run dry. When LIPA looked around for help, the U.S. Department of Energy (DOE) couldn’t do a thing. The DOE had already dished out $15 million to large solar projects throughout Long Island, and could not afford to bail out LIPA’s solar program.

But LIPA CEO Michael Hervey had a plan. Hervey asked New York Governor David Paterson to petition the DOE to redirect $8.3 million of the $15 million for large projects to the residential sector. Governor Paterson did, and the DOE approved the request. As of Dec. 1, LIPA will end the month-long pause in its solar rebate program and fund the rest of the customer requests currently waiting in the wings.

“With this additional funding,” Paterson said said in a statement, “LIPA can now continue to fund projects that help to promote a sustainable future for Long Island and New York, while providing much-needed stimulus to the state’s economy.”

This is undeniably good news for Long Island residents looking to go solar. It’s unclear, however, how long the incentive program will be able to continue to run — in 2011 and beyond. LIPA has not released an estimated period of time that it expects the funds to last — and the utility will not be accepting any new applications for the Pioneer Program until Jan. 1, 2011. As is often the case, homeowners who act fast tend to have a higher chance at securing rebate funds than those who postpone getting a qualified solar energy quote.

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Main Street Power, a Colorado solar installation company, has launched a ten-year ‘no-cost’ solar pilot program across California. In partnership with Morgan Stanley, Main Street Power is working with two energy-services companies to create Solar Access California (SACA). SACA will own and operate the solar energy systems and give away the generated energy for free for a decade.

The initiative’s aim is to provide clean energy to low-income communities. In order to qualify, residents must live in multi-unit apartments — though specific income requirements are not yet known. Beyond helping lower electricity costs for participants, SACA is also meant to serve as a teaching tool. Each California solar installation will be equipped with a monitoring system, and the companies involved will train non-profit workers in those neighborhoods to read the system and install solar panels. This way, the initiative’s backers hope to impart job skills while encouraging the adoption of residential solar power.

Main Street is not new to doing business in California. In September, the company was awarded solar contracts at 36 schools in San Diego and 12 other sites in northern California’s Contra Costa County.

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Not according to Matt Croucher, an assistant research professor at Arizona State University’s business school. Croucher recently published a research piece in the Electricity Journal saying that, if the United States ever wants to realize its full solar energy potential, Arizona will have to export more of its own solar energy.

Croucher reasons that, because of Arizona’s already relatively low electric rates, utility companies are criticized by their customers for price hikes, which are sometimes attributable to integrating more solar generating capacity within their service territories. To ease the minds of in-state critics and spread solar energy throughout the country, Croucher reasons that the Grand Canyon State’s solar energy should be exported to states with higher utility rates such as Hawaii, Maryland, Delaware, Alaska, Wisconsin, Texas, Ohio, New Mexico, Massachusetts and Colorado, in no particular order.

Here’s Croucher’s explanation in his own words:

“When you add solar generation there is the criticism that it is not cost competitive with standard technology, which can have potentially negative economic impact. States with high electricity prices already, the structure of their economy is different, and they can potentially absorb any additional increases.”

Easier said than done. Croucher’s plan would be a difficult, long-term process to carry out. First of all, new transmission lines will have to constructed in order for the solar energy to be exported from Arizona to the rest of the country. A similar challenge faces wind-rich states, like the Dakotas, that are far from major population centers. Secondly, Arizona and California, two states in the top ten in the nation in installed solar capacity, both have renewable energy requirements that must be met within the next five and ten years, so they’re doing using their own energy to meet those goals.

But these factors haven’t stopped Arizona from trying to export. In fact, Arizona is the nation’s leading “exporter” of solar electricity. First Solar is in the process of constructing a new solar plant just outside of Yuma, Arizona that will generate power to be exported to (you guessed it) California.

A main problem, Croucher says, is that California only ranks 38th in the nation on the study’s list of most desired states to use solar power. Arizona stands at forty-one. The export to the Golden State is easy because California needs it — and because the close proximity of the two states means no new transmission lines are needed. In order to put Croucher’s method to work, these problems will need to be figured out throughout the country.

It bears noting that one of the nice things about residential solar energy systems in Arizona — versus large, utility-scale projects — is that the bulk of a given system’s output is used on site. That is, most of the electricity generated by a solar home energy system is used at home by the system’s owner.

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