A Brief History of U.S. Renewable Energy Development

Our national interest in the development of renewable energy sources was heightened during the 1973 oil crisis.  The crisis was caused by a cut in crude oil production by the Organization of Petroleum Exporting Countries (OPEC) and its accompanying embargo on shipments of crude oil to the West, specifically the United States.  The increased interest in renewable sources of energy spurred research in solar and wind power, but as the crisis abated and oil prices decreased, fading memories of the crisis helped to curb the move toward alternative sources of energy.

Immediately following the oil crisis many Asian auto makers gained access to the U.S. market by offering vehicles with superior fuel efficiency.  As our worries about dependency on foreign oil subsided, our demand for larger, less efficient vehicles increased.  Although the Asian auto makers have continually increased U.S. market share, these increases have been achieved by catering to American tastes with higher-quality but less-efficient vehicles.  These same auto makers, however, are also the leading suppliers of hybrid vehicles to the American market.  Over the past 40 years they have built reputations for innovation and quality and, most importantly, they have developed strong dealer networks to facilitate the proliferation of their vehicles in the United States.

Today, a motorist who wants to “do something” about our collective dependence on foreign oil – or to “save the ozone layer” or to “protect the environment” – can make the personal choice to drive a vehicle that is much more environmentally-friendly than any of its predecessor models.

The same choices are not nearly as readily available to us in our homes.

The good news is that renewable energy is the promise for our future.  The bad news is that it has been just that – the promise for the future – since 1973 and it has a solid track record of unrealized potential.  So what makes today’s promise brighter than yesterday’s?

There are many indications that our nation may be achieving critical mass with regard to renewable energy.

Part of this critical mass is visible in some of the remotest areas of our country.  The wind farms in California and Texas are leaders in producing wind energy.  In fact, Texas -- a state that in many minds is synonymous with petroleum – has been the top wind energy producer in the United States for the last two years, according to the Texas State Energy Conservation Office.  Three of the nation’s five largest wind farms are located in Texas, according to the agency. 

Solar energy collection also is now taking place in remote areas in Arizona and New Mexico, and installation of solar panels on rooftops of large commercial buildings – such as shopping malls – has begun in many places in the southern and southwestern United States.

Government tax incentives and utility rebates, driven by the requirement for inexpensive energy from renewable sources, has led to the rise of these institutional collection efforts.  And business, spurred by a need to reduce operating costs, has started to get into the game.   According to a story published July 5, 2007 in Fortune Small Business, the self-proclaimed “World’s Largest Laundromat” in Berwyn, Ill. has installed a $150,000 hot water system powered by 36 rooftop solar panels in an effort to take a bite out of its monthly energy tab.

Recently, signs have started to emerge that individual efforts to employ renewable energy have significantly increased.  “Our data indicates that consumers are becoming increasingly aware of the energy efficient options that are available in the marketplace, and they are requesting that architects incorporate them into the design and remodeling of their homes,” said Chief Economist Kermit Baker in a press release distributed September 13, 2006 by The American Institute of Architects.   According to an AIA poll conducted in 2006, 90 percent of registered voters in the United States said “they would be willing to pay $5,000 more for a house that would use less energy and protect the Earth.”

Today, more than 20 states are mandating increased use of renewable energy, according to a March 23, 2007report published by Business 2.0.  The states that have the greatest financial incentives for solar power are California, Texas, Colorado and New Jersey.  California has committed $3.2 billion for the installation of solar panels on greater than 1 million rooftops by 2018.

According to a report published October 30, 2006 in Business 2.0, Silicon Valley entrepreneurs have contributed to technology efforts to improve the efficiency – thus the economy – of solar energy capture, and are beginning to show strong financial results.  Many of the technologies currently employed to capture solar energy are silicon-based.  As a result of these developments, the worldwide market for renewable energy is expected to grow to $167 billion by 2015.

As with the automotive market, the market for renewable energy has recently experienced great technology innovation that has increased efficiencies.  This increased efficiency has led to dramatically improved financial returns.  With the recent involvement of technology industry veterans, one might imagine that the distribution of renewable energy collection devices might follow the same pattern as that of computing devices since the 1960s.  Renewable energy collection, just like computer processing power before it, will become distributed.  And, to borrow a phrase often tossed about during the early days of the personal computer evolution, the results may be truly empowering.