There are several key differences in current solar technologies that impact American
Solar’s business greatly. The first one solely based on greater tax incentives, is that
photovoltaic sales grew faster than the solar technologies. Secondly, solar thermal systems
differ from solar electric systems in terms of how much they produce. Solar thermal
systems produced more solar energy per square foot while also costing less. They collected
about 20-40% of the available solar energy, whereas solar electric only collected 10%.
They also convert solar energy into useful heat, instead of electricity. This impacts
American Solar’s business because they are able to sell it less, produce it for less and
attract customers and ultimately increase profits. Another significant difference is that solar
thermal systems could produce as low as 5-6 dollars per million BTU, rounding about
1.5-2 cents per kilowatt hour of thermal energy. Solar electric systems costs are much
higher, at about 15 cents per kilowatt-hour, 44 dollars per million BTU.
These differences impact American Solar’s business because customers aren’t paying for
expensive solar electric systems, which provide minimal returns on investment, they are
paying for their company, cheaper and providing greater returns. Tax credits and tax
incentives are significant because they strengthen the ability of companies like American
Solar to be even more successful because it cuts the costs of operations. There are a few
developments and legislature in the United States that extends existing tax credits for
renewable energy initiatives. There are other laws/tax acts that allow onsite renewables be
eligible for tax incentives equal to 30% of the initial costs. So the solar companies and the
