A photovoltaic system converts light into electrical direct current (DC) by taking advantage of the photoelectric effect. Solar PV has turned into a multi-billion, fast-growing industry, continues to improve its cost-effectiveness, and has the most potential of any renewable technologies together with CSP. Concentrated solar power (CSP) systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. Commercial concentrated solar power plants were first developed in the 1980s. CSP-Stirling has by far the highest efficiency among all solar energy technologies.
Single small turbines below 100 kilowatts are used for homes, telecommunications dishes, or water pumping. Small turbines are sometimes used in connection with diesel generators, batteries, and photovoltaic systems. These systems are called hybrid wind systems and are typically used in remote, off-grid locations where a connection to the utility grid is not available.
The primary obstacle that is preventing the large scale implementation of solar powered energy generation is the inefficiency of current solar technology. Currently, photovoltaic (PV) panels only have the ability to convert around 24% of the sunlight that hits them into electricity. At this rate, solar energy still holds many challenges for widespread implementation, but steady progress has been made in reducing manufacturing cost and increasing photovoltaic efficiency. Both Sandia National Laboratories and the National Renewable Energy Laboratory (NREL), have heavily funded solar research programs. The NREL solar program has a budget of around $75 million  and develops research projects in the areas of photovoltaic (PV) technology, solar thermal energy, and solar radiation. The budget for Sandia’s solar division is unknown, however it accounts for a significant percentage of the laboratory’s $2.4 billion budget. Several academic programs have focused on solar research in recent years. The Solar Energy Research Center (SERC) at University of North Carolina (UNC) has the sole purpose of developing cost effective solar technology. In 2008, researchers at Massachusetts Institute of Technology (MIT) developed a method to store solar energy by using it to produce hydrogen fuel from water. Such research is targeted at addressing the obstacle that solar development faces of storing energy for use during nighttime hours when the sun is not shining. In February 2012, North Carolina-based Semprius Inc., a solar development company backed by German corporation Siemens, announced that they had developed the world’s most efficient solar panel. The company claims that the prototype converts 33.9% of the sunlight that hits it to electricity, more than double the previous high-end conversion rate. Major projects on artificial photosynthesis or solar fuels are also under way in many developed nations.
Green power is a subset of renewable energy and represents those renewable energy resources and technologies that provide the highest environmental benefit. The U.S. Environmental Protection Agency defines green power as electricity produced from solar, wind, geothermal, biogas, biomass and low-impact small hydroelectric sources. Customers often buy green power for avoided environmental impacts and its greenhouse gas reduction benefits.
Grid parity, the point at which the cost of photovoltaic electricity is equal to or cheaper than the price of grid power, is more easily achieved in areas with abundant sun and high costs for electricity such as in California and Japan. In 2008, The levelized cost of electricity for solar PV was $0.25/kWh or less in most of the OECD countries. By late 2011, the fully loaded cost was predicted to fall below $0.15/kWh for most of the OECD and to reach $0.10/kWh in sunnier regions. These cost levels are driving three emerging trends: vertical integration of the supply chain, origination of power purchase agreements (PPAs) by solar power companies, and unexpected risk for traditional power generation companies, grid operators and wind turbine manufacturers.[dead link]
Floating solar arrays are PV systems that float on the surface of drinking water reservoirs, quarry lakes, irrigation canals or remediation and tailing ponds. A small number of such systems exist in France, India, Japan, South Korea, the United Kingdom, Singapore and the United States. The systems are said to have advantages over photovoltaics on land. The cost of land is more expensive, and there are fewer rules and regulations for structures built on bodies of water not used for recreation. Unlike most land-based solar plants, floating arrays can be unobtrusive because they are hidden from public view. They achieve higher efficiencies than PV panels on land, because water cools the panels. The panels have a special coating to prevent rust or corrosion. In May 2008, the Far Niente Winery in Oakville, California, pioneered the world's first floatovoltaic system by installing 994 solar PV modules with a total capacity of 477 kW onto 130 pontoons and floating them on the winery's irrigation pond. Utility-scale floating PV farms are starting to be built. Kyocera will develop the world's largest, a 13.4 MW farm on the reservoir above Yamakura Dam in Chiba Prefecture using 50,000 solar panels. Salt-water resistant floating farms are also being constructed for ocean use. The largest so far announced floatovoltaic project is a 350 MW power station in the Amazon region of Brazil.
“If the U.S. continues this kind of thing, I’m afraid the credibility of the number one leader country of the world may be in serious question,” Mr. Ban said. “We must have a global vision. It’s not the American economy. If the world economy is shaken by climate consequences do you think the American economy will be able to survive? We all sink together.”
The majority of green pricing programs charge a higher price per kilowatt-hour to support an increased percentage of renewable sources or to buy discrete kilowatt-hour blocks of renewable energy. Other programs have fixed monthly fees, round up customer bills, charge for units of renewable capacity, or offer renewable energy systems for lease or purchase.
Many residential PV systems are connected to the grid wherever available, especially in developed countries with large markets. In these grid-connected PV systems, use of energy storage is optional. In certain applications such as satellites, lighthouses, or in developing countries, batteries or additional power generators are often added as back-ups. Such stand-alone power systems permit operations at night and at other times of limited sunlight.