The Future of Solar Energy in Chicago: Trends and Predictions
The future of solar energy focuses on two globally recognized technologies for converting solar energy into electricity – photovoltaic (PV) and concentrated solar power (CSP), also known as solar thermal. These technologies, in their current and future versions, will dominate solar energy production until 2050, as energy facilities typically operate for several decades.
This article will cover these burning questions about the solar energy future:
- Why is solar energy better for the future?
- What should help make solar energy a viable energy source in the future?
- What is the future of solar energy in Chicago?
Increasing Adoption of Residential Solar Panels
The International Energy Agency (IEA) states that solar energy will become the leading source of electricity generation in developing countries over the next 10 years. So, what is the future of solar energy in Chicago?
The global energy industry is still trying to balance conflicting priorities amidst uncertainty, and the latest DNV survey shows sustained optimism despite general caution.
In their latest survey, 73% of energy executives expressed confidence in the industry’s growth in 2024, virtually unchanged from 2022, when the figure was approximately 74%.
At the same time, almost two-thirds of the energy sector sees global political uncertainty as the main threat to this year’s success. This promises to be a record-breaking election year, with more than two billion people attending the polls worldwide.
The future of solar energy looks promising, as the industry is looking forward to innovation. The following developments are expected to influence the solar energy future:
- Increased usage: Solar adoption is expected to continue to grow rapidly in the future as many countries set ambitious targets in this area. The decreasing cost of solar technology and the widespread recognition of its environmental benefits will encourage more and more people and companies to switch to solar energy as a generator of electricity.
- Expanding role in transport: Solar energy will increase its impact on the transport sector through the development and advancements of solar-powered vehicles and the use of solar panels for EV charging.
- Political and regulatory support: Governments and legislators around the world are becoming more aware of the benefits of solar energy and are taking steps to support it. This includes financial incentives for the implementation of solar systems, setting renewable energy targets, and policies that encourage the use of solar energy.
As climate change is a global issue, it is envisaged that regulations to support renewable energy will be strengthened. Such regulatory tightening, together with growing public awareness, could lead to an increase in demand for solar installations and a better solar energy future.
Looking to buy a solar system in Chicago? Get your free solar quote in a matter of minutes!
Growth of Community Solar Projects
Three new projects, including the 80th community solar project in Northern Illinois, are part of three adjacent solar installations in the Streator area to improve access to clean energy. They will help users save on their electricity bills starting in 2023 while also growing renewable energy and meeting Illinois’ ambitious clean energy goals.
The three projects in Streator include more than 16,700 solar panels and cover 38 acres along North 14th Road. They generate approximately six megawatts of pure energy, enough to meet the energy needs of around 1,000 to 1,200 average homes.
What does the future hold for solar energy? More than 50 community solar projects are planned to be completed in northern Illinois by the end of 2024.
The Illinois Climate and Fair Jobs Act (CEJA), passed in 2021, is expected to increase the support for renewable energy to 40% by 2030 and 50% by 2040.
Community solar energy allows you to enjoy its benefits without having to install your own solar panels. Participants subscribe to a “farm” of solar panels owned by an independent developer. They receive credits for the portion of the energy on their monthly bills generated by the project.
In a community in Illinois, solar energy consumers can pre-pay up to 110% of their electricity for the last 12 months. The solar energy generated by the community project is fed into the grid and becomes part of the overall energy supply.
Advancements in Solar Technology and Efficiency
The solar industry is actively developing new technologies. Promising areas of the solar energy future include:
- The use of nanomaterials to improve the performance of solar cells.
- Create transparent solar panels for integration into windows, solar tiles, and other building materials.
- The use of artificial intelligence to optimize the performance of solar systems.
- Improving storage systems. One of the main problems with solar energy is its dependence on the time of day and weather conditions. However, new technologies, such as solar energy storage and advanced batteries, allow excess energy to be stored and used when needed.
- Expansion in the industrial sector due to the development of new technologies like storage systems and solar steam generation.
- The use of blockchain technology, a distributed digital metering system that ensures secure, transparent, and decentralized energy trading in the solar industry through virtual power plants (VPPs). It enables peer-to-peer energy trading between consumers, producers, and system operators without intermediaries, facilitating more efficient and reliable energy transactions.
Note that blockchain can stimulate the use of renewable energy sources and simplify the integration of distributed energy resources. It can also facilitate the development of microgrids, improve operations and maintenance, and reduce transaction costs.
Expansion of Solar Incentives and Rebates
The development of battery management systems is expected to improve the control and optimization of energy storage. They will allow users to increase the use of stored solar energy, depending on demand, grid conditions, or time-of-use tariffs. That, in turn, will result in cost savings and increased energy efficiency.
In addition to technical advances, the integration of solar panels and energy storage systems is also expected to drive improvements in government policies and regulations. In 2024, more favorable government incentives and support programs will be introduced for the deployment of solar and storage systems, which will facilitate their wide-ranging adoption in the clean energy industry.
Illinois has also allowed community solar projects, which encourage residents to use solar energy without installing panels on their property. Through its Climate and Fair Jobs Act, the state has committed to producing 100% sustainable energy by 2050.
Rise of Solar Energy Storage Solutions
Companies that specialize in solar installation may need to move beyond simply installing panels to offering complete energy solutions, including solar panels, battery storage, and energy management systems. They may also need to adopt smart grids and IoT technologies to provide higher-quality services and adapt their business strategies to changing financing models.
Smart grids and IoT technologies can improve efficiency and reduce outages in the solar industry. They also allow for smart energy management and enable solar installers to provide real-time data collection and maintenance, as well as predict and prevent problems.
Overall, we can expect solar energy to become increasingly dominant in the global energy mix in the coming years as efforts to reduce dependence on fossil fuels and combat climate change intensify. In the future, clean energy sources, such as solar power, may be used to create hydrogen fuel.
Looking to buy a solar system in Chicago? Get your free solar quote in a matter of minutes!
FAQ
Why should I invest in solar energy in Chicago?
Investing in solar energy in Chicago is not only a step towards sustainable development but also a good financial decision. Thanks to the city's support, streamlined processes, and affordable incentives, going solar has never been easier or more profitable.
Why is solar energy critical for the future?
Solar energy in Chicago offers the promise of a cleaner, greener future, with long-term savings and environmental benefits.
Invest in a brighter, more sustainable future for the Windy City by taking advantage of the benefits of solar energy.
What are community solar projects, and how do they benefit the residents of Chicago?
A community solar project is a solar installation on a single plot of land shared by lots of subscribers. This allows subscribers to support the growth of new renewable energy sources without having to install equipment on their property.
Such projects generate electricity that is transmitted to the utility's grid. They sign up subscribers who receive a so-called monthly net metering credit.
You do not need to invest in a rooftop solar installation, which may not be suitable for everyone. You will receive a net metering credit on your monthly electricity bill for your share of the generation created by these projects. Subscribers are qualified for 10% savings from utility-scale solar credits.
What types of solar incentives and rebates are expected to expand in Chicago?
The following types of incentives and rebates are expected to expand in Chicago:
- Solar Chicago, which aims to make rooftop solar installations more affordable.
- Chicago Solar Express, which makes solar panels cheaper for businesses and citizens to install through incentives.
- Federal and state tax incentives, such as Illinois Shines and Solar for All, make solar installations more cost-effective investments.
- Utility net metering programs like Ameren Illinois Utilities and Commonwealth Edison allow homeowners to receive credits for excess energy produced. This reduces energy bills and maximizes savings.
