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Solar Energy Struggles Gaps Paper - Course Rated

July 13, 2020by admin

Solar Energy Struggles Gaps in the Solar Energy Solar Energy Supply Chain Solar energy supply chain is highly influenced by the imbalanced supply of solar equipment and their respective demand. For instance, there exists a conspicuous supply gap over time in the Indian solar energy supply chain. Indeed, India has grown significantly in terms of demand for sustainable energy solutions in which solar energy is often preferred as the best option due its extensive availability across the country relative to other green resources. In fact, study help the country also boasts of perhaps the biggest band of mean solar energy worldwide (Miller 2009).
Besides the available grid solar energy production and the solar thermal use throughout both commercial and industrial verticals, solar power is also suitable for the decentralized power demands which could eventually assist in electrifying about 400 million people currently not endowed with electric power connection. Consequently, huge demand of energy posed by the existing power gap results in a gap in supply of solar equipment especially because of the nascence stage of development of the industry as well as limited access to essential resources in most countries globally and India in particular. Besides, this challenge is not likely to recede as the power demand is expected to increase by 200% as at 2020 (Clery, 2013).
Solar energy supply chain is also hampered by unfriendly policies in the administration of the industry’s performance. In particular, while the industry focused on catering for the international markets, local markets are restricted to a common off-grid applications as well as the solar thermal industrial segment charged with supply domestic market with domestic heat requirements. The connectivity between local production and supply and their foreign supplies is also highly frustrating particularly in the less developed economies (Wasserman 1979). In particular, foreign supplies are considerably cheaper with relatively high incentives posing significant competition between with global players who purportedly have overcapacity.
Local supplies have the optimal capacity to supply the equipment to the interior more flexibly. However, with foreign supplies, local suppliers are forced to operate at either sub-optimal capacity or even shutting down their operations. In essence, the challenge facing the solar supply chain is the huge imbalance between production and consumption. Similarly, the perpetual disadvantage relative to other suppliers in other global production point also discourages local production and subsequently minimizes the supply capacity within both domestic and foreign markets. This however, does not imply that foreign suppliers provide enough products to cater for the local demands thus, a gap in supply. The same scenario influences both local and international companies producing solar equipments (Williams, N. (2014).
Low demand is also a stimulant of supply. For instance, China had been experiencing a situation of non-existing domestic solar market. In this regard, the country manufactured equipment were focused into the foreign market capturing about 65% of the global solar market by undertaking favorable policies by the government of China.
Absence of such policies in most countries leads to a solar supply chain gap where the demand is not reciprocated by equivalent supply. Besides, other countries have lacked sufficient financial endowment and other incentives that have further discouraged production (Cameron & Craig 2010).
Lack of a strong indigenous supply chain also discourages capital investments as well as eventual growth of the solar energy sector. In some locations, some governments produce extra budgetary support via better Fids in Tariff (FIT) among other incentives to encourage local procurement of solar systems.
However, these instances are exceptional to some governments while majority lacks such incentives. This situation leads to the encroachment of a funding gap (Steele 2005). Additionally, there is acute lack of established national manufacturing policy with a mainstream consideration of the solar industry as one of strategic importance. Some countries that have incorporated this fact have stimulated the growth of supply chain and equitable success in general. For instance, Taiwanese and Korean republics took initiatives to enhance the competitiveness of both semi-conductors and the solar industry as a strategic extension of support to the solar supply chain. Consequently, this led to increased boost of the sector besides enhancing the overall supply chain particularly supplying the local market and beyond. Such governments initiatives are virtually absent in most countries aspects that has been detrimental to the success of supply chains (Hirt 2012).
The complex nature of the supply chain is also a major gap existing in the solar energy supply chain. Essentially, different methods of production results into different cost simulation of the solar equipment dealers an aspect that does not only create shipment confusion but also complicates the shipment exercise.
For instance, Evergreen Solar research indicates that in 2012, it cost less to import finished frame from China than to import raw aluminum from US. This disparity appears as a major check on the supply chain adopted in the importation and supplies of the solar power supplies.
In particular, low cost by item does not act singularly as the only consideration for purchases. Instead, the cost of shipment is also attributed to the supply chain complexities as it comprises of numerous risks in the actual shipment process.
The bureaucracy and quality of solar products for shipment also acts as a condition of consideration for supply (Cameron & Craig 2010). Other Gaps in the Solar Energy Supply Chain There have been major aspects defining the solar energy sector and the industry at large.
The solar industry is mainly characterized with several fluctuations. A major gap existing in this case is the fluctuations by the costs of raw materials in the production of solar equipments.
For instance, the cost of photovoltaic panel is subject to high fluctuation. There have been frequent disparities in the sector. However, recent report shows that the solar energy sector has been encountering consistent growth in the year 2015.
Consequently, with this growth, the number of logistic considerations in solar sector will venture into the equation of complicity of the sectoral performance. Solar factor has also noted that the global PV panel creation has been highly dispersed globally.
There has been particularly high concentration in such locations as China, Germany and the US-based corporations that claim a significantly high market share (Tumber 2015). Essentially, the risks involved in this in importation of solar equipment from long distance foreign producers results in a shift of focus to purchases from local products an aspect that creates a major gap in supply between quality and affordable supply.
The main concept behind this scenario is the presence of high risks in procuring and subsequent transportation of finished equipments from foreign production locations to enhance supplies in most domestic markets that lacks production capacities especially in the developing economies.
As a result, majority of the US-based enterprises prefer procuring panels which are manufactured domestically. In this regard, companies minimize the risks involved in the maritime shipping of the solar panel equipment.
This as a case example presents a significant challenge to not only the US-based organizations but also other players in the entire industry hence necessitating local sourcing. However, this becomes a major challenge in many developing natures aiming at maximizing the utilization of solar energy especially due to the fact that there is a huge gap in industrialization and therefore lacks supply of locally manufactured solar equipments (Onyige 1996).
Besides, the avoidance of imports of solar equipments also encourages the considerations on the manner in which either rails or roads could be influenced to deliver consignments of solar panels. In addition, a number of solar panel producers and resellers focus on the entire consumer markets. In this regard, there exists a supply gap due to lack of capacity for enterprises into pursuing models that are often used in most operations of brick-and-mortar retail processes. This kind of a system also considers the need exerted by homeowners within certain regions besides recognizing the timeframe within which subsequent installation are likely to result and therefore procure sufficient materials towards satisfying the anticipated needs (Brown 1998).
The solar power market is highly demanding. However, one of the factors that hinder growth in the solar market is purchasing costs. In particular, it is not feasible in practice for many average homeowners to buy solar panels and related equipments. In particular, the payment of a contractor in undertaking a procedural installation of PV panels on their roof is considerably challenging with the modest income size. Besides, the returns on investments on the factor of the homeowners residential can also be highly ambiguous (Wheeler & Beatley 2014). Recent studies indicate that is heading to a point where it will become cheaper than payments of electric bills costs among 47 states in US. However, this is not yet a definitive possibility.
This research also incorporated tax credits accruing to solar energy use that implied that even with a drop in subsidies to about 10%. The solar energy would eventually achieve high price parity with certain conventional resources within about 36 states in the United States. However, this scenario of low cost simulation is mainly achievable in developed countries. Nevertheless, the developing nations are also pertinent users of the energy despite the fact that they hardly produce solar panels and related equipment to tap solar energy. In this regard, the fateful reduction of the costs attributable to solar energy use could be relatively hard in such regions that are dependent mainly on imports (Bradley & Hedrén 2014).
Last but not least, there are many reverse logistics consideration eminent in the whole process. The remanufacturing and recycling processes are relevant factors that must be acknowledged in planning solar panel distribution but often overlooked. Materials that are needed in the production of PV panels are obtained globally. Consequently, the refurbishment of outdated models could also assist manufacturers in making the most out of their endowment (Furchtgott-Roth 2012). However, heedlessly purchasing raw materials essential in the creation of such implementations are unnecessarily best practices since such behaviors can result in negative implications on sustainability measures in place.
By virtue of comparison with Bio-fuels supply chains which are mainly comprised of biomass matter, solar energy proves to be environmentally friend but have been attributable to a series of challenges in use.
Indeed, bio-fuels play a very significant role in supplying energy globally with this category ranking second in energy supply in US. Unlike the solar energy which involves delicate transportation of materials responsible for tapping the energy, Bio-fuels equipments are characterized with hardy products while the resource itself comprises of a supply chain possibly regulated by human activities.
This involves recurrent feedstock production that is leveraged by a number of factors such as water and water pricing policies as well as domestic agricultural subsidies among others. On the contrary, solar energy is freely availed in most regions of the world especially regions located between the tropics (United States 2007) This implies that the supply of solar power is highly influenced by demand on high end users as well as ability to tap it.
This implies that the overall demand for the resource is highly restrained as compared to bio-fuel energy which is in use at a global scale both small scale perspective and large scale perspectives as well.
In general, the bio-fuels supply chains is less complicated relative to solar energy supply.

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