Beginning with the surge in coal use which accompanied the Industrial Revolution, energy consumption has steadily transitioned from wood and biomass to fossil fuels. The early development of solar technologies starting in the 1860s was driven by an expectation that coal would soon become scarce. However development of solar technologies stagnated in the early 20th century in the face of the increasing availability, economy, and utility of coal and petroleum.
The 1973 oil embargo and 1979 energy crisis caused a reorganization of energy policies around the world and brought renewed attention to developing solar technologies.[44][45] Deployment strategies focused on incentive programs such as the Federal Photovoltaic Utilization Program in the US and the Sunshine Program in Japan. Other efforts included the formation of research facilities in the US (SERI, now NREL), Japan (NEDO), and Germany (Fraunhofer Institute for Solar Energy Systems ISE).
Between 1970 and 1983 photovoltaic installations grew rapidly, but falling oil prices in the early 1980s moderated the growth of PV from 1984 to 1996.[citation needed] Photovoltaic production growth has averaged 40% per year since 2000 and installed capacity reached 10.6 GW at the end of 2007,[27] and 14.73 GW in 2008.[47] Since 2006 it has been economical for investors to install photovoltaics for free in return for a long term power purchase agreement. 50% of commercial systems were installed in this manner in 2007 and it is expected that 90% will by 2009.[48] Nellis Air Force Base is receiving photoelectric power for about 2.2 ¢/kWh and grid power for 9 ¢/kWh.
Commercial concentrating solar thermal power (CSP) plants were first developed in the 1980s. CSP plants such as SEGS project in the United States have a levelized energy cost (LEC) of 12–14 ¢/kWh.[51] The 11 MW PS10 power tower in Spain, completed in late 2005, is Europe's first commercial CSP system, and a total capacity of 300 MW is expected to be installed in the same area by 2013.
