• Tiny panels have big potential.solar cells image by Albert Lozano from Fotolia.com
  
  The quest to switch over to renewable energy is in full force. Consumers and engineers are looking to apply tried-and-true technologies to the energy sector in order to decrease reliance on fossil fuels. One such technology is solar panels. However clean solar energy may be, though, it comes with its own setbacks and challenges for developers.
  
  

Startup Costs

• While solar panels have the ability to save the government, individual companies and consumers thousands of dollars in the long run, the initial cost of purchase and installation is often regarded as prohibitively high. This is due, in part, to low levels of production. However, as demand increases, production will likely increase as well, helping to even out the price gap. In the meantime, the government offers what is called a "production tax credit," which gives a tax credit to businesses and consumers who use renewable energy, such as solar panels, for part of their energy needs.
  
  

Energy Production Limitations

• While solar panels can be very efficient without a cloud in the sky, their ability to reliably produce energy is often inhibited by a variety of factors. Most notably, when the sun isn't shining, the panels are not absorbing rays and providing power. Heavy levels of pollution also mitigate the ability of the photovoltaic cells to absorb the sun's rays. In order to counteract these limitations, companies are working on developing energy storage units to accompany panels, literally storing unused energy for a rainy day.
  
  

Space Requirements

• For years, solar energy has been dismissed as an improbable solution to the energy crisis because it requires too much space. Traditional solar panels are very large, making it difficult for small businesses or consumers to adopt the technology and power all of their needs. However, in 2006, major advancements were made in the field of concentrated solar energy, which uses lenses to project rays onto small, super efficient solar cells, allowing large amounts of power to be generated in a much smaller space.