**Introduction:**

Solar Energy is known to be the best manner of acquiring alternate energy. It is known to be an unlimited beginning of energy with the most possible as it will go on to bring forth solar power every bit long as Sun is at that place. Solar energy is wholly free, available widely. Solar energy can be used in many different countries. It can be used in residential, commercial, industrial and distant applications. First of all, solar energy is indispensable in residential. In solar systems connected to the electricity grid, the PV system supplies electricity to the edifice.

**Literature Reappraisal:**

Renewable energy has gained tonss of popularity after the concerns over CO2 emanations and planetary heating, and it has an increasing capacity of production with large subsidies all over the universe. A couple states are taking renewable energy in solar, and one of them is U.S. The taking province for the solar energy in the United States is California. California energy ingestion increased in a big figure over the last decennary. However, the supply for this big demand can be a job. Furthermore, scientists indicate that because of addition in demand, the resources such as oil and natural gas will run out by the late 2050s. So the research workers estimate that the world’s oil militias will last for 30 to 40 old ages, the states started to look for alternate resources. Solar energy is one of them and considered as an infinite energy beginning. Harmonizing to California Solar Energy Industries Association, there has been beforehand degree of involvement for solar energy in California since 1970s in footings of California’s alone conditions status. California solar market additions singular power in order to go prima sector as renewable energy beginning in the United States ( 2013 ) . It is favored because it is inexpensive, and easy to put in for residential users. Governments are subsidising renewable energy all over the universe. Government incentives which began in 2007 at $ 2.50/watt for residential system for solar energy encourage people in order to tilt more on solar energy in California. In 2011, the International Energy Agency said that “ the development of low-cost, unlimited and clean solar energy engineerings will hold immense longer-term benefits. It will increase countries’ energy security through trust on an autochthonal, unlimited and largely import-independent resource, enhance sustainability, cut down pollution, lower the costs of extenuating clime alteration, and maintain dodo fuel monetary values lower than otherwise. These advantages are planetary. Hence the extra costs of the inducements for early deployment should be considered learning investings ; they must be sagely exhausted and need to be widely shared ”

**The Model and Datas:**

In this survey**,**I am be aftering to make a additive demand map and run a arrested development about it. The demand for the province of California will be the dependent variable for this survey and I have collected some informations for arrested development which are my independent variables in my equation: the monetary value of solar rooftop PV panels for residential.**( P )**; income ( GSP per capita ) (**I )**; monetary value of traditional energy ( monetary values of solar energy replacements )**(****Phosphorus**_{Tellurium}**)**; and authorities subsidy ( revenue enhancement credits for solar for residential usage )**(****S )**. However I have to pull out the authorities subsidy because the clip distance did non let me to run the arrested development. In this survey there will be two theoretical accounts. Model 1 shows us the Linear equation of the demand map and Model 2 shows us the dual log equation of the coefficients of the demand map.

The tabular array 3.1 shows that the demand for solar energy has increased well between 2000 to 2012 old ages in California. There has been a diminution for the monetary value of solar panels in 2000 to 2012. The chief ground can be that the monetary value of solar panels due to mass production which led to the cost of production to worsen. For case, monetary value of solar panels was $ 6.00/watt in 2000, but on the other side it was merely $ 2.30/watt in 2012. So that, we can state that mass production leads to efficiency so cost of factors decrease comparatively. As a consequence consumers started to demand much more. Furthermore, we can see that there have been fluctuations in 2000 to 2012 for cost of installing. It was rather high in 2009 because of planetary economic crisis. This crisis lead the demand to worsen because, people save more than disbursement in order to acquire over with the crisis. Another of import ground is the authorities inducements which began in 2007 at $ 2.50/watt for residential system for solar energy. Without any uncertainty this is an effectual manner to promote the usage of solar energy. Furthermore, we can state that monetary value of traditional energy cost plays a important function to force the demand for residential solar energy because there is an increasing tendency for monetary value of coal, natural gas and crude oil so when monetary value of utility addition the demand for solar energy addition. As we can see that monetary value of traditional energy cost was $ 14.59/million BTU in 2000 and $ 36.65/million BTU in 2012 so we can state that this is rather higher than solar energy for residential. Last but non least income plays a important function to find penchants of people. Higher income degrees can take to higher demand for solar energy. As we consider all these variable to see the consequence on entire demand, we ran a arrested development to compare the perfect relationship of them whether they are positively or negatively correlated.

**This Survey:**

For this research paper I want to analyze the equation of measure demanded for solar energy which is**Qd= degree Fahrenheit { ( Ps ( – ) , Y ( income ) , Psb ( + ) , Pol ( +/- ) } .**To be more specific this equation shows the relationship of*monetary value of solar panel*,*cost of installing*,*monetary value of subsidies*,*authorities inducements*and*existent GSP per capita Income*on*Entire Demand*for California. In this survey, for the arrested development analysis, our first theoretical account is Q = A + B P+ C CoI + D PTE + E I+ E› which is additive. In Table 1 we can see that, A is the changeless term of this equation which equals to 115.373. Standard mistake for the invariable is 152.933 and t-value is.754. The coefficient for monetary value of photovoltaic ( PV ) panels is B and it is equal to -3.841. This variable has to be negative because as the monetary value of solar panels addition, the demand for solar panel will diminish. This is why the coefficient has a negative consequence. T-value peers to -0.909. ‘C’ is the coefficient of the cost of installing for the solar panels. The coefficient has besides a negative consequence on the demand which is -3.768. T-value for this -1.017. PTE represents the monetary value of traditional energy which is all the replacements that solar energy has. ‘D’ is the coefficient for the cost of traditional energy which is equal to 0.516, and t-value peers to 0.716. In the demand theoretical account there is besides an income variable besides which consequence the demand somewhat. ‘E’ is the coefficient of the Income which is -0.001 and the t- value is -0.310. In order to infer more accurate information, it is good us to make the dual log specification which consists of LnQ = A +B LnP + C LnCoI + D Ln PTE + E LnI + E› . Table 2 we can subtract the changeless term for this equation is ‘A’ and it equals to -7.328 and t-value is -0.246. For LnP the coefficient is equal to -0.934, t-value is equal to -2.814. The coefficient for the cost of Installation LnCoI is B which is equal to 0.195 and t-value is -0.297. Finally, the coefficient for LnPTE is equal to 0.433, and t-value for this peers to 1.745. Variables of measure demand theoretical account are independent and they are extremely correlated. As we come to Model 1 and Model 2 comparing we have to look foremost to the Rsquare which will state us the relationship of independent variables to dependent variables. If Rsquare close to 1 it means the correlativity is really high and solid, if it is close to 0 it means there is no relationship. For Model 1 and Model 2, we can state that R square degrees are perfect and close to 1. In order to compare 2 theoretical accounts, we can state that Ln equation is much more dependable than additive equation.

**5. Drumhead and Decision:**

In decision arrested development analysis of both additive and “ln” equations show us that the independent variables related with dependent variable. However for farther premises we have to prefer “ln” equation for arrested development analysis. Because of the high Rsquare degree of ‘Ln’ equation which indicates that the independent variables affect dependent variable. Besides T-value of the ‘Ln’ equation besides much more relevant and dependable compared to the additive map. We learned from this arrested development that the demand of the solar energy for California depend on the monetary value of solar panel, cost of installing, monetary value of subsidies, authorities inducements and existent GSP per capita Income. We deduct that all of this independent variables have an single function on demand both negatively and positively.

**Bibliography**

- Anderson, M. February 12nd,2014 “California ‘s solar capacity turning quickly” Retrieved from hypertext transfer protocol: //www.bizjournals.com/sacramento/news/2014/02/12/californias-solar-capacity-grows-quickly.html
- California Solar Statistics ” California Solar Initiative” retrieved from hypertext transfer protocol: //www.californiasolarstatistics.ca.gov
- International Energy Agency ( 2011 ) , “ Solar Energy Positions: Executive Summary ” retrieved from hypertext transfer protocol: //www.iea.org
- Kiler, N. April 17th, 2014 “Solar Project Finance Journal”

Retrieved from hypertext transfer protocol: //www.solsystemscompany.com/blog/2014/04/17/april-2014-solar-project-finance-journal/ # sthash.2HwDY51E.dpuf

- Solar Energy Industries Association ( 2013 ) , “California Solar” retrieved from hypertext transfer protocol: //www.seia.org/state-solar-policy/california