Thursday, October 29, 2009 at 11:08:35 AM - by Danny Vo

Panelists at the Solar Power International conference called solar development trends in poorer countries a "scandal," reports the New York Times.

Only 1 percent of solar panels are installed in developing countries, said American Council on Renewable Energy president Michael Eckhart.

The problem is not a lack of support - in India, 32,000 banks make loans for photovoltaic (PV) installations - but inadequate grid technology. Because so many developing nations have rudimentary electrical infrastructures, PV systems must be installed on their own with batteries to store the sun's energy.

Batteries are expensive and must be replaced periodically, adding to solar projects' cost. Also, said panelists, rural villagers' electricity must be subsidized - and subsidization often falls on the shoulders of solar companies.

Installations can be made less expensive if rural residents' appliances are energy-efficient. A project engineer with a German solar company said that a village with incandescent light bulbs and old appliances costs $35,600 to power, versus $8,300 for a more modern village.

But there is vast potential for solar power in the developing world, said a policy and development officer from the Alliance for Rural Electrification - 44 percent of its population does not have electricity.