A subsidy, or government incentive, is a form of government expenditure aimed at stabilizing the economy. These subsidies can take various forms, including direct expenditures, tax incentives, soft loans, price support, and the provision of goods and services.
The development of commercial solar power relied heavily on government support. Solar photovoltaic (PV) technology originated in the United States when Daryl Chapin, Calvin Fuller, and Gerald Pearson at Bell Labs demonstrated the silicon solar cell in 1954. The initial cells had an efficiency of only 4%, significantly lower than the 25% efficiency some modern cells achieve. Due to high costs, early developers sought alternative markets.
The technology found a practical application in the aerospace sector, where the U.S. Army and Air Force identified solar PV as an ideal power source for earth-orbiting satellites. Hoffman Electronics was contracted to supply solar cells for the space exploration program, and the first commercial satellite, Vanguard I, launched in 1958 with both solar cells and chemical batteries. By 1965, NASA was using nearly a million solar PV cells. Early government demand and research support led to substantial cost reductions and performance improvements, with the price of PV cells dropping from $300 to $20 per watt between 1956 and 1973.
As a result of government involvement in solar PV development, 13 of the 14 top innovations in PV were developed with the help of federal dollars, nine of which were fully funded by the public sector.
What is the primary purpose of the passage?
A. To explain the historical development of solar PV technology and highlight the pivotal role of government subsidies in that development.
B. To compare the efficiency of early solar PV cells with modern solar PV technology and discuss potential future innovations.
C. To analyze the benefits of government subsidies across multiple sectors, focusing on renewable energy as an example.
D. To argue that private companies were the primary drivers of innovation in solar PV technology, with limited government involvement.
E. To outline the economic impact of solar PV technology on the U.S. space program and the subsequent commercial market.