One of the most effective uses of solar energy is to heat energy-efficient houses and to heat water for residential use. Since it is not necessary to convert the sun­light into electricity, it is a much more efficient process. It is likely that this will

be one of the largest uses of solar energy, reducing the demand for electricity or natural gas to heat water.

Limitations of Solar Power

What are the limitations of solar that make it unlikely to be a large part of the overall energy portfolio? Remember that it currently only provides 0.04% of our electricity and the EIA projects that it will only be 5% of the renewable energy mix—excluding hydropower, the largest component now—by 2035. The biggest limitations are location, intermittency, footprint, and high cost.