N EDISONPEST and Porter's Five Forces AnalysisPEST AnalysisThis section applies the PEST analysis framework to understand the macro-environment and considers the energy industry renewables as a whole in the current political and economic context. , sociocultural and technological landscape.Political/Legal FactorsThe future of the solar energy industry in the United States will be shaped not only by economic growth, but also by the rate of decline of petroleum resources and global awareness consequences of human-induced climate change. . Policy responses to this realization in the United States include: new policies, legislation, and tax incentives for businesses and private households to promote growth and investment in the solar energy industry. United States policy and legislative developments regarding solar energy include the SunShot Initiative, the American Recovery and Rehabilitation Act (ARRA) of 2009, and the Energy Improvement and Extension Act (EIA) of 2008. SunShot was signed into law in February 2011 and aims to "make the total cost of solar energy fully economically viable for everyday use, so that all Americans can benefit from this clean energy." renewable energy source. »1 ARRA has invested $114 million in the solar energy industry for research and development of photovoltaic systems, concentrated solar power, and high-penetration solar deployment.2 ARRA and The EIA created tax credits for homeowners and businesses for their investment in solar energy.3 Implementation of these policy and legislative initiatives promotes the growth and development of the solar energy industry and therefore has a positive impact on Sun Edison.Economic factorsEconomic factors that affect the solar power industry are...... middle of paper.. ....ing crystalline silicon and vertically integrating their manufacturing process , thereby further weakening the bargaining power of suppliers.Threat of SubstitutesThe threat of substitutes to solar energy is very high. Solar energy is mainly used for electricity generation, which makes the range of substitute products quite wide, as many types of energy sources can also produce electricity. The main alternatives to solar energy are nuclear energy and fossil fuels - coal, oil and natural gas. Even though they are not renewable energy sources, they are considered substitutes for electricity generation. Solar energy also faces many substitutes in the renewable energy sector. Wind, hydroelectric, bioenergy and geothermal energy are all substitutes for solar energy in electricity production. Intensity of Competitive Rivalry Sun Edison operates in the semiconductor industry.