Following the outbreak of the Arab-Israeli war in 1973, Arab oil-producing states imposed an embargo on oil exports to the United States. The embargo lasted from October 1973 to March 1974, and the long gas lines it caused highlighted the United States' dependence on foreign petroleum. Congress responded by enacting the Solar Energy Research, Development and Demonstration Act of 1974.

The act stated that it was henceforth the policy of the federal government to "pursue a vigorous and viable program of research and resource assessment of solar energy as a major source of energy for our national needs." The act's scope embraced all energy sources which are renewable by the sun—including solar thermal energy, photovoltaic energy, and energy derived from wind, sea thermal gradients, and photosynthesis.To achieve its goals, the act established two programs: the Solar Energy Coordination...