Speed Matters - Site Speed is an Important SEO Factor Now!

Google loves speed, and there's absolutely no doubt in it. Most of the searches made on Google, return the results within a second. And Google doesn't want to limit its speed only till the search result pages [SERPs], rather, it is now trying to give the best user experience by showing fast loading pages in its top results.
May be a few years back Google/Matt Cutts had a different opinion, when content and information was given prime importance in search engine ranking. But presently with similar content in hundred's of pages across the web, page loading speed has to be made an important SEO factor.
The official news...
In a recent interview with WebProNews, Google's Matt Cutts has given some insights on how site speed may soon be an important ranking factor:
"Historically, we haven't had to use it in our search rankings, but a lot of people within Google think that the web should be fast," says Cutts. "It should be a good experience, and so it's sort of fair to say that if you're a fast site, maybe you should get a little bit of a bonus. If you really have an awfully slow site, then maybe users don't want that as much."

Moreover Site Speed has been included as a new feature under "Google Labs" section in Google Webmaster Tools too:


So anything new in SEO?
There are no additional SEO requirements due to this announcement, already loading speed is important to make the visitors happy, now it has been added as an important factor in search engines rankings.
1. Check your sites loading time at PingDom [quite accurate and recommended tool]
2. Other tools to check and optimize your blogs loading time.
3. Google itself is ready to help you to speed up the loading time - Google Speed and Helpful Tools [Check you Webmaster Tools account too - a must for everyone]
4. Also read this post [from OneCoolSite] on how you can optimize your site's loading speed.
5. Select templates with minimum graphics and javascript/css files.

Exactly when will Google update its algorithm?
May be Google has already included it, but Matt implied that it will be added to their algorithm in 2010.

Image credits: The Insider