If you’re at all interested in the environment — or, more precisely, electricity — you may be surprised to learn that an investment in Solar panels is now widely seen as a great investment, not a waste of money. In the latest report published by the Center for Climate and Energy Solutions the rise of renewable energy that has been happening over the past 20 years:
The market size of renewable energy is growing just as fast as coal — up from virtually nothing to 24% of the global electricity market in 2016. Though the majority of generated electricity came from hydropower, by 2050, wind and solar energy could well overtake coal as the leading source of electricity accounting for approximately 50% of world electricity.
And although environmental concerns can be cited as a driving force behind this massive spatial shift towards renewable energy, what truly constitutes the underlying impetus is the aggressive reductions in the cost for solar panels made possible by the recent advancement of technology and conducive policies.
3 Reasons Why Solar Panels Are A Great Investment
1. Price Drop & Improved ROI
As of June 17, the price of solar panels had dropped by 62% (average annual decrease) . That means that homeowners and businesses can install these low-cost panels and generate more electricity at lower costs than ever.
According to SunWorks (a leading provider of social solutions operating in the United States), a typical 5 kW solar installation can easily yield up to 20% return on investment in the first year . That’s another reason to buy solar panels and its good news for those individuals who fear bulk upfront cost.
The new economics of solar also means the cost of electricity is on an even playing field with conventional fossil fuels. And always remember, there isn’t any such thing as a free lunch. In other words, there isn’t any such thing as free energy.
But in addition to making good investment sense, solar panels are also a very good idea for the environment and climate change.
2. Solar Panels Make Greenhouse Gas Emissions Go Down
First of all, let’s be clear about how much electricity we can get from solar. Even at the earlier price levels, the return on solar power is high enough to offset about three-quarters of the energy produced by coal, the most common type of fossil fuel. Because the cost of solar panels is plummeting, the return on solar power is rising rapidly.
But what’s more, the decline in the cost of solar panels is contributing to the decline in the cost of electricity. As wind turbines and other similar technologies become cheaper as well, the overall cost of electricity will come down.
3. Support from Government
The federal government has pushed more aggressive solar policy, but it has also encouraged the development of renewable energy by funding giant research projects, encouraging the use of solar energy in federal buildings, and auctioning off clean energy permits to all comers.
In fact, on February 5, 2020, the U.S. Department of Energy announced that it would provide $125.5 million in fresh funding to support and advance research on improving the efficiency of solar panels.
Also, this year 2020, you can get a 26% FTC (Federal Tax Credit) on your solar panel investment. This means that for every thousand dollars spent ($1000), you will receive a tax credit of $260 back.
The long-term benefits of investing in solar panels are not only “personal” monetary savings, but also include technological advances, carbon emission reductions, job creation and taxes. And if all this isn’t enough to make solar panels attractive, consider that soon, you’ll no longer have to depend on your electricity provider for most of your power needs.
The benefits for the environment, the economy, and a greener planet for our future generation, for the first time in recorded history, will be realized, when renewable energy becomes the norm. And by investing in solar panels, you can be a part of it.