4 Reasons Solar Energy is Changing the Investment Landscape

The world’s solar power industry is growing each year as fossil fuels are in a slow but steady decline. However, it can be confusing to hear opinions that renewable energy sources are not on the same level as fossil fuels. Below are several reasons why solar power presents a viable way to power the country.

More Jobs

In the U.S., more people are participating in the solar energy industry than are mining coal. While many argue that switching to clean energy will come at the expense of the job market, it’s false. Solar is growing more than ten times faster than America’s economy. While the fossil fuel industry is cutting jobs, solar power companies are adding them.

Pricing

Although the first solar panels were prohibitively expensive, they have seen a constant drop in pricing over the past 30 years. Over that time, prices have gone from almost $75 per watt to $.75 per watt. Compare that to the price of coal, which has risen over 13% since 2008. While some argue that solar is only feasible because of government subsidies, the gas, coal, and oil industries are subsidized at a much higher rate.

Capacity

With the price of solar rapidly declining, more individuals and businesses are installing solar power systems. The U.S. is one of only a few countries to have more than 10 gigawatts of solar capacity, and installations are growing rapidly. By comparison, 175 coal-fired power plants in the United States will be closed down over the next several years. This is a reflection of the increasing cost of coal and the strictness of environmental regulations.

Investment

While fossil fuels have been an integral part of investors’ portfolios for many years, their time may be drawing to a close. Fossil fuel producers’ market values are based on how much oil they still have in the ground. If rules are implemented to prevent the atmosphere’s CO2 levels from rising higher than 450 ppm—the point at which irreversible climate change is thought to occur—much of these reserves will be unusable. Here, solar power presents a viable, long-term alternative for the world’s investors. Those interested in investing in solar energy can get more information from my site.