Solar power has faced an uphill battle for most of its existence. At the outset, the cost of entry was so high that it was prohibitive to virtually everyone. Once costs started coming down, working with government officials to incentivize helping spread this technology became the huge fight. However, solar has endured, and today, despite tariffs on foreign-produced solar installations driving up prices once again, solar should still be expected to become the dominant source of new electricity generation within the next half-decade.
Yuri Horwitz, writing in Greentech Media which is a publication about the clean energy business, estimates that by the year 2022, the majority of energy produced in the United States will be produced by solar installations. Regardless of legislation trying to slow industry growth and outdated insistence on fossil-fuel based electricity generation, such as coal, solar still continues to spread like wildfire while coal and natural gas continue to decline.
Here are a few reasons why Horwitz and Greentech Media believe solar is here to stay and has nowhere to go but up in terms of growth:
People Support Solar
Despite the fact that politicians have continued to campaign on putting America’s coal and natural gas industries back to work, they still continue to decline and are being relied upon less and less. Many Americans list environmental concerns as one of the issues that’s important to them, and the majority support solar and other alternative energy sources that are clean and better for the environment.
Costs Are Dropping
Solar is already competitive on the market, but as more and more people make the switch to renewable energy, the costs will only continue to drop. Power-purchase agreements are at some of their lowest prices in history, and it’s believed that agreements executed during this year and next year will likely send these costs below that which it would cost to support a natural gas power plant.
Solar is a Hot Investment
Because of the solar industry’s rapid growth and viable long-term sustainability, solar industries have become a hot ticket for investors looking to diversify their portfolios. This infusion of investment capital will only continue to improve the cash available to support solar installation financing. The more investment capital there is, the cheaper financing becomes, and the more affordable it becomes for the average homeowner to make the switch to solar energy.
Storage Costs Are Dropping
Solar energy is great, but the grid can’t become truly renewable and clean unless every solar installation also has a way to store energy that is produced but goes unused. This is generally done with gigantic battery setups. Without a storage solution, the average homeowner either has to revert back to purchasing power from the grid or deal with being in the dark for a little while. However, a battery backup system can keep the lights on during nighttime hours, bad weather days, or other times where solar panels aren’t producing enough energy to power your home.
For many years, the cost of these battery setups was extremely prohibitive: even smaller setups that could only keep the power on for a few hours cost tens of thousands of dollars or more. But as lithium batteries became cheaper, these systems also dropped in price, and today you can purchase a setup that can provide power for an average home for several days at a time for less than $10,000. This makes solar technology far more appealing, as now home and business owners can remain confident that their lights will stay on even if the sun goes down.
Interested in making the switch to solar? Call SunPower® by Sea Bright Solar today at (732) 253-4052 and speak with one of our New jersey solar installation experts!