While it’s always great to be an eco-warrior, paying for the fruits of your activism can often feel a little bit like gambling. After all, supporting renewable energy sources like solar energy is great, but on the other hand, the intermittency of solar power can make it more difficult to run other appliances like air-con. The good news is that over the last year or so, the cost-competitiveness of solar energy has improved, such that now it’s possible to invest in large-scale generation with a clearer conscience. This article will delve into the economic pros and cons of investing in solar energy, as well as how to finance it. We’ll cover everything from purchase price to ROI (return on investment), so that even the faint-hearted can consider the financial viability of solar power.
Pricing And Returns
The cost of a single solar module has come down significantly in the last year, making it cheaper to buy than previously thought. The result is that the economics of large-scale solar generation have improved dramatically. The cost of installation has also decreased, due to technological advancements, and it’s now possible to custom-configure large-scale solar generators to suit specific needs. In some instances, the cost of installation may even be free, depending on the size of the system.
The issue of what price to set for a solar power system has been hotly debated. Most large-scale solar generators are sold with a payback period of less than 10 years, so there’s no mortgage to worry about. This coupled with significantly decreased installation costs has resulted in a rapid rise in the popularity of solar energy as an investment option. In some places, like California, the price for electricity generated from solar power is significantly lower than the price of electricity sold by traditional energy companies. This has resulted in some experts predicting that solar energy may be cheaper than traditional energy sources as soon as 2022.
Another important factor to consider is the return on investment (ROI). Most financial experts agree that the ROI for large-scale solar generators is exceptionally high, due mainly to the fact that the price of electricity generated from solar power is usually lower than the price of electricity purchased from traditional energy companies. This makes large-scale solar generation a lucrative investment option, and one that’s attracting more and more people, both financially and environmentally aware. The payback period for large-scale solar energy is usually between 6 and 12 months, so even relatively short-term financial thinking suggests that solar power is a sound investment option.
Before investing in solar power, it’s important to set a purchase price and a time frame for when you’ll be able to recoup your investment. Most large-scale solar generators are sold with a payback period of less than 10 years, so there’s no mortgage to worry about. This coupled with significantly decreased installation costs has resulted in a rapid rise in the popularity of solar energy as an investment option. In some places, like California, the price for electricity generated from solar power is significantly lower than the price of electricity sold by traditional energy companies. This has resulted in some experts predicting that solar energy may be cheaper than traditional energy sources as soon as 2022.
Economic Effects On The Environment
In addition to providing financial benefits, investing in large-scale solar power has a number of environmental advantages. Not only does it reduce carbon emissions, it also provides a steady stream of clean, renewable energy, enabling appliances like air-con and refrigeration systems to be run when required. The ability to generate power at any time and place is also important, as it means that solar energy can be relied upon to provide a supply of electricity when needed, even during times of darkness, such as at night-time or during a cloudy day. As a result, it’s little wonder that so many experts predict that solar power will be the key to achieving renewable energy independence.
On the other hand, the environmental drawbacks of large-scale solar power are minimal. The primary issue is the amount of land that the equipment takes up – particularly panels, which are quite large and can take up a whole lot of real estate. On a side note, it’s also worth mentioning that the photovoltaic material used to create panels is generally less toxic than traditional energy sources. As a result, there are fewer environmental toxins released into the air during the production of solar power.
Energy Independence
One of the biggest advantages of solar power is that it provides a way to be independent of other energy sources. Whether fossil fuels or nuclear energy, the world would be better off without them. Unfortunately, as we’ve seen over the last year, without proper regulation or government intervention, the harm that they cause to the environment is often severe. With solar energy, there’s no need to worry about what happens if the sun doesn’t shine or if the wind doesn’t blow, as these are inherent dangers that traditional power sources pose. This is vital when considering the fragility of the environment and the potential damage that uncontrolled energy consumption can cause. With fossil fuels and nuclear energy, the supply is often uncertain and susceptible to natural disasters such as floods and earthquakes, making it difficult to avoid peak-time electricity purchases. Solar power provides an opportunity to be energy-independent, and for some, the peace of mind this brings is reason enough to invest.
A Powerful Tool For Generating Income
Investing in solar power provides a powerful tool for generating income, aside from generating electricity and being environmentally sound. Some financial experts have predicted that solar power may be cheaper than traditional energy sources as soon as 2022, which means that as well as providing financial benefits, it also has the potential to be a lucrative investment option. If you’re looking for a steady passive income stream, investing in commercial solar power could be the way to go.
Many large-scale solar generators are also lucrative opportunities for profit, particularly those that are leased to institutions, as the lessors usually enjoy financial remuneration for leasing out their solar power. As a result, many large-scale solar generators are able to offer powerful investment returns, not just because of the electricity they generate, but also because of the extra revenue that they bring in. The combination of steady profit opportunities and a powerful tool for generating income makes large-scale solar power a sound investment option, as well as a source of continuous income. As demand for affordable housing is growing, solar power could also be a lucrative option for property investment, as panel installation on a residential property often provides a handy way of generating additional income.
How To Finance It
One of the main issues that investors or potential investors in solar power often face is how to finance it. While the cost of a single solar module has come down significantly in the last year, thanks to technological advancements and falling panel prices, the cost of a complete, standalone solar power system continues to be high. This is mainly because while the cost of the individual parts has dropped, the cost of installation has increased. This reflects the fact that installing a large solar power system is not like installing a regular home appliance, as there’s a lot more that goes into it. For this reason, many large-scale solar generators are sold with a payback period of less than 10 years, so there’s no mortgage to worry about. This coupled with significantly decreased installation costs has resulted in a rapid rise in the popularity of solar energy as an investment option. In some places, like California, the price for electricity generated from solar power is significantly lower than the price of electricity sold by traditional energy companies. This has resulted in some experts predicting that solar energy may be cheaper than traditional energy sources as soon as 2022.
If you’re looking to invest in solar power and you don’t have the cash in hand, mortgages are often a good option. Not only do they offer the security of a steady income stream, they’re also often available for purchase with low-interest rates. Remember, the cheaper the better when it comes to mortgages, so make sure to look for the best rate available if you do decide to take this route. Some financial experts recommend using a home equity loan to fund an investment in solar power, as these usually have lower interest rates compared to standard mortgages. This is mainly because they’re issued to investors who are considered more “risky” by the lenders, due to the nature of their income. If you’re looking for a steady passive income stream, investing in commercial solar power could be the way to go.