In 2022, the global demand for clean energy is projected to hit 16.9 billion USD, with the Asia-Pacific and Middle East regions set to gain the most from the growth in clean energy demand. With energy concerns plaguing the world, and the effects of climate change becoming more apparent, the time is right to consider investing in renewable sources of energy. One option is solar energy, a clean, sustainable and profitable investment option that offers viable returns. In this article, we outline the key benefits of solar energy.
Clean & Sustainable
The energy produced by solar power plants is considered clean energy, as it does not emit any harmful chemicals or greenhouse gases related to combustion. Furthermore, as photovoltaic cells continue to improve in efficiency, the amount of energy that can be harnessed from solar radiation will only increase.
The solar industry is also a sustainable one, as the technologies involved in converting solar energy into usable power are designed to be recyclable and durable. Solar power plants can operate for many years without any significant maintenance. The use of renewable energy sources is essential to combatting climate change and minimizing our dependence on fossil fuels.
The cost of electricity generated by a solar power plant is fixed and independent of the demand for energy. As a result, the energy produced by solar is often considered cost-efficient and a financially viable option. The power purchase agreement (PPA) is a type of financial agreement that makes solar energy more affordable for commercial and industrial customers. PPAs allow energy producers to commit to selling power at a set price for a set number of years. In return, customers agree to pay for the electricity they use. A 10-year fixed-price PPA for solar power can be cheaper than buying power from a traditional energy supplier, particularly as the cost of electricity generated by solar continues to decline and the demand for renewable energy increases.
Due to its clean energy source and scalability, solar energy is an ideal option for commercial and industrial customers who need power generation capacity that can be easily expanded as needed. Solar installations that produce up to 1 megawatt can be found in emerging markets like India and China, where the demand for electricity is growing rapidly.
Even smaller-scale solar power plants, such as rooftop solar panels, can be used to provide some energy for personal use. In the future, advanced solar photovoltaic (SVPV) technology will continue to improve the affordability and scalability of solar energy, driving down the costs and increasing the popularity of this sustainable energy source.
In the past, many industries were hesitant to adopt renewable energy sources, as they perceived these industries as being in competition for natural resources. However, recent advancements in SVPV technology have made it possible to generate clean energy while minimizing the impact on the environment. This is why many commercial and industrial customers are switching to solar energy, as it is more sustainable and less likely to be restricted by natural resource constraints.
The demand for clean energy is on the rise, with 20% of the global population now depending on solar power for their energy needs. The effects of climate change are becoming more apparent, leading to a rise in the demand for renewable energy and an increase in the popularity of solar energy. In the next five years, we will see an increasing number of solar-powered homes, roadways and businesses, contributing to the growth and popularity of solar energy. With time, the price of solar power will continue to decline, further increasing its attractiveness as an investment option.
The growth in the demand for clean energy has opened up a whole new opportunity for investors who want to get involved in the renewable energy sector. Those who are looking to generate long-term capital appreciation of their investment via a power purchase agreement can secure commercial-grade solar energy at fairly low-cost prices. Furthermore, as the world becomes more aware of the effects of climate change and the importance of sustainable energy, those who invest in solar power will likely see the rewards of their investment in the form of lower energy costs and a more stable environment.