Why Invest in Solar Energy?

The topic of ‘going green’ has been covered in great detail over the last year, with multiple news stories heralding a ‘new era’ in environmental awareness. With climate change being a major concern, more and more people are considering ways to ‘go green’. What is often overlooked, however, is the fact that clean energy offers fantastic long-term investment opportunities. Here are just a few reasons why you might decide to jump on board the solar train before it leaves the station.

Clean Energy

The fact that solar energy is clean is the first point which should appeal to anyone. Photovoltaic (PV) technology, which captures the sun’s energy and turns it into electricity, has been around for over 80 years and is considered highly reliable. When it comes to investing in clean energy, you can be sure that you are making a long-term investment with minimal risks. Your money will be spent on purchasing PV panels and other equipment, none of which will depreciate in value.

Long-Term Investment

The second point which should convince you to invest in solar energy is that it is a long-term investment. In general, investing in solar energy is a great way to ensure that you are making a long-term commitment to a particular company or product. The market for photovoltaic equipment is growing at a rate of around 20% per year and is expected to reach almost $16 billion worldwide by 2020. If you want to make a long-term investment in a company which is predicted to have a high rate of return, solar is certainly a sound choice. Furthermore, many equipment manufacturers offer very high levels of customer service, which can further appeal to any potential buyers – after all, who wants to buy something which they cannot set up themselves or test out themselves in the first place?

No Fuel Cost

One of the biggest costs associated with running a business is the cost of fuel. Whether you choose to run your car or van on diesel or petrol, you will always end up paying for the fuel. The cost of fuel has increased far beyond what most businesses can feasibly justify, creating an environment where businesses have to find ways to save money wherever they can. Many companies are turning to renewable energy sources in an effort to reduce their fuel bills and become more eco-friendly. One of the main benefits of solar energy is that it does not cost anything to run. You can generate your own electricity without the need to buy anything extra. The market for solar energy is predicted to grow by 20% per year, while the global demand for renewable energy is set to double by 2022.

No Capital Costs

An additional massive drawcard of solar energy is that it has very low startup costs. Just about anyone can afford to purchase the kits which are necessary to get started, consisting of a solar panel, an inverter and some basic wiring. From there, all you need is a suitable location for the unit and you can start generating electricity immediately. Even better, you can begin generating income without ever having to invest your own money in the project. The high rates of return which can be achieved through properly optimized solar projects make them attractive investments for any sized business or individual. What’s not to love?

High Payback Period

A further strong point in favor of solar energy is that it has a very high payback period. This simply means that once you have paid back the initial investment, you will begin to see a profit. In comparison, other renewable energy sources such as wind farms and hydroelectric schemes often have payback periods ranging from 3 to 5 years, while biomass energy usually has a much shorter payback period of around 12 months. The fact that solar energy has such a high payback period makes it a viable choice for any business or investor who wants to get their money back with minimal risk. Of course, this depends on your definition of ‘minimal risk’ – the further you go into detail, the more you will be able to pinpoint the risks associated with investing in solar energy. The majority of equipment manufacturers offer very high levels of customer service, which makes them ideal for any size project or business. If you need help, they will usually provide a local engineer to lend you a hand for free.

Good For The Environment

The global community is becoming more and more environmentally conscious and conscious of ways to reduce their individual impacts. Individuals and businesses are learning to ‘go green’ – to use less energy, reduce their carbon footprint and become more eco-friendly. One of the biggest factors which will continue to drive the growth of the solar industry is the environmental benefits which it brings. Not only does it have a very low carbon footprint, it also generates electricity which does not contribute to pollution. Individuals and businesses which choose to go green will usually be motivated by a combination of factors, but one of the biggest draws will be the fact that solar energy provides a great environmental solution.

Considering all of the above, it is clear to see that clean energy offers incredible investment opportunities to those who choose to explore it. If you are interested in making a long-term investment which will pay off handsomely, why not give it a try?

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