A Guide To Solar Installation

Why to Invest in Renewable Energy?

Even those who don’t invest in the secondary market, are aware about the growing renewable energy industry. We have come to a point in history where there is nothing “alternative” about “alternative energy”; as renewable energy is now permanently integrated into the global energy economy. In addition to that, renewable energy is rapidly eating in to the market share of carbon based energy, including natural gas.

However, 2017 has been a rollercoaster year for renewable energy sector. While on one hand China smashed every estimated target for solar installation and price of solar and wind energy fell rapidly, on the other hand Donald Trump withdrew the United States from Paris Climate Agreement. President Trump’s move resulted in investors moving the money away from the renewable energy sector resulting in the fall in prices of renewable energy companies’ stocks. However, very soon the sector bounced back dramatically. So what can we expect from the year 2018?

Renewable Energy – Facts Don’t Lie

We spoke to renewable energy enthusiast and investment advisor, Michael Dinich, about investing in renewable energy. He shared some interesting  facts, predictions and tips to lead a financially rewarding green living.

According to him prices of solar panels have dropped by around 62% since 2009. Even offshore wind energy costs have come down to $77 per megawatt hour in 2017. In auctions around the world, governments are getting record low bids from solar and wind power producers.

He also added that

  • Around 70% of the $10 trillion spent on new power plants around the world (until 2040) will be invested in solar and wind energy.
  • The solar power cost is set to drop by another 66% by 2040.
  • As early as 2021, solar power will be cheaper than carbon based power in high power consuming countries like China, India, Germany, Mexico and the UK. Even now solar power cost is on par with coal in Australia and some European countries.
  • Wind power is also estimated to fall to record lows over the next decade.

However, according to Michael Dinich, the bottle neck is storage. The estimated growth will not be possible without efficient storage. As, the age old excuses of “The sun doesn’t shine at night” and “the wind doesn’t blow all the time” excuse will come to haunt the sector. New companies are gearing up to tap this opportunity, resulting in additional avenues for us to invest in this sector.

Green energy enthusiasts who don’t want to invest their money in the secondary market can invest in installing solar panels. In addition to long term benefits one can also claim tax deduction on solar loans.