The scope of human use of natural resources is steadily expanding. The consumption of coal and oil is accelerating. But the demand for coal, gas and power is greatest in cities. Coal currently plays a dominant role in the world’s energy demand, accounting for nearly 28% of the total demand. But the coal mine has dried up. The situation in oil is exactly the same. Renewable energy is the key to meeting energy needs and reducing carbon dioxide emissions. At present, experts in the field of renewable energy pay more and more attention to solar energy, especially as a feasible alternative to fossil fuels.
In my final paper, I will explore and show more findings and studies related to the economic impacts of solar energy and I hope solar would occupy a greater part of the total energy in the years ahead.Executive SummaryAs we all know, the solar energy is renewable and conducive to protect our environment.
The sun provides the solar energy for the broad masses of the people, which makes the solar the most emerging energy in the United States.
In some people’s views, as a luxury technology, solar energy is still not regarded as a good choice by most homeowners in the United States. However, in fact, solar energy not only can bring considerable monthly savings on your electricity bills but also has long-term investment value. Solar energy has the potential to play a dominant role in the United States in the future and become the cheapest energy to generate electricity.
Here is a guide to show you more information about the benefits of solar in the aspect of economics. Introduction and BackgroundWith more and more people are convinced of the detrimental impacts caused by burning fossil fuels, the consumption of solar energy has grown all over the world.
A number of people in the United States hope that solar energy will ultimately become more and more cost-competitive so that guide them to the development of low carbon economy. In fact, due to increased production, government subsidies and increasing environmental problems, the cost of solar energy production has declined. According to the Berkeley Lab, for a brief period early in this decade, a solar array on the roof of a family house cost exceed $50,000 while the price sells for less than $14000 now. In addition, in the recent years, the solar energy industry shows a marked increase, while the cost of solar energy has dropped by nearly 70%. To be honest, solar energy generated by some markets has been cheaper than fossil fuels like natural gas, coal, which shows an emerging opportunity of solar energy in the facet of economy.At present, increasingly people are considering about installing solar PV systems. Larger enterprises such as Walmart and Apple are investing their money into renewable solar systems and turn their stores, offices, and facilities to solar energy as well.
In this paper, let’s take a closer look at the economic benefits behind it.Discussion of the IssueWith the decline of cost, the significance of solar energy is rising. Actually, the economic benefits of solar energy are polishing up. In general, solar power is cost-effective choice.Significantly reduce your electricity billWhen you turn to solar power, your monthly electricity bill will be lower than the cost of utilities you are paying at present. Here are some reasons that enable people to save money with solar power system.The cost of your solar power will depend on the amount of electricity your solar panel generates, how much electricity you use, and your electricity utility bill. Tesla shows customer’s monthly electricity bill in California. The monthly electricity cost before solar is $179, while after solar is $142, which saves $37 per month. For over 30 years, it is estimated that utility bill for electricity will save you almost $50, 000 for electricity rates increase by 2% every year.It is really quite conducive to reduce your biggest monthly expenses.
Due to the complex unpredictability, solar energy makes it hard to forecast and control the budgets. But if you install solar panels, it will be easier to adjust electricity cost and estimate the cost, which is a good opportunity for people who make steady money and firms which benefit from steady cashflow.Solar can boost the value of propertiesWhile solar come into the prevailing market, recent studies have tried to assist homeowners, real estate valuers and experts by estimating the proper price of the solar systems for selling houses. Following is an outline of the survey findings:According to the a recent 2014 research from the Lawrence Berkeley National Lab (LBL), based on previous studies, they obtain a result that in California, the price of houses with solar panels is higher than that of without solar panels. In addition, solar panels increase about $4/Watts to the resale value of house, which implies that an average scale system is able to provide increased value of $15,000 for your home.
The National Bureau of Economic Research reveals that solar photovoltaic system has increased the price of the real estate sales by 3.6%. With installations of solar panels, the average selling price of the property is expected to add approximate about $22,554.Colorado Energy Office provides an analysis of the impact of solar photovoltaic systems on the home buying process, which indicates that companies with photovoltaic systems usually get a better-rated bond at a higher market value and always reduce marketing time. The rented solar photovoltaic system leads to more sales problems in many situations.I am grateful for the market researches which makes us come closer to the simple truth that solar is also an attractive option when homeowners offer their house for sale.Solar offers a good opportunity for investment when it comes to investment, the sustainability and stability of price compared to fuels enables solar to be more and more charming while the cost is still declining.
As technologies improve, investors, brokers, insurers, and larger banks appear to be increasingly pleased with smaller risks caused by variable weather and unreliable components. Therefore, investors are ready to offer funded debt to solar energy, which is usually lower than the cost of traditional project finance.The research done by the NC Clean Energy Technology Center of North Carolina State University, ranked the best in terms of solar energy investment among 50 greatest cities in the United States, which revealed that customers who invested in the 5 kilowatt solar photovoltaic system saved an average of $44 to $187 a month in their first year of having their own system. Meanwhile, the data offered is before the loan, lease or PPA payment.As a result, to invest in solar energy, you might lead to increased income and save a lot of money.Solar energy generates job opportunities for AmericansThe booming growth of solar energy provides a real chance to find jobs.
According to data offered by the Solar Foundation, long term trends of solar industry will continue to grow. By the end of 2016, the magnitude of people who work in the field of solar energy had reached 260,077. In the same year, solar industry became one of the fifty new job creation, and the growth rate of employment in this solar industry is 17 times that of the whole economy. Over the past 7 years, the job opportunities in the solar energy industry has risen by 168%, the number of jobs offered increases from 93,000 in 2010 to 250,000 jobs in 2017. The salaries of these jobs are higher than the average level of the United States and can be found in every state.To sum up, the data shows solar energy industry gives impetus to the U.S employment growth.The reduced cost shows the insight market of solarA dramatic drop of the cost of solar is the core reason of the potential.
The price of purchasing rooftop solar photovoltaic systems for residential in the United States has dropped from about $7 / Watts in 2008 to $4 or lower / Watt in 2013, and this decrease is mainly due to deep cuts in facilities cost. For example, according to GTM Research data, from 2008 to 2013, the module cost came down by almost 30% annually, but the accumulated installations increased from 1.7 gigawatts in 2009 to a calculated 11 gigawatts in the year-end of 2013.Although module costs should keep on declining, there is a greater chance of installation and service costs. Through out of the country, residential solar energy as the owner’s financing options (lease, loan and PPAs) has become more extensive.A survey conducted by the Pew Research Center showed that solar energy is one of the most popular energy sources in the United States, with the data that 89% of respondents show widespread support to it whereas 9% are against to build more photovoltaic farms.
At the same time, the survey shows that solar energy have been recognized in the whole political field. About 83% of the conservative Republicans and 97% of the Liberal Democrats approve of more solar power farm. In terms of individual selection, 4% of Americans said there are solar panels at their homes, and 37% said solar panels systems have been taken into account, which reveals the emerging economic opportunity of solar. Residents in the western and young people are more likely to own or plan to have solar photovoltaic system. The major motivator of this decision economically is a chance to save on utilities (92%), and the solar tax credit (59%).The sharply dropped cost of solar PV system improves the competitiveness of solar power generation, not only in the commercial and residential field, but also many other areas. In 2017, China is devoting substantial contribution (nearly $361 billion) in renewable energy and solar accounted for 63% of the total investment through out the world.
After the catastrophe of Fukushima Daiichi nuclear disaster, the government of Japan is attempting to substitute most of its solar energy for nuclear energy. In the Europe and America, the utilization rate of solar energy has grown by more than four times since 2009.Future PredictionSolar energy has been no more to be considered as a curious thing. Now, it is easier for us to see rooftop solar panels or larger solar farms. Gradually, as technology evolved, solar has been in common usage by not only renewable energy supporter, but also investors and homeowners who want to save money. The shocking data and surveys show that over last few years solar energy has been expanding in the number of solar PV system installations and contribute to economic development in the United States. Employees in solar energy industry are more than twice the amount in 2010.
In 2015, people employed in the solar energy industry has reached 210,000. During the past couple of years, prices have fallen by more than 60%, which shows the possible to derive some economic benefits. At the same time, the number of solar panels installed throughout the United States continues to keep rising. By the end of 2015, ITC has been extended for five years to make the market more stable and is expected to contribute to the sustained development of solar energy. By historical references, prices will prices keep going down along with the capacity increase, which makes solar a cost-competitive source of electricity. The insightful reports conducted by Sunshot study point out that the cost parity of solar can be achieved by 2020 without being subsidized.