Intro
Solar is experiencing a huge resurgence worldwide. As practicality and cost effectiveness continue to improve, solar has already begun to take the lead in becoming one of the most sustainable energy solutions. There is a reason we have seen its adoption explode across Europe and the US; the dramatic increase in solar panel installations can be attributed to a combination of technological advancements, economic incentives, environmental concerns, and policy support. Here are ten key reasons:
1. Decreasing Costs
Over the last few decades, the cost of producing solar panels has dropped dramatically. The cost of solar panels and related installation expenses has dropped significantly due to advancements in manufacturing and economies of scale. This makes solar energy more accessible to a wider range of consumers.
2. Higher Energy Prices
The cost of electricity has seen a sharp increase over the last few years driven by the war in Ukraine and rising political tensions.‘Grid parity’ is a coveted term in the solar industry. It essentially means the point at which solar photovoltaic electricity fed into the national grid is at least as cheap or cheaper than the electricity generated by burning fossil fuels. This mark was surpassed in late 2021, and the gap continues to widen. People are starting to notice that, in many cases, they can spend much less on electricity by adopting solar vs. sticking with their current electricity supplier.
3. Technology Advancements
Improvements in solar panel efficiency, durability, and overall technology have made solar power more effective and reliable, encouraging more installations.
4. Energy Independence
Solar panels allow homeowners and businesses to generate their own electricity, reducing dependence on grid power and providing a sense of energy independence. This is particularly important for countries with limited natural resources.
5. Environmental Awareness
Solar is without question one of the cleanest sources of energy out there. Growing awareness of environmental issues and the need to reduce carbon footprints have motivated individuals and businesses to adopt renewable energy sources like solar power.
6. Government Incentives and Subsidies
Many countries offer financial incentives like tax credits, grants, and subsidies to encourage the adoption of solar energy. These incentives reduce the initial investment required, making solar installations more accessible.
7. Improved Financing Options
The development of various financing mechanisms, such as solar loans, leases, and power purchase agreements (PPAs), has lowered the barrier to entry. These options enable consumers to adopt solar without substantial upfront costs.
8. Grid Modernisation and Net Metering
Advances in grid infrastructure and the adoption of net metering policies, which allow solar energy producers to sell excess power back to the grid, have made solar installations more financially attractive and viable. For example, in the UK, you can sell excess electricity generated via the Smart Export Guarantee (SEG) scheme.
