Solar energy as an option is no longer “pie in the sky” or “experimental”, but is now undeniably mainstream. CitiGroup has joined UBS, Deutsche Bank, Morgan Stanley, Barclays, and others in publishing predictions of a positive, long-term outlook for solar energy. According to the recent CitiGroup report here, solar will see continued growth in energy generation market share and will become more competitive with fossil fuels due to favorable economics, fuel diversification by utilities, and new financing structures.
The reports recognize the favorable economics of power developed by solar and predict that these factors will remain improve in the future. Solar manufacturing costs have declined significantly and energy efficiencies have improved. The reports recognize that solar is competitive in lower costs per energy unit. As the US economy recovers from the Great Recession and manufacturing makes a comeback, it will be recognized that most major new buildings and renovations should at least consider solar. Solar is also growing worldwide, in both industrialized and emerging nations. Even new construction in oil-rich Middle East includes solar PV in many instances. Finally, solar will benefit by the growing trend of distributed power or microgrids. Entities, such as corporate parks, industrial facilities, and neighborhoods can develop their own source of electricity, independent of the centralized grid, to continue to function in case of climate change effects or catastrophe. On-site solar PV can be part of many distributed energy plans.
Many states have rules mandating their utilities generate a certain percentage of their power from renewable sources. Many utilities also realize that this is good business practice to “spread the bet” among many sources of energy. The recent increases in cost of coal and its heavy regulation is certainly an example of a fuel that went from being among the cheapest to among the most difficult and expensive in a short period. There is even concern about how long natural gas will stay relatively inexpensive.
In the last decade of increased installation of solar PV, many government and financial institutions have implemented financing incentives for solar “farms” down to one-family homes. Capital is available to address start-up costs for production and installation.
The CitiGroup report believes that solar energy would conservatively represent 11.2% of all newly-installed generation in the US in the next few years, making it a permanent part of our energy options. This represents a trillion dollar investment and opportunity to grow. Solar and other renewable options are now mainstream and should at least be seriously considered in all new constructions and energy upgrades.
CCES has the experts to assist you in evaluating the sources of energy of existing or planned changes in your buildings and facilities. We can evaluate available financial incentives and estimate relative energy cost savings of a number of options, from updated technology to renewables and distributed power (microgrids). Contact us today at 914-584-6720 or at karell@CCESworld.com.