- Posted by adminsolar
- On March 2, 2020
- 0 Comments
A large part of the discussion regarding any sort of renewables in comparison to conventional fossil fuels is the fact that the primary existing resources we rely on, like natural gas, coal, and oil, are headed toward depletion. With this said, these fossil fuels are still the predominant bulk of our energy. Renewables such as sun-based and wind-based energy are on the rise, but account for only about 2 to 3% of all energy worldwide. Because of this, it’s key to take a closer look on how the two different items compare, and why so many people are excited about developments with your local solar company in Louisville, CO.
To begin the conversation, using solar panels in Erie, CO, will be preferable to fossil fuels when it comes to optimal work. However, a lot of other people will consider natural gas and coal to be more reliable because the infrastructure is already there to support it. So, what breaks the tie here? The good news is that renewables have largely caught up to fossil fuels in this regard.
It’s not that easy to make a direct comparison in the cost conversation, though. Government subsidies have a key role when it comes to furthering the growth for any new energy source. So, trying to create a straight comparison between the costs for each category is difficult. Internationally, this is even more difficult to figure out. The reason for this is that out of all the G20 membership countries, not all of them are working to phase out fossil fuels as they should. These countries cover over 85% of the world’s GDP, and as of right now, they are still spending around $452 billion annually for fossil fuel subsidies. The U.S. is the largest culprit here, and this isn’t likely to change.
Regarding sun-based energy, 30% of current U.S. sun-based installations are covered by the existing Investment Tax Credit (ITC). This will hold out until 2021. When this happens, commercial installations will convert to a permanent 10% credit.
In reality, while this subsidy has only been present for a short period, it represents a small fraction of the general cost that taxpayers provide to subsidize fossil fuels. If you take those subsidies out, sun-based energy will suddenly become among the cheapest resources worldwide. To give you an idea of the potential future, look at the power purchase agreements present in countries such as the UAE and Chile. This is likely to progress as time goes on. Right now, sun-based photovoltaics is a matter more of technology over fuel. Because there’s no scarcity and more research being done, the costs are more likely to decrease year by year.
With this said, a lot of people are currently aware of the major issues with fossil fuels regarding pollution as well as resource scarcity. One example is the cost and issues involved with installing a production factory. At the core, the operation cost of fossil fuels is already more than sun-based resources, and the divide will only get larger.
How is this the case? Sun-based energy is essentially installed on either a ground mount or rooftop, necessitating a resource that’s already present. To give you an idea, fossil fuel requires degradation of the earth for production. A lot of people may be aware of greenhouse gases and their impact on climate change, but what’s not as clear is the fact that drilling for resources impacts the ground and water supply, even if nothing goes wrong. When things do go wrong, you see incidents like oil spills.
Tech Changes For Solar Power In Firestone
Comparing the different benefits of power sources can be a tall order for property owners. However, when it comes to sun-based and other renewables, there are far more pros than cons. One major practical fact is that being a green, non-pollutant source of energy makes it easy to use sun-based options at scale. Another thing you don’t have to worry about is the tangential effects of scarcity. Remember, limited resources can lead to price volatility or even conflict. By nature, photovoltaics is a technology, which saves a lot of frustration.
One key factor here is that your conventional fuels such as oil or gas are tangible items. You need to produce them, treat them, then get them prepared for transport. However, when using photovoltaics, all you need to do is have a method to properly convert sunlight into energy, ideally as efficiently as possible. When it comes to fossil fuels, there’s going to be a hard cap for innovation, while that’s a lot more open for sun-based option. A good point of consideration is Moore’s Law. Moore’s Law states that each year, you see around a doubling of computer processing energy. This allows tech innovation to occur in higher amounts as costs lower.
You can see this happening in practice when it comes to sun-based options. Take a look at how photovoltaics are seeing a “hockey stick” style of growth as the prices drop. There’s also a lot to look forward to in the future as well. If you take subsidies out of the equation, going sun-based is neck-in-neck with fossil fuels in terms of costs. Other methods to save are on the way as well.
None of these items factor in when it comes to talking about physical fuels that are used up or burned. These are natural chemical processes that you don’t have any way to improve on. Fossil fuels, in terms of value proposition, are already capped out. This doesn’t mean they can’t be useful, but items will decrease in terms of renewable resource technology. The sun-based industry is making heavy investments in R&D to help support the software and hardware that will interest buyers and sellers alike. If you want to join that group, you have online tools you can use to get an estimate with a solar company in Erie, CO.