It’s true that sustainable energy is on everyone’s mind today. However, many people still don’t understand what it is. Is it possible to invest in this? The answer is yes. However, it’s not that easy.
People who want to invest in this have to understand the basics of it first. The basics are actually quite simple. Many people are interested in renewable energy sources, such as thermal, biomass, solar, and wind energy.
The government, as well as many private investors, have been pouring money into the development of wind and solar power. In fact, in the U.S., the government has even started a tax credit that pays 30% of the cost of installing a wind turbine or solar panels.
But is this really a good investment? Most people think so, but the truth is that there are many drawbacks to wind and solar power that everyone should be aware of, so you can make an informed decision.
Reasons to invest in renewable energy now
Renewable energy has been making great strides lately, due to technological advancements and the rising costs of fossil fuels. Wind, solar, and water power are all becoming more cost-effective, and more viable options for many households and businesses.
Though the choices can be confusing, especially for those who are not familiar with the subject, here are some of the most important reasons why you should consider investing in renewable energy now.
1. It’s the right thing to do for the environment.
2. It’s a good way to invest in the future.
3. It’s a viable investment for the long-term.
4. Clean energy is becoming more affordable.
5. If you’re renting, you’ll save money on your energy bills.
6. It’s an investment that helps you sleep better at night.
7. It’s a good way to support green jobs.
Clean energy yields an economic return 3 to 8 times higher than the initial investment.
Investing in clean energy is no longer just about saving trees and protecting animals, it is now also about saving money.
A recent study by the University of California (Davis) in collaboration with PwC found that clean energy provides an investment return 3 to 8 times higher than the initial investment.
The study focused on solar photovoltaic (PV) systems for small and medium-sized businesses, but the researchers say this is true for other clean energy technologies as well.
The cost of solar energy has dropped so rapidly in recent years that it’s now cheaper than coal in many parts of the world. In 2015, the cost of solar energy was $100 per megawatt hour ($0.10 per kilowatt hour) compared to $134 per megawatt hour ($0.13 per kilowatt hour) for coal.
And in sunny Saudi Arabia and Chile, the cost of solar power is even lower: $25 per megawatt hour ($0.025 per kilowatt hour) and $29 per megawatt hour ($0.029 per kilowatt hour), respectively.
No matter what the economic models you see, the data is clear: Clean Energy is a sound investment. The numbers don’t lie: When it comes to money, clean energy wins out over dirty fuel. Investing in clean energy yields an economic return 3 to 8 times higher than the initial investment.
In other words, for every dollar put into a clean energy project, we get $3 to $8 back in savings and revenue. Rather than spending money on energy to power our homes, schools, and businesses, we can spend that money on education, health care, and infrastructure improvements.
The instability of fossil fuel prices presents a global opportunity to accelerate the shift to clean energy
Fossil fuels cause harm to our planet in several ways. Not only do they pollute the air we breathe and the water we drink, they also contribute to climate change.
Not only do the greenhouse gases released contribute to the problem, but the extraction of fossil fuels destroys the land and habitat on which we depend for survival.
In recent months, world fossil fuel prices have been dropping at a record pace. In the United States, natural gas prices are down 50% since the summer, and oil prices have fallen by a third since July.
This presents an opportunity for the United States and the world at large to accelerate the transition to clean energy—and save consumers money in the process.
It’s well known that the cost of renewable energy is falling, and this is making it much easier for governments to move away from fossil fuels in favor of cleaner sources of power. One of the most promising areas of development is offshore energy.
Ambitious investment in renewable energy and energy efficiency could lead to 63 million new jobs by 2050.
With a pledge to achieve a clean energy economy, the Obama administration announced earlier this year that it will invest $2 billion in a national campaign to create jobs, cut energy waste, and advance renewable energy.
To highlight the importance of green jobs, the administration illustrated that a $90 billion investment in clean energy could lead to almost 1 million new jobs in the construction industry, as well as 2 million job-years in manufacturing, installation, and services.
An investment of $90 billion over the next ten years could also lead to over 63 million new jobs by 2050.
A recent report by the International Renewable Energy Agency (IRENA) has proposed that renewable energy investments could create 63 million jobs by 2050, half of them in power generation and the other half in energy-efficiency measures.
As it stands, renewable energy employs 9.8 million people worldwide, but if all the jobs that the IRENA report predicts are created, this number could grow to 24.3 million jobs by 2020 and 63.1 million by 2050.
Last Words
Energy is the lifeblood of modern society. It powers our homes and businesses, and is used in virtually every aspect of modern life. But how is our energy currently produced? Is it “renewable” or “fossil fuel” based? These are key questions to ask when choosing what energy policies and companies to support. Fortunately, there are always solutions. Flexible, affordable renewable energy is quickly becoming a viable option for many in the U.S. (and around the world). Today, energy consumers are becoming increasingly aware of the effects that their energy choices have on the environment, since some of these choices can be detrimental to the health of our planet.
