You may have heard of the benefits of using renewable energy to save the environment. However, there are many more benefits that you can derive from using these sources of energy, one being economic. Solar energy is the most popular type of renewable energy and converts sunlight into electricity to power homes.
The most common solar energy technology is solar photovoltaic modules for electricity. Other forms include solar water heating, solar process heat used to heat or cool commercial buildings, and passive solar heating for lighting and warmth for homes. Concentrating solar power technology harnesses electricity for large power stations.
Solar power is carbon-free and renewable, making it beneficial to the environment. Its availability also diversifies sources of energy, which leads to reduced reliance on imported fuel. Even when there are large clouds, an efficient solar panel system continues to draw and store the solar energy that can power your home. We are going to look at various economic benefits derived from the usage of solar energy. Let’s dive in.
What Are the Economic Benefits of Solar Power?
1. Creating Jobs
Millions of people work with renewable energy, as reported by IRENA. As a result, the solar energy sector creates many jobs in various fields such as manufacturing, engineering, installation, marketing, sales, and many others.
Currently, approximately 250,000 people are working in the solar energy industry. Globally, the number is over 11 million. As more and more people switch to solar energy, the jobs created in this sector are expected to increase. This is one of the invaluable economic benefits of solar energy.
2. Reduction of Energy Costs
Whether you are in the residential or commercial industry, choosing solar energy to power your operation is an excellent way of saving money on energy bills. Once you install solar panels on your property, you can generate electricity, which brings down the cost, theoretically to zero. Various factors can affect the amount you save, such as the location in which you live.
3. Stabilizes Energy Prices
The solar system’s initial installation price can be substantial, though solar energy companies offer great incentives. Also, once you have made this investment, the PV modules are cheap to operate. One reason for this is because they require no fuel to work. Generally, electricity prices fluctuate because of the changing oil prices. Eliminating this factor ensures stability.
4. Increases Home Resale Value
Are you looking for a sure way to increase the value of your home? After the installation of the solar energy system in a home, it appreciates. Potential home buyers look at the numerous photovoltaic modules installed and see the value of purchasing the home. The potential savings gained from a fully sustainable energy system in a home makes it attractive to buyers. According to Zillow, solar panel installation increases the value of your property by up to 4.1%.
5. Avoiding Time-of-Use Charges
In some states, you incur higher charges during peak hours, mostly after work or during dinner, when you run your appliances. This leads to an increase in the electricity bill. You may pay less when you use it early in the morning or during the day. When you invest in solar energy and a power storage system, you can run your appliances whenever you wish. Storing the solar energy in a battery allows you to use it at your convenience or when you need it most without incurring additional charges.
6. Abating Climate Change Impact on the Economy
Generally, changes in the climate affect numerous sectors negatively. According to various studies, it is estimated that it will affect over 22 vital sectors. Already, as reported by Morgan Stanley, there have been various climate disasters in North America in the last three years at the cost of $415 billion. Agriculture is the most vulnerable of all sectors. Increased heat, forest fires, and flooding are direct results of climate change. As farmers try to adapt to this, it may lead to an increase in prices. The costs are passed on to the consumer.
Extreme weather events, rising sea levels, and bad air quality affect the world immensely. However, when you switch to solar energy, you help slow down the effects of climate change. This helps to avoid some of the catastrophic events that lead to economic losses.
7. Solar Energy is Highly Sustainable
One of the solar energy advantages is its sustainability. For years, there have been debates on how sustainable using fossil fuels such as natural gas can be. Mostly, in relation to the planet’s ability to keep those resources available and enough to satisfy the energy demands. The yearly increase in the cost of production also contributes to increased doubts on its sustainability.
Using solar power is one of the ways the world can combat this challenge. The sun has unlimited energy, and worrying about a spill, shortage, or an explosion is a thing of the past. This steady supply and availability of resources make it a valuable source of energy to power an economy.
Additionally, the sun cannot be shut off or metered to use a bargaining chip to affect world prices. This is a huge incentive to use solar energy.
Energy is an integral part of our day-to-day functions. We need it to power our homes and run various appliances. Whether you want to cool or heat your home, you don’t want anyone to limit you or pay high energy bills. To avoid this, installing a solar energy system in your home can extremely beneficial.
In addition to saving on your electricity bills, you get to increase the resale value of your home. Also, investing in this system gives you the satisfaction of knowing that you contribute to slowing down climate change. The solar energy sector also creates jobs, thus reducing unemployment.
Ultimately, as statistics suggest, solar energy’s economic benefits make it a preferred energy source for your home. These benefits reach across the community and the world at large.