So, if you haven’t already heard: we are in the midst of a revolution. No, not the type of revolution involving guns and dictators. This is the type of revolution that has been occurring very slowly, over the past couple of decades, in different parts of the world. It’s been dubbed: the Solar Power Revolution, and it’s happening all around us.
So, what is the Solar Power Revolution? And what kind of changes can we expect to see in the coming decades?
Well, as is commonly known, Oil and Natural Gas are non-renewable resources. Many analysts calculate that humanity has already burnt through over half of the world’s Oil, and you can bet that the authorities will not wait until we reach the last drop before beginning to seriously consider the alternatives. Investors are already pouring a lot of money into alternative energy resources, while governments are subsidizing and encouraging these efforts.
Here are five major trends happening today which are proving that the energy of the sun will increasingly be harnessed as a source of energy in the years to come.
1) In Germany, the government has implemented extreme measures to support the rise of solar technology. In the year 2000, a Feed-in tariff law was enacted which promised to compensate solar energy producers with a fixed higher price per kilowatt of energy. As a result, solar energy now accounts for 7% of the country’s net-electricity generation.
2) In the U.S., solar power is quickly becoming a popular player in the country’s energy mix. In the Mojave Desert (California) sits the world’s largest solar plant. The plant consists of 350,000 mirrors absorbing the sun’s energy from different angles on a daily basis. This plant currently powers over 140,000 homes across Southern California. In 2013, solar energy accounted for 29% of America’s net-electricity generation.
3) 40% of the world’s new solar panels are currently being produced in China. These panels utilize photovoltaic (PV) technology which cleanly convert solar energy directly into current electricity. Over 95% of these panels are exported to the U.S., Europe, and Japan, but China may soon begin enacting legislation which could dramatically increase internal purchase of these panels.
4) At the dawn of the new millennium, British Oil Giant BP, launched a solar division called “Beyond Petroleum.” Feeling that they could not miss out on this hot new business, BP poured $7 billion into alternative energy. However, due to the increased competition from China, (and BP’s name being overly associated with Oil), the business did not last, and BP Solar closed down its headquarters in 2010.
5) Analysts believe that, while there are still several technological hurdles to overcome, the imminent impact of solar energy simply cannot be ignored. Advancements are already being made in the efficiency of solar panels, and the prices are continually decreasing as new players enter the picture.
Summary
Solar power is taking the world by storm. While it is true that the Big Oil companies will remain incredibly powerful, and profitable, in the years to come, analysts are staying tuned to the incredible investment opportunities which will come about due to this new form of energy harnessing. As governments become increasingly aware of the necessity for cleaner and renewable energy sources, this industry could be explosive.
