From 2010-2019, solar received half of the world’s total $2.6 trillion investment into clean energy and consequently added more capacity to the grid than any other energy source. In 2019, 638 GW of net capacity was added to solar versus only 487 GW for wind, 283 GW for hydro, and -7 GW for nuclear.
It’s no surprise that solar capacity has outpaced fossil fuels as well with coal at 529 GW, natural gas 438 GW, and oil -2 GW. At the end of the day, energy is a business where the cheapest option wins out. The cost of solar has plummeted 85% in the last 10 years alone. Currently, as of 2020, solar is the cheapest electricity in history – costing less than coal and natural gas in most countries. This marks an incredible achievement of grid parity in which an “alternative” source, like solar, become more affordable than the price of conventional fossil fuel sources.
Rooftop solar’s total capacity is set to double to 95 GW by 2025 and reach 2 TW by 2050. The majority players will be China, the United States, India, Germany, and Turkey, in order of total customer-sided solar capacity.
Rapidly falling costs of solar, generous government incentives, and friendly policies have created this prosumer market transformation and vital opportunity for decarbonization. Short payback periods and high internal rates of return (IRR) make solar extremely attractive for both households and businesses. The most common payback period for rooftop solar distributed energy is six to ten years with an expected IRR of 16%+ for leveraged (including financing) and 23%+ for unleveraged.
Investing in solar right now will save businesses money in the long run by providing protection against market volatility. After the solar panels are paid off, the system will generate free electricity with little to no maintenance for at least 25 years. The benefits of solar can even be enjoyed through zero upfront investment with a power purchase agreement (PPA).
Solar will not only allow businesses to remain profitable but will also keep existing customers happy with high retention rates. Conscious consumers are on the rise and specifically looking for environmentally friendly companies. By adding solar to their rooftops, businesses can market themselves as a favorable green organization. Banks are also more likely to offer loans to these low-risk businesses who have a higher probability of long-term success.
Solar projects are incredibly complex, requiring months of detailed planning, strategy, professional engineering and financial analysis, solar expertise, and various expensive software for each stage of the project. PowerMarket is a software as a service (SaaS) company that saves organisations 90% of their time and resources by streamlining and simplifying the deployment of solar projects. The entire process from planning to maintenance is centralized in an easy-to-use, turn-key platform. Learn more: https://www.powermarket.ai/how-it-works.html