The International Energy Agency (IEA) says that solar power is currently the cheapest source of electricity in some parts of the world where policies supporting the use of renewables exist.
According to the IEA’s World Energy Outlook 2020 released in October, there are over 130 countries with existing policies designed to reduce the cost of new solar installations. This has effectively encouraged more homeowners and companies to make a switch to solar power. IEA says that the solar power price drop is estimated to be between 20 and 50 per cent per region when compared to 2019 rates.
The historical challenge of switching to solar energy has always been the prohibitive cost of the technology required to convert sunlight into usable electricity. But if countries follow suit by making the necessary adjustments to their policies, they can benefit in the same manner.
Solar energy set to lead electricity supply
Solar energy systems are expected to dominate the market and provide a greater share of electricity supply over the coming decade. With the global push towards arresting the climate crisis through the use of renewable energy sources, the solar power market will continue to receive the boost it needs to stay on its growth track.
All this is splendid news for solar installation companies whose operations have been badly affected by COVID-19. More demand, adequate supply and continuing government support should help to keep solar power technology prices down. This way, more consumers and business entities can take advantage of the environmental and economic benefits of going solar.
The fact that the cost of constructing solar farms has been consistently cheaper than building new gas- or coal-powered plants across the world has also given the solar power industry the boost it needs to gain more traction. Moreover, the cost of coal hasn’t changed much for over a decade, and in places like the U.S., more coal plants had been shutting down since last year. In fact, it is projected that the coal industry would be gone by 2030.
The future is bright with solar
The IEA predicts that as countries gradually manage and recover from the pandemic, the solar industry will continue to grow to meet higher consumer demand. As solar technology continues to improve, fuelled by research and innovation, the cost of going solar can be driven down further.
You can start enjoying the benefits of going solar today.
If you need solar panels in Melbourne or any part of Victoria, please contact Solar Miner on 1300 285 885.