Solar energy has been fascinating all of us for some time
now. We've heard the talks about its benefits, and we've seen our neighbors
setting up solar panels in their homes.
But what
is it? More importantly, why has it become a center point for the United State's
economy in recent years?
Before
we dive into answering all these questions, let's do a quick recap of what we
know of solar energy, what it is, and why it is essential.
In its
simplest form, solar energy is the heat and light from the Sun that can then be
harnessed and used in multiple ways.
Considering
that the Sun is always going to be around (hopefully), we can gauge that it is
the most abundant energy source found on Earth. Not only that, but it is also
the most powerful – the energy Sun provides to the Earth for one hour could
meet the global energy needs for a whole year.
In
recent times, there has been an undoubted keenness in opting for solar energy
methods. In stark contrast to historical times, solar energy is easily
accessible now and incredibly beneficial for both you and the planet.
How Does Solar Energy Work?
Simply
put, the primary process behind using solar energy as a resource is to convert
the light captured from the Sun into electricity.
For this
purpose, solar panels
are installed on your rooftops, which use solar energy to generate Direct Current
electricity and then convert it into Alternating Current electricity using a
solar inverter.
Why Is Solar Energy Important?
You may
have already understood that solar energy is an essential resource for all of
humanity. The fact is that it comes with a plethora of benefits that significantly
impact your lives, the economy, and the planet.
The most
significant thing about solar energy is that it's a renewable energy resource.
What does this mean? Well, like aforementioned, we are not likely to run out of
solar energy anytime soon.
As long
as we have the Sun (which, according to scientists, is for 5 billion years at
the very least), solar energy will be accessible to us. This means that solar energy
can be harnessed and utilized every day, anywhere in the world, unlike other
resources.
The Significantly Reduced Cost of Solar Energy
Another
thing that makes it such a desirable option is the cost factor. Although the
initial installation of solar panels may be expensive, it comes with the
unmitigated advantage of decreasing your energy bills.
This is
because since you will primarily be using electricity generated by your solar
energy system. There is a possibility even to earn money using your system. The
surplus energy you export back to the grid may lead to you receiving payments.
This is
especially effective considering how the maintenance of solar energy systems
does not require a lot of investment to begin with. They usually come with
20-25 years of warranty, and the only thing you must do is clean them a few
times per year. So, once the installation process is completed, you will have
to spend very little on keeping your panels.
Industries Are Investing in Solar Energy
Solar
power is also significant concerning the future. More and more industries are
investing in solar power's technological advancement, working with quantum
physics and nanotechnology to improve these solar resources' efficiency.
As a
result of continued advancement in this regard, the cost of installing solar
panels and generating solar energy has significantly decreased. The constant
designing and redesigning of structures that supplement harnessing energy is
bound to ensure that renewable energy, especially solar power, becomes even
more accessible in upcoming years.
The Rise of Solar Energy in the United States
Solar
power is becoming increasingly prevalent in the United States. One reason
behind this is that solar panels are a lot more reasonably priced than they
once were. It was not very long ago that there was substantial uncertainty
about solar energy's effectiveness, mainly attributable to the handsome
investment it demanded.
To
understand better, picture this: the same solar panel that cost around 8.50
dollars per watt in 2009 now costs only about $2.98. The decrease in costs has
made solar energy considerably more accessible than it once was. Hence,
installations of solar panels in the U.S. have expanded to a whopping 62.5
gigawatts today! This capacity, surprisingly enough, can conveniently power the
equivalent of 12 million average American homes.
The decrease
in cost and other factors such as increased competition in supply chains and
favorable political conditions gave rise to solar energy use. This trend
entails a multitude of benefits for the U.S. economy.
As solar
energy becomes more of a crowd-pleaser with each passing day, industries
worldwide are making active efforts to accommodate it on multiple levels. Some
states, such as California, Hawaii, and Minnesota, have succeeded in making
solar power more financially comparable and thus "economically competitive"
to other energy sources.
The
advantages derived from the solar power industry can be far-fetching for the
economy. For example, the initiative serves as a tool for the employment of
many. Since 2010, there has been a staggering 160% increase in solar jobs -
today, there are over 242,000 solar workers in the U.S. In 2015, the industry
added new jobs 12 times faster than any other U.S. economic sector.
It is
noteworthy that the solar industry has added highly skilled jobs to the U.S.
economy every year. All in all, the solar power sectors act as incubators of
employment for many of the American majority. Moreover, such upsurge has also
encouraged several businesses to become a part of the industry; now, thousands
of small businesses cater to the nation's solar needs.
Perhaps
because of these lucrative insights, investment and development in the
renewable energy sector remain sparkling, despite the apparent blow the
Covid-19 pandemic has inflicted on the industry. In "Expectations for
Renewable Energy Finance in 2020-2023", the new analysis by ACORE,
investors have been reported to be adamant about the future growth and
improvement of the renewable energy sector.
In
addition to this, America's corporate segment is also actively willing to
invest in solar energy. This movement is led by big names such as Apple,
Amazon, Target, Walmart, and Google. A report released in July 2019 by the
Solar Energy Industries Association (SEIA) informed that the 7,000 megawatts of
installed solar capacity represented many commercial installation projects.
These included utility-scale solar panels and rooftop systems, solar parking
canopies, and solar installations powering critical data centers.
The fact
that giant American corporations are willing to invest in and cultivate solar
energy is an indicator that the renewable energy sector at large is beginning
to make economic sense at a monumental scale.
So, where is the Room for Improvement?
As you
may have deciphered by now, it is an inarguable fact that solar energy in the U.S.
has progressed in the most remarkable ways. Not only does it make life
convenient for you, but it also has a beneficial impact on the economy.
However,
despite this advancement, there is still a lot of work that needs to be done in
the solar industry. Post-COVID, at least 14% of the renewable energy workforce
is unemployed, whereas developers in this area claim to have had difficulty financing
solar-based projects.
The
pandemic has caused at least somewhat of a setback for what had been a linear
advancement of renewable energy, especially the solar power industry. To
counter these challenges, strict policies and plans focusing on the solar
sector's refurbishment must be introduced. Along with this, annual investment
in the solar energy sector must be increased, with special attention given to
grid technologies and other forms of energy storage. Experts estimate that an
average investment of $87.5 billion a year would be needed to enable the most
efficient of grid technologies.
Our Final Word
If not
all over the world, the solar power industry in the United States is an
up-and-coming sector in every regard. People want to develop, finance, and buy
solar energy. The reasons, as we have discussed, are multifold.
It makes
economic sense, which encourages corporations and markets to invest in it. Even
more so, it is a beautiful resource of renewable power that ensures a
climate-friendly solution to the world's increasing demand for energy.
Therefore,
the key take is that our booming energy industry ensures America's economic
success and contributes to the ongoing combat against the climate crisis.