Why Solar Power is a Reliable Long Term Investment
A certain degree of skepticism is normal with emerging technologies, and solar power is no exception. However, the benefits of solar PV systems are already being proven on a global scale, and there are strong reasons to believe in the technology. Warren Buffet, who is one of the richest businessmen in the world, has already invested several billion dollars on utility-scale photovoltaic projects. A notable example is the 2.5 billion dollar Topaz Solar Farm, in California.
The following are some of the main reasons why solar power is a reliable long term investment, which could become one of the mainstream energy sources in the short term.
Sunlight is Free and has Guaranteed Long-Term Availability
Electric power technologies that depend on fossil fuels are subject to extreme price volatility. For example, the price of crude oil tends to fluctuate wildly from year to year – even the best economists are unable to predict with certainty how oil prices will behave. It might be tempting to invest on technology powered by fossil fuels when prices are low, but doing so can be a grave mistake:
a). Prices could rise again at any moment, and any company or country who is heavily dependent on fossil fuels will suddenly have to deal with considerable expenses. It has happened in the past it will happen again to those caught unaware.
b). Fossil fuels are a limited resource – at current consumption rates, they will eventually be depleted. Some of the least favorable predictions state that the decline of fossil fuels will occur within the first half of this century.
Solar power, on the other hand, works with a reliable and predictable energy source. According to astronomers, the sun will last for five billion years more. If you want to find a technology with long-term availability, look no further: solar power is the answer. On top of that, sunlight is free: the only costs involved if you own a solar PV system are the initial investment and periodic maintenance.
Installing a residential PV system allows homeowners to reduce the impact of any electric energy price variation induced by the ups and downs of the fossil fuel market. The energy output of solar PV systems is guaranteed to be available for an investment that is known since the beginning.
Energy Prices Will Keep Rising… and Solar PV System Savings Too!
The energy output of solar photovoltaic systems remains stable year after year. However, the actual monetary savings gradually increase. The reason is because electric utility rates are constantly on the rise, and every kilowatt-hour produced by a solar PV system is one kilowatt-hour that wasn’t paid to the utility company. If energy is 10% more expensive in 5 years, your solar PV system will also save 10% more money!
Thanks to this phenomenon, the actual payback period of a solar photovoltaic system might actually decrease throughout the years. For example, a payback period originally estimated at 10 years might be reduced to 7 years if energy costs rise dramatically.
The Usefulness of Solar Power will Increase
Currently, solar photovoltaic systems are mostly used for the energy needs of residential and commercial buildings. However, emerging technologies such as electric vehicles can potentially run 100% on solar power. If electric vehicles become mainstream, owners of solar PV systems will be able to save money on both electric bills and transportation!
Why wait longer to start obtaining the benefits of solar power? Talk to our Solar Experts today to learn more about the technology or to obtain a quote for a solar PV system.