Solar The Best Renewable Energy Investment

A recent study conducted in the United States revealed that investing in solar power offers the quickest return of investment among the possible renewable energy options, offering an average payback period of 4 years reduced from 7 to 10 a couple of years back. The falling prices of the solar PV panels and the continued improvement in efficiency ratings contributed to this much quicker ROI.

The US solar market has grown tremendously over the past few years and now employs more than 100,000 solar workers.  A report from Forbes showed that before the year closes the solar market can double its size, primarily because of strong policies and loan guarantees offered by the government.

Kilowatt per kilowatt solar power has proven to be the cheapest form of renewable energy.  A global report showed that the cost of solar PV cost will reach $1 per watt by 2020. The same report also suggests that by 2030 solar power cost could drop down to only 50 cents per kilowatt.

In Australia, the same turn of events is happening. Prices of solar panel systems have halved and general payback time has also been reduced to less than 5 years in some states. Major investments in large scale solar power projects have also been made because of the same fact. Companies have invested in solar because of the quick return of investment and long term contracts that give low risk and financial stability.

But main beneficiaries of cheaper solar power are households and small local businesses, the falling prices coupled with generous government incentives and rebates have made solar technology affordable and accessible for everybody, allowing Australian families and businesses to have a safe haven from continued energy price hikes.

The federal government of Australia will soon strengthen its campaign for solar power and other renewables as the carbon tax is implemented and the Clean Energy Finance Corporation and Australian Renewable Energy Agency becomes operational.  The three components of the country’s Clean Energy Future plan will deliver significant investments in the industry as well as many research opportunities to further decrease solar power prices.

Soon enough as the carbon tax is implemented and the entire package comes to play the federal government expects to create a strong sense of initiative not only for the top 500polluters of the country but also from small scale investments from households and small businesses bringing to reality the virtual power stations that Australia so desperately needs to achieve its 20% renewable energy goal in 2020.