Comparing solar and fossil fuels

The world is growing weary of the effects of climate change, which are largely created by man burning fossil fuels unchecked. Solar power is a much more earth-friendly resource than fossil fuels. The ultimate way to compare solar energy to fossil fuels is by cost, where solar has quickly caught up with its non-renewable counterparts. But fossil fuels are almost gone and the time has come to convince lawmakers that drilling for fossil fuels in sensitive areas is a huge environmental risk the earth cannot afford.

Is solar power less expensive than coal and other fossil fuels?

There are several factors to process when comparing the costs of energy sources. Government subsidies play a major role in starting the growth potential for a new power source, which means that making a comparison of the costs of solar energy vs. fossil fuels side-by-side is a difficult task. Europe is ahead of the United States in renewable energy. The nations of the Group of Twenty (G20) may have agreed to begin phasing out fossil fuels in 2009 due to its pollution, but not every G20 member is following through on its word. According to Oil Change International’s report, while the G20 makes up more than 85% of global GDP, these top economies are spending $452 billion a year to support fossil fuels.

Who is the largest contributor to fossil fuel subsidies in the world? Unfortunately, the United States has continued to subsidize fossil fuels at a higher rate than any other nation in the world. Fossil fuel advocates are already getting ready for the Trump Administration. In the near term, American energy will continue on its same course of heavy fossil fuel subsidization.

How energy subsidies play the biggest role

Comparing the cost of solar energy vs. fossil fuels, we have to consider the subsidies that are keeping prices relatively low. In the case of solar power, the Investment Tax Credit (ITC) currently covers 30 percent of any U.S. solar installation and will do so until 2021 for the residential sector. The commercial sector will retain a permanent ten percent tax credit for solar.

Renewable energy cynics and global warming deniers have criticized the ITC for being a costly taxpayer-funded stimulus. The reality is that this short-lived subsidy represents only a small fraction of the money that U.S. taxpayers spend each year to support fossil fuels. Without any subsidies, solar is likely the cheapest energy source in the world, as demonstrated by record-low power purchase agreements in countries like the United Arab Emirates and Chile. Solar’s low-cost trend is likely to continue: unlike oil, gas, and coal, solar PV is a technology, not a fuel – meaning that its costs will continue to drop every year as research continues and technology improves.

Now is a great time to install a solar energy system!

If you want to move into the future and join the solar revolution, or if you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years. 

For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.