Solar energy investment and fossil fuels

Unless you’ve been living under a rock for the past decade, you are aware that fossil fuel combustion is the most damaging environmental development in modern times. The obvious need for clean energy is making the investment in solar energy a wise choice for the discriminating investor. Renewable energy has existed for some time, but until recently, fossil fuels were the dominant method of providing energy for our world. Over the last few, however, investments in the generation of clean energy have overtaken fossil fuels. In 2017, renewables supplied 12% of global power which is the highest percentage ever. Data from 2017 showed that despite many changes in the electric sector, investments in renewables are still leading the way toward the energy source of the future.

Solar power generation

Globally, investments in oil and gas have increased slightly, but investments in power generation for fossil fuels lagged behind that of renewables in many parts of the world. In 2017, investment in solar PV reached record levels, largely thanks to continued investments in China and India.  In fact, 2017 was the first time in her history that India’s investments in renewables exceeded its investments in fossil fuel generation. Solar energy attracted $160.8 billion in investment or 18% more than the previous year. The same year about four gigawatts of offshore wind was commissioned, mostly in Europe. However, investments in onshore wind fell by around 15% and hydropower investments dropped to their lowest level in a decade.

The world's clean energy supply

Even today, alternative energy still makes up a relatively small portion of spending in sectors other than electricity generation. Transportation, heating, and cooling still employ large amounts of fossil fuels. Fossil fuels as a percentage of total energy supply investment rose to 59% in 2017.

According to the IEA, however, the fossil fuel portion of energy supply investment may decrease over the long term. Under the IEA's Sustainable Development Scenario, it would fall to 40% by 2030. Even though investments in oil and gas supply increased last year, electricity got the most investment of any energy sector. The IEA noted in its report that this shows the gradually increasing electrification of the global economy; Renewables support this electrification more than fossil fuels or nuclear power.

Investment trends favor solar and wind power over fossil fuels

Overall global investment in energy sank for the third year in a row but last year, it fell by $1.8 trillion, or two percent. Most of the decrease came from power generation due to reduced amounts of new coal, nuclear, and hydro capacity. Investments in these energy sources declined, but clean energy still led the way in many localities as countries around the world continued to push for less pollution. China remained more influential in the area of energy investments and received 20 % of the global total of energy investments, the most of any country. China is increasingly moving toward low-carbon energy. It cut its investments in coal-fired plants by 55% last year. This is a needed development since China is the most polluted country on the planet.

There has never been a better 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.

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