The benefits of solar over fossil fuels

The world is tiring of the effects of climate change, which are largely created by man burning fossil fuels without limitation. Solar power is a much more responsible resource than fossil fuels. Continuing to burn fossil fuels when we know what they do to all living things, borders on the criminal. We now have alternative energy sources like solar that are ready to take the place of fossil fuels. An effective 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.

Solar power is competitive on cost

There are several factors to process when comparing the costs of energy sources. Government subsidies play a significant role in starting the growth potential for a new power source, which means that making a comparison of the costs of solar power vs. fossil fuels side-by-side is a difficult task. Europe is ahead of the United States in renewable energy.

Who is the largest contributor to fossil fuel subsidies in the world? Regrettably, the United States has continued to subsidize fossil fuels at a higher rate than any other nation in the world. In the near term, American energy will continue on its same path 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 power.

Global warming deniers have criticized the ITC for being a costly taxpayer-funded incentive. 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 course is likely to continue: unlike oil, gas, and coal, solar PV is a technology, not a fuel – meaning that its costs will continue to diminish every year as research continues and technology improves.

The best way to compare solar energy and fossil fuels without subsidies is to examine global energy costs. Global coal prices have historically averaged $0.06 cents per kilowatt-hour (kWh). Until the past decade, no alternative energy resource could rival that price. Fossil fuel steam averages around $0.05 cents/kWh and small-scale natural gas can go as low as $0.03 cents/kWh. It’s no surprise that the world was so surprised in 2016 when a major commercial solar installation bid the lowest price for PV to date at $0.029 cents per kWh – effectively leveling the playing field between solar and fossil fuels’ cheapest products.

Now is a great time to install a solar energy system! With the prices of solar panels remaining low, there's more reasons than ever before to invest in solar. Not only do you get to generate your own energy, but you also get the peace of mind of knowing you are no longer contributing to global warming.

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

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