MANY of us want to do our part to help keep our environment clean. Saving money while helping makes it more attractive. That brings up the question of when should you make the switch from fossil fuels to solar energy – now or later?
I was often asked that question followed by “Why should I buy a system now? In another year it will probably be cheaper and the technology will be more efficient.” I respond using an example of a cell phone. If you need a cell phone, buy one now and do not wait till next year when the prices may increase. There are many reasons why now is better than later.
Tax credits, rebates and incentives
Within the next few years, the federal and local governments will start to cut, change and reduce rebates on tax credits and incentives. As the national debt rises, the federal and local governments are going to find ways to save money. By cutting many of the tax credits and incentives, these governments would save millions. Take advantage of these benefits now while they are still available. Timing is everything. Understanding the ins and outs of these breaks in your area will help guide your decision.
Cost of solar technology
The cost of solar panel systems has declined over the years and now is at a plateau. As a matter of fact, they are the lowest they have been in years. The lower costs of the systems make it a more attractive solution to saving money. Since solar energy is becoming more popular, there has been a rise in the number of manufactures of the solar power systems and their components. There is a surplus in supply and the demand is starting to catch up. Based on the simple law of supply and demand, the greater the supply, the lower the cost. Once the demand catches up, prices will most likely start to rise again. This upswing in prices may happen sooner than we think – especially as the cost of fossil fuels climb. There are many reasons that the demand for solar energy can rise.
Depletion of raw materials
For hundreds of years, humans have turned to Mother Earth to supply raw materials that are needed to produce the power we require to run modern day society. As the world’s population grows, so does the demand for power. The Earth has a finite amount of raw material that can be converted into power. Sooner or later, we will deplete these materials and society will have to look elsewhere. I’m not saying the Earth will run out of materials tomorrow, but there will come a time that the companies that supply the natural materials will start conserving what they harvest and place an exuberant price on what they do sell. This will cause a steep rise in power prices that will raise the demand for alternative power sources.
Political instability
The United States looks elsewhere to acquire most of its fuel. Many of the nations that supply our nation are countries that are not politically stable. It can happen overnight that one of these nations will decide not to sell to the United States and the price of fossil fuels will skyrocket.
I was often asked that question followed by “Why should I buy a system now? In another year it will probably be cheaper and the technology will be more efficient.” I respond using an example of a cell phone. If you need a cell phone, buy one now and do not wait till next year when the prices may increase. There are many reasons why now is better than later.
Tax credits, rebates and incentives
Within the next few years, the federal and local governments will start to cut, change and reduce rebates on tax credits and incentives. As the national debt rises, the federal and local governments are going to find ways to save money. By cutting many of the tax credits and incentives, these governments would save millions. Take advantage of these benefits now while they are still available. Timing is everything. Understanding the ins and outs of these breaks in your area will help guide your decision.
Cost of solar technology
The cost of solar panel systems has declined over the years and now is at a plateau. As a matter of fact, they are the lowest they have been in years. The lower costs of the systems make it a more attractive solution to saving money. Since solar energy is becoming more popular, there has been a rise in the number of manufactures of the solar power systems and their components. There is a surplus in supply and the demand is starting to catch up. Based on the simple law of supply and demand, the greater the supply, the lower the cost. Once the demand catches up, prices will most likely start to rise again. This upswing in prices may happen sooner than we think – especially as the cost of fossil fuels climb. There are many reasons that the demand for solar energy can rise.
Depletion of raw materials
For hundreds of years, humans have turned to Mother Earth to supply raw materials that are needed to produce the power we require to run modern day society. As the world’s population grows, so does the demand for power. The Earth has a finite amount of raw material that can be converted into power. Sooner or later, we will deplete these materials and society will have to look elsewhere. I’m not saying the Earth will run out of materials tomorrow, but there will come a time that the companies that supply the natural materials will start conserving what they harvest and place an exuberant price on what they do sell. This will cause a steep rise in power prices that will raise the demand for alternative power sources.
Political instability
The United States looks elsewhere to acquire most of its fuel. Many of the nations that supply our nation are countries that are not politically stable. It can happen overnight that one of these nations will decide not to sell to the United States and the price of fossil fuels will skyrocket.
Tracy Voacolo is the president of Micronesia Renewable Energy. She has more than 20 years of experience in the renewable energy industry. Tracy can be contacted at info[at]micronesiarenewableenergy.com.
For more information about Micronesia Renewable Energy, visit http://micronesiarenewableenergy.com/.