A Cost Benefit Analysis
There are many people worldwide who are now stepping up and converting over to solar energy. When we take a look at the transition to sustainable energy there are also a number of property owners that still consider this upfront expense to be far too great for them to buy into the long-term savings of switching to solar energy.
There has been an extensive amount of talk about the cost of making transitions to renewable energy from a business perspective as well. Officials from Congress all the way to the president of the United States have suggested that changing over to solar energy could result in an overall loss of jobs and penalties to the average way of life in North America.
While there are a number of officials that are continuing to champion the idea of fossil fuels for power generation, a number of the world’s largest producers are starting to step up in an effort to educate the public to make the transition for the betterment of our world.
Even some of the world’s largest countries like the United States are falling behind when it comes to the overall global initiative to choose energy development and renewable forms of energy. There is a variety of ongoing studies in cost-benefit analysis that showcase sustainable energy can be much more affordable and a better environmental choice in the short term as well as in the long term. A delay preventing the overall economic and environmental threat that is occurring by sitting back with other forms of energy could spell doom for our world. Their need for action is only growing more relevant as climate change grows more extreme in the overall cost for handling extreme events as a result of our changing climate is growing more expensive.
A cost-benefit analysis of solar energy:
In the United States, there’s already billions of dollars which are spent every year on handling climate related events as a result of global warming. The budget for FEMA is estimated to between $4 billion overdrawn especially in coastal cities across the United States. Surge control and protection in coastal cities as well as rapidly spreading fires are costing the government more than ever. Early snow and heat waves are also affecting budgetary changes within the Northeast and Midwest.
Changing over to solar energy could be a huge cost savings especially in a country like the United States. It’s estimated that with the growth in population, humans will require roughly 43 TW of energy which could be incredibly detrimental to produce using fossil fuels. Energy available from the sun is estimated at between 85,000 to 120,000 TW or a supply that could easily fill that need with renewable energy.
Solar energy is an easy process to install, it’s clean and safe. The life expectancy of the average solar system on a home is measured in decades and equipment requires very little maintenance. It’s estimated that it would take around 20 to 25 years of retrofit for solar energy to reach the same stake that coal and oil still hold throughout many regions of the United States.
There are some methods that are being used to price out the future opportunities of fossil fuel power generation as well. Obtaining a new loan for these types of production plants is growing more expensive and insurance for these businesses is rising regularly. The cost of both of these resources is also destabilizing with scarcity so soon enough, solar power may be the answer to jobs rather than the excuses that many continue to make about job loss related to solar power.
When we look at the basic numbers associated with solar power generation by 2050, a net cost for conversion in the United States it’s around $80.6 billion. If the conversion was to happen relatively quickly, the net gain in savings is estimated at around 5.02 trillion dollars by the year 2050. This conversion would also result in your lease 36.9 Gt of CO2 omission reduction by the year 2050.
With some of the savings listed in a monetary value, we can see why insurance companies, financial institutions and more are stepping up to see solar power as a better investment for our future.