The Positive Economic Effect of Solar Energy

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As solar power starts to gather more momentum than ever with production increasing, installation costs falling and government funding providing incentives for many, it is having a wider effect on regional, national and international economies. Solar energy may not be a new invention but with its efficiency, cheaper costs and increased availability it is becoming more prominent and increased focus on it can provide many benefits.

The main advantage is of course to produce much cleaner energy at a cheaper rate to power our homes, hospitals, shops and other amenities. As solar energy becomes more in demand it provides a boost to the economy in various different ways.

Creates Jobs

From installing solar panels on the roofs of individuals’ homes to setting up a solar power plant, workers are required to carry out such tasks. This creates tens, hundreds and even thousands of jobs depending on the size of such projects. For example Iluméxico aim to supply 300,000 people in rural Mexico with solar power which has created an initial 180 jobs in the region along with brining clean, affordable energy to off the grid homes.

Innovation

There is a knock-on effect of the increased focus on solar and green energy for other businesses too. Car manufacturing companies will see an opportunity to develop more electric vehicles that can incorporate solar energy into powering them. This creates new jobs and in other sectors a similar phenomenon may occur. It does reduce the reliance on fossil fuels which is likely to have a negative impact upon jobs in that sector over time.

Boosts International Exports

As the global demand for solar energy increases it provides a great opportunity for countries to start or ramp up their production of related materials. From solar panels to PV test kits, there are many specific products that are essential for using solar energy which aren’t available in every country.

This creates a brilliant chance to boost exports as the market will be there and it looks set to further improve in the coming years. Supply solar panels to energy companies abroad to sell on or seek out bigger deals by providing governments with products. Improved exports should see everything from the country’s currency to stocks improve.

Reduces Reliance on Imported Fuel

In the same way that solar power can increase exports it will also reduce the need for importing similar products and alternatives. There will be a reduction in the need for coal, oil and gas being imported which can help avoid tentative political situations and the reliance on dominating powers such as the recent sanctions imposed upon Russia.

Increasing your own country’s reliance on renewable, solar powered energy replaces the need for importing fossil fuels from abroad to meet the demand. It also eliminates expensive shipping costs and is pumping money back into your own economy rather than another nation’s. With more use of green energy in other aspects, such as powering vehicles, there should be less need for petrol and diesel, so what’s required can be sourced more locally.

Decreases Government Spending

Most governments now have set reduced carbon emissions targets. Not only does solar energy help achieve these results but it also cuts down on the amount of government spending (and therefore taxpayers’ money) used towards meeting such requirements. This can save a lot of outgoings which can be used elsewhere.

At the moment there is a significant amount of many governments’ expenses going towards clean-up and environmental services due to high levels of carbon emissions. From installing solar panels on your roof to powering machinery with saved up solar energy, every small aspect makes a difference to what is spent improving procedures. Solar energy can improve both the environment and economy by continuing to increase its status.

Graham Michael