Although some form of solar power has been available for decades, the technology has only recently gained mainstream acceptance and attracted the interest of big-time utility companies. On a per-kilowatt basis, solar power remains expensive relative to conventional sources of energy like coal and natural gas. Nevertheless, its overall cost continues to shrink at a rapid rate. As solar power becomes an increasingly important component of the country’s “energy mix,” it’s worth taking a look at five major benefits of solar power.
1. Changing Relationships with Public Utilities
Homeowners and business owners who install solar panels on their property enjoy more equitable relationships with their local utilities. Whereas conventional arrangements between utilities and their customers require the latter to be wholly dependent on the former, solar power users gain a measure of independence from their utilities. Even if their solar panels don’t produce all of the power that they need on a daily basis, they’ll need to buy less conventional power. If they produce more power than they require, their utilities may actually pay them for it at a fluctuating wholesale rate. For cash-strapped homeowners, this can turn into a significant source of revenue.
2. Healthy Financial Incentives
Along with various state agencies, the federal government offers attractive subsidies for private individuals who install solar panels or solar heating devices in their homes. In certain jurisdictions, generous subsidies may be available for businesses as well. Generally speaking, these incentives allow solar power users to claim tax credits in proportion to the amount of generation capacity that they install on their property. This reduces solar power start-up costs and increases the profitability of the technology.
3. Minimal Environmental Impact
Although the production of solar panels does require some inputs of raw materials and energy, solar power’s environmental impact is minimal. The technology produces none of the carbon, methane or particulate emissions that fossil fuels emit, and it doesn’t demand large-scale mining or drilling operations. Since panel arrays can be placed on rooftops or in isolated desert areas, solar power’s physical footprint is manageable as well.