Today’s global solar energy market has reached an evaluation of USD 160.3 billion in 2021. It is estimated to reach a CAGR of 15.7% by 2030. With the rising demand for sustainable energy and decreasing carbon footprints, the solar energy sector has emerged recently. The sector is going to hit milestones and reach benchmarks in the future too.
The best part of solar energy is it is a cost-effective technology. It is cheaper than other conventional energy and resources. Due to this, its adoption rate is leveraging in the major countries across the world.
Moreover, the government’s subsidies and tax credits are generous. This has accelerated solar system installations in the top countries’ residential and commercial places. In this article, we will cover the economic considerations and impact of solar energy worldwide.
Job Creation and Opportunities in Solar Sector Worldwide
Reports confirm that a massive job opportunity is noticed in the renewable energy sector. Despite targeted industrial strategies and multiple crises, the renewable sector is emerging with great job roles for individuals showing a great impact on the global economy. Among the renewable energy resources, the solar sector is the rapidly growing industrial sector. The sector has offered more than 4.3 million jobs in the year 2021. Hence, it covers one-third of the current global renewable energy workforce.
In the U.S., the solar energy sector has brought thousands of jobs in the field of installation and production of solar panels. Jobs are also available in R&D, financing, and engineering areas. According to a survey by the National Renewable Energy Laboratory, in 2020, more than 242,000 people in the U.S. got employed in the solar industry.
Southeast Asian countries have become the top manufacturing hubs for photovoltaic (PV) and biofuel products. China is recognized as the leading manufacturer of solar PV panels. Currently, India has installed over 10GW of solar power PV. All these have driven the installation jobs in these countries.
Africa’s role is noticed as limited, but still, it’s showing an increase in employment opportunities in renewable energy. The opportunities are noticed in local trading, agriculture, and other economic activities.
According to the IRENA’s ‘Renewable energy and jobs’ annual report, Brazil has remained the leading employer in biofuels, offering several jobs in solar PV installations. India is currently ranked in the 3rd position for solar PV jobs. Around 87% of the jobs in solar photovoltaic technology were noticed in China, India, Japan, the US, Poland, Germany, Bangladesh, Brazil, and Vietnam.
Increase in the Adoption Rate of Solar Energy Worldwide
Before, solar energy power was only accessible to a limited number of people who were lucky enough to afford it. But, as evolutionary changes have taken place, a sharp decline was noticed in the costs of solar installations. Universal access to solar panel systems has become easier. Prominent businesses and residential owners started adopting solar power to stay profitable. The average U.S. solar system earlier costs $10 per watt in the early 2000s.
According to the annual report of the International Renewable Energy Agency, solar PV costs dropped to $0.10 per kWh in 2017. Governments throughout the world have supported solar power growth and reduced installation costs. The cost for residential and commercial-scale solar has further reduced. This has led to an increase in its adoption rate worldwide.
How Does the Solar Sector Contribute to Driving Revenue in Countries?
The solar energy industry growth is leading to an increase in revenue for governments through various factors such as taxes, fees, and other exceptional charges. The sector will also offer income to building owners who have leased their land for the installation of solar panels.
Solar energy has brought significant benefits and driven the socio-economic impacts on micro and macro levels. There are several economic benefits to the growth of the solar sector. Let’s discuss it in detail.
Lowers the Utility Bill
Countries are showing their interest in solar installation because it limits utility bills. As solar energy relies on UV rays, this clean energy will cut down the costs associated with electricity usage. Therefore, the utility bill will eventually decrease, and the saved costs can be invested in other sources. Hence, solar energy is a highly reliable and cheaper power source, which leads to more opportunities to develop and improve.
Aids in Regional Development
Solar energy can aid in regional development due to several reasons. This renewable energy source is highly scalable in areas with restricted access to electricity. Some remote areas in different countries are still not connected to the utility grid.
The advent of solar energy has become a gateway for regional developmental projects. This further improves the general living standard and leads to human welfare. Solar energy has also made educational and medical facilities easily accessible in remote areas.
Masses Empowerment
For decades, the control of energy distribution was in the capitalist’s hands. With the advent of solar energy, energy manufacturing, and distribution have become more cost-effective. Now the regional/remote communities get easy access to choose off the grid. This has gradually decreased economic inequality.
Moreover, solar panels, equipment, and other devices related to this energy are highly affordable. This has brought competitive prices and creative financing models, driving revenue.
Energy Usage Independence
Solar energy is limitless because the sun is a never-ending source. It benefits everyone throughout the world. Moreover, investment in solar energy has aided the top countries in meeting their domestic requirements. It further makes the countries independent by reducing their dependence on other nations.
It will protect the countries from price fluctuations in the global market. Hence, it will improve and maintain the economy. Therefore, now both the largest developing and smallest underdeveloped regions will enjoy energy independence.
Offers Environmental Benefits
The solar sector has come up with major environmental benefits. It has become a powerful weapon against the global crisis, i.e., global warming. Global warming has turned into a serious threat to economic well-being.
When countries switch to green energy sources such as off-grid solar power solutions, it significantly reduces environmental carbon emissions. It aids in stepping ahead toward a sustainable lifestyle. In rural areas, where the power source is unavailable, solar power can offer great opportunities for healthier living conditions.
Great Return on Investment
Solar panels require an initial investment, but they can return quickly. With solar power, people can now balance their utility bills. They can avoid traditional non-electric lighting and cooking.
This will further reduce the costs related to costly grid connections when electricity is not readily available. Now, many activities where power is required can be benefitted from solar power at less price. Therefore, it will offer you a great return on investment in multiple ways.
Provides Energy Security
With the usage of solar energy to generate electricity, residential and business owners no longer need to depend on the municipal grid. There are several areas people are often groping in the dark every day as their utility is stressed and unsupportive. This means that the power supplement performance is irregular.
Also, the owners are noticing challenges while doing their regular tasks. With the help of solar panels and innovative storage solutions, energy can be stored. Therefore, in the event of a power outage, the stored power will be utilized successfully, and you can continue your tasks.
Final Thoughts
Solar energy is now emerging with innovative technologies to meet the needs of individuals. It aids in various ways to show a positive economic impact on the countries. It has proven beneficial for businesses throughout the world. Its socioeconomic benefits have successfully driven revenue in top countries.
Ravi Ranjan