Solar energy investment and fossil fuels

There is an obvious need for more alternative energy investments for a planet that has almost used up its prime source of energy. Fossil fuels have powered the progress the world has seen over the past few decades, but it is becoming increasingly clear that these fuels are causing unacceptable damage to the earth. Unless you’ve been living under a rock for the past decades, you are aware that fossil fuel combustion is the most damaging environmental crisis in modern times. The glaring need for clean energy is making the investment in solar energy a wise choice for the discriminating investor. Over the last few years, however, investments in the generation of clean energy have overtaken fossil fuels. In 2017, renewables supplied 12% of global power which is the highest percentage on record. Data from 2017 showed that despite many changes in the electric sector, investments in renewables are still leading the way toward the energy sources of the future.

Solar power generation

Investments in oil and gas have increased slightly, but investments in power generation for fossil fuels in general lagged behind that of renewables in most parts of the world. In 2017, investment in solar PV reached record levels, largely thanks to continued investments in China and India; In fact, 2017 was the first time India’s investments in renewables surpassed its investments in fossil fuel generation. Solar attracted $160.8 billion in investment or 18% more than the previous year. The same year about four gigawatts of offshore wind was ordered, mostly in Europe. However, investments in onshore wind decreased by around 15% and hydropower investments fell to their lowest level in a decade.

Renewable energy sources spur investment

Even today, with the signs of global warming becoming more blatant, clean energy still makes up a relatively small part of spending in sectors other than electricity generation. Transportation, heating, and cooling still employ considerable amounts of fossil fuels. Fossil fuels as a percentage of total energy supply investment rose to 59% in 2017.

According to the IEA, however, the fossil fuel share of energy supply investment may slip over the long term. Under the IEA's Sustainable Development Scenario, it would fall to 40% by 2030. Even though investments in oil and gas supply increased last year, electricity received the most investment of any energy sector. The IEA noted in its report that this shows the increasing electrification of the world economy; Renewables support this electrification more than fossil fuels or nuclear power. But it's important to remember that nuclear power is extremely dangerous and expensive. That's why so few nuclear plants have come online in the past few years.

Investment trends favor solar and wind power

Overall global investment in energy dropped for the third year in a row but last year, it fell by $1.8 trillion, or two percent. Most of the decrease came from power generation due to lower amounts of new coal, nuclear, and hydro capacity. Investments in these energy sources declined, but clean energy still led the way in many regions as countries around the world continued to advocate for less pollution. China remained more influential in the area of energy investments and received 20 % of the global total of energy investments, the most of any country. China is increasingly moving toward low-carbon energy. It cut its investments in coal-fired plants by 55% last year.

There has never been a better time to install a solar energy system!

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