with new california solar panel mandate, is solar finally poised to heat up?

by:Tunto     2020-04-12
California, the world\'s fifth-largest economy, recently signed an order requiring most new homes in the state to install solar panels after 2020.
California is the first state to do so, but it may not be the last, with New Jersey and Minnesota becoming increasingly dependent on solar energy.
Despite criticism of the task, the trend of increased solar usage will continue as economies of scale drive down prices, over time, utilities combine their business model with the economic and health benefits of reducing dependence on power grids and fossil fuels.
As the market moves towards the diffusion of solar technology, domestic companies in the solar and wider renewable energy industries will benefit, including those that make panels and components, and those who assist in the installation and ensure the efficient use of energy.
While the move will add thousands of upfront costs to affordable housing in states that are known to have limited housing, these costs will be offset by savings in heating and cooling costs.
According to some estimates, the increase in the median mortgage payment will be $71 per month, while the cost savings for solar energy will be around $80, which immediately offset the impact of the task.
What is more convincing than the savings that homeowners ultimately benefit from is the cost savings of external factors that are pushed from the utility\'s balance sheet to society.
With the full implementation of California\'s traffic regulations, California will benefit from reduced social costs of $10 in carbon.
By 2020 it was $4 billion and $23.
1 billion to 2025.
From a human point of view, this means that the incidence of heart disease is reduced and working hours are reduced by nearly 75,000 days.
Given the human costs of relying on fossil fuels, UN Sustainable Development Goal 7 says it is not surprising that by 2030 we should ensure universal access to affordable energy. Reliable modern energy services.
In the next 15 years, it will take about $90 trillion to achieve these goals, which provides a unique market opportunity for long-term development. term investors.
The average cost of building houses with solar panels is currently estimated at $9,500.
Economies of scale will lower prices over time, and this number will fall sharply.
Between 2010 and 2016, the average cost of solar energy fell by 73%.
Without such a dramatic push from the government--
They are likely to decline further now.
Another benefit of solar-powered homeowners is that they can reduce their dependence on the grid at the same time where natural disasters prevail and cyber security threats are increasingly prominent.
For those who want to know what this means for utilities, it is likely that they will change their business model as they did in Australia, and utilities are selling panels, or become a distribution network for homeowners who want to buy and sell solar energy.
Plus solar panels from outside the United States this year. S.
The United States will receive a 30% tariff. S.
China is now the second most attractive country for renewable energy investment.
So, which companies are likely to benefit?
From installation to panels to components, the entire solar ecosystem offers opportunities.
Including companies that produce solar panels like First solar (FSLR -Get Report)
Those like Sunrun (RUN -Get Report)
And companies that make solar panel components, such as SolarEdge Technologies.
Yes, that means Tesla (TSLA -Get Report)
The same is true through its SolarCity business.
Increased investment by: Founder and CEO of Dave FangerFanger.
He is a CFA charterer, a member of the Association of Actuaries, and holds an MBA from the University of California, Los Angeles, Anderson.
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