Renewable Energy Market is Recharging
This probably comes as no surprise, but Renewable Energy is beginning to take over as the preferred choice of energy. Traditional energy sources like oil and gas are currently experiencing a rebound from 2020 but will continue to become less and less enticing for investors. Believe it or not, renewable energy companies outperformed the fossil fuel majors in 2020. Of course, this does not mean an end to fossil fuels, but it does signal that we may have reached a point where people are starting to see that possibility at some point in the future.
Solar and wind power are the biggest renewable producers right now but solar is the hottest trend, pun intended. This trend will continue for the foreseeable future according to the U.S. Energy Information Administration who estimates that 39.7 gigawatts (GW) of new electricity generating capacity will start commercial operation in 2021. Solar is set to account for the lion’s share of this capacity at 39%, followed by wind at 31%, and then natural gas and nuclear power account for most of the rest.
Utility scale solar photovoltaic (PV) projects, or solar farms, being built are set to add a record 15.4 GW of capacity to the US power grid in 2021, surpassing last years 12 GW increase. The state of Texas is actually set to be the largest developer of these farms over the next 5 years accounting for approximately 28% of total added capacity.
Battery storage of this massive amount of energy is the next key part of this puzzle. Think about it, what good is all of this energy if we cannot store it in times where it is not needed, so that we can use it in times when it is needed? The U.S. Energy Information Administration expects the capacity of utility-scale battery storage to more than quadruple; 4.3 GW of battery power capacity additions are slated to come online by the end of 2021.
Here is the kicker. The US Bureau of Labor Statistics estimates that solar PV installer will be the fastest growing job between now and 2028, with a median annual wage of over $42,000. This means that there will be many thousands of jobs right here in Texas for people that want to work in this industry, and this could offer a refuge to the thousands of people that have already lost and will lose their jobs related to the oil and gas industry. Since 2010, solar industry employment has grown by 167%, reaching nearly 250,000 jobs in 2019. The Jobs Census describes that: "Between 2014 and 2019, solar jobs grew five times faster than the overall economy." To me, the best stat is that 8% of solar jobs in the country are held by veterans which accounts for a higher proportion than in the overall economy.
Renewable energy is the sexy and smart choice for the future and the projections is that it is only going to keep growing for myriad reasons but the future of solar power in the US is especially bright!
Want to learn more about the Renewable Energy Revolution, and how to get in to this hot, emerging industry? Join us for our next webinar: April 20th at 12pm Central.
Have questions about growing your Solar or Wind Energy company?
Connect with Neal Duncan, our Renewable Energy consultant.
Neal@CoreGroupResources.com
281-665-2806