In order to promote the use of renewable energy resources, some governments decided to provide subsidies and the UK is one such example. According to PWC there was nearly £30 billion in renewable energy investment from 2010 to 2013 globally.
Over the past couple of years, the UK government subsidised and incentivized solar energy production for companies, as new players had high costs and needed to compete with established energy firms. That provided a level playing field for fresh innovation coming in from new and existing players. This strategy has proven to be quite a success for the region!
What are some benefits?
- Technological development of photovoltaic (pv) panels
- Competition in the market to boost supply
Initial subsidies allow companies to be innovative and focus on research and development. This was targeted at solar design and storage, including pv panels. These panels capture sunlight and generate electric power.
Now, as more players enter the market, there has been an increase in production of these panels and they are more affordable. One country that has been involved in the manufacturing of these pv panels is China. There are also large retailers, such as IKEA, that are now selling these panels in their stores.
Furthermore, as an incentive to get consumers on board to switching energy sources, they have the option to sell any extra energy stored in pv panels back to suppliers, ensuring sustainability.
China and India, two key emerging economies, have been encouraging solar development in their markets. They are adopting a similar approach to the UK government with subsidies and state support.
However, we envisage that the trend to subsidise may change in the future and as funding reduces in this sector, it’ll be interesting to observe the impact on design, storage and capacity of solar energy. Some focus factors we believe should include:
It is thus very important for companies to continue to develop technology and research to impact the above factors that can give the Solar energy industry a boost and a real chance.
Sources
About the Author: Adi G is an industry veteran with several years of experience in dealing with Energy, Utility and Resources industry clients and likes to present his views on topics that impact not just the industry but our communities and society in general. He can be reached @ady@luxconsultingservices.com
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