Is The Age Of Solar Upon Us? How SolarBank Plans To Capitalize On The Rise Of Solar Power

Disseminated on behalf of SolarBank Corporation.

While solar power has been a topic of conversation for decades now, the conversation has been, in many ways, relegated to the margins due to a lack of adequate governmental support and the issue of energy storage. It seems that both of those barriers to entry are no longer an issue and the age of solar has arrived. As of now, a staggering 79% of total U.S. energy production comes from fossil fuels, with petroleum accounting for 36%, natural gas for 32% and coal for 11%. However, pundits predict that this will soon change, with the Biden Administration setting an ambitious goal of 80% clean and renewable energy production by 2030. In many regards, the United States is late to the game, as European nations have already been making the move to renewables for some time; now, the Biden Administration has allocated $369 billion towards achieving the goal, and Vision Market Research is reported to forecast that the solar energy systems market could be worth $607 billion by 2030. 

Over the last decade, the U.S. solar market has witnessed notable growth, expanding by 42% annually. The trend seems set to continue, with another 41% increase expected this year alone. Bloomberg Intelligence is reported as having predicted that solar will be the fastest-growing sub-segment in the energy sector by 2023. Additionally, solar companies like SolarBank SUUNF and SunPower SPWR are working to capture the growth within the industry and creating an even more vital sector.

In addition to the environmental concerns over the continued use of fossil fuels, geopolitical events have propelled nations to reconsider how they source their energy. Most notably, the war in Ukraine has raised concerns over energy supply disruptions and polarizing investor and governmental opinion on fossil fuels. Paired with the falling costs of solar power structures, there is now more widespread support for solar and even many residential homes are making the transition.

The Inflation Reduction Act has also been instrumental in providing financial incentives to consumers and reducing the financial burden of "going green." It extends the solar investment tax credit (ITC) for ten more years, offering a 30% credit for purchase costs and an expected 50% credit for some governments and corporations. The corporate world is also coming under increased consumer pressure, making carbon-neutral plans and adopting clean energy.

With increased governmental support, companies like SolarBank can truly flourish. SolarBank is a leading renewable energy company that specializes in the development of solar power projects in Canada and the United States. The company has gained recognition for its unique approach to solar energy and its partnerships with industry giants like Honeywell International HON.

SolarBank recently made headlines for reaching commercial operation on a solar project in New York in collaboration with Honeywell International. This project involved the construction of a behind-the-key solar power plant to support Honeywell water treatment systems. The solar plant has a capacity of 683.55 kWdc and is expected to produce over 753,000 kWh of clean, renewable energy in its first year of operation. 

The company has also invested in solar gardens, which are smaller-scale solar projects that supply energy to local communities. SolarBank expects this to be a growing market and is already establishing itself as a leader in the space with developed projects in New York that serve more than 4,000 community solar subscribers. With utilities forming the largest share of demand globally for the company, it has also retained utilities focus in terms of capabilities.

With huge corporations like Google investing billions into renewable energy, it is inevitable that solar will continue to be on the rise. The ambitious goals set by the U.S. government, coupled with the allocation of financial resources, tax credits, investor pressure and the falling cost of solar structures, give impetus for solar energy to potentially become one of the most widely used power sources in the coming years. Companies like SolarBank could be instrumental in the development of the industry.

Featured photo by Karsten Würth on Unsplash.

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