Quantcast
Business

5 Reasons Solar is Beating Fossil Fuels

Jacob Sandry

The solar industry is growing drastically every year, while fossil fuels continue to be phased out. This is why it's frustrating to hear people say that renewable energy is not ready to compete with fossil fuels as a means to power our country. Here are five reasons why solar is already winning. 

Photo courtesy of Shutterstock

1. Jobs

There are more people in the U.S. employed in the solar energy marketplace than mining coal. The banal argument that transitioning to a clean energy economy will cost us jobs is simply false. Solar is growing more than 10 times faster than the American economy.

Solar already employs more than coal, and that gap is widening. In 2012, solar added 14,000 new jobs, up 36 percent from 2010 and the industry will add another 20,000 jobs this year. The fossil fuels industry cut 4,000 jobs last year. So when it comes to employing Americans, solar is winning.

2. Price

Solar panels have a seen a consistent drop in prices over the last three decades, and in the last few years that drop has been meteoric. In the last 35 years prices have gone from $75/watt to around $.75/watt. Since 2008, the cost of coal has risen 13 percent. In some parts of the market, solar has already reached parity with coal.

I’m sure you’ve heard the argument that solar is economically effective only by relying on government subsidies. Currently this may be true, but if solar prices reach Citigroup’s prediction of  $.25/watt by 2020, subsidies may not be needed. And then there’s the glaring fact that oil, gas and coal receive subsidies that dwarf those of renewables ($409 billion vs. $60 billion globally).

And that’s ignoring the extra costs that burning fossil fuels impose on the rest of society, that aren’t paid by fossil fuel companies (called externalities by economists). The Harvard Medical School estimates that burning coal in the U.S. costs $500 billion in environmental and health damage (and then there’s, you know, the whole climate change thing). If those costs were taxed onto coal plants, the price of coal would more than double.

3. Capacity

With the cost of solar dropping rapidly, installations are escalating at an exciting rate.

Earlier this year, the U.S. became the fourth country to have 10 gigawatts of solar energy capacity, with installations increasing at a rate of 50 percent annually for the last five years, that rate is expected to increase to 80 percent this year.

Two-thirds of global solar capacity has been installed over the last two years. In contrast, 175 coal fired power plants in the U.S. are expected to be shut down over the next five years (more than 10 percent of total capacity). This reflects the rising costs of coal and the implementation of stricter environmental regulations.

4. Investment

While fossil fuels have been an omnipresent part of investment portfolios for decades, their reign may be coming to an end.

Recently a number of reports have shed light on an impending carbon bubble. Fossil fuel companies are valued in the market based on their reserves of unburned fuel still in the ground. If international regulations are put in place to prevent atmospheric carbon dioxide levels from rising above 450 ppm (the estimated cap to avoid irreversible climate change), much of the listed reserves couldn’t be used.

This means that many fossil fuel companies are overvalued as they potentially have huge unburnable reserves of fuel. British bank HSBC estimates that once stricter climate regulations are put in place, the value of fossil fuel companies may fall drastically. Already, coal companies have dropped in value 75 percent over the last five years. 

Firms like Mercer and WHEB are advising investors to move their investments out of coal and oil and into renewables. Major investors are already making this move. Warren Buffett has invested in one of the largest solar farms in the world and has predicted the end of coal as an American power source.

5. Environmental Impact

Environmental impact should be pretty clear, but here are some interesting impacts of coal extraction and burning that you may not be aware of:

  • acid mine drainage and coal sludge pollutes rivers and streams
  • air pollution causes acid rain, smog, respiratory illnesses, cancers and toxins in the environment
  • coal dust from mining causes respiratory illness
  • coal fires in abandoned mines put tons of mercury into the atmosphere every year and account for three percent of global carbon dioxide emissions
  • coal combustion waste is the second largest contributor to landfills after solid waste
  • mountaintop removal coal mining causes flooding, destruction of entire ecosystems and communities, and the release of greenhouse gases
  • emissions of 381,740,601 lbs of toxic carbon dioxide, methane, sulfur dioxide, mercury, radioactive materials and particulate matter annually
  • enormous contributor to global climate change

Jacob Sandry is a fellow at Mosaic, a company connecting investors to high quality solar project.

Visit EcoWatch’s RENEWABLES page for more related news on this topic.

——–

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Adventure
Muir Woods, which costs $10 for entry, will have free entry on Sept. 22. m01229 / Flickr / CC BY-NC 2.0

Visit Any National Park for Free This Saturday to Celebrate 25th National Public Lands Day

If you're stuck for plans this weekend, we suggest escaping your city or town for the great outdoors.

This Saturday marks the 25th National Public Lands Day, organized by the National Environmental Education Foundation (NEEF).

Keep reading... Show less
Climate
A glacier flows towards East Antarctica. NASA Goddard Space Flight Center / CC BY 2.0

Temperatures Possible This Century Could Melt Parts of East Antarctic Ice Sheet, Raise Sea Levels 10+ Feet

A section of the East Antarctic Ice Sheet that contains three to four meters (approximately 10 to 13 feet) of potential sea level rise could melt if temperatures rise to just two degrees above pre-industrial levels, a study published in Nature Wednesday found.

Researchers at Imperial College London, the University of Queensland, and other institutions in New Zealand, Japan and Spain looked at marine sediments to assess the behavior of the Wilkes Subglacial Basin during warmer periods of the Pleistocene and found evidence of melting when temperatures in Antarctica were at least two degrees Celsius above pre-industrial levels for periods of 2,500 years or more.

Keep reading... Show less
Energy
Oil well in North Dakota. Tim Evanson / Flickr / CC BY-SA 2.0

Pipeline Leaks 63,840 Gallons of Produced Water in North Dakota

A pipeline released 63,840 gallons (1,520 barrels) of produced water that contaminated rangeland in Dunn County, North Dakota, the Bismarck Tribune reported, citing officials with the North Dakota Department of Health.

Produced water is a byproduct of oil and gas extraction, and can contain drilling chemicals if fracking was used.

Keep reading... Show less
Insights
Residents stand in a long queue to fill water containers on May 27 in Shimla, India. Deepak Sansta / Hindustan Times / Getty Images

World Peace Requires Access to Safe Water

International Peace Day is Sept. 21. Mekela Panditharatne, attorney with the Natural Resources Defense Council, submitted the following op-ed to EcoWatch in commemoration.

In drought-ravaged East Africa, the cracks in the plains echo the fault lines splitting tribes.

Across the globe, the devastation of deadly brawls is being exacerbated by tensions over access to water. Water crises, often worsened by governance failures, can portend warning signs for instability and conflict. This year, the World Resources Institute cautioned that water stress is growing globally, "with 33 countries projected to face extremely high stress in 2040." The effects of such water stress span the gamut from civil unrest to open warfare.

Keep reading... Show less
Sponsored
Food

How Your Personality Type Could Influence Your Food Choices

By Melissa Kravitz

"You are what you eat" may be one of the oldest sayings ever to be repeated around the dinner table, but can you also eat what you are?

Keep reading... Show less
Climate
A child rides his bicycle in an area affected by the Hurricane Maria passing in Toa Baja, Puerto Rico on Oct. 5, 2017. RICARDO ARDUENGO / AFP / Getty Images

Hurricane Maria's Legacy: One Year Later

As Puerto Rico marked one year since Hurricane Maria made landfall yesterday, the Miami Herald this week ran extensive reports in English and Spanish on the island's continuing recovery.

Keep reading... Show less
Sponsored
Science
A foldable, biodegradable battery based on paper and bacteria. Seokheun Choi / Binghamton University, CC BY-ND

Could Paper Power the Next Generation of Devices?

By Seokheun Choi

It seems like every few months there's a new cellphone, laptop or tablet that is so exciting people line up around the block to get their hands on it. While the perpetual introduction of new, slightly more advanced electronics has made businesses like Apple hugely successful, the short shelf life of these electronics is bad for the environment.

Keep reading... Show less
Business
Blue Point Brewing Company

Long Island Brewer Launches 'Good Reef Ale' to Help Restore New York’s Oyster Reefs

Between the 1600s and the early 20th century, European settlers in New York City ate their way through 220,000 acres of oyster reefs covering 350 square miles, The Washington Post reported.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!