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
Insights/Opinion
Pexels

Tackling Climate Change Requires Healing the Divide

Canadian climate change opinion is polarized, and research shows the divide is widening. The greatest predictor of people's outlook is political affiliation. This means people's climate change perceptions are being increasingly driven by divisive political agendas rather than science and concern for our collective welfare.

Keep reading... Show less
Popular
Westend61 / Getty Images

EcoWatch Gratitude Photo Contest: Submit Now!

EcoWatch is pleased to announce its first photo contest! Show us what in nature you are most thankful for this Thanksgiving. Whether you have a love for oceans, animals, or parks, we want to see your best photos that capture what you love about this planet.

Keep reading... Show less
Food
Pexels

10 Chefs Bringing Forgotten Grains Back to Life

Millets are a staple crop for tens of millions of people throughout Asia and Africa. Known as Smart Food, millets are gluten-free, and an excellent source of protein, calcium, iron, zinc and dietary fiber. They can also be a better choice for farmers and the planet, requiring 30 percent less water than maize, 70 percent less water than rice, and can be grown with fewer expensive inputs, demanding little or no fertilizers and pesticides.

Keep reading... Show less
Adventure
Háifoss waterfall is situated near the volcano Hekla in the south of Iceland. FEBRUARY / Getty Images

The Essential Guide to Eco-Friendly Travel

By Meredith Rosenberg

Between gas-guzzling flights, high-pollution cruise ships and energy-consuming hotels, travel takes a huge toll on the environment. Whether for business or vacation, for many people it's not realistic to simply stop traveling. So what's the solution? There are actually numerous ways to become more eco-conscious while traveling, which can be implemented with these expert tips.

Keep reading... Show less
Sponsored
Animals
Freder / E+ / Getty Images

Surprising Study: Orangutans Are Only Non-Human Primates Who Can 'Talk' About the Past

We already know that orangutans are some of the smartest land animals on Earth. Now, researchers have found evidence that these amazing apes can communicate about past events—the first time this trait has been observed in a non-human primate.

A new study published in the journal Science Advances revealed that when wild Sumatran orangutan mothers spotted a predator, they suppressed their alarm calls to others until the threat was no longer there.

Keep reading... Show less
Health
Suicide rates are highest for males in construction and extraction; females in arts, design, entertainment, sports and media, the CDC found. Michelllaurence / Flickr / CC BY 2.0

CDC: Suicide Rate Among U.S. Workers Increasing

From 2000 to 2016, the suicide rate among American workers has increased 34 percent, up 12.9 per 100,000 working persons to 17.3, according to a worrisome new study from the Centers for Disease Control and Prevention (CDC).

Workers with the highest suicide rates have construction, mining and drilling jobs, the U.S. health officials reported Thursday.

Keep reading... Show less
Sponsored
Energy
PG&E received a maximum sentence for the 2010 San Bruno natural gas pipeline explosion. Wikimedia Commons / CC BY-SA 3.0

Report: 90% of Pipeline Blasts Draw No Financial Penalties

A striking report has revealed that 90 percent of the 137 interstate pipeline fires or explosions since 2010 have drawn no financial penalties for the companies responsible.

The article from E&E News reporter Mike Soraghan underscores the federal Pipelines and Hazardous Materials Safety Administration's (PHMSA) weak authority over the fossil fuel industry for these disasters.

Keep reading... Show less
Politics
Nevada Test and Training Range. U.S. Air Force / Airman 1st Class Kevin Tanenbaum

U.S. Navy Proposes Massive Land Grab to Test Bombs

Friday the U.S. Navy released details of a plan to seize more than 600,000 acres of public land in central Nevada to expand a bombing range. The land under threat includes rich habitat for mule deer, important desert springs and nesting sites for raptors like golden eagles.

Keep reading... Show less
Sponsored

mail-copy

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