How the Energy Crisis is Making Renewable Energy Sources More Attractive
As the nation battles with increasing energy costs, the conversation around renewable energy sources has never been more prevalent. Currently, fossil fuels still account for more than 80 per cent of global energy production, with only around 29 per cent of our electricity coming from renewable sources.
Our continued reliance on fossil fuels is concerning, not only because burning them is causing damage to the environment, but because it’s also unsustainable in the long term. Once these resources run out, we will need to be fully reliant on renewable energy.
What’s driving the current energy crisis?
Currently, the UK is facing a serious energy crisis. The cost of energy has shot up to unprecedented levels, leaving many businesses struggling to pay their energy bills. There are several reasons for this, including increased demand, limited supplies and the conflict in Ukraine.
Solar panels could be part of the solution, not only to the ongoing energy crisis but to help countries decarbonise as well. But how realistic is this, especially when we factor in the upfront costs of installing them?
Are solar panels the answer?
There’s no denying that solar panels offer a wealth of benefits; they produce fewer emissions, add value to properties and reduce energy bills. Plus, not only is solar the fastest-growing form of renewable energy, but it’s also the cheapest.
However, solar only generates 3.6% of global energy at the moment, and this is in large part because most people are concerned about the high installation costs. But it’s worth bearing in mind that the return on investment can make up for this. For example, the average cost of producing commercial energy via solar panels is 5p per kWh, but in comparison, businesses currently pay between 11p and 15p for the same amount of energy from their suppliers.
Frédérique Carrier, the head of investment strategy at RBC Wealth Management, believes more businesses could invest in solar panels if government incentives are expanded. Currently, the ECO4 is the only government-backed scheme that helps subsidise the cost of purchasing and installing solar panels.
How Wiseman Finance can help
Wiseman Finance helps businesses think about and fund greener energy solutions. Thanks to funding options like asset finance, there’s no reason why the installation costs of solar panels have to be prohibitive today It’s entirely possible to spread the initial investment across affordable repayments.
At Wiseman Finance, we work with a panel of lenders to provide finance for a range of sustainable energy assets. We can provide asset finance for a range of renewables including solar panel finance, wind turbine finance and biomass boiler finance. To speak to a member of our team, contact us at 03301 133 093 or apply online today.
Sources:
www.un.org/en/climatechange/raising-ambition/renewable-energy
www.ftadviser.com/investments/2022/10/05/energy-crisis-is-making-solar-power-more-attractive/
www.moneysupermarket.com/gas-and-electricity/business-energy/a/solar-panels/
