According to data recently uncovered from the Energy Information Agency, electricity coming from non-hydroelectric renewable sources (solar, wind, geothermal, and biomass) has doubled in the U.S. to almost 6 percent in a scant four years’ time.
It’s a bit surprising that this significant fact hasn’t been splashed all over the news. Businesses are portrayed as not believing clean energy is worth the investment, but that is simply not true for all. Some companies see the wisdom and fiscal prudence in planning for climate change. The press appears to focus more on manufacturing problems in the sector.
While it is true that the green manufacturing industry is experiencing some growing pains, take solar panel makers for example, it’s worth noting that the green industry is growing overall, and quickly too. China made enormous investments in solar, and they are the face of rising competition. They’ve brought down the price of panels by 65 percent in a mere 18 months. So this leads to fewer and bigger solar manufacturers, which is what happens in all mature industries. However, the explosion of growth in the solar industry comes from the businesses that sell, install, and maintain solar.
Perhaps renewable energy seems like small potatoes since it’s only a fraction of total electricity generation. But the magic is in the industry’s potential for exponential growth. If non-hydro renewables were to double three more times, they would provide nearly half of US electricity needs. That’s more than we get from coal or natural gas right now.
The renewable energy industry’s growth is not just limited to the U.S. either. Countries such as Portugal and Germany have transformed their power grids to generate 25 – 45 percent of their electricity needs from renewable sources.
The big question is if non-hydroelectric renewables can continue to double every four years? Well let’s start by taking a look at what kind of growth would be required to do so. Non-hydro renewables need 19 percent annual growth in order to double every four years. Some sectors grow that much or more. According to the Solar Energy Industries Association, the solar sector is growing 30 percent annually.
The bottom line is that the payback time for investing in renewable energy is getting faster every day. Wise homeowners, businesses, and governments are ahead of the curve because they see that the future is in renewable sources.