Photovoltaic Systems: Financial Benefits
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by: BenWalker | Total views: 17 | Word Count: 625
While many people are concerned about the environment, and that is why they are interested in photovoltaic systems, they cannot afford to ignore the financial implications. So this article is going to explore what, if any, the financial benefits of using solar energy are.
How To Make Money With Solar Energy
The only way that photovoltaic systems are going to become a truly sustainable and long-lasting form of energy production is by being cheaper than fossil fuels from the savings made on energy bills. When that is the case, the transition should be swift.
In our current situation, however, if you were going to go by the savings that you make on energy bills alone, it would probably take around 25 years just to pay off the installation costs. That, clearly, is not a good return on an investment. Which is why the feed in tariff has not been introduced by the government.
When you take advantage of the feed in tariff, it means that after you have got a solar installation you get paid for all of the solar energy produced by your solar panels. And if you don't use that energy then you get an extra amount because it is exported to the National Grid for everyone to use.
The introduction of the feed in tariff has therefore made solar panels in to a far more favourable investment than they were without it. To show just how much of a better investment it is, instead of taking 25 years to pay off the cost of the installation, with the feed in tariff it usually only takes around 10 years instead.
Reasons for Incentivising Solar Energy
For a government to incentivise a certain industry there has to be a reason behind it. And when it comes to solar energy, there is a very good reason: they are trying to avoid any further global warming problems.
There are actually a number of reasons why it is a good thing that we have CO2 in the atmosphere. For one thing, it's what plants convert in to oxygen, which is what we need to breathe of course. Even when it comes to the greenhouse effect though, that is something that we need as well as without it the temperature of the planet would be too low for us to survive on it.
While CO2 is not something that is universally "bad" then, as with most things, too much of a good thing can actually be problematic. Such is the case with too much carbon dioxide is released, as the Earth can warm up too much, and this could lead to a number of things that we have to try avoid if possible.
It is possible, for example, that the Earth warming up more than it should could lead to ecosystems ceasing to function. If that were to happen then we may not be able to grow food in the quantities that we are at the moment, meaning that not everyone would have enough to eat.
Since this is potentially such a critical issue, it has to be wondered why governments are not actually doing more to tackle the problem. If we need to make the switch to things like photovoltaic systems, then why just incentivise, why not do more? The reason is that if they did much more they would be diverting resources from other areas of the economy, and this could lead to a collapse.
The only way that a solution is going to be reached then, is when the technology of renewable energy is advanced enough so that it doesn't actually require any government help in order to get people to buy it. In fact, eventually it will probably be that it is taxed rather than subsidised, at which point it will be the best option available.
About the Author
Hayden Wood has written extra information about solar energy at http://www.photovoltaicsystems.org.uk. Discover how much money you can make, and the way it all functions. You could also get a free solarinstallation quote.
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