Good news for the solar energy industry. FinTech is on your side!
If you were thinking about going renewable so your electricity bill gets drastically reduced, NOW is the perfect time. Choose renewable. Choose green. And let Fintech help you.
Published March 2, 2023
With the recent escalation of oil prices, the solar industry has the potential to flourish
We are aware that in theory, high oil prices may encourage further investment in oil and gas projects. However, in the long run, renewable energy sources may ultimately profit from the current environment. Many energy industry analysts think that the current high prices could actually encourage governments and oil majors to invest in renewable energy instead of directly opposing renewables and slowing the green energy transition.
Why do we love solar power so much?
Mainly because it has reduced carbon emissions compared to other parts of the energy sector. Solar energy benefits the environment by lowering carbon emissions and greenhouse gases because it is mostly dependent on the sun. Solar energy produces no pollution, in contrast to fossil fuels.
The cost of solar panels has decreased by 90%
In an ideal world, the environmental benefits should be enough to convince investors to look into green energy. The good news is that the costs of solar power are finally dropping. We say “finally” because 10 years ago it was the most expensive alternative for constructing a new energy facility. Data from the Levelized Cost of Energy Report shows that since then, that cost has dropped by 90%.
Customers have easier financing options to access green energy
In the past, traditional financial institutions have imposed significant transaction charges and fees on borrowers in the solar industry according to GreenBiz. Small and Medium Enterprises faced challenges in obtaining solar leases or loans mostly because banks wanted a sizeable amount of equity, something that many SMEs lack. This is one of the reasons why some solar installation projects (especially those for mid-sized commercial projects) have encountered roadblocks. Alternative lending methods are replacing traditional loans as the new standard for how businesses and consumers finance solar initiatives.
The perfect time is NOW
Renewable energy has never been cheaper than it is now. And there were never as many convenient financing options for SMEs and private individuals as there are now. A few years ago, although it was still cheaper than coal and gas, green energy was not the best idea. But now Fintechs are lending you a helping hand. You no longer have to deal with the fees and transaction costs, which were the main reasons most SMEs and private individuals were avoiding renewables.
If you were thinking about going renewable so your/ your company’s electricity bill gets drastically reduced, NOW is the perfect time.
Choose renewable. Choose green. And let Fintech help you.
Sources:
- What impact will the rise in oil prices have on the energy transition? | Bahrain 2022 | Oxford Business Group
- https://cordis.europa.eu/article/id/135510-fintech-helps-power-the-green-energy-revolution
- Peer-to-peer power? Finance tech comes to solar energy | Greenbiz
- Do FinTech trigger renewable energy use? Evidence from OECD countries – ScienceDirect
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