Renewable Energy and FinancingOctober 11, 2014
When it comes to renewable energy, it is common knowledge that government funding is the lifeblood of large-scale projects. In the coming years, small-scale projects may account for the majority of growth seen in the clean power field, however. While governments support small-scale projects in a variety of ways, the private sector is where these projects tend to thrive. As such, it is up to the consumer to make these projects successful. If small-scale projects see no adoption among consumers, government support could be moot.
Many people are interested in clean energy, but relatively few can justify the high costs associated with small-scale projects. The average cost of a home-based solar energy system is between $18,000 and $40,000. The majority of this cost comes from the equipment these energy systems use as well as the installation of these systems on a property. The high cost of solar power systems means that many homeowners do not want to use them, despite their interest in clean energy. For some, subsidies may be available to offset these costs, but not to the point where such energy systems can be considered financially viable.
Businesses specializing in clean energy may be able to solve this problem. Companies like SolarCity have changed the way people access clean power by providing them with financing options. These companies are offering financial plans that either offset or completely eliminate the upfront costs associated with clean energy systems. These plans are typically loans that can be paid off over time in small monthly increments and they have served as a way to boost the adoption of clean energy.
Financing plans have given consumers ore options when it comes to adopting renewable energy. These plans have helped smooth the transition away from conventional forms of energy and have changed consumer perspective on the viability of clean power. Clean energy remains an expensive investment, but as more companies begin offering financing plans for small-scale projects, the cost of clean power may begin to fall dramatically over the next few years.