RENEWABLES COMING TO YOUR HOME!
- Jun 23, 2020 10:12 am GMT
Today we are covering the final part of my series reviewing trends for Renewables in 2020. We have covered some extremely interesting issues concerning the rise of Artificial Intelligence, Blockchain, Grid Parity and Climate Change prior to reaching the logical final chapter of this particular portfolio. What I hope has become evident is the interrelationship between the various topics, and how one often has a direct impact upon the other.
With this context laid out, we will be reviewing how Renewable appliances are becoming increasingly cost effective and available to the typical homeowner. It should be evident to the erudite reader that this trend plays directly into that of Grid Parity as well. Given their respective reliance on ever decreasing component cost. However, for the purposes of today, we shall be focusing solely upon its impact to the domestic consumer. What the reasons are? And what the potential impact will be as a trend in 2020.
Some of the more evident reasons may include improvements in basic product design. In other words, one’s panels, inverters and batteries, by way of example, are that much better designed for the vagaries of their intended roles. This results in stronger, more durable yet cheaper products on aggregate.
Another facet which is worth consideration is that of improved manufacturing efficiency. Therefore, you are not only receiving a better designed product. But one that is able to be manufactured to superior quality and performance efficiency on a sliding scale of cost. This is particularly noticeable with solar PV panels manufactured in China. Where they have been able to achieve the economies of scale to truly bring cost down to the bare minimum.
It is also important to also acknowledge the role of tax credits and similar tax based incentives in various countries which incentivise home owners to go green. Some are so favourable that it essentially subsidises much of the cost of installation. These policies when coupled with the improved design and manufacturing efficiency of many products makes for a potent cocktail stimulating the rate of adoption in the home owner market.
The sum total of all of this is that renewable components are becoming increasingly cheaper year on year. They are often tax write offs, or subsidized by national or regional governments. They are better designed, more efficient and come in a variety of appliances easy to integrate into your home. Some examples are solar panels for your roofing, inverters, blinds and awnings with built in solar panels amongst a myriad of other ingenious designs.
Besides the increasing cost effectiveness of many such installations, there is also the added value to be perceived in home owners being able to generate sufficient energy to satisfy their own consumption. With any surplus being sold back into the grid. Consequently, the trend of household uptake is not simply driven by continually reducing cost of installation. But also by the prospect that such appliances are able to pay themselves off, and even eventually turn a modest profit.
This is a powerful trend within the renewable market for 2020. Which underscores the increasing democratisation of renewable energy to the man on the street. This will lead to interesting dynamics in many energy grids with vast numbers of small producers feeding their surplus into same. This may help balance the grids as well as alleviate pressure on utilities to deliver a nation’s entire electrical needs on an ongoing basis. A seeming win-win for all involved!
Written by Gareth Foulkes-Jones
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