As technology has advanced and costs have decreased, consumers and businesses are increasingly interested in solar energy. Renewable energy sources are in higher demand since fossil fuel prices are high. Consequently, there are many ways to profit from solar energy while oil prices rises.
Therefore, we have compiled a solar investment guide showing 5 easy steps to invest in solar energy in 2023! But is solar actually profitable? Let’s see.
- Solar energy has become popular over the last decade as solar panel prices have plummeted.
- Over the next few years, solar is expected to be just as cost-effective as fossil fuels.
- Several publicly traded companies are involved in the solar industry, ranging from PV production to panel installation.
Solar power is becoming more cost-effective and efficient at converting the sun’s energy into usable electricity. People benefit from net metering and lower energy bills by installing solar panels in homes or businesses. So what are the 5 easy steps for solar investment?
1. Invest in Solar Stock
Newer reports show an average annual solar growth rate of 52%. Moreover, as the oversupply from Chinese production is met by increasing demand, the profits of solar companies are likely to increase. Solar panels are a sound investment in all Australian states, regardless of how much energy you use.
Solar panels are still a great investment in Australia. Even though the upfront cost, long-term savings, and payback time can vary greatly.
Renewable Utilities Stocks List Australia 2023 provides a detailed list of how and where to invest in solar stocks. It includes firms that manufacture solar power equipment and products for end users. Those that manufacture equipment used by solar panel manufacturers, and those that specialize in solar cell manufacturing. As of February 19, 2022, the fund had a year-to-date return of -15.59% and a three-year return of 41.10%.
2. Invest in Land Development for Utility-scale Solar
Land development utility-scale solar is a power generation facility that provides energy to the electric grid. These are also known as solar farms. Solar farm includes small-scale and large-scale solar.
Investing in utility-scale solar land is a more targeted approach to investing in the solar industry. A combination of fossil fuels, nuclear energy, and renewable energy typically powers utilities. These plants increase in value in sunny places like Australia.
Investing in a solar power plant can provide numerous advantages, including the following:
- Excellent return on investment
- Long-term contracts
- Cash flows tied to inflation
- Low volatility as a result of predictable revenue
- Earnings throughout the year
- Contributing to the growth of clean energy sources
3. Contribute to Solar Installation Process
Most state governments provide a tax break or grant to encourage more widespread use of solar panels. As a result, the total cost after installation could be lower than the sticker price. Furthermore, tax credits for solar energy help lower annual tax bills. However, net metering is the best way to profit from installing solar panels on your roof.
Net metering allows utility customers to produce their own solar energy to feed some excess energy back into the grid. This billing method credits solar customers’ electricity consumption, lowering monthly bills. Most cities in Australia have already passed net metering legislation. But the benefits of net metering can vary for solar customers across the country depending on various legislation and implementation.
The total estimation of Savings from solar panels adds up to much higher numbers.
4. Invest in Solar Panel Manufacturing
The solar panels are on the opposite end of the solar investment supply chain. The global supply of solar panels needs to be increased to meet demand. Like many others, innovative solar PV panel manufacturing and assembly startup businesses require early-stage capital to get off the ground.
Direct investments in renewable energy benefit our environment in the following ways:
- Enhancing energy efficiency
- Improving access to electricity
- Promoting economic development
- Reducing climate action
Businesses and business owners can invest in renewable energy through onsite and offsite direct investments. Given the solar industry’s rapid growth over the last decade, investing in domestic solar manufacturing is wise. The recurring revenue could pay dividends for years, resulting in a high ROI.
5. Be A Solar Homeowner
Solar panel investment is highly profitable. However, you do need some initial investment before you start saving money. In the long run, having a solar home counts as an investment because of the ROI. Check out Clean Energy Council’s solar guide to know the incentives and rebates on solar based on your area.
You can also earn money in exchange for the green energy shared by transferring the excess energy produced by his panels to the local utility grid. You also get the added benefit of reduced electricity bills. As soon as you install solar, you’ll receive a minimal amount for your electricity bill, increasing your savings.