What if your one investment can give you lifetime free electricity, high ROI, and additional passive income? Sounds superb. This is where solar energy comes as a great investment option with growing demand for renewable energy. According to IndiaTimes, India’s renewable energy capacity will reach 168.96 GW by Feb 2023 and grow consistently. It shows that the world is shifting to renewable energy, and this investment will surely get higher returns.
Still, if you’re not sure, why invest in solar energy Now? Then you’re at the right place. At SustVest, we are always here to help. In this article, we will discuss eight major reasons why you should invest in solar energy and what the benefits are.
8 Reasons To Invest In Solar Energy Right Now
1. Market Is Growing Rapidly
The demand for solar energy is growing rapidly, and According to the International Energy Agency (IEA), solar energy is the fastest-growing source of electricity in the world. In 2025, it will also be the largest source of energy because the sun is an unlimited renewable energy source. It has more benefits than traditional electricity, such as being environmentally friendly, reducing carbon footprint, non-maintenance, and reducing electricity bills.
The high demand for solar energy is that the Government supports clean energy and implements various policies and tax incentives that encourage people to adapt to that change.
As the world shifts to renewable energy, the demand for solar panels and their products will continuously grow. So it’s a great time to invest in solar energy for higher returns and benefits.
2. Reliable Investment In a Volatile Market
Solar energy is not like a stock market that rapidly goes up/down with a risk. It’s the safest option in this volatile market where the demand for solar energy increases with time and gives higher returns in the future.
It is a reliable investment option because of its stable low costs. As the sun is an unlimited source of clean energy, the cost of solar panels remains low compared to traditional electricity, and it provides various benefits, such as reducing electricity bills, tax incentives, and non-maintenance.
Here are the Financial Benefits Of Investing In Renewable Energy.
3. Demand For Energy Is Increasing
According to Statistics, the global solar energy market is growing at a CAGR of 20.5% from 2019 to 2026. The world needs renewable energy, and solar energy is a one-stop solution as it’s a limitless natural energy source.
The Government is fully supporting solar energy, increasing awareness, and offering various incentives and tax rebates to make a shift to the renewable energy sector.
Investing in solar energy is a great option to capitalize on because it’s in growing demand, and if you invest in solar products and services, it will continue to rise with time.
4. Benefiting Environment
Solar energy is a natural & renewable energy that comes from the sun. It plays a crucial role in reducing greenhouse gas emissions, mitigating climate change, reducing carbon footprints and water usage, and it’s pollution-free. Overall, it’s way more beneficial, cheaper, and better than traditional electricity with an unlimited energy source.
To produce traditional electricity, Many resources are used, such as coal, fossil fuels, natural gas, and water, to produce electricity. However, solar energy is a clean, pollution-free, and renewable energy source that eliminates the need to waste resources and protects the environment from harmful gasses.
There’s no doubt that solar energy is going to be the biggest source of electricity for future generations.
5. Government Is Encouraging Solar Power
Governments around the world understand the importance and benefits of solar energy, and to make that shift to renewable energy, they’re taking steps by increasing awareness of solar energy, creating policies, and offering incentives & tax rebates to make solar energy affordable for all and let them make a shift to renewable energy.
There are numerous benefits the worldwide governments are getting with solar energy, such as reduced cost of electricity production, eliminating the usage of coals, fossil fuels, and water used in traditional electricity production, it’s pollution-free, and energy independence as the sun shines across the globe. So, it’s accessible for all, and there are no boundaries to reach renewable energy.
With such growing awareness and incentives by the Government, the shift to solar energy is not so far, and it comes with an opportunity to invest in the future for high returns.
6. High Returns
By investing in solar energy, you’re making a wise decision for long-term profitability. One of the key reasons to invest in solar energy is because it’s a limitless source of energy, and that’s why the cost of solar panels and services will remain lower, which makes it more affordable and fast adaptable to the world.
Also, if you consider investing in solar energy for your own home or business, then you’ll save too much money, reduction on electricity bills, and other tax incentives that overall give you high returns on your investments.
Solar Energy is a better option for investment rather than stocks or bonds. It’s sustainable, has long-term growth, and is expected to get high ROI as the demand increases.
7. Long-Term Potential
According to the International Energy Agency (IEA), 3.6% of global electricity is generated from solar energy, which is still the third-largest renewable electricity.
It shows that solar energy has just started contributing electricity, and the world is quickly shifting to renewable energy. The potential of solar energy is very long-term and soon to contribute the biggest part of global electricity production.
This could be a good time to invest in solar energy when the demand for solar energy is continuously growing and provide long-term growth and profitability.
8. Passive Income
Solar Energy is a great investment option to build a strong passive income without actively working. There are two ways to build a passive income:
- Leasing Solar Panels
- Power Purchase Agreements (PPAs)
Let’s discuss this in detail!
1. Leasing Solar Panels
One of the best ways to build a passive income is by buying solar panels and leasing them to any individual or business and getting a monthly fee for using the solar panels. This is how an investor starts getting a steady cash flow for a long period. Generally, the solar panel lease agreement lasts for 10-20 years, giving a reliable source of income. The best part, there’s no investor’s responsibility for maintenance. Also, investors get tax incentives and depreciation deductions of around 26% of the cost of solar panels, which gives extra monetary benefits.
2. Power Purchase Agreements (PPAs)
Power Purchase Agreements (PPAs) are another best option for building a passive income where investors install solar panels, generate electricity and then sell the electricity to third-party utility companies and businesses at a fixed rate. Investors can build a long-term cash flow per the general contract of 10-20 years. Solar Energy will be a great investment option where a one-time investment can give lifetime higher returns and cash flow.
Check out our article What Are The Top Solar Companies In India 2023 here.
FAQs: Why Invest In Solar Energy Now?
Why should you invest in solar energy now?
Here are a few reasons to invest in solar energy now:
- Growing market and comparatively less volatile investment
- Long term potential
- Government incentives and schemes
- Source of passive income
- Environmental benefits
What are the ways that you can use to invest in solar energy?
There are a lot of means that you can use in order to invest in solar energy, some of which are:
- Invest in solar company stocks
- Invest in exchange traded funds (ETFs)
- Invest directly in solar projects with SustVest
These are the eight major reasons why invest in solar energy and how it offers various benefits for the long term. We hope this article helps you to understand the importance of solar energy, its future, and the benefits of investing in solar energy. However, investing in solar energy is a big step that requires expert guidance.
With SustVest, you can take your first step in investment and invest confidently in solar energy. So it’s time to choose the best-fit options for investment and build a long-term sustainable income for your future.
Founder of Sustvest
Hardik completed his B.Tech from BITS Pilani. Keeping the current global scenario, the growth of renewable energy in mind, and people looking for investment opportunities in mind he founded SustVest ( formerly, Solar Grid X ) in 2018. This venture led him to achieve the ‘Emerging Fintech Talent of the Year in MENA region ‘ in October 2019.