The rise of Eco-consumerism fueled sustainable markets. Now, companies must adopt renewable energy sources to remain competitive in their fields. Brand image and customer loyalty improvements partially drove clean energy sales over the past year.
Technological advancements also decreased the price of renewable energy, increasing its buyer appeal. Various companies use clean power sources to shrink their carbon footprint and lower their utility costs.
Government funding helped the industry improve its efficiency and expand accessibility.
Government Push
President Biden signed the U.S. onto the Paris Agreement during his first day in office. The signature represents our commitment to climate change prevention through carbon emission reductions. When using renewable energy devices, we can meet electricity demands while reducing greenhouse gas emissions.
The Agreement’s goal is to limit the global temperature increase to 2 degrees or below, compared to pre-industrial levels.
It requires a mass alteration in global energy sourcing, eliminating our fossil fuel power reliance. The government, plus commercial and residential sectors, are doing their part by investing in clean energy systems.
Additionally, President Biden initiated the Build Back Better plan by allocating $2 trillion to the renewable energy industry. The funding promotes green industrial growth and clean power employment.
Renewable power companies may access this budget, generating technological advancements and production.
Tax Credit Extensions
Another driving factor of renewable energy’s increase is tax credit extensions. Increasing the affordability of clean energy systems promotes higher consumption rates. The government utilizes a portion of the Build Back Better funding to expand tax incentive rewards for customers.
Congress extended the wind production tax credit (PTC) past its original expiration date, pushing it through 2021. They additionally lengthened the offshore wind development incentive, helping consumers access a 30% credit through 2025. The extension increased wind turbine sales and installations, improving renewable power production and consumption.
In 2010, officials passed the investment tax credit (ITC), increasing the solar industry’s growth by 42% since its establishment. As the incentive neared its expiration date, environmentalists predicted a decline in clean energy purchases. Fortunately, the government extended the ITC through 2024.
In 2022, the solar credit will decrease to 22% and then to 10% in the following years. Geothermal energy also received a tax incentive extension, increasing recent sales and clean energy consumption. Congress extended the credit through 2022, decreasing savings from 30% to 26%.
Wind Power
Investing in wind power generates various consumer benefits, contributing to an increase in system sales. Technological advancements help citizens fuel their houses and cars with wind-generated electricity. The cost of the renewable energy source is also decreasing.
Researchers predict up to a 35% price reduction in wind power by 2035. As costs drop, system owners’ utility savings will increase. Installing renewable energy systems on a property also increases its value, providing a high return on investment.
Solar Energy
Solar system sales increased significantly over the past year. The increase was due partially to the tax incentive, as well as systematic advancements. Recent photovoltaic panel changes increased their efficiency, optimizing electricity outputs.
The price of solar energy also decreased, boosting its cost competitiveness against fossil fuels. Business energy costs can drop by 75% after installing photovoltaic solar systems. Low utility prices drive solar sales and the industry’s expansion.
Hydroelectric Energy
Environmental scientists and engineers recently developed hydro-power technology that increases its sustainability.
Altering the industry and appealing to Eco-conscious consumers improved national consumption and sourcing. Last year, the U.S. obtained 7.3% of its energy from hydroelectricity, accessing 291 billion kilowatt-hours.
New marine and hydrokinetic (MHK) devices generate energy from the ocean. The technology can produce over 538 terawatt-hours of electricity annually. As efficiency and output levels increase, our hydro-power consumption will increase even further.
Waste-to-Energy
The waste-to-energy (WTE) sector is relatively new and instills sustainability into production practices.
WTE converts municipal solid waste (MSW) into green electricity, extracting hydrogen for fuel cells. When used in transportation, the source eliminates greenhouse gas emissions, only generating water as an output.
New York City is considering converting their public buses from natural gas to WTE. They could access enough power for the city’s fleet using one-fourth of their MSW.
Biofuels
Various companies view renewable energy sources as beneficial. But a lack of compatible technology limits some businesses from transitioning away from greenhouse gas-emitting fuel sources.
Environmental researchers discovered a method of reducing waste from conventional machines using biofuels. Of the 90% of electricity generated in the U.S. from thermoelectric power plants, biofuels is a prominent contributor.
Unlike solar power generation, professionals can develop biofuel using previously established sources. Earth’s abundance of vegetation with the ability to quickly reproduce supports clean energy production.
Farmers’ reliance on the biofuel industry increased its national rollout. Biofuels generate 32% of the industrial sector’s renewable energy supply. As technology advances and farmers develop additional production measures, the industry will expand.
The Future of Renewable Energy
President Biden plans to bring about a carbon-neutral nation in the coming decades. But meeting that ambitious goal requires the elimination of fossil fuel-reliant practices and ongoing advancements in renewable energy production.
Shifting towards clean power will significantly shrink America’s carbon footprint, aiding in climate change prevention throughout the world.
