2017 has started with a resurgence of interest in solar pv. Notable newcomers to solar are from the industrial and commercial sectors where the focus is on the ability to generate green electricity at values many times below market prices.
Electricity price inflation is starting to take a real hold and is being driven not by the ‘commodity’ cost of generation, but in the ‘non-commodity’ elements of electricity pricing. ‘Non-commodity’ costs are made up of transmission and distribution charges, Capacity Market and environmental levies. Whilst there is variable visibility into the certainty of future energy costs the fact of the matter is they are only going one way.
Solar pv provides a low risk and easily quantifiable method of generating meaningful amounts of green electricity to reduce a site’s reliance on grid supplied power. Capital costs of solar equipment have greatly reduced and newly installed roof mounted solar pv arrays typically to deliver a levelised cost of energy of sub 3p / kWh.
In April’s edition of Economia, published by the Institute of Chartered Accountants England & Wales, the head of long term investing, infrastructure and development at the World Ecominic Forum, Michael Drexler makes a profound statement on renewable energy:
“Renewable energy has reached a tipping point – it now constitutes the best chance to reverse global warming. Solar and wind have just become very competitive, and costs continue to fall. It [renewable energy] is not only a commercially viable option, but an outright compelling investment opportunity with long-term, stable, inflation-protected returns.”
Whether or not you subscribe to the global warming argument raised here the economic case is indeed sound and there for the taking.
Boston Renewables have all of the skills and expertise available to develop and deliver solar pv arrays and wind turbines of any size. We look forward to engaging with the new band of companies keen to secure a long-term source of cheap, green and renewable power.