Economic Impact Of Solar Energy Sources

Although the use of solar energy is not a completely new idea, its full impact on the economy is not certain. As green energy becomes accessible and affordable, how extensively and in what manner people use solar energy will determine its impacts on the environment. Large centralised solar power plants and cell factories will have more significant effects on the economy than local factories and distributed solar power plants.Large PlantsConstructing large solar plants have significant short-term economic benefits in creating construction jobs. However, once the plants are completed their employment potentials drop. More jobs can be created through the construction of a series of power plants every few years. This will create more construction jobs over a relatively long period. Solar energy generation plants produce large boosts in state products and average personal income when they are still under construction and moderate increase in income once completed.Local ProductionLarge solar generation plants are just a small part of the whole story. Solar energy is distributed energy. That means it is available in multiple locations and can be harvested by placing small solar batteries on large buildings. This saves land that would otherwise be required for large solar plants. Installing solar cells in houses and buildings in the locality stimulates local economies. Locally manufactured solar cells boost local economies in the form of manufacturing employment opportunities.Grid Cost SavingsToday, the majority of electricity is produced in large-scale power plants and distributed to homes, businesses and buildings. The infrastructure needed to produce and distribute electricity costs substantial amounts of money to build and maintain. As more people adopt solar energy, the costs of the infrastructure will go down substantially. Electricity generating firms will not have to build large-scale transmission lines because electricity is transmitted shorter distances within communities.Controversial Issues with Sustainable Energy SourcesThe term sustainable energy is mostly used to describe energy sources that are not petroleum-based. Some sources of renewable energy, especially those used to power vehicles, involve the combination of gasoline and other energy sources like electricity or hydrogen. Some of the most common traditional sources of energy include solar energy, biodiesel, wind energy and vegetable oils among others.Energy EfficiencySome experts argue that certain sustainable energy sources are inefficient if you consider the amount of energy needed to support them versus the amount of energy they produce. For instance, solar energy may seem like a limitless resource in certain regions such as deserts. However, most solar panels harness less than 22 percent of the sun's rays into usable energy. Considering that solar energy may cost anywhere between a few thousand pounds for home installation, it could take a while before most homeowners realise the benefits of solar power.Space EfficiencyAnother controversial issue with sustainable sources of energy is the amount of space required to produce or house them. For instance, producing ethanol requires corn and sugarcane bi products. Growing crops just for production of ethanol means governments will have to clear thousands of acres of land that may not be available in many countries.Space efficiency is also an issue with cars that utilise alternative energy. Hydrogen fuels are considered some of the cleanest fuels cars can use because they do not produce emissions. However, hydrogen fuel storage in cars allows only 200 miles of travel.International ImpactProducing alternative fuels can have detrimental effects on International relations and affairs. For example, the increased need for ethanol-based fuels have fuelled genocides in some countries. Some countries have stopped growing maise for food and instead grow it for its cash value. This causes the price of maise to soar and leaves little maise available for consumption. Poor nations are paying a huge price for food that has to be imported.Author Bio: Alan Reynolds is a solar energy expert who works for AmberGreen Energy. You can check out his thoughts and advice on www.ambergreenenergy.co.uk