Remembering "Low Oil Will Kill Solar" How'd That Work Out?
It seems that oil is staying lower for longer. Can you remember when everyone thought that low oil would crush the solar industry? Seems like everyone was instigating that "Low oil is the end of solar". Wow were they ever wrong! If anything it has HELPED the industry by homeowners not trusting it, helping solar companies pay less at the pump for work and installation company vehicles and heat their offices for less. About one of the only things lower oil hasn't done is make people convert to solar and install electric heat......yet. I say that because what would happen if oil crept back to $80 a barrel rapidly? I for one tend to believe that oil may never get that high again.Ted "The Wolf" Strzelecki
It would seem this ITC til 2019 may do a large part in keeping it low. Timing this with the world (not just the US) overproducing at the demand of shareholders needing record numbers and overall economic greed, and you have too much oil and not enough need. Sound familiar? It should, this was one of the largest reasons for the housing bubble in the late 2000s, oversupply and low demand. So where does this leave us now with regards to solar and oil seesawing? Well, in a better spot if you are in solar to be honest. If oil should rise back to under supply price levels than solar should see an increased demand. Duh. Not really groundbreaking news there right? But to what extent?
See, the technology coming down the pipeline for solar at this moment is comparable to the amount of technology that came from the internet and dot com bubble in the 90s. Fast and furiously the amount of lending & financing programs, solar technology, battery & storage technology, cheaper prices, efficiency, and quicker installs are being implemented. At this pace if this keeps up between the acceptance and demand solar will be a large part of the energy arena that will no longer be allowed to be ignored and be forced to dealt with by big oil. If you can't beat em, join em.
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