If you follow #solar news, you likely realize how popular #solar power is becoming. Over the years, we have learned about the benefits offered by solar power, such as a reduction in carbon emissions and of course #energy sustainability. More people are demonstrating that they understand the benefits of solar power and #renewable energy. Schools are jumping on board with rooftop solar panels; individuals planning weddings are looking to make sustainable choices, such as “upcycling” the dress; and businesses are realizing the perks of wind and solar power! Major companies are on board with the shift to solar, and this is a great thing for our planet. #Executives have the power to lead the race to solar power, no pun intended! They can do this by sustaining a culture of performance improvement, for example, but we will get to this shortly.
To start, one has to wonder – what has led to the surge in solar power? Well, cost effectiveness has made a big difference. Photovoltaic system costs are roughly a third of the price they were in 2010, as per the US Department of Energy.
This has helped solar in becoming the biggest source of net power generating capacity added in 2017 with 98 GW, which is just under 40 percent of the yearly global total. This means it outdid the net additions of all fossil fuel technologies at 70 GW. The #Middle East has joined in on the gush of solar installations. As a matter of fact, the Middle East plans to add roughly 60 GW of new solar power capacity over the course of the next 17 years – and this is a plan certainly worth talking about.
How Can Executives Lead the Race to Solar?
Executives can and must lead the race to solar. How can they do this? Simply put, they can sustain a culture of performance improvement to lessen operating costs. They can invest in disruptive technology in order to increase solar cell efficiencies and meet customer demands. They can maximize operative metrics and make investments that will improve efficiency. Executives can establish strong project controls and financial planning to make sure solar projects succeed. Finally, they can constantly reassess manufacturing against market conditions (for instance, how tariffs impact the bottom line of their business).
Five Steps Executives Can Take To Get Ahead
Take a more detailed look at how executives can lead the race to solar here:
- Executives need to be mindful and pay attention to third-generation solar cells and disruptive technologies. They need to meet the demands of customers as well as pay attention to local regulations and environmental requirements.
- Executives must remain competitive in their operations. They must tackle costs with direct labor, raw materials, utilities and maintenance costs.
- Executives must demonstrate strong financial planning. Big solar projects must ensure equity returns, so financial engineering is critical.
- Executives must increase the agility of their business plans. Companies must be adaptable.
- Executives should consider investments to improve efficacy.
Market Trends Impacting the Industry
Unremitting player consolidation, technology enhancements and government regulations are three trends impacting the industry.
Hastening shifts in technology and practical improvements have led to higher solar cell efficiencies, such as diamond-wire wafer production and high-efficiency monocrystalline. Together with stable cost reductions, producers are mandated to catch up to the latest and highest purity and efficacy prospects. Companies must increase operations efficacy to meet the primary criteria of customers, which of course entails supply chain consistency, cost and product quality.
As it relates to the competitiveness of the solar manufacturing industry, government policies do in fact pay a major role. Rebates on electric costs and low-interest loans are just a few examples of government support. In China, we see that solar power is being viewed as a strategic industry which requires support and protection. When we talk about solar power, we hear about tariffs. There have been numerous reactions to protectionist trade policies.
If you are an advocate for solar power, you should be optimistic at this point because prices will likely keep dropping over the next few years. It has been predicted by the International Renewable Energy Agency that solar power will be competitive in terms of costs with fossil fuels by 2020.
When it comes to energy strategies, solar power is playing a huge part. A solar transformation is now happening. Stay in the know by following solar news – are you an executive who can play a role in the solar transformation race?