The year 2017 has been monumental in regard to the production and use of renewable energy. With a tremendous surge in the production of renewable energy within the United States, renewables, for the first time in United States history, reached a 10% share in total domestic energy production in March of 2017. Wind and solar energy production are two of the fastest-growing means of energy production, but why?
Well, over the course of the last half-decade, there have been monumental changes in the understanding of renewable technology and government regulation, allowing for the cost of production to drop and total output to soar. In fact, with the help of government tax credits, the cost of the construction of wind turbines and solar panels may be slashed by as much as 30 percent, reducing initial investment and prohibiting the attainment of profits in a timelier manner. However, what has truly allowed the renewable energy sector to grow at such a rapid pace is the low cost of production. Even on an unsubsidized basis, the levelized cost of energy (LCOE) for renewable energy production has officially dropped below any other means of energy production. What this ultimately means is that the question is no longer ‘how much will the production of renewable energy cost me,’ but rather, ‘how much can I save by producing renewable energy?’
Now, what does all of this mean for the future of the energy market? The simple answer: renewable energy production is expected to soar to unprecedented heights. In fact, in the International Energy Agency’s “World Energy Outlook 2017,” it is predicted that by the year 2040, 40 percent of the world’s energy production will be renewable. This growth over the next 25-years is laid out to almost replicate the growth of the oil industry over the last 25-years. The reason for this expected growth is clear: the investment is undeniably a smart one. Low cost of production, high profits, and undeniable environmental benefits are driving the Energy Revolution forward, and nothing seems to be standing it it’s way.
The future of energy lies in the expansion of renewable energy production, and Scale Funding is prepared to assist in the process.
Scale Funding is an invoice factoring company serving businesses across the United States. For more information on factoring, call (800) 707-4845 for a free, no-obligation consultation and quote.