Oil and natural gas prices have skyrocketed making companies invest in the cleaner energy source shining directly over our heads. Solar energy is the next big thing in the market. Companies have not hesitated in investing in solar energy and this trend has made solar IPOs enjoy 2007 as a record investment year.
Since the start of 2007, the 17-company solar component in the Wilder Hill Global Innovation index has soared 75%. The current year has brought $4.7 billion till date in solar investments for IPOs. The figure rested at $2.2 billion for 2006 and a mere $1.5 billion in 2005.
The growing popularity in solar energy has shown its potential. This widespread adoption of solar energy came because of multiple reasons, which mainly include:
Growing Oil Prices
Since the world is on the verge of consuming all the oil reserves, its price has been increasing and will continue to touch the sky till the time we are left with no oil at all. This has made companies figure out more options and the sun holds the best deal.
Fear of Global Warming
Burning fossil fuels create harmful greenhouse gases, which has raised the average temperature of the planet. This rise in temperature is causing the icecaps and glaciers to melt. If the temperature of the planet continues to rise then all the glaciers will melt causing an enormous rise in the water levels of the oceans, which will drown all the major cities of the world. Companies and individuals have now been warned about the consequences of global warming by the government agencies all around the world, making people think of the planet and provide ways to protect the human civilization from disaster. Here too, sun is the only source that can fulfill the increasing energy needs.
Media Hype
Media has hyped the whole scenario and has informed the masses about ways by which they can save some money and also save the planet if they opt for solar energy. Once customers, who are at the apex of the money chain, demand clean and renewable energy, companies are forced to alter their business plans.
Government Tax Breaks
Investors are also jumping on board the solar ship due to ever-increasing government tax breaks and a rising interest in complementing new building projects with solar additions. Places such as California have adopted many plans (Million Solar roofs), which aims at making people adopt solar energy.
Better Technology
Conventional solar cells were not that efficient and only 17-20% of the energy falling on them was converted into electricity. This inefficiency on part of the technology made people sway away from solar energy. However, recent years have seen some outstanding innovations that have bettered the amount of energy converted to about 42.8%. Such innovations have made people more aware about the real potential of solar power.
