When it comes to investing, you can’t beat a steady stream of reliable returns. For example, over the past 30 years the S&P 500 has returned an average of around 8% per year. But, as with all financial markets, investing can be stressful and volatile from time to time. Some years you could get hammered while other years you could see phenomenal gains. However, when things are stable, the key is to stay the course and keep investing for long-term returns. With that in mind, here’s why investing in new solar panel technology is worth your time:
The Current Solar Panel Market Is Tightening Up
When it comes to solar panel markets, we’re currently in a phase of tremendous growth. In fact, the global solar market has already reached a cumulative capacity of around 100GW, and is expected to reach a total capacity of over 250GW by 2020. However, in the next few years, the solar market is expected to experience a period of transition. Most significantly, the cost of solar panels is expected to decline. At the moment, solar panels have reached a point where they’re becoming more expensive than the electricity they produce. As a result, solar panel producers are expected to reduce their production levels. In fact, this is already underway. In the U.S., many solar panel manufacturers have filed for bankruptcy or reduced their production in order to reduce costs.
There’s Still Massive Growth Potential In Solar Technology
Given that the world has a massive solar panel market and the cost of solar panels is likely to decline, the question is, why invest in new solar panel technologies? The answer lies in the fact that solar technology is constantly being developed and improved. In fact, almost every year there are new breakthroughs in solar panel technology. And while the initial uptake of these technologies has been slow, it’s expected that as costs come down and adoption increases, the total market will continue to grow. For example, as costs come down and the need to source silicon from overseas is reduced, we’re seeing a surge in the use of silicon from the United States. By reducing the reliance on foreign-sourced solar panel technology, this boosts the value of the U.S. dollar. As a result, U.S. manufacturers are able to produce solar panels that are more affordable than ever before.
New Technologies Are Being Developed Daily
At the moment, the solar industry is in a period of transition. Most significantly, the cost of solar panels is expected to decline. As a result, solar panel producers are expected to reduce their production levels. While this is a positive step, it’s important to note that new technologies are being developed daily. For example, one of the most significant developments in solar technology is in the field of artificial intelligence. AI and the use of big data to power new solar technology has the potential to transform the solar market. AI has the potential to make solar panels smarter, more efficient and able to work more effectively. As a result, AI could enable solar panels to communicate with each other, with solar panel control systems and with utility networks.
The good news is that investing in new solar panel technologies, like AI and advanced silicon, is worth your time. Indeed, the solar market is expected to grow from around 100GW today to over 250GW by 2020. And as costs come down and adoption increases, it’s expected that the total market will continue to grow. If you’re interested in investing in new solar panel technology, it’s worth considering an investment into solar power. With so many people looking to invest in the future, it’s worth looking into crowdfunding platforms.
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