No, cheap oil will not kill solar power
As the price of oil has tumbled to five-year lows, solar stocks have fallen with it: First Solar was trading near $72 in mid-September; now it's around $44. Solar City has around $65; now it's close to $50.
Solar energy investors seem to be running for the doors, fearing that cheap oil will erase demand for alternative energy. But it won't, say industry analysts. Oil and solar serve two different customers.
Oil dominates energy demand in transportation fuels, but solar power customers are primarily of two types: public electric utilities and large corporations. Neither of those use oil to generate electricity, and they are not about to start doing so, say analysts.
Less than 5 percent of the world's electricity comes from oil; most of it comes from coal, natural gas, nuclear and, increasingly, solar power. Public utilities sign long-term agreements with solar providers, sometimes spanning 20 years. Those deals are unaffected by oil price changes, said Jeff Osborne, an analyst with Cowen Group.
Comments (0)
This post does not have any comments. Be the first to leave a comment below.
Featured Product
HPS EnduraCoilTM Cast Resin Medium Voltage Transformer
HPS EnduraCoil is a high-performance cast resin transformer designed for many demanding and diverse applications while minimizing both installation and maintenance costs. Coils are formed with mineral-filled epoxy, reinforced with fiberglass and cast to provide complete void-free resin impregnation throughout the entire insulation system. HPS EnduraCoil complies with the new NRCan 2019 and DOE 2016 efficiency regulations and is approved by both UL and CSA standards. It is also seismic qualified per IBC 2012/ASCE 7-10/CBC 2013. Cast resin transformers are self-extinguishing in the unlikely event of fire, environmentally friendly and offer greater resistance to short circuits. HPS also offers wide range of accessories for transformer protection and monitoring requirements.
