Why Invest in Solar?

At Dyme, we are dedicated to reducing carbon dioxide (CO2) emissions, which is why we invest in solar energy and other renewable energy projects. Currently, fossil fuels make up 80% of global energy use and are the biggest source of CO2 emissions. Electricity produced by fossil fuels accounts for 34% of global emissions. By reducing the amount of electricity produced from fossil fuels, we can provide a sustainable solution for our planet and improve air quality.

What is Solar Energy and Why Invest in Solar for Renewable Energy?

Solar energy is the radiant energy emitted by the sun, which can be converted into thermal or electrical energy. It is considered renewable because it is inexhaustible and naturally replenished, unlike fossil fuels.

How Does Solar Energy Work?

When you ask why invest in solar, it’s clear that solar energy harnesses the power of the sun, a renewable resource, to generate electricity. Solar panels, composed of photovoltaic cells (PV) cells, convert sunlight into electrical energy. This process is not only sustainable but also reduces our carbon footprint significantly.

Why Invest in Solar Energy? Solar energy is a key focus for us because it offers multiple benefits that align with our goals:

Reduces Greenhouse Gas Emissions

Solar energy systems generate electricity without emitting greenhouse gases, helping to decrease air pollution and mitigate climate change.

Renewable and Sustainable Energy

Unlike fossil fuels, solar energy is inexhaustible and naturally replenished. The sun provides more energy than we could ever need, making it a reliable and sustainable power source.

Technological Innovation and Efficiency

Advances in solar technology have made solar panels more efficient and cost-effective. This is another reason why investing in solar is a smart choice.

When comparing solar energy to wind energy and tree planting, the Levelized Cost of Electricity(LCOE) provides crucial insight. According to the U.S. Energy Information Administration(EIA) in their Annual Energy Outlook 2023, the LCOE for onshore wind ranges from $27 to $59 per megawatt-hour(MWh). This makes onshore wind a competitively priced option in regions with favorable wind conditions, although its efficiency can be intermittent and location-dependent. In comparison, utility-scale solar photovoltaic (PV) systems generally have an LCOE between $25 and $50 per MWh, benefiting from declining technology costs and widespread sunlight availability. Solar energy offers more consistent power generation across diverse geographic areas and typically has a lower environmental impact during operation.

"Solar energy offers more consistent power generation across diverse geographic areas and typically has a lower environmental impact during operation."

"Solar energy often provides a more immediate and economically advantageous solution due to its lower costs and consistent performance."

On the other hand, tree planting focuses on removing CO2 from the atmosphere rather than preventing emissions from the outset. Trees require time to grow, leading to a delayed impact on carbon sequestration, and their activities can be compromised by events like forest fires. While tree planting is a valuable strategy for carbon management, it does not address the immediate need to reduce fossil fuel consumption for electricity generation. Thus, while both wind and solar energy offer direct benefits in reducing reliance on fossil fuels with their lower LCOE, solar energy often provides a more immediate and economically advantageous solution due to its lower costs and consistent performance.

What is the Actual Avoidance in Emissions?

When solar panels are used to generate electricity, they produce no direct emissions. For those asking why invest in solar, the answer lies in the substantial benefits: over their lifetime, a typical residential solar panel system can offset approximately 100,000 pounds of CO2, which is equivalent to the emissions from burning over 50,000 pounds of coal. This substantial reduction in greenhouse gas emissions makes solar energy an effective solution for mitigating climate change.

> Learn more about our detailed work on modelling emission avoidance from solar investments

To understand the full impact of solar energy on emissions avoidance, it’s essential to delve into the modeling. Various factors influence the extent of emissions offset, including:

System Size and Efficiency

Larger solar installations with higher efficiency panels typically generate more electricity and thus offset more emissions.

Geographic Location

The amount of sunlight received varies by location, affecting the system’s output and thus its potential to reduce emissions.

Energy Grid Mix

The current mix of energy sources on the local grid plays a significant role. In regions where fossil fuels dominate, the shift to solar power can lead to substantial reductions in carbon emissions.

Life Cycle Analysis

This involves assessing emissions from the entire lifecycle of the solar panels, including manufacturing, transportation, installation, and disposal, to accurately gauge the net emissions reduction.

Detailed modeling studies, such as those conducted by the National Renewable Energy Laboratory (NREL) and other research institutions, provide insights into these variables. For instance, NREL’s reports and analyses explore how different scenarios, including varying energy grid and technological advancements, impact the overall emissions reduction from solar investments.

Emissions in Building Solar Panels

While solar energy systems produce no emissions during operation, there are emissions associated with their manufacturing, transportation, and installation. These include the extraction and processing of raw materials, manufacturing of solar panels, and transportation logistics. According to the International Energy Agency (IEA) Photovoltaic Power Systems Programme (PVPS), the carbon footprint of manufacturing solar panels is about 20-30 grams of CO2 per kilowatt-hour of electricity produced. Despite these initial emissions, solar energy systems repay their carbon debt within 1-3 years of operation and continue to provide clean energy for decades, making them net positive for the environment.

Why not just plant trees?

Trees are an amazing solution to sequester carbon, reduce temperature and release oxygen in the atmosphere. However, they do not address the main problem, which are the emissions caused by fossil fuels. When we replace power from fossil fuels to renewable sources, we cut the evil at its root: emissions of greenhouse gasses. That’s why we focus on building renewables and not on planting trees.

Why Invest in Solar Compared to Wind, Geothermal, or Other Forms of Energy?

We are very concerned about making the most impact with the resources we have right now. To date, the most effective technology that reduces emissions with the lowest cost of installation and operation is solar energy. However, if the opportunities come, we can always make new investments in other forms of renewable energy.

How does solar energy impact power grids?

Solar energy impacts power grids by providing a clean, renewable source of power that reduces dependence on fossil fuels and decreases greenhouse gas emissions. However, the intermittency of solar energy and the resulting “ duck curve”- where solar generation is high during midday and drops in the evening – can introduce grid instability and challenges in balancing supply and demand.

“The intermittency of solar energy (…) can introduce grid instability and challenges in balancing supply and demand.”

“Batteries can store excess energy produced during peak solar generation times”

To address these issues, solutions such as battery storage and peaker plants are essential. Batteries can store excess energy produced during peak solar generation times and release it when production is low, helping to stabilize the grid. Peaker plants can provide additional power during periods of high demand or low solar output, ensuring reliable electricity supply.

While the integration of solar energy presents challenges, it also drives technological advancements in grid management and energy storage. Solar power contributes to peak demand management by supplying clean energy during high-demand periods, which can reduce the reliance on less efficient peaking plants and support overall grid reliability.

“The integration of solar energy (…) drives technological advancements in grid management and energy storage”

Why Invest in Renewable Energy?

Reduce Greenhouse Gasses

By increasing our generation of clean energy, we can reduce greenhouse gas emissions and decrease air pollution.

Create Jobs

We can create new jobs at local communities that would boost their economic growth.

Diversify Energy Supply

Expanding renewable energy reduces our dependence on fossil fuels.

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