Oil prices have fallen by more than half since July. Just five years ago, such a plunge in fossil fuels would have put the renewable-energy industry on bankruptcy watch. Today: Meh.
Tom Randall of Bloomberg has posted a great summary of 7 reasons that cheap oil can’t kill solar over at Renewable Energy World.
Briefly, here are Randall’s main points:
1) The sun doesn’t compete directly with oil (at least, not all that much)
2) Electricity prices are still going up
3) Solar prices are still going down (some analysts predict a further 40% fall in solar prices in the next 2 years!)
4) Sales of plug-in vehicles are doing just fine (I told you so!)
5) Pump prices haven’t dropped as much as oil prices (partially because other countries are doing what we should be doing—raising gas taxes and cutting fossil fuel subsidies while oil is cheap)
6) Oil prices won’t stay this low forever
7) Global investment in clean energy keeps flowing
Categories: Economic Indicators