As we hit 2020, we’re taking a look at some of the things we’re most excited to see. Renewable, sustainable energy is the future, and that’s a future that makes a difference every single day; every hour brings us closer to more efficiency, better technology, and the next big breakthrough.
Innovation is coming from both private and public sectors, driven by forward-thinking people and organizations. Every interested party looks to what’s next, what matters in their industry, and how to maximize investment to get the world committed to smart, sustainable energy production.
In some areas, we did take a step back. The most recent federal spending budget slashed a number of tax credits designed to support electric vehicles. The $7,500 EV credit for Tesla owners will expire, a credit that was halved twice in 2019. The credit survives only as a $3,500 bonus for those who purchase a car from EV brands that have sold less than 200,000 in the calendar year.
Still, that big budget has some bright spots in the form of extended credits addressed towards biodiesels, wind, and solar. Those credits are designed to slowly reduce through the end of 2020, where they’ll have to be re-upped before the bill expires. Some of the coal credits included in the bill include mining on Native lands, and they’re substantial. Experts say that the coal credits more than erase the potential carbon emissions cuts supported by the aforementioned credits in green energy.
While that might all sound bleak, there’s good news. Solar is looking especially bright, no pun intended. At the end of 2019, the United States has enough solar energy production to support 13.5 million homes, and even with minimal support from the federal government, that number is expected to double by 2025.
A big part of that success comes from the huge improvements in energy storage. The cost of lithium-ion batteries fell by 35% since 2018, and by over 70% since 2012. These batteries are crucial in facilities that battle the costs of sizeable energy peaks. As load capacity increases, the more cost-effective these energy storage systems become, and the less businesses rely on their local energy grid rates, coal, or natural gas costs.
Additionally, those reducing tax credits might actual cause a surge in investment. With tax credits, currently set at approximately 30%, starting to decrease before their expiration, any businesses or investors will move now to make the most of that rebate. That means we’re going to be working to lock-in these credits and get projects booked early in 2020 to make the most of the credits right now. A $10,000 investment today sees a credit of roughly $2,600 in 2020; now is the time to make the move.
Finally, energy demand is expected to increase. Across industries, energy needs will continue to rise, and renewables are now efficient and affordable enough to plug the gap. As these technologies become more pervasive, they’ll move from being a niche or pet projects to the default mode of energy production. Investment in wind, solar, geothermal, and other renewables will become more lucrative, drawing even more backing and implementation.
There is a lot to be excited about as we head into 2020, and we’re excited to be a part of the sweeping change in the energy sector. What can renewables do for you? Call Keen and let us show you!