The year 2020 has been extremely uncertain and full of anxiety and apprehension so far. Much has been said about how the global inter connectedness has painted a stark picture in the form of a major pandemic. The lack of international borders in the modern world has aggravated the health and life risk of bilions. People, business and goods that moved freely till date, much to our satisfaction, have stopped abruptly in their tracks. So, the question on everyone’s mind is how to live life as normally as possible, despite the current situation. And in this regard, access to power is a topic that deserves special attention.
The sustainable business approach
Pollution of air, water and land resources has plagued countries all over the world for quite some time. Extensive usage of non-renewable fossil fuels is an important aspect of that too. A recent study by Scott Kulp and Benjamin Strauss has also shown how climate change is impacting the world drastically. Closer home, the impact on coastal cities like Mumbai and Kolkatta can be overwhelming. For instance, one of the disastrous consequences of global warming is rising sea levels.
However, the COVID-19 phenomenon has focussed the spotlight on environmental sustainability like never before. More and more individuals and businesses are realising the importance of using environment-conscious approaches to run everyday life. So, this is the best time for you to take a call and move away from fossil fuels and go solar, to generate power and electricity.
Why go solar during this crisis?
Even when times are normal, you don’t postpone necessities, do you? Like, how many people actually postpone the purchase of a smartphone, thinking they will get a better/cheaper model next year?
You might argue that these are not normal times as there is tremendous uncertainty in every aspect of life. So, why invest in solar power? Well, to get an answer, you need to dig a little deeper. As you might be aware, the whole world is experiencing a supply disruption as well as a lack of demand currently. Many industries are staring at a bleak future. Will the recovery be quick or is there a recession ahead?
You can turn to the globally acclaimed consultancy McKinsey for their in-depth analysis of likely scenarios. Optimistically speaking, the COVID-19 spread might get eventually controlled, and catastrophic structural economic damage might be avoided. However, this is based on the global picture. The economic impact might vary across individual countries and regions. But, all these scenarios lead to V- or U-shaped recoveries.
Other, more extreme scenarios are equally likely too. There is the possibility of a “black swan event” with structural damage to the economy, caused by a year-long spread of the virus. Combined with a lack of policy response to prevent widescale bankruptcies, unemployment, and a financial crisis, this can result in a prolonged L- or W-shaped growth trajectory.
With the number of new cases increasing exponentially in many countries in Europe and the United States, these more extreme scenarios cannot be excluded for now. After all, a possible vaccine and its large-scale deployment are 12-18 months away.
This is the right time to go solar
Given the uncertain scenario at present, what you should invest in requires careful consideration. Because of the uncertainty in any kind of business, there are very few competing claims on your business (or personal) capital. Plant and machinery (or that foreign holiday) investment have an unfavourable risk-weighted return—unfavourable due to uncertain future cash flows. However, returns on solar power are handsome and assured.
The other important factor to keep in mind is the movement of currencies. Globally, currencies are deflating. The US$ is strengthening though and import costs will rise shortly. Even Chinese imports (they lead in solar panels) are US dollar-denominated, and so, you can’t expect prices to drop soon.
India is ready for solar power
As a country, India has crossed the tipping point where grid power is now more expensive per unit compared to solar. You can read a recent 2019 report to learn about the future scenario.
India is already the lowest-cost producer of solar power, as reported in the Economic Times. Among other factors, the reason why India is at an advantage when it comes to solar power, is cheap labour. Installation is very labour-intensive and only 20-30% of the requirement is for highly skilled personnel. And, in the current environment, semi-skilled labour will be in abundant supply as regular avenues of employment get choked.
All said and done, this is the best time to invest in solar power in India. Visit a reputed vendor like Genus for reliable, cost-effective turn-key solutions today.