For the first time in history, investments in renewable energy installations surpassed investments in fossil fuel plants. According to Bloomberg New Energy Finance, last year $187 billion was invested in renewable energy installations, which exceeded the $157 billion that was invested in new natural gas, oil and coal plants.
The large investment into the renewable sector is great for the industry because it helped to lower the cost of materials and equipment. This makes clean energy sources more feasible for consumers and results in solar and wind energy becoming more competitive within the industry.
The spending increase in renewables is in large part due to subsidies provided by the government. There was about $66 billion in subsidies last year which played a significant role in the increase in renewable investments. The Federal and State governments are aware of the need to utilize clean energy sources and are working to make it possible for society to do so.
These findings show huge promise for the future of the renewable sector. The willingness to invest in clean energy sources, even during an economic downturn, proves that people are recognizing the importance of shifting our dependence on fossil fuels towards renewable energy sources.
Bloomberg New Energy Finance also recently reported that renewable energy investments are expected to double in the next eight years showing that the costs of equipment will continue to decrease and hopefully become more cost effective than nonrenewable sources. As fossil fuels have become a less desirable source of energy and the cost of renewables is decreasing, it is very apparent that solar and wind energy will become a larger part of the energy in the future.