Solar Panel
INTRODUCTION
When thinking of starting a contracting business for solar panels, many economic issues and concerns play a factor in the decision making process. Having a concern for the environment and knowing that solar panels have a cost saving for both households and business seems to be reason enough to start a business. However, before making such a financial investment you should first take a look solar panels in the economy in terms of (i) GDP growth rate, (ii) interest rates, (iii) level of unemployment, (iv) business cycle, (v) fiscal policy, (vi) monetary policy, (vii) international trade, and (viii) demographic.
RELEVENT ECONOMIC PRINCIPLES
Looking into macroeconomics issues when considering starting a Solar Panel contracting business, we must identify the Gross Domestic Product (GDP) growth rate. The price of energy and how use it is a determining factor on its GDP growth rate. Solar Panels are a lower cost energy source needed in today’s economy. Having affordable energy helps the economy as its facilities economic growth. The shares of energy in the U.S. has decreased, but it is still a component of the overall economy and the world share of energy. (Institute for Energy Research, 2010)
Solar Panels help with the growth of the economy and its economic growth is a major factor in terms of the world energy consumption. Economic growth has fluctuated in its energy demand specifically in recent years by 1.1 percent in 2009 and growing by 4.9 percent in 2010, and then growth of 3.8 percent in 2011 and 2.8 percent in 2012. (EIA U.S. Energy Information Administration, 2013)
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Figure 25 above shows us the total GDP from 1990 – 2020 provided both historical data and projection to show how the trend of the use of solar energy. “The growth rate slows over the period, peaking at 4.0 percent between 2015 and 2020 and declining to 3.5 percent between 2020 and 2040. Global economic growth in the Reference case is led by the emerging economies. Real
When thinking of starting a contracting business for solar panels, many economic issues and concerns play a factor in the decision making process. Having a concern for the environment and knowing that solar panels have a cost saving for both households and business seems to be reason enough to start a business. However, before making such a financial investment you should first take a look solar panels in the economy in terms of (i) GDP growth rate, (ii) interest rates, (iii) level of unemployment, (iv) business cycle, (v) fiscal policy, (vi) monetary policy, (vii) international trade, and (viii) demographic.
RELEVENT ECONOMIC PRINCIPLES
Looking into macroeconomics issues when considering starting a Solar Panel contracting business, we must identify the Gross Domestic Product (GDP) growth rate. The price of energy and how use it is a determining factor on its GDP growth rate. Solar Panels are a lower cost energy source needed in today’s economy. Having affordable energy helps the economy as its facilities economic growth. The shares of energy in the U.S. has decreased, but it is still a component of the overall economy and the world share of energy. (Institute for Energy Research, 2010)
Solar Panels help with the growth of the economy and its economic growth is a major factor in terms of the world energy consumption. Economic growth has fluctuated in its energy demand specifically in recent years by 1.1 percent in 2009 and growing by 4.9 percent in 2010, and then growth of 3.8 percent in 2011 and 2.8 percent in 2012. (EIA U.S. Energy Information Administration, 2013)
1
Figure 25 above shows us the total GDP from 1990 – 2020 provided both historical data and projection to show how the trend of the use of solar energy. “The growth rate slows over the period, peaking at 4.0 percent between 2015 and 2020 and declining to 3.5 percent between 2020 and 2040. Global economic growth in the Reference case is led by the emerging economies. Real
References: Bee, F. (2014, January 23). Center for Economic and Policy Research. Retrieved from Fivew Economic Policy Charges for 2014 that could Boost Employment and Reduce Climate Disruption: http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/five-economic-policy-changes-for-2014-that-could-boost-employment-and-reduce-climate-disruption EIA U.S. Energy Information Administration. (2013, July 25). Retrieved from International Energy Outlook 2013: http://www.eia.gov/forecasts/ieo/world.cfm Institute for Energy Research. (2010, February 16). Retrieved from A Primer on Energy and the Economy: Energy 's Large Share of the Economy Requires Cautioin in Determining Policies that Affect it: http://www.instituteforenergyresearch.org/2010/02/16/a-primer-on-energy-and-the-economy-energys-large-share-of-the-economy-requires-caution-in-determining-policies-that-affect-it/ Mattson, B. (2013, January 29). GreentechSolar. Retrieved from Guest Post: Brad Mattson on the Real Birth of the SOlar Industry and the beginning of Solar 2.0: http://www.greentechmedia.com/articles/read/Guest-Post-Brad-Mattson-on-the-Real-Birth-of-the-Solar-Industry McConnell. (n.d.). Medium.com: Armchair Economics. Retrieved from Solar Energy:This is What a Disprutive Technology Looks Like: https://medium.com/armchair-economics/cbc9fdd91209 National Renewable Energy Laboratory. (2012, April 3). Retrieved from Solar Releases Attracting New Demographics: http://www.nrel.gov/news/features/feature_detail.cfm/feature_id=1816 Office of the United States Trade Representative, Executive Office of the President. (2014, February). Retrieved from New Trade Enforment Action Combants Barries to U.S. Clean Energy Products: www.ustr.gov/about-us/press-office-releases/2014/February/New-trade-enforcement-action-combats-barrier-to-US-clean-energy-products