The year 2022 has been a difficult year not just in terms of inflation, but the global politics have also played a role in the energy crisis and the rising cost & demand for oil and gas supply. This has caused a ripple effect on the global economy, with several developing countries facing the brunt of the energy crisis. In contrast, developed nations continue their quest to build & harness solar energy and wind energy as the main source of power.
Inflation
The supply & demand of power in the global economy continue to swing as fossil fuels continue to dominate as the major source of energy. As a part of public incentives in most developed nations like the US, adding solar energy alternatives continues to be a source of tax credit for users. The high demand for building energy gives rise to an increase in solar power plant installation and acquiring a tax credit of some kind from the government.
Global Warming
The International Energy Agency predicts that renewable sources of energy could double in the next five years, with wind and solar energy leading the way. From the US to several European countries incentivizing green cities & clean energy, 2023 is said to be a year of the energy transition. Combating global warming is at the forefront of every nation in the world, forcing governments to set targets and push solar energy deals forward.
Storage
Compared to harnessing wind power, storing solar energy may play a key part in the rising demand for renewable energy. With solar energy cells coming in a range of sizes and being able to fit on nearly every home in most European and U.S. cities, the output of solar energy may continue to rise in 2023 and beyond. In fact, reports suggest that adding Solar Photovoltaic cells could be considered a cheaper source of new electricity generation in developing countries.
