Solar energy prices have dropped significantly in the last few decades, making it cheaper than fossil fuels like coal in most places.
However, investment and deployment of solar energy have stagnated despite the lower prices, as profitability remains an issue.
Companies like Shell have pledged to transition to renewables, but they have conditioned it on renewables delivering high profit margins of 8-12%, which is unlikely.
Returns on renewable energy projects are typically around 4-8%, much lower than what companies like Shell require.
Fossil fuel companies and asset management firms are not investing substantially in renewables, as profit remains the main driver rather than sustainability goals.
The parts of the solar business that are profitable involve manufacturing and mining, where exploitation and poor conditions remain.
Profit, not price, determines what gets produced. Without profit potential, the transition to renewables will not happen at scale.
Like water power in the past, solar energy is a cheaper source of energy but less profitable due to difficulties in privatization and exploitation.
The transition to renewables will likely come with major drawbacks as long as profit remains a requirement.
Systemic changes are needed to make the transition to renewables in a just and sustainable manner.
Solar energy prices have dropped significantly in the last few decades, making it cheaper than fossil fuels like coal in most places.
However, investment and deployment of solar energy have stagnated despite the lower prices, as profitability remains an issue.
Companies like Shell have pledged to transition to renewables, but they have conditioned it on renewables delivering high profit margins of 8-12%, which is unlikely.
Returns on renewable energy projects are typically around 4-8%, much lower than what companies like Shell require.
Fossil fuel companies and asset management firms are not investing substantially in renewables, as profit remains the main driver rather than sustainability goals.
The parts of the solar business that are profitable involve manufacturing and mining, where exploitation and poor conditions remain.
Profit, not price, determines what gets produced. Without profit potential, the transition to renewables will not happen at scale.
Like water power in the past, solar energy is a cheaper source of energy but less profitable due to difficulties in privatization and exploitation.
The transition to renewables will likely come with major drawbacks as long as profit remains a requirement.
Systemic changes are needed to make the transition to renewables in a just and sustainable manner.
https://www.youtube.com/watch?v=3gSzzuY1Yw0