Why is Renewable Energy Growing So Quickly?

According to the Center for Climate and Energy Solutions, renewable energy is “the fastest-growing energy source in the United States.” Globally, renewables are expected to grow from about 26% of total electric power to 45% in just twenty years. As you can imagine, this means that the renewable energy industry is experiencing quite a boom.

Why exactly is this happening? There are many contributing factors, some environmental and some fiscal. Here are some of the main causes of rapid growth in the renewable energy industry:

Little Barrier to Entry

This is true from a couple of key standpoints. 

On the industry side, there are few barriers to entry when looking to expand. Wind and solar farms, for example, can peacefully exist on existing plots of agricultural land. There are many resources for farmers who want to incorporate this equipment on their property, and the process is non-invasive to crops, livestock, and the overall health of the land itself. The whole process tends to be beneficial to all parties involved.

From a labor standpoint, there are many jobs available in the renewable energy market and with the right skills, candidates can quickly find themselves in a very lucrative position. A move to renewables is very accessible to people who are interested and have the right skillset, such as those in the construction, finance, and engineering industries. 

Global Push to Eliminate Carbon Emissions

Nearly every nation in the world has backed the United Nations Paris Agreement, which aims to slow the rate of global warming. Virtually the entire world is working together to share strategies and even resources to reach net zero emissions by 2050.

As a result, we are seeing a large government push to move the needle on emissions. This includes substantial investment in renewables. For example, the Biden-Harris administration recently submitted the proposed 2022 budget which included a $1.9 billion investment in climate-related endeavors. About $249 million is specifically for renewable energy production.

We’re seeing local cooperation with these initiatives, as plans to shut fossil fuel sources begin to emerge. For example, the Tennessee Valley Authority aims to shut their coal mines in the next 15 years. 

Investment Backing

We’re seeing the financial world respond to these changes and initiatives, as well. For example, BlackRock has announced that not only are they working to become more sustainable with a goal to become net zero by 2030,  they’re also incorporating these goals into their active and advisory portfolios. They are including, “the effects of climate change in their economic projections and return expectations.”

We can expect this kind of support from the private sector to increase as time goes on and bolster the entire industry as a result. 

A Sense of Urgency

Because climate concerns are timely and urgent, we’re seeing renewable energy become a priority for a lot of people and businesses. As a result, the investment of time, effort, and money is increasing rapidly. We can likely expect this trend to continue, or even accelerate, through net zero goal years like 2030 and 2050 as investments in new technology and studies are increased.

From these factors and more, we can see that the renewable energy sector is experiencing accelerated growth for good reason and with no sign of slowing down anytime soon. This is why it’s the perfect time to jump on board and explore the great opportunities the industry has to offer. 

If you want to learn more about career possibilities in the renewable energy sector, please reach out to our expert team today. 

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