Transitioning to renewable energy sources is one way we can help mitigate the negative effects of climate change. Fossil fuels like coal, oil, and natural gas are major sources of carbon dioxide (CO₂) and other greenhouse gases. In fact, in 2021 alone, energy-related CO₂ emissions grew to 36.3 gigatonnes (Gt). This was a record high and marked a substantial increase from previous years.

Energy sources like solar power produce little to no greenhouse gas emissions and are a key component in combating climate change. Beyond the environmental benefits, Solar power can also be a source of economic growth. In this article, we’ll look at how solar power is a driver for creating a sustainable future and how Shasta Power is leading the charge in solar investments.

The Environmental Benefits of Solar Energy

Utility-scale solar power primarily uses photovoltaic (PV) solar panels to generate electricity. These panels contain material that generates eclectic voltage when exposed to light. The first solar panels produced by Bell Labs in the 1950s only had a 6% efficiency. However, recent innovations in solar technologies and PV chemistries have produced solar cells with efficiencies of up to 40%. As solar energy production becomes more efficient, its advantages over traditional fossil fuels become more apparent.

One key benefit of solar power over fossil fuels is the reduction of greenhouse gas emissions. It has been shown that replacing fossil-fuel energy generation with utility-scale solar installations can save approximately 385,000 to 436,000 pounds of CO2 per acre per year. That means a 30-acre solar farm can reduce greenhouse gas emissions by 1.2 to 1.3 million pounds per year.

While utility-scale solar farms have a minimal carbon footprint, it pales in comparison to the carbon footprint of fossil fuel power. The life cycle emission of solar power, including manufacturing, installation, and decommissioning, is approximately 95 pounds per megawatt-hour (MWh). By comparison, life cycle emissions from natural gas and coal power plants are around 1,000 pounds per MWh and 2,000 pounds per MWh, respectively. Solar panels typically offset these emissions within 2 to 3 years of operations since they generate clean power over decades. After this payback period, they continue reducing carbon emissions without adding any more greenhouse gasses to the atmosphere.

Economic and Social Advantages of Solar Investments 

The benefits of utility-scale solar farms go beyond the environment. They can also provide significant economic benefits. For instance, solar farms’ design, construction, and operation create jobs across multiple sectors, including manufacturing, engineering, construction, and maintenance. These jobs can boost local economies, especially in rural or underdeveloped areas.

Solar installations also typically involve large investments in local infrastructure. Improvements to roads, bridges, and electrical grid updates can spur additional investment in the region, further stimulating local economic development. These solar projects can also increase tax revenues for local and state governments.

Solar energy is also affordable. In fact, solar power is one of the cheapest options for new electricity generation. The U.S. The Department of Energy’s SunShot Initiative aimed to reduce the cost of solar energy to $0.06 per kilowatt-hour (kWh) by 2020. They met the target three years early, and their further goal is to reduce the cost of solar power to $0.03 per kWh. Reducing electricity costs also helps generate long-term cost savings for businesses and consumers, which can further stimulate regional economies.

The reliability of utility-scale solar farms has also been increasing over the years thanks to technological advancements, the ability to provide grid services, integration with energy storage, and supportive regulatory environments. As technology and grid integration techniques continue to improve, the reliability of utility-scale solar energy is expected to increase. Solar power will further solidify its role in a sustainable energy future.

Ohio’s utility-scale solar farms are one example of how these projects can provide economic benefit to a region. These projects are expected to create over 54,000 construction jobs and contribute $2.7 billion in Payments in Lieu of Taxes (PILOT) over 40 years. These funds go directly to local communities, helping to improve school systems, health services, and other critical infrastructure.

Indiana’s Honeysuckle Solar project is another utility-scale solar success story. The project is a $250 million investment that will contribute $30 million in revenue for local public services over its lifetime. It has also created numerous jobs, with more than 80% of the construction workforce coming from the local community. Even better, the project attracted additional regional investments, like a $3 billion EV battery plant by General Motors and Samsung which is projected to create 1,700 jobs.

Case Studies: Solar Energy’s Impact on Climate Change

Globally, there are several examples of how utility-scale solar farms can help combat climate change. For example, the Pavagada Solar Park in Karnataka, India has a capacity of 2 gigawatts (GW). This offsets nearly 578,631 tons of CO₂ emissions annually.

The Roadrunner Solar project in Upton County, Texas is another example of how investment in solar energy can help reduce carbon emissions. It is the largest solar installation in Texas and contributes significantly to the state’s renewable energy capacity. With a capacity of 497 megawatts (MW), it significantly reduces the state’s reliance on fossil fuels and offsets more than 800,000 tons of CO₂ emissions annually.

Shasta Power’s Role in Promoting Solar Energy

Shasta Power is dedicated to advancing the adoption of solar energy through the development of utility-scale solar farms. Our mission focuses on harnessing solar power to create sustainable power solutions that reduce dependence on fossil fuels and help mitigate the effects of climate change. Our strategic approach begins with identifying suitable land for solar installations by evaluating factors like solar irradiance, land topography, and proximity to existing electrical infrastructure.

Shasta Power’s projects’ environmental and economic impacts of Shasta Power’s projects are significant and far-reaching. Our installations help reduce greenhouse gas emissions and generate considerable benefits for local communities. Overall, our projects provide sustainable energy sources and support the economic development of local communities.

Why Invest in Solar Energy Now

The renewable energy market is booming, driven by technological advancements and government policies. In 2023, the global capacity for renewable energy grew by 50%, with solar power contributing to three-quarters of this growth. This surge in solar energy adoption is not just a response to environmental concerns but also the increasing economic viability and lower costs associated with solar technologies.

Impact and Environmental, Social, and Governance (ESG) investing is also becoming an important component in the investment landscape. These investments emphasize creating positive social and environmental outcomes and financial returns. Investments in utility-scale solar projects perfectly align with the ideals of impact investing, offering investors a way to help reduce carbon emissions, reduce reliance on fossil fuels, and help stimulate economic growth. They can also offer investors attractive financial returns. Our Summit Power Fund, for example, typically targets returns between 50% and 200%.

Without investment in sustainable energy sources, the effects of climate change will only worsen. It is essential that the world starts to transition away from its reliance on fossil fuels and toward energy sources like solar power. Thanks to increased research and development, solar power has become one of the most reliable and cost-effective clean energy sources available. It has the potential to significantly reduce carbon emissions and can help stimulate both local and regional economies. It’s crucial that investors start to look beyond financial returns and consider the environmental and social impacts their investments have.

At Shasta Power, we help investors make a positive environmental and social impact. Visit our investment information page to learn more about our solar projects and investment opportunities.

You can also watch our webinar, which goes over why you should invest directly in solar energy.