Energy production in the 21^st century has seen a period of rapid energy sector transformation. From the waning of coal as the number one source of energy to the growth of renewable energy sources such as solar an wind power, it is evident that the sources we draw energy from to keep our worlds electrical needs met are changing in most interesting fashions. The advent of solar and wind energy particularly are interesting in that they provide a potential substitute to the conventional, more environmentally hazardous energy sources we have relied on for decades such as coal and oil. This technology, driven by investment from the private and public sector and loved by environmental movements across the globe is slowly taking up more and more of the production for the world’s energy needs, phasing out the old competitors. That being said, one argument persists in the world, primarily made by those who are not supportive of the solar industry: The costs of production are too high to warrant significant investment and construction.

This is rather intriguing, and in my opinion incorrect. To quote Bloomberg Media, “The reason solar-power generation will increasingly dominate: It’s a technology, not a fuel. As such, efficiency increases and prices fall as time goes on.” This statement is based on relatively sound logic backed by real world examples that transcend the energy industry. Technology time and time again has proven to be cheaper and more efficient after years of development. The argument against investing in renewable energies ignores observable trends in the market and the technological advances that are taking place year after year. Statistics aside, it simply makes no sense to suggest that due to the temporary costs, we should not invest in the technology in hopes of making it cheaper.

A great example of why we should invest in the new technology comes from the development of computers, as we observe the cost of computers and the efficiency of computers over time. At the start of their development, computer costs were too expensive to really even warrant consumer usage, but to level the playing field it is best to look at the side-by-side comparison of the IBM Personal Computer vs. the Lenovo Think Centre Edge 91z, a comparison made possible by pcmag.com in their 2011 article “PC: Then and Now”. There are a few specific factors worth noting. First, the cost: The Model 5150 IBM Personal Computer, when you adjust the prices using 2011 inflation rates of currency (not even the 2017 rates, which would only widen the gap) costs $7,631.90. With technological innovations and the advent of more efficient, cost effective means of production, the Lenovo Computer was $1,368.00, which provides a very significant difference in price. The processing power, speed, and overall quality of the computer also increased. This is not a computer specific phenomenon. Technology as a whole only becomes cheaper and more efficient as time passes and developments are made.

The common mistake made by those opposed to renewable energy sources such as solar and wind is that they equivocate technology to fuel. The efficiency of coal, for example, as a fuel does not see significant increases over time even as its usage increases. Power plants can become more efficient with new technology, but fuel as a source is subject to physical limitations. Solar cells, and the batteries used to store the energy they collect, are not in themselves fuels, but rather technology, like that of the plants that utilize coal.

As time goes by, the efficiency of solar energy in particular has increased, while costs have significantly decreased. This decrease can be easily seen in the prices per watt, which is the amount of money spent on producing one watt of energy from any given source. From 1977 to 2017, the price per watt decreased drastically, from $79 per watt to today’s cost of around $1.20 per watt. This is due to increased investment and development in the sector. There is a reason that investment in the renewable energy sector vs. the fossil fuel industries are literally at a 2:1 ratio, with a large amount of money coming from none other but fossil fuel companies. From 2016-2017, the acquisition of solar companies and companies producing batteries for storage has become a common investment strategy for multibillion dollar oil companies such as Exxon, Total, Enbridge, and Total SA, who are, according to a report by Bloomberg media, departing from ethanol and other biofuels in favor of renewables.

Storage capacity for batteries to hold excess energy for the periods of time solar and wind aren’t collecting energy is also increasing at rapid rates as technology increases. New battery types and concepts that are in development are increasing the amount of energy that can be held. As these factors come together, the cost overall of solar energy is driving even further down. What is even better is that the cost per watt it projected to continue decreasing into the future, as multiple estimates see prices falling to as low as $0.75 per watt by 2021.

The lowering prices actually are going to in the near future place solar on a level playing field with the coal sector. Given prices per watt, as well as other externalities of both, solar is becoming a more economically viable source of energy. Projections actually show the costs dropping below coal in some European nations and Brazil by the 2020’s, which proves to show investment in the industry is more than worth the money. Even nations like Saudi Arabia and Mexico, nations stereotypically known for oil production, are planning auctions for contracts relating to solar farms. Solar energy is also slowly becoming more prevalent in U.S. markets.

In a somewhat interesting turn of events, coal itself is losing market share not only to solar and wind but also other non-renewable sources such as natural gas. In 2016, natural gas overtook coal as the top means of energy production due to it being greener and cheaper. Natural gas prices being less expensive is leading to many factories that once relied on coal to switch to natural gas; so much so in fact that many analysts have suggested the idea that reducing regulation on coal producers wouldn’t even be enough to save the industry as a whole. The coal industry is simply a dying one at this point, and the lack of investment and technological innovation as well as the plethora of negative externalities associated with it’s usage (which are often solved with the usage of taxpayer dollars) simply are making it too cost prohibitive. There is a reason that the top two largest U.S. coal producers (Peabody Coal and Arch Coal, who have a 19% and 13.6% market share respectively) both filed for Chapter 11 bankruptcy reorganization due to their inability to pay off debts they held. Their business model is based on the idea of an even expanding market, and as the market shrinks, coal giants are dying. And it isn’t just them; Patriot Coal, Alpha Coal, Walter Energy, and James River Coal all also filed for bankruptcy in 2016, a trend that will likely continue into 2017.

Even the auto industry is changing, as the consumer tastes for more efficient hybrid cars has driven the industry to move away from the traditional gas guzzling models they have relied upon for years. Hybrid cars are seeing a significant increase in market share partially due to their smaller environmental impacts but also because, like the solar panels themselves, the prices of hybrids is dropping as time goes by and technology improves. As the price of the hybrid cars decrease, it is actually becoming more economically feasible for consumers to purchase them, and purchasing them they certainly are. In fact, the market shares for electrified vehicles alone are expected to have 7% of the global market by 2020, up drastically from merely a decade ago, and the growth is expected to be relatively constant. Increased government regulation on the auto industry is also making cars more efficient overall.

In fact, in some ways, solar energy is already a better decision for business owners across the nation and the energy market overall. Information provided by smallbusiness.com shows there are literal benefits for a company switching to solar. Amongst the reasons cited are reduced operating costs, return on investment (both immediately through government incentives and long term through energy savings), maintenance free and reliable systems (most come with a 25 year warranty), and positive public relations due to attaining a green label that may prompt consumers to do more business with the firm. These reasons in particular prove to show legitimate benefits from switching over to solar energy. The solar panels, once installed, reduce or eliminate electrical builds, effectively making your business a semi autonomous grid. This way of getting around electric companies (who generally charge high prices for their goods as they are natural monopolies in their respective markets with zero competition) has actually prompted lobbying efforts by the electric companies to start charging solar users fees so they can retain profits. The introduction of competition, and the fact it is free market competition, is healthy for the markets and people who choose solar.

As time goes by and if current trends continue, there will come a time where renewable energy sources become the predominant source of energy, most likely followed closely by natural gas as new reserves are discovered and prices drop lower. Coal, it seems, is a source of energy largely on it’s way out, doomed to be replaced by more efficient, environmentally friendly, and eventually cheaper alternatives. To suggest that technology today is not worth investing in purely because of current costs negates the trend that has been seen for years: as investment increases and time goes by, solar and wind energy are becoming more efficient, less expensive, and more economically viable in most countries. Truly, the time is now to innovate and invest, rather than ignore renewable energy sources. To do so does nothing but ignore the global trends, and create a missed opportunity in being a part of significant technological innovation in the 21st century. Renewable energy is on the rise and the trend does not seem to be anywhere near ending. This is a wave of technological innovation and energy sector transformation that one would be wise to ride, not shrug off as illogical and impossible.