Coronavirus – Economic Impact on Global Solar Industry

Coronavirus – Economic Impact on Global Solar Industry

The spread of Global Pandemic Covid-19 has greatly affected the energy sector throughout the world, as a result of which, automotive industries are near to getting obscure.

There’s a reduction in the world’s energy demand due to the blow on the economy because of the lockdown. However, the global market is experiencing a gradual elevation in the price and demand for solar energy.

Renewable Energy Sector:

  • The renewable energy sector has always been a hot topic. We all know its meaning, let’s dig deep today.
  • Energy harnessed from renewable sources is known as renewable energy. We know that renewable energy could prove to be a great source of energy for sufficing the global needs of energy. 
  • This is because it has a very good impact on the world’s environment. As the sources claim that this form of energy does not cause any pollution to the environment, it is being opted by almost every sector.
  • World is already making a great deal of use of renewable resources. For instance, we can consider the example sunlight. It contributes almost 22% to the world’s total electricity.
  • This is because it has a very good impact on the world’s environment. As the sources claim that this form of energy does not cause any pollution to the environment, it is being opted by almost every sector.

Energy demand in the pandemic:

  • There is a reduction in the world’s energy demand. In some countries, there is almost a 20% reduction in demand. The price of electricity and oil has also reduced.
  • These drops are the result of the reduction in the consumption of energy. The factories shut down and disruption in the construction works is the reason. There are more declines in commercial electricity demand.
  • For relief, the residential electricity demand is not reduced much. However, the expectations were of the increasing demand.
  • Moreover, some countries are also planning to lift the partial lockdown. This will give some relaxation to the industries and they can start their factories.
  • The reason why people do not prefer electricity from solar plants is its pace of production.  Solar energy plants fail in coping up with the demand. However, the impact of COVID-19 has raised expectation elevation in the prices of solar energy

Why this happen?

It is because the demand for electricity is increasing and therefore, with the increasing demand, the pressure is also increasing. The governments are making every possible move to cope up with this situation.

Economic impact on the Global Solar Industry

 The GDPs of countries have reduced and it is going down every week. The cash flow in the solar industries is also disrupted. This has impacted the solar industry too. To operate these plants workers, engineers and many other staff members are needed. These people want to be paid also, but because the whole administration is down, it is very tough for them to pay for these people. The government needs to announce packages to help the solar industries to grow. The policies and subsidies of the government need a review. It requires changes to cope with the situation.

There is an impact of COVID-19 on the solar battery industries. This ultimately is affecting the solar industries. The solar battery industries are facing the same challenges. The staff is not able to come to the factories. This is either because of the lockdown or they are in the containment areas. Solar battery industries need to work in collaboration. The raw materials are stuck either on the ports or they are not being manufactured. If the Industries work in collaboration, the issue of raw materials can be solved.

The investors need to study the trends of the demands according to the region and invest in such industries. Since there is a demand for solar energy but the industries are not able to cope with it. The investment will boost the economy of these industries.

Needs of Solar plants:

The manufacturing facilities are right now shut down. If we need to operate the solar industries, there will be a need for spare parts. Also, the scheduled maintenance of these plants will be stopped. As a result of no workers and no maintenance equipment delivery, the rising demand for solar energy creates a need to set up more plants. However, this is not possible because the shipments are made overseas. These shipments are mostly made through the waterways. The waterways are completely closed down and these shipments are stuck at the ports.

This has created an opportunity for domestic manufacturers. Some industries are waiting for some relaxation in the lockdown to start the work. But still, some of the parts are not manufactured in the countries.

These are only imported from other countries. Because of this situation, it is not possible to set up new plants right now. The workers in the IT sector are having work from home facilities. But this is not possible for solar industries. They need laborers, engineers, and other staff to be onsite. There is a need for new technologies to replace hundreds of laborers on site. Robotics and automation can solve the issue here.

Solar industries can help:

The best thing about the solar plant is that it has a big range of scales. It can be set up in a field the size of a football ground to power a factory. It can also be scaled up to a few yards to serve the least domestic purposes for few houses.

For the recovery of the economy, there will be a need for a reliable source of electricity. Solar industries are capable of doing that. Solar industries can setup independent solar plants. The maintenance cost of these plants is low. They are independent and do not require any operational costs.

Solar plants can be a blessing to the country. In addition, solar plants are more flexible and customer-oriented. The government can make policies regarding the price of solar energy. It can be made adaptable. For the people who have low income, there can be price reduction accordingly. There is a need for relaxation packages. The installation of solar plants can use laborers from the local area. This will create more job opportunities and help in the recovery of the global economy.

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