The Growth of US Renewables are Outpacing Fossil Fuels

Renewable energy is growing faster than fossil fuels in the US. In 2014 new capacity from renewables has grown faster than coal, oil and even gas. Renewable energy generating capacity has increased 72 times faster than coal and 163 times faster than oil. According to the Sustainable Energy in America Factbook, between 2008 and 2015 wind and solar energy capacity in the US has tripled. Renewable energy now contributes just under 17 percent of total installed capacity in the US. That is more than oil and nuclear combined.

Renewable's Predictable Pricing Trumps Volatile Oil

Renewable energy offers the kind of pricing predictability that is in everyone’s interest. While the price of oil has fluctuated, generally increasing over time, the price of renewable energy has shown fairly steady and consistent declines.

A new report released by the International Renewable Energy Agency (IRENA) indicates the costs of renewables will fall by almost 40 percent in the next two years, and solar energy should reach grid parity in 80 percent of its market by 2017.

Solar is Destined to Defeat Fossil Fuels

While many are preoccupied with declining oil prices, solar power continues its steady trajectory towards grid parity. The long-term cost of utility-scale has fallen 20 percent in the past year and 78 percent in the last five years. While it was hard for solar to compete with subsidized natural gas the outlook for solar is very bright.

Unlike fossil fuels which are a commodity that cannot improve, solar is a technology that keeps on getting more efficient. Solar keeps getting cheaper while the price of extracting fossil fuels continues to increase.

Renewables will Save us from the Scourge of Fossil Fuels

We need clean sources of energy to replace fossil fuels if we are to avert civilization changing climate change. Renewables are a present day reality capable of meeting both our energy needs and the need to reduce our carbon emissions. We are already moving away from fossil fuels, away from an emissions laden commodity towards a world changing technology.

The transition away from fossil fuels is clearly evident in places which derive a considerable portion of the energy needs from renewables (eg Germany, Denmark and Scotland). However, the growth of renewables is also evident in the US. In 2012, most new electricity-generating capacity brought online was from renewables. In January, March and November 2013, all new US electrical generating capacity was provided by renewables. And as of November, 2014 renewables had provided 47.43 percent of new capacity in the US.

Energy Economics: Cheap Oil Will Not Stop Renewables

There is a powerful economic argument that can be made to suggest that renewable energy will not be sidelined by oil's price declines. While it is true that renewable energy stock has decreased in value due to falling oil prices, this is a temporary phenomenon.

The cost of oil is roughly half of what it was seven months ago and according to traditional market principles this will mean a surge in oil demand and a decline in demand for the more expensive alternatives. However, when we metaphorically drill down a bit further we realize that electricity accounts for much of the increased energy demand. Although electricity demand is increasing along with the cost this will not increase the demand for oil. Even at less than $50 per barrel oil is still too expensive to be the primary source of electricity generation. This is why electricity is primarily generated by natural gas, hydro, and nuclear power.