Will Coronavirus Impact the Demand for Solar Power?

Photo by Hurawahli Island Resort

The effects of the novel Coronavirus and the resulting lockdown have been so widespread it would seem that every day another industry is claiming difficulties and rolling out a crisis plan. What does all this disruption mean for solar power, which was by all accounts experiencing prodigious growth all through 2019? Let’s take a look at some of the ways the industry has been affected – and how it could respond to survive and thrive in an unstable marketplace. 

Quarantine – a boon for the planet, and maybe for solar power

There’s no doubt that, while the virus has been devastating for humankind, it appears to have given mother nature a break from our relentless commuting, shipping and air travel. There are satellite images attesting to the remarkable clearing away of smog, traffic and litter, and even reports of wildlife encroaching on now empty human spaces. 

Though economic uncertainty is enormous and consumer demand is low and likely to drop further, there is definitely room in the current sentiment for greener solutions, more humane work strategies and a serious focus on protecting our collapsing environment. In this sense, the recognition for the need for renewable energy is higher than ever, with solar power still positioned as a responsible, forward thinking option. 

Solar power can help offset instability

The knock-on effects of forcing millions of people indoors to quarantine worldwide is as yet unfathomable. However, homeowners and small business owners alike will undoubtedly be taking a more cautious approach in the years to come. While the installation of solar powers is a high initial cost, it pays for itself in time and is arguably very robust in the face of market volatility, lost jobs, manufacturing shortages or uncertain financing. 

According to MyPower UK, who are experts in renewable energy for properties, solar power “may give you a competitive edge over peers who are exposed to rising electricity prices - not to mention that some of our customers have won contracts based on their green credentials.” As the old institutions are severely shaken by the challenges of the pandemic, solar power offers a resilient, workable solution that has real power to work in an increasingly uncertain future. 

Rolling with the changes

Like all industries, solar power manufacture will be impacted by supply delays or disruptions to construction schedules. The Coronavirus has affected other renewable energy sectors, too. A new Wood Mackenzie insight claimed the pandemic could severely impact wind energy in China. Many UK organisations are realising that the only way forward is to be flexible. Working from home, maintaining a stronger online presence and finding creative ways to initiate and finish projects remotely is proving key to success. With consumers similarly spending more time at home for the foreseeable future (and many companies wondering about permanently adopting a work-from-home approach), online sales are likely to become more common. 

The future is unclear

At present, the effect of the virus on green tech companies has not been enormous, and is mostly confined to China, where the virus has had the earliest impact. Encouragingly, Chinese company LONGi Green Energy Technology Co. reported no significant impact on solar panel production or sales, and is still shipping on its regular schedule. 

However, the future is uncertain. Ali Izadi-Najafabadi, head of analysis for BloombergNEF in Asia, claimed “if the virus outbreak lasts beyond the first quarter and spreads to more geographies, as is currently happening in Korea and Italy, then it may very well slow down global renewable energy deployment”. While consumers may well be ready to invest in both commercial and domestic solar power installation, it may be that factories will not be at full capacity for months to come, dampening the market here in the UK. This may result in higher costs initially, which will be tempered as raw material supply chains stabilise and people head back to work. 

Light at the end of the tunnel

Though the renewable energy business is likely to take a knock due to the coronavirus, low oil and gas prices have ravaged oil companies to such an extent that solar power may yet prove to be the more affordable, more sustainable choice for consumers in future. Renewable energy sources are now picking up the slack. Despite some predictions for growth slowing in coming months, a full 21 percent of electricity in the US is now being provided renewably – more than double the 2010 figure. The good news is that there are plenty of sustainable energy options available for every price range. Better yet, there is even funding available in some cases to get you started.

Nobody can say with any certainty how the rest of 2020 will play out in the world of renewable energy and solar power, but it’s clear that the promise of truly sustainable energy is more appealing now than it ever has been.