When the sun shines in the morning, we often feel good about the prospects for the day. When the sun shines on solar panels, electricity is generated for the grid and now many utility companies are doing net metering which means the electricity from the solar panels mean smaller bills for consumers. All this has taken time to become a normal circumstance, for 20 years ago, utilities had to set up the system and at first they were not really interested. As times change, new realities come into place.

In an article by Noah Browning of Reuters, the International Energy Agency from Paris, France says investment in clean energy will extend its lead over spending on fossil fuels in 2023. Most of the new spending for solar is coming from advanced countries led by China.

For every dollar invested in fossil fuels, about $1.7 is going into clean energy. 5 years ago, the ratio was one to one. In dollar terms, $2.8 trillion is set to be invested in energy worldwide, with $1.7 trillion to renewables meaning nuclear power, electric vehicles, efficiency improvements. The rest or $1 trillion with go to fossil fuels – oil, gas and coal.

In 2023, solar spending is about $1 billion a day or $380 billion on a yearly basis. The irony is the places in the world with the most sunlight, have the fewest dollars being spent on solar.

Linking to dividend paying stocks, as we move forward, there will be a combination of both, as the world will continue to use oil and gas, the issue is always about price and supply. The higher the price, the more innovative are the oil and gas companies; the opposite is true of solar, the lower the price of solar panels, the more adoption of the solar. As an investor, it is easier to make money in oil and gas companies or utility companies rather than solar panel companies.

There are more questions than answers, till the next time – to raising questions.