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Well, it depends - for a current investor of any scale in the utility and fossil fuel sectors, this is a disaster. 1) Installing solar panels on millions of ac
by photochemsyn 5y ago
Well, it depends - for a current investor of any scale in the utility and fossil fuel sectors, this is a disaster.
1) Installing solar panels on millions of acres would be done most likely by utilities for grid-scale power. This means an accelerated investment in infrastructure, and that means profits don't go to dividend payments but for solar panel purchases (from an international manufacturer, as domestic US solar manufacturing is basically a joke at present).
2) Then you have the follow-on losses - investors in utilities tend to have large holdings in fossil fuels, and one hand washes the other - power plants buy fracked gas, in other words, boosting the value of the fossil fuel investments. So when you switch to solar, and write off the natural gas and coal plants, there goes the majority of the profits that investor's portfolio generates.
There's no way around it: renewable systems are far less profitable than fossil-fuel systems, because you don't get to <sell> set up a wind and sun cartel (*orbiting sunscreens maybe?). This is the source of both Wall Street and fossil fuel exporter disenchantment with renewables.
Now, if you're a farmer and can generate your own power while continuing to enjoy good crop yields, it's all winning. Although your 401K retirement fund may decrease in value. But that's OK, as your net savings are greater than that loss.
- 567745774 5y agoIt would be cool if you stated your points and evidence before authoritatively declaring your thesis correct.