Production Cost of Solar Energy - Assignment Example

The proposed company will aim to fill the gap that exists in the demand and supply of electrical energy. Moreover, since there is a rapid shift of technology from petroleum-based transport to electricity-based transport; the production of electrical forms of energy is likely to fill the gap that will originate due to the increasing demands in the future. Our company, therefore, aims to target this area by producing electrical power that will also fulfill the demands of future consumers.

Economic forces
The production cost of solar energy is minimal once our project is operational. Our company will aim to benefit from the shortfall that exists in the area by producing clean electrical energy through the use of solar power. The rising prices of electricity are an additional benefit in terms of earnings for the company that is likely to make the project a huge success in a very short period of time. Reduced cost of production of electricity will also provide us a competitive advantage over the traditional producers of power, thereby making it possible to offer electricity at lowered prices than the current market rates.

Social forces
Society is well aware of the fact that solar energy is the safest form of energy since there is almost no pollution associated with the use of this form of energy. Due to this reason, a high degree of acceptability is likely to result from our proposed project. This will reduce our cost for promotional activities (e.g. advertising) that are otherwise required to grab the attention of users. Elevated acceptance of our project will definitely provide us an edge over our traditional competitors which we will use to establish our customer base.

Technological advances

The previously used solar panels for energy production were efficient in the range of less than 25%. However, with the passage of time, technology has advanced and now it has become possible to attain an efficiency of close to 50%. Our plan is to use the latest technology for our project which will increase productivity and will continue to serve the purpose for an extended period of time. Moreover, extra production means the ability to expand our market further. Keeping in view the fact that solar energy is green (clean), there is general consensus that the promotion of projects that harness solar energy should be highly favored in terms of regulation. This is in line with the national aim of producing energy that is renewable and produces no waste that is toxic in nature.  Read More