Solar energy is ready to power socio-economic transformation

Green energy has become a key force in transforming not only our energy landscape, but also the very structure of our society and economy.

Countries that have made renewable energy solutions a cornerstone of their energy policies have long enjoyed cleaner air, a smaller carbon footprint and greater energy security.

Today’s socio-economic challenges demand even more from us – an urgent transition from fossil fuels to sustainable energy sources

According to the International Renewable Energy Agency (IRENA), renewable energy could power 90 percent of the world by 2050, underlining the compelling economic case for investing in green energy. This should motivate every policymaker and business leader to prioritize renewable energy projects now more than ever.

One of the most accessible and transformative sources of green energy available today is solar energy. Global solar power capacity has grown rapidly from about 40 gigawatts in 2010 to more than 710 gigawatts in 2020.

This remarkable growth underscores the growing feasibility and affordability of solar technology. For countries seeking to achieve significant socio-economic growth, investing in solar energy offers numerous benefits: job creation, reduced energy costs, improved public health, and increased energy security.

The ambitious goal of connecting as many homes and businesses as possible to off-grid solar systems provides a clear path to sustainable development. In many developing countries, including Kenya, lack of access to reliable electricity is a major obstacle to economic and social progress.

According to the International Energy Agency (IEA), the number of people worldwide without access to electricity increased for the first time in decades in 2022, by about 6 million to about 760 million, with a significant proportion of them living in sub-Saharan Africa.

Off-grid solar solutions provide a real and immediate answer to this problem, offering decentralised, scalable and cost-effective energy access that can boost local economic activity and improve quality of life.

From an economic perspective, renewable energy projects can play a key role in reducing energy costs and protecting economies from the wild price swings that characterise fossil fuels.

The cost of photovoltaic (PV) panels has fallen by almost 90 percent over the past decade, significantly lowering the levelized cost of electricity (LCOE) from solar power. This trend is expected to continue, making solar power one of the most cost-effective energy solutions.

But the vision for solar goes beyond just providing affordable energy. It’s also about building resilience to climate change.

The increasingly frequent and severe phenomena related to climate change, such as droughts, floods and heatwaves, have highlighted the urgent need for resilient energy systems.

Solar energy is inherently resilient to such disruptions, providing a stable and reliable source of energy even in the face of natural disasters. As climate impacts intensify, integrating solar into our energy mix will become essential to maintaining economic stability and protecting vulnerable populations.

Harnessing the full potential of green energy requires more than just technological innovation; it requires solid financial commitment and strategic partnerships. Financial institutions play a key role in facilitating the transition to renewable energy.

Our partnership with SBM Bank Kenya on the grid-independent solar power project is an example of the collaboration needed to promote sustainable energy solutions.

Through targeted financing, banks and other financiers can support the development of renewable energy projects, from large-scale solar farms to community microgrids, ensuring that green energy reaches all corners of society.

The case for financing is strengthened by evidence of tangible returns on renewable energy investments. Global renewable energy investments rose to $282.2 billion in 2019, according to BloombergNEF, indicating strong market confidence in the sector.

Diversifying our energy portfolio through solar energy can stimulate economic growth by creating new jobs in manufacturing, installation and maintenance sectors.

Another essential aspect of the green energy transition is political support from governments. Regulatory frameworks that encourage the adoption of renewable energy sources, such as tax breaks, subsidies and feed-in tariffs, have proven effective in accelerating the deployment of green technologies.

Governments must also focus on creating an environment conducive to private sector investment in renewable energy projects.

In addition to national policies, international cooperation is essential. Initiatives such as the Paris Agreement underscore the global commitment to reducing greenhouse gas emissions. Countries must work together to share technological advances, knowledge and financial resources to achieve common climate goals.

Dalmus Mbai is the CEO and Founder of Safer Power Limited