COSTS
Cost of renewable energy sources is a major and significant obstacle to its adoption. Though the cost of necessary equipment and parts is decreasing, the costs associated with building and installing facilities like solar or wind farms is very high. In 2017, the average installation cost for a solar system ranged from around $2,000 per kilowatt for large-scale installations to almost $3,700 for small-scale, residential systems. By comparison, a new gas-fired plant might cost around $1,000 per kW.
TRANSMISSION
Over the course of the 20th century, power transmission infrastructure was built with large fossil fuel plants and nuclear plants in mind. This raises issues for renewable energy sources not located near existing infrastructure. In fact, some areas with little or no infrastructure, such as off-shore wind farms, are some of the best hopes for sources of renewable energy.
BARRIERS TO ENTRY
With non-renewable energy being well-established, the utilities behind these legacy systems hold immense market power, and this presents a powerful barrier for renewable energy. Solar, wind, and other renewable sources of energy need economic resources, established infrastructure, technical expertise and policy.
POLITICS
In most countries, the legacy power industry is backed by subsidies, tax breaks, incentives and regulatory loopholes. Whilst these advantages have probably elevated production, they have also diverted resources that may have helped the expansion of renewable energy. More to the point, the fossil fuel industry has actively lobbied against the greater adoption of renewable energy and undermined climate change science, a strong driver for the adoption of clean energy.
OVERSUPPLY
In recent years, governments and private companies around the globe have ramped up the production of solar panels. However, even with a growing industry, the large uptick in panel production has created an oversupply situation. Since the supply is currently so much higher than demand, companies are scaling back their long-term investments and even going out of business. Investors have lost millions as a result.
