At $40 per barrel, South Africa's GDP could lift by as much as 1.1% according to the Oxford Economics Group.
So why have Solar stocks fallen in line with plummeting oil prices?
Solar energy investors and consumers contemplating investing in Solar Geysers and PV Solar Panel electricity generation should not be confused by the application of the two different energy sources and the customers each one serves.
Oil dominates in transportation, but doesn't in the production of electricity where Solar Power is proving to be the best, cheapest, sustainable and renewable energy source of the future.
Less than 5 percent of the world's electricity is generated by oil; most of it derives from fossil fuels such as coal and natural gas, nuclear and, increasingly, solar power.
In reality the lower oil price may be the very signal that fossil fuels such as oil are on the way out.
The lower oil price is an indication of competition between producing countries to keep market share for national resources that are growing more expensive to produce and reflect declining reserves in marginal producers.
Public electricity production utilities and large corporations are the main customers of solar power with a growing residential consumer market.
Investments in Solar energy tend to be for the long term, at least 20 years and are unaffected by oil price fluctuations.
Solar stock prices may be falling because analysts see lower fuel prices as a disincentive for consumers to replace costly oil and gas based water heating technology in Europe and the USA where winters are harsh.
In South Africa however, rising public utility price escalations from Eskom are inevitable and make the case for Solar energy - Solar Geysers and Solar PV Panels a complete no brainer.
So no, cheap oil will not reduce the need for solar power, and South African consumers should take the opportunity that lower fuel costs will bring to convert to alternative energy sources.
Contact Condor Solar Energy Solutions to get a free quote.
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