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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017

Solar Energy Farm SWOT Analysis

 

Strengths

 

The demand for alternative energy, especially electricity produced by solar means, has exploded within the United States and internationally. As people are much more aware of the impacts of climate change, the demand among consumers is to switch to alternative energy produced power. This trend will remain in effect until the entire energy grid produces its power from non-polluting means. Beyond this, one of the primary strengths of operating a solar energy farm is that they are able to produce income passively. Additionally, once established, the barriers to entry for starting a new solar energy farm are extremely high. Although these businesses can be developed with a moderately low capital costs, a fully functional solar energy farm can still cost in excess of $1,000,000. However, the costs of photovoltaic cells has dropped substantially. This will improve the returns on investments for operators of these businesses. Alternative and solar energy are one of the fastest growing industries within the United States.

 

Weaknesses


Given that the industry is going through an explosive growth spurt, there is some uncertainty as it relates to the development of these businesses. The prices of electricity are constantly fluctuating. There are also political considerations that may be detrimental towards the development of new solar energy farms throughout the United States. As such, this is one of the primary weaknesses faced by theses businesses.

 

Opportunities

 

For most energy companies that operate solar farms, the way that they expand is through the acquisition of additional photovoltaic cells for their facilities. Some operators acquire solar energy farms that are already in operation. This is one of the fastest ways to expand the operations of these types of businesses. It should be noted that there are also many tax credit programs available that allow companies that operate solar energy farms to boost their profitability. Tax benefits for alternative energy producers are expected to last for another 10 years.

 

Threats

 

As discussed above, the primary issue faced by these businesses is a volatile energy market coupled with significant political uncertainty. What is not uncertain is that there is a tremendous amount of demand for cleanly produced energy. Many major governments are aggressively seeking to develop these structures in order to bring their electrical grids into the new century. As such, the threats facing a solar energy farm are moderate.


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