Solar Energy Can Cut Fuel Imports, Trade Deficit – Analyst

By: Solomon Nartey Tetteh

Economic Analyst Emmanuel Boateng has urged Ghana to look beyond the high upfront cost of solar energy installations and focus on the long-term economic and trade benefits of transitioning to renewable energy.

Speaking on Business Breakfast on Zed 101.9FM, Mr. Boateng acknowledged that the cost of installing solar panels and related infrastructure remains a major concern for households, businesses and policymakers, however, he stressed that decisions around renewable energy must be guided by thorough cost-benefit analysis rather than initial expenses alone.

“I appreciate the fact that the cost of installation is very high when it comes to solar panels and related systems. The initial cost is high, but we need to look at the cost-benefit analysis,” he said.

According to him, Ghana stands to gain significantly from adopting solar energy, particularly in reducing pressure on the country’s national trade and import bill.

“What benefits would we get from going solar? We need to look at the pressure on our national trade,” Mr. Boateng noted.

He stated that increased reliance on renewable energy could lower dependence on imported fuels and improve the trade balance.

He further highlighted that Ghana should take advantage of its natural endowments, pointing out that some countries with far less solar potential have made greater progress in renewable energy adoption.

“There are countries in this world that do not have the potential that we do when it comes to solar. Perhaps that is what we are missing,” he said.

Mr Boateng stressed that a strategic shift towards solar energy could offer long-term economic advantages, including energy security, reduced foreign exchange pressure and sustainable growth.

The analyst  described the conversation around renewable energy as critical, noting that the direction Ghana chooses now will have lasting implications for the economy and energy sector.