Installing solar panels on your property is a terrific method to reduce your energy expenses over many years as a homeowner. Since 2010, the cost of solar power equipment has precipitously decreased by 70%, and as a result, more than 10 million houses in America are now powered by solar photovoltaic panels on homes, companies, and large-scale solar projects.
Given how much solar equipment costs have historically decreased from over $12 per watt in 2000 to an average of $3.82 per watt in 2021, it is a reasonable inquiry. Solar photovoltaic (PV) modules should become more affordable in a few short years based only on the rate of cost decreases in recent years.
Despite certain roadblocks like 2018 taxes on imported solar equipment, the pricing trend over the previous 20 years has been downward. This trend is getting slower and may vanish completely very soon. Hence, 2023 is the best time to invest your money in Solar Energy for your home and business.
These are 4 reasons to switch to solar energy by 2023 as opposed to later:
Delaying the installation of solar panels means delaying savings on your energy cost, which will keep rising over time. The cost of power has just increased for the full 2022 year. Last February’s cold weather caused natural gas prices to soar and wind energy output to decline. This resulted in rises in energy costs that reached 50% in certain places.
Although the cost of photovoltaic solar panels for homes is now inexpensive, this might alter in the future. You will have to pay more to buy solar panels, which will be a regrettable decision.
In certain U.S. areas, favorable government subsidies for solar energy are set to decline or completely disappear during the next several years. The solar energy targets are going to complete in near future. It will lead to vanishing subsidies and tax reliefs.
If you decide to sell your property, investing in solar electricity has been shown to increase its value and hasten the process. It will be an easy and fast process to sell your house at a better price.
Let’s Discuss this in Detail:
The details about the above-mentioned points are very interesting and useful for the learners.
Solar panel prices are at an all-time low:
Photovoltaic panels and modules are now more affordable than ever before as a consequence of decades of annual cost decreases brought on by government incentives and increased worldwide production.
It’s possible that this downward pricing trend for solar panels and modules won’t last permanently. The possibility of cost increases for the solar business exists. This is even another reason to go solar now rather than wait much longer, given the low rates that are presently in effect and the potential for falling or phasing out incentives.
Government incentives will be reduced as the popularity of residential solar power grows:
Many federal and state government subsidies for solar energy are expected to decrease or end completely in the upcoming years. If you wait to take action, you can wind up having to pay much more for solar panels since you won’t be eligible for these programs.
Solar Investment Tax Credit is currently at 30%:
The growth and development of the US solar sector have been significantly aided by the Solar Investment Tax Credit (ITC). Since this incentive was introduced 16 years ago, the solar sector has expanded by an incredible 10,000%.
Before 2032, the ITC, which gives a 30 percent dollar-for-dollar tax credit for both residential and commercial solar systems, was meant to taper away. Fortunately, the phase-down procedure has been postponed due to the Inflation Reduction Act’s passage in August 2022.
The ITC has helped lower solar project costs overall as well as spurring business changes and financial models that have made solar energy more widely available. Companies like SolarCity and Sunrun started offering third-party financing to clients, enabling homeowners to have solar panels placed on their roofs for $0/down, in particular, because of the ITC.
The panels do not pertain to the homeowner. He only consents to a 20-year contract to purchase solar power from the third company, which owns the panels and is in charge of maintaining them, at a reduced price from what it was before. The United States has a strong foundation for this system.
Losing out on such a significant incentive would substantially increase the overall cost of installing solar panels; for this reason, you should make your decision right away.
State-level solar incentives:
Supporting the local solar sector is the major objective of national incentives for homeowners switching to solar electricity. These initiatives start to taper out as more customers choose to make the switch to renewable energy. There are now less or soon-to-end state-level solar rebate schemes.
This tendency has been observed in recent years in leading solar markets such as California, where the wildly popular Solar Initiative Program gave $191 million in rebates, as well as in Massachusetts and New York.
If you’re thinking about obtaining solar panels for your house, you should find out what state-level programs are offered nearby because they could combine with ITC to significantly lower the cost.
The market for Solar Renewable Energy Certificates is one viable avenue for continuing to profit from solar energy generating.
SREC Incentives Earn You Money Now, But Won’t Be Around Forever:
A unit of solar renewable energy (1 MWh) produced by a house or business and sold to the neighborhood utility is known as a Solar Renewable Energy Certificate (SREC). This indicates that they are based on how well the solar system functions. State law requires the utility to supply the electrical system with a specific percentage of renewable energy, and this method of outsourcing the percentage is economical for them.
Some states, including the following ones, let homeowners sell SRECs to their utility:
- New Jersey
- District of Columbia
Nevertheless, some markets have been oversupplied for a few years. In Ohio and Pennsylvania, where the SREC price fell to approximately $4 and $46, respectively.
After state targets for renewable energy are met, all SREC programs will eventually be phased away. Some marketplaces no longer accept new applications and only purchase solar energy from clients who had contracts from prior years. By delaying the installation of photovoltaic solar panels longer, you run the risk of missing out on these programs, which may significantly reduce the cost of a project.
Changes in net metering programs might lower rewards for your solar energy:
You can lose out on net metering if you postpone installing solar panels longer. One of the strongest solar incentives offered to owners of solar systems in most jurisdictions is net metering. Even though net metering rules have been implemented in certain areas, other states allow for voluntary program participation. Similar to SRECs, net metering pays you in credits from the utility company for the solar energy you create rather than receiving cash reimbursement.
The electric meter runs backward while energy is being sent to the grid, providing you credits for any excess power your solar panels don’t utilize. The benefit you now enjoy is that a unit of solar energy produced by your system (1 kWh) is regarded as being equivalent to a unit of grid-supplied power. As a consequence, your annual electricity bill will be reduced in proportion to the number of solar power units you sent back, and consequently, the number of credits you earned annually.
Along with other incentives, the future is set to see a decline in credits awarded under net metering due to an increase in solar installations. The development of new net metering successor tariffs, which will replace the existing ones and probably not provide the present benefits, has already begun in several states and utility corporations in 2020.
Installing a solar PV system is proven to increase the value of your home:
Deciding to install a solar array on your home’s roof requires thinking about how the panels will be used for at least 20 years into the future. A common period for contract creation is 20 years. Many people interested in adopting solar may find it difficult to commit to an agreement along this time frame since they are unclear about their ability to remain in their existing residence for the duration of the agreement.
Thankfully, installing a solar power system will considerably boost the property value and speed up the sale of your home, whether you want to stay in it or sell it in the future. Also, it is getting simpler and easier to sell your solar-powered house and transfer your lease to the buyer.
We can see that the prices of solar panels have been continuously decreasing over the past few years. Though this trend is still going the speed is relatively slow. It seems to end very soon. The targets of solar panel installation set by the US government are also completing soon. The coming years will lead to an increase in the prices of solar panels because the government will stop providing tax rebates and other financial aid related to solar panels. All these reasons prove that it will be the worst decision of don’t install solar panels in 2023.