The case for solar power has never been more compelling. And Americans are responding. In Q3 2020, the U.S. installed 3.8 gigawatts (GW) of solar capacity, reaching 88.9 GW of total installed capacity, enough to power 16.4 million American homes.[1]
According to the U.S. Solar Market Insight Q4 2020 report, from the Solar Energy Industries Association (SEIA) and Wood Mackenzie, solar capacity installations grew by 19 GW, a 43 percent increase between 2019 and 2020.
While the data shows growing interest and adoption of solar, here’s why you should consider going solar. Read below for points to consider.
Lowering Energy Costs For Less
A move to solar in 2021 can provide several important economic and financial benefits:
- In 2020, Congress extended the solar investment tax credit (ITC), which was scheduled to drop to 22 percent in 2021. The ITC will remain at 26 percent through 2022. The value of this tax credit can amount to thousands of dollars in savings.
- In addition to the savings firms can realize through the ITC, it’s never been cheaper to purchase solar panels. Since 2016, the price of solar modules has fallen 66 percent, from 63 cents per watt in 2016 to 21 cents per watt in 2020.[2]
- With current ultra-low interest rates, many companies may find that financing a solar installation is an affordable option.
Offsetting Rising Fossil Fuel Costs
There are a few factors that point to increased oil prices,[3] including:
- Pent-up demand due to the pandemic may lead to increased manufacturing and travel among other economic activities.
- With control of the White House and Congress, the Democrat party will likely limit domestic fossil fuel production and transmission while encouraging renewables like solar.
- A resulting decline in U.S. supplies might return pricing power to OPEC+, which has resolved to reduce production in order to increase prices.
By investing in a solar installation, companies can shield themselves from a spike in oil prices that would increase the cost of electricity supplied by a utility company.
Reducing Reliance on Fossil Fuels
Concerns about the environment have led many companies and consumers to adopt solar. The data show that renewable energy sources are growing faster than ones for conventional power. According to Bloomberg New Energy Finance (BNEF), solar and wind reached 67 percent of new power capacity added in 2019, while fossil fuels trailed at 25 percent.[4]
Attracting Younger Consumers with Authenticity
The power of purpose is increasingly important for millennials and Gen Z consumers. Seventy-six percent report that they would pay more for a sustainable product. Eighty-five percent say that sustainability influences their decision to purchase, even if it isn’t their primary motivator.[5]
Both of these groups state that they consider how products are made and sourced, with 75 percent of total respondents favoring brands that offset their environmental impact.
By investing in renewables like solar, companies can demonstrate their commitment to the environment and attract younger consumers.
Next Steps
There are many things to consider when thinking about solar power installations. We can help you make sense of the entire picture.
To learn if solar is the right move for your business, contact us for a free solar feasibility report.
[1] “U.S. Solar Market Insight,” Solar Energy Industries Association, Last accessed 2/9/21, https://www.seia.org/us-solar-market-insight.
[2] “Solar Power Prices Sink In The Age Of COVID,” Forbes, Last accessed 2/9/21, https://www.forbes.com/sites/arielcohen/2020/09/08/solar-power-prices-sink-in-the-age-of-covid
[3] “Why Oil Will Keep Rising In 2021,” OilPrice.com, Last accessed 2/9/21, https://oilprice.com/Energy/Oil-Prices/Why-Oil-Will-Keep-Rising-In-2021.html
[4] “Solar and Wind Reach 67% of New Power Capacity,” BloombergNEF, Last accessed 2/9/21, https://about.bnef.com/blog/solar-and-wind-reach-67-of-new-power-capacity-added-globally-in-2019-while-fossil-fuels-slide-to-25/
[5] “How Brands Can Build Loyalty in the Era of the Millennial and Gen Z,” TotalRetail, Last accessed 2/9/21, https://www.mytotalretail.com/article/how-brands-can-build-loyalty-in-the-era-of-the-millennial-and-gen-z/