There’s never been a better time to go solar. In fact, the proposition only gets more desirable each year: higher-quality technology at lower prices, while fossil fuel prices remain volatile. Here are four reasons to consider investing in solar power this year.
Solar Panel Costs Continue to Drop
The last decade has seen the cost of solar panels decline by as much as half. Best of all, there’s little reason to suspect the trend will stop anytime soon. The Inflation Reduction Act provides a base tax credit of 30 percent for most solar installations, lowering costs for end users while also juicing demand, which could lead to even further manufacturing efficiencies. On the supply side, a recent report found that as panels have become cheaper to manufacture, they’ve seen no drop-off in efficiency or durability.
More Panels Are Being Made in America
Historically, China has dominated the solar panel market, manufacturing roughly 80 percent of the world’s supply chain. U.S. politicians have been keen to close the gap, and thanks to generous government incentives, made-in-USA solar panels are booming. The country’s largest solar panel manufacturing facility is currently under construction in Ohio—at the cost of $220 million. Overall, the U.S. is currently on pace to increase domestic solar panel production eight-fold over a four-year span, making it easier than ever for you to buy local.
Power Prices Remain High
The past few years have seen electricity prices rise, and so far, they’ve been slow to drop, even as overall inflation declines. With fossil fuels still dominating much of the electrical grid, the reality is that considerable baked-in price volatility remains, especially considering ongoing geopolitical conflicts like the war in Ukraine and disruptions to global shipping due to the Israel-Hamas war. As a fixed-price power source, solar is not only more financially stable, but also more reliable. In 2021, for instance, when the electrical grid failed in Texas during frigid temperatures, it was not solar power generation that lapsed, but traditional fossil fuels.
Macroeconomic Pressures Are Easing
For a while, there was a simple factor holding solar back: It was taking a long time to get panels made and shipped to consumers. That’s finally starting to change as supply chain constrictions ease up. Add to this the end of interest-rate hikes, and you’re starting to see an even more favorable market for solar manufacturers. Recall that the U.S. managed to boost its solar manufacturing eight-fold over the last four years—even amid such a challenging economic climate. Now that some of these pressures are easing, the future of solar is looking as bright as it has in many years.
Next Steps
Making the switch to a solar energy system can be a financially prudent, environmentally friendly decision in the long term. If going solar in 2024 is something that sounds right for you, there are many factors to consider. We can help you make sense of the entire picture.
To learn if solar is the right move for you, contact us for a free solar feasibility report.