By: Malene Blaedel, Solar Optimum contributing writer
The solar industry was off to a challenging start in 2022 with supply shortages causing massive delays in the installation of residential solar panels across the country. Thankfully, the supply chain issues have since been partially resolved – and significant financial incentives for anyone interested in buying solar panels are back on the table with President Biden’s reinstatement of the Inflation Reduction Act (IRA). The IRA brings back the solar investment tax credit to 30%, making solar more affordable for the average American household.
As a result of this development, the Solar Energy Industries Association (SEIA) and Wood Mackenzie have changed their previous predictions for the solar industry and are now expecting 40% more growth by 2027 than originally forecasted. According to the two organizations, solar capacity may increase from 129 GW today to 336 GW in the next five years.
“We often have homeowners ask us “are solar panels worth it?”, and while the answer – in most cases – is almost always yes, the original plan to decrease the solar tax credit made it more difficult for some to afford solar panels for homes,” said Rainier de Ocampo, EVP of Marketing at Solar Optimum. “The new prognosis by SEIA and Wood Mackenzie proves to us that the demand for solar was always there – now it is just more attainable than before, which means we will see more homeowners turn to renewable energy. It is an extremely positive development,” said de Ocampo.
A New Era For Solar Homes
With more and more households considering buying solar panels due to factors such as financial savings, protection against blackouts, and environmental reasons, the IRA comes at a perfect time. And unlike previous tax credit extensions, which have only been up to five years, the IRA guarantees a 30% credit for the next ten years – the longest period to date.
“The IRA has played a major part in getting the solar industry back on track,” said Rainier de Ocampo. “But it hasn’t been an easy journey. Homeowners, solar panel companies, and politicians have protested the restrictions and decreased credits that have been put forth over the last couple of years – and finally, our voices have been heard. It’s the beginning of a new era for solar and battery storage, and I am very excited about what the future brings” de Ocampo concludes.
Looking to start your solar project?
There has never been a better time to go solar than right now. And the sooner you get your solar panels installed – the sooner you can start saving money on your utility bills. Don’t let NEM 3.0 prevent you from going solar. If you’re interested, grandfather yourself into NEM 2.0 before it’s too late!
Whether you are a first-time homeowner or you are just looking to make an investment that will give you great returns in the long run, solar is one of the best avenues you can take.