With 2020 well underway, the residential solar industry is still active despite the COVID-19 pandemic. Prior to the pandemic, the solar energy industry was thriving and making new. Although the industry slowed down with the emergence of COVID-19, the solar decade of 2020 is still on track to be the decade of substantial growth. It is essential to know where the residential solar industry started, where it is, and how it plans to progress over the next ten years.
A Look at Residential Solar in the 2000s
When residential solar energy first emerged as a real power contender in the early 2000s, it started on a positive note, growing annually up to 49% in states like California. As more residents took an interest in the movement to solar energy, it established an economical industry where thousands of jobs were generated.
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Solar tax credits have been offered to all U.S. residents since 2006, making the option more appealing to those who might have been on the fence about switching to solar energy. Since this introduction, solar energy has become a regulation at the state level for places like California, further enhancing its presence.
First Quarter of 2020
The residential solar industry really made strides in the first quarter of 2020. From January to March, the growth rate was the highest that solar energy has seen in the U.S. Over the last five years, the price of solar panel system installations have continued to drop, making the option more affordable and increasing older construction homes to pursue this energy source. Nearly a third of the nation’s new energy installations were solar in 2019, which prepared the industry for the new decade.
Despite the pandemic, the ratio of installed solar panel systems compared to new construction shows signs that progress is still being made. There is a smaller but positive trend happening currently in the solar industry. The positive trend over the last two years was related to the SEIA backed regulation in California that required all new construction to have solar energy. With the pandemic, however, new construction slowed drastically but there were still positive trends from established residents making the change from a traditional energy source to solar energy.
The Future of Solar Energy
With all trends continuing on a positive track, the future of solar energy is expected to double within the next five years. Instead of new solar energy being a third of the installations, it is expected to be at least half or more once the construction industry returns to pre-pandemic statistics. With more residents embracing solar energy across the nation, the demand will continue to develop. Also, non-residential markets are taking an interest in solar energy, furthering its demand and presence in residential areas.
If you are a California resident looking to make the transition to a solar panel system and would like a free quote, give our team at Solar Optimum a call today at (800) 552-9970. We are happy to provide assistance for new or previous construction homes that are looking to make the switch to solar energy today.
