In times of turmoil and uncertainty, everything can feel as if it’s going either too fast or too slow. We appear to be going through one of those hectic times, with the world rushing toward a carbon-free energy revolution while simultaneously struggling to deliver the equipment needed to make the revolution work.
Solar Costs is Rising and What it Means for the Homeowner
Snarled supply chains are threatening to jack up the cost of residential solar power at a moment when the worldwide push for green energy has never been fiercer—and when the practical benefits of renewable, dependable power have never been clearer.
Technological innovation and scaled-up production steadily pushed down prices for photovoltaic cells (the main component of solar panels) over the past decade to unprecedented lows, but events are conspiring to push back. Supply-chain slowdowns have driven significant and sustained increases in prices for PV equipment for the first time since Wood Mackenzie started crunching the data in 2014, the energy analyst said earlier this year in a report published in conjunction with the Solar Energy Industries Association. Data from the second quarter of 2021 show a spike in year-over-year equipment costs for all system types (including residential), and the researchers foresee consequences for customers early next year if transport snarls aren’t straightened out soon. As it is, these slowdowns are already driving up costs for raw materials used in panel manufacturing, such as mono-polysilicon and silver, and increased costs for panels are expected to follow.
And that’s not the only raincloud on the horizon. After rising at a steadily increasing rate, home energy prices are set to keep climbing through the rest of the year and throughout 2022 at about a 3.4-percent annual rate, according to a recent projection by the U.S. Energy Information Administration Financing costs, which track mortgage rates, are expected to rise from their current rate of 1.99 percent APR beginning sometime next year.
Here’s the good news: it’s not too late to take full advantage of the still historically low cost of equipment and financing and secure a great deal on your own personal power plant. Depending on how soon your system is installed, you could even secure your 26 percent federal tax credit in time to use it early next year.
A solar system offers even more financial benefits to your household. As a long-term money-saving asset, a PV array is likely to increase the value of your home, according to the U.S. Department of Energy. Our projections show that the average solar customer can expect to save an estimated $50,000 to $100,000 over a 25-year period. Our customer testimonials show that Sunsolar Solutions is focused on maximizing savings by harnessing the greatest amount of solar energy possible (and, along with it, the greatest tax savings possible).
Another major advantage to going solar before the end of the year is that the system will have time to generate the credits needed to knock down next summer’s electricity costs. In the winter and spring months, solar systems in the Valley create a big surplus of power, which is turned into cash credits on the homeowner’s utility account. Those credits are used in the summer months to offset hot-weather usage. If you choose to start your project soon, the system will be installed in time to produce those essential credits.
Even in an era of economic volatility, time can be on your side—that is, if you’re willing to act and leave unnecessary risks behind. Sunsolar Solutions is ready to provide the tools you need to take your energy future into your hands. Contact Sunsolar Solutions today at 602-773-6675 to have a design prepared for your home free of charge.