June 10, 2023

Solar Solutions: Current Trends in Solar Energy (2021 Version)

The U.S. Energy Information Administration predicts that electricity consumption will bounce back by almost 2% over 2020.

One other prediction is that companies and governments are rolling back carbon emissions, which means a reliance on solar, wind, and other renewable energy sources.

The solar industry is sure to be impacted the most because it affects both residential and commercial sectors. Read on to learn the current trends in solar energy.

1. Government Optimism

You normally don’t associate optimism with talk about government, but there is a reason to be smiling for those interested in solar energy.

A big part of the Democratic Party’s platform is to tackle climate change. With Democrats leading the House, Executive Branch, and Senate, the solar industry is should be delighted.

The incoming administration can do away with the tariffs imposed on solar cells from China. That will give manufacturers room to breathe and be profitable once again.

You can also see changes to regulatory reforms and EPA regulations in the first year of the administration.

2. Solar Tax Credits

Solar tax credits came about in 2005, to encourage homeowners to adopt solar energy standards. In 2015, Congress started a phase-out of these tax credits, expiring at the end of 2021.

Congress just passed an extension, where residential and commercial installations can get a 26% tax credit in 2021 and 2022. The tax credit drops to 22% in 2023.

Homeowners can take full advantage of these tax credits and provide a boost to the solar industry.

3. The Impact of California’s Mandate

As of 2020, any new home built in California has to have solar panels installed. This does add to the price of a home, but there is a benefit. Economists predict that the average mortgage will be $40 more a month, but utility savings are $80 a month.

Other states like Arizona may follow California’s lead. If they do, it’s a great thing for the solar industry.

4. Homeowners Get Educated

Solar panels aren’t adopted at high rates because people don’t understand them. They think that they’re expensive, and not worth it to save a few bucks on the electric bill each month.

Solar installers have to be educators on top of installers. They need to change public perception and show that solar panels are worth it.

They can talk about federal and state tax credits and the many other benefits of solar. Take a look at this page to see a good example of educating customers: blueravensolar.com/colorado/.

The Current Trends in Solar Energy Show Growth

Now that you know the current trends in solar energy, it’s easy to be optimistic about the future of solar. With a friendly administration, tax credits, and state laws and regulations, the future is bright.

If you’re a homeowner interested in solar panels, you can see a return on the costs much faster with tax credits.

Visit the Home Guide to discover more great home improvement tips.