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Price increase expected for solar panels — but not for the reason you might think

The cost of solar panels has steadily decreased over the years but now some analysts are predicting an increase for the first time in nearly two decades — but not for the reasons you might think.

A sudden rush to buy solar panels has created a rare seller’s market for panel manufacturers as U.S. solar developers are stockpiling resources for future projects to lock in the 30% solar Investment Tax Credit (ITC) that starts phasing out next year.  

Among those hoarding inventory to claim the full subsidy are big hitters in the utility world, such as Duke Energy, 8minute Solar Energy, and Shell-backed Silicon Ranch. The demand has caused module prices to spike more than 10% from earlier in the year, according to a U.S. Solar Market Insight Report from Wood Mackenzie and SEIA. 

Consumers who purchase residential solar before the end of 2019 will also be eligible for the full tax credit, however, unlike firms that only need to spend 5% of a project’s capital cost by the end of 2019 to lock in the subsidy, residential projects have to begin solar installation before the year ends.

Current subsidies for residential solar will decrease to 26 percent in 2020, then to 22 percent in 2021, and finally, drop to 10 percent in 2022. 

DIY home solar companies that sell directly to homeowners such as Go Green Solar are one of the few available resources for those not wishing to pay a premium for panels that have been marked up amid the blitz to beat the expiring ITC. 

The U.S. solar industry has urged lawmakers to extend the solar tax credit, which has helped solar deployment grow by 10,000 percent since it was introduced by a Republican-controlled Congress in the 2005 Energy Policy Act. Last week Solar Energy Industries Association (SEIA) sent Congress a letter signed by nearly 1,000 U.S. solar companies to extend the credit, however, the recent spike in solar panel purchasing suggests the outlook for the credit’s extension is not favorable.

Luckily for homeowners, direct to consumer home solar companies such as Go Green Solar can help people lock in their 30 percent ITC before it expires while giving them some of the lowest rates for panels on the market.  Check out their website to get a free estimate on how much you will save making the switch or call (866) 798-4435.

Author: Harold Tan

I believe clean, renewable energy is key to the evolution of society as a whole. Solar powers our planet, why not harness it to power humanity? Let's power our homes, our work, and our vehicles with solar energy. It begins with raising awareness and encouraging those around us to go green.

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1 Comment

  1. The statement “the recent spike in solar panel purchasing suggests the outlook for the credit’s extension is not favorable” is pure speculation by the writer, not based in truth. The writer has a vested interest in “GoGreenSolar” and is biased towards encouraging people to buy now, rather than risk the unknowns tomorrow. This may be a good idea for people. I am not against the idea. However, we have NO IDEA what will happen regarding extending the solar tax credit. He is correct about when current law is set to expire. If big oil/carbon continues to hold the GOP Senate and Presidency, then my bet is they will allow the credits to expire because they directly hurt GOP money interests, the big polluters. If Democrats take the White House and the Senate, the chances are they will be extended. I would not bet on either, but those are likely scenarios. Current elected Republicans are pro-pollution and current elected Democrat are pro-clean energy / solar. We *should* be eliminating tax breaks for polluting energy production / use to decrease their use and use that revenue for clean energy research, development, and implementation.

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