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.