What to Know about Solar Panels in 2022
Over the last ten years, the importance of and reliance on renewable energy sources has steadily increased around the world. And as residential solar panels become more affordable, more and more homeowners are investing in solar panels to power their homes, save money and protect the environment.
As we enter 2022 and as the popularity of solar energy continues to surge across the U.S., so too does the amount of questions homeowners have about investing in solar panels.
To help you make a more informed decision, we’ll explain 5 important facts you need to know about solar panels in 2022.
Want a free, no-obligation estimate of what it would cost to install solar panels on your home? At Photon Brothers, we’re happy to help. Just contact us and we’ll analyze your energy use and your home’s architecture to provide an honest and accurate price estimate for a solar panel system installation.
Fact #1: Solar is now the cheapest form of energy in history
According to the International Energy Agency (IEA), solar energy is now the “cheapest electricity in history”. This fact was announced in the IEA’s 2020 World Energy Outlook, a report that is published every year and helps set public policy around the world.
This announcement is big because until now, coal has always been the cheapest form of electricity. But as of 2021-2022, it appears we’ve reached a tipping point where it’s cheaper to invest in solar power generation vs coal power.
This means that homeowners will see even more savings in electricity bills when that electricity comes from solar vs coming from coal or natural gas plants. In fact, over the past ten years, the price of solar electricity has dropped 89%, from $359 to $40 per megawatt-hour.
The steady drop in price for solar electricity is one of many reasons why homeowners are continuing to invest in and install residential solar systems. This steady demand for solar is, in turn, bolstering the solar industry, which leads us to our next fact…
Fact #2: The 2022 solar industry is stronger than ever
While the long-lasting impacts of the coronavirus pandemic will cause turbulence for many industries beyond 2020 and 2022, solar is not one of them. In fact, in 2020, the U.S. solar industry experienced a 43% growth in 2020 alone.
Plus, it’s estimated that between 2021 and 2025, there will be 42% more solar power installed in the U.S. than was installed during the last five years.
So what does this mean for homeowners? It means that with demand continuing to rise, homeowners can invest in solar with confidence, knowing that solar investments made now will continue to pay off in the long run—not just through lower energy bills but also through higher home values (more on this later).
Fact #3: The price to install residential solar panels is lower than ever
The cost of solar panels seems to drop steadily every year. According to Solar Energy Industries Association (SEIA), the cost of solar panels has dropped more than 70% over the last decade. As we continue into 2022, the market has seen the lowest prices for solar panels ever.
Of course, steadily dropping prices begs the question: Should I buy now or wait?
At Photon Brothers, we don’t blame customers for continuing to wait and see how low prices will drop. However, we always remind homeowners that every year they wait is another year they don’t save on electricity bills.
In other words, for every year you don’t go solar, you lose out on significant savings on electricity bills. And with average utility rates increasing around 3% every year, homeowners need to consider how much waiting will really cost them in the long run.
Fact #4: Solar tax incentives may start to dwindle beyond 2022
On top of losing out on electricity savings, homeowners who wait to purchase solar panels may also miss out on various solar tax incentives.
For example, the Consolidated Appropriations Act of 2021 extended a 26% tax credit for homeowners who install residential solar panels through 2022. However, it will drop to 22% in 2023 and expires after 2023 altogether.
The same concept applies to many solar policies and incentives. While there are over 146 solar policies and incentives in the state of California as of now, many of them will expire over the next 3-5 years or reduce the financial incentive every year.
Fact #5: Home buyers are willing to pay more for homes with solar power
When considering whether to purchase a new home, U.S. buyers are more interested than ever in energy efficiency upgrades. And according to various studies, a home with solar panels is becoming more and more valuable.
In fact, one study by Zillow suggests that adding solar panels to your home can increase your home’s value by 4.1% depending on where you live. Another study from Energy Efficiency and Renewable Energy states that U.S. home buyers are willing to pay a premium of approximately $15K for a home with an “average-sized solar array”.
There is also evidence that homes with a solar panel system will sell faster than those without.
Interested in learning more about going solar in 2022?
Just contact our experienced and trustworthy team at Photon Brothers. We have decades of experience helping California and Colorado homeowners maximize their home’s value and energy savings with custom-fit residential solar systems.
Make the first step towards lower electricity bills with a free, no-obligation solar estimate today.