Solar Prices Are Going Up
The cost of solar equipment steadily declined until 2020 through the beginning of 2021, when it suddenly began increasing.
Solar is now seeing a trend in increasing material and labor costs as well as a supply and labor shortage that has heavily impacted the industry. This is not surprising with the inflation rates skyrocketing, but solar panel customers can expect to pay more for their solar system in the near future. There are many factors that have converged at this point in time that has led to increasing solar prices.
Rising PV Costs
According to research done by Rystad Energy, one of the reasons the price of a solar system has increased for the first time in ten years is because of a rise in the cost of PV panels. Further analysis done by Rystad Energy has found that since April of 2020 PV panel prices have increased by 50 percent. This is not to say it is the only key factor leading to rising solar prices.
Supply Chain Issues
One of the many after-effects of the COVID pandemic has been supply chain issues and shipping problems. This global issue has led to a domino effect across various market sectors and throughout the united States’ solar industry. The Solar Energy Industries Association has found that, “For the fifth consecutive quarter, year over year prices have increased across all market segments leaving utility-scale solar prices 12.7% higher than they were a year ago.” Ongoing restrictions on raw materials from foreign countries, a surge in components costs, factory production interference, trade tariffs, labor shortages, and other shipping delays have caused a pile-up in many of the key industries working alongside solar.
Future of Solar
A forecast of the global market and inflation in the United States still show signs of continuing this same trend. Luckily, the solar industry has had to roll with the punches and be flexible during hardships before. What has not changed is that solar is still an eco-friendly, money-saving, cost-effective energy source, and therefore, going solar is still a good decision to make. With inflation and widespread price increases (including rate hikes at SDG&E), it’s even more important now for prospective solar owners to invest in solar and take advantage of the 30 percent solar investment tax credit (ITC) extension. For these reasons, industry professionals, suppliers, customers, advocates, and other experts are all working hard to get the solar industry back on track.
Sungenia is here to help with honest solar advice. Our team consistently researches and updates our products to make sure you get the absolute best. We design solar systems using the latest in high-efficiency solar components and American-made equipment to provide affordable solar power for everyone. Start your solar journey with Sungenia and contact us for more information!
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