The solar industry is consistently experiencing growth as more homeowners and businesses look to renewable energy to reduce carbon emissions. Solar energy can also improve energy dependence, helping the United States break free of foreign supply chains and save on import costs.
Thanks to the growth in the solar industry, installers, homeowners and businesses can expect a few trends within the upcoming years. Learn more about the different industry trends.
Top 8 Solar Industry Trends
As the solar industry grows, you can expect several trends throughout the industry. For example, experts predict solar efficiency, price, demand and applications will change in the coming years. Here are some of the different solar energy trends to watch for.
1. Solar Technologies Will Improve
Solar technology is quickly becoming more efficient as researchers dive deeper into solar solutions. Researchers are continually finding ways to improve the efficiency of solar panels to allow homeowners and business owners to produce more electricity in a limited amount of space. Solar researchers are also finding ways to create lighter, thinner systems, making them easier to install and improving their appearance.
Even with these improvements, the cost of solar remains stable, and for many people, it’s becoming more accessible for the average home and business owner. Many manufacturers also offer more extended warranties now, making it a safer investment than before.
2. Solar Will Become More Affordable
Since solar’s introduction to the energy industry, it has slowly become more affordable for the average homeowner. Solar is now one of the most affordable types of energy in many countries when you account for the consistent savings solar users experience on their monthly utility bills.
As solar energy installations become more affordable, other solar assets are also becoming more popular and accessible. For example, solar battery storage has grown in popularity over the years. As a result, they’ve increased efficiency and affordability, making them more accessible to the general public.
3. Newer Solar Applications Will Gain Traction
With the advancement of solar energy, more varieties of solar products are becoming affordable. For example, there is increasing popularity for solar-powered LED streetlights to help cities cut down on utility costs and emissions while protecting the public and increasing energy efficiency.
In the next few years, you can expect growth in various solar technology applications. Solar installers may be able to offer more to their customers as these applications grow. Keeping an eye on this growing trend is an excellent way to learn about any new technology that can increase efficiency and reduce energy costs.
4. Demand for Solar Will Grow
Due to the concern regarding climate change and the desire to reduce energy costs, the demand for solar energy solutions has increased since the early 2000s and is expected to continue growing in the coming years. The demand for solar maintenance is also rising as more solar systems are on the market than ever before.
The increasing demand can help introduce various jobs to the country, including manufacturing, installation and maintenance careers. The demand for solar can also help bolster the economy while reducing carbon emissions and helping reverse climate change.
5. The Supply Chain Will Become More Diverse
Many solar systems are manufactured overseas, and the COVID-19 pandemic had a significant impact on the supply chain when various countries went on lockdown and closed their borders. As a result, different United States manufacturers have increased their market share and are looking for ways to move production into the U.S. However, moving production to the U.S. usually leads to increased manufacturing prices, which worries consumers who believe those costs will be passed onto them.
The good news is that some experts anticipate more awareness around supply chains. The result could change how organizations source investors, modules and other solar technology.
6. Solar Installations Can Get More Complex
There are many advancements in the solar industry, and suppliers and consumers have access to more varieties of solar technology than ever before. While these advancements make significant differences in clean energy production and reduced energy costs, the additional features and configurations can become more challenging for some contractors who don’t have enough experience in the solar industry.
Installers must be comfortable building electrical wiring, desktop and smartphone applications, battery or inverter configuration, CAT 5/6 wiring and various wireless communication solutions. Homeowners and business owners need to find an experienced solar installer to ensure they can benefit from all the advancements the solar industry offers.
7. Benefits for Solar Adopters Are Growing
Solar adopters have plenty of benefits, including reduced utility costs and a contribution to a cleaner environment. One of the most significant benefits of installing solar is the solar Investment Tax Credit (ITC), which has undergone recent changes due to the Inflation Reduction Act (IRA).
Residents and businesses can claim a 30% tax credit under the ITC for new solar installations. Homeowners can apply this tax credit to their personal income taxes. The ITC will remain at 30% until the end of 2032 and will reduce to 26% in 2033 and 22% in 2034. By 2035, the ITC will decrease to zero, meaning it’s best to invest in solar sooner rather than later.
This benefit can help solar investors see a return on their investment. The tax credit and reduced utility bill can help homeowners and businesses find a significant return until their solar system pays for itself.
8. Companies Are Diversifying to Include Solar
Many companies are looking to switch to renewable energy, and solar energy is an attractive option. So many companies are considering diversifying to solar because consumers are demanding more transparency among businesses to use clean energy to reduce their environmental impact.
As a result, the solar industry expects to see more businesses invest in clean energy, with solar at the forefront. Traditional energy companies may also evolve, offering solar as one of their energy options. This change can significantly impact consumers, helping push more homeowners and businesses toward solar solutions.
Contact 8MSolar to Learn More About Our Solar Solutions
Solar energy is quickly progressing, and 8MSolar is here to help you take advantage of the emerging advancements and benefits. We build customized solar systems for homeowners, businesses and nonprofits so they can benefit from clean energy and see a reduction in their monthly utility bills. We can also talk you through the various other benefits of solar, such as the ITC or state incentives.
We offer various solar system services, from design to installation and maintenance. Contact us today to learn more about our solar solutions and how we can help you make the most of the current and emerging trends.
