Updated: Nov 23, 2020
Although 2020 has certainly been a year for the history books, the sun remains shining, and solar energy is still a great way to produce clean, renewable electricity. Aside from the fact that spending more time at home has lead to increased electric bills nationwide, solar energy adoption is continuing to increase at rapid rates across the country.
At Apollo Energy, we have been working safely through this entire year to bring our customers independently owned, renewable electricity. With each installation, members of our community can produce their own electricity, while saving on the long-term cost to run a home using utility-provided power. In this article, we will outline precisely why 2021 is the best year to install solar panels at the lowest net cost for a very long time.
The 2020 Federal Tax Credit is Gone
All solar panel systems installed in 2020 qualified for a 26% federal investment tax credit,. Now that we are headed into the holiday season, the chances of finding a reputable installer that can turnaround a quality installation in less than a month are unlikely.
Thankfully, solar energy systems installed in 2021 are still eligible for a 22% federal tax credit towards the total cost of the project. Here, it is critical to note that 2021 is currently slated to be the final year for residential eligibility with the ITC. Starting on January 1st, 2022, residential customers will no longer be able to reduce the cost of their system by over 20%.
For more information, feel free to read our full article on the solar investment tax credit.
The Price of Solar is Leveling
Over the past few decades, it is no secret that the price of solar has been plummeting..While the cost of parts and installation has never been lower, this isn't necessarily going to be a sustainable trend. While adoption levels continue to grow, the price of solar has actually leveled out in the past two years according to industry analysis.
In this graph from the Solar Energy Industries Association (SEIA), the price of residential solar PV systems went down tremendously in 2015 but somewhat leveled out over recent years. While solar continues to be purchased at rates that make it more affordable than traditional utility energy, the industry's rapid expansion no longer has a tremendous effect on the cost to install a residential PV system.
The Net Cost of Your Solar Installation
If you were ever thinking about putting solar panels on your home, now is the time. 2021 is the last year for a large tax credit to be applied to the price of a residential system, and the total cost of solar is not decreasing quickly enough to recover from this potential loss. With this in mind, the net cost of a home solar energy system is going to be lower in 2021 than it will be for a very long time.
How to Keep the Cost of Solar Low
Of course, one of the best things about solar energy is that there is very little maintenance upkeep or added costs for continued green energy generation. To keep costs low, over time, we recommend the following:
Purchase systems with long solar panel and workmanship warranty periods .
Monitor your system's performance and look out for losses in efficiency as well as other common solar panel problems.
If you have any other questions about the cost of solar in 2021, feel free to contact Apollo Energy about solar in Colorado and Wyoming.