With the state of the world and inflation high on people’s minds, many are wondering where the right investments are to put their money. Is solar energy a good investment? What are the inflation trends? Where are interest rates going? While no one but you can make the right decision for you and your family’s financial goals, there is data that points to why now is the best time to invest in solar energy.
In this post we wanted to provide a snapshot of the solar energy landscape today, where it’s headed and why transitioning to solar is a smart investment this year.
1. Energy prices are rapidly rising, despite overall inflation rates stabilizing
While inflation costs are beginning to stabilize and we’re seeing pre-pandemic prices in many areas like gas, food and retail, one industry is continuing to rise: electricity. Electricity prices have risen 34% over the last 10 years alone.
Transitioning to solar energy offers a hedge against rising energy costs, capping your monthly payment and giving you more energy independence from the volatility in the market.
2. Solar panel demand is rising nationwide
Demand for solar panels is rising. But what does this mean for consumers? With industry growth comes a higher demand for materials and personnel needed to do the solar installation jobs. This could equate to longer wait times for residential solar consumers in the future. There could be more supply shortages, like the temporary shortage the industry saw in 2022.
One positive is the growth in demand will create more jobs in the solar industry. However, in a few years there could be a personnel lag while the industry catches up with the increased demand. As solar starts to enter the mainstream, getting ahead of the demand curve is a good reason to go solar soon.
3. Residential solar currently dominates the industry, but in a few years, a utility solar boom will take up more resources
Also shown in the chart above, is the forecasted boom that utility solar will have in the coming years. If you’re a homeowner considering transitioning to solar, you might want to make that switch sooner than later.
Right now residential solar projects are 31% of the solar PV demand, but by 2027 residential is estimated to fall to 16% of the market with utility solar growing rapidly, at 180%. As the industry evolves and demand continues to rise, resources will start to prioritize more large-scale projects. This means in the future, there could be longer wait times and less panels going toward smaller, residential projects. Times are a changin’, and the solar landscape will change, too. Home owners should consider this for their timeline to go solar.
4. Transitioning to solar energy increases your home’s resale value
Homeowners will see an increase in their home’s resale value with a return on investment (ROI) that is higher than many other types of home improvements. According to Zillow, solar panels boost the selling price of the home by 4.1%. In our hometown of Austin, TX, the average home is $599k. That means the average homeowner will see an ROI of $24.5k added to their home value, just by upgrading their home to solar.
Additionally from an aesthetic perspective, solar panels have never looked better. Gone are the days with clunky and outdated panel technology. SunPower solar panels offer a sleek design through low-profile mounting system for homeowners who want a superior look, while being the most energy efficient option on the market.
