Thanks to steadily decreasing solar costs and federal tax credits, solar installations around the country are on the rise. However, even with increased efficiency and falling solar prices, only about half of Americans are willing to foot the full bill, making solar subsidies an imperative benefit for the industry heading into 2023.
The Solar Industries Energy Association (SEIA) states that from 2022’s first quarter 1 to fourth quarter saw a decrease in overall installations of solar panels when compared to 2021, although, residential installations have had a record-breaking Q1, and observable quarterly increases over 2021’s residential solar panel installations.
In the first quarter of 2022, solar decreased by 24% compared to Q1 2021 while fourth quarter of 2022 installations decreased by 52% when compared to the fourth quarter of 2021.
In the first quarter of 2022, residential solar increased by 30% compared to the first quarter of 2021 while the fourth quarter of 2022 residential solar installations increased by 5% when compared to the fourth quarter of 2021.
While several factors have influenced a decline in overall solar installations — most notably supply chain issues related to the pandemic, unemployment rates, and an era of international inflation — the increase in residential installations is invigorating and statistically signifies a people’s enthusiasm for renewables. Newly-passed legislation is also set to support the renewable energy industry going into the first quarter of 2023, and the future of solar is looking bright!
Residential installations are expected to increase in 2023 as homeowners continue to benefit from solar subsidies. California is going a step further than other states by requiring all solar panels on all new residential builds, and as battery storage technology becomes increasingly more efficient and energy suppliers become more decentralized, energy storage will likely become an important asset for grid systems in securing reliable, widely available, and adaptable energy solutions. This will influence investors going into 2023 and almost certainly lead to an increase in solar installations.
PV modules and solar shipments coming from South East Asia could be disrupted by tariffs and possibly cause a drop in the industry, however, there is no certainty of tariffs or how long they will last, and US agreements with South Korea could make the United States a top superconductor producer. Likewise, an increase in polysilicon manufacturing by the end of the year could facilitate a decrease in 2023 solar prices.
Yes! Solar panels are in all of our futures as there is a desperate need to reduce global carbon emissions. The pros of solar panels overshoot the cons — and with the exception of a few possible geopolitical speedbumps — 2023 will be a critical year for the solar industry.
Installing solar panels will not only help to heal mother nature, but it will assuredly save you money over time and raise your property’s value. Let the Gurr Brothers help you gain energy independence and go green with their competitively priced solar solutions. Get aboard the green energy train and start saving by contacting the Gurr Brothers today!
November 22, 2022
Author: Hunter S.
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