By Theresa Ficazzola
The U.S. solar panel industry continues to grow, helped by a number of trends that are making this green technology less expensive and more efficient for the average American household.
Led by California, North Carolina, Nevada, Massachusetts and New York, the U.S. solar market experienced a year-over-year growth rate of 17% in 2015, and for the first time, beat out natural gas capacity additions, as reported by GTM Research and the Solar Energy Industries Association (SEIA).
GTM Research and the SEIA also noted that the residential solar market grew 66% year-over-year, representing 29% of the entire U.S. solar market – its largest share since 2009, helping to reduce greenhouse gas emissions and save homeowners money.
That’s great news when you consider that the U.S. Department of Energy estimates that houses and office buildings are responsible for 39% of the country’s energy consumption and greenhouse gas emissions, and that the typical household spends roughly $2,200 a year on energy costs.
Current Trends
There are a number of trends that are helping to fuel the growth of the solar industry.
Reduced Costs
As with any new invention or technology, prices tend to be high at the outset, but then typically fall after the technology is enhanced, production is streamlined and demand increases. When solar panels were first introduced, prices were high. However, from 2000 to 2014, the cost of residential solar panels fell approximately 7% per year, according to the Department of Energy, making them more affordable for the average homeowner.
While many different factors impact a person’s direct savings from solar, a typical homeowner may be able to eliminate between 70-100% of their current electric bill. However, since everyone’s home and personal situation are so different, results may vary.
Additionally, the cost of electricity in expensive geographic areas, such as New York, continues to rise. Electricity Rates in the NY, NJ, CT tri-state area have increased at a 5% annual rate over the last decade an Con Edison has just announced a new set of proposed rate increases for 2017. However, with solar, you can lock in your electric rate, thereby, shielding you from future electricity rate increases.
Better Financing Options
An investment in residential solar is a big commitment. However, the long-term benefits and savings are well worth it. Low interest loans and $0 money down programs now make solar affordable for many residents.
To help Americans offset some of the cost of residential solar panels, the federal and state governments offer a variety of tax incentives and rebates to help pay for residential solar systems. And in New Jersey, residents can accumulate SRECs, which add to their savings.
Increased Home Values
If two comparable homes are for sale (one with solar and one without) buyers will likely be more interested in the one with solar. Why? A $0 electric bill, or one that is significantly reduced, is more appealing that an electric bill that is a few hundred dollars. With one less monthly expense, a potential homeowner could put those monthly savings toward another expense, such as a mortgage or car payment.
A study by Lawrence Berkeley National Laboratory found that homes with owned (rather than leased) solar panels could sell for about $25,000 more than comparable non-solar homes.
More Efficient Solar Panels
As solar technology improves, so does the production of more efficient solar panels. There are a variety of different types of panels available today; however, they differ in their cost, size, efficiency, and curb appeal.
For example, monocrystalline panels perform at a high level, but are expensive. Polycrystalline panels have a lower efficiency rating and require more space, however they are less expensive. Thin film panels are light weight, don’t perform as well as the other two, require a lot of space, and typically don’t last as long.
Your solar contractor can help you decide which panels are best for you. SI Solar recommends LG panels for its customers. LG Electronics has more than 50 years of experience as a global pioneer in electronics technology. Backed by 25 years of research and development far surpassing industry standards, LG Solar’s photovoltaic modules are uniquely designed to offer superior quality, field tested performance, durability and reliability. Plus, they come with a 25 year warranty.
Experienced Installers
Just like any other home improvement project, if you plan on hiring a solar company, you should ensure it has experience and the proper credentials. Look for contractors with significant installation experience, such as SI Solar, a local small business in the New York/New Jersey area. SI Solar provides outstanding customer service, something the large, out of town mega solar companies can’t provide.
“I grew up on Staten Island,” said Frank Ficazzola, president of SI Solar. “I’m committed to helping area residents save thousands of dollars on their electric bills, while allowing them to do something good for our planet,” he explained. “Our customer service sets us apart from many of our competitors. We answer our phone seven days a week, continuously monitor our customer’s systems to ensure they are working properly, and resolve any issues—if any arise—quickly and efficiently,” Mr. Ficazzola added.
If you’re interested in learning more about how solar can benefit you and the environment, contact SI Solar today for a free, no obligation appointment.
