Solar Is Finally Getting Its Due… And Then Some
If you’re in the solar business, then you know that solar is finally getting its due. Consumers from all walks of life are getting in on solar energy, and why wouldn’t they? Solar is affordable, efficient, and great for the environment. It reduces our dependence on imported oil and our greenhouse gas emissions. It even raises our property values.
So what’s not to love? It seems that every year, impressive new records are set for new solar installations. Better yet, the solar winning streak is far from over. Here's what we're expecting based on expert opinions for solar's growth this year.
2016 Will Be a Huge Year for Solar
In case you're a solar installer and you haven’t heard, you’ve picked a wonderful business to be in. Solar energy basically sells itself; all you have to do is make sure the public buys it from you.
In a recent report, the Solar Energy Industries Association and GTM Research recently forecasted a strong year for solar energy. How strong? Try 16 gigawatts of newly installed capacity, for a year-over-year growth rate of 119%.
As you may already be aware, 2015 saw 7.3 GW of new solar power come online. That was impressive enough on its own, but to have solar installations more than double within a year’s time is more impressive still.
So what’s behind this sudden growth spurt, and can it possibly continue at the same rate?
2016: the Year Big Energy Goes Solar
Big utilities have a reputation for obstructionism when it comes to solar, and for the most part, that reputation is well deserved. And while we’re on the subject, major utilities around the country are still aggressively pushing for net-metering rate rollbacks, higher fixed fees for residential solar users, and other concessions from state utility commissions.
But while utility companies are trying to wring the maximum ROI from their existing investments, even they can’t deny that solar energy is going to play a major role in the future of energy production. And they know that they’ll need to update their infrastructure to keep up with the solar revolution.
That’s why they’re making big investments in photovoltaics this year. The SEIA estimates that nearly three quarters of new solar capacity installed during 2016 will be utility-owned.
The Solar ITC: Hello, Goodbye, Hello Again
The federal solar investment tax credit was slated to die at the end of 2016. As you know, the ITC provides solar adopters (or their solar lessors) with a tax credit for 30% of the applicable equipment and installation costs associated with a new photovoltaic system.
Because of the 2016 sunset date, many potential solar adopters, contractors, and developers rushed to ensure project completion before the credit expired. This rush to get in under the wire has certainly played a role in bolstering solar installations in the commercial and residential sectors.
Now that the credit has been extended, there may be a bit less urgency in the market. But with battles over net metering and other solar policies looming in states across the union, it’s still a great time to get in on the generous distributed generation reimbursement rates and speedy payback periods currently available in many parts of the country.
Measured Growth on the Horizon… By Solar Standards, Anyway
At this point, you may be wondering: can the solar industry keep up this meteoric adoption rate? Well, the SEIA expects the utility-scale projects to taper off in 2017, returning the industry to its regularly scheduled exponential growth, which is still quite respectable, indeed.
If you're the owner of a solar installation business and your sales pipeline is looking a bit empty at the moment, RGR can help you take advantage of the unprecedented growth that's projected in the industry for 2o16. Get in touch with us today, and we'll get you set up with the highest quality exclusive solar leads available anywhere.
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