There are numerous solar panels installed in the US with the capability to power up numerous numbers of homes the number still continues to rise in the near future. Solar energy is an industry characterized by many dynamics. Several factors, including solar technology advancements, government policies, changes in prices for commodities affect the distribution of solar energy in the United States. What awaits in the store for the 2020 trends taking over in the market? Let’s see some of the solar energy trends that will help get a great understanding of what is on the trend for this year.
The Reduction in Solar Prices
Solar energy is an alternative source of energy. It harnesses the energy when there is sunshine and when there isn’t. energy storages are important for storing the power for use when the sun has already set or on a cloudy day, which also adds to the solar systems’ capability. The lead-acid accumulator is highly advanced, long-lasting, and also requires only small maintenance. It won’t be a surprise if you find that a lithium-ion battery has a higher initial capital but it has been decreasing over the years.
The cost of lithium-ion batteries went down by 35 percent in 2018. The downward trend is an indicator of the need to embrace renewable energy, and the trend continues. Natural gas has been used at times for the peak energy loads in ead corporations since they can easily be turned off and on, unlike the nuclear power plants. The lower costs make solar energy an easy alternative as a source of energy. Besides, more homeowners depend on solar systems equipped with battery storage as a measure to combat emergency power outages than ever before. This is turning to be a favorable choice in areas that are prone to power outages occasioned by natural calamities or as a result of inadequate infrastructure.
The Demand for Solar Energy
There has been a rise in the demand for solar energy systems for a few reasons. One of the main reasons is the decrease in solar energy prices the cost for grid outages has been on the rise. Even though there was an increase in the grid outages in 2019 that affected at least 37 million people, blackouts can lead to severe damage to your property. Many people experienced a power outage in the past due to severe thunderstorms, resulting in huge losses.
In some states, intentional blackout has been used to prevent wildfires. Even though California was on the lead for the country’s solar deployment, there has been a shift in focus in the solar deployment due to a shift in focus as consumers demand solar and storage. Lately, there has been a change in the new demand for solar-powered generator(s) and high consumer needs for solar harnessing and storage since they can be sure of their safety from power shutoffs that have left many utility customers in the dark in the past. Big companies will be able to save a significant amount from the electricity cost if they opt to use solar energy.
Reduction in Solar Tax Credit
Through the federal government, there has been a reduction in taxes related to solar energy. The government’s solar investment tax credit is a worthwhile initiative to cut the total cost when you opt to go for solar energy. Noting that congress didn’t extend the solar credit and therefore it will be getting lower every year starting with 2020. Therefore, the incentive will have more impact in 2020 and later years. Previously, the credit was set higher but begging the start of 2020, and the solar will be at a lower rate the total value of solar system inclusive of the installation. The solar investment credit will continue to reduce the tax credit indefinitely for business and residential projects until it reaches zero for residential solar.
Solar for commercial and residential use is turning out to be a trend since the commercial electricity costs are high, and they are still getting higher. Therefore, solar energy remains the only appropriate option throughout the country since it is a great way to cut down the operation costs and enable the businesses to re-invest the savings.