Residential rooftop solar has gotten dramatically cheaper, with prices dropping over 60% in the past decade. While inflation and supply chain challenges have increased the price of solar recently, the reality is that 2022 is one of the best years in recent memory for homeowners to consider investing in solar.
This concept of a safe and secure long-term investment is an important one to keep in mind as you evaluate the upfront cost of solar, particularly when a system also includes battery storage. But there are other reasons why 2022 is an especially good year to invest in a solar panel system.
Electricity rates across the country are rising and even doubling in some states. As those rates rise, the savings that come from installing solar only increase. Adding solar can also provide much-needed certainty around your electricity costs, especially if you opt for a system that can generate enough electricity to fully replace your utility bill. Not having to worry about utility rate hikes is particularly welcome at a time of such high overall inflation.
While many people are seeing their electricity rates rise, another important factor that helps determine the financial return of a solar system is headed in the opposite direction. Indeed, one of the main drivers of the solar industry has been the Investment Tax Credit (ITC) offered by the federal government.
The ITC lets people subtract a percentage of the total solar system cost from their tax bill. For example, let’s say you bought a solar system for your roof that cost $10,000. The current ITC is 30%, meaning a homeowner would be able to subtract $3,000 from their next tax bill.
The economics of a solar system are clearly a major factor in determining whether or not you make a purchase. But 2022 has also been a year that underscores just how critical it is to transition as a society to carbon-free electricity.
With record heat around the world and a devastating drought across the western U.S., the time to act is now. Purchasing a residential solar system is one way to contribute to that effort while also taking advantage of a uniquely stable and valuable investment.