The solar energy industry has been gaining momentum in recent years, even among electric and gas companies. And while 2022 is a great time to join the ever-growing family, the future seems filled with uncertainty. Naturally, people have started to wonder — what can we expect with solar in 2023? So, let’s explore the solar market and find out what it has in store for the coming year.
It goes without saying that solar power is not cheap. In fact, up until a few years ago, only large companies and wealthy families could afford solar installations. However, the prices have continued to drop, allowing more and more people to embrace solar power.
Experts believe that this trend will continue throughout 2023. Their predictions show that, by 2030, module costs will decline by 34% due to the development of new and more efficient processes. Therefore, households that want to install solar panels will be able to do it at some of the most affordable prices ever.
Since 2006, the federal government has been offering a solar tax credit, allowing homeowners to deduct up to 26% of installation costs from their taxes. Much to people’s dismay, this incentive was supposed to end in 2023.
Fortunately, in a surprise victory for the solar technology industry, the government has recently decided to extend the solar tax credit system for at least another ten years. According to the new Inflation Reduction Act of 2022, the solar tax credit will deduct 30% of your solar costs. Keep in mind that the percentage is expected to drop to 26% in 2033 and 22% in 2034. In other words, 2023 will allow for better money-saving opportunities for both commercial and residential consumers.
When it comes to money-saving, solar energy will help households reduce their energy bills even further. It’s important to remember that energy prices will rise by at least 1.2% this year, which translates to a 13 cents per kWh increase. And since natural gas production is in decline due to environmental concerns, the prices will increase even more in 2023.
Yet, solar energy is not expected to impact homeowners’ bills negatively. As a matter of fact, due to solar modules becoming more affordable, households will end up paying 10 cents per kWh. And best of all, the cost of powering a home with solar is fixed, meaning it doesn’t fluctuate with energy trends.
Sadly, the United States is still very dependent on fossil fuels. However, more and more companies are beginning to switch to renewable alternatives, such as solar energy. Actually, in 2016, New York and California ruled that power companies need to get at least half their energy from renewable sources within the next ten years.
Sure, it’s going to be a slow transition. But as solar becomes less expensive, more and more companies and energy distributors will rely on it. So, there’s no doubt that 2023 will see a surge in the number of green power companies across the country.
In the past, a mere 25% of households opted for renewable utilities over traditional energy sources. Now, it’s believed that more than 40% of people prefer the former, with 45% of them willing to pay higher energy bills in order for the United States to fully adopt renewable energy.
As people become more aware of global warming, they also become more interested in renewable sources like solar energy. This also applies to companies, as they want to maintain their reputation as pro-environment and consumer brands. Therefore, it’s clear that 2023 will bring solar power to the front and center of regular consumers and companies alike.
A Bright Future
Accurately predicting the future of solar energy is not easy, especially with so much current instability in the world. However, it’s safe to say that solar power will become more affordable, widespread, and, most importantly, efficient. And while there are many hurdles that solar has to overcome to become the number one energy source, its future looks brighter than ever!