There are a lot of investments that you can make to embrace a lifestyle of sustainability. One of the most important is solar energy.
Solar energy can go a long ways towards reducing your carbon footprint and lowering the cost of energy at the same time. Many people are discovering the benefits of solar energy, which can be very compelling.
The Market for Solar Energy Has Been Gaining Massive Momentum
The popularity of solar power worldwide has been increasing, and the industry is expected to grow to 20.5% from 2019 to 2026. There are several benefits offered by using solar power, convincing people to shift to clean energy. These include lower prices of materials and installation costs, savings potential, better technology, and reduced pressures on the environment. The benefits of solar energy are basically endless.
If you’re thinking of switching to green energy, here are convincing reasons why you should take advantage of the gains offered by solar power.
Low Prices and Better Technology
The boom in solar power use is attributed to lower prices of equipment, which are at an all-time low. Affordable prices have made solar competitive with other types of fuel. Prices have gone down by as much as 70% since 2010, playing a key role in the industry’s massive growth. According to the Solar Energy Industries Association (SEIA), it cost $40,000 to install a residential solar system at that time. However, today, costs are down to $18,000.
In addition to prices, solar technology has also gotten better. One of the reasons why people hesitate to invest in solar is that energy generation is not reliable when there are a lot of clouds. Researchers, however, have been working on improving battery technology to enhance performance, longevity, and charging and discharging rates. One of these powerful batteries is Powerwall, a rechargeable lithium-ion battery developed by Tesla and paired with a home solar panel system. This intelligent battery stores power when prices of energy are lower, and switches to the stored energy when the rates are higher. In the evening, when solar panels are not producing enough energy to power a home, electricity can be used from the battery instead of buying from the grid.
On top of lower prices and improvements in technology, tax credits and rebates incentivize people to make the switch. In the US, you can claim 26% off your federal taxes for solar power installations. This is one of the biggest financial benefits of solar energy. Federal solar tax credits were extended by Congress in response to their popularity, helping homes and businesses to make the transition from non-renewable to renewable energy. In two years’ time, tax rebates will go down to 11% and 10% in 2024.
In Europe, incentives range from a 30% investment subsidy up to €200/kW for rooftop and building-integrated photovoltaics (BIPV) installations in Austria, to the Energy Investment Allowance (EIA) in the Netherlands, allowing entrepreneurs to deduct 44% of the investment costs on the purchase of PV equipment from the fiscal profits of the company. In short, taking advantage of tax credits makes sense while they are available.
Lower investment costs, tax breaks, and efficient technologies are the primary reasons why people are making the switch to green energy. In addition, reducing your carbon footprint is also an overwhelming motivation to go solar.
Solar Energy is Becoming More Popular than Ever
There are a number of major reasons that solar energy has become more popular in recent years. As more consumers and businesses discover its benefits, demand should continue to grow in the foreseeable future.