Our Solar Specialists are commited to staying on top of the industry and sharing that industry knowledge to our customers and our Sarastoa community. We have been serving the Sarastoa community since 2007.
Last week we covered what Biden’s administration has planned for renewable energy and how it pertains to solar. This week, We look at what to expect with his plan that will surely meet opposition in Congress. This $2.2 trillion bill hasn’t been introduced to the House yet, but Biden has been busy combating climate change anyway.
As The United States moves forward under new leadership, it’s essential to understand what that vision looks like for solar and renewable energy. One of President Biden’s key issues will be addressing climate change. He has promised to combat climate change throughout his campaign and repeatedly addressed the urgency and responsibility that he, Congress, and all the American people will have before them. Let’s take a closer look at Biden’s ‘Build Back Better’ plan about solar energy.
Residential photovoltaic (PV) installations are considered a major home upgrade. Households that invest in solar can instantly save money by reducing utility costs. Eventually, homeowners will save enough money where it covers the cost of the solar installation. This is referred to as the return of investment, or ROI. We will look at the expected ROI for solar systems installed in 2021. Not only do solar consumers save money, but their solar investment will increase the value of their homes. Their home appreciates just for having solar panels installed. We will also analyze the increased property value expected with installing a solar system in Florida.
As we beckon in a new year, we are reminded of the past. After a tumultuous year, people worldwide are ready to emerge out of the pandemic, eager to get back to normalcy. We have experienced an increase in home utility bills during the pandemic, the decrease of door-to-door sales, and the rise of online sales for solar. Like every significant sector, solar took a hit from the pandemic. Yet, the new year brings in new hope and anticipation. Solar is looking up for 2021.
It was a Christmas miracle reminiscent of Charles Dickens’ A Christmas Carol. Congress passed an extension of the federal Solar Investment Tax Credit (ITC) on December 27th, 2020. The President signed off on a 2.3 Trillion dollar spending and relief package. The government shutdown was avoided, and the much-needed Covid-19 relief was included. The American public can expect a two-year extension for the 26% ITC in addition to the $600 stimulus checks.
2020 has been a tumultuous year. Despite the ups and downs of a pandemic and economic uncertainty, solar energy overcame all obstacles to flourish in this historic year. The solar industry forged its path through legislative victories and improved technology to see substantial growth in residential and commercial installations.
The Bureau of Labor Statistics projects an increase of 51% for Solar Photovoltaic Installers from 2019 to 2029. The number of installers could grow from 12,000 to over 18,000. This far exceeds the growth seen in most other professions.
Last month the SEIA, Solar Energies Industries Association, vocalized their dissent of the upcoming reduction of the solar ITC, Investment Tax Credit. The ITC is dollar for dollar, federal tax credit worth 26% of homeowner or company’s solar investment. The tax credit will save you money. It is a policy passed by Congress to incentivize and help with the transition to solar power. The SEIA is calling on Congress to pass an extension to the ITC. The current rate is 26%.
This week President-elect Joe Biden introduced key officials and cabinet members. Among those members was the man tasked with leading the way to address and combat climate change, John Kerry. The selection of John Kerry marks a significant refocusing on climate change. President-elect Joe Biden emphasizes the importance of reducing emissions, rejoining the Paris Agreement, investing in renewable energy, and incentivizing the private sectors. The United States can expect more growth in solar; thus, Florida can expect more growth too.
The President of SEIA, Abigail Ross Hopper, stated to reporters on November 17th, 2020 about their number one priority. The SEIA wants to prioritize the expansion and broadening of the ITC. According to President Hopper, “broadening the solar industry’s key federal tax credit will provide the most measurable relief as it weathers the economic difficulties of the pandemic.”
