Why Solar Now?

Although solar energy has been utilized by mankind for centuries, it’s only recently that solar power has become a viable option for generating electricity. There are many reasons why solar is becoming increasingly popular, but three factors stand out: the declining cost of solar panels, the rise of renewable energy targets, and the increasing awareness of the environmental benefits of solar power.

In many parts of the United States, solar power is cheaper than traditional electricity sources. As solar energy becomes more and more affordable, there has never been a better time for building owners and developers to consider incorporating it into their projects. If you’re thinking about going solar, here are a few reasons why now may be the time to make the switch.

The Changing Landscape For Solar Power

Lower system costs have been driving the changing landscape for solar power. More and more building owners and developers are now considering going solar to reduce their energy expenses and emissions. In the past, the high installation costs and payback periods made solar an unappealing option for many businesses.

However, falling equipment and installation costs have made solar much more attractive. According to the National Renewable Energy Laboratory, the cost of photovoltaic systems has fallen by more than 70%. With prices continuing to drop, solar is becoming an increasingly viable option for many businesses.

As a result, we are seeing a dramatic increase in commercial solar installations, and the trend is expected to continue. The falling cost of solar is creating a new landscape for renewable energy. Commercial buildings are increasingly turning to solar to save money and reduce their environmental impact.

Rising Utility Costs
As utility bills continue to rise, building owners and developers should consider solar power to offset their energy costs. And for a good reason: solar power is a clean, renewable resource that can provide a significant financial return on investment. The cost of solar panels has dropped so dramatically in recent years that they are now within reach of many building owners.

But the changing landscape for solar power isn’t just about the falling cost of panels. It’s also about the rise in utility rates. In states like California, where electricity rates are among the highest in the nation, solar power is now increasingly seen as a wise financial investment. With utility bills only expected to increase in the coming years, solar power is likely to become an even more attractive option for those looking to save money on their energy costs.

Federal Tax Credits
The solar industry has undergone dramatic changes in recent years, primarily driven by federal tax credits. Building owners and developers who once considered solar a niche investment should now look closely at the potential costs and benefits. Similarly, architects who once saw solar as an afterthought should now incorporate it into their designs from the ground up.

On August 16, 2022, the Inflation Reduction Act of 2022 was passed, expanding tax credits incentivizing decarbonization in the United States.  The Bill extends the commercial tax credit for solar panels until 2034 and phases out the tax credit beginning in 2032. The result is that the tax savings for installing solar panels will be 30% of the cost of panels. The Bill extends the tax credit and accelerates the solar panels’ depreciation schedule.

These changes will make a solar energy system an excellent investment for building owners and architects. Not only will the Internal Revenue Service pay for up to 30% of the solar panel’s cost, but the panels will depreciate in just five years, while they are likely to last for 25 to 30 years.

These tax advantages will allow building owners to recoup a significant portion of the cost of the system quickly and enjoy lower electric bills for many years to come. In addition, many tenants appreciate having a solar energy system providing power to their operations, as it reduces their carbon footprint and moves them closer to their ESG goals.

The result will be a growing demand for solar power that profoundly impacts the energy landscape. Federal tax credits have played a critical role in driving this growth, and they will likely continue to do so for the foreseeable future.

Building owners and developers should consider solar power to reduce energy costs and carbon footprints to reduce operating costs and achieve sustainability goals. The landscape for solar power is also changing as utility companies are beginning to offer incentives for customers who install solar panels.

Sometimes, these incentives take the form of rebates or discounts on monthly electric bills. In other cases, utility companies may offer to purchase excess electricity generated by solar panels. As a result, utility companies are becoming significant players in the solar power market. Building owners and developers considering solar power should be aware of these changing dynamics and how they may impact their bottom line.

In recent years, there has been a shift in the way that the general public views solar power. Once seen as an alternative energy source only adopted by those with a strong environmental conscience, businesses are now embracing solar power to reduce their overhead costs and meet corporate sustainability initiatives.

This change is mainly due to the advancements in solar technology, which have made solar panels more efficient and less expensive to install. As a result, building owners, developers, and architects should consider incorporating solar panels into their plans for new construction projects. In many cases, using solar power can significantly save businesses over the long term. As the business community continues to move towards sustainable practices, the landscape for solar power is poised to change significantly in the years ahead

The landscape for solar power is changing, and one of the most significant changes is the increasing electrification of the grid. Building owners, developers, and architects are seeking ways to reduce their reliance on fossil fuels, and solar power is a crucial part of that effort. However, one of the challenges associated with solar power is its intermittency.

Fortunately, electrification is helping to solve that problem. With electrification, solar power can be stored in batteries and used when needed, which means that it can be used even when the sun isn’t shining. That flexibility is crucial for meeting our energy needs, which is why electrification is an essential trend in the solar industry.

Bottom Line

Solar energy is gaining increasing popularity for various reasons. Perhaps, most importantly, solar panels have become more affordable in recent years as the technology has improved and manufacturing processes have been streamlined.

Additionally, many states now offer tax credits or other incentives for businesses or homeowners who install solar panels, making the switch to renewable energy even more appealing.

Finally, concern over climate change and its potential effects has driven many people to explore ways to reduce their carbon footprint, and installing solar panels is one of the simplest and most effective things you can do.

So what does this mean for your building? Contact us today to discuss how we can help you switch to solar energy – it’s never too late to start saving money.