When solar power first entered the consumer market, it was prohibitively expensive, and very few average homeowners could afford it. Over the years, however, manufacturing processes improved, more competitors entered the market, and, despite the fact that solar panels were becoming more and more efficient, the cost for solar continued to decline. Now, though solar is still seen as a large investment, it’s something that’s achievable for many homeowners. If you’re considering investing in solar, you may be wondering if now is a good time to do so, or if prices are expected to continue declining in the near future. Keep reading to find out.
Advancements in Technology and Manufacturing
As mentioned above, one of the main drivers of falling solar costs has consistently been improvements to technology and manufacturing processes. Panels have become more efficient and more affordable to make over the last decade—and more improvements are expected. With innovations like AI-optimized systems and bifacial panels already beginning production, solar energy could become even more cost effective, with lower production costs and better performance giving you more watts per dollar.
Changes to Tax Incentives and Credits
Government policy can play a big role in the affordability of solar. The Investment Tax Credit, or ITC, has been a big player in driving the adoption of solar in the US. Currently, the federal tax credit is slated to stay at 30% through 2032, but will begin to phase out afterwards if Congress doesn’t extend it. Any reduction of this credit would increase the upfront cost of installing a solar power system.
It’s also worth noting that states do offer their own incentives. These vary widely and can change from year to year as well, so be sure you have a good understanding of the incentives in your state.
Tariffs and Trade Policy
Global supply chains significantly impact the cost of solar equipment. Many solar panels are manufactured in Asia, especially China—and even those panels made in America require components and materials from other countries. US trade policies, most notably tariffs on imports, can raise prices for consumers.
Ultimately, it’s likely that shifting trade policies will cause a temporary increase in solar costs. However, in the long run, the cost of solar is expected to remain stable, or even decline slightly. If you hope to install solar in the next few years, it’s best to act quickly, before that temporary spike in cost hits. Speak to a solar equipment distributor about purchasing your Mission Solar 410W solar panel, solar inverter, and other solar equipment as soon as possible.
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