As interest in solar energy continues to climb, more people than ever are wondering if it’s the right time to invest in solar panels for their homes. Because pricing is a central factor for most homeowners, a frequent question is whether or not solar panels are getting cheaper and if it’s smarter to wait for prices to drop. As you might expect, the answer is less than straightforward — so we’ll go over some key points to explain the situation.
Long-Term Pricing vs. Short-Term Turbulence
On the whole, solar panels have certainly become cheaper over the years. Between 2010 and 2022, the cost of solar panels plummeted by 89%. However, prices actually rose during 2022 due to supply chain issues that raised the cost of the raw materials required to manufacture the panels. Silver, copper, solar glass, and polysilicon are in short supply, raising costs. For example, at the beginning of 2021, polysilicon cost $11 per kilogram — but by summer, it cost $28.50 and reached a peak of $39 in August. Prices are trending downward, but ongoing global conflict and remaining supply chain issues may change things.
Seeing the Full Story
Homeowners should also note that stalling on switching to solar means missing out on immediate savings on energy bills. With the cost of energy rising nearly everywhere, waiting to install a solar energy system means continuing to shell out more and more over time.
Time Ticking on Incentives
While it’s true that solar panels may decrease in price in the coming years, the incentives that bring them within financial reach have an expiration date. The Inflation Reduction Act offers homeowners a tax credit of 30% of the cost of a solar energy system, but the credit expires in 2035. Additionally, the credit decreases to 26% in 2033 and to 22% in 2034.
Additionally, statewide and local California incentives are subject to phasing out and other changes that may make it more expensive to purchase a solar energy system down the line.
Go Solar With Simply Solar
If you’re interested in a home solar energy system, waiting a few years may not result in significantly cheaper solar panels — and the panels aren’t the whole story to begin with. All the factors above make this a great time to make the switch, and Simply Solar is here to help.
Call us at (707) 285-7037 to learn more about going solar in California today.
