We’ve all been impacted, in one way or another, by the economic setbacks of the past two years, caused by the supply line collapse following lockdowns related to COVID-19 and other associated challenges.
Now, the current crisis in Ukraine threatens the global fossil fuel supply, further destabilizing the world economy and fueling a serious rise in costs for all consumer goods, from medicine to food to clothes. The solar power industry, on the other hand, has never done better. 2022 is shaping up to be another blockbuster year for Earth’s one true renewable energy source.
Here are the exciting developments in the world of solar power that you can expect in the upcoming year.
Why Does Solar Power Continue to Outperform Other Energy Sources?
There are multiple reasons to explain the solar boom that we’ve seen in the last several years. Here is just a handful:
· Increasing social awareness of the existential threat that unchecked carbon emissions pose to life on Earth
· The steady supply of free sunlight (especially in sunny Florida!) is immune to global catastrophes such as stock market collapses, far-off natural disasters, war, etc.
· Generous tax incentive programs for business people and homeowners who install solar panel systems in their homes (learn more about solar power tax incentives available to Floridians)
· Government policy intervention in the US and elsewhere to disincentive fossil fuel usage in favor of renewable energy
· Public pressure on private-sector businesses to adopt green energy policies
· Massive global investment in research and development for more efficient, more affordable solar power systems
· Solar panel systems are excellent investments that outperform other traditional investments like stocks
The result of this favorable mix of conditions is a booming industry.
“The cost of solar power has plummeted in recent years, and in many places it is even cheaper than coal or other fossil fuels. Thanks to generous tax credits and subsidies, solar installations are now increasing worldwide.”
How is Solar Energy Projected to Perform in 2022?
Thus far, solar power has fared relatively favorably compared to the other industries that have suffered wide-ranging impacts wrought on the economy and supply line collapse related mainly to COVID-19.
Speaking at the Annual State of the Energy Industry Forum in January of this year, President and CEO of the American Clean Power Association (ACPA) Heather Zicha offered a hopeful forecast for solar power in the next year:
“Last year we installed more… solar and battery storage than any year in history… But what’s clear is, as important as 2021 was, 2022 will be the year that determines whether we accelerate progress or whether we plateau.”
The Build Back Better Snag
The solar industry does face particular challenges. For example, the large piece of Congressional legislation proposed in 2021, dubbed the “Build Back Better” plan, includes the continuation and expansion of federal solar power tax credits:
“The Build Back Better plan will increase the investment tax credit (ITC)–a subsidy for solar installations–from its current 26 percent rate to 30 percent, meaning more savings for residents who install solar panels. It will also ensure the ITC stays in place for at least 10 years.”
It has so far stalled in Congress, despite large-scale efforts to get it passed by environmental activists and renewable energy experts, among other lobbying groups. Under the current ITC plan, federal subsidies are scheduled to decline over the coming years, which could impact those property owners across the country who depend on them:
While full passage of the Build Back Better legislation is unlikely to come to fruition in the next year, President Biden did give support in a January speech to carving out the solar tax credit provision and passing that as a stand-alone bill.
We will follow the tax credit issue closely and keep our customers updated on the latest developments.
How World Developments Are Projected to Impact the Fossil Fuel Industry in the Near Future
To better understand how solar power is ideally situated to win the future, juxtapose the optimistic economic outlook for solar power discussed earlier with the fossil fuel industry, which was already fledgling before 2022, and is now further threatened by the current war in Eastern Europe.
The World Economic Forum explains the systemic impact of soaring oil and gas prices:
“It is hard to predict which way the situation and markets will go, however it seems that we are poised for a period of high energy prices that are driven by war and combined with tight market fundamentals.
High prices are being passed over to consumers at the pump, in their gas, heating and electricity bills. And high energy prices contribute to increased cost of virtually all goods and services further fuelling inflation expectations.”
Even though the conflict is only weeks old, policymakers worldwide have already fast-tracked and prioritized the already-rapid transition to green energy:
“Russia’s invasion of Ukraine has prompted… governments… to make a frantic reappraisal of their energy supplies – one that arguably should have come much sooner. The first outcome has been a fresh resolve in some countries… to push for more renewable energy generation and energy efficiency to cut dependence on fossil fuels.”
The sharp rise in gas prices, the negative effects of which will reverberate throughout every sector of the economy given the importance of energy to the overall market, underscores more brightly than ever the need to transition away from carbon-emitting fossil fuels and toward renewable energy sources.
Solar power is the undisputed king of renewable energy, being the one true renewable energy source currently known to man.
Contact Compass Solar to Learn More About the Benefits of Solar Power
In light of the benefits of solar power both to the environment and to your wallet, and the energy independence it provides from a geopolitical perspective, moving ahead with a solar panel project for your own home or business is a no-brainer.
We’re always happy to discuss the vast benefits of solar panel systems, how they work, and how you can recruit Florida’s leading solar power experts, Compass Solar, to install your very own system.
With our 0% down, low-interest financing options, it’s easier than ever to get your own warrantied solar panel system in your home or business and immediately shave 70% off of your monthly energy bill. Contact us to learn more and to schedule a hassle-free, no-pressure consultation and quote.