Why Now Is The Best Time To Go Solar

Using solar energy is always a good idea, as it helps reduce air pollution caused by fossil fuels and is beneficial for the environment. But why is now the best time for going solar? 

The latest solar panel news states that vast economic challenges in 2021 have resulted in increased solar costs, perhaps the highest ever. According to a Solar Energy Industries Association report from last year, some aspects of the solar industry experienced a price growth of 18%. 

Across the board, the solar panel installation price has gone up by 30%. 

One of Australia's largest solar panel installation companies reported that their supply agreement with the panel brand they cooperate with has increased by 50% in the last three months.

It also appears that having a fixed-price supply agreement is no guarantee, as Chinese manufacturers are canceling those deals and offering new, higher pricing, despite the threat of a lawsuit.

solar panel

What is Causing the Price of a Solar Panel to Increase? 

  • Solar panels are being produced less often than before; since mid-August, the Chinese energy crisis has caused the price of coal on the Zhengzhou commodity exchange to double, resulting in higher electricity prices. Subsequently, factory power outages might cause a 30% delay in energy-intensive industries like solar panel production companies. As a result, solar panels are in limited supply worldwide.
  • Increases in solar panel component rates - Covid-19 resulted in a reduction of producing some important solar panel system components. Rising prices have been particularly evident in polysilicon, solar glass, and aluminum. Now, the price increase is being reflected in the solar panel cost. 
  • Increase in shipment cost from China - In 2020, the shipment cost for panels from China would be $3,500. In November of 2021, they were reported to cost around $12,000. And as China manufactures nearly 90% of the world's solar panels, the increase in shipment cost rate affects the whole world, causing the solar panel price rate to rise.
  • Supply-demand mismatch - Another key factor that leads to the rise in solar module prices is a supply-demand imbalance. The growing demand for solar is driven by the demand for cheaper and more eco-friendly energy sources, corporate emission reductions, and Net Zero emissions worldwide. In a situation where demand exceeds supply, the price of the related product rises.

What Does Solar Panel Tariff Investigation Have to Do With Increased Price Rates? 

An inquiry by the US Commerce Department led to an investigation of whether solar manufacturers utilized companies in Southeast Asia to avoid American taxes on Chinese imports. The investigation might impede the ambitions of some utility-scale developers and installers.

Some solar panel components manufactured in Cambodia, Malaysia, Thailand, and Vietnam could face the same export control imposed by the investigating agency on Chinese manufacturing companies. In October 2021, the four nations made-up 85% of all solar panel shipments into the United States.

According to experts, broadening tariffs might worsen pricing and delivery delays, which already negatively affect the solar industry of the United States.

Research released on March 10 by the Solar Energy Industries Association and Wood Mackenzie states that manufacturers of solar projects have already canceled at least 5% of their intended production for 2022 and delayed at least another 8% until 2023 or later. This can lead to the supply-demand mismatch factor discussed above, which will lead to having a more expensive solar panel for sale. 

 

solar panels

It is the Perfect Time to Go Solar!

While solar panels are still affordable, you should take this opportunity and go solar. It is important to find the top solar panel company that'll provide you with trustworthy and affordable solar solutions. One of those solar panel companies is AMECO Solar and Roofing. 

AMECO began its operation as a solar panel company in 1974 and, since then, has been the epitome of excellent customer service and first-rate installation work. 

Throughout 48 years of work, we have put our belief in technology and the benefits it provides, creating the top-performing solar panel system. As the industry evolves, we continue to expand our knowledge and sharpen our skills so we may provide you with quality solar panel installations.

AMECO Solar and Roofing makes sure that the transition to go solar is a smooth and stress-free process. Our professional team of installers considers our customer's needs, expectations, and concerns and provides personal customer service to every one of them. Even after the installation process is complete, our customer service team is always ready to assist our clients in case they have any questions or concerns. These are the top qualities of the best solar panel company.  

Don’t lose the chance to go solar now, and contact us at (562) 633-4400! 

Ready to shed some light on your next solar project?