Greater than half of the electrical energy producing capability added to the US grid in 2023 was solar energy, in line with a brand new report launched by the Photo voltaic Vitality Industries Affiliation and Wooden Mackenzie. That is the primary time in 80 years that renewable power sources accounted for over half of the additions to grid capability in america.
The photo voltaic trade attributed the expansion to the numerous incentives included within the federal Inflation Discount Act. This was the primary full yr for the reason that passing of the IRA, which carved out almost $369 billion in federal funding for funding in manufacturing and manufacturing of fresh power applied sciences, in addition to a main tax credit score for the set up of rooftop photo voltaic panel methods.
The yr wrought challenges for the photo voltaic trade as nicely. California’s photo voltaic market was crushed (contracting 75% by some estimates) below a brand new, extra restrictive internet metering coverage. Excessive rates of interest made financing photo voltaic panel methods exhausting for residents throughout the US, and studies circulated late within the yr that some photo voltaic firms had been teetering on the sting of chapter.
With photo voltaic payback intervals doubtlessly rising in key states, it is unsure whether or not rooftop set up will stay fashionable — or if photo voltaic leases, energy buy agreements or group photo voltaic applications will develop of their stead.
A sunny forecast for solar energy?
In accordance with the SEIA and Wooden Mackenzie, photo voltaic capability is anticipated to have the ability to energy 100 million houses by 2034.
“If we keep the course with our federal clear power insurance policies, whole photo voltaic deployment will quadruple over the following 10 years,” mentioned SEIA president and CEO Abigail Ross Hopper.
The photo voltaic trade additionally stays cautious in regards to the end result of this yr’s elections. A change in administration in Washington may dramatically shift the federal authorities’s favorable view towards renewable power.
State photo voltaic adoption in 2023
Greater than half of the US states have greater than a gigawatt of put in photo voltaic capability, however there have been clear shifts in how nicely some states supported photo voltaic installations in 2023.
Texas put in probably the most photo voltaic technology all year long, including 6.5 GW of photo voltaic capability to its grid. It was the second yr in a row that Texas invested extra in photo voltaic power than California did, and this development will doubtless proceed as California’s internet metering adjustments tank the photo voltaic trade within the state.
Colorado and Ohio each reappeared within the SEIA and Wooden Mackenzie listing of the highest 10 states with probably the most photo voltaic installations for the yr — the primary time both state has made the listing in a decade. Wisconsin appeared within the prime 10 for the primary time ever.
How the Inflation Discount Act may also help you go photo voltaic
The residential clear power credit score expanded and prolonged by the Inflation Discount Act helps make photo voltaic panel methods extra reasonably priced.
The tax credit score covers 30% of the price of photo voltaic panel set up, in addition to sure different clear power additions made to present houses. The credit score is claimed towards your taxable earnings when tax season rolls round.
The federal tax rebate stacks additively with any state-level tax credit, which may considerably ease the monetary burden of switching to photo voltaic power in some states.
Claiming the federal credit score is comparatively simple. First, undergo along with your photo voltaic set up. The next yr, while you’re submitting your taxes for the yr that the photo voltaic array was put in inside, you are going to fill out IRS Kind 5695, Residential Vitality Credit. When your taxes are filed, the credit score will cut back the quantity you owe for that yr.
Different clear power incentives can be found by way of the Inflation Discount Act, together with an power environment friendly residence enchancment credit score that covers energy-efficient furnaces, air conditioners, warmth pumps, warmth pump water heaters, insulation and extra.
