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Challenges include:
- Building infrastructure
- The solar industry’s reputation
- Pushback from energy providers
- Installation costs
- Access for renters
The solar energy industry has experienced a surge of growth in the past decade. This growth has led to increased visibility for the industry, plus an uptick in using green, renewable energy.
On the other hand, the industry also has had its fair share of growing pains. Let’s take a look at the challenges and solutions facing the solar energy industry in 2022 and beyond.
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Solar industry growth over the past decade
In 2010, the residential installed solar capacity in the U.S. was 667 MW (megawatts). That number jumped to almost 20,000 MW in 2021, according to the Solar Energy Industries Association (SEIA). That’s a nearly 3,000% percent increase.
Solar job growth has exploded too. According to the National Solar Jobs Census, the U.S. solar industry employs over 230,000 workers as of 2020, up from around 93,000 in 2010. But despite the massive growth of the solar industry, it may not be replacing fossil fuels anytime soon due to several challenges.
Top five challenges facing the solar industry
| Challenge | Problem | Solution |
| Building infrastructure and supply chain delays | Grid infrastructure must be retrofitted to handle the influx of renewable energy. Overseas supply chain delays are also slowing down the manufacturing process. | President Biden’s clean energy plan involves a power grid overhaul for the U.S. plus solar manufacturing incentives |
| Solar industry reputation | Because of the rapid start of many solar energy companies and door-to-door sales, the solar industry’s reputation has suffered setbacks. | Find a trusted source to research reliable solar companies. Fill out the form on this page to reach a qualified installer in your area. |
| Pushback from utility and energy providers | Utility and energy providers that rely on fossil fuels do not want solar energy cutting into their profits. | Create a system where solar energy use benefits providers and energy customers alike. |
| Residential installation costs | Supply chain delays, increased demand, and rising energy costs are increasing residential installation costs. | The Residential Clean Energy Credit has been extended until 2034, giving homeowners another decade to claim this federal credit. Research other eligible solar rebates and incentives for your state. |
| Access for renters | Solar energy is hard to access for renters who can’t make permanent changes to their homes. | The increase in community solar programs allows more people to use solar energy. |
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Building infrastructure and supply chain delays
The power grid has remained largely unchanged over the past century. Now, the challenge is to make quick updates as Americans go green and the government aims to meet clean energy goals. President Biden wants to achieve a 100% clean energy economy and net-zero emissions no later than 2050.
At the same time, supplies have been delayed due to COVID and other international trade setbacks. As solar panel installations increased, manufacturers rushed to produce the panels and materials needed to generate renewable electricity.
The solar industry’s reputation
An influx of new solar companies have entered the market, and not all of them have operated with the customer’s best interest at heart. Customers speaking out about unreliable and untrustworthy business practices have negatively impacted the solar industry’s reputation.
At SaveOnEnergy, we work with top-tier companies that have a trusted background in residential solar panel installation. We do the ground work for you to offer better standards for our readers. Enter your information in the form on this page to have an energy expert reach out about solar options near you.
Pushback from utility and energy providers
The U.S. electric power industry generated 401.7 billion dollars in 2019, according to Statista. With so much revenue at stake in the power and electricity industries, utility and electricity providers are feeling the pressure of a renewable energy revolution.
Net metering allows residents with solar energy systems on their homes to reduce their energy bills by selling excess energy back to the power company. In some states, such as Florida, utility companies are lobbying for the government to limit the amount of profits residents can earn from solar.
However, as more people become energy-independent through the use of residential solar power, the reliance on traditional power companies could dwindle dramatically.
Former Duke Energy CEO Jim Rogers recognized this fact nearly a decade ago when he remarked that the rooftop solar panel market could threaten the traditional energy business, especially if the cost of solar panels and installation continued to decrease. In other words, if home solar users can generate enough power independently, they could essentially turn the power grid into a backup energy option.
Residential installation costs
Though the cost of solar power systems has decreased over the years, it’s still a significant investment. The cost of a residential solar system runs between $12,286–$45,013, with a median cost of $24,742. This high cost can be a barrier to entry for many homeowners, but there are ways to lower the overall cost, such as:
- The Residential Clean Energy Credit, formerly called the Solar Tax Investment Tax Credit (ITC), offers a 30% federal income tax credit until 2032. The Clean Energy Credit reduces to 26% in 2033, then 22% in 2034.
- State-specific solar rebates and incentives.
- Leasing solar panels or entering a Power Purchase Agreement (PPA)
Access for renters
Historically, access to solar panels for renters has been nearly impossible. Now, community solar is enabling renters to access solar energy produced in their area without making modifications to their homes. Arcadia is a reliable community solar management company that works with utilities nationwide to save renters up to 15% off their monthly electric bill by connecting them with solar energy farms in their area. Check here to see if Arcadia offers community solar near you.