Within just the last five years, demand for residential solar power has grown dramatically — and 2015 was the biggest year yet. Demand in 2016 is shaping up to be even stronger. If you haven’t taken steps to get your share of the solar-powered homes market, this year may be the time to get started.
Thanks to increasing affordability and consumer awareness, residential photovoltaic (PV) and concentrated solar power (CSP) systems are rapidly gaining popularity. Research from the Solar Energy Industries Association (SEIA) predicts a 119 percent growth in total solar capacity in the US in 2016. That means some 16 gigawatts of solar power will be installed across the country. By 2020, that rate could triple to reach 100 gigawatts.
Consumer interest in green energy and cost savings aren’t the only factors driving this boom. The extension of the federal Residential Renewable Energy Tax Credit in December 2015 is another major influence. The credit allows the buyer to claim 30 percent of a solar array’s cost until 2019. After that, the credit will taper off until it remains fixed at 10 percent from 2022 on. SEIA experts predict without the extension, total installed solar capacity would have dropped by 64 percent in 2017.
Maximizing Your Opportunities
Naturally, demand for solar power isn’t equal everywhere. You’ll find strong interest in Denver, Phoenix, Washington, D.C., and all around California. On the other hand, in Texas, where no incentives are available, consumers give little thought to solar.
Overall, just 12 percent of prospective home buyers rank solar power as an important consideration, according to a National Association of Realtors survey from 2014.
That may not sound impressive, but demand for solar installations already exceeds current supply. To tap into the solar-powered homes market and win over buyers who are still undecided, buyer education is essential. Take time to outline your clients’ options, address concerns regarding reliability and aesthetics, and explain how to apply for the tax credit.
For more information on how you can profit in the solar-powered homes market, contact the construction leads experts at Construction Monitor today.