Over the past decade, solar has seen incredible growth in the US, thanks in part to tax incentive programs and declining costs of solar equipment. This trend of declining costs has continued largely unabated, resulting in the perception that solar will inevitably become increasingly affordable with each passing year. While the costs of solar may continue to decline over the long-term, inflation in commodity prices over the past year is challenging this narrative.
A recent article by Bloomberg highlights the reality that the solar industry is not being spared in the current commodity price uptick as the price of essential solar panel-inputs continues to increase. As described in the article, after a 90% decrease in the price of solar over the past decade, the price of solar has reversed its trend, increasing year to date by 18%.
You might ask, “So what’s really causing this recent price spike?.” We need to return to the earth, literally, to answer this question. As described in the Bloomberg article, polysilicon, the base material for solar cells, while abundant, is experiencing a supply and demand crunch. Manufacturers of polysilicon have been unable to produce the supply needed to match demand as the world transitions out of the COVID-19 crisis. Prices of copper, steel, aluminum, all essential for solar panel production, are up, not to mention increased freight charges. Even inverter manufacturers are anticipating decreased shipping volumes due to the current semiconductor shortage.
At AllEarth Renewables, this news does not come as a surprise. It’s part of our core philosophy to embrace and adjust to changing realities, while expanding our vision of a green energy future. We have built our business to be resilient around external changes, providing a range of unique options to new and existing customers to match their unique needs and circumstances.
For existing solar customers, now is a great time to consider an upgrade, what we call a “RePower.” We have maintained a stock of high quality, new solar panels, which we can swap for your existing panels, increasing production by around 30-40%. If you are currently using or expect to use more energy than your solar tracker is producing, or simply want more from your array, now is a great time to explore this option.
For new customers, we offer both new and refurbished solar trackers and ground mounted solar arrays. And for anyone who is not yet ready to take the leap and purchase a solar system, our solar Purchase Power Agreements (“PPAs”) and Community Solar Program provide flexible and no-upfront cost options to start your solar journey.
While the world continues to face rising inflation, whether transitory or here to stay, you have options right now for joining the solar revolution, through AllEarth’s various solar solutions. To get started give us a call at 802.872.9600, reach out by email at email@example.com, or show us your interest by filling out the “Get Started” form below.