Spotting the Top 5 Biggest Trends in Solar Power in 2021 can be difficult, but knowing what’s coming can help you be prepared well in advance of the general public. That’s why we put together this detailed list of the biggest trends we see coming so you can prepare wisely. Each trend we see is based on our intricate and detailed knowledge of an industry that seems to change daily, so you can be sure this list is not an exhaustive one. (You can check our podcast “Straight Talk Solar Cast” if you want the most up-to-date information.) This list of stories in 2021 is ever-changing and expanding, so please check back often. If you find another trend that should be listed here – or one that should be removed – please let us know!
1. Extend the 26% Federal Tax Credit Ongoing
Trend: The United States Congress has passed a major budget bill that includes $35 billion in energy research and development incentives, a two-year extension of the Investment Tax Credit for solar power, a one-year extension of the Production Tax Credit for wind power projects, and an extension of offshore wind tax credits through 2025 — an important last-minute boost for the clean energy industry.
Key Points: The bill’s support for energy research, growth, demonstration, and commercialization is the first major energy legislation in a decade. Although it does not enable the Biden-Harris administration to eliminate carbon emissions, it does allocate billions of dollars over the next five years to promote technical advances in solar and wind energy, energy storage, geothermal power, marine energy, grid modernization, energy conservation, nuclear power, and carbon capture, utilization, and storage.
Impact on the Consumer: The tax extensions included in the bill would also support wind power. The Production Tax Credit for wind power projects, which is typically claimed by onshore developers, will be kept at 60% for projects that start construction by the end of 2021, rather than being reduced to 40% as required by previous legislation. In the absence of future legislative amendments, the PTC will be eliminated in 2022.
2. Increased Rebates for Battery Storage
Trend: Battery storage will give you more control over your home’s power, allowing you to keep critical devices (like medical equipment, refrigeration, air conditioning, electric heating, lighting, and electric well pumps) going even when the power goes out. Customers may experience more frequent outages as a result of PG&E’s need to reduce wildfire risk through Public Safety Power Shutoff (PSPS) events. PG&E will help you decide if battery storage is right for you and how to go about getting it for your home.
Key Points: PG&E offers rewards when you purchase a battery storage device through the Self-Generation Incentive Program (SGIP), with increased incentives if you are more vulnerable to power outages (as long as program funds are available). If you live in a High Fire-Threat DistrictOpens in a new Window, incentives can cover the entire cost of a battery. or have been shut off more than twice in a PSPS case AND meet one of the following eligibility requirements:
- Have incentives reserved in the income-qualified solar programs (SASHOpens in the new Window. or DAC-SASHOpens in the new Window.)
- Medical life support equipment should be used.
- To be qualified, you must meet certain income requirements.
- Use an electric well pump to get water.
Impact on the Consumer: During power outages, batteries can provide backup power and help you control your energy consumption to save money. A battery allows you to use some of the power produced by your solar system if you have it.
3. More Incentives for Electric Vehicles
Trend: A federal income tax credit of up to $7,500 may be available for all-electric and plug-in hybrid vehicles purchased new in or after 2010. The credit sum will be determined by the capacity of the vehicle’s battery. Incentives from the state and/or local governments may also be available. This credit does not apply to small community electric vehicles, however they may be qualified for another credit.
Key Points: A tax deduction lowers the amount of money you pay in taxes. A $2,000 deduction, for example, will decrease the taxable income from $50,000 to $48,000. As a result, you’d pay taxes on $48,000 instead of $50,000. As a result, you’ll just save a portion of the $2,000 deduction.
A tax credit lowers the amount of income tax you owe overall. For example, if you owe $10,000 in federal income tax, a $2,000 deduction will reduce your tax liability to $8,000. Your real savings for a loan would be $2,000.
Impact on the Consumer: If a customer leases a qualifying car, the leasing company can claim the credit.
4. Elimination of Natural Gas Appliances
Trend: Top energy executives in California will soon decide when natural gas flames will be put out in new houses. As the California Energy Commission repairs state codes of construction for energy-efficient homes, a seismic step toward the omission of some gas home appliances is taking place. It is an enhancement of state mandates for solar panels in all new homes from last year. The agency is now scheduled to strict natural gas rules on household heaters & boiling water, which will be updated in 2023.
Key Points: California generates approximately 10% of greenhouse gas emissions by using natural gas in buildings. This is why the state has been injecting climate efforts in California. The long-term effects are not good. Instead of a total natural gas ban on new homes, officials will probably use incentives to encourage developers to select electrical heating options, such as water heaters. There is a need to provide the marketplace the time to adopt before making it a mandate.
Impact on the Consumer: Consumers save money because electrification is less expensive than the use of natural gas for appliances.
5. Increase in CryptoCurrency Mining
Trend: The world of cryptocurrency recalled the crypto-mining boom and whether it had now ended. F But soon the concern was wiped away as big companies registered with Nasdaq showed a clear interest in the extraction of Bitcoin (BTC). The sharp rise in mining this year is linked directly to the considerable rise in costs of cryptocurrency.
- Bitcoin can be purchased at just over $10,000; it’s now well over twice the cost.
- There is no retreat behind Altcoins.
- This month Ether (ETH) got the mark $650.
- Recently, Litecoin (LTC) was over $117, though it could only be purchased for $41 six months ago.
Key Points: About increasing crypto-currency prices and the thrill of mining equipment, there is a possibility that in 2021 the business sector will start no worse than in the past year. Here is a list of the mining requirements for those who have decided to put together mining rigs alone.
- Motherboard and GPU Cards
- Great internet connection
- Strong power supply
- Accommodation with air conditioning
Companies are offering unified platforms for those who do not want to go through the complex topics of designing a mining system, GPU card choice, and so on.
Impact on the Consumer: People are experienced and willing to face market shocks and adjust to any circumstance in the cryptocurrency world.
Frequently Asked Questions
1. What are your procedures for ensuring a contactless installation process?
Solar is installed on the roof or the ground, and we already observed social distancing procedures. Our crews wear safety equipment including Personal Protection Equipment to prevent the spread of COVID-19 not only to our clients but also within our crews.
2. How is the sales process if we cannot meet in person?
With just a few pieces of information about your solar project, we can design an online solar proposal for your review. We then set a time to review the proposal by phone or Zoom to answer any questions you have. The financing process is paperless and contactless, any hard copies are sent by Priority Mail/FedEx. All of the contracts and disclosures are contactless using e-signatures.
3. How is the permit process contactless?
Many jurisdictions are starting to allow online permit applications and communication is facilitated by email. Final inspections are still completed in person, but social distancing and PPE are used to prevent the spread of COVID-19.
4. How do we ensure our installation crews are COVID-19-free?
Any of our installers who show up to work with an elevated temperature, coughing, fever, or other sickness, are sent home until the symptoms have subsided.
5. Where can I find more information about COVID-19 and the Solar Industry?
Please check with the SEIA (Solar Energy Industry Association) on all of the latest developments and safety protocols in the solar industry.
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