Why the sudden drop in solar pricing!20150812_141802_resized

The reason behind the sudden drop in solar pricing is owing to an excess supply of solar panels in the marketplace. The government originally planned to end the 30% income tax credit, aka the Solar Investment Tax Credit (ITC) system, in December 2016. Solar panel manufacturers anticipated higher demand for their panels and ended up creating a massive inventory of panels. However, because the program became so successful, the government extended the Solar Credit to end in December 2021, thereby giving consumers more time to purchase! Solar panel manufacturers now carry an excess supply, resulting in prices falling by 40% from January 2016 to January 2017. It’s a sunny case of supply and demand.

The strawberry simile.

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Image Credit: Binary Tribune

Solar panel manufacturers know that with so many panels on the market, consumers want the best deal they can find. The more a manufacturer drops their prices, the more consumers will buy their products. The beginning of 2017 finds us in a situation similar to that of strawberry lovers in summer; farms grow the most strawberries between June and April, when they’re in season. Because strawberries flood the market at the time, the price for them decreases. Consumers respond by buying more than they do during the other months, when the price of a few strawberries is astronomical.

Just like consumers buy the most strawberries in the summer because they want the best deal, more homeowners than ever in the United States are installing solar panels in order to take advantage of the current low prices. If you considered solar before but decided it was too expensive, now is your chance to start reaping the electric bill savings, without paying a fortune for the panels! Does it get even better? Not only you are paying lower prices for the panels than all of the the previous years since 2005, but also you receive the 30% tax credit established through the Energy Policy Act.

The best government incentive ever.solar-panel-1175819_1920

Here’s how the tax credit works: the government will deduct 30% of the money you paid for a solar panel system. The deduction will come from your federal income tax. If you purchase a $20,000 system, you’ll only end up paying $14,000 for it, because $6,000, or 30% of the cost, will be deducted from your income tax payment.

Because the hot days of summer are coming up, now is the ideal time to go solar and save on your electric bills. You’ll no longer worry if you’re running the air conditioner too long, and instead will relax in a comfortable temperature. Aikyum Solar is happy to help you ensure maximum savings through the summer with a $500 installation credit towards your purchase of the best value solar panels. Contact us here for a complimentary professional quote.

Call Aikyum Solar at 888-9898-SUN. Aikyum Solar is a professional solar panels company providing custom design, innovative financing, installation and monitoring for homes, businesses and non-profits.

Testimonials from a few of our customers:

“The team at Aikyum is highly professional. They completed the jobs (installing solar panels at 3 different locations) in a timely fashion with the greatest satisfaction.”Orange County Solar Panel Installation | Aikyum Solar
– Vraj L.

“I have been very happy with the whole experience and Aikyum will get my unbridled recommendation in the future.”
– Arun Jain

“I reached out looking for someone to repair my system after a roof install and was incredibly impressed by how attentive Harina and her service tech Joey were in not only getting my system back in order but going above and beyond by contacting the manufacturer after the two inverters failed to operate.  I would absolutely use them again in a heart beat, for any future solar needs.  Thanks again Aikyum Solar.”
– Celso G.

“Harina patiently met with us several times to help me understand the details of solar and to suggest approaches that no other bidder had proposed.  Her installation team was punctual, courteous and efficient.”
– Carol R.

“Working with Aikyum was extremely easy and streamlined. Harina and her team took care of everything from permitting, to HOA approvals, to final notices to the city and HOA.”
– Apur L.

References: http://www.binarytribune.com/forex-academy/supply-and-demand