A Possible Explanation.
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.
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 in the United States, now than ever before, 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.
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.