Earth Day is fast approaching, and it’s time to start thinking about how to generate clean energy. In 2022, the solar energy industry achieved new milestones. This included new legislation as well as solar installations reaching a record high. There are more exciting developments on the horizon.
Solar energy has been a huge success despite the obstacles it faced in the past year. These included the uncertainty of the economy, inflation, and the short-term shortages of panels.
We’ve compiled a list of the most important solar energy developments in 2022 to celebrate Earth Day 2023.
NEW LEGISLATION BOOSTS SOLAR POWER ADOPTION
In a sign of bipartisanship, Congress passed the Inflation Reduction Act in 2013. The IRA increases the federal tax credit on solar power from 20% to 30% up until 2032. The IRA reduces the costs of solar power installations and speeds up the payback time. A homeowner, for example, could offset $7.500 in taxes from a $25,000 project.
Without this change, tax credits would have remained at 26% in 2022, dropped 23% in the following year, and vanished entirely in 2024.
Credit is not limited to the generation of electricity. This credit also applies to battery storage equipment that does not need to be connected to a solar system.
The IRA also offers other benefits:
- Commercial solar power
- Solar power system and component manufacturing in the United States
- Heat pumps, water heating systems, new windows, and other utility improvements
The IRA will have a long-term impact on the solar industry, primarily by accelerating the growth and spread of solar energy.
SOLAR POWERS HOMES IN NATURAL DISASTERS
Extreme weather events last year challenged the country’s power grid. Home-based solar installations and batteries provided power to those who were without electricity.
In California, for example, rooftop solar charging provided 340MW of power to the local grid. It was able to avoid blackouts in the 2022 record heat wave. This power is equivalent to the capacity of a coal-fired midsize power plant. According to the California Solar and Storage Association, more than 80,000 residential batteries are connected to California’s electric grid. This is more than 340 megawatts.
Hurricane Ian in Florida knocked out power for several weeks. The power in the Fort Myers community was stable due to solar energy. This community was able to provide shelter and power to hurricane victims.
The natural catastrophes illustrate the resilience of solar energy and its added security.
RENEWABLE ENERGY BEATS COAL-POWERED ENERGY
The U.S. Energy Information Agency (EIA), a U.S.-based agency, predicted that by 2022, wind and solar energy would surpass coal and nuclear electricity production. This was proven to be true.
The EIA also reported that solar, hydropower, and wind power would provide around 22%, up from 20% in 2021, of the nation’s total energy needs in 2022. In 2021, coal-generated electricity accounted for only 20% of energy consumption and production in the country. Power from coal is decreasing, while power from renewable sources is increasing. The EIA also expects U.S. Solar capacity to double in the next three months.
The U.S. has approximately 77 GW of solar power. Projects scheduled between October 2022 and September 2025 could provide an additional 72 GW of power. We can look forward to some future green Earth Days!
This is the largest amount of power generated by any renewable source. The wind is the next closest, with 18 GW in high-probability power generation.
SOLAR INSTALLATIONS REACH ALL-TIME HIGH IN Q3
Commercial and Home Solar Installations have had a historical quarter in the U.S. 45% of new electricity generation came from solar installations – this is more than other electricity sources.
In order to explore this further, we can see that the residential segment experienced a 43% rise in additions of Solar in Q3 2020 from Q3 21. The Q3 solar market increased by 16% compared to Q2 in 2022. Earth Day is getting greener every year!
Installations of commercial solar have risen 3% annually. And increased by 10% quarter after quarter. Solar additions generated 340 MW DC in Q3 2022.
California is still the leader in solar energy. According to SEIA, 36% of the Q3 residential additions were in California. Texas isn’t too far behind and currently ranks first in the country for wind and solar combined renewable energy.
HIKES in ELECTRICITY PRICES SHOW SOLAR VALUE
The dramatic increase in electricity rates for 2022 shows how solar energy can save you money. Grid-sourced electricity prices increased by 16% on average in 2022, the highest increase in over 40 years.
Some states saw far greater increases. Massachusetts, for example, saw a rate increase of 64%, and Connecticut saw 50%.
These rapid rate increases highlight solar’s ability to reduce costs and provide more predictable bills. The savings in energy costs and the predictability of bills can reduce spending by up to tens or even thousands of dollars during the average 25-year life of a solar panel.
Note: Check out our Solar Potential Calculator for your solar savings potential based on geographic location, environmental factors, and more.
GENERATE CLEAN ENERGY EARTH DAY AND BEYOND WITH FREEDOM SOLAR
Investing in renewable energy is the best way to reduce your carbon footprint. Solar energy is a great way to save money and help the environment. Our energy consultants can provide you with information on the different financing options available for homeowners or businesses.
Going Solar may not be as hard as you think, at least when it comes to Freedom Solar. We offer one-on-one consultations with our experts to help you choose the best SunPower Solar panels or solar power systems for your home.