Thinking about solar installation, but unsure whether you should buy now or wait for new solar technology? You’re not alone. This is a common question that we are asked, and the answer, in our opinion, is no.
There are three major reasons why, which we will discuss in the sections below.
The Cost of Waiting is Greater Than The Value Gained By Waiting
What we mean by this is the money that you save if you wait for slightly more efficient panels to hit the market, you will likely spend more money on electricity over that period of time than you would have saved if you had installed solar panels today.
Improvements in solar efficiency have been steady, but slow. With the average homeowner spending well over $100 per month in electrical bills, solar panels would have to see a significant increase in efficiency to outweigh the money that could have been saved by installing solar today.
Additionally, solar prices are currently at their lowest levels ever. Contrary to popular belief, they are unlikely to continue the drastic price declines. In fact, many industry analysts believe we may be at the bottom for solar panel prices because the materials used in commercially produced solar panels do not have much room to decrease in price while maintaining profitability. Any significant decreases in panel production costs would come in the form of completely new technology that utilizes more efficient or cheaper materials.
Many solar industry analysts expect solar prices to remain flat or trend upward in the coming years.
Solar Technology is Mature and Major Breakthroughs Are Not Likely Short-Term
Although a lot of research is being put into solar energy production, there are no major technological breakthroughs on the immediate horizon. Some technologies like solar shingles are growing in popularity, but these do not represent a significant shift in the industry. In fact, aesthetics aside, they are a less lucrative investment than traditional solar panels due to significantly lower efficiency levels and shorter lifespans.
Other technologies like multi-spectrum solar panels, advanced composite solar panels, or high-efficiency panels are nowhere near commercialization stage and it could be years or even decades before they are commercially viable.
Labor Cost Increases
As the cost of living increases, so too will the cost of labor. Labor costs represent a sizable portion of any solar installation project, so there is a good chance that waiting will lead to an increase in solar installation labor costs.
Right now, solar costs have never been lower, labor costs will never be lower, and incentive programs will never be better again. We believe that the costs of solar are perfectly aligned and an exceptional investment in your home.
Want to Learn More About Solar in San Diego?
If you are considering installing solar and want to learn more about solar installation in San Diego and the surrounding area for your home or business, give us a call or fill out a contact form on the right. Our solar technicians can discuss the options that are available to you, assess your home’s solar potential, and even provide you with production and return on investment estimates!
Contact us today to get started!