High Inflation rates, which for most born after 1990 is an almost unknown concept, Is top of mind for everyone now, and for good reason.
Such anger is plainly justified. The money crunch left in the pandemic’s wake is creeping into all corners of our life. According to recent reports from the Bureau of Labor Statistics, gasoline is up close to 60 percent, new vehicle prices increased by 11.4 percent, and food prices climbed by more than 10 percent, all within the last year. As for energy prices, those have truly shocked the system, with an increase of nearly 42 percent in the last year.
And while the supply chain disruptions that caused this jolt to the world economy won’t last forever, there’s no guarantee that prices will return to predictable levels anytime soon. So, what are consumers to do? Well, for starters, you could consider investing in alternative forms of energy, such as a grid-connected solar system.
Solar Energy In Light of Inflation
While it is generally understood that installation of solar can drastically reduce or even eliminate monthly energy bills,what is more important is that it is a solid and dependable hedge against utility rate inflation. Systems last for thirty years, which means the lucky owner who installs solar today won’t need to think about utility rate inflation until 2052!
For owners of electric vehicles (EVs) charging your car from your roof means not ever having to care about gas prices either! This means solar provides its owner with a cash positive investment with a guaranteed return.
A solar installation can still bring your electricity bills way down. This will always be the reality with solar panels. But there are a slew of collateral benefits at play when talking about the reasons to install solar panels, with two in particular being most prominent: tax incentives and net metering.
First, we have tax incentives. Taxpayers can claim a Federal Income Tax Credit (FITC) of 26 percent for qualified expenditures on a solar energy system that provides electricity to their residence (owned and lived in by the taxpayer). That 26 percent tax credit extends through 2022, but is scheduled to drop to 22 percent in 2023 and expire at the end of 2023.
A solar installation can still bring your electricity bills way down. This will always be the reality with solar panels.
Most importantly, there’s the previously mentioned net metering. Delaware’s net metering law is a real plus for the state’s solar energy customers. Net metering is a system in which solar panels are connected to a public utility power grid, and any surplus power generated by panels is transferred to the grid, which allows customers to offset the cost of power drawn from the utility.
The First State’s clear and uncomplicated net metering law helps you reduce the amount of energy you need to purchase from your utility and lowers your monthly electric bill, as your system will often produce more energy than you need to run your home. Any excess power you accrue is sent back to the grid and that amount of energy is deducted from your monthly bill or credited toward a future bill.
Check out this blog to read more about how net metering alters your electric bill.
Don’t Delay The Switch To Solar Energy
While solar panels will always deliver cost savings on your monthly electric bill, there are some factors at play that might give you the push you need to take the leap into solar energy. Even if you have to take out a loan to procure a solar installation, it's still very much worth the effort. Loan payments are typically is locked in for equal or less than your current electric bills, giving you immediate savings, followed by energy freedom in 10 years once the loan is paid off.
The consequences of global inflation are seeping into the world of solar energy—so, deferring your purchase of solar panels could prove costly. Across the solar industry, there’s a rapid increase in the price of some equipment, including electrical components like PVC pipe, copper and aluminum, and metal conduit.
Putting off installing solar—a week, a month, or a year—can lead to higher prices and a harder hit on your wallet.