If you’re one of the millions of Americans currently hunkering down at home, you’re probably using more electricity than normal. You might be wondering if installing solar panels is still a smart investment, given all the present uncertainty.
Residential energy rates have steadily risen by 15% over the past 10 years, one of the many reasons solar financing is justified. But what can we expect from the future?
How will Covid-19 affect energy costs?
Despite the significant increase in binge-watching Netflix shows, the overall demand for energy is actually falling during this novel crisis. Sure, your household is likely consuming more energy than normal, but those massive sports centers, concert venues, and 50-story corporate buildings are sitting in the dark.
Paradoxically, this overall decrease in demand for energy could actually lead to higher rates in the long-term.
An S&P Global report (March 19, 2020) states, “In the near term, utilities will likely see some reduced sales volumes as major sporting events, concerts and businesses scale back drastically, compounded even further by social distancing requirements being mandated or recommended by federal and local governments across North America.”
In short, utility companies will be collecting less money in the form of rates for the foreseeable future. However, their fixed costs are likely remaining about the same.
This reality could lead to large energy rate increases down the road, in order to offset lost revenue.
Unfortunately, any increase affects residential and commercial customers alike.
How to prevent this from affecting you
Installing your own solar energy system has always been a smart solution for mitigating rising energy costs. Now, it just might be one of the greatest times in history to declare energy independence and go solar.
Not only will you be putting money into an investment that has proven to pay off long-term, but you also won’t have to worry about external variables affecting the value of your investment. No matter what happens with future energy prices, or even the entire stock market and economy, you’ll be secure with a renewable energy system that’s never affected by rising energy rates. Now that’s true energy independence!
Rising energy bills, coupled with the current 26% Federal Solar Tax Credit, and we can make a strong case for going solar right now.
Ready, set, go solar!
The future is unknown. But rising energy costs are almost a certainty, especially given our current circumstances. Do something that will ensure your family (or business) is protected.
Installing Solar During Covid-19
For everyone’s safety, our team of in-house solar experts is currently working from home and offering 100% virtual solar consultations. Our professional installation crews are still able to fully install rooftop and ground mount solar arrays without compromising anyone’s safety. Schedule a consultation today to learn how much your system will cost and how much you can save over future years.