Estimated read time: 4-5 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
With names such as Tesla, Apple, Google and Berkshire Hathaway investing big money in solar technology, are we likely to see major advancements in solar technology? And what will happen to the 30 percent Solar Investment Tax Credit at the end of 2016 when it is set to expire?
KSL Local recently sat down with Intermountain Wind & Solar, Utah's largest commercial and residential solar installer, to answer these questions.
What does Tesla have to do with the present and future states of solar technology?
The cost of solar has come down tremendously over the past few decades. Much of this reduction in cost has come because of improvements in the efficiency of the solar cells themselves.
Many put off investing in solar because they believe that costs will continue to come down. The truth of the matter is the technological advancements are more likely to come in the areas of power storage rather than panel efficiency.
"We are at somewhat of a plateau as far as the efficiency of the solar panels themselves. The big advancements in solar are going to come in our ability to store the power produced," says Doug Shipley, CEO of IWS. "Our recommendation would be for people to move forward with getting a system installed now, while the cost per watt is low and the tax incentives are still high. Battery storage is something that can be added on at a later date as those technologies improve."
Earlier this year, Tesla introduced its Powerwall™ battery unit, which could be a step toward making battery storage more affordable for those with rooftop solar systems, while allowing the grid to handle more solar installations.
As companies such as Tesla continue to invest in clean solar technology, the future of solar technology is bright.
What should I know about the expiration of the 30 percent Federal Solar Investment Tax Credit?
The federal tax credit for renewable energy products is set to expire at the end of 2016. This tax credit of 30 percent is non-capped and covers the full installation cost including any extra roof or structural work that may be needed.
Using the full installation cost as the basis for the tax credit can rapidly increase the ROI of a solar investment for both homes and businesses. What will happen to the incentive remains to be seen, but it is unikely it will be renewed at that level.
"We are expecting the federal incentive to go to something much lower, like 10 percent, after it expires at the end of 2016," Shipley says. IWS expects there may be a panel shortage in 2016 because of the demand for solar projects, making it wise to consider moving forward with installation this year.
What can be expected in the future, for solar energy?
At this point, solar power in Utah is increasing and shows no sign of stopping. Over 10 megawatts of solar power were installed in Utah last year. Over half that solar power was installed by Intermountain Wind & Solar through the Intermountain Community Solar Initiative, a bulk purchasing program that saves customers thousands by pooling their purchase power.
For most of these Utahns, Shipley says the decision to go with solar power is about self-reliance and independence. "It's an economic decision," he says. "The environmental benefits are a plus, but it comes down to investing in future savings."
During these hot summer months, many are dreading the arrival of their power bill, but for those who have solar, getting those power bills is an exciting event.
"I'm kind of anxious to get that $9 power bill each month," says IWS customer Sam Raby, who owns a rooftop solar system. "I'm running my house cooler this summer than I ever have in the past, and I'm still building credits."
Some of these customers have opted to be part of the ICSI Solar Home Tour for Salt Lake County on July 17, 18, 31 and Aug. 1. Over 30 homes are available on the tour for those interested in seeing solar systems on real homes and speaking with homeowners. More information about the solar home tour and the bulk purchase program can be found at UtahSolarHomeTour.com. The deadline for the bulk purchase is August 14th.
