Business intelligence agency Enverus predicted U.S. solar panel installations will reach 47% of households by 2050. This forecast is up from 41% six months ago. By 2030, 13% of U.S. households should be powered by solar, and 29% by 2040, according to a review of the report by UtilityDrive.
The major driving force in this acceleration is the rising cost of electricity from other sources. As that gap widens, the potential savings of solar increase. California and Arizona already enjoy a net billing tariff, which should help push solar to majority status by 2026. Conversely, states with lower utility costs and less generous tariff arrangements will be slower to switch. Utilities will ultimately benefit from the transition, explains Enverus analyst Kevin Kang.
"If retail power prices go up and people are installing more solar, you will have less residential load, but that will be eaten up by data centers in the long-term. Consumption is going to grow."
🗣️ If you were to install home solar panels, which of these factors would be your primary motivation?
🔘 Energy independence ⚡
🔘 Lower power bills 💰
🔘 Helping the planet 🌎
🔘 No chance I ever go solar 🚫
🗳️ Click your choice to see results and speak your mind
The more solar panels we have, the less we need to rely on fossil fuels and their pollution to keep our grid humming along. Besides sustainability, the switch to solar provides great long-term savings and energy independence. If you're curious about how much money you could save, check out this handy solar power savings calculator.
There are still some hurdles to widespread solar adoption.
Kang identifies the upfront cost of solar installations. Sometimes the financing is even more expensive than the installation itself. Even with major long-term savings, cost isn't the end-all, be-all. Other reports point out the challenge in trusting solar service providers. Meanwhile, energy utilities will have to make adjustments for a grid that will hit peak load later in the day when sunlight isn't available.
"It's a huge question," Kang said in regards to the power grid at night. "What is the generation mix going to look like?"
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