While most people know that solar is good for the environment, what is seldom discussed about the technology is why solar power is important to both homeowners and the US economy as a whole. In the last ten years, solar installations have grown at a rate of 59% annually in the US, creating an economic engine that is helping people save money and creating thousands of jobs.
So it’s clear that the industry has become an essential part of the US economy, but the question remains as to how and why it has become so important. SuperGreen Solutions of Charleston takes a look at what has been powering the industry and the reasons it has become such a critical part of our economy today.
Reinvestment Through The Federal Solar Tax Credit
A large part of solar’s rapid growth has been due to the Federal Solar Investment Tax Credit (ITC) as an incentive to make the switch to solar. This law has been a great incentive that has allowed hundreds of thousands of homeowners to reinvest in their home, paying themselves for their solar instead of having to pay the government the average $5,000-$6,000 payment that is 30% of the average system.
Financial Savings for Homeowners
With both the Solar ITC and solar installation heading more mainstream, an increasing amount of homeowners have woken up to the benefits of solar power at home. While some may claim they install solar for the environmental benefit, most homeowners are making the switch for the financial savings that solar installation presents. Solar helps homeowners produce their own power from the sun, which allows them to use less power from the utility company.
More Savings = More Spending
As a sort of trickle-down effect from solar savings, homeowners will have a more disposable income to spend on other good, that, as a net effect, will benefit the economy as a whole.
Helping the Auto Industry
Many homeowners are using solar to power their electric cars as well, which has no doubt sparked an increase in electric car sales as well. Data indicates that there is a strong correlation between electric vehicle ownership and solar ownership, a recent poll finding that approximately 28-40% of electric car owners also have solar at home.
Powering an American Job Growth Machine
Due to the recent wide adoption of solar, there is now a huge demand for solar installers across the nation. Over the past few years, the solar industry has created more jobs in America than almost any other industry, with about 51,000 new employment opportunity in 2016 alone. This increase has risen solar jobs to about 260,000. Studies show that this growth is expected to continue and that solar installer is set to become the fastest growing job in America in the next ten years. Solar installation jobs pay well and typically provide full-time hours, so they are providing and will continue to provide great jobs for our middle class.