This month, we’ve been running a sidebar survey about what losing the federal home solar tax credit means for Electrek readers and how it impacts their solar power plans. After receiving nearly two thousand responses, here’s what you told us.
With the 30% federal home solar tax credit set to expire at the end of this year, homeowners everywhere are showing mixed reactions. And, in the case of nearly 30% of our readers, a sense of urgency. Nearly four in ten (38.7%) of our solar survey responders said that they were “deeply concerned” about the credit ending, and moving up plans to install a home solar system before the credit is gone.
That response suggests the industry could see a meaningful surge of demand in the final quarter of the year as households look to lock in tax benefits while they still can.
Another 19.2% said they were aware of the credit, but it wasn’t a major factor in their solar plans one way or the other (if you’re curious, I fall into this second category).
Meanwhile, 16.4% of Electrek survey respondents admitted they had no idea there even was a 30% federal solar credit. That fact, while frustrating, serves to highlight the need for better public awareness around both clean energy incentives, and the potential benefits to adding solar power to your home.
Interesting, but does it matter?
That said, it’s important to consider the source here. Electrek readers tend to be more educated in general than the American public at large to begin with (check out our Partner Program page for some of that demographic data), and you’re certainly more educated and informed about things like EVs, home battery backups, and – of course – solar power.
The general public? The people who don’t read Electrek, don’t follow the cimate tech blogs, and generally have no idea what’s going on in the world of clean energy incentives? Getting rid of a tax credit they don’t even know exists may not move the market one way or the other. And, frankly, I don’t think it will.
Top comment by Brian Peterson
I think that the elimination of the credit will not have a large effect because:
-Solar companies are no doubt charging more because of the incentives. Say 40% of the credit goes “in their pocket.”
-The cost of hardware will continue to fall, wether foreign, domestic…tariffed or not.
-Electricity prices will continue to rise faster than inflation, shortening ROI timeframe.
That being said, I think solar Installations would have grown with the continuation of the credit.
Now, it will hold steady in my view.
What do you guys think? Is the march towards more universal home solar system deployment already too far along to stop, or do you think eliminating the tax incentive will turn off enough people to do the industry in for good? Head to the comments and let us know.
Original content from Electrek, featured image via UCF.
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