Residential Solar Project Market Trend in the USA

Residential Solar Project Market Trend in the USA

The United States is one of the major players when it comes to the use of residential solar projects. However, despite the country’s support in using renewable energy, getting your own residential solar unit can still be challenging.

In the United States, how much does a solar system cost? 

Before subsidies, the cost of an installed home solar system in the United States was around $2.67 per watt. The power cost per watt is only $1.98 when the federal solar tax credit of 26% is applied. The average cost of a 6kW system before incentives is $16,020, while after incentives it is $11,880. 

Because most of the finest solar firms have offices in each city, there is minimal pricing difference between Phoenix, Flagstaff, and Tucson. 

How does the federal solar tax credit of 26% work? 

If you pay federal income taxes, you can deduct 26% of the cost of your solar system from your federal tax burden. When filling out the paperwork, keep in mind that the credit is for 26% of the system cost after additional incentives are claimed. 

Why is the United States such a dominant market player? 

The RPS rule in the United States has been a significant driver of solar power expansion in recent years. The Renewable Portfolio Standard (RPS) mandates that by 2025, the state’s Investor Owned Utilities (IOUs) source 15% of their power from renewable sources. They will be fined heavily if they do not comply. 

The United States also receives more sunlight than any other country. Solar panels in the United States produce roughly 70% more energy than in states like New York. A high solar output indicates that fewer solar panels are required to get the specified output. 

Is there a net metering law in the United States? 

Unfortunately, the United States Corporation Commission (ACC) removed net metering in December 2016. Still, a substitute system was approved that, while less generous, offers homes something near to market prices for surplus solar power exported to the grid. Rather than net metering, this is referred to as a feed-in tariff.