Is Solar a Good Investment During a Recession? Another recession is right around the corner and if you are considering going solar, don’t make any decisions until reading this article.
Well, inflation is putting stress on everyone’s budget. In 2022, we have reached an inflation rate of almost 9% and its only June. Gas prices in Texas have risen to an average of almost $5 per gallon, the cost of energy is going up across the board and even residential propane is up a dollar per gallon from this time last year.
Solar panels are not immune to inflation. Tariffs on solar panels that were put in place by the White House drove up prices and impacted the supply of panels. We’ve seen some of our popular panels on backorder for months along with the price increasing by almost 40% just this year alone. However, the administration finally did something about it by temporarily lifting the tariff on four of the countries that supply the US with solar panels. Although the solar industry has been impacted by inflation, it is an entirely different type of product which makes it more resilient to inflation and the coming recession.
Between the cost of food, gas, fuel, and the pending recession, you may be wondering is solar a good investment during a recession? In a recession, homeowners and consumers are anxious about controlling costs. Unpredictability in your monthly budget is scary and an unfortunate reality when living through a recession. Utility bills go up, then way up, then back down again, then up again. Gas, food, housing, energy is all going up and quickly. Solar helps offset some of these worries.
Solar allows a homeowner to lock in their energy rate for the next 30-years. How? In purchasing solar, either with cash or through financing, you have control over your energy costs and your energy future. Even when financed, the monthly payments are a fixed cost, meaning the payments do not keep going up or spiking during times of inflation, war, or market uncertainty. Here’s a question, if your local utility were to offer you a deal that locks in your electric rate for the next 30-years, would you take it? Yes! You’d be crazy not to take the deal… that’s what solar provides you, a fixed price for electricity that also adds value to your home as an asset.
When you go solar you not only have control over your energy future, but you now have more control over your monthly budget. You know what you are paying for power not only today but for the next several decades. As prices continue to rise for everything, your energy cost never will because you went solar
Texas Grid: Heat, Drought & Wildfires
Do not forget that we are seeing record temperatures across Texas right now, which means power outages, rolling brown outs and black outs. Record drought is causing dry conditions leading to fires that disrupt the grid even more. With so much insecurity around energy costs, power reliability, and water, now is the perfect time to go solar. Do not wait for things to get better, because they won’t, at least not anytime soon. The 26% federal tax credit is going away at the end of this year so do not hesitate, now is the time to go solar.
Contact us at All Solar Texas and we will walk you through your options and help give your family the energy security that they deserve.