American homeowners are expected to install a record 5.6 gigawatts of residential solar in 2022, according to a new analysis from Bloomberg NEF (BNEF).
BNEF found that 2022’s record US residential solar installations will be nearly three times that of the 1.9 GW of commercial solar installations expected this year.
Both residential and commercial solar installations are predicted to grow steadily through 2030, and with residential solar outpacing commercial solar every year. BNEF predicts that 2030 will see 8.3 GW of residential and 4.3 GW of commercial solar installed.
In May, Electrek noted that, according to a poll, American residential solar was installed for the following reasons:
- To benefit the environment: 60%
- Energy security: 54%
- To reduce energy bill: 52%
- To reduce energy reliance: 49%
- Tax credit/rebates: 37%
- To shade roof: 29%
- To be off-grid: 28%
BNEF cites surging electricity prices and Inflation Reduction Act tax credit extensions as the reasons for accelerating residential solar adoption.
Residential solar tax credits are currently at 26%, and they rise to 30% for solar equipment placed in service after January 1, 2023. The tax credit then falls to 26% for 2033 and 22% for 2034.
Americans are opting for rooftop solar and battery storage because, despite inflation and supply chain problems, solar and storage comes out cheaper than paying utility companies, especially as electricity bills rise. They also want to reduce reliance on the grid in the face of extreme weather.
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