Despite the headwinds faced in 2023, the US solar industry is expected to have grown 55% compared to 2022, amounting to nearly 33 GWdc of capacity. It was the nation's largest year of installed solar capacity and a clear indicator that energy efficient heating and cooling improvements are gaining in awareness and popularity. Additionally, 3.2 million Americans work in the clean energy industry and that number is only expected to rise as the number of clean energy projects increase.
The data shows the sustainable home improvement industry continues to significantly advance year after year. Take a look at a few of the trends we’re predicting in 2024.
1. Demand for solar will remain high in the long term
- Net metering and interest rates have proven challenging for the solar industry in 2023. However, the quarterly SEIA/Wood Mackenzie U.S. Solar Market Insight report growth outlook for the US solar industry remains strong, averaging 14% annually over the next five years.
- Utility rates increased 14.3% in 2022. As these rates continue to rise, homeowners will look to solar to lock in stable utility prices.
- As more homeowners look to lower utility bills, build their home’s resiliency against weather events, and decrease their carbon footprint, demand for solar technologies will continue to be strong.
2. Storage will be a vital solution
- Especially for homeowners adversely affected by net metering and export rate changes in states like California or North Carolina.
- Storage will allow homeowners to bank energy storage while energy costs are low and sell it back during peak energy usage times, getting the most out of their saved energy. By 2027, nearly 30% of all new behind-the-meter solar systems will be paired with storage, compared to under 10% in 2022.
- Storage will also be an asset for homeowners facing increased weather events, who want resiliency against power outages. For those with planned outages, being able to bank solar power during the day will be a purchase motivator.
3. Heat pump adoption will be steady
- Heat pumps surpassed gas system sales for the first time in 2022. High interest rates slowed heat pump sales in 2023, but state rebates may help boost sales for low to moderate income households.
- Heat pumps use less energy than traditional systems and can save homeowners an average of $815 per year — making them an increasingly popular alternative.
4. Inflation Reduction will continue to be a game changer
- State rebates will bring forth a new era for home improvement benefits. In addition to federal incentives like the 30% ITC increase for solar, battery storage and geothermal, state incentives include point-of-sale rebates such as a maximum $8,000 rebate for heat pumps, a maximum of $2,500 rebate for updated electric wiring and more. The amount of the rebates will vary upon state implementation and more information should be available in the coming months.
- The Inflation Reduction Act is increasing clean energy projects. According to the White House, private manufacturing and industrial construction in America is at its highest point since 1964—27 percent higher than the previous peak in 1966.
- It is expected to save American households up to $1 billion annually. However, the IRA legislation is not capped and can save homeowners exponentially more, if they capitalize on it.
Financing applied for and processed through the Mosaic platform is originated by Solar Mosaic LLC or one of its lending/financing partners. Equal Housing Lender