Since Palmetto joined the solar industry in 2010, a lot has changed. Technology has improved and prices have fallen.
The cost to go solar has plummeted by 40% in the last decade, annual installations continue to rise nationwide (32,358 total in 2023), and supportive policies from federal and state governments are driving millions of dollars in homeowner savings through 2034 and beyond.
Yet with scary headlines about policy changes, the effects of inflation, and bad experiences delivered by unqualified or careless contractors, you wonder whether putting solar panels on your home is more trouble than it is worth.
Going solar remains an excellent way to save money on energy costs as a homeowner in 2024 and will for quite some time. This guide outlines the trends shaping the future of home solar and the technologies that will deliver energy savings for years to come.
See how much you can save by going solar with Palmetto
The Current State of Residential Solar Energy
According to the Solar Energy Industries Association (SEIA), the residential solar market is expected to see a slight dip in annual installations in 2024 compared to 2023, largely due to high interest rates driving up costs. In California, this step-down is expected to be even greater, where 1.5 million homes already have solar and the value of electricity exports for new installations was reduced by net metering 3.0.
But, SEIA predicts the market for residential solar panels will grow nationwide over the following four years as the number of annual installations in California stabilizes.
For residential solar to remain popular in the US, homeowners must be certain that the project will enable real savings on long-term energy expenses. The near future of solar energy is full of innovative ideas, technological advances, financial incentives, and more that can make this happen despite high interest rates and changing net metering policies.
Advances in Solar Panel Technology
It's no secret that solar panels have been improving tremendously in the last decade, and they don’t show signs of slowing down soon. Top-tier solar panels have simultaneously become better performing and increasingly affordable thanks to technological innovation and a maturing domestic solar industry.
Right now, a few key developments to keep an eye on include:
- Perovskite solar cells. Often referred to as the "next big thing" in solar panels, Perovskite solar cells have been the subject of extensive international research and development in the 2020s. Lauded for the potential of increased energy yields, low production costs, and a wide range of practical uses, Perovskite solar panels are not yet widely available to consumers but are starting to enter the market in 2024 and could be a cost-efficient solution within the decade.
- New-look solar tech. New solar tech might deliver the benefits of solar panels but look nothing like them. In the late 2020s, transparent solar panels, solar shingles, and other types of interesting photovoltaic materials could become more popular and valuable.
- Ever-increasing efficiency. If you have been paying close attention to solar technology over recent years, you may have noticed steady efficiency increases from below 18% up to 20% and higher from today's top brands. Breakthroughs in cell efficiency for established and new technologies will be a key factor in improving solar panel performance in the coming years.
Battery Storage and Energy Management Systems
After dubbing 2010 to 2019 the "Solar Decade," the Solar Energy Industries Association (SEIA) has declared the 2020s the "Solar+ Decade," as in solar "plus" storage. With solar energy storage, homeowners gain more reliable access to solar power throughout the day, overnight, and during power outages. Thanks to decreasing battery costs, SEIA predicts that in the next few years a much larger share of homeowners who install solar will also install batteries.
Paired with solar panels, batteries and smart energy management systems can help optimize your renewable power use at home by giving you greater control over your energy consumption. For instance, homeowners with battery storage can tap into solar reserves and avoid grid-supplied electricity during peak utility billing hours.
As the technology gets more sophisticated, solar energy and storage systems will be even better at saving homeowners money with a wider variety of consumption patterns and utility rates.
Credit: SEIA/Wood Mackenzie
Solar Financing and Incentive Programs
In the not-so-distant past, solar buying options were very limited. Today, it's quite the opposite, as the number of solar loans, leases, and power purchase agreements (PPAs) available continues to grow.
Global clean energy analytics leader Wood Mackenzie speculates that residential solar is entering a new era in the mid-2020s, in which third-party ownership models (leases and PPAs) will grow in popularity as they become a more valuable alternative to traditional financing.
More than anything, the 2022 Inflation Reduction Act has set the tone for the next decade of wider access to solar with a significant number of financial incentives and programs for homeowners. As the US races towards renewable energy goals, here are a few of the incentives that are leading the way.
- The Residential Clean Energy Tax Credit is a federal income tax credit worth up to 30% of project costs for PV solar panels, solar batteries, solar water heaters, and several other green power technologies. It is available at full value through 2032 and will then step down to 26% and 22% of project costs in 2033 and 2034.
- Community solar developers and leasing companies may qualify for an additional 10% or 20% tax credit when installing projects in low-income or designated energy communities.
- Homeowners pairing solar technology with electrification efforts can receive annual rebates of up to $3,200 for home energy audits, new doors, windows, or skylights, an upgraded electrical panel, heat pumps, and biomass stoves.
See how much you can save by going solar with Palmetto
Community Solar Projects and Shared Solar Energy
Community, or shared, solar projects can allow nearly anyone with an electric bill to tap into money-saving, renewable energy sources. With community solar, you can subscribe to the power from an off-site solar installation instead of installing solar on your roof. Although not available universally, existing and emerging community solar projects in the US are helping people reduce energy costs, including those without suitable roof space for solar panels, apartment dwellers, renters, and more.
Over the next few years, community solar adoption should grow. This growth will be powered by ongoing efforts to expand solar access to those who live in multi-family affordable housing.
The Integration of Solar with Smart Grids
The International Energy Agency defines a smart grid as an energy network using "digital technologies, sensors, and software to better match the supply and demand of electricity in real-time while minimizing costs and maintaining the stability and reliability of the grid." Residential solar panels play a massive role in the development and operation of smart grids, given their ability to generate electricity anywhere the sun shines.
In 2024, several new utility programs have sprouted in states like Massachusetts and Colorado, in which participants are compensated for sharing stored solar power with the grid during periods of peak energy demand. Separate from net metering or net billing, these virtual power plants are designed to help utility companies stabilize the grid with customer resources and usually offer strong financial incentives for participation.
Smart grid concepts are rolling out in the US, though it takes time, money, and labor at every step to do so efficiently and securely. Today, the Department of Energy is spearheading smart grid development in the US with its Grid Modernization Initiative to achieve its goal of carbon-free energy by 2035.
Solar Energy and Electric Vehicles (EVs)
Over the last decade, solar energy and electric vehicles have both witnessed huge growth in global popularity, with synergistic benefits for those adopting the pair of technologies. Using solar panels to fuel your EV with the sun's power, you can keep your vehicle's lifetime expenses and emissions as low as possible by avoiding dirtier, more costly grid-supplied electricity.
As electric vehicles and solar technology continue to improve, homeowners can maximize their solar savings with systems designed intentionally for solar EV charging. Battery integrations, smart energy management systems, or even bi-directional EV charging will add a completely new layer of control and flexibility to your home's electricity use.
Solar Energy Monitoring and Predictive Analytics
As renewable energy technology grows smarter and becomes more abundant, the possibilities for better monitoring, analytics, and decision-making only grow. The maturing residential solar industry is powered by over two decades of data, which helps homeowners in every stage of the solar power process. This includes:
- Solar power generation forecasting. Developing highly accurate estimates of system performance paired with ongoing monitoring to ensure the expected electricity is generated.
- Home energy consumption modeling. Determining exactly how much electricity you use, when you consume the most, and precisely how much you would otherwise pay for grid-supplied power.
- Return on investment of multiple buying options. Increasingly robust financial modeling for the value of solar against ordinary electricity expenses in multiple loan, lease, or PPA contracts.
Palmetto customers can see everything from daily, weekly, and monthly solar power production to energy consumption and ongoing savings within the Palmetto App.
Global Trends Influencing Residential Solar Energy
Solar arrays can be found on every continent and global solar capacity is growing faster than every other renewable energy resource. The International Energy Agency predicts this trend will continue, as shown in the graph below.
Renewable electricity additions 2016-2022 and projections for 2023-2028. Credit: IEA
So what's driving all of this new solar energy production?
More than anything, this trend is largely thanks to decades of industry advancements that have made solar panels the cheapest form of electricity in history. With growing global energy use and decarbonization goals set by over 140 countries to combat climate change, solar panels are well-suited to power tomorrow's homes, businesses, and utility grids worldwide.
As the demand for solar technology grows, manufacturers around the world have found ways to improve supply chain efficiencies and create a more sustainable global solar marketplace. The US has experienced a solar manufacturing boom, one that SEIA expects to account for 120,000 jobs by 2033.
Final Thoughts
Ongoing advancements in technology, supportive government policies, and a maturing global marketplace have enabled decades of growth in the US solar industry and are expected to continue at full speed ahead. As solar technology improves and the regulatory market keeps changing, going solar can be a much smoother process with an expert guide.
With Palmetto's LightReach Energy Plan, you can go solar without any upfront costs, in a contract customized for your home and energy habits. LightReach plans include long-term maintenance and dedicated ongoing customer support for the life of your contract. Palmetto also makes it easy to explore your solar options and estimate your savings whether you buy or go with LightReach.
Palmetto’s solar experts can help you pivot away from fossil fuels, navigate your solar buying options, and reduce your ongoing energy costs. If you are interested in a free solar assessment for your property, get a quote from Palmetto with just a few clicks today.
See what solar can do for you:
Brian ChurchWriterBrian is a writer, NABCEP PV associate and outdoor enthusiast living in Denver, Colorado. As a freelancer, Brian has written hundreds of articles to help individuals, businesses and our planet benefit from solar power and sustainable energy systems.
