{"id":10268,"date":"2022-12-20T23:37:05","date_gmt":"2022-12-20T23:37:05","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=10268"},"modified":"2023-02-07T16:08:03","modified_gmt":"2023-02-07T16:08:03","slug":"best-and-worst-moments-for-solar-power-in-2022","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/best-and-worst-moments-for-solar-power-in-2022\/","title":{"rendered":"Best and Worst Moments for Solar Power in 2022"},"content":{"rendered":"<p>With groundbreaking legislation and new milestones, 2022 was a historic year for solar power.<\/p>\n<p>And, after tallying the year\u2019s triumphs and setbacks, one thing is clear: We\u2019ve only seen the tip of the iceberg.<\/p>\n<p>To celebrate the progress made this year \u2013 and to foreshadow what\u2019s ahead \u2013 we\u2019ve compiled a list of the best and worst moments for solar power in 2022.<\/p>\n<p><a href=\"https:\/\/www.solar.com\/dashboard\">Compare multiple binding solar quotes here.<\/a><\/p>\n<h2>Best moments for solar power in 2022<\/h2>\n<p>Despite substantial challenges, 2022 was an epic year for solar power in several ways. Here are some of the year\u2019s most notable achievements.<\/p>\n<h3>Inflation Reduction Act turbocharges solar<\/h3>\n<p>On August 16, 2022, President Joe Biden signed the Inflation Reduction Act (IRA) into law which set the <a href=\"https:\/\/www.solar.com\/learn\/federal-solar-tax-credit\/\">federal solar tax to 30%<\/a> until 2032.<\/p>\n<p>The tax credit was previously set at 26% for 2022 and was scheduled to step down to 22% in 2023 before going away entirely for residential solar 2024.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-medium\" src=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2022\/08\/solar-tax-credit-before-and-after-inflation-reduction-act.jpg\" alt=\"best and worst of solar power in 2022\" width=\"1200\" height=\"1187\" \/><\/p>\n<p>For homeowners, the 30% tax credit is worth $7,500 on a $25,000 solar project \u2013 effectively reducing the cost and payback period of the project and increasing the overall energy cost savings. The tax credit also applies to <a href=\"https:\/\/www.solar.com\/learn\/solar-battery\/\" target=\"_blank\" rel=\"noopener\">battery storage<\/a> which, beginning in 2023, does not have to be connected to a solar system.<\/p>\n<p>While the enhanced tax credit is something to cheer about, it\u2019s the long-term effects of the Inflation Reduction Act that promise to turbocharge the solar power industry.<\/p>\n<p>The IRA also includes incentives for:<\/p>\n<ul>\n<li>Commercial solar, and other renewable energy<\/li>\n<li>Domestic manufacturing<\/li>\n<li>A <a href=\"https:\/\/www.solar.com\/learn\/home-energy-efficiency-rebates-and-tax-credits\/\" target=\"_blank\" rel=\"noopener\">host of other home electrification improvements<\/a> like heat pump water heaters, electric panel upgrades, and new windows<\/li>\n<\/ul>\n<p>In all, the IRA is a major investment in a clean energy future led by solar power.<\/p>\n<h3>Solar and battery save the day during natural disasters<\/h3>\n<p>Residential solar and battery aren\u2019t only a solution for slowing climate change, they\u2019re also crucial for responding to it.<\/p>\n<p>In 2022, we saw solar and battery rise to the occasion during extreme weather events on both the east and west coasts.<\/p>\n<p>In California, residential batteries charged by rooftop solar <a href=\"https:\/\/www.solarpowerworldonline.com\/2022\/09\/customer-sited-solar-batteries-340-mw-peak-power-one-day-california\/\" target=\"_blank\" rel=\"noopener\">provided around 340 MW of power<\/a> to support the local grid and avoid blackouts during a record heat wave. The 340 MW provided by solar and battery owners is more capacity than a mid-sized power plant and represents a fraction of the total storage held in garages around the state.<\/p>\n<p>\u201cA new analysis by the California Solar and Storage Association (CALSSA) shows that California had more than 80,000 customer-sited batteries connected to the electric grid capable of providing 900 MW of solar power.\u201d<\/p>\n<p>Less than a month later, in Florida, a solar-powered community near Fort Myers <a href=\"https:\/\/www.cbsnews.com\/miami\/news\/florida-solar-community-endured-hurricane-ian-with-no-loss-of-power-and-minimal-damage\/\" target=\"_blank\" rel=\"noopener\">survived Hurricane Ian nearly unscathed<\/a>, and provided power and shelter to displaced victims in the aftermath.<\/p>\n<h3>Renewables set to surpass coal<\/h3>\n<p>Thanks to rapid growth in wind and solar, power generation from renewable energy is expected to surpass coal and nuclear in 2022, according to the <a href=\"https:\/\/www.eia.gov\/outlooks\/steo\/\" target=\"_blank\" rel=\"noopener\">US Energy Information Agency<\/a>.<\/p>\n<p>Renewables (mainly solar, wind, and hydro) are on track to provide 22% of the US\u2019s energy mix this year, up from 20% last year. Meanwhile, coal is on track to generate 20% of the overall mix, down from 23% in 2021.<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"156\"><strong>Energy source<\/strong><\/td>\n<td width=\"156\"><strong>Share of 2021 US generation<\/strong><\/td>\n<td width=\"156\"><strong>Share of 2022 US generation<\/strong><\/td>\n<td width=\"156\"><strong>Projected share of 2023 generation<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"156\">Renewables<\/td>\n<td width=\"156\">20%<\/td>\n<td width=\"156\">22%<\/td>\n<td width=\"156\">24%<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"156\">Coal<\/td>\n<td width=\"156\">23%<\/td>\n<td width=\"156\">20%<\/td>\n<td width=\"156\">19%<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"156\">Nuclear<\/td>\n<td width=\"156\">20%<\/td>\n<td width=\"156\">19%<\/td>\n<td width=\"156\">20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>And renewables \u2013 especially wind and solar \u2013 are just getting started. The US is on track to nearly double its total solar capacity over the next three years.<\/p>\n<p>The US currently has around 77 GW of solar capacity and has nearly <a href=\"https:\/\/cms.ferc.gov\/media\/energy-infrastructure-update-september-2022\" target=\"_blank\" rel=\"noopener\">72 GW of \u201chigh probability additions\u201d<\/a> lined up for October 2022 through September 2025 \u2013 by far the most of any energy source. The next closest is wind with 18 GW of \u201chigh probability additions.\u201d<\/p>\n<p>It\u2019s also worth noting that solar is the only energy source with zero planned retirements over the next three years.<\/p>\n<h3>Record number of residential solar additions in Q3<\/h3>\n<p>Homeowners added a record 1.57 GW of solar capacity in the third quarter of 2022 alone, according to the <a href=\"https:\/\/www.seia.org\/research-resources\/solar-market-insight-report-2022-q4\" target=\"_blank\" rel=\"noopener\">Solar Energies Industry Association<\/a> (SEIA). That makes up over 34% of the total 4.6 GW of solar capacity added in Q3.<\/p>\n<p>According to the SEIA: \u201cCalifornia made up 36% of this total as installers continue to push to sell residential solar before <a href=\"https:\/\/www.solar.com\/learn\/nem-3-0-proposal-and-impacts-for-california-homeowners\/\" target=\"_blank\" rel=\"noopener\">changes to current net metering rates<\/a>.\u201d<\/p>\n<h3><img loading=\"lazy\" class=\"aligncenter wp-image-10269 size-large\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2022\/12\/california-vs-other-states-solar-power-1024x822.png\" alt=\"california vs other states solar power\" width=\"1024\" height=\"822\" \/><\/h3>\n<h3>Surging electricity prices increase solar savings potential<\/h3>\n<p>The average price for grid electricity jumped 16% year-over-year in October 2022 \u2013 the largest one-year increase in over 40 years.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-10187 size-large\" src=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2022\/11\/Rising-price-of-electricity-1024x922.png\" alt=\"Rising price of electricity\" width=\"1024\" height=\"922\" \/><\/p>\n<p>This includes a <a href=\"https:\/\/www.wcvb.com\/article\/electric-bills-could-increase-64-percent-this-winter-in-massachusetts-2022-2033\/41312993\" target=\"_blank\" rel=\"noopener\">64% rate increase in Massachusetts<\/a> and a <a href=\"https:\/\/www.nbcconnecticut.com\/news\/local\/eversource-looking-to-increase-utility-bills\/2918102\/\" target=\"_blank\" rel=\"noopener\">50% rate increase in Connecticut<\/a> expected to add around $1,000 per year to electricity bills.<\/p>\n<p>The rapid rate increases in 2022 highlight and increase the savings potential of residential solar. Going solar leads to lower and more predictable electricity payments, adding up to tens of thousands of dollars in energy cost savings over the 25-year life of the system.<\/p>\n<p><strong>Related reading: <\/strong><a href=\"https:\/\/www.solar.com\/learn\/solar-energy-pros-cons\/\" target=\"_blank\" rel=\"noopener\">The Pros and Cons of Solar Energy in 2023<\/a><\/p>\n<h2>Worst moments for solar power in 2022<\/h2>\n<p>The road to a clean energy future is lined with speed bumps and setbacks. Here are some of the biggest hurdles for solar power in 2022.<\/p>\n<h3>California all but guts net metering<\/h3>\n<p>In December, the California Public Utilities Commission (CPUC) approved a new version of net metering \u2013 <a href=\"https:\/\/www.solar.com\/learn\/nem-3-0-proposal-and-impacts-for-california-homeowners\/\" target=\"_blank\" rel=\"noopener\">known as NEM 3.0<\/a> \u2013 for customers of California&#8217;s three major investor-owned utilities (PG&amp;E, SCE, and SDG&amp;E).<\/p>\n<p>Solar owners under NEM 3.0 will earn ~75% less for the excess electricity they push onto the grid. This will substantially increase the payback period and decrease the overall energy cost savings of going solar.<\/p>\n<p>NEM 3.0 was approved despite strong public opposition, including a three-hour marathon of over 100 anti-NEM 3.0 public comments leading up to the vote.<\/p>\n<p>In a silver lining, both <a href=\"https:\/\/pv-magazine-usa.com\/2022\/11\/21\/michigan-rejects-utility-anti-rooftop-solar-policy\/\" target=\"_blank\" rel=\"noopener\">Michigan<\/a> and <a href=\"https:\/\/www.utilitydive.com\/news\/Florida-desantis-vetoes-rooftop-solar-bill-behind-the-meter-cost-shifting\/622820\/\" target=\"_blank\" rel=\"noopener\">Florida <\/a>rejected attempts to weaken or remove net metering in 2022.<\/p>\n<h3>Rate hikes make solar loans more expensive<\/h3>\n<p>In an effort to tamp down inflation, the Federal Reserve has been raising interest rates throughout 2022. This is designed to discourage borrowing and spending in order to slow an overheating economy.<\/p>\n<p>While mortgage rates get most of the media attention, interest rates for solar loans have also been affected. Higher interest rates add to the overall cost of solar and lengthen the payback period.<\/p>\n<p>While going solar is still much cheaper than paying for grid electricity, higher interest rates eat away at the lifetime energy cost savings.<\/p>\n<h3>Supply chain tangles delaying and adding costs to solar power<\/h3>\n<p>From lumber to meat, the pandemic wreaked havoc on supply chains in all industries, including solar.<\/p>\n<p>The mangled supply chain for panels, racking, inverters, and raw materials caused the price of solar power to <a href=\"https:\/\/www.seia.org\/solar-industry-research-data\" target=\"_blank\" rel=\"noopener\">increase for the first time in at least a decade<\/a> \u2013 although it remains the cheapest source of energy.<\/p>\n<p>Supply chains are expected to improve in 2023 leading to reduced prices and more installations.<\/p>\n<h2>The bottom line: 2022 was a good year for solar power<\/h2>\n<p>While 2022 contained several speed bumps for the solar industry, it also featured major victories and milestones.<\/p>\n<p>In an era of inflation and uncertainty, more homeowners are recognizing solar as a means to lower and more predictable energy costs.<\/p>\n<p><a href=\"https:\/\/www.solar.com\/dashboard\">Get multiple solar quotes to see how much you could save.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With groundbreaking legislation and new milestones, 2022 was a historic year for solar power. And, after tallying the year\u2019s triumphs and setbacks, one thing is clear: We\u2019ve only seen the&#8230;<\/p>\n","protected":false},"author":51,"featured_media":10228,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[2,49],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Best and Worst Moments for Solar Power in 2022 | Solar.com<\/title>\n<meta name=\"description\" content=\"Despite minor setbacks, solar power had a historic year of advances that build the foundation for a clean energy transition.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/best-and-worst-moments-for-solar-power-in-2022\/\" \/>\n<meta property=\"og:locale\" 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