Of the total new electricity-generating capacity added in the United States last year, 46% was solar power.
Even as supply-chain disruptions led to increased costs for solar panels, 2021 broke records with more than 500,000 solar installation projects completed in a single year for the first time – ever.
Now with the passing of the Inflation Reduction Act, the U.S. solar market could experience even more of a boom — the Solar Energy Industries Association® (SEIA) recently issued a press release around a report on September 8, saying that “the Inflation Reduction Act (IRA) will help the U.S. solar market grow 40% over baseline projections through 2027, equal to 62 gigawatts (GW) of additional solar capacity, according to new forecasts in the U.S. Solar Market Insight Q3 2022 report”. President Joe Biden referenced some of these points in the recent State of the Union address, showing continued dedication to the topic that some companies in the industry noted is a good sign of government follow-through.
“The Inflation Reduction Act has given the solar industry the most long-term certainty it has ever had,” said Michelle Davis, principal analyst at Wood Mackenzie and lead author of the report. “Ten years of investment tax credits stand in stark contrast to the one-, two-, or five-year extensions the industry has experienced in the last decade. It’s not an overstatement to say that the IRA will lead to a new era for the U.S. solar industry.”
The Biden Administration aims to transition the nation’s grid to at least 40% solar by 2035. For this ambitious goal to become a reality, solar energy providers have many panels to install. And large companies in the space, such as First Solar FSLR and Enphase ENPH, will benefit significantly from smaller companies that sell and install the projects to the property owners.
Occurring at the same time, there are reports of massive price increases for energy that could be digging into businesses’ bottom line nationwide and encouraging a significant uptick in commercial solar spending and installation. Wil Ralston, CEO of emerging solar player SinglePoint Inc. SING, said, “Many of our clients and partners are experiencing unprecedented increases in their electricity bills. As a part of our sales process, we evaluate potential customers’ energy purchasing needs, and we have seen utility bill increases ranging from 50% to 200% on commercial utility prices. Our company aims to help offset and reduce those expenses through direct energy purchases agreements and renewable energy solutions such as solar and energy storage.”
While Europe has garnered many headlines for enormous spikes in energy costs primarily due to the conflict between Ukraine and Russia, the U.S. and the rest of the world may be just a little behind.
Many businesses that are already being incentivized by the Inflation Reduction Act are most likely experiencing an additional effect of rising electricity costs — the upshot of which could be a unique and crucial time for solar installers and service providers.
Ralston added, “Between generous tax credits and rapidly rising energy costs, there never has been a time in the past that the economic decision to go solar has been more obvious to many potential customers. And with SinglePoint’s vertically integrated structure, we feel we are well-positioned to capitalize on the expected surge in solar energy going forward.”
SinglePoint is a company working to make the solar industry more customer-friendly. The rapidly growing renewable energy solutions company has been developing a diversified portfolio of services, including the acquisition of The Boston Solar Company, LLC, a leading solar installer based in Massachusetts.
The company reported Q3 Revenue of $6,589,227 vs. Q3 2021 of $273,877 — SinglePoint’s strategy has been to build a nationwide network of solar panel installers to help transform the complicated landscape of the solar industry into one that’s easier to navigate for both residential and commercial customers.
SinglePoint, with a market capitalization of only $5.37 million, may be worth watching for a positive revolution in the market to reflect this revenue growth.
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Additional photo by Nuno Marques on Unsplash
