U.S. Electricity Demand Will Increase 2.5% – Is Solar the Answer?

A rise in electricity demand makes solar a better choice for homeowners.

• S. energy demand will increase 2.5% over the next ten years.
• Electricity prices increase with demand and inflation.
• Solar energy is a more affordable option for families.
• There is limited time to claim Federal solar tax credits.

America’s grid is seeing gigawatt-scale growth, and electricity demand will increase by 2.5% over the next ten years. This is the finding of the Bank of America Institute, which says in its latest Energy Report that more grid investment is needed to meet demand.

Higher demand will affect prices, which usually increase at the same rate as inflation. If you want more affordable electricity for your family, you could consider a solar installation on Long Island.

Higher Prices Will Squeeze Homeowners

Higher demand negatively affects homeowners in the form of higher prices. On Long Island, electricity rates are among the highest in the nation. These are only likely to go up in the coming years.

As rates increase, you will pay more for your home energy needs, compounded by the fact that home energy consumption is rising.

The average household consumes 10,500 kWh of electricity per year. Air conditioning, heating, and water heating are the leading factors that consume 43% of a home’s total energy. The increased adoption of electric heating in New York could see your energy demands grow in the next ten years.

A home solar installation could help to offset increased demand and reduce your monthly bills.

Do You Really Save Money with Solar?

Even before incentives, a home solar installation could significantly reduce your energy spending. A modest 5 kWh solar panel system could save a household $49,047 over 25 years, or around $163 per month.

Each home is unique, and many systems have higher capacities, usually between 6 kWh and 8 kWh. A larger system could increase the savings.

• New York has Net Metering, which improves savings by allowing you to sell excess solar production back to the grid.
• Net Metering helps to offset days and months of the year when solar production is relatively low.
• Solar decreases your demand on the grid to give you energy independence.

An expert cost/benefit analysis can predict your savings with solar, giving you a savings roadmap.

The Biggest Solar Tax Credit Ends in 2025

Solar is more affordable today because there are generous solar tax incentives at the federal and state levels.

• New York taxpayers can get a state income tax credit worth 25% (up to $5,000) of the cost of a solar installation.
• The federal solar tax credit is worth 30% of the cost of a solar installation.

The federal solar tax credit ends on December 31^st, 2025. Planning a solar installation today will significantly reduce the cost of going solar and increase the long-term savings.

Overcome Electricity Rate Hikes and High Demand

High demand leads to rate hikes and market instability. Installing solar will reduce your electricity bill and generate significant savings over time. Some of the best solar incentives will soon disappear. The clock is ticking if you want to enjoy all the benefits of home solar.

Get a detailed cost/benefit analysis and consultation from Power Solutions, and see how Long Island solar panels can benefit your household.