As energy costs rise, more people are turning to solar energy as an effective solution, according to Bret Biggart, CEO of Freedom Solar.
Based in Texas, Freedom Solar has continued to grow despite the challenges posed by the pandemic and economic turbulence. The company has nurtured a strong partnership with its solar panel supplier, positioning itself well to navigate through this year without substantial hurdles.
A significant boost for the solar industry came from Congress extending the 26% solar tax credit until the end of 2022, encouraging more homeowners to adopt solar solutions. The industry is now advocating for Congress to extend these subsidies, as the federal investment tax credit is set to decrease to 22% next year. Without the renewal of these tax credits, the U.S. may struggle to achieve President Joe Biden’s goal of decarbonizing the electricity sector by 2035. The industry is already facing delays and project cancellations due to rising costs and supply chain issues resulting from the health crisis.
Insights from Bret Biggart
In a recent conversation with Multi-Housing News, Biggart discussed how inflation and rising interest rates could impact the solar energy industry and reflected on Freedom Solar’s progress since last speaking with Sales Director Kyle Frazier three years ago.
Back in 2019, Freedom Solar had just relocated its headquarters to a larger facility in Austin, Texas. Biggart noted, “Since then, our revenue has doubled year-over-year, with 2021 marking our most successful year to date. Our growth continues across all sectors, and we’ve expanded into eight states, recently opening offices in Tampa and Orlando, Florida, as well as Raleigh, North Carolina.”
Differences between Residential and Commercial Solar Markets
When asked about the distinctions between residential and commercial solar sectors, Biggart emphasized that the residential segment relies heavily on financing options, while the commercial segment is influenced by factors such as customer loyalty, Return on Investment (ROI), and Environmental, Social, and Governance (ESG) criteria. As financing has become more accessible, and solar prices remain stable, there has been a noticeable increase in homeowners adopting solar energy.
Addressing Rising Construction Costs
Regarding the rising costs of construction materials and supply chain challenges, Biggart stated, “We are increasing our inventory purchases to ensure uninterrupted customer service. Our long-standing relationships with manufacturers help us shield our customers from significant price fluctuations.”
Freedom Solar partners primarily with Maxeon (formerly SunPower) for its solar panels. Biggart affirmed their collaboration, saying, “We have a strong relationship with Maxeon and will continue to be their master dealer in Colorado, Florida, and Texas. Our pricing and inventory are secured with Maxeon for the rest of the year, enabling us to offer competitive rates to our customers.”
Impact of Inflation and Interest Rates
When asked whether global inflation and rising interest rates signify an end to affordable clean power, Biggart responded, “No. The trend of more people switching to solar is largely driven by increasing energy costs. Solar prices are rising at a slower rate than energy costs, making solar an even more attractive financial option, especially with the excellent financing options now available, along with federal and state incentives.”
The Future of Solar Energy
Biggart identified inflation as a significant concern for the renewable energy sector, stating that it can influence consumer behavior and deter purchases. He emphasized the importance of educating the public about the benefits of solar and the financial solutions that make it a viable option.
Regarding sustainability, Biggart believes that solar remains a sound investment, offering a hedge against inflation by providing reliable, valuable energy.
As for the current tax credits supporting solar installations, Biggart affirmed that they are adequate for ensuring that solar remains a worthwhile investment.
To maintain positive momentum in the industry and keep electricity costs manageable, he noted the importance of efficiency. Over the past decade, Freedom Solar has improved its operational efficiency, increasing their installation capabilities. “Ten years ago, we completed one installation a day; now we can handle three or four. Our team has gained valuable skills to effectively install systems, regardless of their complexity,” he concluded.
With commitment, innovation, and a clear focus on customer needs, Freedom Solar is paving the way for affordable clean power in Texas and beyond.