Solar panels and related equipment are eligible for the solar investment tax credit, along with various incentives that can lower your overall purchase cost. Currently, the United States generates approximately 126 gigawatts (GW) of solar energy, sufficient to power around 22 million homes, but a significant portion of this energy is not produced from domestically manufactured solar panels.
With the Energy Information Administration forecasting a 6% growth in the solar market from 2035 to 2050, it’s clear why more individuals are interested in adopting solar energy and seeking U.S.-made products. However, potential buyers should be aware of the origins of their solar panels. Fully American-made manufacturers are relatively scarce.
Where Are Solar Panels Produced?
Most solar panels available in the U.S. are sourced from international locations. Understanding the origin of solar panels entails examining the sourcing of their individual components and where these components are ultimately assembled.
Solar panels consist of three primary components:
- Silicon cells
- Aluminum frames
- Protectants (such as glass, encapsulant, and backsheet)
Silicon Cells
Silicon is the core material for solar cells, with China being the leading global producer. Following China, countries like Russia, Brazil, Norway, and the U.S. play significant roles in silicon production. Many silicon-producing companies have operations across multiple countries, complicating the tracking of individual parts and materials.
Aluminum Frames
The aluminum frame in solar panels serves as a sturdy binding element for silicon cells, glass, encapsulant, and backsheet. Most manufacturers of aluminum frames are based in China, alongside a few from other nations.
Glass, Encapsulant, and Backsheet
These components play a vital role in safeguarding the silicon cells from damage and environmental factors. Similar to other parts, the production of these protectants is predominantly centered in China, with Germany, India, South Korea, Japan, and the U.S. as secondary players.
Unfortunately, due to the diversity of materials and manufacturers involved, completely American-made solar panel companies are hard to find. For instance, Maxeon (formerly SunPower) produces their solar panels outside the U.S., but they are among the top-rated options available stateside, meeting stringent quality and reliability standards.
Freedom Solar is a certified provider of Maxeon solar panels, offering a 25-year warranty covering performance, product, and workmanship.
Advantages of Solar Panel Ownership
Even though most solar panels are produced and assembled internationally, investing in a solar system presents numerous advantages. Solar panels are transforming energy consumption patterns, and they represent a significant eco-conscious investment.
Both commercial and residential solar installations provide benefits irrespective of their country of origin, contributing positively to environmental objectives. After covering the initial costs, often eased by local rebates and incentives, the benefits continue for many years.
Key reasons to consider going solar include:
- Lowering energy bills (specifically on electricity)
- Contributing positively to environmental and public health efforts
- Increasing property value
- Supporting local economies through net metering
What to Expect When Purchasing Solar Panels
Cost is a primary consideration for many when contemplating solar energy. However, the pricing for American-made solar panels can be complex due to various influencing factors.
While solar panels may initially seem costly, multiple financing options are available to make them more accessible for individuals and families, or even businesses.
In light of President Biden’s recent legislative measures, there are additional savings to be had. On August 16, 2022, he enacted the Inflation Reduction Act (IRA) of 2022, the largest climate change initiative to date, which significantly extends the federal solar tax credit, applicable to any chosen solar provider.
This law allocates $369 billion toward securing a sustainable energy future, aiming to reduce family energy costs by offering tax credits, rebates for energy-efficient appliances, and incentives for solar installations. Solar panels, along with related equipment, are eligible for the investment tax credit (ITC), enhancing their affordability.
As of summer 2022, buyers can benefit from tax credits up to 30% to offset the cost of solar panel purchases and installation, with the credit rate expected to reduce to 26% by 2033.
Assessing the Value of Going Solar
Investing in solar panels is undoubtedly worthwhile. With the average U.S. household consuming about 10,715 kilowatt-hours (kWh) of electricity annually, transitioning to solar energy can yield substantial savings.
Homeowners typically see their electric bills soar to around $125 monthly without solar power; with panels installed, substantial financial savings are achievable each year. Real estate studies indicate that homes equipped with solar panels can sell for an additional $12,000 to $15,000.
Ultimately, regardless of their origin, solar panels offer numerous benefits over traditional energy sources. While advocating for fully American-made solar products is an admirable goal, it is crucial to recognize that significant advancements will take time, and exploring sustainable options is vital for your budget, ethical considerations, and the planet’s well-being.