The State of the Solar HVAC Market
ACHR News, August 31, 2015. Image credit: Solar Cool Hawaii
The solar HVAC market is in a critical state of flux.
On one hand, by the end of the decade, solar photovoltaic (PV) is “projected to be cost-competitive with retail electricity prices in a significant portion of the world as module prices and installation costs continue to decline,” per Navigant Research. In fact, according to a new report from the research firm, global annual revenue from solar PV installations is expected to surpass $151.6 billion by 2024.
However, as demand and support for the energy-efficiency, long-term cost reductions, and other benefits provided by solar installations grow, so does concern over how solar will look after current federal tax credits expire at the end of 2016 (for more on the future of the tax credit, see our additional coverage in today’s issue).
Currently, the Residential Renewable Energy Tax Credit allows for a 30 percent tax credit on residential energy property applied to solar-electric systems, solar-water heating systems, and fuel cells, as well as small wind-energy systems and geothermal heat pumps.