U.S. Solar Industry Faces 'Perfect Storm' as Australia Booms
The U.S. residential solar industry faces a perfect storm of rising costs and permitting delays, threatening to make rooftop solar less competitive. Meanwhile, Australia enjoys cheaper and more accessible rooftop solar and battery installations.
Permitting delays can significantly increase project costs and cancellation rates. In New Jersey, for instance, permitting adds an estimated $3,800 to $4,500 to average project costs, potentially exceeding $6,000 to $7,000. This is due to complex and varying local regulations.
The Solar Energy Industries Association (SEIA) and Smart Electric Power Alliance (SEPA) have created the 'Grid Ready Home Act' to tackle these issues. The act aims to streamline grid interconnection and permitting processes for solar projects below 25 kW, making them more efficient and cost-effective.
However, the U.S. solar industry is also grappling with the phase-out of the 30% residential solar tax credit and the disappearance of net metering. If no action is taken, rooftop solar could become 40% more expensive than grid power.
In contrast, Australia's rooftop solar and battery installations are cheaper and more accessible, saving homeowners around 50% on their electricity bills.
The Grid Ready Home Act, if adopted widely, could help reduce soft costs that make up over half of residential solar project costs in the U.S. Standardizing approval processes and requiring smart inverter functionality could support more solar installations, making rooftop solar more competitive and affordable.
Read also:
- MRI Scans in Epilepsy Diagnosis: Function and Revealed Findings
- Hematology specialist and anemia treatment: The role of a hematologist in managing anemia conditions
- EU Leaders Discuss 'Drone Wall' to Tighten Border Security After Munich Incident
- Enhancing the framework or setup for efficient operation and growth
