I'm curious about what will happen to component prices once the federal tax credit for solar installations comes to an end. Do you all think we might see a decrease in prices, or is that wishful thinking?
3 Answers
Wishful thinking, my friend. Prices might drop a tiny bit if there's a surplus of inventory, but due to tariffs and overall reduced installation volume, I wouldn't bet on it. Although, there are some great deals on used panels and inverters around, especially in areas like Houston!
Honestly, I hope so! It would be nice to see more affordable options for everyone.
I wouldn't count on prices dropping much. A big part of the markup was due to installers taking advantage of the tax credit to increase their profit margins. The actual hardware prices weren't really inflated because of the credit; it was more about installation costs and profit ratios going up.
Totally agree. It seems like many installers were just finance firms in disguise, raking in cash through financing deals rather than just selling solar systems. So when the credit's gone, they might still make less money overall.
Exactly! I think prices are more likely to continue rising with inflation and tariffs in play. After the tax credit, when demand goes down, suppliers will need to restock at higher prices, especially since many components are imported. It's all about managing those added costs.