The Time Value of Energy (TVOE)
There's never been a better time for property owners to invest in energy upgrades, especially rooftop solar panels. The cost of installing solar panels has decreased by nearly 30% since 2015, thanks to increased global supply and improvements in panel efficiency.
This decrease in cost, coupled with increased panel efficiency, means that a solar system that would have cost $100,000 in 2015 would now cost around $70,000 and require around 20% less roof space than a few years ago. This is a significant decrease, especially in a market where prices typically go up with inflation.
To put the 30% decrease in solar pricing into perspective, consider that since 2015, the cost of electricity for commercial property owners in New York State has increased by nearly 25%. With the combination of decreased panel costs and robust incentives, this is one of the best times to upgrade to solar.
Delaying deployment becomes costly as each month that property owners hold off on upgrading to solar means another month of high electricity (and natural gas) bills. The sooner solar gets deployed, the earlier the savings accrue. It is unlikely that the incentives will get better than they are today or that project paybacks will shorten.
Similar to the time value of money, where a dollar today is worth more than a dollar tomorrow, there is a time value of energy. A dollar invested in solar energy today is worth more than a dollar invested in solar tomorrow.