BRANDON, Fla. — Interest rates continue to fluctuate around 6 to 7%, causing some hesitancy for people trying to invest in solar.

What You Need To Know

  • Solar companies are working to rebound from the aftermath of the pandemic    

  • According to experts, materials for panels have risen by about 15%

  • The Inflation Reduction Act has been able to assist these solar businesses by extending the investment tax credit and helping businesses and families lower what it costs to install solar panels

Solar experts in the Bay area say they’ve dealt with issues following the pandemic with the supply chain and inflation, saying higher interest rates are leading to fewer people wanting to switch to the alternative energy source.

It’s something the founder of Tampa Bay Solar, Steve Rutherford, knows well.

According to Rutherford, he got his start in the solar industry while serving in the military installing panels overseas in the Middle East.

Now, 12 years into Tampa Bay Solar’s existence, his company is still recovering from the aftermath of the pandemic.

“Interest rates are still high, and it's now harder for people to borrow money,” Rutherford said.

He said that meant fewer people wanting to go solar.

It didn’t help that, following the events of the pandemic in 2020, solar experts say many materials were in short supply.

That, coupled with a rise in material costs by over 15%, led to some companies having to take drastic measures.

“We've seen some of our larger competitors lay off 10 to 20% of their workforce,” Rutherford said.

At one point, Rutherford didn’t know if Tampa Bay Solar would be able to survive but that changed, in part, because of the Inflation Reduction Act.

“The IRA is actually giving us a ten-year window of certainty, knowing that the investment tax credit will remain for 30% over the next ten years,” Rutherford said.

The investment tax credit allows people who go solar, to get back 30 percent of what they paid for.

According to the U.S. Treasury Department, the Inflation Reduction Act is also helping businesses and families lower what it costs to install solar panels.

While this is helpful, Rutherford’s hope now is seeing interest rates decline to where they used to be.

“With low interest rates, customers could easily afford a three or four percent interest loan,” Rutherford said. “And now, with a 7 or 8% interest loan, it's much more challenging.”