Inflation’s effect on the solar industry
It is our nature to compete with each other, just as it is with every other species on earth. It is how we adapt and survive. I am not an economist so I am not going deep here. Although I will say that predicting the future economy is a lot like predicting the weather; we are better at analyzing what happened than predicting what will happen. Our competitive nature is ultimately the primary driver of innovation, efficiency and eventually inflation. Even when we improve the efficiency of what we make and do, we use that as an opportunity to grow. Lower inflation rates give all who participate in the economy the opportunity to adjust and catchup. High inflation rates disrupt this balance and cause parts of that economy to fail. Naturally we prefer lower inflation rates. Either way, inflation to some degree is here to stay.
Solar module manufacturing over the past 20 years has seen the opposite of inflation occur, deflation. This has been due to its global growth, higher energy conversion efficiencies and more efficient manufacturing processes. Other sectors of the solar industry have also experienced deflation due to competitive and innovative manufacturing processes. That has had a positive effect on the overall cost to install solar PV systems. The solar industry continues to gain cost advantage over other energy industries but the industry does feel the pressure of inflation with raw materials, wages and operating costs. Some costs do rise even when the product itself maintains resistance against inflation. This is also true in the training sector of the solar industry.
Adjustments to inflation occur when individuals or companies are forced to raise their prices just to maintain the same margins they had before their costs went up.
Solairgen has not raised tuition costs for the past 12 years and that is because it is possible to adjust the mechanisms of operation rather than continue to raise prices. But there is only so much that can be done when external costs continue to rise.
We will be raising our tuition prices in June of this year. It will only be around 10% per class but it will help us meet our operating costs and continue to deliver the best quality solar courses.
Our current tuition prices will continue until June of this year if you want to take advantage and register at the current rates.
Kelly Provence
IREC Certified Master PV Trainer
(706) 867-0678
(800) 262-7560
info@solairgen.com