As the year draws to a close, a unique dynamic is at play in the industrial supply last mile delivery market: demand for solar panel installations skyrockets.
It’s normal for industries to experience a holiday rush, but the solar sector’s year-end spike is unique, driven by both financial incentives and energy savings goals. For example, homeowners are motivated to finalize installations before Dec. 31 to take advantage of federal tax credits and other financial benefits.
This article explores why solar demand peaks in November and December — and how understanding these trends can help industrial suppliers plan to effectively meet this surge in demand. Continue reading to learn more about this unique dynamic, and contact us to talk about securing a partner for effective industrial supply last mile delivery at year’s end.
Why Solar Demand Peaks at Year-End
One of the main drivers behind the year-end rush for solar panel installations is the Residential Clean Energy Credit, a federal tax incentive that offers homeowners a 30% credit on installation costs through 2032. To maximize this benefit on upcoming tax filings, many homeowners push to complete projects by Dec. 31. The urgency increases as the credit amount is set to drop to 26% in 2033 and 22% in 2034 before expiring in 2035.
In addition to the federal credit, many states offer additional solar incentives, including rebates and tax credits, which can be stacked for even more savings. Homeowners often aim to secure these combined benefits before year-end budgets expire.
Solar installers also contribute to the surge by offering discounts and bundled services to close out the year strong, further boosting demand in the final months of the year. This convergence of incentives and promotions makes November and December a critical period for the solar industry.
Challenges in meeting End-of-Year Solar Demand
The race to complete solar installations by Dec. 31 to qualify for current-year tax credits creates intense scheduling pressure for solar companies. With only a narrow installation window, managing multiple projects can quickly become overwhelming. Compounding the issue, the broader labor market experiences a seasonal crunch, making it difficult to secure skilled technicians and installers during peak months.
Logistical bottlenecks also pose a significant challenge. Transportation networks are stretched thin during the holiday season, complicating the timely delivery of panels and equipment. This can lead to delays and disrupt carefully planned schedules. And here’s another wrinkle: Winter weather in many parts of the U.S. introduces another layer of complexity, causing unexpected delays and making last-minute installations even more difficult to execute.
Navigating these challenges requires meticulous planning, a reliable delivery partner, and the flexibility to adapt quickly to changing conditions.
How Solar Companies Can Prepare: Last Mile Delivery’s Role
A reliable last mile delivery partner is key to solar companies overcoming peak season challenges. With a vetted network of professional drivers and flexible fleet options, FRAYT helps alleviate delivery concerns even when demand surges or labor is scarce. Whether transporting bulky panels or delicate equipment, FRAYT’s diverse fleet (including everything from vans to large trucks) ensures safe and timely industrial supply last mile delivery of solar products.
Visibility is also important — especially during the holiday rush. At FRAYT, we offer a tech platform that provides real-time tracking and proactive communication, reducing the risk of delays and keeping installation teams up to date. With FRAYT as a partner, solar installation companies also enjoy access to on-demand capacity, which allows them to handle sudden increases in orders without scrambling to find delivery solutions.
To see how FRAYT’s solutions support industrial supply needs, explore our case studies.
Preparing for Next Year: Strategic Planning Tips for Solar Installers
Preparing for a surge in demand for solar panel installation can be as simple as finding the right last mile delivery partner.
The right delivery partner will have quality drivers and a diverse fleet of vehicles.
The right delivery partner will be able to provide on-demand capacity that scales as you need it to.
And the right delivery partner will have the technology in place to manage a surge in demand during a high-volume, volatile time of year.
At FRAYT, we serve as the go-to last mile delivery partner for solar installation companies and other industrial suppliers, helping them delight their customers and get ROI from their delivery programs. We offer everything listed above — plus a presence in major markets across the United States.
If you’re ready to take advantage of year-end solar panel installation opportunities, we’re here to help. Take the first step toward shipping with us.
