As the solar industry gains momentum, it’s quickly becoming one of the most promising up-and-coming markets nationwide. According to a recent report issued by GTM Research and the Solar Energy Industries Association (SEIA), the industry kicked off the year with its most profitable quarter to date. The report revealed that while the utility solar market delivered impressive returns, rapid expansion in the residential sector accounted for a 53% increase in solar generation year-over-year.
Advocates of solar energy contend that its potential for long-term savings far outweighs the upfront cost of installation. But, upfront financing is a substantial obstacle for developers and owners of commercial properties who are struggling to regain financial stability in the wake of the recession. The GTM and SEIA report revealed that solar financing solutions now support more than two-thirds of residential solar installation in some states. The trend is expected to continue in the commercial market, especially as commercial development is on the rise nationwide.
The solar industry boom is heavily influenced by government funding, as is evidenced in California, where homeowners are eligible to receive a 30 percent federal investment tax credit in exchange for participating in solar utility programs. But, the cost of solar generation is expected to decline, which will spur growth in the industry by increasing its accessibility to an expanding customer base.
In particular, solar companies are working to cut soft costs by developing new market strategies and placing an emphasis on intuitive, accessible online tools. As technological advances catch up with solar industry demand, rapid expansion and record-breaking profits are expected to continue.
Please let us know if you’d like additional analysis on solar market trends. We’d love to use our industry expertise to help you find customized solar financing solutions to suit your specific needs.