Title: The State of the Solar Industry: Turbulences, Changes and What You Need to Know
Hello readers, let’s talk solar. It’s no secret that the solar industry faces its fair share of tests and trials. One major development that I deem crucial to the recent shake-up is the exit of a notable player in the residential solar business, ADT.
ADT, a well-known home security company, ventured bravely into the world of solar in 2021. They made their foray by acquiring an installer, Sunpro, spending quite a substantial sum. However, by the end of 2023, ADT decided to exit the residential solar industry completely, citing macroeconomic issues and concerns about the worsening conditions across the industry.
Now, you might ask, what does a home security company exiting the solar business mean for you as a homeowner considering solar panels for your home? And what does this mean for solar companies trying to stay afloat in these stormy waters? Let’s take a closer look.
ADT’s departure from the residential solar world gives us an insight into the broader, overarching challenges faced by solar companies. Even for a corporation with deep pockets, they encountered financial setbacks within their solar ventures, posting an adjusted EBITDA loss of $89 million. This financial upheaval, stemming from larger macroeconomic situations and industry-wide deteriorating conditions, reflects the current state of the solar industry.
Shedding more light on the matter, Solar Insure, which covers many California-based installation companies (a state that represents almost half of the U.S. solar market), states that a staggering 75% of solar installers now fall into the ‘high risk’ category. These alarming numbers come on the heels of policy changes and rises in interest rates, painting a sobering picture of the struggles faced by solar companies.
But what about you, the homeowner thinking about installing a solar array for home use? What does all this turmoil mean for you? Simply put, it means caution. In the current turbulent climate, it is essential to choose a solar company wisely, considering their financial stability, trustworthiness, and long-term viability. Given the wave of recent solar installer bankruptcies with the expectation of more to come, it makes it crucial to ensure the solar company you choose won’t vanish midway through your solar panel installation or leave you stranded with no support further down the line.
Despite the turmoil, the solar industry continues to advance, driven by a global push for sustainable energy and technological innovations. Solar power remains a viable and sustainable energy choice for homeowners. Navigating the industry’s ups and downs and making the right choice seeks patience, research, and understanding the ebb and flow of this industry.
Next time, I’ll delve more into how to choose a reliable solar company and what to consider before installing solar panels for your home. Remember, knowledge is power, and in this case, that power is as bright as the sun. Stay tuned, and let’s continue to bask in the merits and challenges of solar, together.
Original Article: https://pv-magazine-usa.com/2024/01/25/adt-security-exits-rooftop-solar-business/
