As a solar enthusiast, I’ve been eagerly keeping an eye on the changing trends within the solar industry. The residential solar market has recently experienced some impressive growth, but, as anyone involved in this industry knows, there’s always an ebb and flow.
Recently, I attended a webinar, hosted by Roth Capital Partners, which provided a snapshot of the current conditions of the U.S. residential solar market. As a solar expert and blogger, it was essential for me to understand the evolving landscape, so I can help you navigate solar companies, select solar panels for your home, and establish a solar array for home use.
This year, experts anticipate that U.S. residential solar installations will decline by approximately 20%, due to the impact of high interest rates and policy changes. Despite these challenges, the industry, once the storm is weathered, is expected to slowly rise, like the perennial sun. Data suggests that installation growth in 2025 and 2026 will increase steadily between 5% to 10% year over year. A stable build within the market is projected across the next five years.
A change in the wind can be felt with the introduction of the domestic content bonus under the Inflation Reduction Act. This perk makes projects that comply with U.S.-made components eligible for a sizeable 10% tax credit adder. This means there’s a significant financial advantage available for customers – roughly $0.50 per watt.
However, growth rates of solar installations, battery attachment rates, and the choice of technology are not uniform across regions. For instance, according to Matthew McFadden, CEO of SunnyMac Solar, business has been steady in the Mid-Atlantic region (New Jersey, Pennsylvania, Maryland). And the outlook for 2025? A year-on-year growth of between 10% to 20%.
While the Mid-Atlantic has traditionally had a low battery attachment rate, with less than 1% of sales including energy storage, change appears on the horizon. With Maryland’s battery incentive program and developing legislation in New Jersey, battery attachment rates are expected to surge four to ten times next year.
Another intriguing perspective comes from CEO of Our World Energy, Caleb Antonucci. His firm witnessed a 60% surge in sales year over year in areas like Arizona, New Mexico, Colorado, and Texas. A shift toward the cost-effective combination of Tesla’s Powerwall 3 battery and inverter offers has the potential to capture significant market share in these regions.
Variously, there are predictions of steady growth in the market by the end of the year, spurred by emerging federal and state incentives and potential cooling of interest rates. There’s no arguing that demand will continue to rise, as increasing numbers of homeowners seek energy independence and financial savings from their utility bills.
So whether you’re someone who’s been considering solar for your home, or you’re already part of the solar family looking to extend your energy generation, it’s a fascinating time to participate in the solar industry. Illustrious days of plentiful sunbeams await us – and with that, the opportunity to harness this power for our homes and our planet.
Original Articlehttps://pv-magazine-usa.com/2024/07/17/u-s-residential-solar-down-20-in-2024/
