Recent developments in the residential solar industry highlight a mix of growth and challenges. The Biden-Harris administration has announced a significant $7 billion investment through the “Solar for All” program, aiming to bring solar energy to over 900,000 low-income households. This initiative is expected to create hundreds of thousands of jobs, save $8 billion in energy costs for families, and reduce greenhouse gas emissions significantly.

In the broader market, residential solar installations grew by 24% in 2023, driven by improved supply chain conditions and a rush to install solar systems in California before the implementation of the less favorable NEM 3.0 policy. However, high interest rates and changes in California’s net metering policies are expected to lead to a 12% contraction in the residential solar market in 2024. Despite this, the market is projected to recover in 2025, with an average annual growth rate of 10% between 2025 and 2028.

Moreover, the Federal Energy Regulatory Commission (FERC) reports that solar has been the largest source of new generating capacity in the U.S. for six consecutive months, surpassing even wind and natural gas. Solar’s share of total installed utility-scale generating capacity is now 8.21% and is expected to continue growing rapidly.

In contrast, ADT Solar has announced its exit from the residential solar business, citing various operational challenges. This decision has raised concerns about the impact on warranties and ongoing projects, particularly for customers in the midst of installations.

These developments indicate a dynamic period for the residential solar market, marked by significant federal investments aimed at expanding access to solar energy and a rapidly evolving industry landscape.

CONTACT US

FOLLOW US