Residential solar PV in the US: Key market research findings
- Favorable policies and incentives to drive market growth
- Third-party financing to boost growth in the market
- Key vendors – NRG Energy, SolarCity, Sungevity, Sunrun, Verengo, and Vivint Solar
Technavio’s market research analysts predict the residential solar market in the US to witness rapid growth in terms of revenue between the period of 2016 to 2020. The introduction of favorable federal and state-level policies and incentives will foster the widespread deployment of renewable energy technologies like solar photovoltaic (PV) systems in the US. Investment tax credit or solar tax credit is one of the key federal policies that has triggered the large-scale deployment of solar systems in the region. Since its implementation in 2005, it has boosted market growth by around 76% and has proven to be a huge success, especially in terms of residential and commercial solar PV installations.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“In the recent past, there have been significant advancements in battery storage technology, which has compelled several countries to set up research labs and provide funds for the development of technologies like aqueous solar flow and solar air batteries. Besides, various organizations are also taking initiatives through the introduction of policies that are aimed at reducing the cost of lead-acid batteries, improving energy security and project life cycle, and avoiding high loads in power plants,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
At present, the growing preference for third-party financing will stimulate the installation of solar PV systems across the US. This mode of third-party-owned (TPO) financing is gaining widespread acceptance among end users because it does not involve any upfront cost and provides an option of two different financing methods. In the first model of power purchase agreement (PPA), a solar PV developer installs a system on the customer’s property and the power generated from this system is sold back to the customer at a lower rate than the rates offered by the utility companies. In the second model of solar PV leasing, the customer is required to sign a contract with a solar PV developer and pay for the solar PV system over a period of time instead of paying for the energy generated.
The key vendors in the residential solar market in the US include NRG Energy, SolarCity, Sungevity, Sunrun, Verengo, and Vivint Solar. The residential solar market in the US is highly fragmented due to the presence of well-diversified international and regional providers in the market space. An increase in product extensions, technological innovations, and strategic M&A are likely to intensify the level of competition among the vendors.
A more detailed analysis is available in the Technavio report, Residential Solar Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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