Tag Archives: Residential Solar Market

U.S. solar industry battles ‘white privilege’ image problem

By Nichola Groom, Reuters

Solar power companies have an image problem—and they are beginning to do something about it.

Despite a sharp drop in the price of solar panels and innovative financing plans that have brought the technology to many middle income households over the past decade, it is still seen as a luxury only rich, mostly white, consumers can afford. That perception both hampers solar expansion in less affluent communities and drives political opposition to initiatives promoting greater use of solar power as a renewable alternative to gas, oil and coal.

Though it has grown dramatically in recent years, solar power still makes up less than 1 percent of U.S. energy supplies and relies heavily on government incentives to compete with traditional energy sources. Those incentives help companies such as SolarCity, Sunrun and others market solar power contracts that offer customers 20 percent savings on their energy bills. However, the schemes come with certain credit requirements and are ill-suited for apartment dwellers, homes with low monthly bills or low-income households that qualify for reduced power rates.

Since minorities make up a disproportionate number of low-income households, some advocacy groups have opposed certain solar power initiatives arguing that they deepen social and racial inequality. Solar companies are now trying to tackle both the perceptions and the economics by pushing to diversify their workforce, forging alliances with minority groups, and making solar power more suitable for multi-family housing.

The stakes are particularly high in California, by far the top U.S. solar market where solar power is expected to make up more than 10 percent of the state’s power generation in 2015, according to IHS. Communities with median household incomes below $40,000 account for just 5 percent of installations in the state even though a third of California households fall into that category. That share has not changed over the past seven years even as solar installations in communities in the $55,000-$70,000 income bracket have risen to more than half of the total market.

Read full article from Reuters

Investors React Positively to SunEdison’s Restructured Plan to Buy Vivint Solar

By Stephen Lacey, Greentech Media

SunEdison shares jumped more than 14 percent today after the company revised the terms of its acquisition of residential installer Vivint Solar.

In July, SunEdison unveiled a $2.2 billion plan to acquire Vivint in cash, stock and convertible notes. Investors were not thrilled with the terms of the deal, however, and SunEdison’s stock declined precipitously over the following months.

Under the new agreement, SunEdison’s YieldCo, TerraForm Power, will pay $799 million in cash for Vivint’s residential portfolio — down from the original $922 million in cash. Vivint Solar shareholders have an option to purchase SunEdison’s common stock for an additional $0.75 per share.

Read full article from Greentech Media

New Report: Greatest Growth in Consumer Adoption of Solar Energy Among Middle Class

A new report on residential rooftop solar installations indicates the growth in California’s rooftop solar market is trending toward greater adoption by middle class households. The trend, seen over the course of eight years, aligns with a steady decline in the cost of solar power and in the increase of financing options.

The new study by Kevala Analytics analyzed California Public Utilities Commission (CPUC) solar interconnection data for 386,000 net metered solar systems installed from 2008-2015. The main takeaway conclusion from the study is that as solar deployment has expanded statewide, an increasing percentage of installations within that time frame are benefiting low- and middle-income median zip codes, with a decreasing fraction of installations in upper-income zip codes.

During these same eight years, there has been a steep decline in the adoption of solar among upper-income households contrasted with a recent increase in the market among the lowest-bracket incomes. In 2015, the statewide number of households in the highest income brackets matched the number in the lowest income brackets.

Read full press release from CALSEIA

The Silicon Valley Idea That’s Driving Solar Use Worldwide

By Mark Chediak & Christopher Martin, Bloomberg News

Silicon Valley has something to offer the world in the drive toward a clean energy economy. And it’s not technology.

It’s a financing formula. In a region that spawned tech giants Apple Inc. and Google and is famous for innovators and entrepreneurs like Steve Jobs, a handful of startups began offering to install solar panels on the homes of middle-class families in return for no-money down and monthly payments cheaper than a utility bill. This third-party leasing method — which made expensive clean energy gear affordable — ignited a rooftop solar revolution with annual U.S. home installations increasing 16-fold since 2008, according to the Solar Energy Industries Association and GTM Research.

“There is a reason why California is a tech Mecca for the world because the infrastructure is here to attract that talent,” said SolarCity Corp.’s Chief Executive Officer Lyndon Rive, whose company popularized third-party solar leases for homeowners starting in 2008. “All the major innovation is going to occur in California. One of the innovations is the financing of solar assets.”

SolarCity took the leasing model that SunEdison Inc. first developed for the solar industry by a graduate student named Jigar Shah. SolarCity adapted that model for residential consumers in 2008 and many more offered similar arrangements including Sunrun Inc., which developed the first one in September 2007, and Vivint Solar Inc. And now the idea is spreading to other industries trying to sell expensive capital equipment that reduce pollution and fossil fuel consumption.

Read full article from Bloomberg News

Clean-energy lender Renovate America tops $1 billion in loans

By Ivan Penn, The Los Angeles Times

A leading clean-energy lender has topped $1 billion in loans for home improvements — a milestone for the San Diego company as well as a once-foundering government program to encourage projects that reduce electricity or water use.

Renovate America got into the business in 2011 as the Property Assessed Clean Energy financing program, or PACE, was struggling to overcome opposition from mortgage lenders and federal housing regulators that had stalled the clean-energy lending effort. Since then, the lender has provided money to 44,000 households for efficiency projects in partnership with local governments using the Pace program. That represents not only a fast-growing source of revenue for Renovate America but also a gauge of the improving health of PACE programs.

PaceNow, a nonprofit organization that tracks use of the Pace programs nationwide, lists Renovate America as the top operation of lender among more than 100 members. Renovate America is the only one to reach $1 billion in financing, with more than 90% market share of all Pace programs, which operate in conjunction with local governments in 32 states and the District of Columbia.

Read full article in the Los Angeles Times

Rooftop Solar Brings Higher Home Appraisals

By Katherine Tweed, Greentech Media

Homes with rooftop solar are appraised at a higher value, according to new research from Lawrence Berkeley National Laboratory.

For the past few years, Berkeley Lab has been collecting data on the value of homes with solar photovoltaics compared to those without PV. Early studies relied on modeling and found that buyers were willing to pay an average of $15,000 more for a home with a solar PV array. Another study from January, based on survey data, found that homebuyers were also willing to pay a premium for leased systems.

The latest piece of research furthers those findings by assessing appraisals for PV homes in six markets within Oregon, California, North Carolina, Florida, Pennsylvania and Maryland. The appraisal premium ranged from about 3 percent to 6 percent based on the region, with a price boost of about $10,000 to $22,000. The valuations were based upon PV homes compared against comparable non-PV homes by local appraisers.

Read full article from Greentech Media

Power companies may have found a new way to crack into the booming solar business

By Chris Mooney, The Washington Post

There’s a tense dynamic accompanying the rapid growth of solar in the United States—in which traditional utility companies, nervous about the spread of rooftop solar panels, are seeking ways to limit the compensation earned by solar customers for the extra electricity they provide to the grid—a system known as net metering.  This battle over net metering has been often depicted as a zero sum conflict between an upstart and an incumbent, but new research out of the University of Texas at Austin suggests there could be a kind of “middle ground” in the conflict between some utilities and solar installers.

The potential “win-win,” as the researchers put it, involves community solar—solar energy projects or panels that are in effect shared by a group of people. Their research suggests that community shared solar has the potential for “stabilizing the customer-utility relationship with deeper solar penetration.”

The new study, recently published in Energy Research & Social Science, found that at least some utility companies seem to like community solar programs, are already offering them, and plan to expand them. One key reason? Customers clearly want access to solar, and some utility industry representatives find community solar to be a great way to give it to them—in a manner that allows the utility to continue to service these customers’ full electricity demand, that is.  The research also suggests that community solar is yet another way—beyond getting directly into the business of installing rooftop solar—that traditional power companies seem to be finding their way into the hot residential solar market.

The state of California has even mandated that its three main utilities — Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric — begin to offer community solar programs, and on a large scale. The utilities are slated to set up 600 megawatts of community solar capacity by 2019.

Read full article in the Washington Post

California’s Solar Industry Fights Back on Net Metering 2.0

By Jeff St. John, Greentech Media

California’s biggest utilities want future net-metered rooftop solar systems to earn less for the energy they feed to the grid and solar customers to pay extra charges to cover the costs of serving them grid power.  California’s solar industry has a different idea: keep things the way they are — and don’t believe utilities when they say they and their non-solar customers can’t afford it.

In filings this week, key solar groups The Alliance for Solar Choice (TASC), the Solar Energy Industries Association (SEIA) and Vote Solar have asked the California Public Utilities Commission to retain key features of the state’s net metering regime, including full retail payments for the power that rooftop solar systems feed back to the grid. That’s in stark contrast to proposals from the state’s three large investor-owned utilities, which ask the CPUC to lower payments, impose new charges, and make other changes that would reduce the economic payback of future net-metered solar systems. Utilities say that today’s net-metering regime unfairly slants compensation toward rooftop solar and will impose billions of dollars of cost shifts to non-solar customers if not changed.

Read full article from Greentech Media

The Battle for Third Place in the US Residential Solar Installer Race

By Mike Munsell & Nicole Litvak, Greentech Media

Sunrun, located in North Hollywood, CA fresh off of its IPO announcement, has something else to celebrate. In the first quarter of the year, it installed more residential solar than any other firm not named SolarCity or Vivint Solar. That’s according to the latest edition of GTM Research’s U.S. PV Leaderboard, released today.

While SolarCity and Vivint continued to dominate the U.S. residential solar market with a combined market share of 45 percent in Q1 2015, it’s a close race for the No. 3 spot. Sunrun installed 3 percent of U.S. residential solar in the first quarter of the year, and Sungevity and NRG Home Solar were close behind, both installing 2 percent.

Any of these three firms have the potential to be the third-ranked installer by the end of 2015. Nicole Litvak, senior solar analyst at GTM Research, provides the case for each.

Read full article from Greentech Media