Lux Research report notes shift from panels to installations leads downstream companies to success

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  Downstream companies such as SunRun are the new "faces" to watch in the downstream solar business.

In its new report, “Swimming Downstream: Evaluating Up-and-Coming Solar Installers and Developers,” Lux Research has noted that the shift in focus and investment from panels to installations has allowed for companies such as SolarCity, SunRun, Recurrent Energy, SunEdison and Solar Power Partners, to help the rejuvenate the downstream model.

"Downstream start-ups raised over $1 billion, with SolarCity, SunRun, Recurrent Energy, SunEdison and Solar Power Partners leading the way," said Matthew Feinstein, Lux Research Analyst and lead author of the report. "Solyndra raised a billion all on its own, but these downstream start-ups will achieve what Solyndra could not -- success," added Feinstein.

Lux reports that SolarCity is the dominant company among residential installers, but advised that it cannot afford to become complacent as it moves into the US northeast. The report acknowledged that as various companies partner with SunRun, SolarCity’s biggest competitor, the company needs to stay on its toes.

In the commercial and utility-scale sector, Lux admitted that there were not as many up-and-coming players. The research report cited Tioga Energy and Enfinity as the leaders in new large-scale developers with the acquisitions of Recurrent Energy, SunEdison and Solar Power Partners leaving the majority of large-scale development to companies such as First Solar and SunPower.

Lux’s report further listed some high-potential startup companies citing six solar installers in Inc magazine’s top 50 fastest growing companies in the US in 2011. These companies included Greenspring Energy, re2g, SunDurance Energy, OnForce Solar and FLS Energy.