GTM: US residential solar purchases to top leasing in 2017

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
US Residential Solar Financing 2016-2021. Source: GTM Research

Direct ownership of solar panels is set to overtake leasing in 2017 for the first time since 2011, according to new analysis by GTM Research.

55% of all US residential solar capacity installed next year will be purchased by customers either paying in cash or with a loan, replacing third-party ownership. GTM Research also forecasts that 73% of all solar systems sold in 2021 will be owned directly by customers.

This transition will cause bumps in the road as the residential sector undergoes changes in business models and the competitive landscape shifts.

“The solar loan market is much more fragmented than the leasing market ever was,” said report author Nicole Litvak. “Installers and homeowners have access to more companies financing loans as well as multiple options for loan tenors, interest rates, and dealer fees.” According to the report, Mosaic was the leading solar loan provider in the first half of 2016.

The decline of solar leases and PPAs is spurring the waning in popularity of third-party ownership. However, in terms of megawatts, third-party ownership will remain relatively flat, GTM said, while direct ownership will continue to grow.

The main reason for this shift can be attributed to large residential installers like SolarCity and Vivint Solar slowing down in their deployment of leases. Local installers who are experiencing more rapid growth than their national counterparts, are selling more systems for cash. In addition, state law plays into the transition; with legislation in markets such as Florida and Utah barring PPAs, forcing installers to sell directly to customers. 

Read Next

December 2, 2021
Enel Green Power has named Paolo Romanacci as the new head of its North America division, overseeing all renewables activities in the US and Canada.
December 1, 2021
Major US bank Wells Fargo has closed its maiden tax equity investment into a colocated solar-storage project currently under construction in New Mexico, US.
December 1, 2021
Tech major Amazon has added a further 2GW to its committed utility-scale solar PV capacity, adding projects in the US and Europe to its renewables portfolio.
November 30, 2021
JinkoSolar has slashed its shipments guidance for the year, reducing its top end guidance by more than 5GW as it blamed ongoing logistics issues and port blockages.
November 24, 2021
The US International Trade Commission has recommended that the Section 201 safeguard tariffs on solar cells and modules be extended.
November 15, 2021
US solar manufacturers behind the controversial anti-circumvention petition have said they are “evaluating all options” and could refile petitions in the future.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal