A new report from GTM Research, titled US Residential Solar Financing: 2014-2018, has shed some light on the large financing transition within the US residential PV market in 2014.
According to the report, the share of third-party ownership (TPO) of PV solar, which has increased from 42% in 2011 to 66% in 2013, is set to reach its apex in 2014 at 68%.
By 2018, TPO is expected to fall back down to 63%, mostly due to the growth of residential PV loan programmes and different financing frameworks that will direct the trend of residential PV back towards direct ownership.
Nicole Lityak, author of the report and research analyst for GTM, said: “Solar loans are becoming widely available with many more options to choose from than in the past, and declining systems costs are making direct ownership affordable for more homeowners. As a result, the share of third-party-owned solar has already begun to come down in leading state markets, including Arizona and Massachusetts.”
All aspects of the US residential sector will see growth this year, meaning that TPO providers will need to generate over US$26 billion from 2014 to 2018 in order to meet consumer demand for solar leases and power-purchase agreements (PPA). So far, TPO providers have raised US$9.5 billion in funding.
According to GTM Research, the US residential PV sector will expand beyond 1GW for the first time this year.
Lityak continued: “The residential solar financing market remains just as complex as ever. The recent trend has clearly been toward vertical integration – the SolarCity model – but we expect companies such as Clean Power Finance to retain their pure focus on financing and services for smaller installers.”