There were 1.2GW of US residential solar installations last year, of which 72% was third-party owned (TPO) through leases and power purchase agreements (PPAs), according to a GTM research study.
The report, ‘US Residential Solar Financing 2015-2020’, found the remaining 28% was directly owned by customers, but mostly through loans.
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Financing options, particularly leases, have been a major driver for the residential solar market to grow in 15 of the previous 16 quarters, GTM found. For example, TPO has given consumers across many demographic and socioeconomic categories the ability to afford solar installation when they otherwise would not.
The report found that three companies financed 56% of all U.S. residential solar installations in 2014
- SolarCity 34%
- Vivint Solar’s 12%
- Sunrun’s 10%
Other leading finance providers included SunPower, NRG Home Solar, Sunnova and Clean Power Finance.
GTM also forecast that direct ownership will surpass third-party ownership of the US residential solar market by 2020, accounting for 54% of the forecasted 5.2GW market.
GTM Research senior solar analyst Nicole Litvak said: “The solar loan market has exploded. Every TPO financier has introduced or is planning to introduce a loan, and an entirely separate group of pure-play loan providers has emerged. Many of these new loans are structured such that they offer customers the same year-one savings as a lease or PPA.”
