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A survey of installers reveals typical loan terms, major equipment brands, and what to expect from system maintenance services.
Solar information site SolarReviews released its annual survey, sharing results collected from a group represented primarily by residential solar installers, as well as commercial installers, equipment suppliers, and utility-scale installers. SolarReviews features a solar calculator that allows potential customers to get an overview of the benefits of adding solar power to their roof based on data customized for their area.
Financing
With higher financing costs across the industry, 54% of U.S. installers reported that customers were less likely to apply for a solar loan over the past year, while cash offers have increased. About 49% of sales made were in cash, while 41% were loans. HELOCs, PACE loans, power purchase agreements and leases accounted for 10% of reported solar sales.
The main financing providers were Credithuman (15%), Mosaic (14%), Sunlight Financial (9%), Dividend (8%) and Clean Energy Credit Union (8%).
Typical loans for loaned systems varied widely depending on whether dealer commissions were assigned. Below are the average deadlines.
Rising financing costs have put pressure on the residential solar energy sector. Nearly half (49%) of installers said demand was down in 2023 versus 2022.
In California, where fees paid for exporting solar production to the grid were reduced by about 80%, about 69% of installers reported a decline in sales in California in 2023 versus 2022. However, 68% of installers reported having included energy storage batteries in their solar installations, approximately double the national average. Installers report an average payback period of eight years for battery solar systems, while standalone solar systems have a longer average payback period of about 10 years.
California was not the only state to reduce tariffs on solar exports, a process known as net metering. Georgia, Arizona, Kansas, Arkansas and Wisconsin saw an increase in installed systems not tied to a net metering agreement.
Best Products
Looking at the top brands of residential solar equipment, SolarReviews surveyed installers based on five criteria: performance and quality, brand reputation, product warranty, price, and product availability at dealers. Based on these five criteria, SolarReviews ranked Qcells as the highest performing panel brand.
Installers said the five most used panels were Qcells (53%), REC (41%), Canadian Solar (35%), Mission Solar (29%) and JinkoSolar (20%). About 19% of solar installers offer a single brand of panels, while most offer alternative options to meet their customers needs.
As for inverters, the five most used are Enphase (62%), SolarEdge (43%), SMA (23%), Sol-Ark (21%) and Tesla (21%). Tesla made a notable jump to the top five, achieving a greater market share than Fronius and Generac.
Enphase also appears as the most widely used battery energy storage provider, offered by 46% of installers. They are followed by Tesla (42%), SolarEdge (35%), FranklinWH (29%) and Fortress Power (18%). SunPower, Generac, LG Energy Solution and HomeGrid also have considerable market share.
Maintenance
Since solar energy is often a 25-year investment, post-installation services are a critical feature in a solar deal. Around 96% of installers have access to system monitoring, while 63% say they proactively check their clients installations at least once a quarter to ensure they are working.
The most common reasons for service, in order, were inverter hardware failure and replacement, inverter software and configuration issues, battery software updates, communications and monitoring fixes, roof leaks, inverter failure or replacement. battery hardware, wiring issues, and broken or underperforming panels.
“Fortunately, when problems do occur, they are usually covered by some type of warranty, so only in 15% of cases is the customer responsible for the repair costs,” says SolarReviews.
Outlook
The residential solar sector expects to recover from a difficult 2023, in which growth was slowed by high financing costs and unfavorable policy changes, such as the reduction of net metering rates.
“Some solar companies are still recovering from the events of 2023. 22% of solar companies say they have concerns that make them unsure if they can stay in business in the next six months,” he said. SolarReviews.
Despite this uncertainty, residential solar installers appear to have good prospects for 2024. About 54% of installers surveyed said they expect to sell more solar in 2024, and an additional 23% said they believe they will be able to maintain the same level of business next year.
In particular, the installers surveyed identified pv magazine as the media outlet they trust most for solar energy news and analysis, with 52% responding affirmatively. It is the second year in a row that pv magazine is the most trusted media. We appreciate you continuing to read us. |
