The past five years have been a whirlwind for Energy Concepts Enterprises, the solar panel installation company in Fresno, California. However, in 2023, their business took a nosedive, with sales plummeting by 75%. This decline is part of a larger trend in California, the leading market for residential solar, which is expected to see a 41% drop in installations in 2024. The high interest rates and new net metering rules have led to longer payback periods for homeowners, making solar installations less appealing.
Despite these challenges, there is hope for a rebound. The extension of the 30% solar credit and potential decrease in interest rates in the future could bring about a larger rebound than that seen after the 2017 slump. However, the impact of these changes is being felt nationwide, with the potential for other states to follow California’s lead. This has raised concerns among solar installers about the future of the residential solar industry.
All in all, the future of residential solar is uncertain, with several factors contributing to the current slowdown. While challenges persist, there is potential for a greater rebound in the years to come, as the industry adapts to these changes.
