Residential Solar Market Growth: A Bridge Strategy Group Perspective
The Solar Energy Industries Association (SEIA) continues to announce impressive results for solar PV installations. In Q1 2014, total new installations exceeded 1.3 GW – the second largest quarter ever. This figure included 232 MW of residential solar and 225 MW of commercial solar. While the totals are impressive, the real story is the growth of the residential segment. Fueled by generous net metering policies and rapidly declining costs, this market segment is surging. Residential installations grew at a 60.3% pace from 2012 to 2013.
This white paper includes Bridge Strategy Group's perspectives on consumer rationale for installing solar, potential for utility sales volume erosion, and the future trajectory of residential solar adoption. Our insights are driven in part by our proprietary solar model that evaluates a range of factors from rate structure, to net metering policy, to geographic distinctions, to project adoption across the key 250 utilities.
This ongoing trend is demanding that utilities respond to this growing challenge. With 43 states offering net metering, the challenge is widespread; However, solar PV creates opportunities for the first mover utilities.