| After years of fast and expensive growth, America’s residential solar companies are wilting under high interest rates and less favorable state incentives. High interest rates have been a double-whammy for the rooftop solar business: Not only do solar companies rely on debt to fund their installations, but customers also tend to finance their purchases. Making matters worse, California, the biggest market for home solar, last year reduced the amount that rooftop solar systems can get for selling excess electricity back to the grid by 75%. Rather than offering dollar-for-dollar buy-back, they reduced it to 25 cents per dollar. The state of California argues that this reduced buy-back rate will encourage homeowners to opt for home battery storage, rather than sending electricity back to the grid for credits. Overall, the challenges facing residential solar companies underscore the need for adaptation and innovation in the industry. |
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