February 13, 2018 | By RGR Marketing Blog

What’s in Store for the Solar Market in the Year Ahead

Last year (2017) was a big year for the solar market. New cities forged ahead with solar incentives and tax credits, and the country’s solar market saw its largest quarterly sales to date. But there’s a new administration in place, time is marching on, and it’s not always easy to know exactly what lies ahead for solar sales in 2018.

According to GTM Research, it’s anticipated that “residential PV will experience its first down year ever. The U.S. home solar segment is expected to shrink by 3 percent this year.” Traditionally, residential solar sales have led the PV market growth, so a decline in residential solar sales may come as a shock. But it’s not cause for alarm — and here’s why…

The Solar Market Is Maturing

According to solar analyst Austin Perea, who is the lead author of the U.S. Solar Market Insight report, “Residential solar is just not seeing growth rates as high as in the past -- which is fine; it’s what happens when an industry matures, but it’s no longer fair to frame it as though rooftop solar is explosive.”

As an industry grows, markets change. You can’t expect sales to grow 30 to 50 percent year after year. And in the world of all things solar, there is a shift in who’s buying PV. The anticipated drop for 2018’s residential solar sales is actually a good thing, as it shows that other non-residential and utility buyers are now investing in solar energy.

Overall Quarterly PV Installations Still Show Market Growth

The good news is that as we watch residential solar sales slow in 2018, we can still expect to see growth in the solar market. As residential solar sales level out, other solar industry segments are expected to supplement the industry’s continued overall growth.

As community solar trends, it’s expected that non-residential PV will grow by 9 percent this year. Utility is also slated to drive solar sales this year. Coupled with the expansion of new states joining in solar use, the spike in utility solar usage is expected to sustain and grow (albeit slowly) the solar market.

The Future Looks Bright for Solar Energy

Despite anxieties surrounding our country’s political climate and the impacts of international relations and tariffs on the solar sales industry, we’re optimistic that the solar market will stand strong in 2018. Looking at data from 2017, the costs associated with installing PV steadily declined nationwide, creating better solar economics country-wide.

Likewise, as the cost of solar declines, we anticipate that solar will go mainstream. In some states, like Oregon, subsidies and tax credits are no longer offered to solar buyers because solar has proven its ability to compete with other traditional forms of electricity. Consequently, we’re confident that solar energy will continue to proliferate.

Takeaways for 2018’s Solar Market

While the solar industry growth won’t necessarily match the exponential growth solar sales witnessed in years prior, it’s important to stay committed to marketing. Position your company as a resource for utility markets, highlighting the benefits of solar energy. Or, outline the impact of the new tariff in a blog post, then offer how your customers can still save big by going solar.

With the ongoing changes in the market, 2018 is a year when you need to buckle down and remain optimistic about the mainstream rise of solar energy. And if your solar installation business could use a little boost to its bottom line, then 2018 may also be the year when your sales team should invest in buying high quality solar leads from RGR Marketing. Get in touch with us today and find out how.

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