Revolutionizing Rooftop Solar: 2023’s Transformative Trends
The rooftop solar industry has made some significant shifts in 2023, and consumers keen on embracing clean energy are witnessing compelling transformations. With insights from the latest report by EnergySage, let’s dive into how these trends influence the market for potential solar adopters.
The Decline in Solar Costs
Breaking a trend that has persisted since 2021, solar panel costs have seen a notable decrease. Specifically, the average cost dropped by 3.5% to settle at $2.80 per watt according to the data from EnergySage. Moreover, a decrease in storage prices was also recorded for the first time, with a 6.4% reduction in the latter half of the year, signaling a potentially more cost-effective era for solar technology.
Financing Solar: Rates vs. Fees
The cost to finance solar installations plays a pivotal role for many consumers. While the median interest rate for financed solar solutions increased to 5.5%, a 25-year loan option at 3.99% was most frequently quoted. However, it’s crucial for consumers to be aware that lower interest rates often carry hefty fees – with the most quoted solar loan product featuring average fees that amounted to a staggering 47% of cash project costs.
Battery Storage: A Surge in California
In California, the interest in home battery storage has skyrocketed, climbing from the least interest to the fifth highest in the nation within the span of six months. This remarkable upturn is largely attributable to the introduction of the Net Billing Tariff (NBT) in April. The NBT is engineered to incentivize battery storage by crediting back to consumers based on the electricity’s value to the grid, aiding in both grid balance and electricity cost management.
As an embodiment of EnergySage’s findings, we can look at Sunrun, America’s premier solar installer, which recently reported an increase in storage attachment rates, from 15% to 45% by Q4, with installation of 219.7 MWh. They noted that current sales activities have spiked to 48% on a national level, with California leading the way, where over 85% of new customers chose to include storage along with their solar systems.
Charlie Hadlow, COO of EnergySage, provides a broader context to these trends. He notes that despite challenges such as changing net metering rules and inflation, the market appears to be approaching a turning point. With strong consumer demand and a fall in solar and storage costs, EnergySage Marketplace data reveals optimism for a dynamic yet resilient future in the home electrification sector for both installers and homeowners.
The progressive shifts in 2023 showcase the rooftop solar industry’s adaptability and growth potential, leaving consumers and industry professionals alike with much to consider.
