Residential Solar Continues To Blow Past Expectations
The U.S. residential solar segment grew by 473 MW during Q2, which accounts for approximately one-third of total added solar PV capacity.
Given the enticing value proposition of residential solar products, such high growth will likely only continue.
The obstacles facing residential solar are likely overblown, making residential solar companies a great investment opportunity.
The U.S. solar PV market continues to transform in a dramatic fashion, with residential solar rapidly moving to the forefront of the industry. According to GTM Research and SEIA’s recent Q2 report, 473 MW of residential solar was installed in the United States. Given residential solar’s current growth rate, this segment is extraordinarily close to surpassing the utility-scale solar segment in terms of added capacity. In fact, quarterly installations for the utility-scale segment(which came in at 729 MW) stayed relatively flat YOY while installations for the residential solar segment grew by a whopping 70%.
The transition towards distributed solar is clearly happening much faster than most had expected. Whereas utility-scale solar is somewhat stagnating, residential solar is growing at rates well above the industry average. What’s more, the utility-scale solar segment is expected to be much harder hit by the 2017 solar ITC step down. This means that residential solar companies like SolarCity (NASDAQ:SCTY), Sunrun (NASDAQ:RUN), and Vivint Solar (NYSE:VSLR) are primed to dominate the U.S. solar landscape. While the residential solar segment will have its own unique challenges in the form of political battles and a major utility pushback, this segment clearly has the most promise.