Page 18 - North American Clean Energy November December 2015

solar energy

Innovations in Residential Solar Financing

- Fueling PV adoption in the U.S.

by Stephane Dufrenne

Figure 1 Figure 2

unprecedented growth in the solar market as a whole, environmental impact, but also an opportunity to reduce—or even eliminate—monthly
LAST YEAR THE U.S. WITNESSED
where a solar photovoltaic (PV) system was installed in America every 2.5 minutes. To put electric bills.
this in context, just 10 years ago, this igure was closer to one system every two hours.
Although the prices of PV modules themselves have remained relatively stable since 2012,
So far in 2015, the total operational solar PV capacity in the U.S. has soared past the 20 there is still a continuing decline in overall PV system pricing. (Figure 2) he Department
gigawatt (GW) milestone, with 1.393 GW of PV in the second quarter alone. According
of Energy’s Lawrence Berkeley National Laboratory (LBNL) attributes this to reductions in

to the Solar Energy Industries Association (SEIA) and GTM Research U.S. Solar Market solar “soft” costs, such as marketing and customer acquisition, system design, installation
Insight report, this marks the seventh consecutive quarter in which the U.S. added more labor, and permitting and inspections. For example, installation costs alone are heading for
than 1 GW of PV installations. In total, a whopping 40 percent of all new electric generating their sixth consecutive year of decline.
capacity brought online in the U.S. throughout the irst half of 2015 came from solar. With such a dramatic drop in price, more consumers are inding solar to be a valid

(Figure 1)
economic choice in an increasing amount of regional markets across the U.S. However,
By far, the residential solar sector is experiencing the most growth and seems to be it must still be noted that the initial cost required to install a solar PV system remains a
continually propelling PV capacity in the U.S. to new heights. In 2014, more than 186,000 hurdle for some homeowners. Traditionally, those looking to go solar have turned to leases
residential systems were installed across the country—a 50-percent increase over 2013, and power purchase agreements (PPAs). While leases and PPAs have certainly succeeded

and the third year of such growth—and appears to be on track to break this record in 2015. in reducing the upfront costs of PV systems, they also limit the economic beneit of going
So, what is fueling this explosion?
solar for the homeowner. his is because with a lease or PPA, the inancing institution, not
he biggest contributor to the booming residential market sector is prices have fallen the homeowner, takes control of all available rebates and federal tax credits. Lease terms

drastically, thanks to reduced equipment costs and expanded access to new inancing can also be quite rigid and potentially costly should a homeowner decide to move before its
vehicles. No longer reserved for the ecologically-minded homeowners, solar PV has terms are completed.
oicially hit the mainstream. Today, producing one’s own power means not only a reduced
With this in mind, the industry is seeing an uptick in the amount of homeowners who are
choosing to own their systems, either by purchasing them outright or by taking advantage

of compelling new loan programs. Unlike
leases and PPAs, loans enable homeowners
to retain the full environmental and
economic beneits of a PV system, while

also enhancing a property’s value for years
to come. Overall, this adds up to the best
levelized cost of energy (LCOE) on the
market.

A new class of loan programs is taking
• Commercial and things one step further, pairing high-
quality equipment providers with reputable
residential solutions
installers, enabling a direct equipment

• Flat roof pitch roof purchase for better cost savings, and
and ground mount
creating a one-stop solar shopping
experience for the homeowner and installer
alike. he most advanced loan options will
Now seeking
qualiiied dealers also come with a long-term operations
contact us today
and maintenance package, allowing the
homeowner additional peace of mind over
the lifetime of a system. (Figure 3)

Innovative programs like these, which
serve to simultaneously consolidate costs
and streamline the installation process,

18 nacleanenergy.com
NOVEMBER/DECEMBER 2015