News Article
Gold Rush For U.S. Solar Incentives Coming To An End
Solar Renewable Energy Credits (SRECs) have created a gold rush of solar installations in U.S. states like Massachusetts, Ohio, Maryland, Pennsylvania and New Jersey. However, these self-correcting incentive programs may significantly dash future market growth expectations, according to PHOTON Consulting's new U.S. solar market study, End of the Gold Rush: Crash of U.S. SREC Markets? According to the study, the rush to install solar power is leading to considerably more SREC supply than utilities are required to buy. This means many homeowners and businesses with solar installations may be left in the cold without the paybacks they anticipated, a situation already occurring in New Jersey and Pennsylvania.
"Suppliers, developers, installers, financiers and customers looking to lock in high returns in U.S. solar should move cautiously with their project risk appetite, SG&A and expansion plans in the Mid-Atlantic and Northeast markets," says PHOTON Consulting consultant and study co-author, Chris Bolman. "Imminent IRR risk in several of the country's largest solar segments doesn't quite support the straight-shot growth story a lot of market participants are looking for in U.S. solar."
PHOTON Consulting's End of the Gold Rush report details trends, market segmentation, customer economics and outlooks for key U.S. state SREC markets, including SREC prices, supply and demand from 2010 to 2014. Directed toward solar industry executives, financiers, third-party system-owners, suppliers, installers, load-serving entities, policy makers and customers, End of the Gold Rush is an informative, actionable reference for navigating the rapidly evolving U.S. solar market.