The home solar business is growing fast as thousands of homeowners install panels on their roofs to save money. Yet the biggest companies that install and finance home solar systems are reporting hundreds of millions of dollars in losses.
Let's get one thing clear: While the solar industry isn't collapsing, it isn't at its peak. "It definitely is a tough time for the residential solar market ," Gaston said. Considering Solar Panels?
The solar industry is chock full of contradictions right now. For all the good news -- big federal incentives and ever-increasing interest in renewable energy -- there's also been some not-so-great news, with some solar installers slashing jobs or closing down entirely. It's led some to openly wonder: Is the residential solar industry going down?
Some companies are having trouble surviving and making money installing panels because of intense competition and the high costs of doing business. Solar panels atop a home in Brooklyn. Home solar installations, measured by their power capacity, grew 17 percent last year. Karsten Moran for The New York Times
With a lease or power purchase agreement -- known as "third-party ownership" in the industry -- you're paying a rental fee or a per-kilowatt-hour charge for electricity, but someone else owns the panels on your roof. So if that company goes under, you may be left with unusable panels on your home.
Its struggles also highlight why the residential solar industry is struggling in the U.S., Lezcano says. Solar companies are spending huge amounts of money on overhead, including sales and marketing, which makes panels more expensive for homeowners.