Insights Newsletter #12
Reflecting on the solar industry in 2023, and predicting what's to come in 2024.
Happy New Year!
Welcome to the latest edition of the Solar Business Insights bi-weekly newsletter!
Stay up to date on the latest solar market trends, technology, policy updates, and more. We research each topic and gain insights from solar professionals. Our goal is to provide everything you need to know about solar business, all in one place.
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Solar Energy News
Rooftop solar faced many challenges in 2023 as regulatory policies like net metering were challenged. Many homeowners are increasingly pairing solar panels and home battery storage to utilize self-generated clean energy to counter this. Solar plus battery systems benefit homeowners' bottom line and contribute to grid stability by participating in Virtual Power Plant (VPP) programs.
Many companies are beginning or growing VPP programs. For example, Enphase has gained approval for its IQ Battery 5P to join VPP programs in major markets like California and Long Island, NY. In addition, utilities in California have created incentive programs to reward participants for stored electricity during peak demand times.
The phase-out of net metering in various US markets may impact the economic viability of standalone solar panel systems, which could decline demand. Solar businesses must adjust and find ways to continue delivering value. Stay competitive and consider diversifying your offerings by exploring innovative partnerships such as VPPs.
Market Trends
Solar Power World wrote about 10 solar, battery storage, and energy predictions for 2024. Here are a few points that caught our eye.
Utilities in other US states will follow California’s lead to end net metering.
Residential solar revenues in California will decrease by 50%.
A national-scale solar installation company will file for bankruptcy.
These predictions highlight the need for your solar businesses to stay agile in your offerings and closely monitor regulation changes to determine what they mean for you. Adapting to market changes, embracing technology, and maintaining financial resilience is key to navigating potential challenges and seizing opportunities.
Read all 10 predictions here, keep in mind that this Solar Power World article is opinions by the author.
Solar Innovation
Can AI benefit the solar industry? In short, yes, but not without challenges. This article by Technopedia goes into detail about the benefits and challenges of using AI to optimize solar panel systems. Here are a few key points.
AI-optimized solar panel systems by enabling remote monitoring, predictive analysis, and dynamic adjustments based on real-time data.
Integrating AI can provide significant cost savings by assisting with energy usage and consumption.
Despite the many benefits, challenges include upfront costs, data security concerns, privacy regulations, and the lack of seamless integration capabilities.
Clean Energy Funding
Reflecting on 2023, the Infrastructure Investment and Jobs Act (IIJA) and the Investment Reduction Act (IRA) played a significant role in the solar industry. For example, the passage of the IRA resulted in:
72 GW of solar interconnected in one month
Mitigated the impact of higher interest rates
34% solar investment growth
51% increase in storage
In 2024, the market offerings for solar and storage are expected to be shaped by tax credit adders. The US Treasury’s guidance on energy and low-income community adders from Q4 of 2023 is particularly relevant to community solar developers. This guidance may drive an increase in third-party-owned solar and storage projects.
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Have a great weekend!
SBI Team
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