Insights Newsletter #7
Learn about the latest updates from the solar industry including AI technology, market trends, and important policy changes.
Happy Friday!
Welcome to the latest edition of the Solar Business Insights bi-weekly newsletter! We’re happy you’re here.
Stay up to date on the latest solar market trends, technology, policy updates, strategies, 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.
Each newsletter starts with a question with answers from the solar business community.
Question of the week:
Q: What is your long-term outlook on the solar industry? Any opinions or predictions?
A: “It’s going to be rough for a year or so, many companies won't make it. Solar panels and batteries are 100% the future with rising utility rates, electric vehicles, etc. Whoever can be those who stick through the hard times will succeed.”
Have a question, idea, thought, or comment?
Solar Market Trends
Shining Bright: According to the latest “Energy Infrastructure Update” report from the Federal Energy Regulatory Commission (FERC), solar energy is stealing the spotlight, providing 8,980 MW of new domestic generating capacity. For reference - solar capacity increased by 35% so far this year compared to the same period last year.
FERC expects another 83,878 MW of solar from September 2023 to August 2026 – sunny days ahead for solar businesses!
PPA Price Pep Talk: Solar leases and PPAs are common financing options in the solar industry to help customers afford solar without the hefty upfront costs or maintenance hassles. The latest report from LevelTen Energy shows a 4% increase in PPA prices from Q2 to Q3 this year. Compared to 2022, prices are up 21%. Yikes.
Why? PPA price increases are attributed to many reasons, including rising costs for developers, including materials and labor, developers adjusting prices to balance the impact of tax credits, high interest rates, and other regional factors.
What can you do about it? Cost is a key factor in a customer's decision to install solar. PPAs are a popular option, so it is important to address these challenges.
Streamline operations to reduce labor and material expenses
Explore innovative financing solutions to reduce the impact of rising interest rates
Negotiate favorable PPA terms, such as fixed prices for predictable customer costs.
Strategically partner with others, like utility companies or energy cooperatives, to leverage collective resources.
AI Technology in the Solar Industry
Artificial Intelligence (AI) has entered the solar industry. If your business does not adopt and utilize AI tools, there is a high probability you will fall behind. AI is a helpful tool to accelerate and enhance operations but is not a replacement for people. AI saves time by assisting repetitive or monotonous processes, which allows more time to complete tasks you would rather do.
How is AI helping the solar industry? Suntuity Renewables launched an AI-powered sales process to help reduce the costs associated with a live sales agent, such as commission. The AI solution reduces the average price per watt to about $2.80, saving customers a significant amount of money.
Another way AI is enhancing the solar industry is through Transect’s Solar Pulse – an AI sentiment tool aiming to track attitudes towards solar over time to help businesses and policymakers understand public perceptions.
This AI tool is still in beta testing, but the company’s goal is to gain more understanding of community perceptions to help solar developers gain public support and contribute to economic development to encourage a sustainable future.
Regulatory Policy & Incentive Updates
Another report drop: The NC Clean Energy Technology Center (NCCETC) released “The 50 States of Solar” report for Q3. Here are the key points:
A total of 39 US states (plus DC and Puerto Rico) made some kind of solar policy action during Q3 this year.
47 address net meter, 44 for residential fixed charges/minimum bill increases, and 38 for community solar.
States with the most actions include CA, NC, NY, HI, ME, & NM.
Some trends highlighted in the report include:
US states are using incentives to encourage solar adoption in low-income communities.
Utilities are working to get everyone on the same page about distributed solar generation compensation.
States are chasing incentives for rooftop and community solar.
Jobs in the Solar Industry
Prior to the Covid-19 pandemic, the energy sector was the fastest-growing US job market. Jobs in the renewable energy industry made up 40% of all energy jobs in 2021, based on data from DOE.
As the US sets climate goals, there must be jobs to support the transition and people to fill those roles. There are many career paths, such as a roofer, solar installer, salesperson, marketing specialist, and many more. The possibilities are truly endless.
Interested in a new opportunity in the solar industry? Make a profile on Waivolt, the premier platform connecting talent with solar companies. Create your profile, highlight your skills and experience, and unlock your next solar-powered journey.
Are you hiring? Create a profile for your solar business on Waivolt to expand your team and find the perfect candidate.
Grow Your Solar Business with SBI
The SBI newsletter reaches nearly 5,000 solar business professionals. Connect with our team to have your press release, project, and other news shared in the next edition.
Upcoming Events & Conferences
November 7-8: Energy Storage North America
November 8-9: NY Solar Summit (NYSEIA)
November 15: Solar+ Manufacturing Summit
That’s all for today, have a fantastic weekend!
The purpose of this newsletter is to stay informed on business in the solar industry. Advice or opinions may be included, but any actions taken are at your own risk. This page includes some referral links, meaning we may earn a commission if you make a purchase, it is not an added cost. By using our referral links, you are helping support Solar Business Insights. Please contact us with any questions.