High interest rates and other issues threaten the residential solar market in 2024  2024 Trends in Solar

As of | January 9, 2024. In 2023, the residential solar industry faced significant challenges. Continuous supply chain disruptions became commonplace and the savings benefits of rooftop solar became less distinct when the prices of utility electricity remained steady in 2022. The passage of NEM 202022 in California resulted in a sharp drop in solar stocks and massively limited the country’s biggest residential solar economy. This situation led to some residential solar contractors shutting down their businesses or letting go of their workers. The mid-sized rooftop solar installation company, New Mexico Solar Group, ended up closing its business in August of the previous year after laying off its workers. The firm was not the only one. In 2023, Solar Insure, a warranty company, recorded a never-before-seen 100 bankruptcies in the solar industry. The California Solar and Storage Association (CALSSA) has revealed that, in a span of six months, approximately 17,000 workers in the solar industry were made redundant in California alone, with some firms slashing their staff numbers by 50%. Moreover, higher interest rates have led to an increase in solar financing terms nationwide.