Solar Power World

  • Home
  • Top Solar Contractors
  • Articles
    • Most Recent Posts
    • News
      • Latest News Items
      • Solar tariffs
    • Featured
      • Latest Feature Stories
      • Contractor’s Corner
      • Trends in Solar
      • The Solar Explorer
  • Policy
    • Monthly Snapshots
  • Markets
    • Residential
    • Commercial
    • Community Solar
    • Utility
  • Products
    • 2021 Top Products
    • Batteries and Storage
    • Inverters
      • Global Manufacturing Locations
    • Racking and Mounting
    • Software
    • Solar Panels
      • U.S. solar panel manufacturers
      • Global Manufacturing Locations
  • Subscribe
  • Resources
    • About SPW
    • Digital Issues
    • Event Coverage
    • Podcasts
    • Product Manufacturing Locations
      • Global Inverter Manufacturing Locations
      • Global Solar Panel Manufacturing Locations
      • U.S. solar panel manufacturers
    • Solar Classrooms
    • Suppliers
    • Videos
    • Webinars / Digital Events
    • Whitepapers
  • Leadership
    • Vote for the 2022 Leaders!
    • 2021 Winners
    • 2020 Winners
    • 2019 Winners
    • 2018 Winners

Trending in solar financing: Loans are leading as installers offer more solar financing options

By Kathie Zipp | June 19, 2017

Share
energysage solar loan financing

Most EnergySage users are choosing to own their systems, rather than use third-party owned financing.

With dropping solar equipment costs, solar arrays are becoming much more affordable for residential customers. As a result, more customers are opting to own their systems through cash or loans rather than through leasing or PPAs.

“For some customers, the monthly payment on a loan to own the system is about the same as what they’re paying on their energy bill, which is leading to a growth in solar loans,” said Mary Rottman, former president of the Solar Energy Finance Association, which has now merged with SEIA. “Customers are increasingly wanting to own their system and feel they’re getting 100% of the ITC benefits and the energy produced.”

In fact, more than half of U.S. residential solar capacity installed this year is expected to be purchased through customer ownership, according to GTM Research’s U.S. Residential Solar Financing 2016-2021 report.

Much of this comes from larger installers such as SolarCity and Sunrun moving toward ownership financing options, especially in California.

More loans being offered means additional competition, as more financing companies enter the market. In its Solar Marketplace Intel Report, EnergySage said that in 2015, more than half of the loans installer quoted on its marketplace came from just two loan providers. But as more financing companies entered the market in 2016, the two dominating providers only accounted for 17%.

To cater to changing customer preferences, installers are offering more financing options. EnergySage reported that the number of installers using three or more financing products in their quotes on the EnergySage marketplace grew from about 10% in the first half of 2016, to more than 37% in the second.

However, because the market has changed so quickly, installers will continue to play catchup to meet customer demand for ownership options.

Tell Us What You Think! Cancel reply

Related Articles Read More >

Contractor’s Corner: Got Electric
Quality and reputation help Maryland installer grow during downturn
Op-ed: Let’s close the loop on tariffs to create a sustainable clean energy economy that benefits all
Utility-scale solar panel hail protection
The path toward solar, batteries and generators working together on whole home energy resilience and grid independence

SPW Digital Editions

Solar Power World Digital EditionBrowse the current issue and archived issues of Solar Power World in an easy-to-use, high-quality format. Bookmark, share and interact with the leading solar construction magazine today.

Contractor's Corner Podcast

June 27, 2022
Contractor's Corner: Got Electric
See More >

Solar Policy Snapshot

Solar policy differs across state lines and regions. Click to see our monthly roundup of recent legislation and research throughout the country.

Read More >

Solar Power World
  • Top Solar Contractors
  • Solar Articles
  • Windpower Engineering & Development
  • Battery Power Tips
  • Top Products
  • Leadership
  • About/Contact Us
  • Subscribe
  • Advertising
  • WTWH Media

Copyright © 2022 WTWH Media, LLC. All Rights Reserved. Site Map | Privacy Policy | RSS

Search Solar Power World

  • Home
  • Top Solar Contractors
  • Articles
    • Most Recent Posts
    • News
      • Latest News Items
      • Solar tariffs
    • Featured
      • Latest Feature Stories
      • Contractor’s Corner
      • Trends in Solar
      • The Solar Explorer
  • Policy
    • Monthly Snapshots
  • Markets
    • Residential
    • Commercial
    • Community Solar
    • Utility
  • Products
    • 2021 Top Products
    • Batteries and Storage
    • Inverters
      • Global Manufacturing Locations
    • Racking and Mounting
    • Software
    • Solar Panels
      • U.S. solar panel manufacturers
      • Global Manufacturing Locations
  • Subscribe
  • Resources
    • About SPW
    • Digital Issues
    • Event Coverage
    • Podcasts
    • Product Manufacturing Locations
      • Global Inverter Manufacturing Locations
      • Global Solar Panel Manufacturing Locations
      • U.S. solar panel manufacturers
    • Solar Classrooms
    • Suppliers
    • Videos
    • Webinars / Digital Events
    • Whitepapers
  • Leadership
    • Vote for the 2022 Leaders!
    • 2021 Winners
    • 2020 Winners
    • 2019 Winners
    • 2018 Winners