The uptick in residential solar — sans state incentives — is due to a trend with solar power reaching price parity with other forms of energy due to net energy metering and the leasing of third-party-owned systems. Net metering allows PV users to sell back any unused power to utilities.
"The residential juggernaut will continue to roll on, while the non-residential market will pick up, particularly in California and New York. And the utility-scale pipeline has reached unprecedented levels ahead of the looming federal Investment Tax Credit expiration," the report stated. "We anticipate another record year for solar in the U.S. in every market segment."
Deutsche Bank analysts believes the cost to finance solar installations will also drop from 7.9% last year to about 5.4% this year. Financing for installations is expected to stabilize at around 6.5% by 2019.
Amit Ronen, director of George Washington University's Solar Institute, was a key Congressional staffer behind the 2008 ITC legislation. Along with the ITC law, one of the driving forces behind adoption of solar power and the ensuing reduction of costs, he said, has been the U.S. Department of Energy (DOE) SunShot Initiative. That effort helps fund research, manufacturing and market creation. SunShot has a goal for solar energy to reach price parity with conventional power sources by 2020.
"They say they're about 60% of the way there because [of solar] panel prices.... They've come down 80% over the past five years," Ronen said in an interview late last year.
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