The roof solar market has slowed dramatically this year as the sector moved from among scrappy upstarts to a mature company
Latest quarterly incomes reports from sector leaders SolarCity Corp, Vivint Solar Inc and SunPower underscored the remarkable downturn in development, with SolarCity and Vivint reporting practically flat setups for this year compared with 2015.
In general, the sector is anticipated to rise 16.5 percent in 2016, down from a prior forecast that required 23 percent growth, as per a research company GTM Research. Last year, the sector grew 71 percent.
Elon Musk is the largest shareholder in SolarCity.
Billed by numerous on Wall Street as a bailout of the country’s top property solar installer, the $2.6 billion deal has made investors question how Tesla will take in SolarCity’s large debt-load, particularly given the headwinds dealing with the industry.
“It’s excellent for SolarCity. It doesn’t look as terrific for Tesla shareholders at this moment,” informed Angelo Zino, an expert with CFRA Research.
Financiers have fled the sector. The MAC Global Solar Energy stock index is down 44 percent up until now this year. SolarCity’s stock was down 63 percent in the 12 months before Tesla in June announced its proposition to purchase the company.
The factors for the downshift in roof solar are many, ranging from policy changes in essential states like Nevada and California to customer fatigue with the market’s aggressive marketing tactics. In addition, many of the most likely buyers – upscale, ecologically inclined house owners in sunny locations– already have rooftop systems, making winning new customers harder and more expensive.
