Solar Panel Installation in the US Industry Market Research Report Now Available from IBISWorld

The Solar Panel Installation industry has positioned itself well during the five years to 2012. The recessionary years from 2008 to 2009 reduced the spending power of both of this industry's key downstream markets. The industry's saving grace has come in latter years during the period; for example, Chinese manufacturers began flooding the US market with cheap solar panels during 2011, which lowered overall investment into solar and convinced previous skeptics that the technology had finally arrived. Through 2017, revenue is forecast to continue growing. For these reasons, industry research firm IBISWorld has added a report on the Solar Panel Installation industry to its growing industry report collection.

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This industry's saving grace was the flood of Chinese solar panels and technological advances

Los Angeles, CA (PRWEB) November 01, 2012

The Solar Panel Installation industry has positioned itself well during the five years to 2012. The dominant market served includes nonresidential customers with large-scale needs that keep firms busy longer and is funded into the future through ongoing monitoring services. For the residential market, the growing popularity of solar power purchase agreements (SPPAs) allows installation firms to piggyback on the success of a third-party electrical power broker's marketing efforts, as it's the brokers that sell to the customer and then arrange for industry firms to physically install solar panels. Still, the industry has faced a few major setbacks since 2007, and IBISWorld expects industry revenue to decrease marginally during the five years to 2012, falling at an annualized rate of 0.8%, according to IBISWorld industry analyst Josh McBee.

The recessionary years from 2008 to 2009 reduced the spending power of both of this industry's key downstream markets. First, the corporate profit of the dominant nonresidential market fell double-digits in 2008 as stock prices, high labor costs and rising commodity costs upset business confidence. Then, per capita disposable income fell in 2009, as flailing companies laid off workers to salvage their profit margin in light of low demand. The saving grace of the Solar Panel Installation industry has come in latter years during the period; for example, Chinese manufacturers began flooding the US market with cheap solar panels during 2011, which lowered overall investment into solar and convinced previous skeptics that the technology had finally arrived. As a result of these conditions and other technological advances (such as more efficient installation kits), revenue is expected to increase 4.6% through 2012 and total an estimated $1.6 billion, McBee says.

Through 2017, revenue is forecast to continue growing. Growth for the industry could be higher, but the regulatory policies that have been so favorable for the industry remain uncertain in light of the upcoming presidential elections. Still, the renewal of the corporate sector is anticipated to create the most demand for solar installations as corporate profit continues to recover from recessionary lows, technological advances continue to make solar more economical when compared to traditional rid electricity, and companies seek to present themselves as environmentally friendly. Concentration in this industry is low. A large number of small, independently owned and operated firms comprise the industry, each with a limited geographical reach and an average work force of fewer than 10 people. For more information, visit IBISWorld’s Solar Panel Installation in the US industry report page.

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IBISWorld industry Report Key Topics

Firms in this industry install solar panels as part of general residential and commercial contracting services. These firms are contracted either directly by the customer or by solar marketing firms that arrange a buyer for solar panels and contract an industry firm to carry out the work. Installations of commercial-grade solar power grids are excluded from this report (see Commercial Solar Grid Construction), as are solar thermal systems that lack photovoltaic panels.

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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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  • Gavin Smith
    IBISWorld
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