New York, NY (PRWEB) March 06, 2014
The Solar Panel Installation industry has sprinted ahead in recent years, driven by rapid technological developments, falling solar panel costs and favorable government policy. The dominant market for the industry is nonresidential customers with large-scale needs that keep firms busy longer and are 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 brokers' marketing efforts, as it is the brokers that sell to the customer and then arrange for industry firms to physically install solar panels. Over the five years to 2014, IBISWorld expects industry revenue to increase at an average annual rate of 14.0%, reaching $6.6 billion.
In the five years to 2014, the Solar Panel Installation industry managed to grow rapidly due to strong demand from key downstream markets. Despite a slowdown in the US economy between 2009 and 2010, a quick recovery in corporate profit, as well as favorable investment tax credits, kept demand from the nonresidential segment high. Additionally, in 2011, industry operators benefited tremendously from Chinese manufacturers flooding the US market with relatively cheap solar panels. With a lower price for solar panels, better quality through technological improvements and continued tax incentives at the federal and state level, the overall investment into solar power dropped markedly for potential consumers in the residential market. According to IBISWorld Industry Analyst Omar Khedr, “These factors, combined with the growing popularity of energy-efficient solutions, are expected to cause industry revenue to increase 8.1% in 2014.”
Through 2019, revenue is anticipated to continue growing. Growth for the industry could be higher, but the regulatory policies that have been so favorable for the industry remain uncertain beyond 2016. “Still, the residential market is anticipated to create strong demand for solar installations as the housing sector continues to recover from recessionary lows, and technological advances abound that will also continue to make solar power more economical for households when compared with traditional electricity,” says Khedr.
For more information, visit IBISWorld’s Solar Panel Installation in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Firms in the Solar Panel Installation industry install solar panels as part of general residential and commercial contracting services. These firms are contracted either by a homeowner, a solar panel manufacturer 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.