Most of industry revenue comes from residential installations; therefore, the health of the housing market plays a large role in determining the fate of solar water heater installers.
New York, NY (PRWEB) January 09, 2015
Over the past five years, solar investment tax credits have helped mitigate the decline of the Solar Water Heater Installation industry, which otherwise suffered from reduced demand due to the real estate market’s collapse and tepid recovery. Although an assortment of federal and state investments into solar energy have subsidized the cost of industry services, they have been insufficient to restore the industry to its prerecession heights. Since first being introduced in 2006, the tax credits have been extended through 2016 and caps on subsidies to residential customers have been removed. Despite economic challenges, these policies have underpinned moderate growth over the past five years.
According to IBISWorld Industry Analyst Edward Rivera, “Most of industry revenue comes from residential installations; therefore, the health of the housing market plays a large role in determining the fate of solar water heater installers.” The industry has benefited in recent years from a rise in housing starts and increased home renovations. “This resulted in more solar water heaters installed in new construction projects,” says Rivera.
The industry is highly fragmented, with low barriers to entry and a prevalence of independent operators that service local markets. Participation in the industry is expected to expand in the coming five years as construction companies increasingly offer solar water heater installation services. Revenue is also expected to grow at a faster pace through 2019, though it’s uncertain whether the federal policies that have been so favorable to the industry in recent years will continue. Regardless, technological advancements in solar water heaters and rising demand from the corporate sector are expected to drive the most demand for industry services.
For more information, visit IBISWorld’s Solar Water Heater Installation in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry install solar water heater systems as part of general residential and commercial contracting services. These operators are contracted either directly by the customer or by solar marketing companies that arrange a buyer for solar thermal systems and contract an industry operator to carry out the work.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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