Recent report clearly shows that current legislation in California is suffocating the solar industry, as a significant portion of solar companies go bankrupt.
COSTA MESA, Calif., Feb. 6, 2024 /PRNewswire-PRWeb/ -- Solar Insure, a leader in the solar warranty and monitoring industry, reveals alarming data showing the severe impact of recent state policies and economic factors on California's solar industry. Based on proprietary internal research, the company reports that a staggering 75% of solar companies are under financial duress, making this an extremely dire situation for the industry.
"The solar industry is meant to help both our environment and our economy," said Ara Agopian, Founder and CEO of Solar Insure. "Instead, recent legislation has put a stranglehold on the solar economy. This, in turn, has led to dramatic bankruptcies, layoffs, provider closings, and, in many cases, homeowners that are left with no support and no recourse."
Takeaways from the recent report include the following key findings:
- Industry in Crisis: Over 100 solar companies in CA have suspended activities or declared bankruptcy in 2023, an unprecedented number in the sector's 20-year history.
- California Hit Hard: New net metering rules under NEM 3.0 drastically altered the solar market in California, diminishing the financial viability of solar installations.
- Major Bankruptcies: Notable California solar companies such as Infinity Energy, Harness Power,American Solar Advantage, and Kuubix Energy have ceased operations, along with several others across the state.
- Financial Turbulence: 74% of monitored California solar companies have moved from low or moderate-risk to high-risk categories based on Solar Insures internal metrics.
Homeowners, small business owners, and large corporations are feeling the consistent strain on the industry.
Some of the key impacts include:
- Homeowner Impact: Over 300,000 CA homeowners risk being left without service providers.
- Rooftop Solar Installation Decline: An 80% decrease in installations post-NEM 3.0.
- Job Losses: The industry faces over 17,000 layoffs, representing about 22% of the workforce per the California Solar & Storage Energy Association
When all of this data is analyzed properly and taken into consideration, the consequences for the solar industry are irrefutable. This includes a massive erosion of customer confidence and a decline in post-installation services, which further undermine homeowner trust in the industry.
"The current legislation poses serious threats to the industry's reputation as a whole," said Agopian. "In many areas, the industry is either on the verge of collapse or has already collapsed. There is little market stability at this point in California, which is having the opposite impact to the state, the industry and our homeowners."
Solar Insure has been in the solar industry for over a decade. The company offers proprietary technology that monitors solar panels, as well as offering long-term warranties on products. Through their tier one warranty partnership with Zurich, Solar Insure is typically the first responder with respect to solar concerns.
"We are at a critical juncture," said Agopian. "The solar industry in California is grappling with unprecedented challenges. It's imperative that we find ways to support these companies and maintain consumer confidence for the sustainability of the solar market. Collecting and updating the data in real-time is just one way we are fighting to help the solar industry bounce back from what is happening today."
The company's report underscores the need for enhanced oversight and support mechanisms to ensure the solar sector's longevity and reliability in California. Solar Insure advocates for a balanced approach to policy-making that considers the long-term viability of the solar industry.
About Solar Insure:
Solar Insure has been a pioneer in providing warranty and monitoring services in the solar industry, dedicated to supporting homeowners and businesses through comprehensive and reliable solutions. For more information, please visit us at http://www.solarinsure.com.
Media Contact
Brooke Greenwald, Solar Insure, 240-370-7036, [email protected], www.solarinsure.com
SOURCE Solar Insure
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