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San Diego solar growth hits the brakes

Metering rule change and heavy rains blamed

80 percent of San Diego solar installations are done by locally-owned companies.
80 percent of San Diego solar installations are done by locally-owned companies.

The number of San Diegans installing solar panels has been slowing throughout the first half of 2017, according to data released this week by OhmHome, a green tech advisory firm.

According to research analyst Casey Anderson, there are several factors to explain a 39 percent drop in new solar permits this year. Among these are changes to the net metering provision that allows solar customers to sell excess power back to San Diego Gas & Electric — new rules add fees for solar users, change the amount they're paid for electric generation based on the time of day, which according to Anderson "made the economics slightly less attractive for solar customers and the pitch more confusing."

Anderson says reduced spending on customer acquisition by national brands like Solar City (according to the report 80 percent of San Diego solar installations are done by locally-owned companies), heavy rains early in the year inhibiting construction, and the fact that as early adopters of the technology many homes that stand to benefit in solar are already blanketed in panels.

While the industry is expecting an uptick in business going forward, the biggest years of the California solar boom might already be in the past.

"Many industry analysts expect that the market will rebound in 2018, but it may not get back to 2016 levels," Anderson concludes.

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80 percent of San Diego solar installations are done by locally-owned companies.
80 percent of San Diego solar installations are done by locally-owned companies.

The number of San Diegans installing solar panels has been slowing throughout the first half of 2017, according to data released this week by OhmHome, a green tech advisory firm.

According to research analyst Casey Anderson, there are several factors to explain a 39 percent drop in new solar permits this year. Among these are changes to the net metering provision that allows solar customers to sell excess power back to San Diego Gas & Electric — new rules add fees for solar users, change the amount they're paid for electric generation based on the time of day, which according to Anderson "made the economics slightly less attractive for solar customers and the pitch more confusing."

Anderson says reduced spending on customer acquisition by national brands like Solar City (according to the report 80 percent of San Diego solar installations are done by locally-owned companies), heavy rains early in the year inhibiting construction, and the fact that as early adopters of the technology many homes that stand to benefit in solar are already blanketed in panels.

While the industry is expecting an uptick in business going forward, the biggest years of the California solar boom might already be in the past.

"Many industry analysts expect that the market will rebound in 2018, but it may not get back to 2016 levels," Anderson concludes.

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Comments
4

when low cost systems come out, previous customers will realize what a rip off they were subject to. so far all the sales have been a lot of hype

July 22, 2017

If you use a lot of electricity and are going to stay where you are for a long time then solar makes sense. For most people the savings do not pay for the system. Remember as with any system there is maintenance costs and repair/replacement costs. The panels do not last forever.

July 22, 2017

they last just long enough for the company that installs them to go out of business.

July 22, 2017

Much like the scam to replace windows to save enough energy to pay for the job.

July 25, 2017

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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