Solar as a Service Providers Should Focus on Unlocking Value Otherwise Unavailable to Customers
February 10, 2017 | Navigant ResearchEstimated reading time: 1 minute
A new report from Navigant Research examines the weaknesses of different business models for solar as a service (SOaaS) providers, offering sustainable alternatives that allow providers to stay competitive in a changing solar energy environment.
Following a recent decline in solar leases and power purchase agreements (PPAs) in California (which represents roughly 60 percent of the US market), traditional SOaaS players began joining financial players and offering loans instead of leases as a way to retain market share. However, to increase their long-term survival prospects, players must find a way to unlock non-energy related revenue, and ideally in a way that creates win-win situation for solar service players. Click to tweet: According to a new report from @NavigantRSRCH, SOaaS providers should focus on unlocking value otherwise unavailable to customers.
“SOaaS was popularized in the US between 2010 and 2015 and it seemed that solar leases were going to be the winning business model, allowing large players to both increase the market size and displace local installers,” says Roberto Rodriguez Labastida, senior research analyst with Navigant Research. “But since the share of solar leases and PPAs plunged in 2015, Navigant Research does not expect that the trend against leasing will reverse and anticipates that the revenue that SOaaS players receive per watt of installed capacity will decline as a higher share of installations move toward loans.”
According to the report, transforming solar leasing and PPA providers into virtual power plant providers could be a viable way for SOaaS providers to increase their value to customers going forward. Strong consumer-facing brands like SolarCity, Vivint, Sunnova, or SunRun and their current customer relationship expertise could open up new revenue streams key for provider survival.
Suggested Items
IDTechEx Examines the Opportunities for Wearables in Digital Health
04/19/2024 | IDTechExIDTechEx’s report, “Digital Health and Artificial Intelligence 2024-2034: Trends, Opportunities, and Outlook”, covers this ongoing trend in the consumer health wearables market and includes analysis of the opportunities and roadmap for biometric monitoring.
Real Time with... IPC APEX EXPO 2024: Pluritec's Expansion and Growth in the North American Market
04/19/2024 | Real Time with...IPC APEX EXPONicola Doria, president of Pluritec, discusses the company's strategic focus on the North American market, their investment in a new sales organization, service expansion, and a new process integration line. The conversation also covers market response and future installations, as well as Pluritec's new partnership with IEC.
Mycronic Releases Interim Report January–March 2024
04/18/2024 | MycronicNet sales increased 39 percent to SEK 1,692 (1,219) million. Based on constant exchange rates, net sales increased 42 percent.
Real Time with... IPC APEX EXPO 2024: Exploring Silicone Solutions with R&D Director of CHT
04/17/2024 | Real Time with...IPC APEX EXPOIn this interview, Gerry Ellis, the R&D director for CHT, discusses the product range offered by his company. He explains the challenges in creating base formulations, the drive to make products more user-friendly, and the various application techniques involved. Ellis also highlights the key market segments and the significance of providing efficient solutions to customers.
Gartner Forecasts Worldwide IT Spending to Grow 8% in 2024
04/17/2024 | Gartner, Inc.Worldwide IT spending is expected to total $5.06 trillion in 2024, an increase of 8% from 2023, according to the latest forecast by Gartner, Inc. This is an increase from the previous quarter’s forecast of 6.8% growth and puts worldwide IT spending on track to surpass $8 trillion well before the end of the decade.