EnergySage is an online marketplace for solar energy that allows consumers to compare quotes from multiple solar installers and make informed decisions about solar panel installation. The latest edition of their Solar & Storage Marketplace Report provides insights into the residential solar and storage market in the US from January 2023 to December 2023. The report highlights several key findings:
Continued strong demand
Consumer interest in and demand for solar energy remains strong, despite the industry-wide slowdown in 2023. The solar and storage sectors continue to evolve, characterized by dynamic pricing, advancements in equipment, and shifts in consumer preferences.
Price is not the #1 factor
When making a solar decision, there are a number of factors to be taken into consideration, including the quality of solar equipment, warranties, and the ratings and reviews of the installer. Interestingly, price is not always the primary factor influencing decisions; in 2023, a full 66% of shoppers did not choose the lowest-priced quote they received.
An interest in interest
Lower interest rate loans come with large fees. The median interest rate for quotes that included financing for solar increased to 5.5% in the second half of the year, but the most frequently quoted solar loan was a 25-year loan with a 3.99% interest rate. However, loans with lower rates come with higher fees, with the average fee on the most quoted loan product reaching 47% of the cash project cost.
California net metering effects
Storage interest increased sharply in California following the implementation of the Net Billing Tariff (NBT) in April. In the first six months of 2023, California had the lowest level of storage interest of any state. However, in the second half of the year, California saw the fifth-highest level of consumer interest in storage in the country.
Price changes
Quoted solar prices decreased for the first time since 2021, dropping 3.5% in the second half of 2023. Solar prices returned to 2020 levels, with the median quoted price of $2.80 per watt in H2 2023. Storage pricing decreased for the first time since EnergySage began tracking it in July 2020. The median price for batteries quoted dropped by 6.4% in the second half of 2023. If you’re a solar nerd like us, the report provides valuable insights for those seeking a deeper understanding of trends, equipment preferences, financing options, and consumer demand in the residential solar market. Contact our experts today to get the insight and knowledge you need to switch to solar.
