Solar energy market sees rapid growth in CaliforniaJune 27, 2012
California may become a leading force in the solar energy market
California has been working to incorporate more solar energy into its overarching energy plan. The state has proven itself a leader in terms of solar energy installations, boasting of more than 1,482 megawatts of capacity as of the first quarter of 2012, the second highest in the nation. Though it was beaten out by New Jersey in terms of solar energy installations, California may be rising to the top position in the energy market, according to a new study from Sunrun, a solar energy company.
Report shows market surges by 80% over previous year
Sunrun’s PV Solar Report shows that there has been a surge in the third-party home solar market. This market is comprised of homeowners who are making use of solar energy installations to meet their energy needs. According to the study, California’s market has experience 80% growth so far this year over what it had been in 2011. The study shows that growth has been lead by 13 cities throughout the state, all of which are exhibiting triple-digit growth in the home solar market.
Solar energy systems becoming more available to middle-class consumers
The report shows that the average annual income across the 13 Californian cities is approximately $57,000. It had been expected that this level of annual income would make it difficult for consumers to adopt solar energy systems. In some cities, homeowners have decided to install their own solar energy systems, which had cut down on the price of labor. 75% of these homeowners, however, had opted for their solar energy systems to be installed through a third-party, such as Sunrun.
Sunrun expects prices for solar energy systems to continue dropping
Sunrun has been one of the companies working to make solar energy systems more widely available to consumers. The company owns, insures and maintains solar installations that are installed on the roofs of a clients’ home. Because homeowners are, essentially, renting these solar installations, the costs associated with purchasing such systems are eliminated. As the demand for solar energy installations grows, Sunrun expects to see the price of these energy systems drops, eventually reaching a point where profitability and availability find balance.
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