What happened to the solar market after the 'crash'?

Much has been made of the “crash” in the global residential solar market, and although the fall hurt, there was solid ground to land on. Many markets, including most US states, France, and the United Kingdom, have continued to grow, albeit at a slower pace than before (Exhibit 3).

What challenges will the US solar industry face?

The US solar industry also faces significant challenges due to recent federal actions, including proposed changes to tax credits that would effectively make them unusable for new projects in the near term and a shift in energy priorities towards fossil fuels, creating an uncertain environment for solar growth in the coming years.

How will supply chain challenges affect solar development?

Manufacturing growth could be hampered by supply chain gaps and skills shortages and solar developers will continue to face long grid connection queues and permitting challenges, which could soften the demand for U.S. products, Quill Robinson, Senior Program Manager at the Centre for Strategic and International Studies, told Reuters Events.

Is the residential solar market down?

The residential solar market is down, not out. Our analysis indicates that the market is likely to revert to more stable long-term growth over the next several years on the back of strong fundamentals. Almost certainly, surprises will pop up along the way; the industry is not called the solar coaster for nothing.

How has the residential solar market changed in 2024?

Declines in residential solar markets have been a hit to the industry—but its foundation is strong. Worldwide, 2024 was a difficult year for the residential solar market. After several years of 30 percent annual growth in installations, 2024 saw a decline: fewer panels were installed in many markets, and companies’ valuations declined.

Is the solar industry facing a rocky road?

Despite growing demand for energy, the solar industry faces a rocky road over the next few years — particularly if the Senate concurs with renewable energy tax credit cuts that have already passed the House, according to this week’s report from Wood Mackenzie and SEIA.