Solar Industry Update Backup servicing for the solar industry has been very active thus far in 2021, with our own backup servicing portfolio growing 35% YTD within solar financing facilities. Most of this activity is coming from various solar finance companies, banks, lending institutions, and rating agencies who are pursuing residential solar lending facilities/securitizations. They want backup servicing solutions from financially strong and capable providers who can also readily act as a successor servicer. Lenders typically require the solar finance company to provide a backup servicer that meets their approval and protection needs.
Solar Industry Update The solar industry has survived and even thrived throughout the pandemic. New home solar installations, measured by their power capacity, are expected to grow 7% this year despite the coronavirus pandemic, according to the Solar Energy Industries Association and Wood Mackenzie, a research and consulting firm. Wood Mackenzie expects strong growth over the next five years. From a portfolio growth perspective, our clients have experienced growth year over year with some reporting record growth in 2020. The “lease/ppa” clients have “survived” while the “loan” clients have thrived. The Energy Act of 2020 extended the Production Tax Credit and Investment Tax Credit, creating a new level of optimism heading into 2021.
This year more than most I feel like I’ve learned new things in a short amount of time. We all have. The COVID-19 pandemic has changed so much of our business practices the only thing for certain is that things are changing.
Solar Industry Update “Inconsistent” is how I would describe the residential solar space at this time. Some companies are bullish, others have pulled back, while others are just trying to adjust and maintain. We hear one client saying they had a record June while another says the challenges of March, April and May continue. Despite their different circumstances, a few common themes emerge regarding capital supply and portfolio performance.
Over the last year, GreatAmerica has been on a journey to evolve our marketing strategy to adopt an inbound approach. A big part of that has involved embracing video as a way to connect and engage with our customers and prospects. Our primary mission in doing so was to better serve these relationships by using video to educate and establish trust and transparency. But we also learned just how much video can enhance the way we communicate with everyone we collaborate with, both internally and externally.