Since our inception 30 years ago, GreatAmerica has prioritized loyalty to our customers and focused on their success. We adhere to our 10 guiding principles – not only in our customer relationships, but also by keeping those same promises to our employees.
Solar Industry Update The solar industry had a very strong year. Installed capacity is projected to close with a 33% year over year increase. Our clients have also enjoyed considerable growth within their portfolios with very few charge-offs and lower delinquency – much lower than last year’s pandemic performance. Despite the ongoing pandemic, the solar industry showed continued growth. For 2022, there is no consensus of a purported 25% year over year decrease in growth. The lower projections are driven by supply chain constraints and rising materials and labor costs. Conversely, the Build Back Better Act could influence a better outlook. If approved, the bill would also extend the Investment Tax Credit and be a major stimulant for longer term growth within the solar industry.
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.