US Rooftop Solar Boom Will Help SunPower
December 12th, 2012 by Trefis Team
According to a report by the Solar Energy Industries Association (SEIA), a solar industry trade group, photovoltaics installations in the United States grew by 44% in Q3 compared to last year driven by strong sales of rooftop systems as falling prices and attractive financing options are making solar power more accessible for customers. [1] We believe that the strong momentum in the US rooftop solar space will be beneficial to SunPower (NASDAQ:SPWR), one of the world’s largest monocrystalline solar panel manufacturers.
Although the residential solar market remains relatively small in comparison to the overall solar market, it is important for solar manufacturers since it exhibits the most consistent growth and provides more stable revenues compared to the utility and commercial segment which are driven by larger contracts. The residential space is also an important market for higher end solar products.
Residential and commercial installations account for more than half of SunPower’s Trefis price. Residential and commercial installations are primarily done on rooftops, calling for panels that are compact, aesthetically pleasing and high in conversion efficiency. (Also See: A Comparison of Solar Technologies And What They Mean For Companies) SunPower has typically enjoyed an advantage in the US rooftop space thanks to its high efficiency monocrystalline panels, some of which offer efficiencies of above 20%. These panels also offer higher durability and a longer life compared to competing thin film and monocrystalline panels.
Strong Rooftop Market Growth Will Benefit SunPower
The residential market witnessed a quarterly record high of 118 MW of solar panels being installed, growing 12% sequentially while commercial installations came in at 257 MW, displaying 24% sequential growth. However, prices continued to decline with average prices for residential system falling by about 5% sequentially to $5.21/watt while non-residential systems witnessed a decline of about 4% to $4.18/watt.Although the residential solar market remains relatively small in comparison to the overall solar market, it is important for solar manufacturers since it exhibits the most consistent growth and provides more stable revenues compared to the utility and commercial segment which are driven by larger contracts. The residential space is also an important market for higher end solar products.
Residential and commercial installations account for more than half of SunPower’s Trefis price. Residential and commercial installations are primarily done on rooftops, calling for panels that are compact, aesthetically pleasing and high in conversion efficiency. (Also See: A Comparison of Solar Technologies And What They Mean For Companies) SunPower has typically enjoyed an advantage in the US rooftop space thanks to its high efficiency monocrystalline panels, some of which offer efficiencies of above 20%. These panels also offer higher durability and a longer life compared to competing thin film and monocrystalline panels.
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