A financing mechanism that has made solar energy more affordable is set to propel the growth of the residential market in the United States from $1.3 billion in 2012 to $5.7 billion in 2016, according to a report released Monday.
This model, called “solar leases” or “third-party financing,” was rare five years ago. Now it’s available in 14 states. It now accounts for over 70% of all residential installations in California, Arizona and Colorado, said the report by GTM Research.
California is the largest solar energy market and, unsurprisingly, it also is the first market for solar leases. That’s mainly because the state has budgeted roughly $2.2 billion for rebates to support the installations of 1,940 megawatts of solar electric systems for homes, businesses, nonprofits and government agencies from 2007 through 2016.