Probably the biggest challenge for the solar industry is that it’s growing at an annual rate of 40 percent, even during the recession. “Growth is a good thing, but it’s a double-edged sword,” says Danny Kennedy, owner of Sungevity in Oakland. “It presents quite a challenge for many small companies, and the pressure of continued growth is taking its toll on the industry.”
A lot of companies try to jump into different niches and do too many different things, he says. That’s why you should look for one that has a long-term plan and understands that, in the next decade, solar is going to become a lower-cost form of energy in America, consequently creating a huge market. The challenge for a lot of companies will be their ability to hang on for the ride.
With such growth, especially in states like California, there’s bound to be consolidation in the market. But there will also be some companies who are positioned to do very well for themselves and their long-term customers—companies that provide lease options with financing and high-quality service.
People should also be aware of the costs involved with the required paperwork for solar installation, says Mr. Kennedy. “When researching a company, you should look at the comparative service through that particular lens.” Also, make sure the company uses experienced contractors in the community whom you can trust to deliver expert installation and service—ones who are established and aren’t going to disappear. Ask the company about the brand of solar panel they would install on your home, and make sure they can back up their warranty.
