The U.S. solar-energy market just had its strongest first quarter yet, and rooftop power has emerged as the most promising growth sector.
Though it represents a small portion of the overall market, residential solar power has a lot of potential to grow, experts say. Strong customer demand, a handful of recent policy developments, and opportunities in battery storage are working in its favor.
In the first three months of 2019, the U.S. installed a record 2.7 gigawatts of solar photovoltaic cells, marking the most solar installations in the first quarter of a year, according to a report released Tuesday by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. Rooftop residential solar made up 22% of the installations in the last quarter, and that percentage is on the rise.
“We are incrementally positive on US residential solar stocks and see a number of tactically attractive buying opportunities ahead of [second half 2019] volume tailwinds and amidst recent signs of ongoing strength in the financing environment,” wrote Goldman Sachs analyst Brian Lee.