Ed Cooks of WoodMac.com tells his readers that changes to net metering rules in California have created new incentives to add batteries to solar systems. He writes:
Alexis de Tocqueville, the French diplomat and famous observer of America, noted in 1840 that in democratic countries such as the US, a citizen’s independence “fills him with self-reliance and pride amongst his equals”.
That same spirit might have been expected to help make the US a global leader in residential solar power, with homeowners wanting to reduce their reliance on the grid. In fact, however, the US has lagged far behind many countries, including Australia, the Netherlands and Germany, in terms of rooftop solar adoption. And in the past year or so, conditions for residential solar in the US have become even tougher.
The industry has been hit by a double blow, in the shape of higher interest rates and regulatory changes in California, the country’s largest market. US installations of residential solar rose last year, as buyers scrambled to get systems fitted before California’s new rules took effect, but Wood Mackenzie’s forecasts project a 13% decline this year. We expect a recovery next year, but in our base case installations are still lower in 2025 than in 2023.
However, some positive trends in the industry suggest it is moving on to healthier foundations. In particular, the rise in sales of home energy storage systems alongside residential solar in California is improving both its economics and its impact on emissions.[…]
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