The solar industry is chock full of contradictions right now. For all the good news — big federal incentives and ever-increasing interest in renewable energy — there’s also been some not-so-great news, with some solar installers slashing jobs or closing down entirely.
It’s led some to openly wonder: Is the residential solar industry going down? Well, not quite.
“I would not say that we’re expecting a collapse in the residential solar industry,” said Zöe Gaston, principal analyst at Wood Mackenzie, a data analytics firm. “We are expecting a contraction.”
There are a few different reasons for that, but they all portend a slightly slower year for solar in 2024 than we had in 2023, with a likely recovery in 2025.
Here’s what you need to know about the state of the solar industry right now.
Why is the solar industry in rough shape?
Let’s get one thing clear: While the solar industry isn’t collapsing, it isn’t at its peak.
“It definitely is a tough time for the residential solar market,” Gaston said.
