Solar Industry & Deals

October 25, 2023

by a searcher from The University of Texas at Austin - Red McCombs School of Business in Chicago, IL, USA

Hey SF community - I am currently in the process of pulling together an LOI for a Solar installation business. I am trying to understand and learn more about the the tax incentives that have driven the revenue growth and where they're going as well as any other legal/compliance/industry trends that could affect the revenue profile of the business.

Has anyone well-versed in the space? Or has anyone looked at deals in this space? is anyone currently an operator in this space?

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Reply by a searcher
from The University of Michigan in San Francisco, CA, USA

One thing I would really think about in this space on the regulatory front is the move from net metering (NEM 2.0) to net billing (NEM###-###-#### California implemented a net billing policy earlier this year, which completely changed the economics for homeowners and, I imagine, for installers as well. The payoff period is much longer now, and it makes more sense to install batteries versus solar alone. I imagine other states will start to follow suit because the peak times of solar generation do not align with peak demand. Net metering only makes sense when solar is a fraction of the customer base.

Reply by a searcher
from Case Western Reserve University in Cleveland, OH, USA

I have seen a couple deals where self-storage operators are adding solar to their units - one recently was a flat-pack self storage player (deploying class b units at a fraction of the cost shipped as flat pack containers customized with door slots, vents, etc###-###-#### adding solar to take the tax credit. Could be a good sales channel / partner on the incentives.

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