In the face of ongoing challenges within the PV market, it’s crucial to explore alternative avenues that offer opportunities to diversify any CA-based solar business. Solar thermal emerges as a beacon of opportunity, especially amidst the struggles witnessed due to factors like NEM 3.0 and market fluctuations.
Drawing insights from Hawaii's post-NEM scenario, where solar thermal emerged as a resilient solution for contractors, we find valuable lessons applicable to California. The recent surge in gas costs, particularly in SoCalGas territories, highlights the vulnerability of traditional energy sources. This creates a unique opportunity for solar thermal to fill the gap, offering a sustainable and cost-effective alternative in these regions.
The absence of natural gas and high energy costs in Hawaii drove significant adoption of solar thermal systems, positioning it as a viable contender in the current landscape. Now, with escalating gas costs impacting the same territories where PV contractors hold significant sales presence, the integration of solar thermal becomes even more compelling.
The advantages of integrating solar thermal into existing portfolios for contractors are compelling:
- Smooth Transition: Licensed PV contractors can seamlessly add solar thermal installations without additional licensing requirements. The installation process aligns closely with familiar PV setups.
- Program Alignment: Existing programs, like SoCalGas’s Residential Rebate, align perfectly with territories experiencing a surge in gas costs, offering a natural transition.
- Financial Incentives: Solar thermal qualifies for Section 25D and 48 ITC, providing financial benefits to contractors seeking new avenues.
This isn’t about disregarding PV or its potential. Instead, it’s an acknowledgment that diversification offers stability amidst market uncertainties. Neglecting solar thermal might overlook an opportunity for contractors to navigate these challenges.
SunEarth and other industry players offer comprehensive support and resources for the integration of solar thermal, ensuring a smooth transition without overwhelming resources.
The potential of solar thermal as a robust, reliable, and complementary solution in the solar industry should not be underestimated. It presents an avenue for growth and stability, especially in regions experiencing soaring gas costs.
Let’s collectively recognize the potential of solar thermal as a valuable asset in our industry.