This is your SolarWakeup for October 23rd, 2023

Resi’s Circularity. Interest rates rising, changes in net metering policies, and inventory within distribution is too high, those are the challenges facing installers across the Country. On the other side of the equation, interest rates and inflation are also challenging the utilities resulting in higher energy prices. Interest rates will come down but I’ve never seen electricity prices do the same which means that some advantages could come out of this for the residential market. At some point, distribution will have to move the inventory and there’s already talk of price cuts which will enable some margin retention by the installer as well. Lastly, look for innovation or as I like to call it, focusing on what you do best. This will enable everyone to partner more and drive more volume on the thing you do best.

Managing Installer Cash Flow. Interest rates are the highest in 22 years, increasing solar financing costs and softening consumer demand for loan products. Businesses are feeling the pain of strained cash flows, labor costs and profitability pressures. Palmetto, a B2B technology company accelerating the adoption of clean energy, has announced a new partnership offering for solar installers to help stabilize cash flows and grow faster in today’s market. Built on top of Palmetto’s Clean Energy Operating Platform, this is a comprehensive suite of tools and services enabling installers to streamline operations, optimize performance, and increase profitability. Visit https://www.palmetto.com/finance or contact capital@palmetto.com for more.

Opinion

Best, Yann