6 February 2015. There have been several ‘high profile’ solar companies go into liquidation in late 2014 and early 2015. The ‘boom times’ in the solar industry are over due to:
- Less generous solar feed in tariffs on offer
- Decreased Federal Government incentives to install solar
- Maturing market – Adelaide has over 10 percent of homes with solar systems installed
To some extent we view the maturing of the solar installation market in Adelaide as a good thing. Start up companies looking to make a ‘quick buck’ from solar power are now far less likely to find the ‘financials’ of running a solar company focused purely on ‘standard’ residential solar systems as attractive as it was 5 years ago. Many of the solar companies in 2015 in South Australia are focusing on:
- Commercial solar installations. Business in South Australia has been relatively slow to take advantage of the benefits of installing solar. Benefits for businesses installing solar can include reasonably short ‘payback’ periods (that is the time taken to recoup the ‘upfront’ equipment installation), tax deductibility and a reduction of exposure to increasing power costs to the business.
- Promoting new solar technologies. Technologies like solar energy storage units and micro inverters offer a ‘value add’ to solar system installation. As solar panel efficiency increases, some companies are promoting the ‘leading edge’ panels to customers.
- Quality. Many of the remaining solar installers in Adelaide have moved away from promoting ‘low end’ systems and instead focus on marketing systems using only ‘tried and tested’ panels and inverters, as well as offering and promoting the highest levels of installation and follow up service.
Solar is here to stay in South Australia and we watch with interest to see how the industry continues to evolve.