In late 2023, over 100 residential solar dealers and installers in the U.S. declared bankruptcy, with an additional 100 or more projected to fail, indicating a significant downturn for the industry.
Recent Trends in U.S. Residential Solar Business Failures
The residential solar industry in the United States has faced considerable challenges, leading to a notable increase in business failures. This trend became particularly pronounced in late 2023, marking a critical period for companies operating in the rooftop solar sector.
- Late 2023 Bankruptcies: During the latter part of 2023 alone, more than 100 residential solar dealers and installers across the U.S. filed for bankruptcy. This surge in failures highlights a challenging environment for many businesses in the sector.
- Historical Context: The number of bankruptcies reported in late 2023 was six times higher than the total number of failures observed in the preceding three years combined. This stark comparison underscores the accelerated rate at which companies are going out of business.
- Future Projections: The outlook suggests that the trend of business failures is likely to continue, with expectations for at least 100 more companies to cease operations. This projection signals ongoing instability and consolidation within the market.
Key Statistics on U.S. Residential Solar Bankruptcies
To illustrate the scope of these business failures, the following table summarizes the reported and projected numbers:
| Period/Status | Type of Company | Number of Bankruptcies/Failures |
|---|---|---|
| Late 2023 | Residential Solar Dealers/Installers | More than 100 |
| Previous 3 Years | Residential Solar Dealers/Installers | Approximately 16–17* |
| Future Projection | Residential Solar Dealers/Installers | At least 100 |
*Calculated as one-sixth of the late 2023 bankruptcies.
These figures indicate a period of significant stress for the U.S. residential solar sector. The escalating number of bankruptcies suggests that companies in this space are navigating a complex landscape, influencing the overall health and future direction of the industry. The ongoing challenges for the U.S. residential solar industry are a key point of focus for market observers and participants alike.
