Solar panel companies such as SolarCity are seeing a dip as more consumers turn away from leasing solar panels. The Wall Street Journal predicts solar panel leases will drop to just 48% of sales by 2017, down from 72% in 2014.
Solar panel leases have been a primary source of revenue for solar companies as the contract typically ties the consumer into a 20-year agreement with increasing rates. Now, companies are having to switch to offering loans to their customers, which could save them nearly half the money from a lease.
Companies like SolarCity will have to restructure slightly to ensure business needs are met without the revenue for leases. On the whole, this trend could suggest buyers are more able to secure a loan to afford the solar panels, whereas leases had made solar power affordable for many over the years.