Solar Lease Service Market - Overview
- Solar lease is a contract service provided by solar companies to have a solar energy system installed on residential and small commercial buildings with little to no upfront costs. Within this contract, a solar system can be rented for the production of domestic electricity.
- Solar lease can also be defined as a Third-Party Ownership (TPO) financing model. In this model, the solar system is not owned by the homeowner but is leased out by the solar company for a specific period of time.
- Solar lease service has gained traction in the solar marketplace, primarily because of its ability to leverage two key commercial tax credits for individual homeowners and service holders
- In developed markets leasing model has become one of the most popular methods which helps in enabling power consumers realize the benefits of solar energy system. In recent times more than 70% of consumers in developed markets who go solar prefer third-party ownership.
Are you a start-up willing to make it big in the business? Grab an exclusive PDF sample of this report
Key Drivers of Global Solar Lease Service Market
- Growth in transition toward renewable energy is likely to provide immense opportunities to lease providers due to long term benefits of solar energy. This is expected to drive the global market for solar lease service during the forecast period.
- Business models and mutual financing options play a large role in driving the rooftop solar lease service market. In many areas, even though there is currently a pause in feed-in tariff support for rooftop solar systems, the market is still expanding with newly planned business models and financing options for solar roofs.
- Government subsidies for solar power across the world can be leveraged by solar leasing companies. This is estimated to offer immense opportunities to the global solar lease service market during the forecast period.
Restraints of Global Solar Lease Service Market
- A lease can come with a term escalating or de-escalating payment plan. Leasing can help save money if the utility bill savings exceed lease payments. It is difficult to predict electricity prices 10 years down the line. Similarly, the cost of solar systems is also not easy to predict. This is likely to restrain the global solar lease service market during the forecast period.
- Low awareness among people in developing economies is another limitation of the solar lease service market. The number of service providers of solar lease is less in developing countries. This is expected to restrain the solar lease service market in the near future.
- In April 2018, Sunrun expanded its home solar service to Illinois, the U.S. The lease service could benefit Illinois residents, as they would be able to generate their own electricity all year round with rooftop solar. This would also provide the residents with cleaner air, with monthly savings and freedom from rising utility bills.
- In October 2018, the North Carolina Utilities Commission (NCUC) approved Eagle Solar & Light, a solar energy company in Albama, the U.S., to become the first licensed solar electric generator lessor in North Carolina. Eagle Solar & Light has been active in North Carolina since 2016. It has offices in Highlands and Chapel Hill, North Carolina, the U.S.
Europe to Hold Major Share of Global Solar Lease Service Market
- Based on region, the global solar lease service market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Europe is likely to dominate the global solar lease service market during the forecast period. High investments, especially by governments of countries such as Germany, and technological advancements are projected to drive the market in the region from 2020 to 2030.
- The European Union (EU) aims to achieve 20% share of energy from renewable energy sources (RESs) in the final energy consumption by end of 2020. This is expected to drive the market in the region during the forecast period.
- On the other hand, the size of the renewable energy industry in the U.S. in North America is anticipated to double by the end of the forecast period. Renewable energy projects in the country are likely to benefit from multi-year federal tax incentives and several state-level policies that promote the use of solar energy in the next few years.
- Asia Pacific is projected to be a high potential region of the global solar lease service market during the forecast period, led by the rise concerns about air pollution and carbon emissions in India and China
Expanding operations in future? To get the perfect launch ask for a custom report
Key Players Operating in Global Market
Major players operating in the global solar lease service market include:
- Solar Calculator
- Solar to the People
- Wholesale Solar
- Solar Power Authority
- Going Solar
- Vivint Solar Developer
Global Solar Lease Service Market, Research Scope
Global Solar Lease Service Market, by Product
- Monthly Lease
- Full Amount Lease
Global Solar Lease Service Market, by Application
Global Solar lease service Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.