High interest rates cast shadow on California’s ambitious solar plans, hurts green jobs
![High rates hinder California's solar goals, harm green jobs.](https://sustainabilityeconomicsnews.com/wp-content/uploads/2023/12/beautiful-alternative-energy-plant-with-solar-panels-1.webp)
California, once a pioneer in fostering the US solar industry, is now facing a significant slowdown in rooftop panel sales, posing a threat to widespread adoption.
Job cuts among installers and a surge in bankruptcies are becoming more prevalent.
Even established companies like Enphase Energy Inc., a key player in the sector, have announced a 10% workforce reduction and the closure of two contract factories, attributing the decision to California’s challenges in a letter from CEO Badri Kothandaraman to the staff.
This downturn is a result of recent regulatory changes in California that reduced the earnings for solar homeowners selling excess electricity to the grid.
Compounding the issue, higher interest rates have made solar systems more expensive.
According to research firm Ohm Analytics, which monitors the solar market, private residential installers in the state have seen sales plummet by 67% to 85% since the regulatory change took effect in April.
The decline in sales, particularly in a state that leads in US solar installations, poses a setback for a crucial source of green energy just as President Joe Biden aims to expedite the country’s shift toward clean energy.
California is not the only state facing this issue; more than a dozen others have reduced their subsidies, citing concerns that they contribute to higher utility rates for homeowners unable to afford solar systems.
Consequently, the rapid nationwide growth of rooftop solar in recent years is likely to decelerate.
Residential solar installations in the US experienced an average annual increase of 32% from 2019 to 2022, as reported by BloombergNEF. However, the research firm now anticipates a 5% annual growth rate for the remainder of the decade.
“I’m very concerned about whether or not we’ll make it through winter,” said Ross Williams, CEO of the San Diego-based installer HES Solar.
His sales have plummeted to about 20% of 2022 levels, and he’s laid off more than half of his 75-person staff. “It’s been pretty dramatic for us going through this process.”
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/30341f8d-32ff-4c5a-ad4e-dcdb01497bd9-150x150.jpg)
EIB Global supports €271 million Egyptian climate and...
-
During the EU-Egypt Investment Conferenc...
- 02/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Asset-Management-150x150.png)
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/06/Depositphotos_73537517_S-150x150.jpg)
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
Iberdrola, a Spanish renewables company, announced that it has acquired the “80% it did not control of Balantia”. Iberdrola had initially entered the firm’s capital […]
Japan’s largest steelmaker, Nippon Steel and trading house, Sumitomo Corp, announced that they have renewed a long-term contract with Norway’s Equinor to supply seamless steel pipes […]
Cepsa announced that it has entered a strategic partnership with PreZero Spain to advance objectives related to decarbonization. According to the agreement, PreZero Spain will […]
In a new critique of the voluntary carbon market, over 80 non-governmental organizations have urged corporations to exclude carbon offsets from their transition plans, arguing […]
Luxcara, an independent German asset manager for clean energy infrastructure projects, announced that it has signed a “preferred turbine supplier”. The asset manager has signed […]
Genex Power announced that it has secured a five-year $107 million senior debt facility for its 50MW Kidston and Jemalong solar projects in Australia. The […]