Jan. 22, 2013: Solar Water Heater Market Is Forecast to Grow
LOS ANGELES — In the next five years, revenue growth of the solar water heater installation market is forecast to strengthen on the back of rising corporate profit, booming housing starts, and technological advances that will make solar water heaters more economical, according to a report from industry research firm IBISWorld.
The solar water heater industry had an erratic past five years, noted IBISWorld. The industry's saving grace was an assortment of both federal and state solar investment tax credits (ITCs), which subsidized the cost of solar water heater installations. Demand for solar water heater installations was hurt, however, by a collapsing real estate market, a tepid recovery, and commercial customers not having the funds available to justify solar upgrades. Overall, IBISWorld expects industry revenue to show growth at an annualized rate of 0.7 percent during the five years to 2013, with revenue anticipated to increase 1.1 percent to $145.3 million in 2013 alone.