Jan. 20, 2015: Solar Water Heater Market in the US to Continue to Grow
Though Their Future Remains Unclear, Federal and State Tax Incentives Have Driven Growth
NEW YORK — Since first being introduced in 2006, solar tax credits have been extended through 2016 and caps on subsidies to residential customers have been removed. Despite economic challenges, these policies have underpinned moderate growth in solar water heater installations in the U.S. over the past five years, according to a report from industry research firm IBISWorld.
Edward Rivera, IBISWorld industry analyst, said, “Most of industry revenue comes from residential installations; therefore, the health of the housing market plays a large role in determining the fate of solar water heater installers.” The industry has benefited in recent years from a rise in housing starts and increased home renovations. “This resulted in more solar water heaters installed in new construction projects,” said Rivera.