This year, solar installations continue to rise in the residential space, and for great reason. Solar-minded consumers have more knowledge than ever before about the benefits of solar for their homes and the environment. On top of this, tax credits continue to be available, including an exciting new piece of legislation that looks to continue solar access. These inherent benefits help to break down barriers between home ownership and solar adoption. Paired with a customer-experience-focused lending platform, residential and commercial installers have a powerful toolkit to further increase adoption and top-line growth.
The Circle of Solar Adoption: A Residential Mindset
Residential solar consumers are considering solar at a powerful rate. Though there is a vast amount of information available regarding the benefits of solar, it is our responsibility and the responsibility of our solar lending and installation partners to ensure that key points are communicated. A recent study by the Pew Research Center found that
“8% of U.S. homeowners said they have already installed solar panels and an additional 39% have given serious thought to it in the past year.” And these numbers came before the 30% tax credit was signed into legislation in August of 2022.
Solar Tax Credits: What a (Continued) Wonderful Phrase
In August of 2022, the federal residential solar energy credit was extended through 2033. This allows consumers installing solar to claim a 30% credit on federal income taxes from now through the decade. Though solar adoption and consideration numbers have increased year over year, this is sure to provide opportunities for installers and lenders.
While we don’t do much assuming in the financial tech space, it may be safe to say that this tax credit implementation would have a positive influence on the solar adoption rate among residential consumers—which, gives us a wider audience toward which to market the benefits of solar adoption. On the industry impact of the plan, Abigail Ross Harper, CEO of the Solar Energy Industry Association (SEIA) states (source):
“With long-term incentives for clean energy deployment and manufacturing, the solar and storage industry is ready to create hundreds of thousands of new jobs and get to work building out the next era of American energy leadership…”
It’s Great to Be King of Customer Experience
With little reason to not install solar for eligible residential consumers, how does an installer stand out from other leaders in the market? Many installers have a streamlined installation process, making it easy for consumers to say “yes.” The next step is to provide a powerful, upfront lending experience that continues to build this bridge between potential customers and solar adopters. Understanding that solar loans are viewed as a sizable decision made at a variety of locations, FNI Solar Blueprint revolves around the concepts of speed, mobility, and flexibility.
Onboarding a new or leveled-up lending platform, like FNI Blueprint, Powered by DecisionCore, for native or third-party lending that provides a streamlined experience for solar adopters is the first step for solar lenders and installers to becoming an industry leader in installs and customer experience.
While we keep an eye on what’s coming next to encourage forward movement in solar installation and lending, the loan origination software experts at FNI provide ongoing insights and, of course, high-level lending software and service to our loan origination platform partners. If you’re ready for direct access to decision strategy management and more, talk to a loan origination expert.
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