SolarCity Corp (NASDAQ:SCTY) is dominating the U.S. residential solar installation market. With the recent acquisition of panel manufacturer Silevo, the company is expected to further strengthen its position in the market. According to the latest report by GTM Research, SolarCity accounted for 29% of residential panel installations in the first quarter of this year.
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SolarCity far ahead of its nearest rival
The San Mateo-based company is far ahead of Vivint Solar, which was ranked No.2 with 9% share. Though SolarCity’s share was higher than 27% on 2013 overall, it’s still lower than 33% in Q3, 2013. Among the top five were Sungevity, Verengo and Solar Universe in that order. The top ten residential solar company enjoy a whopping 51.8% market share. In 2010, the top ten companies were responsible for only 29.7% of U.S. residential installations.
GTM Research analyst Nicole Litvak said that the market has consolidated primarily due to leading players growing organically. A flurry of acquisitions has also helped consolidate the industry. Litvak said top installers have immense referral potential from their large existing customer base, and effective sales strategies to drive growth. Overall, the residential solar installation market grew 38% YoY in the past 12 months.
Will SolarCity continue to lead the residential installation market?
Solar Universe, Sungevity and NRG Home Solar saw significant increase in their annual growth rate. U.S. residential solar market is booming. For the first time, residential installation capacity outpaced commercial installation capacity in the first quarter of this year, reports CleanTechnica. In Q1, total residential installations were 232MW compared to 225MW for the commercial market.
GTM Research says residential installations are expected to surpass 1GW this year, thanks to a wide variety of financing options. After buying Silevo for about $200 million, SolarCity announced that it would build a 1GW high-efficiency panel manufacturing plant in New York.
SolarCity shares fell 1.07% on Friday to close at $71.34. The stock is up 24% this year so far.