RGS Energy pulls out of large commercial solar

Share

RGS Energy has announced that it will terminate its business in the large commercial solar segment, after several quarters of relatively heavy losses and as part of a realignment under new CEO Dennis Lacey. The company will maintain its residential and Sunetric business segments.

GTM Research Solar Analyst Nicole Litvak says that this move is in alignment with industry trends, noting that among the top residential installers SolarCity is the only one active in the commercial segment as well.

“Residential is growing a lot more right now compared to commercial, and I think that they saw a larger opportunity there,” notes Litvak. “There's a huge addressable market, and its just easier to scale in residential solar if you're doing it right.”

While traditionally the smaller of the two, the U.S. residential sector installed more solar than the commercial sector in the first quarter of 2014, and GTM Research predicts that residential will be the larger segment over the full year 2015.

One factor is market barriers for commercial solar deployment. “Financing is definitely a huge bottleneck in the commercial sector right now,” says Litvak. “There is a decent amount of activity, but it's a struggle for companies to both find the customers and find the financing.”

“You don't have the FICA score, the one number that you have for residential.”

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

How long do residential solar panels last?

23 July 2024 Multiple factors affect the productive lifespan of a residential solar panel. In the first part of this series, we look at the solar panels themselves...

Share

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.