Dive Brief:

• Net metering customer growth has been skyrocketing at nearly a 50% annual compound rate and Fitch Ratings expects the trend to continue, according to a report from the ratings agency.
• Third-party financing has been driving rapid residential solar rooftop growth and now accounts for more than half of new installations, the report said.
• SolarCity's $54 million securitization of distributed solar generation in November opens a new market for capital investment, Fitch said.
• Homeowners in states with high retail prices have an incentive to install solar and use net metering programs, according to the report.

Dive Insight:

“Improvements in solar technology and efficiency will continue to reduce costs, enhancing their competitive profile,” Fitch said. “However, grid parity may not be achieved until the end of this decade, depending on the market. Markets with high retail electricity rates and strong solar insolation levels will achieve grid parity first.”