SOLAR FLARE: Utah is in the midst of a solar boom--but can it last?

• Author: Biton, Adva
• Position: Focus

Over the past five years, the sun has definitely been rising for the solar industry. In 2016, the industry installed nearly twice as many megawatts of solar than 2015's record-setting year, according to the Solar Energy Industries Association (SEIA). The same report shows that Utah solar jobs grew 65 percent last year--in fact, one in 50 new U.S. jobs are in the solar industry--and Utah is now the sixth-largest solar state in the country.

But it's not all sunshine for the industry, even though prices for installing residential solar have come down significantly and awareness of the efficacy of the solar cells has gone up. Utah is ramping down its solar incentives program, with tax credits for residents installing rooftop arrays slated for elimination by 2021. The sharp increase of residential solar owners has also affected Rocky Mountain Power's (RMP) net metering program, which hitherto has allowed solar customers to sell back excess power to the utility company at extremely competitive rates. And last, the industry's recent boom--coupled with potential roadblocks on the horizon--has some fearing that a solar bubble could be forming, and soon pop.

A NEW INDUSTRY

Seven years ago, when Auric Solar was a tiny company just starting out, CEO Jess Phillips would drive to work, passing dozens of houses. Maybe, just maybe, he'd see a single house equipped with rooftop solar. These days, he sees a lot more.

"It used to be 'are those solar panels?' But now you're not pointing them out anymore. It's becoming something you can see every day," says Phillips. "When we started up my company, we could've driven around all day without finding one."

Solar has been exploding in Utah for a variety of reasons, says Bryan Christiansen, COO of Vivint Solar. The first thing is simply that awareness has increased--and now, customers are no longer stunned by the sticker price of solar panels. According to SEIA, U.S. photovoltaic system pricing has dropped by 20 percent, and Utah's solar-friendly tax rebates (allowing those with rooftop solar to seek tax credits of up to $2,000) have also helped get people to sign up.

"When solar consumers look at what solar cost 10 years ago, it's like they're getting a Groupon now. The price has dropped so much. They look at it and say, 'I can't pass it up,'" says Christiansen. "They reengage and ask questions and see it's a good idea."

With the way solar is financed now, Christiansen continues, many customers in Utah save...