Sunnova’s Residential Solar Exit: What It Means—and Why NATiVE Isn’t Going Anywhere

The Sunnova residential solar exit just shook the Texas market. Sunnova, one of the biggest names in residential solar, announced it’s shutting down its residential division… For years, Sunnova pushed into the Texas market with “zero-down” throw out and godzilla-scale marketing schemes – any they installed a lot of residential solar Texas. Now they’re walking away from residential solar and trying to figure out a new brand & business model. It won’t look the same as it did –and it may be too late for them.

If you’re a homeowner (or a custom home builder) following the contours of the solar market and trying to understand how changes and new effect the Texas solar industry, here’s the truth:  Not all solar companies are built the same. And NATiVE isn’t going anywhere.  But first…

What Went Wrong with Sunnova?

The Sunnova residential solar exit didn’t come out of nowhere—it followed years of aggressive expansion built on shaky financial ground.

Sunnova didn’t build solar systems—they built financial products. They leased solar systems to homeowners but contracted with 3rd-party installers to do the design & installation work -and system maintenance. 

They, like other similar large solar companies which have collapsed in the last fea years, had to purchase all the equipment, services and labor up front so they could give the homeowner customer the system for a $zero-down$, 25 year lease. It sounded like a good option to some customers -and these solar business grew.  But they had to leverage their own credit facilities to do that. Following the money was cheap was a profitable business model -up to about 2023.

When consumer and business loan interest rates skyrocketed by mid-’23, these solar firms suddenly became financially “underwater” on a huge part of their installed customer portfolio. Then, having to raise the rates on the leasing terms for new customers made this option much less desirable for homeowners.

There’s a bit more to it, but these are the main points to take away :

• Most customers didn’t own their solar/energy storage systems
• Locked into 20–25 year lease or “PPA” contracts
• Installations/service were handled by third-party solar contractors
• Model dependent on high debt and low interest rates

When interest rates rose, their economics and business model unraveled. Now they’re exiting residential solar entirely.  It’s a cautionary tale for anyone considering residential solar in Texas: Know who you’re partnering with, and understand the difference between leasing a system and owning one outright.

What Makes NATiVE Different?

We’re not in this for volume. And frankly, we aren’t here as the price leader. We’re here to build custom, high-performance residential energy systems that last the test of time for you and your family.

• You own your system – which means full tax credit eligibility and better long-term value
• We design it. We install it. We support it. – no outsourced crews or service handoffs
• No leases, no PPAs, no gimmicks
• No bloated financing games – we’re focused on design elegance & performance, not paper games
• Top-Tear, Best-In-Class Components and Integrations

We work directly with homeowners and also align for project success with custom home builders, architects, and energy consultants. Our project partners are discerning Texans who care about doing it right the first time.

Let’s Build Something That Lasts

Solar and energy storage are infrastructure built to deliver over decades. It should reduce your reliance on an unstable  future -not become a burden.

If you’re ready to take control of your energy future, we’re here to help you and your family make an informed decision.

Schedule Your Free Solar Assessment
See Our Design Approach

5 Tactics for Maximum Returns on your Solar/Battery Storage Investment

By Adam Glick, Sr Consultant, NATiVE Solar

Ask 20 people for their views on solar – you’ll get 20 different answers.

But ask NATiVE Solar for our take on the best ways to maximize the value returned from residential solar and/or battery energy storage in Texas – and you’ll hear us repeatedly mention a few specific tactics which folks can use to this end. Here are 5 very good ones to consider :

#1 Understand Your Family’s Electrical Consumption patterns
Before you start looking at how to get the most from your system, you need to understand how and when your family consumes power. Do you have an EV? When do you charge it? Do you have a pool pump? How often does it run? Is there a running battle for control over the upstairs HVAC thermostat? :) How much power is that old freezer in the garage using? With a little bit of thought and effort, it’s not hard to compile some data and a list of apparent trends.

This insight will help you in all other related efforts to get the best return and value possible for your solar and energy storage system.

*For data junkies, installing “smart” electrical panels such as SPAN panels can help you track the energy consumed by every circuit in your home 24/7 day after day – down to the watt! Over time, the trends and usage patterns will be plain to see. Plus, smart panels help detect failing electrical devices/appliances, and let you more efficiently run from battery backup during a grid outage scenario by automatically “shedding” unnecessary circuits while keeping lights, fridge and other “critical loads” running strong.

#2. Compare the Different Solar Programs Available
Texas (for better or worse) is the only state in the country with a deregulated electrical market. But the majority of Texas residents will have to choose one of a headspinning number of competing REPs (retail energy providers -there are literally hundreds. And they all have different programs, rates, and policies for customers who need to plug their solar-equipped home into the grid.

Some REPs offer “free nights and weekends”, but you may pay more for grid power during the day. Some offer fantastic buy-back rates for taking your unused solar harvested energy, but may cap the maximum size of the solar harvesting array or how much extra power your panels can produce, export and get paid for. Some programs will pay you more $$$ for your unused energy if you sell it back to the grid at night – when demand is higher and available supply drops off. (See “Duck Curve” for more info about this solar-related phenomenon)

In a few places, like here in Austin, you’re stuck with one option – although Austin Energy’s current offering isn’t too bad for most solar-equipped residents – all things considered. :)

3# Modify Habits and Usage Patterns
Once you’ve selected the right retail energy provider and solar plan, make an effort to adapt your family’s electrical consumption accordingly. If you drive an EV, consider charging at home during the day instead of exporting unused energy back to the grid. Perhaps consider house rules for when (and how often) certain appliances and amenities should be used. And don’t forget to turn off that light when you leave the room…

#4 Make Use of Available Incentive Programs
Many energy providers and utility companies offer rebates and credits ON TOP OF the 30% Federal Income Tax Credit available for all solar and battery energy storage system purchases.
For instance, here in Austin, you can get a $2500 incentive from Austin Energy for taking a short online education course and a quick (and very easy!) online quiz. It’s easy money – but don’t forget that you also make sure your solar array is properly sized/oriented, and free of shading. NATiVE Solar can help with this!

Oh, and don’t forget that property value increases due to adding solar harvesting and battery energy storage are tax-exempt!

#5 Add Battery Energy Storage to Your Solar Harvesting System
Solar panels are a wonderful way to produce your own power and help cut your electricity bills while helping our planet through the use of renewable energy sources.

But solar panels don’t work when the GRID is out!

It’s true. When the electrical grid fails, your solar panels will shut down and stop producing power. This is by design (and by law) -and allows the utility and grid operators to control the risk of your system “back-feeding” the utility lines on your street – and of their linemen being inadvertently electrocuted while working to restore power.

But with a locally installed battery storage system, this isn’t a problem. Due to the way these systems are designed, your panels can continue to generate power to run your home and charge your batteries when the grid is down but the sun is up!

Bonus Solar Tactic – Engage with NATiVE Solar
The practitioners at NATiVE Solar have been helping our residential and commercial customers across Texas get the most out of their solar and battery storage investments since 2007.

Let the team help you explore all the important aspects to consider as you consider installing (or upgrading your existing) solar harvesting and batteries.

We’ll always shoot it straight with you – the good, the bad, and the ugly. Drop us a line or give us a call! Get Started Today!

Expected Solar and Battery Storage Market Trends moving into 2025

By Adam Glick, Sr Consultant, NATiVE Solar

Nothing exists in a bubble. In a very real sense, all things are interconnected in life. And nothing stays the same forever. In this market – these “truths” will always apply.

The macro-economics driving solar and battery tech sectors are converging for what may prove to be a wild ride next year. I wanted to write a bit from our perspective about how the many dynamics shaping our industry are expected to converge in 2025 -starting now.

Surging Demand
2024 was the biggest year ever for solar. And Texas led the nation with a massive 7.9Gigawatts of newly installed PV (photovoltaics). That’s almost 8 BILLION watts. It’s a lot. Here in Texas we also added nearly 2Gigawatts of BESS (Battery energy storage) – with total online battery capacity of 16gW expected by the end of 2025. Needless to say, even with the potential headwinds of continued higher interest rates, there continues to be massive demand for solar and backup storage in both the residential and commercial solar marketplace.

Supply Chain and Pricing Pressures
Even though many solar panels are manufactured here in the U.S., virtually all of the individual solar “cells” (silicon wafers) used to make panels are produced in China. Other materials such as raw rare-Earth elements and minerals also needed for solar panel and battery manufacturing are also often imported from all over the world. Expected trade wars between the U.S. and other countries – notably China – are expected to disrupt both pricing and supply chain logistics starting early in the year.

The current U.S. administration just last week imparted a new 20% tariff on all solar-related imports from China. The incoming administration may raise this even higher.

The implications here are that the costs to manufacture and ship many solar and battery components and products will almost certainly increase in 2025. At the same time, supplies may become constrained as countries, manufacturers and tech vendors navigate unfolding developments in international trade policy and manufacturing disruptions. These increases in cost are expected to be reflected in higher prices to the consumer and property owner considering the installation of new solar and/or battery capacity.

Technological Innovation
But there is Good News here as well. Looking into 2025, we expect to see some new technology that should improve efficiencies, functionality and reliability of both solar panels and battery storage products. Many new chemistries and manufacturing processes that have been in R&D labs for years are now starting to make their way into next-gen products we expect to see released in 2025. While they may take a few years to reach mass-adoption, new novel product classes such as Perovskite-based solar panels and “solid state” batteries should push the prices of existing mainstream products downward. The degree and speed at which this happens is hard to say, but historically, this is how most human technology goes over time.

Will we see lower rates for Solar Loans?
It’s obviously hard to know where interest rates are headed given all of the economic uncertainties sure to be swept in with a new U.S. administration -and other potential international geoeconomic and geopolitical convulsions.

This said, after higher rates (above 8% APR) a common offer for solar financing in 2024, we are seeing rates drop even now in mid-December. Will easing interest rates continue into and through 2025? We hope so, but for now cash buyers will continue to have an edge.

IN ANY CASE… NATiVE Solar will be here.
We’ve been here since 2007 and rode out all manner of “solar storms” which have pushed our industry in different directions over the years. 2024 was our biggest year ever (by revenue) and we find ourselves in a great position to support any scale residential or commercial designs and installations – from a smaller residential jobs up to multi-Megawatt commercial “solar farm” projects.

Are you considering going solar in Texas to make your home or business more sustainable and energy secure? Look no further than NATiVE Solar, where our recent 5-star reviews speak volumes about our commitment to excellence and customer satisfaction. Let’s delve into each detailed testimonial of the past four months, all of which highlight our expertise in creating unique solar power systems tailored to each homeowner’s or business’s individual needs.

Kendra Avery: Overcoming Challenges with Unconventional Homes

Kendra Avery’s Review:
“Wow… I never thought installing Solar Panels in my complicated roof and renovated house would be easy. Due to the total renovation of my house 12 years ago, I had wires going all over the place and I had no clue how they all hooked up. I realized it would be a challenge, but the people at Native Solar really tried to work with me and my unconventional home and very difficult life circumstances. In all Native Solar’s efforts I have to acknowledge 3 people who went above and beyond in helping me with all my issues: Chris Skaugen and Rae Ann Hargrave and the most amazing electrician and trouble shooter ever – Kresten. Not only do these individuals deserve a 5 Star Rating. Their Stars SPARKLE ✨✨✨✨✨”

In Kendra’s unique situation, our team, represented by Chris, Rae Ann, and electrician Kresten, demonstrated exceptional dedication. Despite the complexities of a renovated house with wires going everywhere, our experts went above and beyond, earning sparkling 5-star ratings.

Nancy McLaughlin: Precision in Panel Replacement

Nancy McLaughlin’s Review:
“Taking down and then replacing 78 solar panels after having my roof replaced is not an easy task and it cannot be rushed. Native did a wonderful job as they carefully detached each panel, stored them on the property and then returned to install. All while making sure each panel is reconnected and working properly. The team was polite and professional. Thank you Native.”

For Nancy, faced with the task of replacing 78 solar panels after a roof replacement, our team showcased precision and professionalism. Carefully detaching, storing, and reinstalling each panel with attention to detail, our team ensured a smooth process and earned Nancy’s gratitude.

Erwin Cuellar: Trusted for Commercial Installations

Erwin Cuellar’s Review:
“Native helped us with a commercial installation at our warehouse in 2018 and has maintained it ever since. Great service and experience.”

Erwin’s experience with NATiVE Solar extends to the commercial sector, where our team provided assistance with a warehouse installation in 2018. The ongoing maintenance and great service affirm the trustworthiness of NATiVE Solar in commercial projects.

Kerry Jensen: Professionalism from Start to Finish

Kerry Jensen’s Review:
“I met Amber and the team at Native Solar when they came to the Helena, MT area. They are professional, thorough and very knowledgeable about the solar energy process. They handled everything seamlessly and kept me informed of the process throughout the project. I was even able to schedule the installation while I was out of the country because they took care of everything. I’m very happy with the team and am glad I switched to solar energy!”

Kerry’s positive encounter with NATiVE Solar spans geographic locations, emphasizing the professionalism, thoroughness, and knowledge exhibited by our team. The seamless handling of the solar energy process allowed for a hassle-free installation, even while Kerry was abroad.

Daniel Costa: A Worthy Investment

Daniel Costa’s Review:
“This team is fantastic, will provide timely education years after your system is purchased. I have a 7-year-old system that has never caused us any headache, worthy investment and reputable company with great people like Derek.”

Daniel Costa attests to the long-term reliability of NATiVE Solar’s systems, praising the team for providing education even years after the purchase. With a 7-year-old system causing no problems, Daniel highlights the investment’s worthiness and commends our reputable company and its dedicated team members like Derek.

These recent reviews, all boasting 5 stars, showcase how NATiVE Solar excels in helping homeowners and businesses achieve their clean energy goals seamlessly while ensuring substantial savings.

Are You One of Our Satisfied Customers?

Leave a review and let our fellow Texans know your experience with NATiVE Solar.

Ready to Make the Switch to Solar Energy in Texas?

If you’re looking to embark on a journey to energy independence and join the growing community of satisfied NATiVE Solar customers, we invite you to contact us today. Let us tailor a solar solution that meets your unique needs, just like we’ve done for Kendra, Nancy, Erwin, Kerry, and Daniel. Together, let’s harness the power of the Texas sun and make a positive impact on our environment and your energy bills. Receive a complimentary quote and take the first step toward a brighter, cleaner future.

#TakeYourPowerBack with NATiVE Solar!

Solar panels have become a popular and sustainable choice for energy production, allowing homeowners to reduce their carbon footprint, save on energy costs, and stay empowered during grid outages. However, what many solar PV system owners may not be aware of is the potential damage and dangers posed by our furry friends – squirrels, birds, rats, and raccoons.

Nesting animals can wreak havoc on solar panels, leading to a range of issues from chewed wires to fire hazards. In this blog, we’ll delve into the damages caused by these critters and emphasize the importance of installing a critter guard to protect your solar investment.

Primary Damages:

1. 1. Chewed Wires:
      Rodents like squirrels and rats are attracted to the insulation coating on exposed wires beneath solar arrays. Regular gnawing to sharpen their teeth can lead to exposed wires, posing risks of fire, electrocution, and lost production.
   2. Roof Rot:
      Nesting animals not only introduce organic material that retains moisture, causing roof rot, but they also scratch away roofing material, leading to water damage. This deterioration can compromise the integrity of your roof over time.
   3. Hot Spots:
      Nesting obstructs airflow under the array, creating hot spots that impact the performance of PV cells. Elevated temperatures not only reduce efficiency but also increase the risk of fire, with under-array temperatures reaching 150°F even in normally functioning systems.

Secondary Damages:

1. 1. 1. Water Damage:
         Compromised roofing due to animal activity can result in water entering your home, causing damage to drywall, paint, and potentially leading to long-term mold issues.
      2. Fire Hazards:
         Though rare, PV-related fires can occur when wires or connectors are damaged, converting electrical energy to heat. Organic materials in nests can easily ignite, posing a fire risk to your home.
      3. Electrocution Hazards:
         Damaged insulation around conductors increases the risk of electrocution, especially during wet conditions. Ground-fault protection may not always function correctly, emphasizing the need for immediate attention to suspected insulation damage.
      4. Lost Production:
         Animal-related events can cause a significant impact on annual production. A 2020 report from the National Renewable Energy Laboratory tracking lost production specifically attributable to pests found an average 28% production loss during the year in which the animal-related event occurred. This represents a financial setback of about $350 for the average US residential PV system.

What to Do About It

The good news is that all these hazards can be virtually eliminated through the installation of a high-quality solar animal guard. Whether installed by professionals or homeowners on a budget, these guards provide an effective solution to prevent critters from causing damage to your solar PV system.

Protecting Your Investment

As a proud owner of a solar PV system, it’s crucial to be proactive in protecting your investment. Whether you already have a solar array installed on your home or you’re considering investing in one, the benefits of adding a critter guard far outweigh the costs. The damages caused by nesting animals can lead to significant financial losses, not to mention the safety risks associated with fire and electrocution. Installing a critter guard is a small investment that can pay off in the long run by ensuring the longevity and efficiency of your solar panels.

At NATiVE, our job is to make your transition to solar energy as seamless as possible. We’ll help you make an informed decision about the installation of a critter guard on your system, enabling you to take the necessary steps to safeguard your solar investment today. Contact us for more information on adding a critter guard to your existing system, whether we installed it or not, or adding one to your upcoming installation.

#TakeYourPowerBack with NATiVE Solar!

NATiVE: Expert Installers and Technicians
While NATiVE Solar is most commonly known as a solar installation company, another facet of our business – servicing and maintaining solar PV systems – sets us apart from the rest. Our service crew is dedicated to maintaining solar customers’ systems, regardless of if they were installed by NATiVE or another solar provider. Properly identifying a problem and finding the right solution can be a challenge, but it’s one that our team of troubleshooting experts are prepared to take on, no matter how complex the issue.

Our Service Technicians
NATiVE’s service crew gets a lot of practice in the field, typically servicing 2-3 sites per day. This crew is made up of five individuals–two in the office and three field technicians. In addition to the service crew, NATiVE has several electricians and technicians on the installation side that are fantastic at preemptively identifying issues and fixing them before the installation is complete. This allows our service crew to spend more time tackling complex projects that would stump the average installer. It also gives our service team time to diagnose and finish jobs left abandoned by installers who were unable to resolve issues with the system.

What Sets Our Crew Apart
The success of our service team is due in part to a strong troubleshooting mindset, which is critical for servicing any technology. Unlike NATiVE, many solar providers don’t have anyone on staff who knows how to troubleshoot a system effectively and instead rely on the component manufacturers to walk them through fixing a problem. This is what gives NATiVE an edge in the industry—we have multiple technicians on both the install and service sides that understand how to effectively identify an issue and get it resolved in a timely way.

Another thing that sets NATiVE apart is our full in-house crew dedicated to the installation and maintenance of each system. From start to finish, our customers have only NATiVE employees on site, not subcontractors. This, along with 16 years of industry experience, allows our crew to tackle even solar PV systems installed by other companies, which is rare within the industry. Most solar technicians won’t touch a system if they did not install it. In contrast, our service team loves to take on a good challenge and remediate systems across all of Texas, regardless of who originally installed it.

Our Warranty
As for service warranties, our offers are similar to those of other installers, which include a 10-year warranty on the workmanship of each system. This warranty covers anything that is installed improperly or any issues that may arise with the wiring of a system. For equipment malfunction, the manufacturer covers warranties on each system component. NATiVE simply charges for labor to diagnose and replace the failed components, similarly to how the warranties on many household appliances work.

Partnerships
NATiVE also partners with a variety of stakeholders to service solar systems under unique circumstances. We have partnered with finance companies to maintain systems that have been abandoned by their original installer to ensure the solar customers continue to receive benefits from their installations. We have also partnered with roofers and insurance adjusters to help customers who need their roof replaced, and thus need their solar panels removed and later reinstalled. NATiVE’s work even continues past the residential level. We have partnered with larger solar companies to maintain commercial and industrial behind-the-meter systems and are able to install large-scale commercial and industrial solar systems as well.

Solar Requires Minimal Maintenance
While the ability to service solar PV systems is important, remember that solar typically requires very little maintenance, even decades after installation. Most of our service crew’s work is due to equipment failure that can be traced back to the manufacturer. Solar is therefore special in that it’s rare for any other income producing asset to require as little maintenance as a solar system that was installed properly. In other words, once it’s generating electricity and saving you money, it’s unlikely that you’ll ever have to invest more money into keeping your solar system running efficiently.

Need Service?
If you’re a solar owner who’s system has failed or no longer generates electricity at it’s capacity, you may want to consider getting our service crew to come take a look. As mentioned, our team has the knowledge and expertise needed to diagnose the problem and find a solution that can bring your system back up to speed as quickly as possible.

To schedule, fill out our service request form.

Don’t have solar yet? Receive a complimentary quote today.

NATiVE is here to help with all of your solar needs, so don’t hesitate to reach out with any questions.

#TakeYourPowerBack with NATiVE Solar!