Hawaii's Solar Energy Market Seems to Be Slowing

The number of photovoltaic installation panels across the state of Hawaii had increased by 150 percent in 2011 and an additional 172 percent in 2012.  However, in 2013, it appears that demand for new solar panels is beginning to slow down and industry experts are expecting only a 66 percent increase by the end of this year.  With dozens of new photovoltaic installation companies and franchises opening up across the state each month, companies are forced to offer fantastic giveaways and promotions to try and create new business.  From free all-expenses-trips to Las Vegas, to free iPads, to $1,000 cash rebates, to working with local celebrities, companies are trying to get creative with their marketing tactics.

Marco Mangelsdorf, who works in the photovoltaic industry and has been tracking its data, stated, "While it may be too early to say that there's a growing air of desperation among many PV integrators in the state, the apparent shrinking pie, especially when one compares the first five months of this year to the last five months of 2012, is prompting an expanding number of companies to offer bigger and bolder bribes to get homeowners to pick them."

Part of the challenge is that the state of Hawaii had decreased the amount of state tax credit for the installation of new photovoltaic systems systems on January 1, 2013.

Source: Honolulu Star Advertiser, 6-24-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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