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At Innovative Solar Systems, LLC (ISS) our principals continue to watch the solar industry headlines worldwide to determine the fate of solar systems. Another large German manufacturer of solar panels just filed bankruptcy. AsGermanyreduced subsidies, demand and production have declined rapidly.Germanycan be seen as the future of the PV (photovoltaic) solar industry in theUnited States. When subsidies are high and utility companies are forced to pay high FIT (feed-in-tariff) rates for electricity, the solar industry thrives and solar farm projects involving commercial solar systems flourish. However, whenever governments attempt to fine tune the renewable energy market with reductions to subsidies and PPA (power purchase agreement) rates, the PV solar industry immediately sees manufacturers closing their doors rapidly.

Stability for the Solar Industry

The principals at ISS know that the PV solar industry needs stability to grow at a sustainable pace. If subsidies are increased for a short period, growth spurts and then dies back as the subsidies are removed or lessened. Solar manufacturers, installers and solar farm developers need subsidies and rate structures that are reliable and can be depended on for a minimum of 3 years into the future to adequately make plans for their businesses. Our principals believe that a three year forward looking financial model is essential for stability in the industry.

Stability is Needed for The Solar Farm Industry

The Solar Farm Industry is growing

The PV solar farm industry appears to be growing in many areas of the country where city and county governments are amending land ordinances to allow them in more areas. Many counties are realizing that change is inevitable to their land ordinances if their states are to have a chance of meeting “state mandated” renewable energy targets. However, overly restrictive ordinances can increase the development costs to make many projects unfeasible. It’s a balancing act. The principals at ISS know that PV solar farms are one of the most cost effective ways to generate renewable energy. In addition, if structured properly, they can be a good investment. Call the principals at ISS to find out if solar farms can fit into your investment portfolio.