Solar Power: Bright Future in U.S.
Michelle Philippon - Business Development Specialist
A few weeks ago, Inc. Magazine Editor-at-Large Kimberly Weisul highlighted the 6 most profitable industries of 2017. For our industry report this month, we’re going to briefly delve into an industry with a particularly bright future: solar power.
As IBISWorld points out, the average profits of the solar industry in the U.S. are 30% due to several key external factors:
- Tax credits for energy efficiency
- The price of natural gas
- The world price of steaming coal
- Electric power consumption
- The price of semiconductor and electronic components
The industry right now is definitely in growth mode. Though the revenue volatility is high, capital intensity and industry assistance are also high.
By 2021, the solar power industry is anticipated to increase 18.7% annually to $7.6 billion.
And who will this growth affect?
The largest buying industry from a supply chain perspective is electric power transmission, which distributes electricity from power generators to end users. The transmission industry consists of power lines and transformer stations.
In terms of key selling industries, IBISWorld identifies two that will profit the most:
- Solar panel manufacturing
- Steel framing (participates in solar power generating facility construction)
Currently, most solar business locations are concentrated in areas of the country with receptive state legislation, good exposure to sunlight, and availability of land. Most solar power businesses (1/3) are located in the southwest, with California leading the charge an estimated 30.1% found there.
So if your business can profit from involvement in the solar power industry, definitely don’t overlook this growing market!
Questions or comments? Please contact Michelle Philippon at mphilippon@teamCOACT.com