Questions about Solar Installation Business
I’m looking at a solar installation company that does both commercial and residential. I have looked at several similar businesses in the past and have some experience with this as a commercial customer but have never been in the industry myself. If anyone has experience in the solar installation business, I would love to hear your thoughts on the following issues:
1) What is the long-term viability of the solar installation model given that federal tax credits are going away? In other words, will sales decline? In the state the business is in, one-to-one net metering is ending also...will that harm existing installation company’s?
2) All of the solar businesses I’ve seen have been growing fast and, as part of that, show a high EBITDA but very low cash flow. Any thoughts on how to manage that issue?
3) Am I correct to assume that commercial work will be less impacted by the loss of tax credits and one-to-one net metering?
Thank you ahead of time for any insights on these issues!