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Dear All Valuable Partners:

The Federal Reserve has cut interest rates by 0.5% today, which is great= news for the solar industry. I would like to share some personal insights = on the potential impact:

  1. Financing companies may reduce dealer fees by 3-4% soon, lowering= overall costs for homeowners. This should help contractors close more deal= s.
  2. If the Fed cuts rates by another 0.5% in the next 2-3 months= , leading to an additional 3-4% drop in dealer fees, loan products wil= l become more attractive than third-party ownership (TPO) options.

In terms of product cost trends, after speaking with over 40 manufacture= rs, finance companies, and supply chain vendors, here’s a brief summa= ry:

  1. Both Resi and Commercial Solar Panel prices are expected to rise to th= e high 20-cent range due to additional import tariffs. (If you find Tier 1 = panels below 20 cents right now, it’s fine to maintain a small stock,= as long as they are approved by most financing companies' approved ven= dor lists (AVL).
  2. U.S.-assembled panel prices should align with non-U.S.-assembled panel= s, thanks to government rebates supporting U.S. factories. (Neither U.S.- n= or non-U.S.-assembled panels currently qualify for the additional 10% tax c= redit under the IRA).
  3. Inverter, racking, and balance-of-system (BOS) prices and supplies are= expected to remain stable.
  4. Battery prices are likely to decrease, driven by the drop in raw mater= ial costs for lithium iron.

Overall, the solar industry’s "worst times" seem to be b= ehind us, and a brighter future is on the horizon.

As the owner of Fortune Energy, I am truly excited about the opportuniti= es ahead and I sincerely hope to collaborate with all of you to grow our so= lar businesses together in the near future.

 

Jack Meng

President of Fortune Energy

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