Two must-read reports dropped on April 23 that outline the residential solar sector’s trajectory through 2025. Wood Mackenzie released the US Residential Solar Finance Update H1 2025, highlighting the increasing viability and popularity of third-party ownership (TPO) models. Meanwhile, an expanding majority of American energy consumers feel anxious about rising energy bills, according to a new survey by PowerLines, a nonpartisan consumer education nonprofit, conducted in partnership with Ipsos, a multinational market research and consulting firm.

With growing economic uncertainty, installers have a dual chance to capitalize on the residential solar market’s shift toward TPOs: addressing consumer energy anxieties while securing long-term business resilience.

Let’s break down the details in the two reports and explore how rooftop solar installers can leverage this convergence in the residential solar market.

As Customer Solar Ownership Shrinks, Third-Party Ownership Rises

One of the main takeaways from Wood Mackenzie’s report shows the rise in TPO projects as the customer ownership segment shrinks. After surging more than 30% in 2024, TPO volumes reached a 45% market share, their highest level since 2016. By Q4 2024, TPOs had eclipsed customer-owned sales to set a new installation record. The report also noted that, as major lenders experienced declining volumes, credit unions have started playing a larger role, with lenders in general reevaluating their offerings to incorporate TPO options.

Wood Mackenzie expects the TPO segment to continue expanding, with 14% projected growth in 2025, driven by several structural advantages. First is the Inflation Reduction Act’s (IRA) incentive stacking, since only TPO systems qualify for multiple ITC adders, including the 10% domestic content bonus and 20% low-income community credit. The other advantage involves interest rate insulation. Since TPO contracts lock in financing terms for 20 to 25 years, they remain unaffected by Federal Reserve policy shifts.

Alleviating Consumer Anxiety Over Energy Affordability

TPO models are particularly critical in regions with high electricity rates but moderate household incomes, where upfront system costs remain a barrier. 

The PowerLines/Ipsos survey showed that 62% of Americans report higher electricity or gas bills compared to a year ago, with 73% expressing concern about further increases. This financial strain is particularly acute among low-to-moderate income (LMI) households, where more than eight out of ten respondents cited affordability anxiety.

Notably, 47% of survey participants view rising utility costs as a negative economic indicator, suggesting broad recognition of systemic energy affordability challenges. Additionally, 58% of consumers feel they lack control over their energy costs, and 57% said they have a limited understanding of utility pricing structures.

The survey results paint a clear picture of consumers seeing traditional energy markets as increasingly unaffordable and incomprehensible. This disconnect creates an opportunity for installers to position TPO as a two-pronged solution that simplifies solar access while directly addressing financial anxieties.

By assuming responsibility for system performance, maintenance, and regulatory compliance, TPO providers effectively make solar access more equitable for customers who find energy markets opaque or intimidating. For credit-constrained households (33% of TPO adopters earn under $50,000 annually), leases and power purchase agreements (PPAs) eliminate upfront costs, deliver immediate savings, and replace volatile utility bills with fixed, predictable payments.

Key TPO Considerations: Manufacturer Bankability, Module Reliability, and Industry-Leading Warranties

In TPO models, module choice directly impacts installer liability, financier confidence, and long-term revenue streams. Unlike customer-owned systems where homeowners bear performance risks, TPO demands modules that minimize operational disruptions over decades. When complying with the stringent requirements of third-party financiers, installers deploying TPO PV systems will often need to consider three key factors: the original equipment manufacturer’s (OEM) bankability, module reliability, and warranties. 

Proven Track Record of Bankability

Financiers scrutinize module manufacturers’ portfolios, debt ratios, production continuity plans, and bankruptcy risks in determining the OEM’s bankability, since system owners rely on decades of component support. Installers should consider manufacturers with a proven track record of third-party and independent bankability ratings and recognition, which indicate financial strength, consistent R&D investment, and a sustained presence in the industry. This type of due diligence mitigates the risks associated with manufacturer insolvency, which could void performance warranties and necessitate costly module replacements.

Mechanical Testing, Low Degradation, and Excellent Reliability

Third-party owners typically mandate modules with low degradation rates to safeguard 25-year cash flows. Installers should select modules with proven field performance, backed by validated mechanical testing results, as underperformance risks can trigger costly remediation clauses. Reliability is critical when facing microclimate factors, such as hail-prone regions, extreme wind effects, or heavy snow loads, which further necessitate module selections with proven durability under localized environmental stress conditions.

25/25 Warranty and Liability Alignment

TPO contracts typically require 25-year product and performance warranties to align installer obligations with manufacturer guarantees. Installers should verify that module warranties cover not only power output but also defects, hotspot resistance, and potential-induced degradation (PID) susceptibility. Offering transferability clauses can add value when systems change ownership, preserving customer satisfaction during home sales.

Consumer Trust-Building and Rooftop PV Modules Assembled in Texas

The PowerLines/Ipsos survey highlights how transparency emerges as a critical trust-building tool: 47% of survey respondents view rising utility costs as systemic failures, creating skepticism toward traditional energy providers.

Installers can counter homeowners’ perceptions by offering TPO contracts with no-hidden-fee guarantees, real-time production tracking, and end-of-lease buyout options. These features position installers as consumer allies rather than transactional vendors, helping with referrals and repeat business.

Trinasolar’s high-efficiency Vertex S+ modules, assembled in Texas and covered by the TrinaProtect 25/25 warranty, enable residential solar installers to capture domestic content bonuses, streamline logistics, and align with consumer preferences by TPO solutions that balance cost, reliability, and market appeal.

Local assembly also enhances warranty enforcement capabilities. Although rare, if a module defect arises, installers can work directly with U.S.-based quality teams to expedite replacements and avoid the weeks-long delays typically associated with imports. This responsiveness helps maintain system uptime, meet production guarantees, and avoid penalty clauses triggered by prolonged downtimes.

Interested in where to buy Vertex S+ residential modules assembled in Texas? Follow the link and learn more.

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