Is residential solar a “bad product”? That’s the question Jigar Shah raised in his recent podcast episode on Open Circuit. The conversation has stirred a lot of responses, some justified and some missing the mark.
Here’s my take, as someone who’s been developing and constructing solar for over a decade:
I agree that permitting, interconnection, and design are far too manual and time-consuming. These areas are long overdue for automation and AI-driven optimization. Online portals like OpenGov and PermitEyes should be the norm, not the exception. But even with those efficiencies, the reality is that it takes serious investment in software, systems, and staff to make those processes smoother. That cost has to be recouped somehow — and for most EPCs, it lands in our overhead and project pricing.
That leads to the real issue: the number of hands in the deal. Dealer fees that eat up 25–30%, sales reps walking away with $10,000 per deal, plus marketing firms charging a premium for lead generation. There’s often very little left for the company actually building the system and standing behind it.
That’s why responsible EPCs are pricing projects at $3.50 to $4.00 per watt. That’s not price gouging — that’s the cost to responsibly design, permit, install, service, and warranty a project without cutting corners or risking insolvency. And yet, because of pressure to attract sales dealers and hit low redlines, too many EPCs compromise — and we’re now seeing the consequences play out across the industry in the form of bankruptcies and broken customer trust.
Sunrun’s earnings calls and SEC filings continue to highlight their “creation cost” as a key metric. It’s a clear indicator of how expensive this ecosystem has become — not because the product itself is flawed, but because the structure around it has been built on shaky financial logic.
I don’t believe residential solar is a bad product. I believe it’s a solid product burdened by a broken delivery model. If we want better outcomes, we need to stop pointing fingers at the product and start rethinking the structure behind how we bring it to market.
Here’s the full episode:
open.spotify.com/episode/2lm…
I’m curious what others think. Are we finally ready to evolve this model?
#solar #residentialsolar #energytransition #solardevelopment #cleanenergy #solarEPC #solarbusiness