Centering the Customer in the Residential Solar Transition

Thomas Plagemann has over 30 years of experience in energy project finance, beginning with the financing of primarily gas-fired generation in the 1990s. He transitioned to renewables financing in the mid-2000s and later worked for several solar-specific companies.

Now, as the founder of ClearLight Solar, Plagemann emphasizes that financiers and customers are naturally aligned in their interests, as both want solar assets to maximize their potentials. He notes that at larger, vertically integrated, and publicly traded companies, the emphasis on installing more generating capacity can overtake the need to make sure each asset is performing to the best of its ability and properly account for the costs that go into each asset. He is attempting to fill that gap for his investors, which will also maximize the benefits available to solar customers.

Plagemann expresses strong optimism for the future of solar due to the significant power demand growth happening. Energy assets are long-term investments that will last for several decades, but the significant demand growth combined with an aging electric grid leaves Plagemann to predict that electric prices will only continue to rise. As the lowest-cost remedy to rising power demand, renewables will be a mainstay industry in America’s energy sector for generations. He further sees advancements in the solar manufacturing and battery technology spaces as massive upsides for the future of the industry and its ability to secure American energy independence.

As a third-party owner (TPO) of residential solar installations, ClearLight is not involved in the selling of the system to the homeowner but instead owns the system on their behalf and ensures it continues to deliver a fair return. The company does its due diligence to estimate the value of a system based on data from the installer before it agrees to acquire it. Plagemann aims for this business model to create transparency for the solar customer while saving them money.

Plagemann acknowledges the growing role that TPOs will play in the residential solar market following the expiration of the tax credit for homeowners to install solar that they own directly. He recognizes that the TPO model can be confusing for many but emphasizes that his goal is to make the process as easy and transparent as possible for everyone involved.

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