While the solar industry keeps growing, the residential solar market still faces very high customer acquisition costs, which can have an impact on the growth of solar. As the latest Energy Sage Installer Survey shows, 70% of solar installers say that customer acquisition costs stayed high, or increased, last year.
High customer acquisition cost is a problem for solar installation businesses
Some innovative installation companies have made progress in differentiating themselves from their competition. But most solar installers are still competing with the same solutions over the same pool of prospects. This lack of differentiation causes high customer acquisition costs, slows growth, and lowers margins. With almost every solar shopper comparing multiple quotes, often pricing becomes the only differentiator. But this can diminish margins, and it is painful for solar sales teams to spend hours with a prospect, educate them, create a proposal, only to lose the sale to a competitor.
So, what are customers really looking for? To answer that question, it is crucial to look at the needs and desires of solar shoppers. These shoppers are looking for efficient performance, high reliability for peace of mind, and a great return on their solar investment. How can solar installers satisfy these needs?
How to meet solar customers’ needs
System performance depends highly on proper system design and the right inverter technology. Studies have shown that modern string inverter technology outperforms DC optimizers in both shaded and unshaded conditions. While DC optimizers can recoup some of the losses caused by shade, they also consume energy, lowering the annual energy output, as shown by an independent study by the University of Southern Denmark. Thus, software-based shade mitigation features of modern string inverters perform better, and do not require additional hardware. For example, the Fronius Dynamic Peak Manager (DPM) is an enhanced MPP tracking software that scans the entire I-V curve of a solar module to continuously operate at the global maximum power point, effectively mitigating the impacts of shade.
Given the size of the investment, and the fact that solar is still a relatively new industry, customers are looking for assurance that their investment is safe. And they are also looking for reliability. To achieve that, high-quality equipment from trustworthy brands is essential.
By offering a differentiated solution—both in terms of equipment and add-on services—a solar installation business can close more deals at lower customer acquisition costs, which sets the foundation for more growth. Delighting these customers with high performance, reliability, and proactive services over the system’s lifetime will turn them into advocates, accelerating the growth of the installation business with referrals.
To read the studies quoted in this article and learn more about how Fronius helps grow your solar installation business faster, visit the Fronius website here.
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