Solar Industry Cost Curtain Pulled Back! - Peak Power

Solar Industry Cost Curtain Pulled Back!

Solar Industry Cost Curtain Pulled Back!

Before the cinema existed or any modern form of mass media for that matter, people sought entertainment by going to the local playhouse/theatre. Reflecting back far before the Peak Power Solutions days, my initial vision took me back to reading Shakespeare in high school. Five-part plays, in which they used a curtain closure/opening to separate each act and/or change venue within an act or even time of day. After being in the electrical contracting industry for nearly 3 decades, I’ve started to see the parallels more profoundly to the era I’ve just referenced. The curtain has parted and closed on different segments of the industry and, at times, staying on one side or the other longer than needed.

Nevertheless, the electrical industry has seen the dawning of more consumer intelligence and independence, ranging from enhanced integrated controls, to distributed generation via the most common path…a solar system. It was barely three decades ago when we saw solar arrays sporadically popping up. Northern California community-owned utility company Sacramento Municipal Utility District (SMUD), built and operated one of the first utility scale solar systems in the country, recently adding to that array and swapping out old gear. In addition to the example above, there were periodic engineers tinkering out in their garages with primitive gear and batteries prior to the days of net metering.

Fast forward to now and we have so many hats in the ring, making a valiant attempt to make a quick buck in what is now a multi-billion dollar industry. Those hats fall into over a half-dozen categories that I would like to illuminate for you, as well as highlight what the overall impact of the players with each.

The first is the home improvement companies. These are the folks that exist to provide added value to your home, whether it’s a solar addition, new siding on your house, or a new heating/cooling system for your home. They exist to bring your house from Yugo status (aging myself here, but that’s ok) to the Cadillac home on the block that will bring in the most cash once its sold. Furthermore, these guys are usually pretty good at generating leads and setting appointments, but fuel to the oversaturation of a message that may or may not be applicable to every customer. I sometime call this the blanket method; not everyone is cold in the first place, thus qualifying their need accurately is key.

Furthering to the erosion I just spoke of would be our next category: the lead generators. This would be the blanket theory, doused in espresso. These guys are going out with the hope of jamming the pipeline so full, that eventually someone will have to hit the blow-off valve and a few customers will come spilling out. When those results do come tumbling out, we have the emergence of the subsequent category.

The IP startup companies, as I commonly refer to as the big box store companies. Fueled by extraordinarily slim margins and banking on the hopes that simply doing a lot of jobs and having their highly visible trucks will somehow translate into credibility. One of the key problems here is they burn their laborers out and increase their liability exposure by having exhausted workers and hastily installed systems. This translates into more warranty calls and rapidly diminished profitability, profits that didn’t even exist to start. Labor is an important piece to consider as well, as the solar industry is one of the rare industries in which labor costs have been amazingly stable as of late.
Not to be neglected, finance only companies are the ones that exist to get customers what they want (consistently priced KWh without the obligation to the physical assets to produce), for the term they want, without any associated costs or worries correlated to maintaining a solar system.

The ideal solution for a resident of the community is to seek and secure the service of a turn-key contractor. Having a turn-key contractor with local ties, a heart for the community, expertise that has spanned the electrical industry as a whole, and operates via a strong referral presence, demonstrates both relational soundness, but also highlights the contractor’s ability to navigate successfully through a historically volatile and ever-changing market. I say with a humble confidence that Peak Power Solutions was built on that core tenet and will deviate for nothing when it comes to forging lasting relationships. Give Peak Power Solutions a call today and begin your journey toward energy liberation.

Give me a call today and let’s start now!

714-500-7248

By | 2018-03-21T15:22:41+00:00 March 21st, 2018|California Solar|0 Comments

About the Author:

Peak Power Solutions founder and CEO. Matt has over 25 years of experience in electrical contracting and solar.

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