Insights Newsletter #11
Is your solar business ready for 2024? Catch up on solar industry news and insights to grow in the new year.
Happy Friday!
Welcome to the latest edition of the Solar Business Insights bi-weekly newsletter!
Stay up to date on the latest solar market trends, technology, policy updates, strategies, and more. We research each topic and gain insights from solar professionals to provide everything you need to know about solar business, all in one place.
Each newsletter starts with a question with answers from the solar business community.
Question of the week:
Q: What solar industry training do you recommend for those who are new to the industry?
A: There may be some free courses online, but I highly recommend Solar Energy International’s 60-hour online courses that are at a cost.
Solar Energy News
Solar rules challenged in California: Since NEM 3.0 took place in April, many environmental groups have opposed the new ruling. Groups such as the Center for Biological Diversity, The Protect Our Communities Foundation, and the Environmental Working Group argue that NEM 3.0 violated state law by hindering the growth of the rooftop solar market.
The groups claim the CPUC ignored various benefits of rooftop solar and suggest that for-profit utilities nationwide are attempting to undermine such programs to protect their business model. On December 13th, there was a court hearing in California for both sides to present their cases.
According to the San Diego Union-Tribune, the court did not provide a timeline for ruling on the case, but if an update arises, we will keep you informed.
Market Trends
Wood Mackenzie solar market update overview: In the first three quarters of 2023, residential solar installations in the US increased 24% compared to 2022. Q3 set a record with 1.8 GW installed.
Woodmac attributed growth to improved supply chain conditions and increased demand in California before NEM 3.0 went into effect. The company expects high-interest rates, policy changes, and completion of the CA NEM 2.0 backlog to negatively impact the solar market in 2024.
While the 2024 outlook is unfavorable, Woodmac notes positive expectations such as lower module pricing due to oversupply and increasing retail rates.
What about 2025? Woodmac expects the residential solar market to recover and grow 10% annually through 2028.
Solar Innovation
Solar customers want to know the numbers. When homeowners are shopping for solar panels, they want quick access to transparent prices. Solar Redline is a solution.
While most solar companies require customers to submit personal information, Solar Redline operates differently. Customers can simply enter their ZIP code and their home’s average daily energy usage to receive solar pricing, reviews, and work examples from solar providers in their area.
Solar Redline is a strategic tool for solar businesses. Here’s how you can leverage this platform:
Showcase your work: Display your expertise by providing visual content like pictures and videos.
Set customer expectations: Clearly communicate what your company offers, including products and services.
Ensure competitive edge: Utilize the platform to see how you compare to other companies in the same area, allowing you to stay competitive in the market.
Transparency is key. Consider listing your company on Solar Redline to showcase your offering and expertise to potential solar buyers.
Business Strategy
If Woodmac’s predictions for 2024 are correct and the solar market takes a downturn, what can your business do to navigate challenges? Consider the following strategies to maintain and potentially grow your operations:
Diversify offerings: Explore options in other sectors such as commercial, industrial, or solar-plus-storage solutions. Consider expanding into emerging markets or regions with more favorable regulatory policies, or find opportunities in related clean-tech or smart home products.
Operational efficiency: Find ways to reduce costs and improve overall business productivity. Implement streamlined processes and technologies to enhance project management and installation timelines.
Adapt pricing strategies: Be flexible to remain competitive and appeal to cost-aware customers. Explore innovative financing options or partnerships to expand accessibility to more customers.
Customer education: Invest in educating customers about the long-term benefits of solar energy and clarify common misconceptions. Offer information and guidance on available incentives, rebates, or financing options to encourage adoption.
Explore new technologies: Stay aware of new solar technologies by reading our newsletters and consider adding the latest innovations to your offerings or to support your business.
Focus on customer service: Prioritize excellent customer service to build a positive reputation and generate referrals. Promptly address customer concerns and maintain transparency throughout the installation process.
By adopting a proactive and adaptive approach to solar, your business can position itself to conquer challenges in 2024 and emerge stronger in 2025.
Want to stay ahead in the ever-evolving solar industry?
In 2024, we are launching a members-only website dedicated to providing invaluable resources for your solar business to thrive. The site will include resources and guides about regulatory policies, business strategies, solar reports, and much more.
Join the waitlist to be the first to know when our members-only site is live!
Clean Energy Funding
The Biden-Harris Administration announced $530 million in funding (derived from the Inflation Reduction Act) to help adopt and implement the latest building energy codes and standards. The goal is to modernize buildings to use less energy, increase resilience to natural disasters, and save customers money on energy bills.
Here are a few other key points from this announcement:
Homes built to current energy codes are claimed to be about 40% more efficient than those built 15 years ago.
You must submit brief concept papers by February 9, 2024, with full applications due by April 30, 2024.
As building codes focus on energy efficiency and lowering emissions, this is an opportunity for your business to expand. Government funding can support efforts to enter new markets and regions to establish a partnership with local businesses.
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Get started by contacting our team or scheduling a 30-minute call. Let’s grow together.
Upcoming Events & Conferences
Intersolar North America: January 17-19, 2024
San Diego, California
RE+ Hawai’i: January 22-23, 2024
Honolulu, Hawai'i
Happy Holidays from the SBI team!
The purpose of this newsletter is to stay informed on business in the solar industry. Advice or opinions may be included, but any actions taken are at your own risk. This page may include referral links or sponsored advertisements at no added cost to you. Any purchases made help support the creation of the Solar Business Insights newsletter. Please contact us with any questions.