How to make your solar installation business competitive – Adaptive System Design

1/5/2020
As the solar market gets more established, the competition between installation companies will increase. More players, both regional and national, are entering the market. While this is good for solar shoppers and the overall growth of the solar industry, installers might face tougher competition. As a result, business differentiation becomes more important.
Solar Installer Competitive Business
How to Increase Your Competitiveness With Adaptive System Design

As the solar market gets more established, the competition between installation companies will increase. More players, both regional and national, are entering the market. While this is good for solar shoppers and the overall growth of the solar industry, installers might face tougher competition. As a result, business differentiation becomes more important.

 

Imagine you are a local solar installer in Southern California, one of the most established solar markets in the country. You had many successful years many installations, but you realize that getting customers to make a solar purchase has become more difficult. The easy sales have mostly been harvested.

 

The problem is not that there is a lack of solar awareness, you have a solid lead pipeline and a decent number of quotes. However, winning these customers has become difficult - conversion rates (interactions divided by the number of sales) are decreasing, now you need more leads. How do you ensure the quotes you have out end in a sale?

Improve the Bottom Line

While increasing the number of leads helps, you realize that the conversion rate itself should also grow in order to really improve the bottom line of your business. You start thinking about price reductions to win more customers who compare quotes from different installers. But your margins are already declining and the recently imposed tariffs on solar modules are not making it easier either. So what should you do?

This is where differentiation can help. A conversation with colleagues and home owners who went solar with a competitor will tell you that everyone is quoting the same solar equipment. This makes it easy for solar shoppers to compare, but it's not adding value to the systems or giving customers a product choice.

On the other hand... by quoting the same equipment to all of you prospects leads to a “one-size-fits-all” approach that is not efficient - every roof, every system is unique. For example, why offer DC optimizers that only increase cost, labor and complexity of a system, when shading is not even an issue?

 

A Better Solution

Time to look at alternatives. New technologies, like Adaptive System Design, are not the same as straight string systems or Traditional MLPE (micro level power electronics) systems. Adaptive System Design makes it possible to design flexible systems to the specific needs of a customer. This method will cost-optimize how the entire system is built. This simplifies most of the systems because they require less components and reduce both cost and labor - making it a more competitive option for your potential customers. 

By providing a real alternative to your prospects, you can differentiate yourself not only on price, but also on value, as you are able to tailor-fit systems to your specific customer's needs. This reliefs the pressure on your margin and will positively impact your customer retention cost and bottom line. 

Conclusion

The Fronius Smart Solution is the first adaptive system design solution for solar. Due to the modularity of the Fronius Smart Solution, it adapts to specific needs of any customer. With the power of differentiation, the Fronius Smart Solution can help you to stay competitive and to improve your conversion rate.   As sole installer, you have the ability to only choose the components you actually need and optimize your entire system design, while maintaining a minimal number of components.

To learn more about the Fronius Smart Solution contact pv-sales-usa@fronius.com or join our webinar here.

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We sell to multiple distributors across the US. We can direct you to the ones with the best pricing on Fronius inverters.

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