Page 226 | Solar.com

Please enter a valid zip code.

Solar Installation Customer Acquisition Costs

Get the Solar Energy Facts – What Are You Really Paying For?

By Solar Panel Installation Cost No Comments

 

The fall heat doesn’t seem to be subsiding, the air conditioner is still clicking on every day and you’ve decided that you’ve waited long enough. It’s time to install solar at your home.

After a quick web search, you get educated on the basic solar energy facts and make a couple of phone calls. Now there is a stack of bids sitting on the kitchen counter, and you don’t know what to do next. The bids are confusing, each one offers a different payment scheme, and you’re worried that you’ll make the wrong choice.

You’re not alone. A quick Google search for the term, “confusing solar bids,” reveals numerous guides to understanding solar bids, along with comments from frustrated homeowners. One reason for this confusion is that there are a variety of finance options available, including a cash purchase, lease and power purchase agreements. But in addition to this, the bids are intentionally confusing because much of the purchase price is made up of what’s known in the industry as “soft costs.”

While “hard costs” reflect the price of the actual panels and hardware, etc., and are actually decreasing year over year, soft costs refer to expenses associated with supply chain, labor, permitting and system design. While these soft costs are technically legitimate, not all are created equal. According to the most recent National Renewable Energy Laboratory report, the soft costs associated with customer acquisition average around 48 cents per watt. The report determined that customer acquisition was the surveyed solar installers’ third largest soft cost expense.

Solar Installation Customer Acquisition CostsNow, customer acquisition is important, but that’s a lot of money. Let’s do some quick math:

According to gosolarcalifornia.ca.gov, the average home solar installation system is four kilowatts, and there are 1,000 watts per kilowatt.

So take the 4,000 watts that are in an average-size system and multiply them by 48 cents per watt, and you’re looking at $1,920 in customer acquisition costs associated with the average installation.

Dang, right?

You’re on the hook for nearly $2,000 worth of costs generated by the solar company’s attempts at finding you as a customer and their subsequent marketing efforts.

And that’s where we come in. As a solar bidding marketplace, Solar.com reduces customer acquisition costs by bringing buyers to their area’s top quality installers instead of the other way around. As a result, solar installers save on marketing and lead generation, and this results in bids that are, on average, 25% less than what homeowners can get on their own.

For each job, we obtain seven to nine bids, analyze them, and then make recommendations based on our customers’ needs and their unique situations. Our advocacy takes the stress and worries out of the whole bidding process. Then, throughout the installation, we’re there to answer questions and provide support should any issues arise.

The Solar.com bidding service is free to homeowners. If you’d like to see how much you can save, head on over to our bid generator. If you’ve already obtained some bids on your own, we’ll include them in our analysis, and if they’re a good deal, we’ll let you know.

 

 

Los Angeles Solar Installation Permit Process About to Get Easier

By Solar Panel Installation Process No Comments

 

Here at Solar.com, we want to see solar panels on every compatible rooftop in the U.S. And while our plans for expansion are ambitious, our quest begins right here in the Los Angeles solar market. Lucky for us, recent local and state government initiatives indicate that we couldn’t have picked a better city or state in which to get started.

As a solar bid generator that works with both customers and installers, Solar.com knows that one of the most frustrating challenges to solar adoption is the hassle that comes with obtaining permits. That’s why we were so happy to read in late August a story from the LA Times reporting that a new solar permit efficiency bill was approved 22 to 1 in the state senate and 66 to 1 in the legislature. The purpose of the bill is to streamline the solar permitting process throughout the state of California, and, hopefully, cut down on the time and expense associated with this mandatory solar installation requirement. The bill also forbids homeowners associations from tacking on charges that increase the price of the solar installation by more than $1,000.

The bill, authored by Assemblyman Al Muratsuchi (D-Torrance), is called the Solar Permitting Efficiency Act (AB 2188). It will be great for the Los Angeles solar marketplace, because cities and counties throughout the state will be required to simplify the solar permitting process, and these measures could result in savings to homeowners of $1,000 or more. Assemblyman Muratsuchi’s official press release states, “AB 2188, the Solar Permitting Efficiency Act, will create more solar jobs, contribute to California’s clean energy goals, and save homeowners money on their electricity bills.”

California Governor Jerry Brown approved the bill on September 21, 2014, which means it’s time for Los Angeles homeowners to head on over to our bid generator and find out the financial benefits of going solar.

What do you think? Have you been putting off solar because the permitting process is too much of a hassle? Sound off in our comments section below. We’d love to hear your opinion on the matter.