Bright ideas

Bright ideas

May 2, 2022

How to Grow Your Solar Business and Lower Soft Costs

With growing consumer demand and a steady drop in hardware costs, the solar industry has seen significant growth. But there are many challenges ahead for solar businesses including increasing soft costs that can really affect their bottom lines. With steep competition and tight margins, being able to effectively lower soft costs will be critical to long-term success.

How to Grow Your Solar Business and Lower Soft Costs

Source: U.S. Department of Energy Solar Energy Technologies Office

When we talk about solar energy soft costs, we are referring to the non-hardware costs associated with solar sales and installation. This includes financing, siting, permitting, installation, and other overhead costs that solar companies incur when acquiring new customers.

While solar hardware costs have declined as much as 60% since the beginning of 2010, soft costs for solar companies have steadily increased. According to the U.S. Department of Energy Solar Energy Technologies Office (SETO), soft costs now comprise up to 64% of the total price of residential solar systems.

The good news is that there’s opportunities to lower soft costs by improving processes and introducing efficiencies to your sales process. This can give solar businesses a big competitive advantage in this rapidly growing market.

Unique Challenges for Solar Sales Teams

For those who have been in the industry and have seen it grow, we know that there are unique obstacles for solar sales teams. Smart strategies can help you overcome solar sales challenges and convert more leads. For starters, eligibility criteria for solar customers (good credit, standards that must be met on the homeowner’s roof, etc.) leaves you with a very narrow pool of consumers who can seriously consider purchasing solar. This leads to fierce competition for a very narrow audience, often resulting in eligible prospects feeling burned out on cold calls and traditional high-volume marketing tactics. Colossus’s Chief Revenue Officer Heather Griffin has shared her expertise and experience in navigating these challenges and complexities to convert more solar sales in a competitive environment. You can read more about smart strategies and tools for optimizing efficiency and productivity here: How to Overcome Solar Sales Challenges to Convert More Leads.

Solar businesses are also finding ways to stay more competitive, including having a steady stream of leads that will help you reach and close more solar deals.

Partnering with solar marketing companies for customer acquisition solutions can help generate high quality solar leads for your sales teams. There are many things to consider when choosing a partner to grow your solar business and doing your research will help ensure you have selected a marketing partner that understands your unique business needs.

 Soft costs aren't decreasing as quickly as hardware costs. They now comprise up to 64 percent of the total price of residential solar energy systems.

Source: U.S. Department of Energy Solar Energy Technologies Office

Solar companies looking to scale their business might also consider using a powerful predictive dialer to help scale their solar business efficiently. This can help on multiple fronts including increasing contact rates, improving sit rates, supporting compliance, and maximizing profitability.

Utilizing technology built for the solar industry

Another way to optimize your solar sales process is utilizing technology to increase productivity and outcomes. Consider software dedicated to supporting solar businesses, with specialized functionality that will spare you from costly software customizations.

Colossus offers a suite of solutions that allows companies to improve the way they acquire, manage, and close leads and streamline solar sales processes. Our solar marketplace offers high-intent solar leads for your sales team to help lower customer acquisition costs. Businesses can leverage dynamic solar system design tools and customizable templates with instant editing capabilities that streamline the proposal design processes and help reduce costs.

As a clean technology company, Colossus is focused on decreasing the soft costs that contribute to overall project costs and the total amount the end-customer pays, thereby helping remove barriers to eligibility and expanding the pool of homeowners you can do business with. We work closely with our partners to offer solar software and sales solutions that drive meaningful results.

Discover how Colossus can help you with your solar business needs. Contact us to learn more about our solar software and sales solutions.

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