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Publish Date: September 11th, 2024
Currently, the solar industry, as a whole, is booming with an annual growth rate of 25% (this includes residential, commercial, and utility-scale). But at the same time, homeowner customer satisfaction is at an all-time low.
From exploitative companies, aggressive sales tactics, misleading financial agreements, and appalling customer service, it’s not a surprise that the industry is struggling in the eyes of public opinion.
However, not all solar companies are made equal. Going solar with a high-integrity company, like Namaste Solar, protects your investment and helps strengthen the industry – giving us a chance to have a robust, trustworthy solar industry.
So, how did we get here – to an industry full of sharks? How can we heal the industry? And how can you be sure that your solar investment is in good hands?
There are ways you can ensure that your experience going solar is a good one and that the future of the industry is bright. We’ll share all of that here.
The Solar Industry Has an Integrity Problem
If you’re looking at installations and production, the solar industry can boast some impressive momentum.
But that growth is only one piece of the story.
In 2023, more than 100 solar installer bankruptcies and closures were reported, including several large national installers.
Further, NPR reported that the percentage of 1-star reviews of solar companies has increased by over 1,000% since 2018.
It’s clear some companies are struggling financially. And it’s obvious that in the court of public opinion, the solar industry isn’t doing well either.
How did things get this bad?
How The Solar Industry Got Here
Solar began as a hopeful industry. While photovoltaics had existed for decades, residential solar gained popularity in the early 2000s. People were really excited about the possibility of how solar could transform our world.
But it was an uphill battle to be a solar company. The cost of a solar system was higher. The incentives were less reliable. And the technology still had a way to go. Namaste Solar, started in 2005, was along for the ride on the many ups and downs of the early solar industry.
Then a young company turned national solar giant, Sunrun, created the payment model that dominates the industry today. Power Purchase Agreements (PPAs) and solar leases were created to allow customers to get solar with minimal upfront cost. In these arrangements, the solar company would install solar on a customer’s roof. The company would own the panels, and the customer would buy the electricity that the panels produced, often at a lower rate than their utility company charged them.
But with these arrangements, these companies weren’t receiving enough capital from their customers to hit their growth imperative, much less fund day-to-day operations. So, they needed investors. They created “Asset-Backed Securities,” where they bundled many PV systems and lease payments they were getting from their customers and sold them to other companies as guaranteed income. They started treating people like an income stream, rather than customers who needed support and reliability.
To be attractive to investors, they needed to stick to a high growth imperative. And that led to many of the aggressive tactics that have been off-putting for so many customers.
Pushy door-to-door salespeople, hidden fees, selling systems for as high as a customer would say yes to, and some cases of fraud are all the result of growth-focused companies who aren’t built in a way where they sustain their normal operations.
Customers are obvious victims in this situation. But salespeople are stuck in the machine, too. In these companies, their salespeople work solely on commission – often being paid by the number of panels they sell. So, they are incentivized to sell solar at any social and financial cost. It can be the difference between having money for their basic needs and making $0 that month.
And of course, when you’re working with a company that’s in it to make a quick buck, they often fail when it comes to providing customer service and servicing systems down the line. After all, if they’ve already made their money, the incentive to do well on the backend is virtually nonexistent.
Experts agree that the industry can’t keep going like this. The growth imperative in national companies means they have to keep bringing money in the door. And to attract that investor money, they have to keep expanding their customer base. But they spend more money to get new customers than the companies make in overall profits – many haven’t made a profit since their inception.
This dysfunction can't help but trickle down to customers. And the way that big, national solar companies sell is fundamentally broken. It's not meeting expectations, and it's created significant damage to the industry. The solar industry doesn't have the best reputation and many customers, understandably, have a deep lack of trust.
How Can You Be Sure You’re Making a Good Solar Investment
Not all solar companies run off this toxic business model. Namaste Solar, along with the other 80+ Amicus Solar Cooperative members, are examples of solar companies who are committed to doing business more equitably for their customers and employees. The Amicus Solar Cooperative is made up of high-quality, independent, values-driven companies. Working with them ensures your solar investment is a good one.
In the world of values-driven solar, you feel the difference when you interact with these companies. You feel the respect we have for our customers when we take your call. You feel the ease with which you can ask as many questions as you want before moving forward – no pressure or tight deadlines from us. You feel our focus on your goals, not our profits. While those other companies will tell you anything to make the sale, at Namaste Solar we’ll talk you out of solar if it isn’t a good fit for your goals and circumstances.
Here are a few tips that can help ensure that you’re working with a company that has your best interests in mind:
- Avoid pushy sales tactics – Listen to your inner voice. If it feels off, don’t go with it. And if they only give you 24 hours to sign a deal, run from that deal. Our team at Namaste Solar does not work on commission and will answer all your questions with no pressure.
- Do your due diligence – Vet the company before signing any documents. How long have they been in business? What do customers say in reviews? Does this company have a reputation locally?
- Make sure you get a custom design – You should be getting a custom design for your home – not some templatized quote. If the quote is not specific to your home, you may see unexpected costs and change orders after you signed the deal. Namaste Solar is known for having clear and transparent pricing up front.
- Consider their installation backlog – If you’re excited for solar, you probably want it as fast as possible. But think of a backlog as a sign of health for a company. Waiting a few months to get solar from a reliable installer is worth it for a system that will last 25+ years.
- Own your system if possible– Namaste Solar offers systems you can own and there are attractive financing options available. The value proposition is better for the customer in the long run with increased savings and added value to your home. It also makes selling your home with solar much more straightforward compared to a leased system.
- Get recommendations from trusted sources – While the internet can be great, try asking that friend you trust who installed their solar. Many local companies don’t put the same amount of money into marketing as the big, national players. Rather, they get customers based on their reputations and word of mouth.
- Research how the solar installer does business – Are they a certified B-Corp? What are their core values? Do they hire their installers as employees or 1099s? Do they provide a living wage, healthcare, and paid time off for their workers? Are they fully licensed, insured and have a full time service department?
To see what it’s like to work with a reputable, local installer, click the button below.
The Future of the Solar Industry
Where we spend our money and who we do business with matters. It matters for your experience going solar. But it also matters for the health of the industry.
The future of the industry depends on the choices we make now. Given the chance, bad players will continue to take center stage. Since they’re driven by profit and growth, they’ll keep with business as usual as long as they’re getting more customers.
On the other hand, we can create something really beautiful and honest in the solar industry. High-integrity, reputable solar companies are the key. At Namaste Solar, we entered the market to change the world, and we’re invested in doing that for the long-haul. Namaste Solar was built to transform energy through solar AND to transform business through our conscientious practices.
How are we different? You can read this blog to learn about the Namaste Solar difference in detail.
But here’s the cliff notes version:
- We’re locally owned and operated. We’re Colorado residents – we live here and work here. What happens here affects us, too. So, we treat your solar system like it’s a part of our home, because it is.
- We’re employee-owners. Meaning that our employees have a vested interest in the success of our work. This absolutely creates a high-quality result, as seen in our work and reputation.
- We’re a Certified B Corporation. This certification is rigorous. And it ensures that we walk the walk in our commitment to environmental and social excellence.
- Our community is one of our stakeholders. As part of our mission, we are driven to create holistic wealth for our communities. We share a portion of our profits with non-profits.
- And finally, the big one, our salespeople are non-commissioned. They make a living regardless of whether you buy solar from them. This allows them to give you straight-forward, no pressure advice. This alone is a game changer in a customer’s experience going solar, and we want you to feel the difference when you talk to our team.
If you’re interested in solar, choosing a trusted install partner is the most important choice. Find a company that shares your values, walks the walk, and is using business as a force for good, not just to make a quick buck. To learn if residential solar could be a good fit for you and your home, get started with your free quote today.
