Selling solar to commercial and multi-family owners is more complex than selling to residential customers. Many differentiating factors set the sales process apart for commercial and multi-family owners. The motivation for commercial clients to consider solar installations differs from that of residential customers, and they also evaluate solar proposals differently. Therefore, as a solar installer, you should approach the process differently, too.
When selling solar to commercial and multi-family owners, you need to think out of the box and come up with some fresh and unique ideas to get solar leads and convert them successfully into your valued customers.
Selling solar to commercial and multi-family owners can be a challenging task, but several key strategies can help make the process more successful. Here are some steps you can take.
Understand the benefits of solar
Solar energy has a range of benefits, both for individual users and for society as a whole. Here are some of the key benefits of solar energy:
Cost savings: Solar energy can help to reduce or eliminate electricity bills, as solar panels generate electricity from sunlight, which is free and abundant.
Energy independence: By generating their own electricity, users of solar energy become less dependent on utilities and the traditional electricity grid.
Reduced carbon footprint: Solar energy is a clean, renewable energy source that produces no greenhouse gas emissions or other pollutants, helping to reduce carbon emissions and combat climate change.
Increased property value: Properties with solar energy systems are often more attractive to buyers, as they offer long-term cost savings and environmental benefits.
Job creation: The solar industry has created a significant number of jobs in recent years, helping to support local economies and provide employment opportunities.
Improved energy security: Solar energy can help to improve energy security by reducing reliance on imported fossil fuels and increasing the resilience of the electricity grid.
Technological innovation: The growth of the solar industry has spurred innovation in solar technology, leading to more efficient and cost-effective solar panels and energy storage solutions.Identify potential customers
When it comes to identifying potential customers for solar, there are a few different types of commercial and multi-family properties that you may want to focus on. Here are a few examples:
Businesses: Many businesses use a significant amount of electricity, making them potential candidates for solar. This includes retail stores, restaurants, hotels, and office buildings.
Apartment complexes: Multi-family properties, such as apartment complexes, can benefit from solar by reducing electricity costs for both common areas and individual units.
Condominiums: Condominiums are another type of multi-family property that may be interested in solar, as it can help to reduce electricity costs for both the condo association and individual unit owners.
Non-profit organizations: Non-profit organizations, such as schools, churches, and community centers, may be interested in solar as a way to reduce operating costs and free up funds for other programs.
Government buildings: Federal, state, and local government buildings often have large energy needs and may be interested in reducing costs and improving sustainability through solar.
When identifying potential customers, it's important to consider factors such as the size and location of the property, the property owner's level of interest in sustainability and energy efficiency, and the property's current energy usage and costs.
Offer a solar assessment
Offering a solar assessment is an important step in selling solar to commercial and multi-family owners, as it allows you to evaluate their energy needs and assess the viability of solar for their property. Here's how you can offer a solar assessment:
Reach out to the property owner: Contact the property owner or manager and explain that you are a solar provider interested in helping them reduce their energy costs and environmental impact.
Gather information: Ask the property owner for information about their energy usage, including utility bills and energy consumption data. This will help you to understand their current energy needs and identify areas where solar could be beneficial.
Schedule a site visit: Schedule a site visit to the property to conduct a solar assessment. During the visit, you can evaluate the property's solar potential, assess the roof or ground space available for solar panels, and evaluate any potential shading issues.
Conduct the solar assessment: During the solar assessment, you can use specialized software to analyze the property's energy usage data and evaluate the potential cost savings and environmental benefits of installing solar.
Provide a report: After the solar assessment, provide the property owner with a detailed report outlining your findings and recommendations. This report should include information about the property's energy usage, the potential cost savings of installing solar, and any financing options that may be available.
By offering a solar assessment, you can help property owners to understand the potential benefits of solar and make an informed decision about whether to invest in solar energy.
Provide financing options
Offering financing options can help to make solar energy more accessible to commercial and multi-family property owners who may be hesitant to invest in solar due to the upfront costs. Here are some financing options you can provide:
Lease agreements: A solar lease agreement allows the property owner to lease the solar panels from the solar provider for a set period of time, typically 10-20 years. The property owner pays a fixed monthly fee for the use of the solar panels, and the solar provider retains ownership of the panels and is responsible for maintenance and repairs.
Power Purchase Agreements (PPAs): A PPA is similar to a lease agreement, but the property owner pays for the electricity generated by the solar panels, rather than leasing the panels themselves. The solar provider owns and maintains the panels, and the property owner agrees to purchase the electricity generated by the panels at a fixed rate.
Property Assessed Clean Energy (PACE) financing: PACE financing is a type of financing that allows property owners to finance energy efficiency and renewable energy upgrades through a special assessment on their property tax bill. The financing is repaid over a period of 5-25 years, and the assessment stays with the property if it is sold.
Traditional financing: Property owners may also be able to secure traditional financing, such as a loan or line of credit, to finance the installation of solar panels. This option may be more suitable for property owners who have strong credit and financial stability.
By offering financing options, you can help to make solar energy more accessible to commercial and multi-family property owners, and help them to overcome the upfront costs associated with solar installation.
Emphasize the long-term benefits
When selling solar to commercial and multi-family property owners, it's important to emphasize the long-term benefits of solar energy. Here are some of the key long-term benefits of solar:
Cost savings: While the upfront costs of solar installation may be significant, the long-term cost savings can be substantial. Solar energy systems have a lifespan of 25-30 years, and can often pay for themselves within 5-10 years through reduced energy bills.
Reduced environmental impact: Solar energy is a clean, renewable energy source that produces no greenhouse gas emissions or other pollutants. By investing in solar, property owners can reduce their carbon footprint and contribute to a more sustainable future.
Increased property value: Properties with solar energy systems are often more attractive to buyers, as they offer long-term cost savings and environmental benefits. This can help to increase the property's value and make it more marketable in the future.
Energy independence: By generating their own electricity, property owners become less dependent on utilities and the traditional electricity grid. This can help to improve energy security and reduce the risk of electricity outages.
Maintenance and durability: Solar panels are durable and require little maintenance, meaning that property owners can benefit from low maintenance costs and reliable performance over the life of the system.
By emphasizing the long-term benefits of solar, you can help property owners to see the value in investing in solar energy, and understand how it can benefit their property and their bottom line over the long term.
Highlight incentives and tax credits
Incentives and tax credits are an important factor to consider when selling solar to commercial and multi-family property owners, as they can significantly reduce the upfront cost of solar installation. Here are some incentives and tax credits that you can highlight:
Federal Investment Tax Credit (ITC): The ITC is a federal tax credit that allows property owners to deduct up to 26% of the cost of their solar energy system from their federal taxes. This credit is available through the end of 2022 and will decrease to 22% in 2023.
State and Local Incentives: Many states and localities offer additional incentives to encourage the adoption of solar energy, such as rebates, grants, and tax credits. These incentives can vary widely depending on the location, so it's important to research the available incentives in the property owner's area.
Accelerated Depreciation: Property owners may also be able to take advantage of accelerated depreciation, which allows them to deduct a larger portion of the cost of the solar energy system from their taxes in the first year of ownership.
Renewable Energy Certificates (RECs): RECs are certificates that represent the environmental and social benefits of generating electricity from renewable sources. Property owners can sell RECs to utilities or other organizations that need to meet renewable energy targets, which can provide an additional source of revenue.
By highlighting these incentives and tax credits, you can help property owners to understand the financial benefits of solar energy, and demonstrate how solar can be a cost-effective investment for their property.
Conclusion
Selling solar to commercial and multi-family property owners can be a rewarding and important task, as it can help to reduce carbon emissions, increase energy independence, and provide long-term cost savings for property owners. When selling solar, it's important to emphasize the benefits of solar energy, including cost savings, reduced environmental impact, increased property value, and energy independence. Additionally, providing a solar assessment and offering financing options can help to make solar energy more accessible to property owners who may be hesitant to invest in solar due to upfront costs. Finally, highlighting available incentives and tax credits can demonstrate how solar can be a cost-effective investment for property owners. By following these steps, you can successfully sell solar to commercial and multi-family property owners and help to create a more sustainable future.
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