This Innovative Manufacturing Business produces products that cut Solar Installation costs by up to 50%.
Even though there has been significant reduction in the cost of solar panels over the past few years, no significant reductions have been introduced in the hardware and installation labor cost of the systems. Hardware costs have increased while soft costs, a component of which is installation labor remains at approximately 50% of the total system cost. At 55 cents per watt, the labor content in an average 6kw system is approximately $3,000.
Formed in 2012 the company is a leading innovator in the solar industry with strong intellectual property protections via utility and provisional patents, with a customer base primarily within large installation companies. Among its firsts are introduction of products that reduces cost and installation time in residential and commercial solar installations. The company’s product designs are aimed at reducing installation time and labor costs by 30% to 50% as compared to the existing racking systems currently on the market. The company’s primary points of differentiation revolve around racking systems and related products designed to reduce the materials required, roof penetrations and installation time. The company offers a tremendous upside for the right buyer by providing a market proven set of products with favorable supplier relationships to minimize inventory investment.
The global push for clean renewable energy coupled with decreases in the overall cost of the systems is causing a surge in installations. This growing market is served by a number of companies both large and small who operate on both a local and global basis. The cost of solar panels has dropped dramatically over the recent past with racking and installation becoming a more significant portion of total project cost. The innovative design of the Company’s products allows for dramatic cost reductions in the installation and maintenance of solar energy systems. The Company has developed solar racking systems with the same innovative approach for the both the residential markets and small commercial products. It has also developed a completed line of roof flashing products.
In addition, In 2017, the owners of the Company formed a separate Corporation which has developed an e-commerce portal which allows customers to design, order and have installed a residential solar project in a completely automated environment working at their own pace (SOLD SEPARATELY). While other similar platforms claim to offer the same capabilities, they are in fact, lead generators who hand off potential customers to several installers who then bid on the project whereas this Company will provide an instant quote, which once accepted, furnishes all of the materials and services required to complete the project. This is achieved through integration with the systems of third party vendors who provide the materials, installation labor and services such as, permitting and interconnection agreements, thus the platform is easily scalable.
The Company had its first commercial sale in late 2013. Its products are manufactured in the most cost-effective manner as the fabrication of the various parts required for its systems can be performed by most metal fabricators. The Company has arrangements with suppliers allowing for product to be sourced from multiple locations and has an arrangement with a major supplier for just-in-time inventory availability.
The company is able to achieve high levels of quality control to meet Clients’ desired products by dealing only with suppliers who have met the Company’s requirements and have, over time, produced products that have met or exceeded the Company’s specifications.
The owners are selling because additional resources required of the marketing and sales required to achieve the market potential cannot be supported by the current ownership as they have other investment priorities.
This Company addresses two of the mains issues plaguing residential solar, the first being the bothersome phone calls and visits from commissioned solar salespeople. With this Company the potential customer can browse anonymously and receive pricing before having to furnish their personal information. Once the decision is made the customer then has control of the process by scheduling the site inspection and final installation of their project.
The second issue addressed by this Company is customer acquisition costs which can be as much as 30% of the entire project. This Company virtually eliminates this cost and thus can offer lower prices with higher margins than its competitors.