L R AS Published on Saturday 2 May 2020 - n° 320 - Categories:the American PV

U.S. residential installers will do anything to get customers

To find customers, Sun Power offers residential solar installations with $0 down payment and the first six months free (i.e. paid for by the company), provided the contracts

of installations over 20 years be signed before 31 May 2020. This offer is intended to speed up the decision of home owners. A 10- or 15-year offer is also possible with a discount.

EnergyTrend of 28 April

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As a result of the crisis, installers are making unprecedented offers to homeowners and businesses. Sunrun offers a rental contract that costs only $1 per month in the first half of the year. California's Sustainable Capital Finance, financed by NextEra Energy, charges nothing in the first year of its 15-30 year contract.

In the solar industry, where margins are tight and volume is an asset, these low prices are unprecedented. But so is the era of coronavirus.

Sales of solar installation contracts have fallen sharply in recent weeks, especially in the residential sector.

Sacrificing part of the revenues to recruit customers may prove useful for companies with sufficient financial means to get through the pandemic. This type of reduced rate offer from Sunrun and Sustainable Capital Finance is designed to rebuild their order portfolios at a time when it is difficult to reach a deal. The structure of the contract allows Sustainable Capital to pay out money to installers and developers earlier than usual, even if some permits remain blocked.

"We offer a solution to encourage consumers to act quickly so that we can move faster in the queue once the permit is granted. We also provide them with a mechanism to reduce energy costs in the first year: they can then use those savings," proposes Sustainable Capital Finance.

In all states where it operates and for solar and solar-plus-storage installations, Sunrun offers $1 per month for the first six months of the contract. Customers get credit on their regular bill, leaving them with only $1 to pay. Clients can also choose to receive a cash gift card of $1,000 to $1,250 for solar + storage systems, and $500 to $1,000 for solar installations only. In the seventh month, rent rises to its normal level.

The challenge for installation companies is not the lack of demand, Sunrun said, but rather the inability to reach customers in traditional ways, such as home sales. On the other hand, observers are sceptical and wonder: is it enough to offer additional savings to convince new customers to switch to solar in the event of a pandemic, when they have long known that solar leases and power purchase agreements can save money?

Although there is a demand for residential solar energy, the overall economic situation - highlighted by tens of millions of Americans filing for unemployment since the end of March - should prevail and encourage the postponement of contracts.

If the economy tightens further, analysts do not expect consumers to rush to sign solar installation contracts (despite some signals that demand is marginally down).

The halt in permitting and construction could impact 10% to 30% of Sustainable Capital Finance's 200 megawatt order book. After the end of the pandemic, professional (C&I) clients may be slow to become interested in solar power. Some will not need as much electricity because of the persistence of teleworking. Many of these companies will no longer be able to borrow. The volume of potential business (C&I) customers is likely to decrease.

"Right now, there is an extreme cash flow problem for some of these small installers," said Wood Mackenzie. "That's the big problem for the industry. »

https://www.greentechmedia.com/articles/read/one-response-to-the-coronavirus-giving-solar-away-for-free

GreenTech Media of 23 April

Editor's note In order for two leading companies (Sunrun and SunPower) to embark on a contract hunt, the volume of signatures must have collapsed. It's true that the number of unemployed is increasing at a dizzying rate, which doesn't encourage homeowners to embark on a major spending spree. It must therefore be deduced that the crisis will hit American (but probably also European) residential installers hard during the second half of the year and perhaps also at the beginning of 2021.

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