In the introverted world of solar, differentiation amounts to little more incremental increases in panel efficiency and then shouting louder to be heard above crowd. “We don’t need branding” is the familiar cry, “we need awareness and PR”.

It’s an industry ripe for consolidation, and the winners will be those companies that dominate categories with strong brands. The category that is the most susceptible to consolidation is the installer market. It is highly fragmented and the ripest for roll-up and brand domination. There are 750 installers in California alone, a market that comprises 80 percent of the  US solar market. The top 10 installers in California have 40 percent of the market. The rest are small  “mom and pops”. Most are former electricians with little marketing or business savvy.

The consolidation straws are in the wind. The larger solar integrators are buying small installation businesses in a trend that’s bound to continue. Companies such as groSolar, SolarCity, Real Goods Solar and Acro Energy are said to be the most active. They have the brand potential, they have the resources and they have seen the opportunity.

There’s an interesting look at these companies on the Sustainable Business website (www.sustainablebusiness.com/index.cfm/go/news.feature/id/1736)

How will the consolidation happen, and what will it look like?

It’s will not be just about size and market share. It will be about brand and the relationship with the customer. At the residential/commercial end of the solar spectrum it’s a fundamentally different kind of business model than at the industrial end. The residential market requires much more of a retail mindset and approach to the market in which the buying experience is paramount.  Currently, installers think about what they do – install panels. The physical “installation” of the product, the solar panel, is in fact a small piece of the equation for customers.

This is a typical hardware/manufacturing mindset that is all about the product. Manufacturers are typically terrible marketers and retailers. The retail mindset is all about the buyer relationship and experience. The manufacturing mindset is all about product and technology. The buyer relationship and experience was at the heart of the Saturn proposition and success. Disconnected from the low-grade experience of the  GM dealerships, Saturn saw a chance to reinvent the industry and build a brand around a complete buying and owning relationship. And it worked until GM decided it could not resist the urge to interfere.

If the solar industry continues to remain infatuated with product and technology, it is destined for commodization. It will be up to the retailers to add value and make a business of solar. The panel itself will be just an item in a catalog (the solar panel manufacturers are going to be commoditized unless they take branding more seriously).

People trust retailers. They trust Nordstrom, Target, Walmart and Best Buy. They are trusted brands, and it’s easy to buy from them; hey back-up their merchandize with an enjoyable experience and service support.

Is the retail analogy too much of a stretch for solar? Not at all. There is speculation that Walmart is considering selling Chinese-made electric vehicles. At $35,000 each, a vehicle is a comparable investment to a solar panel system.

It’s not about the product. It’s not about installation. It’s about the value delivered around the product – the relationship, which is essentially a marketing/brand approach.

I would like to thank all attendees of my speaking engagement on Building Brand Recognition at the Solar Power Conference in Anaheim earlier this week. We walked away with an array of opinions on what the future of solar energy could look like for solar companies and their core audiences. I look forward to keep the discussion going at this blog

For those who requested copies of my presentation or leave behind, please contact Anant Sanchetee at anant@riechesbaird.com or call at 949.586.1200.

Thank you.

As the solar industry matures, the importance of building a strong brand built on a compelling and differentiating value proposition becomes vital to success. Participants in this session will learn from a brand expert about the value of branding as it relates to the solar industry, what a brand is and why it is more than just PR, and how to brand your company successfully.

More details at: http://s36.a2zinc.net/clients/sepa/sepa2009/public/SpeakerDetails.aspx?FromPage=SpeakerList.aspx&ContactID=2578&IndexInList=18&SortMenu=103005

Political, social and environmental consequences of climate change have become global concerns. Renewable energy sources, such as wind and solar, would seem to have certain future as part of our national energy future. The alternative energy industry is a nascent one; traditional energy companies are some of the most profitable and powerful on earth. It is likely that the two will work side by side in creating America’s energy future. It is also likely that one will become part of the other, just as the Internet, once hailed as the alternative business model to traditional bricks and mortar businesses, found a viable future as an essential new channel for those companies it once threatened to displace.

The challenge for renewable energy companies is how best to position themselves in the energy equation before the technologies become swallowed up in someone else’s brand.

There are elements of the same Internet zeal in certain quarters of the renewable energy industry that doing a disservice to its future. Renewable energy is the only future. The only way. The rejection of nuclear is part of this. Critics of nuclear power argue it is not a renewable energy source. It is not “green” they say because the waste must be stored for hundreds of thousands of years.

No energy source is perfect. No single energy source will solve our problems. Nuclear energy is an essential part of the mix.

Read the reference Reuters article at:

Seize nuclear or miss targets, investment: IAEA
Reuters
Investment in renewable energy and efficiency programmes would allow countries to meet emissions targets without nuclear, they say. (read more of the news article)

For such a small company, Nansolar has done a remarkable job of building its brand since its founding in 2002. Much of the credit has to go to CEO Martin Roscheisen for evangelizing the company and its technology with a lot of noise. Time magazine went so far as nominating Nansolar’s technology one of the top 50 best inventions of 2008.  The question has always been:  is there any substance behind the noise?

Read the related NY Times article at:

“Since its founding in 2002, Nanosolar has raised a lot of money – half a billion dollars to date – and made a lot of noise about upending the solar industry..” (read more) – Sept 9, 2009 – NY Times

As every energy utility executive knows only too well, electric power is only appreciated when it isn’t there.  If the lights go out at home it’s irritating. We make do until power is restored and then we don’t give it another thought, until the bill arrives.

Have you ever thought about what would life be like if we lost electric power completely; not just in your street block, but across the country? Just over six years ago we had a frightening glimpse.

(more…)

HOUSTON–(BUSINESS WIRE)–SUEZ Energy Resources NA, the retail energy business of GDF SUEZ Energy North America, has changed its name to GDF SUEZ Energy Resources NA. The name change reflects the July 2008 merger of its parent company SUEZ with Gaz de France. The name change will not affect company operations, but the retail business will integrate branding and marketing strategies to reflect the new GDF SUEZ brand.

Click here to read more

GE Oil & Gas has decided to streamline parts of its operation, which means the end of the brand names of three Houston-based companies that the petroleum services company acquired over the last several years.

The move affects VetcoGray Inc., Hydril Pressure Control and PII, which will cease to exist as independently named companies. The brands will be shifted to the product names. For example, GE Oil & Gas will now sell a “VetcoGray fullbore subsea wellhead system,” or a “Hydril pressure control blowout preventer.”

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Last years’ political campaign managers marketed their products with the environmental green brand standard in industry, including even the weapons industry. Most high profile, highly funded politicians’ images now resemble that of oil giant British Petroleum, which rebranded itself as BP, Beyond Petroleum, with the bright yellow sun on a green background logo that now identifies every BP gas station all over the world.

Click here for the rest of the article.