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.

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

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.

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