Greentech Lead Asia: EnergySage Solar Marketplace, funded by the Department of Energy, provides information and research to simplify shopping of solar products. Vikram Aggarwal, chief executive and founder of EnergySage, says the platform enables the solar industry to lower the cost of acquiring new customers by targeting “soft costs” which can account for up to 25 percent of the overall cost of an installed system.
Excerpts of the online interview:
Public interest in solar is high but the adoption of solar is slower. What do you think hinders many who are interested in solar from actually going solar?
There are three factors keeping interested consumers from adopting solar:
a. Consumer education and understanding of the technology, how it works, cost-benefits and financing options
b. Skepticism about product and installer quality, including performance and durability of solar panels (and inverters) and maintenance requirements
c. Complexity of shopping process. Imagine shopping for airline tickets without a travel agent or online platforms like Expedia or Travelocity. That is how consumers shot for solar. It’s a complex, time consuming and confusing process.
The solar shopping process can be complicated and confusing for consumers. There are a lot of variables and facets of the decision that consumers need to work through—things like understanding the technology and how it works, whether or not it will work in their particular situation, what the underlying economics are, and what would be the best brands or installers.
Then, when you start to factor in things like tax credits, SRECs and a wide range of financing options, people start to get overwhelmed. If they do get to the point where they request quotes, the lack of standardization makes it almost impossible for the average consumer to determine what the best option would be. At so many points throughout the entire shopping process, there are multiple opportunities to become frustrated and just give up. People end up dropping out because they can’t be sure that they are making the right decisions all along the way.
How does EnergySage make going solar easier for the consumer?
EnergySage provides consumers with a free, easy-to-use online platform that simplifies and streamlines the entire solar PV shopping process. There’s robust educational content that helps to answer all of their questions about the technology, economics and other variables I mentioned earlier. To address consumer skepticism, there’s a zip code searchable database of real-life case studies that include pictures, project details, financial details, and performance metrics so they can learn from the experiences of other property owners in their area who have already adopted solar. Our Solar Marketplace is a comparison-shopping platform that automates the entire process and delivers unprecedented levels of transparency. Consumers can easily solicit and receive multiple quotes from a pre-screened network of high-qualitysolar installation providers. The quotes are presented in a clear, apples-to-apples format so that they can be easily compared. For instance, the assumptions used to calculate break-even and return on investment will be the same for each quote—things like the assumed value of SRECS and the predicted increases in utility rates. Also, the site calculates key metrics like cents / kWh and gross cost / watt so that consumers can easily see how the quotes line up against one another. All of this information is integrated with ratings and reviews of the manufacturers and installers. The end result is that consumers are able to make truly informed decisions about costs, payment options and quality.
What benefits does it offer installers and financiers?
EnergySage is working to make the entire sales process more efficient. Our offering targets “soft costs” such as high sales and marketing expenses that limit providers’ profitability and keep prices elevated. The cost of acquiring customers is high—both in terms of time and money. EnergySage is making it easier for consumers to make faster, more confident decisions. And, equally important, we’re connecting them with installers and financiers right at the point in the process when they are most likely to take action.
How will EnergySage help the U.S. solar market grow?
We’re working on removing barriers on both the supply and demand sides of the equation. Through information, automation and transparency, we’re helping consumers get to the finish line, so we’re releasing considerable pent up demand. At the same time, we’re lowering the cost of acquiring new customers by targeting “soft costs” which can account for up to 25 percent of the overall cost of an installed system. The net effect of these efforts will drive prices down, increase providers’ profitability and ultimately, expand the demand for these systems.
How do you ensure that your customers are getting the right solution? Is there any quality assessment done on your solar providers?
EnergySage pre-screens the solar providers before including them on the platform. We verify they are experienced (e.g., number of years in business, number of installations completed), certified (e.g., NABCEP certification), licensed, and insured. We make sure that they are committed to installing solar PV and that its their primary business focus. The site also offers consumer ratings and reviews that help prospective consumers verify quality of solar installers.
Post installation services are important for solar installations. Do you have any plans to help customers in this area?
EnergySage is planning to help solar PV system owners connect to O&M service providers.
Please explain how you help customers get the financing support for solar installations?
EnergySage’s network of providers includes leading solar lease and Power Purchase Agreement (PPA) companies. We are also helping buyers connect to leading banks and other financial institutions offering loans for installing solar PV systems.
How is the general response for solar marketplace? Any plans to expand the service to other segments?
The response to EnergySage Solar Marketplace has been very positive, from property owners – residential and commercial, and from solar installers. Consumer appreciate the ease of soliciting and evaluating quotes from multiple providers for all options including an outright purchase to no-money down leases/PPA to pre-paid lease/PPA options. They appreciate access to guidance and tools throughout the shopping process that enables confident decision-making. Installers appreciate the access to large volumes of high quality leads, the low cost and effort required to prospect with consumer and provides them with quotes and the overall reduction in their marketing and sales costs.
Rajani Baburajan
editor@greentechlead.com