# Aurora Solar > ### Solar in Germany: Simplifying solar approvals with streamlined SLDs Germany is a solar energy leader, but the German solar market does still have its challenges. A big one? Navigating the grid approval process. With approximately 800 Distribution System Operators (DSOs) across the country, each with its own specific requirements, obtaining approval can feel like navigating a maze — and not the fun kind. One requirement that’s consistent across utilities is the single-line diagram (SLD). This standardized electrical diagram acts as a blueprint for the PV system, clearly illustrating the main components — from panels and inverters to disconnects, breakers, the meter, and the crucial connection point. A well-prepared, accurate SLD is a fundamental piece of the grid approval process. Come see us at InterSolar to learn more. The current process of generating approval-ready SLDs presents its own set of challenges, however. While many solar design software platforms offer SLD capabilities, they often require technical planners to  manually add essential components like breakers or meters, a time-consuming step that requires technical expertise and often additional software or workarounds. This effort can add a lot of time to the technical planning phase and, ultimately, contributes to delays in securing those critical grid connection approvals — impacting project timelines and overall growth. Through our conversations with solar installers throughout Germany, the need for a more streamlined and automated SLD generation process has become abundantly clear. So, with input from customers like you, Aurora is developing a solution to help. It allows solar installers to automatically generate single-line diagrams based on the system that was sold, but also offers greater flexibility so that installers can modify and add components before exporting for grid approvals. You can now modify and add components before exporting. The idea, of course, is to significantly reduce the manual effort involved in creating SLDs, freeing up time for your technical teams and accelerating your grid approval process. Want to see more of how we’re helping to simplify grid approvals in Germany?  Come visit us at Booth C4.409 at InterSolar Europe. We'll give you a sneak peek of how our new SLD generation tool can help your business navigate the solar approval maze. ### Intersolar Europe: Update and sneak peek As we all gear up for Intersolar Europe we thought it was a good time to reflect on the past year in solar, and where we’re going. We’re really excited about the future of solar in Europe and are gearing up for some exciting product enhancements in the coming year. So, please come by Booth C4.409 at the conference to say “hi” to the team and get a sneak peek. This is also a great time to reflect on how installers are driving the market forward. Since we launched in Europe, customers have designed more than 200,000 projects in Aurora — an impressive milestone that highlights the adaptability and strength of European installers. It's been great to partner with and help support our customers like EKD, Enpal, Lichtblick, and projetsolaire to help drive the industry forward With your help and input, Aurora has added many features to help streamline the process — including consumption profiles, expanded LIDAR coverage, and Aurora AI. We’ve also made our software available in more languages, now including German, French, Spanish, and Italian. For the coming year, we’re excited to continue to help installers across Europe make solar easier for all involved by selling and designing projects faster, more efficiently, and more accurately. We’ll be building more new features and further enhancing our products based on your biggest needs. So, stop by and see us at Booth C4.409 to get a look at what’s coming, and stay tuned for another post with more details.  ### Why homeowners are going solar: Right now It's tough to sell solar to someone if you don't know why they're considering it. Finding out a homeowner's motivations for going solar — and addressing those motivations head on — is one of the most important steps to getting them from interested to customer. That's why, for the 2025 Aurora Solar Snapshot, we asked over 1,000 homeowners (1,039 to be exact) what their top 3 motivations were for going solar. Here's what they said: We can see that, still, basically everyone is motivated by utility bill savings. This has been the case since we started our research in 2023. Energy independence has also always ranked high on the list, especially for solar + storage to keep the lights on during outages. Most solar proposals speak to these motivations. But, the next reason was a bit of a surprise. This is the first year that "reducing my environmental impact" has scored over 50%. What's more, 17% of homeowners ranked it as their number one motivation. This is where there's a potential gap in what proposals show. Emissions saved, equivalent trees planted, and other environmental stats can help show a customer the impact solar can have. More than that, coming at the sale with the frame of mind that environmental impact matters to many homeowners can start the interaction on the right foot. There's more insights in the full 2025 Aurora Solar Snapshot (it's free!), including how these motivations break down by political party and even age group, so check it out. Click the image to go to the Snapshot. Next time we'll take a look at what's holding homeowners back. ### Commercial solar bottlenecks? Solve them with data Commercial and industrial (C&I) and utility-scale PV projects often face several hurdles that slow down timelines and reduce return on investment (ROI). But data-driven solutions are transforming the industry by helping streamline processes, improve ROI, and enable faster project completion. Solar companies that adopt these digital tools can overcome bottlenecks like permitting delays and resource constraints, ultimately staying competitive in a rapidly evolving market. But how? Our Unlocking the Power of Data playbook reveals best practices for using data to overcome common utility-scale and C&I issues, walks through the software you need, and more, so you can take the next steps. In this excerpt, we look at how data solutions can help from the very first client meeting. Click above to download the free playbook. “That first meeting with a prospect will no longer be just introducing yourself and asking if you can get up on their roof to do an analysis,” Paul Grana, former GM of HelioScope said. “You’re going to be able to ask very sophisticated questions and come in with specific options to consider. If they are looking for the highest return on investment, you can show what their bill pre- and post-solar and energy storage is going to look like. If they want to maximize emissions reductions, you can present options that are based on real technology solutions.” Of course, the power of data to communicate the value commercial customers can receive becomes even more compelling when prospects provide actual consumption data and bills to a developer. And data can also help developers serve existing customers when utility rates change. This can be especially compelling to help commercial customers navigate demand charges, which frequently constitute most of their utility bill. “After a utility rate change happens, you can use the data you have about your customer to run an analysis that shows what their new bill is going to be,” Grana said. “Based on that analysis, I should come back out and install a battery because it’s going to have a three-year payback because of these new rates. You can come in with a very targeted sales pitch to existing customers that will help you sell more hardware but also keep your customers happy.” The complexity of commercial and utility-scale solar projects is an indication of progress. Because solar economics are so compelling, it is a viable option virtually everywhere. Its versatility makes combinations with other technologies, particularly energy storage, both possible and valuable to customers. The challenge for developers and other stakeholders is to translate solar’s vast financial and environmental benefits into reality. Data is a tool to do that. Want to see how it works? Download the playbook here. Click above to download the free playbook. Ready to try it out? Start your free HelioScope trial. Have questions? Schedule a quick, no-pressure demo. ### The rise of third-party ownership (TPO) in solar: Trends, benefits, and industry shifts The solar industry is no stranger to change, and one of the biggest agents of that change recently has been high interest rates. With the days of zero-interest loans a thing of the past (for now), homeowners and solar companies have sought out ways to make a solar install more affordable. Enter third-party ownership (TPO). According to reports, TPO volumes increased by 32% in 2023. This trend continued through Q3 of 2024 with TPO market share growing to 43% nationally. When looking at key state markets (AZ, CA, CT, FL, IL, MA, NJ, NV, NY, PA, PR, TX), TPO share was 56%. This financing model is proving to be a game-changer — especially for homeowners who want the benefits of solar without the upfront costs. TPO has (re-)entered the chat. Why is TPO growing? As we touched on above, several factors are fueling the rise of TPO in the solar industry:✅ High interest rates are making cash and loan financing less attractive, leading more homeowners to explore TPO options like leases and Power Purchase Agreements (PPAs).✅ The Inflation Reduction Act (IRA) introduced 10% tax credit adders for qualifying TPO projects, making these options even more financially viable.✅ Increased accessibility — TPO is helping lower-income households go solar. In 2023, 33% of solar adopters with an annual income below $50,000 used TPO, compared to only 18% of high-income households ($200,000+). Many industry experts expect a market recovery in 2025, and some attribute it to the growth in the TPO segment. “We do expect a market recovery in 2025,” explained Zoë Gaston, Principal Analyst, US Distributed Solar “with 14% growth primarily driven by the momentum in the third-party ownership (TPO) segment and investment tax credit adder (ITC) qualification.” Want to learn more? Check out our Winning with TPO webinar to get all your questions answered. Click the image to register for our TPO webinar! The road ahead While TPO is growing, it can come with challenges. High interest rates are a double-edged sword, pushing homeowners toward TPO but also affecting demand for non-TPO financing models.  According to Ohm Analytics, “TPO’s market share is expected to continue to increase slightly into 2025 and into the mid-to-high 40% range as some providers expand to additional markets.” This shows that demand for flexible solar financing is continuing its upward trajectory.To capitalize on this trend, solar companies have to look at solutions that streamline the TPO process — for them and their customers — helping them reduce change orders, accelerate approvals, and ensure compliance with financier requirements. The potential impact It's easy to talk about how TPO can help make solar more attractive to homeowners, and help installers sell more, but how does it work in practice? Our World Energy (OWE) has successfully scaled TPO adoption to 85% of its projects, but they did have some key challenges. OWE faced: Frequent change orders — impacting 40% of projects, delaying approvals, and increasing costs Site survey inefficiencies — extending survey times to 90 minutes and causing repeat visits Fragmented workflows — requiring multiple tools and manual rework After significant research, OWE adopted Aurora’s TPO-integrated design and proposal platform, which helped them achieve: 75% fewer change orders 50% faster site surveys (from 90 minutes to 30-45 minutes) 72 hours saved per project Seamless integration with TPO providers for faster approvals Want to get the details? Check out the full case study here. What this means for solar companies The future of TPO is bright, and solar businesses that embrace automation and AI-driven solutions will be best positioned to scale efficiently. By reducing inefficiencies in the TPO project lifecycle, companies can close deals faster, increase homeowner trust, and maximize growth opportunities. Want to learn more? Schedule a quick demo to get your specific questions answered Read more about Our World Energy's story for actionable tips Want to try it yourself? Check out our pricing page to see what works for you ### Community solar 101 — the basics Table of contents How do community solar farms work? How to start a community solar project? Community solar site selection Project launch and financing How does community solar make money? Community solar incentives   Generating ROI  Community solar benefits and challenges Next steps  FAQs Despite an up-and-down last couple years, the outlook for solar is still strong. The statistics are mind boggling — pick your stat of choice — and anecdotally, just look around. If you’re looking for them, panels seem to pop up everywhere. But, even with strong adoption, there will, unfortunately, always be households and businesses that are left out of the rooftop solar market. The estimates vary on the margins, but come in around 50% of households and businesses not being a great fit for rooftop solar. The reasons are largely what you’d expect: They don’t own the building (renters) They don’t have enough access to roof space (multi-unit houses, office buildings) The roof isn’t big enough, or doesn’t get enough sunlight But, that doesn’t mean that solar is out of reach for those 50%. If you’ve listened to the radio, a podcast, or streaming service at all recently, you’ve likely heard an ad for community solar.  And it’s more than just a media blitz, it’s a growing way for people who don’t have residential or business access to solar to get involved — and save some money. In fact, as of the third quarter of 2022, more than 5.3 GIGAwatts of community solar had been installed in the United States. All-in-all, 41 states, plus Washington DC, had at least one community solar project online, and 19 states (plus DC) had policies to support it. How do you get involved? In this blog series, we’ll look at community solar in-depth, starting with the basics: How does a community solar farm work, how can you get involved, and how do they make money? How do community solar farms work? NREL defines community solar as: A distributed solar energy deployment model that allows customers to buy or lease part of a larger, off-site shared solar photovoltaic (PV) system. Developed all over the world, community solar farms are also referred to as shared solar gardens, solar power plants, and many other unofficial titles.   Although some battery-backed off-grid systems exist, most shared solar installations feed the electricity they produce into the local power grid, either as it exists or after it’s improved to accommodate the new energy capacity.  Community solar farms are an essential way to provide access to renewable energy for electricity users with circumstances that prevent a feasible PV installation on their property — as mentioned above, this can include renters and people with roofs that aren’t great for panels. Get our free e-book to see how having the right data can help your C&I and utility-scale projects succeed. How do I start a community solar project? While individual efforts are always commendable, community solar project development can only be accelerated with increased local support. Before starting a new community solar garden of your own, you may want to consider researching and supporting a green energy project nearby that is already operating or in development. But, if you want to be involved in the development of a community solar farm, some of the most crucial and time-intensive steps influencing the long-term success of a solar farm are found in the planning stages. Before getting into the nitty-gritty details, there is one main question that needs to be addressed: Who will be using the electricity produced by the panels? Depending on how you answer this question, a shared solar garden will fall into one of three categories. On-site community solar farms: In an on-site solar farm, buildings within a private, designated community share all of the power generated from panels nearby. Often seen in newly developed subdivisions, the energy produced by an on-site solar farm is typically owned by a condominium building or apartment complex and then sold to its residents.  Free-market community solar farms: Next, free-market community solar farms can generate both green energy and revenue for their developers by selling solar indirectly to consumers. Serving grid-tied homes and buildings, community solar farms can sell or virtually lease portions of their off-site energy production to electricity users in outright sales and purchase power agreements (PPAs). On the free market, solar gardens can also operate on a non-profit model.  Utility direct suppliers: And lastly, some of the world's largest solar farms are either owned by or exclusively produce power for utility companies. With installations frequently exceeding 1 MW, utility-scale solar farms allow electric companies to sell renewable power to customers from a fortified green energy portfolio.  Community solar project site selection There are many factors that solar farm developers must consider when choosing the best project site. A community solar garden must be in a location that receives ample sunlight and is largely free of trees, buildings, and other obstructions that create shade or make it difficult to install a ground-mounted system.  Legally, proposed solar farm locations must adhere to local size, offset, and zoning requirements, as well as any regulations revolving around environmental or historic sites. Solar farm projects are typically permitted for construction on most industrial and agricultural lands, but special use exemptions may be required in some areas.  Community solar farms tend to be much more feasible the closer they are to end consumers. Although the middle of the desert is a great place to produce power, shared solar projects require nearby infrastructure with the ability to interconnect and distribute the electricity.  When gaining local approval, most solar farm proposals also require a decommissioning plan for the end of the project's life.  Project launch and financing After choosing a site and conducting a thorough feasibility analysis, it's time to begin acquiring the assets you need to generate and sell community solar power at scale. By and large, site and project development costs account for the majority of a solar farm’s total lifetime expenses.  Beyond the price of the property and land improvement costs, new community solar projects will require funding for system design, parts (panels, mounting, wiring, etc.), permitting, construction, and interconnection fees, all before a single kWh of energy is produced.   So while many hope that “if you build it, they will come,” self-financing a renewable power plant can be very difficult without external support. To generate capital before construction, some community solar developers work with private investors to cover project costs, while others reach out to prospective customers directly with early-stage opportunities to purchase clean electricity at a great rate. A community solar farm doesn't have to be on an actual farm... This brings us to the question we’ve all been waiting for… How does community solar make money? While traditional farms make money by producing and selling products to people and businesses, the cash flows of a “solar farm” and an orchard are essentially the same. Substituting rows of crops for arrays of panels, solar farms make money by selling enough of their product (electricity) to recoup and exceed both startup costs and ongoing expenses. Community Solar Incentives Except for the actual sunlight, nothing is free when starting a solar farm.   Thankfully, the Federal Solar Investment Tax Credit (ITC) was granted a long-term extension and additional incentives with the passage of the Inflation Reduction Act. Solar installations and battery storage get a 30 percent tax credit until step down begins in 2033. (Be sure to check the specifics and whether your project qualifies.) However, tax credits belong solely to the owner of the property where the PV system is installed, an important consideration when crunching the numbers for community solar projects. There are other incentives for getting community solar off the ground, too, including many national, state, and local incentive programs. Beyond the ITC, developers can find additional grants at the federal level as well as a variety of state solar incentives across the country. Here, it is important to remember that community solar projects that “sell” portions of their property to consumers must make sure that all incentives are allocated correctly.   Also in place to accelerate shared solar development, the Solar Energy Technologies Office of the US Department of Energy recently announced its National Community Solar Partnership (NCSP). Intending to help five million new households access shared solar power by 2025, the NCSP provides personalized consulting and technical hands-on assistance for community solar developers.    Generating ROI To generate a positive return on investment, community solar farm project developers must make accurate estimates of project costs and solar power production. By knowing exactly how much energy is going to be produced onsite, solar farm owners can then weigh total expenses against a business model aimed at long-term profitability. Whether allowing customers to “buy and own” pieces of the farm or signing fixed energy lease agreements, developers can forecast customer cash flows against start-up costs to determine the number of subscribers or quantity of electricity sold necessary to break even with initial expenses.  And while operational upkeep is typically minimal for small-scale solar energy installations, mid-sized and large solar farms must be prepared for occasional part failures, fixes, and replacements. When calculating long-term ROI, community solar farm developers will also need to factor in operation and maintenance costs, property tax, sales and use tax, excise tax, and other ongoing expenses. The renewable energy future, as pictured in a 16-bit gaming system. Community solar benefits and challenges Community solar makes solar possible for many situations where it was previously a non-starter. It also has drawbacks, of course. Here are some of the common benefits and challenges of community solar. Benefits Solar power for everyone: Community solar allows communities to access solar power, albeit in a distributed way, where it otherwise may not have been a great fit.  Defrayed costs: Community solar distributes the upfront cost of installing solar among multiple households and stakeholders. Community solar means a community effort. The costs for installing and maintaining a community solar garden are absorbed either through co-owning neighbors, purchase power agreements (PPAs), virtual leases, or utility bills from an energy company. Community solar is flexible: Unlike owning your own PV system, most community solar customers have the option of backing out of purchasing solar power with little to no penalties and fees. Many community solar customers have the option of purchasing from either the solar project, the grid, or a combination of both, providing unparalleled flexibility.  Challenges Community solar projects take up space: Community solar is usually implemented when rooftops don’t pass muster for solar. At best, community solar farms can be installed on unusable land, such as landfills or brownfield sites, or serve a dual-use function such as agriculture or gardening. At worst, community solar may require previously undisturbed or valuable land to be cleared, resulting in potential environmental and economic losses. Community solar customers can’t access incentives: The majority of community solar models are rental- or subscription-based, meaning the solar customer doesn't actually own the panels. Most incentives, most notably being the ITC, are only available to the owner of the piece of land where the solar farm is installed, meaning that customers can’t access incentives or rebates directly. However, co-ownership models might allow shareholding customers access to some rebates and incentives.  Community solar projects might not be available everywhere: In some states, installing a community solar farm and selling remote electricity to customers may be a challenge. And even if a state is friendly toward community solar, the fact remains that not every community has the space needed for a large solar installation.  Next steps Solar farms provide a valuable and necessary service: providing access to renewable energy to a variety of electricity users. Today, most successful solar farms are a result of careful planning in which developers choose a feasible location, accurately forecast energy production, and follow a sustainable business model.  In our next installment, Community Solar 101 — How It Works, we look at some more specifics around community solar, including specific ownership models and potential complexities. In the meantime, for even more information on community solar farm basics, we recommend the NREL’s detailed look at the subject, as well as this resource from the US Department of Energy. Want to learn more? Get our free Commercial Solar Bundle to get more information. FAQs What is a solar farm? A solar farm is a distributed solar energy model that allows customers to buy or lease part of a larger, off-site shared PV system. Community solar farms are also referred to as shared solar gardens, solar power plants, and many other unofficial titles, and models may include rentals, power purchase agreements (PPAs), or co-ownership.   Are solar farms profitable? Yes. A traditional solar farm has a 10 to 20 percent return on investment, and typically pays itself off within 10 years, meaning 30 years or more of pure profit earning potential after the solar farm cost is paid off.  What are the different community solar business models? Utility: Customers purchase electricity from a utility or other third party owning the installation. In most cases, community members own a share of the installation, and receive a credit on their bills corresponding to their share size.  On-site: Buildings within a private, designated community share all of the power generated from panels nearby. Often seen in newly developed subdivisions, the energy produced by an on-site solar farm is typically owned by a condominium building or apartment complex and then sold to its residents.  Free-market community solar farms: Free-market community solar farms sell solar indirectly to consumers. Serving grid-tied homes and buildings, community solar farms can sell or virtually lease portions of their off-site energy production to electricity users in outright sales and purchase power agreements (PPAs). On the free market, solar gardens can also operate on a non-profit model.  Want to learn more? Schedule a personalized, no-pressure demo to get all your specific questions answered. Featured image by Andres Siimon. ### The future (and present) is still solar: Forecast for a brighter 2025 There's no getting around it, 2024 was a challenging year for the solar industry and many installers. Anecdotal evidence shows that mentions of the phrase "solar coaster" in industry Slack messages rose by a factor of 100. But, it's important to remember that while the solar coaster is real, and we all feel it, its long-term direction is up and to the right — and that's because of the dedicated and passionate people in the field. When we were reading SEIA's Solar Market Insights Report for the fourth quarter of 2024, this fact jumped off the page in one chart. Notice any trends? New generating capacity is the amount of additional power generation capability that has been installed and made operational within a specific period. It represents the expansion of the energy grid's ability to produce electricity, often through the addition of new power plants or renewable energy systems like solar, wind, or storage solutions. And solar made up 64% of new generating capacity. When you add storage to the mix? It jumps to 84%. To quote SEIA President and CEO, Abigail Hopper, "Solar alone ... is about 15x more than natural gas and more than every other energy source COMBINED." There's no doubt that residential solar has been hit particularly hard thanks to high interest rates, installer and financier bankruptcies, and other factors. But there is light at the end of the tunnel, according to SEIA. Click the chart to go to the full report. "There is positive momentum and cautious optimism for the residential solar market heading into 2025," the report says. "While slower sales earlier in the year led to fewer installations in 2024, some installers report that sales volumes have increased in the second half, which will drive recovery in 2025 as these projects are installed." So, we're not out of the woods, yet. And, as installers continue to find creative ways to make solar an attractive investment — third-party ownership options, advanced advanced battery storage capabilities, and more — the basic facts remain... "Solar is simply the most cost-effective energy source on the market. It’s quick to deploy and it delivers reliable energy." — Abigail Hopper, President and CEO, SEIA Please read the entire report for the interactive versions of these charts and much, much more. We'll be keeping them prominently placed in our office as a daily reminder. ### What are virtual power plants (VPP) & why do they matter for solar? To get the year started off right, we’re highlighting some of the solar-related concepts that we think are particularly important to understand in 2025. We know that to reach our solar and renewable energy goals, new technologies are going to be particularly important, and virtual power plants (VPPs) are right up there with some of the most exciting developments. But, what is a virtual power plant, exactly? Glad you asked. This updated post gets into the details, and features a :fire-emoji: speech from CALSSA's Bernadette Del Chiaro. In the quest to switch to more renewable energy sources, we continue to develop creative solutions designed to meet the planet’s increasingly complex energy needs. One of the most interesting developments is the rise of virtual power plants (VPPs). Virtual power plants are platforms that harness the power of distributed energy resources (DERs), such as solar panels, home batteries, electric vehicle charging stations, and wind turbines, to create a network that can supply electricity as reliably as traditional power plants can. Recent approval of a statewide VPP program by the California Energy Commission underscores the growing importance of these systems. This initiative will serve as a pilot test for VPP implementation — especially as the state continues to deal with extreme temperatures and increasing grid failures. In this post, we'll look at what exactly VPPs are, why they're important, and why they matter for solar installers. Understanding virtual power plants A virtual power plant (VPP) is a cloud-based distributed power plant that brings together a variety of energy resources. It resembles a symphony of diverse instruments, each playing its part, but all under the guidance of a single conductor. In the case of a VPP: The "instruments" are distributed energy resources like solar photovoltaic (PV) panels, battery storage systems, and even flexible power consumers. The "conductor" is advanced software that harmonizes these resources, creating a single, larger power plant that can supply energy to the grid. The beauty of a VPP lies in its decentralized nature.  Each component, whether it's a PV panel on a homeowner's roof or a battery storage system in a commercial building, operates independently. Yet, they interconnect and coordinate through the VPP's software. This setup enhances energy efficiency and reliability, as power is dispatched where it is needed most, reducing strain on the grid. VPPs are more than just a collection of energy resources. They demonstrate the power of technology and innovation in the renewable energy sector. By harnessing the collective power of individual energy resources, VPP power paves the way for a more sustainable and resilient energy future. The significance of virtual power plants (VPPs) Virtual power plants play a crucial role in modern energy management, offering tangible benefits to power producers, consumers, and the environment alike: For power producers, VPP power offers a more efficient way to manage their resources. By aggregating distributed energy assets, VPPs can balance supply and demand in real-time, reducing the need for costly and polluting peaker plants. Consumers also benefit. VPPs can help prevent blackouts by managing peak demand. In times of high demand, VPPs dispatch stored energy to the grid, preventing overloads and maintaining grid stability. Virtual power plants can also lower energy costs by allowing consumers to sell excess energy back to the grid. From an environmental perspective, VPPs can help smoothly integrate intermittent renewable energy resources like solar and wind. This reduces our reliance on fossil fuel. In essence, VPPs represent a significant step towards a more efficient, reliable, and sustainable energy future. The integral role of battery storage in VPPs In a virtual power plant, batteries store excess electricity generated by the various distributed energy resources. This stored energy is dispatched when needed, enhancing the reliability and efficiency of the VPP. For a real-world example, consider the situation in California. There are roughly 100,000 residential and commercial solar-charged batteries installed across the state. Combined, these batteries have the capacity to store and dispatch approximately 1 GW of power.  As Bernadette Del Chiaro, the Executive Director of CALSSA, said during her Empower keynote (emphasis is ours): “[California is] able to boast being home to the largest battery in the world. Many people think when you say that, that I'm referring to the Vistra Energy battery storage project over in Moss Landing.  “And while that is an amazing facility — they just got a little bit bigger and we applaud this work on that — the biggest battery in the world is actually in people's garages, all throughout the state. There are over a hundred thousand distributed batteries now interconnected to the grid with a total capacity of over a gigawatt.” Looking to attach more storage to your solar sales? Click the image to download the free storage sales cheat sheet. This vast network of batteries, functioning as a virtual power plant, offers an unprecedented level of flexibility. Unlike a traditional power plant, this system can respond instantly to fluctuating energy demands, showcasing the potential that VPPs and battery storage have to revolutionize our energy infrastructure. For PV systems, battery storage is equally crucial. Solar panels generate electricity during the day when the sun shines. However, energy demand often peaks in the evening when solar generation stops. Batteries solve this problem by storing excess solar power produced during the day for use during these peak times.  This ability to store and dispatch energy on demand provides several benefits. For one, it increases energy independence by reducing reliance on the grid. This can lead to significant cost savings, as utility customers avoid buying electricity from the grid during peak times when prices are highest. Moreover, battery storage can provide a backup power supply during grid outages, further enhancing energy security. For installers and homeowners: Accelerating battery storage adoption None of the above works, however, without widespread battery adoption. Fortunately, storage prices continue to fall — precisely as reliability, durability, and capacity all continue to increase. Even still, battery storage has yet to become mainstream. “We're just getting started,” Del Chiaro explained. “The [California] Energy Commission calculated that to get to a hundred percent clean energy we need to increase the build rate of storage eightfold — not the 250 megawatts we’re building today, but 2 gigawatts every year. And we need these goals near-term, not 2035 or 2045.” Click the image to watch Bernadette Del Chiaro's full keynote on demand. One of the key factors influencing battery storage adoption is consumer buy-in. Incentives, such as tax credits and rebates, can play a significant role in encouraging more homeowners and businesses to invest in battery storage systems. What’s more, most VPP programs come with compensation for enrollment, as well. Solar installers also play a pivotal role in promoting battery storage. They are often the first point of contact for consumers and can provide valuable information and guidance. Advanced solar design tools can significantly aid installers in this process.  For example, with California NEM 3, battery self-consumption can provide additional ROI for consumers. Installers need to be able to show homeowners how this works, including the specific benefits, and dead-on accurate quotes. Click the image to learn more about how to sell battery storage with Aurora. In closing… The success of virtual power plants hinges on the widespread adoption of battery storage technology. This is not a simple task, but a multifaceted challenge that requires a concerted effort. From educating consumers about the benefits of battery storage, to providing incentives that make it an attractive investment, to deploying advanced software tools that simplify the process — every step is crucial. As we continue to make strides in these areas, we are witnessing a significant uptick in battery storage adoption. This is not merely a trend — it represents a transformative shift in our approach to renewable energy management. This shift paves the way for a future where our energy supply is not only reliable but also clean and sustainable. Featured image by Fabio Bracht. ### Solar problems solved: tough roofs, bad weather, remote projects Solar installers face an almost uncountable number of challenges. Beyond external factors that have given the solar market its well worn "solar coaster" moniker, there's just the day-to-day stuff of a typical project. Let's take 30 seconds and write down the challenges that come to mind. Ready... go! Complex roofs: Steep-pitches, and tall or large homes Old or dangerous roofs: Make for hazardous on-site inspections Weather-related challenges: Rain, snow, and wind make assessments challenging, or downright dangerous — and can delay projects significantly Remote locations: Long travel times to far off locations (and add traffic delays in more urban areas) Annoying backlogs: The above factors lead to survey delays and repeat visits Multi-person surveys: Surveys often require more than one person, compounding the wasted time and money And... time! As you probably noticed, in the time allowed, we only got through some site assessment and project design challenges. But, even those are significant. And anything you can do to save time, save money, and save complexity on these tasks can have a real effect on your bottom line. Nobody wants to get up on a roof like this any more than is absolutely necessary. That's where EagleView Powered Models (EVPM) come in. By helping you tackle challenges such as complex roof structures, adverse weather conditions, and remote project locations, EVPMs provide a versatile and reliable solution that can make your company more efficient and reduce costs across your project lifecycle.  From verifying roof dimensions for installation, to minimizing change orders and avoiding repeat site visits, EVPMs streamline operations and accelerate project timelines.  But don't take our word for it. Let's take a look at how real-life solar installers are using EVPM to improve their business. Stories from the field New York State Solar Overview: Operating in New York City, Long Island, and New Jersey, NYSS manages a high volume of complex projects, with 20-25% involving multi-story buildings. Challenges: Time-consuming manual surveys, frequent weather delays, and costly repeat visits hindered efficiency How EVPM helps: Reduced survey time by over 40 minutes per project Eliminated repeat visits for 20% of projects, saving $150-300 per project Integrated seamlessly with pre- and post-sales workflows to streamline operations Impact: Enabled NYSS to confidently handle complex projects, maintain customer satisfaction, and scale operations efficiently Click above to read more about how NYSS cut their site survey time by more than 60%. Revolusun Overview: Revolusun Mountain States operates across the state of Idaho and Eastern Washington. With offices in Boise and Coeur D’Alene, this means projects are on average located over 1.5 hours away from their warehouses, creating unique logistical challenges for their team. Challenge: Long travel times (up to 5 hours for some projects) and cancellations due to logistical delays How EVPM helps: Allowed pre-sale evaluations without in-person visits Improved homeowner trust with accurate remote measurements early in the sales process Reduced site-surveying team to one person instead of two when site visits are necessary Impact: Reduced travel costs, minimized cancellations, and improved overall pipeline efficiency Solar Mite Solutions Overview: Operating in a region where unpredictable weather can pose challenges, Solar Mite Solutions is a dedicated solar installation company that often faced significant project delays when roofs became inaccessible due to adverse conditions. Challenge: Frequent weather disruptions delayed site surveys and project timelines How EVPM helps: Remote measurements during bad weather help keep workflows flowing Reduced delays and avoided rescheduling or repeating site surveys Impact: Maintained project schedules, reduced inefficiencies, and improved customer satisfaction Meeting unique challenges with EVPM OK, now that we've seen how EVPMs have helped a variety of solar installers, let's look back at our list of challenges from the beginning. But, this time, let's look at how you can solve them with a little help from EagleView Powered Models: Complex roofs: Steep-pitched, tall, or large homes become manageable with EVPM’s precise remote assessments. Old or dangerous roofs: Surveyors stay safe by avoiding hazardous on-site inspections. Weather-related challenges: Rain, snow, and wind no longer halt progress, as EVPM enables accurate designs in any condition. Remote locations: EVPM eliminates the need for excessive travel, reducing costs and time investment. Annoying backlogs: EVPMs prevent survey delays and repeat visits, streamlining project timelines. Multi-person surveys: Allocate resources more efficiently by requiring fewer people per project. Efficiency and growth Now that you've met these challenges, you can look towards other goals, like streamlining your workflows, reducing your costs, and growing your business. Whether in dense urban areas or remote rural regions, EVPM can help you: Increase capacity: Expand site survey operations without overburdening resources Reduce costs: Minimize travel expenses and avoid costly repeat visits Enhance trust: Deliver accurate remote evaluations to homeowners, boosting confidence in pre-sale designs Adapt with the market: Meet the unique demands of diverse markets and project scenarios So, yeah, there's no end to the challenges when it comes to running a solar business. But, with EVPM, you can solve those pesky ones so that you can focus on the fun ones and ultimately install more solar. Want to learn more about how EVPM can help your business? Get our free e-book, Enhancing Accuracy with EVPM in Aurora. More questions? Reach out for a quick chat with one of our experts. ### C&I, commercial, and utility-scale solar: A quick guide To get the year started off right, we're highlighting some of the solar-related concepts that we think are particularly important to understand in 2025. We know that to reach our solar and renewable energy goals, utility-scale, commercial, and C&I projects will be key. But what do each of these categories mean, and how are they different? This updated post gets into the details of what's involved in these larger-scale projects. Navigating the landscape of large-scale solar energy can feel like deciphering a maze of acronyms and categories, each with its own set of rules, benefits, and challenges. Among the most common of those categories are commercial & industrial (C&I), commercial, and utility-scale solar projects. Each serves a unique role in the broader mission to harness the sun's power.  In this blog, we'll start to demystify these segments, exploring the key differences that set them apart. Whether you're an industry professional or a renewable energy enthusiast, understanding these distinctions is crucial in appreciating the versatility and potential of solar to meet diverse energy needs. Get our free e-book to see how having the right data can help you stay ahead of the competition. Commercial solar Commercial solar typically refers to solar power installations on commercial properties, such as businesses, schools, and government buildings. These projects are generally smaller than utility-scale projects but larger than residential setups. Commercial solar systems are designed to meet the energy needs of the specific commercial entity where they are installed.  According to SEIA, commercial solar installations could top 3,000 MW by 2029 — representing 8% average annual growth through 2029. Commercial solar projects can vary widely in scope and application, encompassing a range of installations on properties and facilities used for business purposes. They can range from small rooftop systems on local businesses to larger solar arrays on commercial campuses or corporate headquarters. Here are some examples: Retail Stores and Shopping Centers Office Buildings Schools and Universities Hospitals and Healthcare Facilities Government Buildings Hotels and Resorts Agricultural Operations Separate from C&I solar projects, purely commercial solar applications include powering irrigation systems, processing equipment, and other high-demand operations at farms and wineries. C&I solar  C&I (commercial & industrial) solar projects include a broad range of applications, including those that might not traditionally be categorized under commercial solar due to their industrial nature or scale. While C&I includes all the types of projects classified under commercial solar, it also extends to industrial applications, such as manufacturing plants, warehouses, and large-scale business operations.  Industrial solar projects often have larger energy demands and may incorporate more extensive solar systems or combine solar with other energy solutions to meet their substantial power requirements. Here are some examples of C&I solar projects that extend beyond the typical scope of commercial solar: Manufacturing Plants Warehouses and Distribution Centers Data Centers Agricultural Facilities Outside of commercial uses, industrial solar applies to expansive agricultural settings like dairies and processing plants, where it fuels processing, refrigeration, and other energy-intensive activities. Mining Operations To provide energy for mining sites, reducing the reliance on diesel generators and lowering operational costs. Oil and Gas Facilities Such as powering remote monitoring stations or providing energy for drilling sites. Transportation Hubs Railway stations, airports, port facilities, etc.   C&I can be applied in various industrial contexts beyond the traditional commercial environments, addressing the unique energy needs of different industries. Utility-scale solar Utility-scale solar projects are distinct from commercial or C&I solar projects due to their sheer size and purpose. While commercial and C&I solar projects are directly tied to meeting the energy needs of businesses and industrial operations, utility-scale solar projects contribute to the broader electric grid, supplying power to a wide array of consumers.  Utility-scale solar farms typically require acres of land or large open spaces for installation and can generate tens to hundreds of megawatts (MW) of electricity. Unlike commercial and C&I solar, which serve the direct energy needs of specific businesses or industrial operations, utility-scale solar acts as a power plant within the electric utility grid, distributing electricity across a wide area to a variety of end users. According to SEIA, utility-scale solar demand will be strong through the 2020s, with an average annual buildout of 31 GW over their five-year projections. However, a shortage of qualified labor, constraints on the supply of high-voltage equipment, and interconnection delays threaten to hamper utility-scale growth. Here are some examples of utility-scale solar projects that are uniquely characterized by their scale and objectives, setting them apart from commercial or C&I installations: Solar Farms Solar Power Plants Floating Solar Projects Concentrated Solar Power (CSP) Plants Community Solar Gardens While smaller than most utility-scale solar projects, community solar allows multiple participants to benefit from a single, large solar array, offering a utility-scale approach to shared solar energy. The solar energy landscape is diverse, with commercial, C&I, and utility-scale solar projects each playing distinct roles in the transition to renewable energy. While commercial and C&I projects focus on fulfilling the specific energy demands of businesses and industrial operations, utility-scale projects bolster the overall power supply to the grid, serving a broader consumer base.  The solar energy sector categorizes projects based on their size, application, and the customers they serve. Understanding the distinctions between commercial solar, C&I solar, and utility-scale solar is crucial for grasping the scope and target of each type of solar project. Recognizing these differences not only helps in understanding the solar sector's complexity but also underscores the importance of each category in achieving a sustainable energy future. As we continue to harness the sun's power, the tailored approaches of solar projects will remain pivotal in meeting the world's evolving energy needs. Interested in how technology can help you beat the competition? Learn more about the tools available and what they can do. Want to try it for yourself? Get a free trial of HelioScope. ### What are time-of-use rates? Your guide to TOU To get the year started off right, we're highlighting some of the solar-related concepts that we think are particularly important to understand in 2025. First up: time-of-use rates. See how they work, how they affect consumers, and how solar + storage can help. We updated this post from early 2024 to reflect the latest information. What do the prices of movie tickets to Hollywood’s latest blockbuster and the cost of electricity have in common? Utility companies all over the U.S. are making big changes when it comes to their billing methods for residential customers. Similar to a blockbuster movie, where ticket prices change based on the time of day — matinees tend to be cheaper than primetime showings — many utility companies are moving towards billing customers based on the time of day energy is used.  Want to learn more about how the right TPO options can increase your sales? Click the image to get the free TPO Cheat Sheet.   Companies are also starting to charge different rates for different types of consumers. Just like in movies where students and seniors can pay less for their tickets than others do, we see a similar phenomenon in utility companies across the country: For a given time period, consumers who use less than a baseline amount of energy can often pay less than those who use more than the baseline amount.  The illustration below shows how California’s Pacific Gas and Electric (PG&E) utility varies the cost of energy based on time of day and cumulative consumption. A sample PG&E time of use rates. Source: www.pge.com. Time-of-use (TOU) rates glossary There are quite a few terms that are critical to understanding time-of-use (TOU) rates. What are peak hours? Electricity costs more during certain designated “peak hours” for customers on a time of use rate plan. These hours are typically selected to coincide with the times when the demand for electricity is greatest (often in the afternoon/evenings and the summertime). For example, we can see in PG&E's rate chart above, peak TOU rates are in yellow and generally from 4pm - 9pm. One reason for peak pricing is because utilities must have additional energy generation resources available to meet the needs of the grid during times when energy demand is highest. By pricing electricity higher during times that typically have the highest demand, TOU rates are intended to encourage customers to shift their energy usage to other periods. (It's worth noting that TOU rates increase utility company revenue by making electricity most expensive when people are consuming the most.)  What are off-peak hours?  As you might have guessed, off-peak hours are the hours when electricity is less expensive. Customers who can shift some of their energy-using activities — like running the washing machine or charging an electric vehicle — to these off-peak hours can save on energy costs compared to peak hours.  What is time of use metering? Time of use metering is the measurement that companies use to determine the amount of energy a customer uses, and the time of day they use it. You'll likely notice that most houses and buildings have an electricity meter that measures that energy like a dial on a clock. That information is then used in the billing process.  How common are TOU rates? Where are they used? California was among the first states to make time of use rate structures mandatory for customers. Back in 2019 and 2020, most residential customers were transitioned to TOU plans. All commercial, industrial, and agricultural customers are also required to be on one.  California is far from alone, however.  In early 2019, Ahmad Faruqui, Principal at the Brattle Group, told Utility Dive that “About half of U.S. investor-owned utilities have optional time varying rates for residential customers,” and that new programs are being tested or talked about in at least ten states.  Five years later, time of use rates — and similar billing programs — are much more common. To see what the utilities in your state offer, check out energy.gov's listing of electricity pricing programs for each state. How understanding TOU rates can help you get a solar sale There's no doubt that time-of-use rates can increase a homeowner's electric bill. So, while a homeowner's system is generating the most energy, electricity rates are the lowest. But during the evening, when the homeowner's solar system isn't generating as much energy, electricity rates are the highest. Hmmmm. If only there was some way to store excess electricity generated during the day and use it, say, between 4pm and 9pm when electricity rates are the highest. Click the image to get the free TPO Cheat Sheet. Solving for TOU rates: Battery storage and energy arbitrage This is exactly what Aurora's Energy Arbitrage solves. With energy arbitrage, installers can model PV systems with batteries that take advantage of time-of-use rates, rather than accepting that they'll hurt the homeowner's bottom line.  For example, if a customer would receive 4 cents per kWh of electricity sold to the grid in the middle of the day, but instead they could store it in a battery until the peak TOU window and offset consumption that would have cost 60 cents per kWh later in the day, they save 56 cents per kWh. In the example below, our energy arbitrage modeling demonstrates how customers can store their energy for when it gives them the best savings: During the day, when export rates are low, the home is powered by solar (in yellow) and excess energy is used to charge the battery (in light blue). During the 5pm hour, consumption is met by solar the grid (dark red), even though the battery is completely charged to 100%. That’s because the electricity rate in this market is cheaper at 5pm than at 6pm. Then, between the hours of 6pm and 9pm — when rates are the highest — the homeowner’s consumption is fulfilled by the battery, so they can avoid paying for energy when it's most expensive. The bottom line? Energy arbitrage helps maximize ROI by making sure that the homeowner is replacing grid consumption at the highest rates with battery power — from a battery that was charged with excess solar energy from peak generating times. A note on export rates and energy arbitrage Some areas with time-of-use rates also have variable export rates — the amount homeowners are compensated for the solar energy they export to the grid. Variable export rates may change based on factors like time of day, and even time of year. This can be another important consideration for solar installations. To account for both TOU rates and variable export rates, Aurora has developed energy arbitrage. To get more details, check out our blog post: Optimize your ROI story with solar + storage for energy arbitrage. Key takeaways To summarize: Like the prices of movie tickets, under time of use rates, the cost of electricity varies based on the time a homeowner uses it. TOU rates are becoming more popular nationwide, making it imperative for solar installers to be familiar with them, be able to explain them to customers, and adjust their proposals so solar delivers maximum ROI. Aurora's Energy Arbitrage features can provide homeowners more return on their solar + storage investment — and it can help you attach more storage to your solar sales. Want to learn more about how you can use energy arbitrage to help your customers and sell more solar + storage? Schedule a quick chat with one of our experts to get all your questions answered. Want to try it for yourself? Get started here. Cover photo credit: NREL/DOE. ### The 10 brightest state solar policy wins of 2024 In our previous post, we identified 5 solar policy wins that brightened our 2024. And while these national milestones are worth celebrating, we all know that solar energy policies rely significantly on state and local legislature to exist and thrive. So in this post, we'll celebrate 10 state- and local-level policy wins (in no particular order!) that energized us over the past year. State solar policy wins of 2024 Virginia  On July 1, 2024, Virginia enacted House Bill 1062 and Senate Bill 271, permitting third-party ownership (TPO) for rooftop solar systems statewide. The new legislation strengthens choices for residential energy customers, with expanded options to reduce ongoing electricity costs with a solar lease or power purchase agreement (PPA).  Want to learn more about third-party ownership, its benefits, and how it can lead to more installed systems? Get our free cheat sheet. Alaska On a sunny August day in the Last Frontier, Alaska passed Senate Bill 152, legalizing community solar. The bipartisan bill, known as the SAVE (Saving Alaskans money with Voluntary community Energy) ACT was signed into law on-site at the state’s first community solar plant in Anchorage.    Colorado In 2024, Colorado also set a national example for grid modernization passing Senate Bill 24-218. The bipartisan legislation, finalized in May, funds many critical initiatives that support solar and storage development, including expanded utility resources and shorter interconnection wait times. A historic leader in community solar, Colorado also enacted bipartisan Senate Bill 24-207 this year, ensuring 51% program access for income-qualified subscribers.   Massachusetts  The Bay State enacted two major solar policy wins in 2024. First in July, House Bill 4876 passed, accelerating solar deployment and addressing several longstanding challenges hampering the local solar market. A few months later, Massachusetts passed Senate Bill 2967 to promote a clean power grid, advance energy equity, and protect electricity bill ratepayers statewide. Rhode Island The country’s smallest state took a giant step to protect renewable energy customers in August 2024 when Governor McKee signed the Solar Protections Bill. Created to combat questionable sales practices by the industry’s bad actors, the law requires RI solar retailers to register their business and a roster of all representatives soliciting sales with the local government. The law also requires solar companies to conduct criminal background checks for all sales personnel, follow municipal restrictions on door-to-door sales, and abide by federal telemarking rules. With many bad actors around, building trust with solar customers has never been more important. The Solar Sales Toolkit can help. Maryland Maryland’s Brighter Tomorrow Act of 2024 was one of the biggest solar policy wins this year, promising to boost residential PV development with incentives worth up to $7,500 for income-qualified households. Later in the year, the Maryland Energy Administration (MEA) also announced a SolarAPP+ Implementation Grant Program, which helps cover costs incurred by local building authorities while adopting the free SolarApp+ to accelerate clean energy project development. California  Though efforts to repeal NEM 3.0 fell short in 2024, the Golden State is still a (perhaps the) major player in state-level solar policies. In March, the California Public Utilities Commission (CPUC) approved the use of distributed energy resource (DER) export schedules to help balance local grid electricity supply and demand. This CPUC decision is the first of its kind in the US, strongly supports solar and storage development, and is intended to lower future necessary costs for infrastructure upgrades.  New York As a $249.8 million Solar For All grant recipient, NYSERDA (New York State Energy Research and Development Authority) piloted its first local Solar For All program in 2024, benefiting low-income households near the Town of New Scotland. After the pilot’s success, the New York Public Service Commission approved an order to replicate the local Solar For All program statewide, leading as a national example.  Pennsylvania  In March 2024, House Bill 1842 passed in Pennsylvania with full bipartisan support, laying the groundwork to create community solar opportunities in the state. Two months later, Governor Shapiro signed House Bill 1032 and Senate Bill 831 into law, establishing the Solar for Schools program. The program is designed to create jobs, protect local air quality, and lower schools’ energy costs, thereby opening budgets to additional resources for students, teachers, and parents.  If you've been reading closely, you noticed that this is only 9. Once again, we're looking to you for the final one. What was your favorite? Is there a big one we didn’t call out? Let us know on LinkedIn and we’ll include your thoughts in our follow-up post. In the meantime, be sure to check out our US Solar Policy Wins post. Featured image by Aubrey Odom. ### Which of Santa Claus’s workshops supports the most solar? NOTE: This article was originally posted in December, 2019. (The screenshots are old, but the sentiment is timeless: There's no place like a solar-powered home for the holidays.) In the spirit of the holidays, we're taking a look at three places commonly associated with Santa Claus: the Santa Claus House in North Pole, Alaska; Santa’s Workshop in North Pole, New York; and Santa Claus Village in Rovaniemi, Finland. We figured that if Santa is giving away all his coal to naughty children, he’ll need some solar power to keep the workshop up and running! Should Santa really go nuts? Click above to see his (and your) options for whole home electrification. In our Solar Landmark series, we use Aurora’s solar design and sales software to design solar installations for notable locations around the world, from Mt. Vernon to Miss Shannon’s School for Girls from Beetlejuice. Let’s take a look at modeling the buildings and campuses of these Santa-affiliated locations, using Aurora’s SmartRoof design tools, LIDAR and Google Street View, automatic terrain shading, and much more! Table of Contents: Santa Claus House, North Pole, Alaska Santa’s Workshop, North Pole, New York Santa Claus Village, Rovaniemi, Finland Santa Claus House, North Pole, Alaska The first location we’re taking a look at is the Santa Claus House in North Pole, Alaska. This outpost has been around since 1952 and offers letters from Santa, delicious snacks, and a chance to meet his reindeer team. Santa Claus House in North Pole, Alaska. Source: Alaska.org. North Pole, Alaska has LIDAR and standard-definition imagery. Examining the building, there are three main sections to focus on: the two-story entrance by the freeway, the one-story midsection with dormers, and a three-story tower. With Aurora’s SmartRoof design tool, we modeled each of these as a separate piece, and had Aurora stitch them together to make the full building. First up is the two-story section. We use SmartRoof to draw the perimeter, which gives us this a hip roof. When we set the edges to be vertical, the roof changes from a hip structure to a gable structure. The first step of designing Santa Claus House in North Pole, Alaska is to adjust the default hipped roof (left) to a gable roof (right). Finally, we raise the height of the remaining two edges and adjust the slope so that it fits with the LIDAR data, and then use the dormer tool to add in the two dormers. After we repeat this for the lower section, we get a mostly completed building. Santa Claus House in North Pole, Alaska can be modeled in multiple sections in Aurora as shown. LIDAR data allows the designer to match the pitch of the roof and other elements to the real conditions at the site. The tall tower is a little trickier. We start this as an octagon, and set the “diagonals” to be vertical faces, leaving four of the faces to determine slope. We set one pair to have a higher height, corresponding with the front edge of the building, and another pair to have a lower height. This allows us to create this complex shape, following the same steps as any other SmartRoof building in Aurora. The tower element of Santa Claus House in North Pole, Alaska can be modeled in Aurora by creating an octagon. After adding in trees to ensure accurate shading analysis, we get our final layout and are ready to add solar panels. The completed site model of Santa Claus House in North Pole, Alaska as created in Aurora solar design and sales software. Our irradiance map tells us that the southwest facing section would receive the most sunlight throughout the year, so we’ll start by adding a system there. We filled the roof surface with solar panels, and then used the autostringing tool to automatically connect them, which also takes into account the higher string voltages in the cold weather. Before we run the performance simulation, we added in monthly snow loss for Big Delta, the closest TMY3 station to North Pole, Alaska. You can get some estimated snow loss data from NREL’s weather stations by checking out our map here. We entered monthly snow loss values for this location based on the nearest NREL weather station in order to more accurately estimate how much solar energy our proposed PV system would be able to produce. With the snow losses in place (and assuming Santa doesn’t have his elves clean off the array after each storm), we ran the simulation and estimated an annual production of 19 MWh for the year — a low solar yield compared with sunnier climates like California. Even though the loss factors from snow are quite high in the winter months, snow only accounted for a 7.5% production loss according to the loss diagram, due to the short winter days reducing the light that would have been available in the first place. We think this might not be enough to power Santa’s toy factory, so we used the carport tool to draw an 80 kW carport over the parking lot (shown below). This brings the production up to 79.1 MWh per year for the site. The completed solar design, with a carport, for Santa Claus House in North Pole, Alaska, created in Aurora Solar Software. Santa’s Workshop, North Pole, New York Santa’s Workshop in North Pole, New York consists of several small houses that visitors can stop by for last-minute gifts. Each of these can be done with an individual SmartRoof. Since the workshop is on a hill, we chose to increase the heights of all buildings and all trees to match the LIDAR data, ensuring that shadows from neighboring buildings and all trees are correctly assessed. We fit panels onto the two surfaces with the highest irradiance, giving the 39.2 kW system shown below. A site model and solar design for Santa’s Workshop in North Pole, New York, created in Aurora Solar. Aurora’s simulation produced a yield of 937 kWh/kWp for a total of 36.8 MWh over the year, making this system a bit better performing than Santa’s Alaskan outpost. Only 4.3% of sunlight was lost to snow by our estimation. We made sure that automatic horizon shading was calculated for Santa’s Workshop, since the location is surrounded by steep hills. However, we found that this only resulted in a 0.4% irradiance loss over the year, since the panels were placed on faces that look away from the hills. Santa Claus Village, Rovaniemi, Finland Santa Claus Village in Rovaniemi, Finland is located within the Arctic Circle, and offers a chance to meet Santa in person. It’s the largest of the sites we’re investigating. As usual, we used SmartRoof pieces to build pieces of each building, letting the software stitch together the parts to create the finished structure. Here’s our site design and system: A site model and solar design for Santa Claus Village in Rovaniemi, Finland, created in Aurora Solar. While Aurora has added LIDAR in many regions around the world, Rovaniemi does not have LIDAR available. Fortunately, users can use our Street View Ruler tool to measure the slope and lengths of buildings. The measurements are saved in the 3D design view and buildings can be adjusted to match those measurements - in this case, the front entrance has a roof pitch of about 25 degrees. Using Aurora Solar’s Street View Ruler tool, a solar designer can measure the slope of roof faces and the length of different parts of the building or surrounding objects like trees. The left image shows how you can place nodes on the equivalent parts of Street View and top-down images for Aurora to provide the pitch of the roof; results are shown in the right image. After completing the village design, we can take a look at the sun path to see what areas are shaded throughout the day. Near the summer solstice, the sun doesn’t set, as shown with the sun path tool: Aurora’s sun path tool shows the path of the sun through the sky at different times of the year. At this location in Rovaniemi, Finland, in the Arctic Circle, we observe an unusual sun path in summer months because the sun never sets. We fit a 153.4 kW system on the roofs of Santa Claus Village, spread across several buildings, good for an estimated production of 115.2 MWh over the year but with a low yield of 751 kWh/kWp. (Yield measures how much energy, in kWh, is produced for every kilowatt of module capacity under ideal conditions, kWp, over the course of a year.) Aurora’s loss diagram (which shows how much energy production is reduced by different sources) shows an interesting effect. We have a positive environmental conditions “loss.” This is because the modeled cell temperature was colder than the STC rating conditions of 25C for a good part of the year, which in turn increases the production of the panels compared with the test conditions. Most sites, particularly in hot desert environments, will see a negative value for the environmental loss which also includes mismatch between strings. Aurora’s loss diagram shows how much energy production is reduced by different sources. Santa Claus Village in Rovaniemi, Finland has an unusual loss diagram that shows positive environmental “losses” because the consistent cold temperatures lead to more efficient panel operation. Between the three locations modeled, Santa Claus Village presents the most available roof area for solar panels, even though the output per panel will be worse than the North Pole, New York location. We estimate that this system will offset about 2.5 million pounds of coal over its lifetime. Wherever Santa’s workshop actually is, we suspect that making all those toys requires a lot of energy and think solar could be the perfect gift for the jolly old elf himself. Not only would he and Mrs. Claus enjoy cleaner air, and likely cost savings some great cost savings compared to their current energy source, they’d also be helping to counter the impacts of climate change on their home. We hope this article provided some insights on how to approach the remote modeling process and helped you see how you can utilize some of the advanced capabilities of Aurora in your solar work. Happy Holidays! Click above to get the free whole home electrification guide. Santa Claus House, Santa Claus Village, and Santa’s Workshop are not affiliated with Aurora Solar Inc. This blog post is for entertainment purposes. ### The 5 brightest US solar policy wins of 2024 While it's been a turbulent year for solar in the US, as 2024 draws to close it’s important to remember the industry had some really big wins.  Through the many ups, downs, approvals, and dismissals, PV advocates everywhere have reason to celebrate the many successful initiatives that were implemented, helping accelerate solar development and increasing access to low-cost renewable electricity in communities nationwide.  In this two-part series, we’ll do just that — highlight some of our favorite US solar policy wins from 2024. Let’s start with 5 of our favorite wins on the federal level.  US National Solar Policy Wins 2024  1. Saving water… and the planet In early April 2024, the Department of the Interior announced a $19 million investment to install solar panels over irrigation canals in California, Oregon, and Utah to reduce evaporation and produce local, low-carbon electricity.   2. Solar for all Later that month, on Earth Day, the federal government launched Solar for All, a $7 billion program to deliver residential solar projects to over 900,000 low-income households nationwide.  Solar for All is expected to save disadvantaged Americans an estimated $350 million annually, in New York, Illinois, Puerto Rico, Washington D.C., Guam, and 55 other states, territories, and tribal lands. For a full list of Solar For All grant recipients and more information on local programs, please see this resource from the Environmental Protection Agency (EPA).  Solar for All reminds us of Edward Norton’s (yes, that Edward Norton) inspirational Empower keynote, “The Importance of Solar for All.”   3 & 4. GRIP times 2 On August 6, 2024, the White House announced its second round of Grid Resilience and Innovation Partnerships (GRIP) with the Department of Energy (DOE), supporting national solar development, interconnection, and energy security efforts. The $2.2 billion investment in 8 projects across 18 states was made possible by the 2023 Bipartisan Infrastructure Law.  An excuse to post a cool picture? Maybe... In October, the DOE announced another $2 billion in GRIP funding for 38 grid improvement projects across 42 states, with the primary objectives to: Protect the power grid against growing threats of extreme weather events  Lower ongoing energy costs for affected and underserved communities Catalyze additional electricity demand from manufacturing and data centers By now you've realized that's only 4. We're relying on you to supply the 5th. What was your favorite? Is there a big one we didn't call out? Let us know on LinkedIn and we'll include your thoughts in our follow-up post. In the meantime, check out our 10 brightest state solar policy wins of 2024. Featured image by Andreas Gücklhorn ### What is whole home electrification? The basics, the trends, and how you can benefit There's no two ways about it: being and eco-conscious homeowner on a budget is tough. The cost of living continues to rise. Even as inflation has come down, consumer prices have increased more than 20% since the pandemic by some metrics. And yet, the desire to make environmentally friendly choices remains. If only there was a way to help save the planet while also saving money... If you've read this far, you likely know what we're going to say next: there is! Whole home electrification can help Whole home electrification is the process of switching a home’s equipment and appliances over from being powered by nonrenewable resources — like fossil fuels — to being fully powered by electricity.  With electricity as a home’s sole energy source — especially when you use renewable energy sources like solar to generate it — you can do more than just reduce your emissions. Residential home electrification can actually save American households $96 billion in energy costs across 49 million U.S. homes. But electrification is just one aspect of planning to run a home on electricity, of course. Other ways to improve energy efficiency and reduce utility costs include insulating windows and swapping out existing lighting fixtures for more energy-efficient ones — and there are more where that came from.  To learn more about trends in whole home electrification, get a deep dive into the benefits, and get real life steps on how to get started, check out our (ungated!) e-book: From Solar to Heat Pumps: Mastering Whole-Home Electrification. Click above to get the free whole home electrification guide. For solar installers and contractors, it also has actionable information on how to add whole home electrification services to your portfolio. Download it (again, ungated), read it, and hand it out to potential customers. ### What are solar soft costs? An industry overview Note: This blog was originally published in 2019. It was updated in November 2024 to reflect the most recent information. If you have any questions, please contact us. If you work in the solar industry, chances are good that you’ve heard the term soft costs. But what does it mean and why should you care? Solar soft costs are a critical topic for the industry (and solar customers) because they are one of the barriers to making solar more affordable — and thus more accessible. Let's take a look at what solar soft costs are and what’s being done to address them. What are solar soft costs? The U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy defines solar soft costs as the "non-hardware costs associated with going solar". That includes the costs of acquiring customers — from marketing and sales costs to assessing if a customer is a good candidate for solar based on their roof type and how much sunlight their property receives — as well as the costs associated with permitting, interconnection to the grid, installation labor, and other assorted costs like supply chain and transaction costs. Although it's from 2021, and the exact percentages may have shifted slightly, this chart provides a good breakdown of soft costs. (Source: U.S. Department of Energy.) Solar soft costs vs. hard costs The hard costs of going solar are the tangible aspects required to construct and install the solar power system. This includes the solar panels, inverters, mounting hardware, and any other necessary physical components. Why are soft costs so important for the solar industry to address? Soft costs are vitally important to address because they represent one of the greatest opportunities to reduce the cost of solar PV. While solar equipment costs have dropped by more than 40% over the last decade due to technological advancements and increased production scale (and by 99% from 1980 to 2018!), soft costs remain stubbornly high. As of late 2023, soft costs can make up to 65% of the total cost of a residential PV system according to the Solar Market Insight Report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie Power & Renewables. SEIA calls soft costs the “biggest cost-decline opportunity in residential and small commercial solar.” Soft cost reductions are a key step to getting more solar on the grid—thereby helping the solar industry to keep growing and mitigate climate change. Although the total cost of residential PV in the U.S. has declined over time, the proportion of soft costs — like supply chain and overhead, labor, design, permitting and engineering — has grown (see gray line). Source: SEIA/Wood Mackenzie Power & Renewables U.S. Solar Market Insights 2023 Year in Review. What are the benefits of reducing solar soft costs? We’ve established that soft costs are high in the U.S. and represent the majority of the cost of a solar PV system — but that’s not the case everywhere. In fact, we see dramatic differences in soft costs in different countries. SEIA reports that solar soft costs “continue to be much higher” in the U.S. compared to other countries with developed solar markets, despite hardware costs being relatively similar. For example, solar soft costs are roughly 50% less in Germany than in the U.S., according to a Massachusetts Institute of Technology (MIT) study. The report says that while hardware technology improvements tend to be shared globally, soft cost innovations “typically aren’t shared across borders.” “This country-by-country difference could be driven by regulation and permitting processes, cultural factors, or by market dynamics such as how firms interact with each other,” says the study’s senior author, Jessica Trancik, a professor in MIT’s Institute for Data, Systems, and Society (IDSS). Bringing down U.S. soft costs would help bring the cost of solar here in line with much the lower prices we see in these more mature solar markets, enabling more U.S. homeowners to go solar. Improving U.S. regulation and permitting issues would also streamline the solar installation process, allowing installers to serve more customers and significantly reduce costs. “We haven’t been thinking about soft technology design as systematically as we have for hardware. That needs to change,” says study co-author Magdalena M. Klemun, a former IDSS graduate and assistant professor at the Hong Kong University of Science and Technology. As the cost of solar comes down, installations and the proportion of energy generated from solar go up. These projections from the U.S. Department of Energy’s (DOE) Sunshot initiative, while focused on the total cost of energy, illustrate the importance of reducing solar costs. Driving down soft costs, which comprise over half of the total cost of solar in the U.S., will be key. Source: DOE Sunshot Initiative. What’s being done to lower solar soft costs? The importance of soft cost reductions to the growth of solar in the U.S. has not gone unnoticed — solar industry groups and companies and the U.S. government have been taking steps to bring these costs down. Approaches to lower soft costs range widely — from efforts to reduce customer acquisition costs to programs to streamline codes and permitting. The DOE SunShot Initiative One of the major efforts to reduce the cost of solar is the Department of Energy’s SunShot Initiative. Launched in 2011, the program aimed to “reduce the total cost of solar energy by 75 percent,” setting ambitious targets for the Levelized Cost of Energy (LCOE) in residential, commercial, and utility-scale sectors. (In 2017, SunShot announced that its 2020 utility-scale cost target of $0.06 per kWh was reached three years ahead of schedule.) Currently, SunShot has 2030 goals set to further reduce utility-scale solar costs by 50%. While the initiative focuses on solar costs overall, supporting efforts to tackle soft costs — including software solutions to improve the installation process — has been one of the key ways that SunShot supports solar energy cost reductions. Aurora Solar is a two-time SunShot grant recipient for our efforts to make solar design and customer acquisition more efficient. One way that soft costs can be reduced is by eliminating some of the time-consuming manual labor involved in designing a solar installation for a customer and in assessing whether a prospect is a good fit for solar based on solar access and irradiance. Aurora pioneered the ability of solar contractors to use software to remotely design an accurate PV system, using satellite imagery and other data like LIDAR and other 3D data, rather than driving out to the customer’s property to take measurements. The U.S. National Renewable Energy Laboratory (NREL) found that remote system design can reduce the cost of a solar installation by as much as $0.17/W — or $850 for a 5 kW system! Click above to learn more about how software can help you reduce soft costs. Solar APP+: streamlining solar permitting The Solar Automated Permit Processing — SolarAPP — initiative works to reduce the local barrier of going solar by expediting and lowering the cost of solar permitting. Founded in 2018, SolarAPP has now become a collaborative effort led by solar industry leaders and groups, including the National Renewable Energy Laboratory (NREL), SEIA, and the Solar Foundation. Permitting is a key barrier to lowering soft costs, especially because the permit requirements for solar installations vary widely across jurisdictions. According to SEIA, direct and indirect solar permitting costs add about $1.00 per watt installed, or roughly $6,000 to $7,000 for the average residential solar system. SolarAPP seeks to reshape the solar permitting process at the local, state and federal level by developing a standardized online platform for solar installers to register new systems. The program would also establish equipment standards and/or certified equipment lists for solar and energy storage projects, as well as system design standards, to quicken the approval process. SolSmart A related initiative by The Solar Foundation, the SolSmart Initiative, helps local governments reduce red tape and make their communities more supportive for the growth of solar energy. Over 500 local government and regional organizations have worked with the program to earn a SolSmart designation, indicating that they are solar-friendly communities. California’s solar mandate: Title 24 California’s Title 24 solar mandate updated the state’s building standard code, now requiring solar energy provisions on all newly built residential and commercial structures (including building expansions), effective January 2023. The effort was passed in 2019, marking the first solar mandate in the U.S. The effort is meant to “remove many of the ‘soft costs’ of the PV market, such as customer acquisition costs and customer-specific design,” according to the California Energy Commission. It’s set to update every three years. Soft costs have stagnated for quite some time, keeping the cost of solar higher than it could be. However, there are many promising developments in the works that are helping to reduce solar soft costs, including our own initiatives here at Aurora. With continued innovation and collaboration to tackle this issue, the future looks bright for affordable solar energy. ### A guide to solar panel efficiency When you think of solar panel efficiency, you’re most likely thinking about how much sunlight a given panel turns into electricity. While this is certainly an important consideration for customers choosing a new photovoltaic system, it’s far from the only aspect of “efficiency” that goes into a high-performing PV system.  In this blog, we’ll look at a few different variables that go into making an efficient solar installation. We'll start with how well different panels and panel types turn sunlight into electricity, but also looks at other factors, like planning, installation, and maintenance. But let’s get started where the rubber hits the road: the panels themselves. Solar panel efficiency Over the years, solar panel efficiency has jumped from about 15 to more than 20%, with great promise to expand. New and emerging technologies, such as perovskite material, hold the promise of boosting solar panel efficiency to 40%. (For more information on just what perovskite solar cells are, check out this explainer.) When choosing solar panels, efficiency rating is an important metric to determine how much power a panel will produce compared to other products. Solar panel efficiency is based on two factors: Photovoltaic cell (PV) efficiency, which results from cell design and materials. Total panel efficiency, determined by cell configuration, design, and panel size. Let's start at the heart of the modern PV system: The cell. What is solar cell efficiency? When discussing solar cell efficiency, we mean the amount of sunlight that hits a solar panel and is converted into electricity. A solar panel is only as efficient as its weakest link: the cell. Cells, made of silicon, absorb photons and convert them to electricity.  Not all photons are absorbed, however: Depending on the wavelength of light hitting the cell, some photons are reflected and others pass through while others are absorbed and produce heat. What's left are able to separate electrons from the silicon, thus producing energy. The age-old struggle of solar cell design is designing cells to maximize photon receptivity by improving the following factors: Material. The type of material (monocrystalline, polycrystalline, etc) plays a critical role in overall panel efficiency. The most efficient cells incorporate the purest silicon. Impurities can lead to recombination, which results from electrons recombining when they encounter an impurity or defect in the cell's crystalline structure. Wiring and busing. Cells with multiple busbars and passivation help efficiently capture and transfer electricity. Reflection. Minimizing the amount of light reflected off the cell is also an important factor affecting efficiency. Thus cells treated with anti-reflective coatings (the blue or black you see on a solar panel) perform best. Click above to learn more about how software can help you design the most efficient solar systems. What is solar panel efficiency? Taking it up one level, solar panel efficiency is measured under strictly controlled test conditions called standard test conditions (STC). STC is established by exposing a panel to a constant light source and temperature, measuring the current and voltage produced for different load resistances. STC accommodates a cell temperature of 25°C, 1000W/m2 irradiance, and air mass of 1.5.  Efficiency is determined by the panel's maximum power rating at STC divided by the panel's area in meters: Efficiency = ([Pmax / Area] / 1000) x 100% Under STC, a one meter square, 15% efficient solar panel would produce 150 watts. Average panel efficiency in the real world is a whole different story, though. Solar panel efficiency is measured at standard factory testing conditions, so real-world efficiency may vary from what's advertised. That means there's a whole lot more that goes into the efficiency cocktail, such as: Wiring and busing used to capture and transfer electricity Reflection Panel installation and placement The region's potential solar output Panel age Weather Shade Color of the roof and protective backsheeting Types of solar panels and how they affect efficiency Four major solar panel types are available to the consumer market today, each with its own advantages, disadvantages, and cell configurations: Monocrystalline cells are one solid silicon crystal. Mono cells provide more space for electrons to flow, resulting in a smaller, more efficient panel. The downside is they tend to be more expensive. Polycrystalline cells are constructed of many individual shards of silicon melted together. While not as efficient as mono cells, poly cells have a lower price point. Thin-film cells are thin enough to be flexible, making them ideal for small-scale or portable applications, but are not efficient enough for use in large-scale installations. Cells can be further configured to maximize efficiency. We'll go through the various solar cell types and efficiencies below, but first, a brief description of some acronyms: PERC (Passivated emitter and rear cells) reflect light back into the cell, thereby reducing the tendency of electrons to recombine. As a plus, they also absorb greater wavelengths of light, and have a high efficiency rating compared to traditional modules. MBB (Multiple busbars): Reduces current loss by shortening the length a current must flow across a cell wafer. IBC (Interdigitated back contact): Energy conversion occurs on the back of the cell, allowing the entire front of the cell to absorb sunlight, offering higher efficiency, yield, and reliability. What are the most efficient solar panel types? Here are some of the main solar cell types ranked by efficiency: Polycrystalline, 13-16% efficiency Monocrystalline, 18-24% efficiency Thin film, 7-13% efficiency Transparent, 1-10% efficiency Solar tiles, 10-20% efficiency Perovskite, up to 27% efficiency What are the most efficient solar panels in 2024? Here's a rundown of some of the most efficient consumer solar panels available at the time of publishing (source: CNET): Maxeon 7 (445W), 24.1% efficient Canadian Solar TOPHiKu6 (470W), 23% efficient Maxeon 6 (440W), 22.8% efficient Maxeon 3 (430W), 22.7% efficiency REC Alpha Pure RX (470W), 22.6% efficiency Qcells Q.Tron BLK M-G2+ (440W), 22.5% efficiency Tiger Neo N-Type 54HL4R-(V) (450W), 22.5% efficiency These numbers are just a snapshot, and are constantly changing. Do your research (again, we did ours via CNET) and always be looking out. Click above to see how accurate, homeowner-friendly proposals can help you sell more solar. Ways to maximize your solar efficiency It should be noted there's a difference between setting max efficiency records and maintaining consistent performance in the real world. As stated above, a highly efficient panel may look good in a lab, but could lack the performance needed to operate consistently in practical applications. If your chief goal is to maximize electrical output of your system, technology like smart modules and module-level power electronics have to be considered along with solar panel model efficiency. Maximizing this output by making the whole PV system as efficient as possible also has the potential benefit of revenue from net energy metering. There's no such thing as a free lunch. Efficient solar panels come at a premium. If you're tight on space, the premium may be worth it (or may be your only option). For other configurations, a middle-of-the-road panel may suit the customer’s energy needs and budget restrictions. Once a system has been chosen, there are a few initial considerations that can help keep efficiency high. Unlock output potential with proper planning Regardless of which solar panel is chosen, detailed planning and resources should go into determining the best installation and placement possible. A good first step is making sure the sun shines on the panels by avoiding shaded areas and installing panels at the best possible angle. Aurora Solar can help you generate complete PV system designs and sales proposals with just an address and an electric bill. You can even swap in different types and brands of panels to see how much energy each will generate on a given project, so you can find that sweet spot between price and efficiency, and configure a system that takes full advantage of the manufacturer's STC efficiency.  A gentle reminder: Clean solar panels improve solar panel efficiency. Cleaning and maintenance The work isn’t done after a system is installed. Just like maintenance on a car, keeping a solar panel system clean and in good repair is essential to peak performance. Dust buildup over the course of a year can reduce output up to 4.4%, so if your system is in a particularly dry area where rain doesn't regularly wash your panels naturally, manually cleaning them is a good idea.  Even if you get regular rainfall, all panels should be regularly checked for pollen, bird droppings, leaves, ash, and other pollutants and residue. Wash panels gently with a hose first. If they're still dirty, softly squeegee with mild soapy water to effect. Why solar panel efficiency matters After looking at all the factors, it’s clear that solar panel efficiency is an important part of designing an efficient PV system. Just like fuel efficiency in a car, an efficient solar panel means less raw materials, a smaller footprint, and less required space for proper energy output.  For some applications, highly efficient solar panels are the only option. If space is limited, solar panel efficiency is vitally important to ensure enough energy can be harnessed. This may be the case on smaller residential homes where roof area or bare ground is at a premium. When looking for the perfect photovoltaic system, however, efficiency isn't everything: On a large percentage of homes there's more than enough space to install the number of solar panels required to suit energy needs, even when using less efficient panels.  Let’s see how this works in practice. Consider a home with a 1,500 square foot pitched roof that uses about 30 kWh of electricity a day, and gets 3-5 hours of peak solar-generating sunlight a day. How can we try to offset that 30 kWh? (Note: All the calculations below are estimates, for example purposes only, based on a panel’s STC efficiency, time in the sun, location, season, and other factors.) Using a panel that is 15% efficient, we can capture .45-.75 kWh of energy per square meter during a day when the sun is shining. We can reach our 30 kWh goal with about 40-70 square meters, or 430-750 square feet, of panels.  Using a panel that’s 20% efficient, we can capture .60-1.0 kWh of energy per square meter during a day when the sun is shining. So, we’d only need between 30-50 square meters, or 320-540 square feet, of panels. For context, a king-sized bed is approximately 40 square feet. Not all parts of a roof will be suitable for solar panels. Not every foot of a 1,500 sq. ft. roof will be suitable for solar installation, of course, but in this case there's likely ample space to install this capacity. Choosing a readily available, affordable, and efficient panel is an excellent choice.  Polycrystalline panels have around 15% efficiency, for example, and are among the cheapest panels available, making them a viable choice for many installations. However, poly panels tend to have shorter lifespans than more efficient (and expensive) monocrystalline panels. So if longevity is another key factor for your next project, efficient panels may win here. After choosing a panel, proper installation and placement of the entire PV system is critical to coaxing the most out of those panels. Improper installation — unsuitable backsheeting, inadequate ancillary equipment, etc. — and placement can significantly impede solar panel performance. In conclusion, solar panel efficiency is one part of the equation when choosing to go solar, albeit an important one. Installers have to consider all aspects of a project (cost, value, warranty, homeowner needs, and aesthetics) to determine what type of panel works best for any given installation. Schedule a quick demo to learn more about how solar panel efficiency fits into the larger install process.   Featured image by Bernard Hermant. ### Irradiance, insolation, TSRF, and more: key solar energy measurement terms Note: This post was updated in November, 2024 If you work in the solar industry, you know that the amount of solar energy available at a proposed project site is one of the most fundamental factors for determining whether installing solar makes sense for a customer. Obviously, the amount of solar energy — also referred to as irradiance or solar insolation — where the array will be sited will determine how much energy it can potentially produce. There are a number of different metrics for expressing the amount of solar energy at a given location, however. Whether you’re new to the industry or are just looking for a refresher on some key solar energy terms and metrics for expressing how much sunlight will reach your solar array, today’s article has you covered.   Aurora generates irradiance maps that visually communicate how much solar energy is available at each point on a roof. (Click the image to learn more.) Available solar energy — solar insolation and irradiance Solar insolation and irradiance are perhaps two of the most important solar terms to know for describing the available solar energy at a project site. The two terms are often used interchangeably in practice within the solar industry, as both quantify the amount of solar radiation a surface receives. However, they measure that value in different ways. 1. Solar irradiance Irradiance is a measure of solar power whereas insolation is a measure of solar energy. Because power refers to the rate of energy transfer over time (not the total amount of energy delivered), another way of thinking of irradiance is that it quantifies the amount of solar energy that arrives in a particular area in a given moment [Watt/m2]. 2. Solar insolation As previously shared, solar insolation is the measure of solar energy. When that [Watt/m2] value is converted to express the total amount of energy that area receives over a certain interval of time, say one hour, it is communicated in Watt hours (Wh) or, depending on quantity, kilowatt hours (kWh) per unit of area [(k)Wh/m2]. This is a measure of insolation. In Aurora, we use the term irradiance interchangeably with insolation and communicate the value in kWh/m2/yr. This provides a helpful way of conceiving of the amount of solar energy that will be available to your solar installation over the course of the year, given any shade that is present as well as the local weather patterns. 3. Solar access Solar access is another solar term used to quantify how much sunlight is available for a solar array at a particular site. It is also referred to as Solar Access Percentage or Solar Access Value. This metric expresses the available solar energy as a percentage of what would be available in perfect (i.e. shade-free) conditions. Solar access is calculated by dividing the actual solar energy present given shading at the site by the amount of solar energy if there were no shade: This is a handy metric as it provides an easy way of understanding how significantly shade is reducing the available sunlight. Because even a small amount of shade can disproportionately reduce the power output of a solar array, determining the extent of shading is an important first step in understanding whether a customer’s property—or a particular area of that property—is a feasible location for a solar PV system. Aurora provides a variety of measures of solar energy including irradiance, solar access, TOF, and TSRF. Moving your cursor over the roof face allows you to see how those values vary at different points. (Click the image to learn more.) 4. Tilt and orientation factor (TOF) Tilt and orientation factor, or TOF, is a metric that takes into account how the slope and direction of a given surface impact the solar energy that surface receives. The specific tilt and orientation that maximize the solar energy reaching a surface varies depending on latitude. Like solar access, TOF is a percentage that expresses actual conditions compared to optimal conditions. TOF is calculated by dividing the solar energy available at the actual tilt and orientation of the surface, by what would be available at the optimal tilt and orientation. Click above to learn more about how software can help you design solar systems. 5. Total solar resource fraction (TSRF) Total Solar Resource Fraction, or TSRF, is a measure of available solar energy that takes into account the two other metrics we’ve discussed in this article — solar access and TOF. TSRF can be calculated by multiplying the solar access of the site by the TOF percentage. TSRF provides a more complete picture of how much solar energy will be available for the solar panels to convert into electricity. This is because it takes into account both the percentage of available solar energy at a site given shading (solar access) and how much of that energy will reach the surface where solar panels will be mounted given its tilt and orientation (TOF). Wrapping it up These are the main solar energy terms you’ll need to understand when measuring available solar energy. Of course, there are other factors — like the stringing configuration and the capabilities of the components you use — that will significantly impact the amount of energy your solar design will produce given the sunlight it receives. The Aurora difference However, accurately quantifying the solar energy that is available to the PV system is an essential first step in correctly estimating the system’s energy output. These values once had to be determined based on manual measurements at the project site. Today, however, advanced solar software applications like Aurora can accurately calculate these values without a site visit—saving installers time and money and reducing the potential for error. Want to see how it works? Schedule a quick, personalized demo.   ### What's the difference between AC and DC in solar? Note: This blog was originally published in February 2021. It was updated in October 2024 to reflect the most recent information. If you have any questions, please contact us. Table of contents The difference between AC vs DC The war of the currents: AC vs DC Do household items use DC or AC? AC vs DC for solar panels What about AC solar panels? Advantages and disadvantages of DC in solar Advantages and disadvantages of AC in solar What about battery storage? In the solar industry, producing electricity is our bread and butter. This means it’s important for solar professionals to have a strong grasp of electricity fundamentals. If you’re new to solar, there’s a lot to learn — you can’t just plug the panels into the wall and call it a day. In today’s article, we cover one of the core topics every installer needs to understand about electricity: the difference between AC and DC, the two types of electric current.  AC and DC are both involved in solar systems. So, if your familiarity with AC/DC starts and ends with the famous band, this article is for you! DC vs AC: The difference between alternating current (AC) and direct current (DC) AC stands for alternating current and DC for direct current. AC and DC power refer to the current flow of an electric charge. Each represents a type of “flow,” or form, that the electric current can take.  Although it may sound a bit technical, the difference between AC and DC is fairly basic: Direct current (DC) always flows in the same direction.  Alternating current (AC), as you might expect from the name, changes direction frequently — 60 times per second in the U.S. (though the back-and-forth motion of the electrons still conveys energy to the end device). “A simple way to visualize the difference [between AC and DC] is that, when graphed, a DC current looks like a flat line, whereas the flow of AC on a graph makes a sinusoid or wave-like pattern,” says Karl K. Berggren, professor of electrical engineering at MIT. The war of the currents: The fight between DC and AC When electric power was first being developed and used in the late 1880s, it was unclear whether AC or DC would become the dominant way electricity was supplied. Two famous pioneers of electricity — Thomas Edison and Nikola Tesla — each advanced one of these options. Edison had developed DC first, so electricity that ran continuously in one direction was the standard in the U.S. during the early years of electricity. However, one issue with DC is that it’s not easily converted to higher or lower voltages — which is obviously useful for different applications.  Tesla believed he had the solution to this problem and patented AC, which can be converted to different voltages using transformers, and it’s also easier to transmit AC power over long distances.  Of course, Edison didn’t want to lose out on his royalties, so he started a misinformation campaign to discredit AC as dangerous (in which he went so far as to publicly electrocute animals!). At the peak of this “War of the Currents” was the Chicago World’s Fair of 1893. General Electric placed a bid to provide electricity for the fair using Edison’s DC, but lost to George Westinghouse, who said he could power the fair for $155,000 less using Tesla’s AC. Slowly but surely, power companies started to realize the benefit of using AC, and by the late 1890s, it had become the more dominant source of energy, and remains so to this day. However, DC is still used for devices like computers, solar cells, and electric vehicles. Click above to get our free guide on whole home electrification. Do household items use DC or AC? The short answer is, “both”. The U.S. electric grid and the power flowing into your home are AC. As a result, most plug-in home appliances — refrigerators, electric ovens, microwaves, and so on — run on AC power. Batteries, however, use direct current: They have a positive and negative terminal, and current always flows in the same direction between those points — from the positive to negative terminals — when they’re being discharged.  Because batteries are DC, many of the electronics you use — like your laptop and cell phone — run on DC as well. Is solar power AC or DC? Solar panels produce direct current: The sun shining on the panels stimulates the flow of electrons in a single direction, creating a direct current. An inverter in a home converting AC to DC The need for inverters Because solar panels generate direct current, solar PV systems need to use inverters. The inverter converts DC energy into AC energy so that electricity can be used in the home or sent back to the electric grid (in addition to some other functions). What about those DC-powered devices? Well, the power adapter that’s part of the charger for these devices is, in fact, a form of inverter. They convert the AC grid supply to DC power that can be used by the device.  So, when you plug in your laptop in your solar-powered home, the DC power from the solar panels is converted to AC by your inverter, it’s then turned back into DC by your laptop’s inverter, so your laptop can use it to charge.  That may seem like a lot. Thankfully, there’s solar software out there that can help ease the burden when actually putting these concepts into practice with solar system design. This solar software buyer’s guide details some of the features you should look for when considering a solution. What about AC solar panels? As we discussed above, technically all solar panels produce DC energy. That energy is then converted to AC power by the inverter. This is the case whether your PV system includes a string inverter (which converts energy from one or multiple strings of solar panels) or microinverters (which convert it for individual, or in some cases a few, solar panels). However, you may also have heard of AC solar panels. But if solar panels inherently produce DC, how can this be? What are AC solar panels? AC panels are simply solar panels that have microinverters integrated into them. System design using AC panels is similar to designing a system with microinverters, except that the installer doesn’t need to buy and attach the microinverters separately. Advantages and disadvantages of DC solar panels Again, technically all solar panels are DC panels because that’s how the panels work — they all produce a flow of electrons in one direction. As such, many panels on the market are DC panels. There are some pros and cons to buying DC solar panels. Advantages of DC in solar Safety: Edison may have taken his smear campaign against AC a little too far, but he was onto something. DC voltage is considered safer than AC because it doesn’t have as much of a risk of electrocution or shock. Accessibility: There’s a wider array of DC solar panels on the market, which also means DC solar panels tend to be cheaper compared to AC solar panels. Battery storage efficiency: DC-coupled battery storage systems are more efficient compared to AC because the electricity is converted from DC to AC only once. Disadvantages of DC in solar Extra conversion: Because your home and appliances run on AC power, a separate inverter is needed to convert the energy from DC to AC to be used. Limited distance: As was discovered back during the Current War, DC electricity has a significantly limited distance before it experiences a drop in voltage compared to AC electricity. More complicated solar storage installation: DC-coupled battery systems can be more complicated to install, which may drive up installation costs. Advantages and disadvantages of AC solar panels As explained, AC solar panels aren’t really AC solar panels, but rather DC solar panels that have built-in microinverters so they can produce AC electricity. There are pros and cons to buying AC solar panels as well. Advantages of AC solar panels Ease of installation: AC solar panels don’t need DC wiring or to go through a separate, standalone inverter, reducing material needs and install time. Ease of solar storage installation: If you already have a solar system, installing an AC-coupled battery storage solution can be very straightforward, which means a cheaper and less time consuming battery installation. Ease of expansion: If you want to expand a traditional (DC) solar system, you will also need a new inverter that can handle the additional load (assuming the inverter was sized correctly at the start). AC panels don’t have a central inverter, so you can simply add them. Disadvantages of AC solar panels More expensive: Because of the built-in microinverter, AC solar panels tend to be more expensive compared to DC panels. Inverters exposed: With traditional DC panels, your panels will be outside on the roof, while your inverter will likely be in a more protected area. But with AC solar panels, the inverters are built into the back of the panel, meaning they’re more exposed to the elements and therefore at higher risk of damage. Maintenance: If there’s a conversion issue with a DC solar PV system, a solar technician can go to the inverter to identify the issue. But with AC solar panels, each panel is fitted with its own inverter, potentially making it harder to identify which panel might be acting up. What about battery storage? Home storage batteries connected to solar use the same general model. DC batteries run power through an inverter to convert it to AC. “AC batteries” on the market simply have a built-in inverter that lets them convert DC directly into AC. Understanding the differences between AC and DC is important in the solar industry. Not only is it essential to understanding how a solar array works and how it’s designed, this knowledge can also help you educate customers and ultimately build trust during the sales process. Ready to learn more? Check out our battery storage information page. ### What are solar AC and DC disconnects and why do you need them? Note: This blog was originally posted in 2020 and was updated in October 2024 to reflect the latest information. AC and DC disconnects are essential components for any residential solar panel system.  An AC (alternating current) disconnect separates the inverter from the electrical grid. In a solar PV system it’s usually mounted to the wall between the inverter and utility meter, and can be a standalone switch or a breaker on a service panel. DC (direct current) disconnects are switches that can interrupt the flow of DC.  Installing solar AC and DC disconnects properly will ensure that your customer’s home is safe while also allowing incoming power to be quickly shut off if necessary. The majority of building codes across the United States require these solar disconnect switches, making it important to understand how AC and DC disconnects work. Click above to learn more about how software can help you design solar systems. What do solar AC and DC disconnects do? The primary purpose of these solar disconnect switches is so that you can shut off the incoming flow of power from your solar panels. Here is what a typical solar panel system looks like and where to find the disconnects: Photo Credit: Upstate Solar Solutions DC disconnects The DC disconnects (sometimes referred to as the PV disconnects) are placed between the solar panels and the inverter or, in many cases,  built into the inverter. Inverter The inverter is the piece of equipment that switches incoming power from DC (direct current) to AC (alternating current) so that your home can use the power. An inverter is needed because the power generated by solar panels is DC, but homes are wired for AC. AC disconnects After power goes through the inverter, it comes out as AC. To protect the home in case of emergency, like a fire, AC disconnects are installed after the inverter. Solar AC disconnects are typically mounted on the exterior wall of a home near the electric meter. Click the image to download our free Storage Sales Cheat Sheet — and attach more storage to your installs. Why are solar AC and DC disconnects necessary? There are 5 main reasons why AC and DC disconnects are needed on a solar panel installation: AC and DC disconnects are required by local ordinances and building codes. In addition, some jurisdictions using newer editions of the National Electric Code now require rapid shutdown capabilities, which is essentially an electronic DC disconnection that can take place at the modules or within a few feet. In the event of a fire in or around a customer’s home, using the AC disconnects to stop the inflow of power can lower the spread of fire and prevent the threat of electrocution to those entering the home. In the event of severe weather, such as tornadoes, hurricanes, or severe electrical storms, a customer will be able to disconnect their system at the DC disconnects to lower the chance of weather causing damage to their inverter and the home’s interior wiring. In the event of a flood, being able to shut power off is critical. Both AC and DC disconnects should be used at this time. If electric company crews are doing work in the area, such as replacing electrical lines or installing transformers, being able to disconnect your solar system from the grid is an important safety feature. How to size solar disconnect switches Disconnects come in a number of sizes, from 30 amp up to 800 amp, so proper planning is necessary to determine which solar disconnect sizes you need. To know which size is necessary, you’ll want to know the size and power output of a PV system. When designing a system, there are a few variables to consider: Voltage Circuit load Amps/breaker size Wiring and cable sizes These components come together to determine the overall load size, which determines the disconnect sizes you need. Once you’ve designed the system, you’ll then need to submit your designs for permitting. If all this sounds intimidating, don’t worry, Aurora can do a lot of this work for you. Using irradiance mapping, shade analysis, and LIDAR, Aurora can help design the optimal system and pick out the best disconnects for you. Standing out to your solar customers AC disconnects and DC disconnects are a crucial safety feature that can help you sell a homeowner on the solar panel system you’re building for them. Additionally, by sizing your solar disconnects properly, you can make sure you’re giving the homeowner the best price for their needs. AC/DC disconnects are just one piece of the BOS (balance of system) components you’ll need for a successful solar installation. You can learn about some of the other components and how you can save customers even more money in this post: The Basic Principles that Guide PV System Costs. Want to learn more about how AC and DC disconnects work? Schedule a personalized, no-pressure demo. Click above to schedule a personalized demo. FAQs What is a solar AC disconnect? A solar AC disconnect separates the solar inverter from the electric grid, allowing alternate current (AC) power to be safely shut off if necessary. An AC disconnect is generally mounted to the wall between the utility’s meter and the solar inverter, and can either be a separate switch or a breaker in an electric service panel.  What is a solar DC disconnect? A solar DC disconnect (or PV disconnect) shuts off the direct current (DC) power traveling from the solar panels to the inverter. DC disconnects are often built into the solar inverter.  Do I need a solar disconnect switch? Local ordinances and building codes require AC and DC disconnects in all solar installations. NEC Article 690.13 requires every PV system in the country to have a solar switch, and many municipalities now mandate rapid shutoff switches, which are essentially DC disconnects attached to or near each individual solar panel.  How do you size a solar disconnect switch? Standard solar disconnect sizes range from 30-800 amp. Disconnect switch sizes depend on the load of a PV system, which is determined by factoring the system’s voltage, circuit load, breaker size, and wiring/cable size. Want to learn more about selling solar? Click above to download the Solar Sales Toolkit. ### Aurora Solar and projetsolaire.com: Simplifying the solar process in France Aurora Solar is delighted to announce a partnership with projetsolaire.com, France’s leading solar project management software, working together to help accelerate the process of going solar in France. With a fast-growing network of more than 500 solar installers and developers, projetsolaire.com aims to make solar energy accessible to all through cutting-edge technology — providing comprehensive support for solar projects, so installers can deliver high-quality, efficient, and transparent solar projects for all their customers, residential and commercial. The company has now partnered with Aurora to further automate and improve this process, empowering their network with direct access to Aurora’s industry-leading 3D design technology. The solar market in France To understand just how much value projetsolaire.com can add, let’s take a step back and look at the solar market in France — a newer solar market with very high growth. The country added a record 1 gigawatt of solar capacity in the first quarter of 2024, according to the Ministry of Energy Transition. And while about a third was larger scale projects (more than 250 kilowatts) there were almost 60,000 new installs overall — almost 50% higher than the same period in 2023. That doesn’t mean that French installers aren’t facing challenges, though. Quite the opposite. France has a notoriously complex and time-consuming permitting process for residential installs that includes copious paperwork and miles of red tape. Although policies are national, the requirements of these documents vary for each of the thousands of town halls — like AHJs in the US — in France.  Projetsolaire.com has helped solar installers overcome these challenges in a number of innovative ways. For one, they’ve streamlined and automated the planning permitting processes, allowing their customers to easily request the necessary documentation — at the click of a button. Projetsolaire.com has also been using Aurora designs for years to ensure accurate, permit-quality designs for these permit plans. New challenges Challenges still remain. A big one french families and business owners are seeing is that misinformation and aggressive sales tactics — complete with energy production overpromises, and unrealistic timelines — have created significant trust issues with installers. This has slowed solar adoption, leaving sales on the table for installers and developers where every sale counts. Recognizing these outstanding challenges, projetsolaire.com has continuously expanded their services to meet installers’ needs. Through the company’s partnership with Aurora, they’re tackling this challenge of trust head on.  Projetsolaire.com customers now have seamless access to Aurora to easily create accurate 3D designs themselves, directly on their projetsolaire.com account. Leveraging features such as LIDAR, irradiance, and performance simulations helps installers in a number of ways, including the ability to: Deliver more accurate designs and estimates, that they can feel confident in Build trust and educate potential customers with interactive 3D visuals Design the best PV system in real-time to fit each customer’s unique needs Click the image to learn more. France’s solar future The need for the services projetsolaire.com provides is shown in its adoption — its customers grew their installs from 200 in 2021 to over 4,200 in the first half of 2024 (see our case study). But the company knows its work isn’t done yet.  Through this partnership, projetsolaire.com and Aurora are working together to further accelerate the energy transition in France. Combining projetsolaire.com’s industry leading project management software with Aurora’s powerful, accurate 3D design technology, the companies continue to develop new features and integrations that will help French solar installers and developers long into the future. Want to learn more about how projetsolaire.com can help your solar business cut through the red tape, wow customers, and ultimately sell more solar? Visit their website and reach out for more information. ### Solar + storage for extreme weather preparedness Hurricanes Helene and Milton leave millions without power Hurricane Helene rocked the Southeast, claiming at least 200 lives and causing widespread power outages that left a million Americans in the dark even a week later. Without much time to recover from the deadliest hurricane since Katrina, the fifth-strongest hurricane ever recorded in the Atlantic, Hurricane Milton, made landfall just two weeks later with top wind speeds of 180 mph, cutting off power to two million Floridians. To account for the growing intensity of these storms, meteorologists are now proposing a Category 6 level be added.  As extreme weather becomes more common, individuals and businesses are seeking ways to better protect themselves and maintain power during emergencies. Solar-plus-storage offers a reliable and resilient solution. This blog explores how solar and battery storage systems can keep essential services running even when the grid goes down, and provides steps to prepare your home or business for the next major storm. How solar batteries work during a hurricane During a hurricane or other power outage, a solar battery will automatically work, requiring no action on your part. You may notice the lights flicker for a brief moment as the battery switches over, but that’s about it.  During cloudy or rainy days, when the solar panels can’t recharge the battery fully, the energy that’s already stored in the battery will be available to keep devices running. Some batteries have a special feature, like Tesla’s Storm Watch, to ensure your battery is fully charged before a hurricane hits.  Effective battery management is crucial to ensure power lasts throughout an outage. It's recommended to avoid using high-power appliances, such as air conditioners, electric stoves, clothes dryers, and dishwashers, and focus on powering essential equipment like lights, refrigerators, and medical devices. Regularly monitor your battery levels and adjust power consumption accordingly to extend battery life.   Solar success stories during historic hurricanes During past major hurricanes, solar + storage systems have proven to be lifesavers for many. Hurricane Sandy (2012): During Superstorm Sandy, a large solar installer in New Jersey reported minimal damage to their panels, even in the hardest hit areas, proving solar’s durability against extreme weather conditions. Additionally, a school in the Garden State had a hybrid 232 kW solar system with supplementary diesel generators that was designed to operate independently of the grid. The facility manager explained, “Without our solar system on the roof of the school, we would have needed even more fuel, which would have been difficult to find because it was needed for all the repair trucks operating around the state.” Hurricane Florence (2018): Damage and flooding caused some fossil fuel and nuclear plants in North Carolina to be shut down for weeks, yet Duke Energy's solar panels were up and running only one day after the storm. A projects director at the Rocky Mountain Institute commented, “Solar is resilient — there are a ton of cases where, as long as the roof stays attached, the solar array stays attached as well." Hurricane Fiona (2022): After an 11-month blackout following Hurricane Maria (the largest blackout in US history), over 75,000 homes and businesses in Puerto Rico installed solar paired with batteries. By the time Hurricane Fiona struck in 2022, many residents were prepared. One resident said, “I was able to use the energy stored from my batteries that I generated from my rooftop solar system to get electricity, when the rest of the neighborhood couldn’t.” Hurricane Ian (2022): “America’s first solar-powered town" Babcock Ranch in Florida was the only community to keep their power, water, and internet in the county when the eye of Hurricane Ian, a near-Category 5 with 140 mph winds, passed directly over them. Their 150 MW solar plant with 10 MW of battery storage, spanning over 800 acres and powering 30,000 homes, kept the town resilient — along with other measures such as natural flow-ways for stormwater management, rain gardens to prevent flooding, and preserving two-thirds of the land for conservation with at least 75% native plants.  Hurricane Helene (2023): After the devastating hurricane passed, a Georgia resident expressed gratitude, saying, “Our solar and battery backup were the hub that kept us up and running." This emergency backup power allowed them to run their lights, refrigerator, and WiFi to share with their neighbors so they could reach out to their loved ones. Their solar and battery system provided enough power to last them over seven days during the extended outage.  National study on solar and battery performance during extended power outages Many homeowners and businesses may be wondering exactly how much electricity can solar and batteries provide during a several-day power outage?  To answer that question, the Lawrence Berkeley National Laboratory, in collaboration with the National Renewable Energy Laboratory (NREL), conducted a first-of-its-kind nationwide study on the ability of solar-plus-storage systems (or PVESS) to supply long-duration power (greater than 24 hours) during outages. The researchers found that a small PVESS system with only 10 kWh of storage can fully meet basic backup power needs (excluding heating and cooling loads) over a 3-day outage in nearly all US counties, regardless of the time of year. And there are plenty of batteries (and battery systems) on the market that can store that much power. How much storage do you need? Click on the image to learn more about estimating battery use. When heating and cooling are included in the critical load, a PVESS system of a similar size would meet 86% of the demand across all counties and months, on average. A larger PVESS with 30 kWh of storage could cover about 96% of the critical load. The heat source is a crucial factor, however, as heat pumps use 50% less energy than electric resistance heating and are also more efficient than air conditioners. How to choose which type of solar system to install? When deciding on which type of solar system to install, it’s important to consider your energy needs and the pros and cons of each option: Grid-tied systems These solar systems are the most affordable and allow homeowners or businesses to sell excess solar power to the grid for credit with net energy metering. However, during a power outage, grid-tied solar panels automatically shut down for safety reasons to protect workers repairing the transmission lines. Off-grid systems For those seeking energy independence, off-grid systems with "islanding" capabilities are the best solution. These microgrid systems continue to function during outages, but are the most expensive option as they require significant battery storage to cover your entire electricity demand 24/7. Also, in many states and municipalities there are strict regulations and zoning policies that make truly living off the grid unrealistic or illegal. If you’re considering this, check your local ordinances. Solar-plus-storage This third “goldilocks” option combines the benefits of grid-tied systems with battery backup for emergency use. During a blackout, your solar system will continue charging the battery (assuming it's not too cloudy or dark) and power essential equipment like refrigerators, freezers, lights, water pumps, WiFi, and cell phone chargers. Essential steps to get your solar system ready for the next storm Preparation is key for any natural disaster. Here’s how solar homeowners and businesses can best prepare before the storm approaches: Remove any debris, loose items, or equipment near your solar panels. Inspect the panels and report any loose bolts or connections to your installer to get fixed. Get nearby vegetation and dead or weak tree branches trimmed back to prevent damage.  Check your system’s monitoring software to ensure everything is working correctly. Familiarize yourself with how to read the battery’s energy levels directly from the equipment, which will help manage electricity use during an outage — especially if internet connection is lost. See if your city or town recommends shutting down the system during the storm to minimize the risk of electrical hazards. Ensure your batteries are in a safe, elevated location to protect the equipment in case of flooding.  Keep your solar installer’s contact information handy in case you need assistance. Take photos of your panels for insurance purposes in case of damage.  Use solar-powered lanterns at night to conserve battery power. The importance of battery management during an outage Storms can bring cloudy skies for days, limiting the solar installation’s ability to fully recharge the battery. That is why battery management is key. Be sure to conserve your energy usage and only power the essentials like lights, refrigerators, and WiFi.  Monitor your solar backup battery levels and adjust your usage to ensure the power lasts as long as possible. Also, make sure to never drain your solar battery completely to 0%. The battery needs to maintain a minimal charge, based on the manufacturer's specifications, to not damage the battery, shorten its life, or lose its ability to recharge.  Benefits of solar-plus-storage vs. traditional generators Solar-plus-storage systems offer several advantages over traditional gas and diesel generators, such as: Quiet operation: Unlike noisy diesel generators, solar + storage systems are silent, which is especially beneficial if the power is out for days or weeks. No fuel deliveries: Generators require fuel to run, and fuel deliveries may not be possible during a natural disaster. Solar batteries, on the other hand, recharge using renewable energy harnessed directly on your roof. Zero maintenance: Solar batteries have no moving parts and require little to no maintenance, unlike generators that need frequent servicing. Safety in flood zones: Solar panels are typically roof-mounted, making them less vulnerable to flooding compared to ground-level generators, which can then  short-circuit. More control and flexibility: Battery systems come with monitoring, giving you greater control and insight into where, when, and how your energy is being used. Environmentally-friendly: Solar panels produce zero emissions, as opposed to breathing in harmful fumes with diesel generators. Lights on... so quiet! Top 5 myths about solar and extreme weather debunked Many homeowners and businesses are unsure about how solar panels perform during severe storms. Below, we debunk some of the most common myths surrounding solar energy in extreme weather conditions: Myth #1: Solar panels don’t work during storms While it’s true that grid-tied solar panels automatically shut off during power outages for safety reasons, pairing solar with batteries makes it possible to have enough backup power to last several days or more, in addition to recharging with solar power.  Myth #2: Solar panels will fly off in hurricanes or high winds Solar panels are rigorously tested and designed to withstand extreme wind speeds, typically up to 140 mph or more, depending on the region's building codes. Many solar systems in hurricane-prone areas have survived severe hurricanes with minimal damage.  Myth #3: Solar panels require a lot of maintenance after a storm Solar systems are low-maintenance and resilient. After a storm, most panels will only require a visual inspection to check for debris or damage, and extensive repairs are rare. Since there are no moving parts, the chances of malfunction are much lower than for traditional power generation systems like diesel generators. Myth #4: Solar batteries don’t last through long outages Solar batteries can provide enough power for several days, depending on the system size and how the energy is managed. Additionally, solar panels can continue charging the batteries during daylight hours, extending the amount of backup power.  Myth #5: Standard home insurance doesn’t cover solar panels In most cases, solar panels are considered a part of the home’s structure and are covered under standard home insurance policies. As long as the panels are permanently installed, they are usually protected against damage from extreme weather events like hurricanes, hail, and windstorms. Be sure to check with your home insurance provider to confirm the details of your individual policy. Weather the storm with solar-plus-storage Power security is more important than ever. As extreme weather is becoming more frequent and severe, it’s clear that America’s aging energy infrastructure is not well equipped to handle these strong storms—leaving millions without power, sometimes for weeks or months. Solar-plus-storage can be a vital lifeline, providing on-demand power when you need it most. Gain peace of mind during a hurricane or other natural disaster with Aurora's solar + storage features, and invest in your safety and security before the next big storm hits. ### How to debunk whole home electrification myths Whole home electrification is a big potential opportunity for solar installers. After all, if a home or business is going to be using more electricity, it’s a perfect customer for a solar system to offset some of those costs. Likewise, offering electrification services like batteries, HVAC, and more is a great potential new revenue stream for solar companies. But where do you start? The following is an excerpt from our free e-book, From Solar to Heat Pumps: Mastering Whole Home Electrification. In it, we look at some common objections that homeowners have when presented with whole home electrification options, and how to address them. Download the full e-book for much more information on the market, trends, incentives, and strategies. With so much conflicting — and often untrue — information out there about electrifying homes, homeowners may harbor preconceived notions about whole home system drawbacks. Let’s take a look at — and debunk — some common whole home electrification myths: “Whole home electrification is expensive” Cost is a crucial consideration for most consumers. So when it comes to electrifying their home, consumers won’t hesitate to back out if the price feels too high. There are a few important factors that can defray these costs and show improved cash flow and long-term (and even short-term) savings.  The first is incentives. National policies like the Inflation Reduction Act (IRA) and the Investment Tax Credit (ITC), combined with state and local incentives for installing energy-efficient and electric technology, can combine to take a real bite out of the initial cost of electric systems. There are also low- and no-interest financing options for energy efficiency and electrification projects available in many states. For example, in Massachusetts, homeowners that qualify can get up to a $25,000 loan at 0% interest for energy-efficiency upgrades. Knowing the incentives in your area can help you come up with the most affordable solution for homeowners. “Whole home electrification takes too long” Some homeowners may balk at the idea of paying for a lengthy electrification process, or worry about the risks of experiencing temporary outages along the way. But, homeowners can electrify their homes at their own pace — there’s no need to do it all at once. For example, they can start by pairing solar energy with an energy storage solution like a lithium-ion battery. Later, they can add an electric vehicle (EV), and then a hot water heater, oven, and heat pump. Make sure your customers’ solar system is designed to facilitate later additions so you don’t run into unforeseen problems down the line. In fact, according to Ohm Analytics, at residences with multiple electrification technologies, homeowners often take a phased approach to electrifying their homes. Of homes with solar already installed, the next electrification technologies installed include: storage (42%), MPUs (23%), heat pumps (19%), and EV chargers (16%).  “There’s no support for whole home electrification” In fact, it’s likely your own organization provides homeowners full support throughout the home electrification process, including initial assessment, design, installation, and final inspections of all solar components. And following project completion, these companies frequently offer ongoing support and maintenance for panels, batteries, the grid, and more, all services tailored to the customer’s particular home and profile. As an installer, you have the opportunity to showcase your services and maintain lasting customer relationships when you help homeowners electrify their home. Electrification is a journey, and every homeowner follows their own journey — you can be their support guide along the way. Download the free e-book, From Solar to Heat Pumps: Mastering Whole Home Electrification, to learn more, like: What exactly whole home electrification is, and what its benefits are Some of the most popular electrification solutions, including heat pumps, panel upgrades, and more Trends driving home and business owners to electrify Incentives and regulations that can help  Click above to get the free whole home electrification guide. ### Solar Leadership series: 5 questions with EagleView’s Peter Cleveland In our Solar Leadership series we try to get a pulse on the solar market, trends, and forward-looking thoughts from some of the best and brightest in the industry. Today’s guest is Peter Cleveland, Vice President Partner Strategy for EagleView.  In our discussion he explains more about EagleView’s business and how it helps solar companies, before getting into what he looks for in transformative technology and where the solar market could use more innovation.  Q: Can you give us a quick review of EagleView's history and its impact on the construction/insurance industry?  A: For 25 years, we have been capturing high-resolution aerial imagery and delivering property analytics to a number of different industries. For the construction and insurance industries, specifically, we have become the unbiased, 3rd-party source of truth for structural measurement data. Put it this way — roofers don't measure roofs, they use EagleView. In insurance, when it comes to property damage and understanding how to more effectively resolve claims, 24 of the top 25 US insurance carriers trust our data to help inform their settlement amounts. Q: Why are EagleView and Aurora such good partners for the solar industry? A: EagleView is a leading provider of aerial imagery and property data, Aurora is the leading platform in solar servicing the entire project lifecycle. Great imagery and data are critical to creating accurate solar designs that can streamline processes, minimize changes, and ultimately help provide the homeowner with the best outcome possible. The partnership just makes sense and allows both organizations to really focus on our core competencies while delivering the best possible solution to the solar market. Q: What EagleView features are generally most impressive to those seeing it for the first time? A: Our vast imagery coverage: 94% of US population coverage. And the accuracy of our 3D structural models is also impressive. Our customers have reported that our 3D structural models and associated measurements are more accurate than a human with a tape measure and equal to what you would get with a drone, while never needing to leave your desk to get the data. Click above to learn more about how EagleView Powered Models can help your business. Q: Why is it important for customers to distinguish between EV imagery and EagleView Powered Models (EVPMs)? A: EagleView imagery allows you to trace on a single top down image, and because almost all top down images have some level of skew, the accuracy of the traced roof is almost always compromised. EVPMs leverage our decades old, proven and proprietary technologies. This methodology references not only the single top down view, but also 4 oblique or angled views from all cardinal directions. This 5 image process allows for us to correct for image skew in any one perspective and obtain a great level of detail for features such as plumbing vents. As a result, the quality of EVPMs is far superior to that of even the most skilled designer limited by using a single top down image. Q: What do you look for in a technology to see if it might be transformative for an industry? A: Simple yet novel solutions, the tech you see for the first time and say “oh that makes sense”.  Oftentimes, there are advancements in technology which enable these otherwise obvious solutions to become a reality. Q: What do you see as the next area of solar that needs reinvention? A: Absolutely sales techniques and processes. And it begins even before the salesperson with good consumer education and awareness which help the homeowner overcome the current doubts and fears of our industry. This is then further supported by credible sales personnel equipped with the best technology to put forth dependable proposals that accurately demonstrate the value of going solar.   ### The beginner’s guide to solar energy: Solar 101 Solar for beginners guide Welcome to the first installment in our 6-part series on Solar Basics 101, updated in late 2024 with the latest information. This comprehensive solar 101 series explores the key drivers behind the technology’s rapid growth. It also delves into many of the most important considerations when designing and customizing new solar photovoltaic (PV) systems from the ground up — including financing, shading, and how best to optimize your customers’ savings based on their energy bills and properties’ solar power generation potential. Click the image to download a printable version. But first, it’s important to understand why solar has become so popular — as an economic growth engine, a way to mitigate climate change, and as a powerful technology to help customers lower their energy costs. Solar industry growth and affordability Solar power is playing an increasingly important role in the transition to a world powered by renewable energy. In just the past decade alone, the solar industry has grown by a staggering 25% annually on average. Along with (and largely aided by) this meteoric growth, solar prices have fallen by a corresponding 43% — making the technology more affordable than ever before. In fact, a new solar installation came online every 39 seconds in the US by 2023. The Solar Energy Industries Association (SEIA) reports that there are over 5.1 million PV installations nationwide, which is enough installed capacity to power over 35.8 million homes. In strictly carbon terms, this is equivalent to planting almost 4 billion trees or decommissioning 58 coal-fired power plants. The chart below illustrates the correlation between the solar installed capacity and decreasing PV panel costs. It shows that the price of a solar installation has decreased by more than 40% over the past decade, while annual installations have grown during the same period of time. Annual solar installations in the US are accelerating as price decreases. Source: SEIA (https://www.seia.org/solar-industry-research-data) In addition to helping us move away from fossil fuel, SEIA also highlights how the solar industry continues to be a powerful engine for economic growth and job creation. Just in the US alone, the solar industry employed over a 280,000 people by the end of 2023, almost doubling over the past decade.  And the growth isn't stopping here. According to SEIA, the solar industry has set a goal to reach 30% of the US’s electricity generation by 2030.  Solar energy, power, and irradiance Solar panels generate energy by converting the sun’s photons (or light particles) into an electric current to power homes or businesses. We use the terms “irradiance” or “insolation” to refer to the power density of sunlight on a surface. In layperson’s terms, these values represent a roof’s solar potential. An irradiance map of Mt. Vernon. (Yep, George Washington's house.) We typically measure energy in kilowatt-hours (kWh), and power (the rate at which energy is produced) in kilowatts (kW). Energy = Power x Time 1 kWh = 1 kW x 1 hour In solar, we usually define the size of a PV installation in terms of its power output (in kW). And irradiance is measured in units of kWh per square meter per day (kWh/m2/d). The amount of irradiance hitting the Earth’s surface is often measured as the number of hours of “full-sun” (defined as 1 kW/m2 of solar energy). To review: Quantity Units Definition Power kW Rate of energy production/output Energy kWh Capacity to do work Irradiance kWh/m2/d Hours of full-sun for a square meter each day Solar resource of a rooftop We can estimate the solar potential of a rooftop using its area and local irradiance. The US Department of Energy’s National Renewable Energy Laboratory (NREL) published irradiance data in its report: Solar Radiation Data Manual for Flat-Plate and Concentrating Collectors. The irradiance map for Mt. Vernon, including solar access percentage and potential panel placement. It is fairly straightforward to calculate the solar potential of a rooftop using this data. For example, a South-facing residential roof face (seen above) receives an average irradiance of approximately 1,900 kWh/m2/year. (It's a little lower, at 1,538 here due to shading.) Dividing the annual irradiance value by the number of days in a year yields the average daily irradiance. Average Daily Irradiance = Annual Irradiance/days/year 5.2kWh/m2/day = 1,900kWh/m2/year ÷ 365 days/year To calculate the amount of solar energy available on a roof face, multiply its area by the average irradiance value: Rooftop Energy[kWh/day] = Irradiance[kWh/m2 x day] x Area[m2] If the rooftop has an area of approximately 150 square meters, the solar energy available is: 780kWh/day = (5.2kWh/m2 x day) x 150m2 The figure above also displays information on three additional variables related to the solar resource:  Solar Access Tilt and Orientation Factor (TOF) Total Solar Resource Factor (TSRF) Solar Access This is the ratio of the actual solar energy available — taking into account shading cast by objects in the environment — to the theoretical solar energy that would be available in the absence of shading:  Solar Access = Energy with shade : Energy without shade This is where we get the 1,538 kWh/m2/year for Mt. Vernon. For a deeper dive into what Solar Access means, be sure to review our guide on the Effects of Shading on PV Systems.  See our blog on the solar system we modeled for Mt. Vernon. Tilt and Orientation Factor (TOF) This is the ratio of the amount of solar energy a location actually receives to the amount it would receive if the roof were tilted and oriented optimally in a South-facing direction (when installed above the equator): TOF = Energy with actual tilt & orientation : Energy with optimal tilt & orientation Total Solar Resource Factor (TSRF) This is the percentage of the available solar resource that a location receives compared to what it would receive with optimal orientation and without shading. TSRF is equivalent to Solar Access multiplied by the Tilt and Orientation Factor: TSRF = Solar Access x TOF About Solar PV Education 101 This blog is part of Solar PV Education 101, a six-article series that serves as an introductory primer on the fundamentals of solar. We're updating each piece in late 2022, so be sure to check back often for the most recent information. Part 1: The Beginner’s Guide to Solar Energy (Updated 10/2/2024) Part 2: How a Photovoltaic System Produces Electricity (Updated 11/10/2022) Part 3: Reading Your Electricity Bill: A Beginner’s Guide (Updated 11/15/2022) Part 4: How to Size a PV System from an Electricity Bill (Updated 12/9/2022) Part 5: Shade Losses for PV Systems, and Techniques to Mitigate Them (Updated 12/12/2022) Part 6: The Basic Principles that Guide PV System Costs (Updated 12/13/2022) And be sure to download the PDF version to give to reps, installers, and even customers looking to learn more about the basics of solar. ### Solar panel wiring basics: How to wire solar panels Note: This post was updated in September, 2024. Table of contents Key Electrical Terms to Understand for Solar Panel Wiring Basic Concepts of Solar Panel Wiring (aka Stringing) Information You Need When Determining How to String Solar Panels Basic Rules for How to String Solar Panels Exploring Other Options Key Takeaways Solar panel wiring (also known as stringing), and how to wire solar panels together, is a fundamental topic for any solar installer. It’s important to understand how different stringing configurations impact the voltage, current, and power of a solar array so you can select an appropriate inverter for the array and make sure that the system will function effectively. The stakes are high. If the voltage of your array exceeds the inverter’s maximum, production will be limited by what the inverter can output (and depending on the extent, the inverter’s lifetime may be reduced). If the array voltage is too low for the inverter you’ve chosen, the system will also underproduce because the inverter will not operate until its “start voltage” has been reached. This can also happen if you fail to account for how the shade will affect system voltage throughout the day. Thankfully, modern solar software can manage this complexity for you. For example, Aurora's auto-stringing functionality in Sales Mode will seamlessly and effortlessly add string inverters automatically in under 10 seconds. Watch the video below to learn more. https://youtu.be/psuGsdJtiNc However, as a solar professional, it’s still important to have an understanding of the rules that guide string sizing. Solar panel wiring is a complicated topic and we won’t delve into all of the details in this article, but whether you’re new to the industry and just learning the principles of solar design, or looking for a refresher, we hope this primer provides a helpful overview of some of the key concepts. In this article, we'll review the basic principles of wiring systems with a string inverter and how to determine how many solar panels to have in a string. We also review different stringing options such as connecting solar panels in series and connecting solar panels in parallel. Key electrical terms for solar panel wiring In order to understand the rules of solar panel wiring, it is necessary to understand a few key electrical terms — particularly voltage, current, and power — and how they relate to each other.To understand these concepts, a helpful analogy is to think of electricity like water in a tank. To expand the analogy, having a higher water level is like having a higher voltage — there is more potential for something to happen (current or water flow), as illustrated below. What is voltage? Voltage, abbreviated as V and measured in volts, is defined as the difference in electrical charge between two points in a circuit. It is this difference in charge that causes electricity to flow. Voltage is a measure of potential energy, or the potential amount of energy that can be released. In a solar array, the voltage is affected by a number of factors. First is the amount of sunlight (irradiance) on the array. As you might assume, the more irradiance on the panels, the higher the voltage will be. Temperature also affects voltage. As the temperature increases, it reduces the amount of energy a panel produces (see our article on Temperature Coefficients for a more detailed discussion of this). On a cold sunny day, the voltage of a solar array may be much higher than normal, while on a very hot day, the voltage may be significantly reduced. What is an electrical current? Electric current (represented as “I” in equations) is defined as the rate at which the charge is flowing.  In our example above, the water flowing through the pipe out of the tank is comparable to the current in an electrical circuit. Electric current is measured in amps (short for amperes). What is electric power? Power (P) is the rate at which energy is transferred. It is equivalent to voltage times current (V*I = P) and is measured in Watts (W). In solar PV systems, an important function of the inverter — in addition to converting DC power from the solar array to AC power for use in the home and on the grid — is to maximize the power output of the array by varying the current and voltage. For a more technical explanation of how current, voltage, and power interact within the context of a solar PV system, check out our article on Maximum Power Point Tracking (MPPT).  In it, we discuss current-voltage (IV) curves (charts that show how the panel output current varies with panel output voltage), and power-voltage curves (which show how panel output power varies with panel output voltage). These curves offer insight into the voltage and current combination(s) at which power output is maximized. Click above to learn more about how software can help you design and sell solar systems. Basic concepts of solar panel wiring (aka stringing) To have a functional solar PV system, you need to wire the panels together to create an electrical circuit through which current will flow, and you also need to wire the panels to the inverter that will convert the DC power produced by the panels to AC power that can be used in your home and sent to the grid. In the solar industry. This is typically referred to as “stringing” and each series of panels connected together is referred to as a string. In this article, we’ll be focusing on string inverter (as opposed to microinverters). Each string inverter has a range of voltages at which it can operate. What wiring is needed for solar panels? When wiring solar panels, there are very specific types of cables and connectors that you’ll need to get the job done successfully. These include: PV Wire or Solar Cable: These are used to interconnect the solar panels which we have also referred to as stringing. MC4 Connectors: These connectors are standard when it comes to solar panel installation Wire Management Clips or Zip Ties: In order to keep wires secure and safe from potential damage, wire management clips and zip ties are typically used. Circuit Breakers or Fuses: These are used to provide overcurrent protection. The exact size and type depends on your system’s components and voltage. Charge Controller and Inverter Cables: These cables are necessary to connect the charge controller to the battery. It’s important to remember the types and size of wires needed depend heavily on the specific design of your system. Always refer to the system specifications or consult with a solar installation professional for the best results. Series vs. parallel stringing There are multiple ways to approach solar panel wiring. One of the key differences to understand is stringing solar panels in series versus stringing solar panels in parallel. These different stringing configurations have different effects on the electrical current and voltage in the circuit. How to wire solar panels in series Wiring solar panels in series involves connecting each panel to the next in a line (as illustrated in the diagram above). Just like a typical battery that you may be familiar with, solar panels have positive and negative terminals. When stringing in series, the wire from the positive terminal of one solar panel is connected to the negative terminal of the next panel and so on. When stringing panels in series, each additional panel adds to the total voltage (V) of the string but the current (I) in the string remains the same. One drawback to stringing in series is that a shaded panel can reduce the current through the entire string. Because the current remains the same through the entire string, the current is reduced to that of the panel with the lowest current. (Note: In practice, most solar panels have bypass diodes that allow current to flow around a shaded panel.) How to wire solar panels in parallel Stringing solar panels in parallel (shown in the diagram above) is a bit more complicated. Rather than connecting the positive terminal of one panel to the negative terminal of the next, when stringing in parallel, the positive terminals of all the panels on the string are connected to one wire and the negative terminals are all connected to another wire. When stringing panels in parallel, each additional panel increases the current (amperage) of the circuit, however, the voltage of the circuit remains the same (equivalent to the voltage of each panel). Because of this, a benefit of stringing in parallel is that if one panel is heavily shaded, the rest of the panels can operate normally and the current of the entire string will not be reduced. Sequence of operations: Information you need when determining how to string solar panels There are several important pieces of information about your inverter and solar panels that you need before you can determine how to string your solar array. Inverter information You’ll need to understand the following inverter specifications (these can be found in the manufacturer datasheet for the product): Maximum DC input voltage (Vinput, max): the maximum voltage the inverter can receive Minimum or “Start” Voltage (Vinput, min): the voltage level necessary for the inverter to operate Maximum Input Current: how much energy the inverter can handle before breaking How many Maximum Power Point Trackers (MPPTs) does it have? What are MPPTs?  As noted above, a function of inverters is to maximize power output as the environmental conditions on the panels vary. They do this through Maximum Power Point Trackers (MPPTs) which identify the current and voltage at which power is maximized.  However, for a given MPPT, the conditions on the panels must be relatively consistent or efficiency will be reduced (for instance, differences in shade levels or the orientation of the panels).  It is also important to note that, if the inverter has multiple MPPTs then strings of panels with different conditions can be connected to a separate MPPT. Solar panel information In addition to the above information about your selected inverter, you’ll also need the following data on your selected panels: Open circuit voltage (Voc): the maximum voltage that panel can produce in its no-load condition Short circuit current (Isc): the current running through the cell when the voltage is at zero (although we won’t delve into current calculations in this article) An important thing to understand about these values is that they are based on the module’s performance in what is called Standard Test Conditions (STC).  STC includes an irradiance of 1000W per square meter and 25 degrees Celsius (~77 degrees F). These specific lab conditions provide consistency in testing but the real-world conditions a PV system experiences may be very different. As a result, the actual current and voltage of the panels may vary significantly from these values.  You’ll need to adjust your calculations based on the expected minimum and maximum temperatures where the panels will be installed to ensure that your string lengths are appropriate for the conditions the PV system will encounter, as we’ll discuss below. Basic rules for how to wire solar panels 1. Ensure the minimum and maximum voltage are within the inverter range Do not allow the strings you are connecting to the inverter to exceed the inverter’s maximum input voltage or maximum current, or to fall below its minimum/start voltage. Ensure that the maximum voltage complies with code requirements in the area where you are designing.  In the U.S., the National Electrical Code caps the maximum allowable voltage at 600V for most residential systems. In Europe, higher voltages are allowed. Pro Tip: Don’t use STC values alone to determine voltage range We know that voltage is additive in series strings while current is additive in parallel strings. As such, you might intuitively assume that you can determine the voltage of our proposed PV system design and whether it falls within the recommended range for the inverter by multiplying the voltage of the panels by the number in a series string. You might also assume that you could determine the current of the system by adding the current of each parallel string (which would be equal to the current of the panels multiplied by the number in the parallel string). However, as we discussed above, since STC values reflect the modules’ performance under very specific conditions, the actual voltage of the panels in real-world conditions may be quite different.  Thus the simplified calculations taken from STC values only give you an initial rough estimate; you must account for how the voltage of the system will change depending on the temperatures it may experience in the area where it is installed. At colder temperatures, the voltage of the system may be much higher; at higher temperatures, it may be much lower. To ensure that the temperature-adjusted string voltage is within the input voltage window of the inverter it will require a more complicated formula, like the ones below: If these equations look a bit like gibberish, don’t worry, Aurora solar design software automatically performs these calculations and alerts you as you are designing if your string lengths are too long or too short given the expected temperatures at the site. (For more information on stringing in Aurora, see this help center article.) Aurora also performs a variety of other validations to ensure that the system will follow the proper sequence of operations for solar and not violate codes or equipment specifications — this can prevent costly performance issues. An example of underperforming PV systems For a real-world example of why it is so important to accurately account for how environmental conditions will impact the voltage of your PV system, read our analysis of an underperforming system in Cathedral City, California. In that case, a solar designer’s failure to account for the presence of shade resulted in the system frequently falling below the inverter’s start voltage and therefore producing significantly less energy than forecasted. 2. Ensure strings have similar conditions — or connect strings with different conditions to different MPPT ports Once you’ve determined that your strings are acceptable lengths for the inverter specifications, another key consideration is that the strings have the same conditions (e.g. same azimuth/orientation, same tilt, same irradiance) if they are connected to the same inverter MPPT. Mismatches in the conditions on the strings will reduce the efficiency and power output of your solar design. For a discussion of why mismatches in shading, orientation, or azimuth result in lost power output see our Guide to PV System Losses. Click above to download our full guide to PV system losses. If you are designing for a site where it’s necessary to have panels on different roof faces, or some areas of the array will get more shade than others, you can ensure that the panels with different conditions are separated into their own strings, and then connect those strings to different MPPTs of the inverter (provided your chosen inverter has more than one MPPT).  This will allow the inverter to ensure each string operates at the point where it produces the maximum power. 3. Advanced considerations to optimize your design The above rules will ensure that your stringing configuration will comply with the specifications of your inverter and that the energy production of the system won’t be negatively affected by mismatches in the conditions on the panels. However, there are additional factors that a solar designer can consider to arrive at the optimal design (that is, the design that maximizes energy production while minimizing cost). These factors include inverter clipping, the use of module-level power electronics (MLPE) — devices which include microinverters and DC optimizers, and design efficiency provided by software tools. Inverter clipping Sometimes it may make sense to oversize the solar array that you are connecting to the inverter leading to a theoretical maximum voltage that is slightly higher than the inverter max. This may allow your system to produce more energy (because there are more panels) when it is below its maximum voltage, in exchange for reduced (“clipped”) production during the times when the DC voltage of the array exceeds the inverter’s maximum.  If the production gains exceed the production lost to inverter clipping, then you can produce more power without paying for an additional inverter or one with a higher voltage rating. Of course, this decision should be made with care and a clear understanding of how much production will be clipped compared to how much additional production will be gained at other times.  In its system loss diagram, Aurora indicates how much energy will be lost to clipping so that you can make an informed decision about whether this makes sense. For a detailed explanation of inverter clipping and when a system with inverter clipping makes sense, see our blog article on the subject. Microinverters String inverters are not the only inverter option. Microinverters, which are inverters that are attached to each individual panel (or a couple), allow each panel to operate at its maximum power point regardless of the conditions on other panels. In this arrangement, one need not worry about ensuring panels on the same string have the same conditions. Microinverters can also make it easier to add more panels in the future.  Want to learn more about the basics of a solar install? Click the image to download our Solar for Homeowners kit. Explore a few different options to find the best one As you can see, there are many considerations when it comes to stringing your panels and finding the inverter and stringing configuration that is best for the customer.  You may not arrive at the optimal design the first time around so it can be helpful to evaluate a few different options. In order for this to be efficient, however, you’ll need a process where you can evaluate multiple designs quickly. This is where solar software, like Aurora, can be particularly valuable. Let solar software do the stringing for you Finally, technology like Aurora’s autostringing functionality in Sales Mode can do the stringing for you! It will take into account the considerations discussed here and present you with an ideal stringing configuration. Schedule a quick, personalized demo to see how software can help you design your solar systems. Key takeaways: You can wire solar panels in a series or parallel — which is better depends on the specific situation. In general, when there are potential shading issues, parallel is the better option. Don’t forget the essential info you’ll need: Maximum DC input voltage Start voltage Maximum input current Number of MPPTs Open circuit voltage Short circuit current We don’t recommend using basic STCs to calculate the ideal inverter range, as it can lead to underperforming systems. Make sure strings with similar conditions are connected to the same MPPT ports (or maintain similar conditions for all strings). Consider inverter clipping and microinverters as alternative options. Understanding the principles of solar panel wiring lets you ensure optimal designs for your solar customers. To learn more about how solar works, how to size a solar system, how to mitigate shading losses, and more, check out PV Education 101: A Guide for Solar Installation Professionals. Schedule a demo to see how software can help you design your solar systems. FAQs Here are a handful of quick answers to frequently asked questions about solar panel wiring basics.  What wiring is required for solar panels? Solar panels require wiring that is protected for outdoor use and rated to handle the system’s amperage. Most modern solar panel installations use single-conductor Photovoltaic (PV) wire, between 10 and 12 gauge AWG. Wiring is required to connect the solar panels to the charge controller, inverter, and battery (in an off-grid system).  Is it better to wire solar panels in series or parallel? In terms of power production, it is better to wire solar panels in a parallel circuit rather than a series. Parallel solar wiring allows for more independent power production between the panels but also increases the system’s upfront costs for materials and installation. To maximize electricity production without exceeding inverter voltage ratings, some solar energy systems use a combination of series and parallel wiring connections. Technology such as solar optimizers and microinverters can also help maximize system efficiency.  How many solar panels can I connect to my inverter? The number of solar panels you can connect to your inverter is identified by its wattage rating. For example, if you have a 5,000 W inverter, you can connect approximately 5,000 watts (or 5 kW) of solar panels. Using 300 W solar panels, you could then connect roughly 17 solar panels (5000 W / 300 W per panel).  Can I connect solar panels directly to a battery? Although the answer is technically yes, you should never connect a solar panel directly to a battery. As solar power is generated at various intensities throughout the day, charge controllers (or regulators) modify the energy so that it can be efficiently stored in the battery. Using a charge controller between the solar panels and storage bank maximizes the system's production and protects the battery from overcharging, damages, and malfunctions.   Can I use solar panels and an inverter without a battery? Yes, as battery technology improves, many homeowners are considering battery storage as an addition to their solar system. But, traditionally, most grid-connected solar systems didn’t have battery storage. While it is impossible to run an off-grid photovoltaic (PV) energy system without battery storage, professionally permitted and installed solar panels and inverters safely produce solar power that is distributed throughout a home and fed into the utility electrical grid.  How can solar panel be part of a whole home electrification solution? Solar panels are an important part of whole home electrification projects. They can help reduce bills and reliance on the grid, ultimately making electrification an even better, less expensive option. Check out the free Guide to Whole Home Electrification to learn more. Click above to get the free whole home electrification guide. ### How does a photovoltaic (PV) system produce electricity? Note: This blog was originally posted in 2022, it was updated in September, 2024. As a solar professional, it’s important to be able to explain the process of how a solar system produces electricity. This process can be mysterious and misconceptions abound among those unfamiliar with solar energy — like potential new customers. In this article, we get back to basics with an overview of how solar installations provide electricity and how the process works for the customer. Let’s start with the foundations of how solar energy is produced and then we’ll get into the specifics of PV systems.  Learn more about selling solar with the Solar Sales Toolkit. The basics of a solar photovoltaic system Solar systems are essentially any combination of solar panels, the hardware needed to help the energy flow through the panels, the hardware needed to keep the system on the roof, and inverters, which change the direct current (DC) electricity generated by the panels, to alternating current (AC). How does solar energy work in a photovoltaic system? Solar panels convert the energy of photons (light particles) into electricity (as we discuss in The Beginner’s Guide to Solar Energy). This process is called the photovoltaic effect.  When a photon hits a photovoltaic (PV) device, its energy is transferred from the photon to the local electrons in the material. These excited electrons begin to flow, producing an electric current. Solar cells (within solar panels) produce direct current (DC) electricity, which is typically converted to alternating current (AC) electricity by an inverter. This allows it to be sent back to the electric grid, which operates with AC electricity, as well as used to power appliances in the customer’s home (or commercial building, in the case of commercial solar installations).  That’s the in-depth explanation. In summary, the process of how PV panels works involves three primary steps: Solar cells within solar panels absorb light from the sun, which causes an electric current to begin flowing. An inverter converts DC electricity to AC electricity. This electricity is used to supply current energy demands in the customer’s building and excess electricity beyond what the customer can use is exported to the grid (or to battery storage). What happens with the energy a PV system produces? Most solar customers in the U.S. have grid-connected solar installations. Because they are connected to the electric grid, these customers have the option of buying additional utility power if their solar installations aren’t generating enough energy — like on rainy days or when the sun goes down.  It also means that whenever their PV system produces more power than they need, that excess energy can be sent to the grid for other utility customers to use. And thanks to different state-level incentives — like net metering and feed-in tariffs — it’s often possible to monetize some of this surplus solar power and save even more money. Net energy metering Under state-level net metering programs, utility customers can feed unused solar power into the grid in exchange for credits they can use to offset the cost of future utility bills. Net metering has played a significant role in making solar energy cost-effective. However, around the country, we are beginning to see some changes in how utility companies implement net metering. Nowhere is this more obvious than in California with NEM 3. Quite often, these changes attempt reduce the long-term value that solar customers receive from their PV installations. (Don’t take this sitting down, see what you can do.) Feed-in tariffs Feed-in tariffs are another way of compensating solar customers for the electricity they send to the grid. Under most state-level feed-in tariff programs, utility customers receive cash payments instead of credits for any unused solar power they feed into the grid. What are the parts of a Photovoltaic system? At its most basic, a PV system contains two types of components: Solar Modules: Solar modules contain PV cells that convert sunlight into electricity. Solar Inverter: An inverter converts DC electricity to AC. It can also perform other functions that are beneficial to the electricity grid (see our article on smart inverters, which are now required in California). Diagram of a simple PV system. BOS components It is common practice to refer to the remaining parts of a PV system (besides the modules) as balance of system (BOS) components. Examples of BOS components include: Inverters Disconnects Racking Wiring It’s also worth noting that many customers are now choosing to install their PV systems with on-site solar batteries for emergency backup power — and even for self-consumption. Electric vehicle (EV) charging is also increasingly common — especially among homeowners who invest in rooftop solar. Of course, this is just a basic overview of the parts of a solar installation and how they fit together. Explore some of our related articles for a deeper dive into the ways that solar panels and inverters can be wired together (i.e. stringing). We also have resources on some of the most popular alternatives to traditional solar inverters, including module-level power electronics (MLPE).  What factors impact solar photovoltaic system efficiency Even under laboratory conditions, no solar panel is 100% efficient at converting sunlight into clean electricity, of course. These efficiency losses become even more pronounced once those panels are installed on a user’s actual roof. Some of the main environmental factors that can negatively impact solar panel efficiency include: Temperature: Solar panel efficiency is inversely proportional to temperature. This means that the hotter it becomes outside, the less solar efficient solar modules become (with all other factors held equal). Soiling: Material that accumulates on the surface of PV panels can block sunlight from reaching the solar cells, reducing the amount of power they can generate. These energy losses are highly variable and depend both on the type of soiling (i.e. dust, pollen, or snow) and how frequently the panels are cleaned and maintained. Soiling, such as dust, on PV modules reduces power output. Shading: Shading, as you might have guessed, is what happens when surrounding trees, buildings, terrain, and other objects partially or fully block sunlight from hitting a PV system. The effect of shading on solar power output is highly variable.  Wiring and connections: Resistance in the electrical connections of a solar installation typically results in energy losses of a few percent. Mismatching: Due to manufacturing variations, modules of the same type can have slightly different electrical characteristics. This mismatch between modules can lead to performance losses. Inverter efficiency: Converting DC into AC via an inverter is typically around 96-97% efficient. Solar inverters typically enjoy improved conversion efficiency rates when the DC input power is high. However, conversion rates take a big hit when the input is much less than the inverter’s rated power. Age: All solar panels degrade with time — producing less energy the older they get. This decrease in performance is typically factored into the PV module manufacturer’s linear 25-year warranty, with most degradation rates hovering around 0.5% per year. For a deeper dive into solar panel efficiency losses, see our PV System Losses Series. Term Typical Value Temperature -0.5%/°C above 25°C Inverter Efficiency 96.5% Mismatch 98% Wiring/Connections 98% Soiling 95% (highly variable) Age -0.5%/year Shading Highly environment-dependent Typical solar efficiency values for different PV system loss types.  System derate factor The above variables are combined in a coefficient called the “system derate factor” to represent the overall losses of a solar installation. For instance, PVWatts, an NREL-supported PV system energy production calculator, uses a default system derate factor of 86%. However, depending on the PV system design or environmental conditions, this value can be higher or lower. Advanced solar design software like Aurora can ensure that you accurately determine PV system losses and how much energy your customer’s solar installation will actually produce. Solar panel (module) efficiency denotes what portion of irradiance a module converts into electricity under standard test conditions (STC; irradiance of 1000W/m2, ambient temperature of 25°C). As a general rule of thumb, you can estimate how efficient a PV system is at converting solar irradiance into electricity (under STC) using the following formula: Overall System Efficiency = Module Efficiency x Derate Factor It's important to note that these are merely back-of-the-envelope calculations. To get a comprehensive energy production analysis, you need dedicated tools that can incorporate all of a photovoltaic system’s environmental, mechanical, and electrical characteristics. To learn more about the software tools you need, click above to download the Big Book of Solar Software Must-Haves. About Solar PV Education 101 This blog is part of Solar PV Education 101, a six-article series that serves as an introductory primer on the fundamentals of solar. To get the whole series in an easy-to-share package,   Click above to download PV Education 101. Our goal is to keep these articles as up to date as possible, so be sure to check back often for the most recent information. If you see something in this series that needs updating, let us know! Part 1: The beginner’s guide to solar energy (Updated 11/9/2022)Part 2: How does a photovoltaic system produce electricity (Updated 9/20/2024)Part 3: Reading your electricity bill: a beginner’s guide (Updated 11/15/2022)Part 4: How to size a PV system from an electricity bill (Updated 12/9/2022)Part 5: Shade losses for PV systems, and techniques to mitigate them (Updated 12/12/2022)Part 6: The basic principles that guide PV system costs (Updated 12/13/2022) ### Put solar on it: Beetlejuice, Beetlejuice, Beetlej... There are almost too many ways to open a blog about Beetlejuice Beetlejuice. It can be enough to keep the post in the "drafts" folder for weeks. So, we're just going to play it straight: We put solar on Miss Shannon's School for Girls from Beetlejuice. Just one of the images from our Instagram post. Click the image for more. If it was a real solar project, we likely would have pitched them on a new roof, too. Maybe a battery backup system, since the school — which in real life is a century-old Masonic Lodge — is located in rural Vermont? With the improvements in heat pump technology, the school could likely benefit from some whole home electrification solutions, too. Want to learn more about whole home electrification? Click above to get the free whole home electrification guide. For now, we'll start with solar only. But we'll be checking back with the school-owners in the future to see about other needs. Let's get to the installation. It's almost as if the school was built with solar in mind... Luckily, the building axis is North-South (for real), so we have two full roof faces to put panels on. Again, we would do a structural analysis on that rusty metal roof, and show the school's leadership the benefits of replacing it at the same time. Either way, the installation itself is a beauty. All told, we have a 53.35 kW system made up of 127 panels. It'll produce 52.8 MWh of electricity per year. "Nice ... model!"- Beetlejuice Estimates vary, of course, but the average electricity use for a 4,000+ square foot house is 42.5 kWh per day. Since the school is old, and likely drafty, let's call it 100 kWh. That's 36.5 MWh per year, without electrification. So, the owners could likely install heat pumps and still almost zero out their electric bill. Want to learn more about the install, including CO2 emissions averted, oil saved, and more? Check out our Instagram for all the details. (Special kudos to Aurora's own Dale Houghton, Jason Miller, and Sheila McMenamin for the design, images, and idea.) ### How to pay for solar: Solar financing options explained Sunlight is free, but solar systems still cost money.  Thankfully, though, the price of going solar has plummeted over the past decade — even with higher interest rates recently — and there are many programs, incentives, and rebates available to drive down total costs even further.  To pay the remaining balance for longterm renewable energy today, home and business owners can pay cash, look at third-party ownership (TPO) options, or explore a variety of other solar financing products.  How does solar financing work? Each solar financing option has unique pros and cons, so you need to evaluate each option you have available to meet your energy goals and maximize your return on investment before entering into any contract. The three main options that we'll discuss here are: Third-party ownership Solar loans Cash Third-party ownership (TPO)  As you may have guessed, with third-party ownership a solar system is owned, installed, and maintained by a third party. Homeowners enter into a power purchasing agreement (PPA) or can lease theequipment from the third party. Under a lease, the third party rents out the equipment each month to the homeowners. With a PPA, instead of renting the equipment, homeowners purchase the electricity produced by the panels at a discounted price. The benefits of TPO are pretty clear — since home and property owners do not purchase a PV system, there is no upfront cost, and no dealing with high interest rates. But the benefits don't end with immediate savings. There's also no maintenance or management costs — the TPO provider (the owner) handles these. It's also fully insured and protected as part of the homeowner’s agreement with a TPO provider.  Today, virtual power purchase agreements are another way to pay for solar where the green energy is purchased from off-site panels. Unlike solar leases or traditional PPAs, virtual PPAs do not require home and business owners to host panels on their property.  Click the image to get the free TPO Cheat Sheet. The bottom line TPO is often the easiest way for home and business owners to go solar, since a third party handles all the installation and system maintenance. And while solar loans and cash payments are typically structured to create long-term savings, TPO options may be able to deliver immediate savings on electricity bills with lower rates locked in contractually — making them cash-flow positive from Day 1.  The key for installers is having as many TPO options as possible. With more options in your toolkit, youcan work with each homeowner to meet their specific needs. Learn more about Aurora's TPO partnerships and options. More TPO options = more sales. Click the image to learn more. Solar loans It can be difficult for property owners to pay for 25 years of electricity in one transaction, so solar financing makes a new system installation more accessible without a significant amount of cash upfront. Loans are typically set over 10 to 20 years with monthly payments sent to banks, lenders, or solar financing companies — and are one of the easiest ways to pay for solar.  No matter where a solar loan originates, PV system owners slowly pay off the total cost of their system, plus interest. Solar loans often use fixed interest rates, and while many financing options span for decades, short-term loans can also be arranged. Homeowners can explore their solar financing options independently or together with their PV installer. Alongside personal loans and dedicated solar panel financing options in the marketplace, PV systems may also qualify for home equity loans and home equity lines of credit.  The bottom line By financing a PV system with a solar loan, homeowners with good credit can instantly add value to their property and reap the benefits of solar energy ownership. Even with higher interest rates these days, there are still some loans available with little or no money down. Many loan options also still do feature relatively low-fixed interest payments, and the federal Investment Tax Credit (ITC) and local incentives can generally still be applied (see below for more information on incentives).  Cash payment And finally, solar panels can also be paid for with cold, hard cash. Without ongoing monthly payments, a cash deal for solar panels is almost always the quickest way to reach a break-even point where the price of the system equals the costs of utility electricity avoided.  Like in a solar loan, those paying with cash purchase their system outright and own all of the electricity it produces. With this, cash payers can qualify for a variety of solar incentives and rebates to reduce the total initial cost of a system.  The bottom line While not always realistic for home and business owners, cash payments for PV systems are often the best way to maximize long-term energy savings. Especially for those with enough tax liability to take full advantage of solar financial incentives and rebates, with cash payments, solar systems can pay for themselves more quickly without any ongoing loan or lease expenses. Other solar financing considerations When comparing financing options, potential solar customers must understand solar compensation. Knowing how a solar energy system will “pay for itself” can help buyers eliminate any guessing games or uncertainty within a sales conversation.   So before signing with any company, familiarize yourself with ​​local net energy metering (NEM), feed-in tariffs (FITs), and time of use (TOU) policies and ask questions based on your specific circumstances. Speaking of, let's look at another important piece of the puzzle: incentives. State-by-state solar financing options & incentives There are many incentives available for home and business owners looking to go solar.   Nationally, most new installations qualify for the federal solar Investment Tax Credit. It was recently extended through 2032 as part of the Inflation Reduction Act (IRA) and provides homeowners a 30% tax credit for the cost of their system.  In areas outside of major cities, the Rural Energy for America Program can also help many people go solar across the US.   Another important factor to consider is individual state net metering (NEM) policies. A vast majority of states (as well as Washington DC, the US Virgin Islands, Puerto Rio, and American Samoa) have mandatory net metering policies in place, which can affect the ROI on solar panel systems and battery storage significantly. Of course, the net metering policy everyone is talking about is California’s NEM 3.0. It’s too complex to explain in a couple sentences, so if you're a California resident make sure to ask your installer about the details. Down to the state, city, county, and utility levels, there are thousands of programs designed to make solar energy installations and other energy efficiency improvements more affordable. To help you find more information in your area, here are a few helpful links for states across America. The Database of State Incentives for Renewables & Efficiency is a great resource for finding potential savings where you live. Final thoughts  Whether paying cash, or exploring solar system financing options, take the time to consider the various choices and explore every available program, incentive, and rebate available to drive down upfront and ongoing energy costs. That means when you're choosing an installer, make sure they understand your expectations, explain everything completely, and offer you the purchasing options that work best for your situation.   Featured image by Andre Taissin. ### Station A partners with Aurora Solar’s HelioScope to help developers model and deploy projects at scale From modeling to action Station A and Aurora Solar’s HelioScope are partnering to help clean energy developers model and build their projects with greater efficiency and lower cost. As the leading design and sales software for commercial solar, HelioScope has doubled down on its ability to accurately model projects with speed and ease. Today, developers can use HelioScope to model any project type (rooftop, ground mount, carport) with production estimates within 1% of PVsyst. Moreover, the technology behind HelioScope has been validated by independent bodies like the National Renewable Energy Laboratory (NREL) and the California Energy Commission (CEC) — which results in designs that you can trust. Once developers have the project modeled and a contract signed, it’s time to build the project! That’s where Station A comes in. As one of the leading marketplaces for clean energy deployment, Station A enables developers to find the best EPC for their project out of its network of 3,000+ active provider accounts. Similar to how HelioScope tunes a design project specs, Station A will publish a digital RFP on its marketplace that provides all the project details. EPCs on Station A’s platform can then view the RFP and put their best foot forward to try and win the deal. The goal of Station A’s marketplace is not to be a “race to the bottom” on price, but, rather, a marketplace that considers holistic factors of each EPC — including safety records, previous project track records, and deployment timelines. To date, Station A has listed over 190 MW of clean energy projects in all major US geographies. Most notably, the average bid spread (the difference between the low and high bids) on Station A’s marketplace is roughly 50-60%, representing hundreds of thousands in potential project cost savings. Get started with one or many sites If you are a developer who is not using HelioScope yet, you can give it a try with a free 14-day trial and compare it to your existing design software on accuracy, speed, and ease-of-use. And once you have ready-to-build projects that need EPCs or subcontractors, feel free to reach out to the Station A team here to vet your project to list on the marketplace. About Station A and HelioScope Station A is the climate action platform for commercial buildings. We've created the easiest and most cost-effective way to analyze and procure clean energy. Our evaluation tools leverage an AI-powered building evaluation engine that identifies onsite solar, community solar, and EV charging potential based on industry-leading data. Our marketplace gives you comprehensive, price-competitive proposals from the leading clean energy developers in the nation and accommodates various technologies including solar PV, battery storage, and EV charging. To learn more, visit HelioScope's site or sign up for a free trial to try it yourself. ### Solar farming: cultivating sustainability with agrivoltaics To achieve net-zero emissions by 2050, 10.4 million acres of space will be needed to boost solar production to an incredible 45% of our nation’s energy supply, according to the U.S. Department of Energy (DOE). Models developed by the American Farmland Trust (AFT) found that 83% of this new solar development will be on agricultural land, with nearly half of it taking place on “nationally significant” farmland, characterized for its high productivity, versatility, and resiliency.  While traditional solar farms are sometimes seen as a threat to farming landscapes, agrivoltaics — the dual use of land for solar energy production and agriculture — offers a promising solution for both to peacefully coexist. Agrivoltaics optimizes land use and sustainability, benefiting farmers, solar developers, and ecosystems alike.  This blog will cover the advantages of agrivoltaics, the various types of agrivoltaic systems, prominent projects across the U.S., information surrounding available funding opportunities, and how to design an agrivoltaic system.  Integrating solar energy with agriculture. That's the dream.(Photo by Gunnar Ridderström.) Agrivoltaics: integrating solar energy with agriculture  Agrivoltaics is the practice of using the same land for both solar energy production and agricultural activities, such as crop cultivation, animal grazing, and growing pollinator-friendly plants. This innovative dual-use approach helps resolve land-use conflicts by allowing solar panels and farming to exist together harmoniously.  Traditional solar development views land with vegetation as a hindrance that could shade the panels, necessitating regular mowing or the use of chemical treatments to keep the grass at bay. Instead, agrivoltaics opportunistically raises the solar panels to have vegetation underneath, resulting in lower maintenance costs and improved panel efficiency to maximize clean energy production.  Typically, agrivoltaic systems are smaller than commercial solar farms, with 70% having a capacity of less than 5 MW, although sizes can range from less than 0.01 MW to as large as 660 MW. For a detailed overview of agrivoltaic projects across the United States, visit this map by NREL’s InSPIRE Research, which includes over 500 agrivoltaic sites.  Why choose agrivoltaics? Agrivoltaics offers a practical solution for accelerating renewable energy development while minimizing land-use conflicts. Agrivoltaics also comes with a wide range of benefits for the solar developers, farmers, and the surrounding ecosystem.  For instance, agrivoltaics installations give partial shade for plants, animals, and farm workers, protecting them from extreme weather. This ideal microclimate boosts crop yields and reduces the amount of irrigation required, saving farmers money. In return, the plants can help cool the solar panels — enhancing efficiency and energy output.  Agrivoltaics also makes productive use of the space underneath panels and between the rows that would have otherwise gone unused. Farmers can earn extra income with solar grazing, where their sheep and goats help maintain solar sites by preventing overgrowth and shading around the panels. This is in addition to the attractive energy leases they receive for their land.  Here are some key advantages of agrivoltaics, highlighting the mutually beneficial relationship between solar panels and vegetation:  Enhanced biodiversity: Supports pollinator habitats and provides excellent habitat for plants and animals.  Economic benefits for farmers: Energy leases create additional revenue streams for farmers, offering a stable income of thousands of dollars per acre annually.  Enhanced solar production: Hot temperatures can reduce solar panel efficiency by 10-25%, especially above 95°F. With agrivoltaics, the native vegetation underneath the panels creates a cooler microclimate to produce higher efficiencies and more clean energy. Increased crop yields: The shade from solar panels allows plants to maintain photosynthesis during hot midday hours, improving crop yields.  Reduced water usage: The partial shade from solar panels lowers soil temperature, reducing evaporation, and potentially cutting irrigation needs by up to 50%.  Crop protection: Agrivoltaic systems shield crops from severe weather, including extreme heat, drought, hail, and high winds. Improved soil health: Agrivoltaics help rejuvenate the soil by retaining more moisture, reducing erosion, and increasing food production.  For more benefits (and to see some adorable pictures of sheep and goats), check out our other related blog, “Agrivoltaics: The GOAT of solar projects?”.  This is just a sample of what you'll find in the blog above. (“Solar Grazing with Happy Sheep” by AgriSolar Clearinghouse.) Types of agrivoltaic systems As of 2024, most agrivoltaic systems feature grasses — often native — or pollinator-friendly vegetation beneath the solar panels. Sheep grazing is also common, occurring at over a quarter of all agrivoltaic sites to help maintain the grounds, while less than 5% include crops like fruits and vegetables. Below are the three main types of agrivoltaic systems: Pollinator-friendly systems  These solar farms are planted with native grasses and pollinator plants. A significant portion of these sites, 84%, are located in the Midwest, with 52% in Minnesota alone. Grazing systems Livestock, mainly sheep, graze under the solar panels, providing farmers with additional income while reducing maintenance costs for solar companies. Cattle can also graze under specially designed solar arrays, though this requires additional engineering to accommodate their large size.  Crop production systems These agrivoltaic systems involve growing specialty crops, like blueberries, jalapeno peppers, and cherry tomatoes, under the solar arrays. This type of agrivoltaic system is the least common and is mostly designated for research.  The only limit to the crops you can grow is your imagination.(“AgriSolar crops at University of Massachusetts South Deerfield” by AgriSolar Clearinghouse.) Challenges and considerations  Despite the overwhelming benefits of agrivoltaics, there are also some challenges to consider.  For example, the solar panels' height and configuration must be customized to reduce shading and crop yield impact and accommodate large livestock and farming equipment like tractors. Solar panels must be elevated at least six feet above the ground, compared to the usual three feet, necessitating deeper holes for the support poles and stronger support braces to withstand high winds. This extra engineering drives up the initial costs of agrivoltaic systems.  Additionally, logistical issues such as ensuring adequate water supply and managing the transportation of animals between agrivoltaic sites require careful planning.  Community opposition can be another obstacle, as some residents may object to solar farms for aesthetic reasons like disrupting their natural landscape. However, surveys conducted in rural America revealed that 82% of respondents would be more inclined to support solar projects in their community if they included farming.  Land use and policy implications are also significant considerations. Solar developers often target prime farmland, which can increase land prices, making it more difficult for young farmers to access land. However, policy changes, like those in Colorado that offer tax exemptions and grants, can encourage agrivoltaic adoption, while other policies that classify solar sites as commercial properties could discourage its growth since farmers would lose their critical agricultural exemptions. Despite these challenges, the potential for increased revenue and sustainable land use makes agrivoltaics an attractive option for many. Interested in learning more about commercial solar? Click the image to see how software can help. Agrivoltaics in action: commercial sites and case studies Jack’s Solar Garden in Colorado Jack’s Solar Garden is a pioneering example of agrivoltaics, uniquely integrating pollinator plants, crops, and livestock grazing on a 5-acre community site in Boulder County, Colorado. This agrivoltaic site features approximately 3,200 solar panels with a generating capacity of 1.2 MW — enough to power 200 to 300 homes annually.  Jack's Solar Garden partnered with the U.S. Department of Energy's National Renewable Energy Laboratory (NREL), Colorado State University, and the University of Arizona to establish vegetative cover beneath the solar panels. At least 15 different crop varieties are grown at the site, including everything from salad greens to root vegetables. Accompanying research will be used to assess the impact of solar installations on agricultural production and environmental outcomes.  Aurora Solar plant by Enel Green Power in Minnesota  The 150 MW Aurora Solar plant, operated by Enel Green Power, is a utility-scale agrivoltaics project using sheep for vegetation management across 16 various solar installations. The sheep are used to manage the grounds and fertilize the native and pollinator-friendly vegetation. Enel Green Power has joined forces with NREL’s InSPIRE research project to study the benefits of flowering habitats for the ecosystem, such as local bees and birds, at the site’s low-growing meadows. BlueWave Solar’s blueberry farm in Maine  In 2021, BlueWave Solar launched a flagship agrivoltaics project on a 12-acre wild blueberry farm in Rockport, Maine — the state's first dual-use solar initiative. This 4.2 MW project features over 10,000 solar panels and was the largest agrivoltaic crop site in the U.S. as of 2022. Unlike most agrivoltaic sites, which primarily focus on grazing and pollinator-friendly vegetation, this site harvests blueberries. Specialty crops like blueberries have higher revenues, making them more economically feasible within a crop production agrivoltaic system.  BlueWave Solar's project aims to assess the technical and commercial viability of farming blueberries within an agrivoltaic system. One main focus will be determining whether raising the height of the panels from eight to ten feet will prove cost-effective in the long run. This project is also studying the soil quality, moisture content, and crop production to refine the photovoltaic design for future blueberry harvesting. Available funding for agrivoltaic projects  Agrivoltaic systems are still a developing technology that has yet to reach widespread adoption. However, there is growing interest in the public and private domain funding research and development to help commercialize this novel concept. Researchers continue to explore optimal designs for combining energy and food production, studying microclimate benefits like increased soil moisture, lower water demand, and better crop performance. In 2021, the U.S. Department of Agriculture (USDA) allocated $10 million for agrivoltaics research through its National Institute of Food and Agriculture (NIFA), followed by an additional $2.2 million in 2022 through the Partnerships for Climate-Smart Commodities. In 2022, the U.S. DOE’s Solar Energy Technologies Office (SETO) launched the Foundational Agrivoltaics Research for Megawatt Scale (FARMS) funding opportunity, dedicating $8 million to support projects investigating how to scale agrivoltaics to provide new economic opportunities to farmers, rural communities, and solar developers. Another federal program, the USDA’s Rural Energy for America Program (REAP), provides up to $1 million in grants for rural small businesses and agricultural producers installing renewable energy systems such as agrivoltaics.  Several state and local programs support agrivoltaics, notably New York and Massachusetts. The New York State Energy Research and Development Authority (NYSERDA) recently announced a $5 million grant to fund agrivoltaic projects in The Empire State. Another state program, the Solar Massachusetts Renewable Target (SMART), offers a $0.06/kWh incentive for agrivoltaic projects as an Agricultural Solar Tariff Generation Unit (ASTGU).   The only thing more exciting than agrivoltaics now is agrivoltaics in the future. (Photo by CHUTTERSNAP.) The future of agrivoltaics Potential growth areas for agrivoltaics include expansion into new regions and crop types, as well as integration with other renewable energy and sustainable agriculture technologies. Numerous agrivoltaic startups are also pushing the limits of agrivoltaic design. One revolutionary solar design includes vertical bifacial solar arrays, aiming to be more land-efficient and allow solar energy production to coexist more easily with traditional farming. These vertical arrays can capture more energy by producing power during peak demand times in the morning and evening. Although more expensive, they offer increased energy output and reduced maintenance due to less dust and snow accumulation. This vertical design is especially useful where land is expensive and space is limited. Another example of creative agrivoltaic design is insolagrin, which uses translucent solar modules with light transmission control to maximize crop growth. This system replaces traditional greenhouses and opens crop production to larger areas. An essential aspect of the solution includes a control system and tracker algorithm that maximizes both crop production and electricity generation. Design your agrivoltaic project with ease  As the U.S. pushes for net zero, agrivoltaics offer a viable solution, balancing the need for solar development with the preservation of vital farmland. This dual-use system provides numerous benefits, including enhanced biodiversity, economic advantages for farmers, increased solar efficiency, and improved crop yields. Supportive policies and ongoing innovation are essential to realize the full potential of agrivoltaics and create a sustainable and decarbonized future. For more information, schedule a free demo of Helioscope’s user-friendly solar platform to design your own agrivoltaic project and reap the rewards of a true solar farm. Featured photo by Francesco Gallarotti ### Resources for recruiting top solar talent NOTE: This blog was originally published in 2021. We updated it in September, 2024, to reflect the latest information. The solar industry employs more people than most other energy sectors — more than 360,000 people by the end of 2023, according to the Department of Energy. This growth is projected to continue — to reach President Biden’s goal of 100% clean energy by 2035, that number will have to grow to over 900,000.  While we know that solar offers meaningful career opportunities with good wages, studies like SEIA’s also show that the industry still has a sizable representation gap. Closing this gap is a worthwhile goal – it helps the public see that solar energy and other renewable power sources are attainable and desirable for anyone and everyone. In this blog, we’ll look the people behind solar businesses, and review the resources solar employers can use to recruit the best talent for their teams and ensure an inclusive work environment with plenty of advancement.  Click the image to get more insights into the solar market. How to find the best candidates for solar jobs According to a 2023 Interstate Renewable Energy Network (IREC) study, 97% of installers had difficulty finding qualified applicants, with 45% finding it “very difficult.” We should pause and consider not only the problem itself but also the reasons behind staffing issues before we look at solutions. Challenges in finding qualified solar job candidates “If you need more workers, hire more people.” That seems like a simple solution. But is it really that simple? Not always. Let’s talk about four challenges that persist in the recruitment process. As we dive into these specific roadblocks, we can understand why hiring in the solar industry can be more complex than initially seems. Competitive job market While the solar industry has been experiencing some uncertainty recently, companies continue entering the market and expanding their operations. This growth, while positive for the industry, has intensified competition for qualified candidates. Skilled professionals, particularly those with experience in solar technology, project management, or engineering, are highly sought after. Many of these individuals are already employed and convincing them to switch companies can be challenging. Additionally, the renewable energy sector competes with other industries, such as technology and construction, for talent, which makes finding and attracting top-tier candidates even more difficult. Employers must offer competitive salaries, benefits, and opportunities for growth to stand out in this crowded job market. Cultural fit Hiring someone with the right technical skills is important, but ensuring they are a good cultural fit for your company is equally crucial. The solar industry is often driven by a passion for sustainability and environmental stewardship. Candidates who do not share these values or who are not aligned with a company’s mission may struggle to integrate into the team, affecting morale and productivity. In fact, they may stay in a position for a short time and then be ready to move on at the first opportunity. Align the candidate with the culture that you seek to build or maintain. Additionally, solar companies often have unique workplace cultures that emphasize innovation, collaboration, and adaptability. Finding candidates who thrive in such environments and are genuinely motivated by the work can be challenging. Therefore, recruiters must carefully assess not only technical qualifications but also whether potential hires align with the company's ethos and values. Seasonal variability The demand for solar installations can be highly seasonal, particularly in regions with distinct weather patterns. This seasonality affects not just sales but also staffing needs. During peak installation seasons, companies may need to ramp up their workforce significantly, which can lead to a reliance on temporary or contract workers. However, finding qualified candidates willing to work on a seasonal basis can be challenging. Many job seekers are looking for stable, full-time employment, and the cyclical nature of the solar industry may not appeal to everyone. Additionally, there can be a lag in workforce availability during the off-season, making it difficult to maintain a consistent pipeline of skilled candidates ready to step in when demand surges. Retention Retaining qualified candidates is another significant challenge in the solar industry. High turnover rates can be costly and disruptive, leading to a loss of institutional knowledge and a need for continuous training and recruitment efforts. Several factors contribute to retention challenges, including the intense competition for skilled workers, who may be lured away by better offers from other companies or industries. Additionally, the physically demanding nature of some solar installation jobs can lead to burnout or career changes, particularly among field workers. Companies need to invest in employee engagement, offer clear career progression paths, and foster a supportive work environment to enhance retention rates. Exploring opportunities in the renewable energy job market The renewable energy sector as a whole is witnessing unprecedented growth as the world intensifies efforts to combat climate change and transition to sustainable energy sources. Among the various segments of this industry, solar energy stands out as a major player, offering a range of career opportunities for individuals passionate about contributing to a greener future. Consider some of the factors that make the solar market a great place for career advancement. Growing demand As countries around the world commit to transitioning from fossil fuels to renewable energy, the demand for skilled professionals in the solar industry is at an all-time high. According to the International Renewable Energy Agency (IRENA), renewable energy jobs worldwide reached 13.7 million at the end of 2022, with solar energy accounting for nearly 4.9 million of these jobs. This growing demand is not only a result of environmental considerations but also due to the economic benefits of solar energy. Solar power is now one of the cheapest sources of electricity in many parts of the world, making it a financially attractive option for both governments and private enterprises. Diverse roles The solar industry offers a wide range of career paths that cater to various skill sets and professional backgrounds. Engineering and Design: Engineers play a crucial role in the solar industry, from designing photovoltaic (PV) systems to developing new solar technologies. Electrical, mechanical, and civil engineers are all in high demand. These roles involve creating efficient, reliable, and cost-effective solar power systems that can be scaled to meet the energy needs of communities and businesses. Project Management: As solar projects grow in scale and complexity, the need for skilled project managers has also increased. These professionals oversee the planning, execution, and completion of solar installations, ensuring they are delivered on time, within budget, and according to quality standards. Research and Development (R&D): For those interested in innovation and technology, R&D roles offer the chance to work on cutting-edge advancements in solar energy. Researchers in this field focus on improving the efficiency of solar panels, developing new materials, and exploring novel applications of solar technology. Policy and Advocacy: As governments around the world set ambitious renewable energy targets, there is a growing need for professionals who understand the regulatory landscape and can advocate for policy change. Operations and Maintenance: As the number of solar installations increases, so does the demand for technicians and specialists who can maintain and optimize these systems. Future trends The renewable energy sector is dynamic, with technological advancements continuously shaping the landscape. Several emerging trends are creating new opportunities within the solar industry: Advanced Solar Panels: Innovations in solar panel technology, such as bifacial panels and perovskite solar cells that promise higher efficiency at lower costs, are opening up new avenues for research and development jobs. Energy Storage Solutions: One of the biggest challenges in renewable energy is storing power generated from intermittent sources like solar and wind. Advances in battery technology and energy storage systems are critical for the growth of the solar industry, as they allow for the storage of excess energy generated during peak production times for use when the sun isn't shining. Digitalization and Smart Grids: The integration of digital technology with solar power systems, including the use of artificial intelligence (AI) for predictive maintenance and smart grids for efficient energy distribution, is creating new roles in IT, software development, and data analysis. Offshore Wind and Hybrid Renewable Systems: The combination of solar with other renewable energy sources, such as offshore wind, is becoming increasingly popular. Hybrid systems that combine solar and wind power offer greater reliability and efficiency. Key locations for careers in solar energy When it comes to building a career in solar energy, location matters. Certain regions in the United States, such as California, Texas, and Massachusetts, have emerged as leaders in renewable energy investments and job creation. California, for example, is known for its robust solar market, thanks to its abundant sunshine, progressive state policies, and strong commitment to reducing carbon emissions. Texas, traditionally known for its oil and gas industry, has recently become a powerhouse in renewable energy, capitalizing on its vast land resources and favorable climate to build large-scale solar farms. Massachusetts, on the other hand, has made significant strides in renewable energy through a combination of state policies, public-private partnerships, and a focus on clean energy innovation, making it a hub for solar jobs in the Northeastern United States. In addition to these regional leaders, various states and municipalities across the country offer local incentives to attract renewable energy companies and talent. These incentives can take the form of tax breaks, grants, and subsidies designed to lower the cost of solar installations and make it more attractive for businesses to invest in solar projects. Click above to learn more about where the solar market is headed in the future. Why diversity matters for solar companies — and how you can advance it Clean energy represents the future. The industry advocates for supportive energy policies but also needs diversity advocates within the workplace.  This article digs into the U.S. Solar Industry Diversity Study’s findings to examine where the solar industry currently stands on diversity and what solar businesses can do to close representation gaps in their teams. Essential technical skills and experience for solar energy Professionals looking to succeed in the solar energy field need a specific set of technical skills and experience. One of the most fundamental areas of expertise is technical proficiency in solar panel installation and maintenance. This involves a deep understanding of photovoltaic (PV) systems, including how to properly install, configure, and maintain solar panels to ensure maximum energy production and efficiency. Additionally, professionals should be skilled in conducting energy efficiency assessments to identify opportunities for optimizing system performance. Another critical skill in the solar energy industry is data analysis. With the increasing reliance on digital tools and smart technologies, the ability to analyze energy consumption data and model energy systems is becoming more important. Professionals in this field must be adept at using software tools and technologies to monitor and optimize the performance of solar installations. Project management experience is also highly valued in the solar energy sector. Managing renewable energy projects requires a unique blend of technical knowledge and organizational skills. Professionals need to be adept at budgeting, scheduling, and ensuring compliance with regulatory standards throughout the project’s duration. Educational routes and certification options How do potential employees acquire the skills they need to be successful in the solar industry? Here are a few avenues that job seekers and employers can use to get and refresh their necessary skills. For a more in-depth view, check out our 2024 Solar Industry Snapshot. Relevant degrees Pursuing a career in the solar industry often starts with obtaining a relevant degree, such as environmental science, solar energy engineering, or sustainable development. These programs provide foundational knowledge and skills that are critical for understanding the technical and environmental aspects of solar energy. Specialized certifications Beyond traditional degrees, specialized certifications like the NABCEP Solar PV Installer Certification and the Certified Energy Manager (CEM) credential can significantly enhance job prospects by demonstrating specialized expertise and commitment to the field. Online courses and workshops Many universities and organizations offer online courses and workshops focused on renewable energy technologies and management, providing flexible learning opportunities for those looking to enter or advance in the solar industry. Skill transferability Skills gained from various backgrounds, such as the military, can also be highly transferable to solar jobs, as they often include project management, technical training, and leadership experience, all of which are valuable in solar careers. Training programs and opportunities Another potential source of great hires is the Solar Ready Vets program, which trains exiting military personnel for careers in solar. Interviews with industry employers have indicated a high degree of skill transferability between military occupations and solar jobs. Interested companies can sign up to be added to the program’s employer directory. Strategies for retaining talent How can solar employers stem the tide of disappearing talent? Employee retention is an epidemic that can be difficult to control. By addressing the following areas, solar companies can build a strong, dedicated workforce committed to driving the future of renewable energy. Career Development: Provide opportunities for professional growth through training, mentorship, and advancement programs. Competitive Compensation: Offer attractive salary packages, benefits, and performance incentives to retain top talent. Positive Work Environment: Foster a supportive and inclusive workplace culture that values employees' contributions and encourages work-life balance. Summary Facilitating an inclusive hiring process is imperative for solar businesses. With the resources highlighted above, employers can recruit the best solar talent, increasing job satisfaction and creating a diverse, productive work environment.   There's no magic wand, but these resources can help you get started on the right foot — whether you're a job searcher or a company that's hiring. Featured image by Josh Calabrese. ### How to choose the best solar battery for your needs Solar battery technology is one of the core pieces of the electrification and solar power revolution that’s happening right now. Reliable and affordable battery technology, after all, not only helps keep the lights on when the power is out, but it can also help store solar energy for use when the sun isn’t shining. Once you understand the value of having solar energy storage, you’ll need to learn how to choose a battery for solar panels. Visit our Sell Battery Storage page to see how to increase your battery storage attachment rate right now. Of course, no battery storage article would be complete without mentioning the Inflation Reduction Act (IRA), which unambiguously makes battery storage eligible for the Investment Tax Credit (ITC) — now at 30% until 2032.  Even plug-in electric vehicles, which use similar energy storage, are playing a significant role in accelerating the advancement of the solar battery. All of this leads to significant improvements in battery technology and drops in battery storage pricing. Likewise, more homeowners are considering battery storage as part of their solar projects. Let’s look at some of the decision factors to consider when helping a customer determine the right battery for their home. Are solar batteries worth the cost? For solar customers truly looking to make the most of their PV system, a quality home solar battery can be a good choice. There’s no sugarcoating that they’re pricey — solar batteries typically cost between $10,000 and $20,000 installed — but if a customer can afford it, the benefits of installing a solar battery are substantial. And, as mentioned earlier, solar batteries are eligible for a 30% federal solar investment tax credit, and many local utilities offer battery incentives as well, which can bring the cost down considerably.  Let’s also think about how solar batteries play triple-duty; they’re a power generator for emergencies, they can help lower energy bills over the long run, and they decrease a home’s carbon footprint. All that considered, they are often well worth the investment if the adopter plans on keeping a home long-term. The payback period for solar batteries can be as little as five years, give or take a year or two, depending on other factors such as total system capacity and design and available incentives. Some benefits of solar batteries — such as peace of mind and resiliency — are priceless to some solar customers and should also be a factor in deciding if solar batteries are worth it.  Of course, knowing ROI and showing ROI to customers are two different things. Aurora’s Energy Storage tool lets you model battery load, system configurations and customization, and more for customers, so they can easily see the benefits.  NEM 3.0, TOU rates, and battery storage NEM 3.0, also known as the Net Billing Tariff, significantly impacted California’s market for solar when it was passed in 2023. We can argue over CPUC’s intent with NEM 3.0, but it decreased the immediate ROI for solar and tamped down the market considerably. Of course, solar installers are nothing if not innovative, and they have discovered new ways to deliver savings. A big way is by using battery storage for self consumption. With time of use rates (TOU) and variable export rates it not only matters how much electricity a customer consumes, but when. This means that storing excess energy in batteries when the sun is shining — and rates are relatively low — and using it when rates are high can add a new way to save with solar + storage. There are even compelling use cases where solar energy is stored in a battery and exported to the grid during times when variable export rates are particularly high. This is called energy arbitrage, and it can help customers to maximize the value of their solar system and reduce their reliance on the traditional electric grid, which can sometimes be unreliable or expensive. In addition, battery storage can also help to mitigate peak demand charges that are often imposed on commercial customers. To learn how energy arbitrage works, see our post: Optimize your ROI story with solar + storage modeling for energy arbitrage. Advancements in battery technology There have been rapid advancements in the electrical energy storage industry in the past decade. One of the most notable is the development of modular systems, such as the Tesla PowerWall 2 (and now, the PowerWall 3). These types of batteries have greatly made energy storage more flexible, easy to install and transport, and more affordable to maintain.  More recent solar battery advancements include new developments in Lithium Ion Phosphate (LFP) cathodes for lithium-ion solar batteries. Unlike traditional cathodes that have been a fire hazard, LFP cathodes are said to offer lower cost, enhanced performance and improved safety. These have already proved beneficial for electric vehicle use. Additionally, iron flow batteries (which are cheaper and last longer compared to lithium ion), are being used to make the electric grid more resilient to severe weather events. It’s not just the batteries that are evolving, but how we use them. In recent years, there’s been the advancement of incorporating Artificial Intelligence (AI) into battery energy storage systems. By using AI technology, we can better monitor our solar storage systems—gauging things like solar output, weather conditions and seasonality—and gain insight into decisions like when to charge and discharge the solar batteries. The rapid advancements in solar battery technology mean that newer batteries are entering the market while the older ones are still on the shelves. From traditional lead-acid, today’s solar shoppers now have a wealth of battery types, technologies, and sizes to pick from. If you are looking at battery storage for a solar project, the first thing you need to know is how to choose the right one for your needs. See how Cape Fear Solar Systems has achieved a 75% attach rate for storage. How to choose a battery for solar panels  Most people, particularly homeowners, venture into solar power with limited know-how. The market has adapted to their needs by generalizing what a buyer should “expect” when investing in a solar system. This information is not always accurate. The wealth of solar battery options can make it quite a daunting task. While most people go for a one-size-fits-all approach, this may not always be the best choice. The problem with one-size-fits-all batteries There are three good reasons why you should not go for a one-size-fits-all type of solar battery: The technology the battery uses is rarely ever emphasized. Many one-size-fits-all batteries have traditionally used lead-acid technology to store energy. This is not the best technology in the market. These batteries may be bulky in size, but they often lack power storage capacity. The cost rarely ever justifies the power capacity. These standardized solar batteries are almost always either oversized or undersized. The undersized batteries cannot meet power output demand. The oversized batteries, on the other hand, are not always fully charged, especially in the winter. The one-size-fits-all battery is touted as the ideal choice for most people because a majority of buyers rarely ever know what to look for. However, it often trades various features and capabilities to meet the minimum requirements of different use cases. Click the image to download the free Storage Sales Cheat Sheet. Solar battery specs All solar batteries are made differently. Some manufacturers use robots, while others assemble batteries manually. The form of quality control can affect the quality of the batteries. Some manufacturers are known to use more lead and heavier grids, which impacts the performance of the cells in the battery. Most importantly, some brands of batteries are tested exhaustively for safety and performance while others are not. As a result, it is not uncommon for batteries with similar specifications to have different performance and lifespans. Finding the right batteries for your solar setup may mean the difference between good and poor power system performance. It may also mean the difference between negligible or high maintenance. Here are the most important considerations you should have on your checklist when shopping for a solar battery. Battery capacity Batteries are rated in amp-hours, or simply amps. The indicated power rating is typically the fully developed capacity of the battery. This means that it may take tens to hundreds of charging cycles before the battery can reach the indicated full capacity. In other words, it can be misleading to test your battery after only a few cycles of charge. You do not need to understand the physics behind electricity to estimate your power needs or properly size your batteries. If you already use power from the grid, this guide can help you estimate your power consumption based on your electricity bills. As a rule of thumb, always estimate your peak power requirements using amp-hours. A battery rated 100 amp-hours, for instance, can theoretically put out 1 ampere of electric energy for 100 hours or 10 amps for 10 hours. When selecting a solar battery, understanding your power needs is the key to choosing a battery with sufficient energy storage. Note that batteries with long warm-up cycles before reaching full capacity are more likely to outlast batteries that tout a high initial capacity. Battery lifespan and charge/discharge cycles The lifespan of a battery is a crucial factor that manufacturers compete on when designing robust solar batteries. The design process often focuses on making the battery resist heat and cold cycles to deliver peak performance for longer. The type of solar battery technology also plays a significant role in determining its lifespan. There are three factors that affect the longevity of a battery that you should check when shopping for one are: Depth of discharge: This is the extent to which the battery is discharged or used, relative to its capacity. Since batteries degrade as they are used, their capacity deteriorates over time. Cyclic life: This is the number of charge and discharge cycles of the battery. During regular use, flooded batteries typically last for between 300 and 700 cycles. Gel batteries can store and deliver peak power for as many as 500 to 5000 cycles. Lithium batteries can last for up to 200 cycles. Temperature: The chemical activity inside batteries increases with temperature. To extend the lifespan of your solar batteries, install them in a temperature-controlled room. Flooded vs. sealed batteries Solar batteries can be broadly categorized into two: flooded and sealed. Flooded batteries are the standard lead-acid batteries used in vehicles and off-grid solar installations. They are affordable, and because they can be easily cleaned and serviced, have longer lifespans. When in use, these batteries generate small amounts of hydrogen gas. Sealed batteries are also known as VRLA (valve regulated lead acid) batteries. They cannot be serviced or maintained because they are sealed. A charge controller maintains the fluids and plates inside the battery to prolong their lifespan. These batteries do not emit hydrogen gas when in use. Peak power output Solar power batteries can be classified by their kilowatt peak or kWp. kWp is the theoretical peak power output of the system in ideal conditions. The peak output is more of a measure of comparison than an absolute unit. When choosing a solar battery, the kWp rating indicates the highest amount of power it can output at its best performance: the higher the peak power output rating, the better the battery. Round-trip efficiency The round-trip efficiency of a battery is the amount of energy that can be computed as a percentage of the energy used to store it. For instance, if 100 kWh of electricity is fed into a battery, and it can only output 90 kWh, the round-trip efficiency of the battery would be 90% (90 kWh / 100 kWh x 100). Always go for batteries with a higher round-trip efficiency because they are more economical. Ambient working temperature Ambient temperature is the average air temperature surrounding the battery or the temperature of the room in which the battery is installed. The rating indicates the optimum temperature under which the battery will perform normally. The ambient working temperature of a solar battery is a crucial rating that is often overlooked. This is particularly important for people living in regions with extreme temperatures. Battery brand and warranty Many different manufacturers are competing to develop the ideal solar battery. Their design and manufacturing processes differ, and as such, the final products are also different. Brand is an important factor when choosing solar batteries. Your priorities and budget should dictate whether to buy a battery developed by a new startup or a major  automotive company. Regardless of your choice, be sure to scrutinize the warranty details and go for the product that offers the most extended guarantee. Battery cost The prices of solar batteries range widely, and have fallen significantly over the years. The cost of solar batteries ranges between $200 and $750 per kWh. Lead-acid batteries, on average, cost around $260 per KWh, and lithium-ion batteries average at $271 per KWh. This brings the total cost of the batteries to between $5,000 and $7,000. The actual prices may vary depending on your location and available brands. Note that the ITC provides an incentive for installing a solar power system in the US. Again, the tax credit for installing a residential solar system is 30% until 2032, thanks to the ITC update. Click above to get the free Pocket Guide to Selling Storage. The different types of solar batteries The type, or technology, is the most crucial consideration when shopping for a solar battery. Your budget and specific needs should determine the type of battery that you choose. 1. Lead-acid solar batteries Tried and tested, lead-acid batteries are the standard for electrical energy storage. This type of battery has been around since it was invented in the 17th century, yet it is still the most used in storing power. Until five years ago, these were the only practical batteries that could be used to store electricity for domestic or industrial use. Pros of lead-acid batteries The most notable strength of lead-acid batteries is that they are affordable. They are widely installed in rural and remote areas because they are cheaper to buy than to pay for a power mains grid extension. Lead-acid batteries are deep-cycle batteries, meaning that they can output steadily over a long period. Their discharge rate is constant. These batteries come in both flooded and sealed varieties. They both work on the same principle. Cons of lead-acid batteries At first look, lead-acid batteries are dull — they are bulky, ugly, and heavy. Because they take up a lot of space and their ambient working temperature is below room temperature, they must be installed in a climate-controlled shed. Where lead-acid batteries are used Lead-acid batteries are the first choice for an off-grid solar system installation. Their price and stability make them very dependable and easy to upgrade or replace. Most emergency power backup systems in the country also still use lead-acid batteries. 2. Lithium-ion solar batteries Li-ion batteries are becoming popular because they are the go-to power storage for electric vehicle manufacturers. The potential of lithium-ion as an energy storage medium is yet to be fully explored, but they are promising. However, at the rate that they are being improved, it is just a matter of time before they become the most popular battery for solar power storage. Tesla’s Powerwall battery is the most popular power storage solution that uses this technology. There are two types of Lithium-ion batteries on the market. The first and most popular among electric vehicle manufacturers is the NMC (nickel-manganese-cobalt) chemistry type. The other is a LiFePO 4 (lithium iron phosphate) type battery. The NMC-type battery has a high cycle life, making it ideal for use in off-grid installations. LiFePO batteries perform exceptionally well in extreme temperatures, making them suitable for use in regions with extreme temperatures Pros of lithium-ion batteries Li-Ion batteries require minimal to no maintenance. They have a higher battery energy density. This means that a Lithium-ion battery can store more energy than a lead-acid battery of the same physical size. Because they have longer life cycles, they have longer lifespans and higher depth of discharge. The Lithium-ion battery can deliver between 4,000 and 6,000 cycles at an 80% depth of discharge and still last for up to 15 years. Cons of lithium-ion batteries The main downside of Lithium-ion batteries is that they are expensive. They cost as much as double the price of lead-acid batteries with similar energy storage capacity. These batteries, unlike lead-acid batteries, are also very fragile and require a stabilizing circuit to ensure safe operation. Where lithium-ion batteries are used Lithium-ion batteries have found a home in the automotive industry. The demand for this battery is at an all-time high as electric vehicle manufacturers jostle to get a hold of it. 3. Flow solar batteries Also known as redox flow, the flow battery is a new entrant into the solar battery race. These batteries use a water-based zinc and bromine solution and vanadium to store electrical charge. There are only a handful of companies making this battery today, the most notable being Redflow, an Australian company. Pros of flow batteries Flow batteries are highly scalable. This means that the capacity and outputs of the battery can be increased or reduced proportionally to the battery size. They differ from the other batteries on this list in that deep discharge has no effect on the performance or lifespan of the battery. They have a long life cycle and very low self-discharge. It is also noteworthy that flow batteries do not heat up during use. Cons of flow batteries The fluids used to make the flow battery are prohibitively expensive. While the technology on which they work has been around for decades, these batteries are barely known in the mainstream because few companies produce them commercially. Because of their chemistry, flow batteries are bulky. The zinc and bromine elements in the battery are also highly corrosive and toxic. Where flow batteries are used Flow batteries are ideal for use in situations where the batteries undergo multiple charge/discharge cycles every day. They are ideal for use in large-scale installations.  4. Sodium-nickel chloride solar batteries The sodium nickel chloride battery is a formidable competitor to the lithium-ion battery. This energy storage uses a unique chemistry that makes it fully recyclable. It does not emit toxic chemicals and presents no heating or fire risk. Unlike lithium-ion batteries, sodium-nickel chloride batteries do not require sophisticated cooling systems to work efficiently. Pros of sodium-nickel chloride batteries Because of its chemistry, the sodium nickel chloride battery is safe and reliable. It can operate optimally even at extreme temperatures of between -4°F and140°F. The batteries are fully recyclable because they have no hazardous or toxic chemicals in them. Cons of sodium-nickel chloride batteries They have a limited lifespan of about 3,000 cycles and only an 80% depth of discharge. This means that as much as 20% of the power it stores cannot be used. These batteries are also quite costly to install, particularly for residential solar systems and large projects. Where sodium-nickel chloride batteries are used Sodium Nickel Chloride batteries are best used in large installations in solar off-grid power installations and emergency power backup systems. 5. Saltwater solar batteries Saltwater solar batteries, also known as sodium-ion or seawater batteries, are a type of rechargeable battery that uses saltwater as the electrolyte. This makes them a more environmentally friendly alternative to traditional lithium-ion batteries since they don’t contain any toxic or hazardous chemicals. While they’re not yet ready for large-scale adoption, they’re an exciting technology that’s worth watching. Pros of saltwater batteries Experts often warn of a lithium-ion shortage, one advantage to a saltwater battery is that saltwater is abundantly available. In terms of supporting clean energy, you can’t get much cleaner than this—saltwater batteries are made of eco-friendly materials and are easy to recycle. Additionally, they have a longer lifespan, nearly double that of other batteries on the market, and less of a fire risk. Cons of saltwater batteries The biggest disadvantage of saltwater batteries is that they have a lower energy density compared to other types of batteries, which means they store less energy in the same amount of space. Because larger batteries are required, it also makes saltwater batteries more expensive to produce compared to other solar batteries, which has manufacturers less interested in the investment. Where saltwater batteries are used Saltwater batteries are not commonly used for energy storage, mostly due to their high cost and lack of research. Comparing solar battery types Lead-acid batteries The cheapest in the market Easy to maintain; sealed lead-acid batteries require no maintenance Highly reliable Easily recycled or disposed of Bulky, and takes up a lot of valuable storage space Short lifespan of between 1000 and 3000 cycles. On average, a lead-acid battery can last for 5 to 8 years Shallow discharge depth of ~60% and an ambient temperature of 70º Good for off-grid solar systems and emergency power backup storage Lithium-ion batteries Require minimal to no maintenance High battery energy density saves space Longer life cycles and lifespans Highest depth of discharge Relatively expensive Relatively fragile and must be enclosed in metal Use an electronic circuit to provide a stable power output Good for electric vehicles, remote cameras, and drones Flow batteries Can provide over 10,000 cycles with negligible loss of efficiency or storage capacity. Fast recharge rates Little to no heat or fire hazard Relatively expensive Hard to dispose of and non-recyclable Good for large-scale installations Sodium-nickel chloride batteries Safe and reliable Can operate normally even in extreme temperatures Recyclable Short lifespan Shallow 80% depth of discharge. Relatively expensive Good for large-scale installations and power backup systems Saltwater batteries Safe Long-lasting Recyclable and made of clean, abundant materials Lower energy density Require more space More expensive than most More research is needed Conclusion The right battery and size for your customer depends on their specific power needs. Most first-time buyers use a solar battery storage analyzing tool to get faster and more accurate estimates. The most highly recommended battery for most industrial and residential installations today is the lithium-ion battery. As the battery technology evolves, the batteries are getting more compact, power-dense, and cheaper. If the budget is tight, or you need to install a basic solar system, then lead-acid batteries can be just as good. However, because environmental factors directly impact the performance and longevity of these batteries, be sure to weigh their features against expected consumption and climate, among other factors. Schedule a personalized demo to learn more about how Aurora can help you add battery storage to your offerings. Here are all the resources mentioned in this blog: How Cape Fear Solar Systems achieved a 75% storage attach rate The 5-minute storage sales cheat sheet The pocket guide to selling storage Optimize your ROI story with solar + storage modeling for energy arbitrage FAQs Do solar panels have batteries? Solar panels themselves do not contain batteries. Solar panels produce electricity from the sun, and this energy is either immediately consumed or stored in external batteries for later use.  What type of battery backups do solar systems use? The most commonly used batteries in solar are: Lead-acid Lithium-ion Flow batteries Sodium-nickel chloride  What is the best way to choose a battery system? When choosing a battery system, it’s important to balance two key factors:  How much storage does the customer need? For example, a battery for providing a few hours of electricity during the evenings will look a lot different than a battery meant to power a home through a week-long natural disaster.  What is the solar customer’s budget? If money is tight, you might still be able to get the power needed with several tradeoffs.  Which type of battery lasts the longest? Lithium-ion batteries will last the longest and perform the best over the course of their service life.  Which battery chemistry is safest? Lithium-ion batteries — and more specifically, lithium iron phosphate (LFP) batteries — are the safest batteries on the market today.  How many solar batteries are needed for my home? To determine how many batteries are needed for the solar project, calculate your total daily electric requirements (measured in watt hours, or Wh) multiplied by how many days of electricity you need the battery to store.  For example, for a 30 kWh home to run two days on battery power alone, the house would need six 10 kWh batteries. What is solar battery efficiency? Solar battery efficiency refers to how well a solar battery can convert and store energy from the sun. It’s typically measured as a percentage, with higher percentages indicating better efficiency. This is an important factor to consider when choosing a solar battery, as it directly impacts how much usable energy you will be able to store and use in your home. ### AutoStringer: the automated solution for optimizing solar system stringing Designing an optimal solar system is complex and time-consuming, involving the selection and configuration of panels, inverters, and Module Level Power Electronics (MLPEs).  But it doesn’t have to be. AutoStringer is a powerful automation tool that can help solar designers achieve optimal results quickly and efficiently. This not only results in optimal energy production and accuracy, but it delivers time and cost savings to boot.  AutoStringer uses a range of inputs to achieve that, including panel characteristics (voltage, current, manufacturer specifications), inverter and DC optimizer specifications (such as input voltage, input current, output voltage, and the number of physical inputs), and panel layout (location, orientation, tilt).  Mixed integer linear programming (MIP) techniques are used to determine the best configurations for maximum energy production and minimal cost. It considers a number of constraints, including the electrical parameters of the available devices, site temperature, panel characteristics, and compatibility of the components. It also considers string power, number of strings, and total panel power to select the optimal type and number of inverters and optimizers. Once the optimal configuration is determined, AutoStringer optimizes the string path to reduce wiring cost by using a combination of Traveling Salesman and Snake algorithms — which we’ll explain later in this blog.  AutoStringer dramatically cuts down the time required for designing solar panel stringing and configurations. AutoStringer will return results in under 2 seconds on average and under 2.5 seconds 90% of the time. This allows you to focus on other crucial aspects of your projects, leading to faster turnaround times and increased productivity.  Let’s take a closer look at how it all works. How AutoStringer works AutoStringer's design process consists of several steps: 1) Component validation and compatibility check AutoStringer begins by checking that the components’ properties are valid and compatible with the other components in the system. For instance, if an MLPE device lacks sufficient power to handle the specified panel type or if an inverter is not compatible with MLPEs, AutoStringer will flag the issue. 2) Configuration generation  Following component validation, AutoStringer generates possible configurations for a solar panel system based on the inverters, optimizers, and panels selected. AutoStringer creates all possible combinations of string lengths using the panel type and considers the provided inverter and optimizer types that meet compatibility criteria. This step narrows down the search domain for the integer linear programming (ILP) solver, leading to faster optimization. 3) Panel grouping AutoStringer uses a graph-based approach and the breadth-first search algorithm to group panels into sets suitable for stringing. If required based on the design, AutoStringer ensures that all panels on a given string have the same azimuth to optimize the system’s energy output.  4) BOS component selection In the BOS (Balance of System) component selection stage, AutoStringer identifies the optimal combination of inverters and MLPE devices, such as DC optimizers or microinverters. The goal is to minimize cost and the number of unstrung panels.  AutoStringer begins by evaluating different design configurations based on the types of BOS components available. For systems using inverters with MPPTs, it considers panels in series to form strings, which are then linked to the input ports of the inverters' MPPTs. This approach requires careful consideration of factors such as the number of MPPTs, their input voltage and current ratings, and how they align with the panel strings. For systems equipped with DC optimizers or microinverters, each device may cover one or multiple panels or have multiple inputs, allowing for several strings to be connected to each optimizer or microinverter. AutoStringer accounts for these variations by optimizing the number of panels per optimizer or microinverter and ensuring that each string is appropriately matched to the device's capacity. For microinverters, the panels are connected directly to the appropriate microinverter ports. In designs that use DC optimizers, the panels are first connected to the DC optimizers, and then the strings from the DC optimizers are connected to the appropriate ports on the inverters. A schematic of different type of stringings in solar system with different design scenarios. AutoStringer also supports designs that incorporate external MPPTs. In this case, multiple strings of panels can be connected to the input ports of the external MPPTs, and the external MPPTs are then connected to the input ports of the inverters. Compared to multi-input DC optimizers, external MPPTs offer more flexibility regarding panel coverage in some scenarios Using a set of solar panels (layout), the available types of BOS and MLPE components that can be used in the system, and other auxiliary information, such as the temperature variation at the site, AutoStringer determines which BOS and MPPT components to choose. It accounts for the minimum and maximum string length, the minimum and the maximum number of strings, and the maximum total power derived from the electrical data of the inverters. These constraints ensure that the design is feasible and meets various electrical and mechanical requirements, while minimizing the total cost of the selected inverters and the number of unstrung panels. The output of the selection stage is the optimal combination of BOS and MLPE components (inverters and optimizers) and the corresponding configurations, which are used in the subsequent stage. 5) String routing The string routing stage of AutoStringer follows the completion of the previous stage. It aims to create the optimal stringing configuration by connecting individual panels to the inverters/DC optimizers in a way that is consistent with the selected stringing configurations. It’s worth noting that the string routing process differs slightly for designs with microinverters. In these designs, there is no stringing among the microinverters themselves. Instead, the microinverters are connected to individual panels, and the stringing is limited to the panels. The string routing algorithm accounts for this difference and constructs the strings accordingly. The string routing stage of AutoStringer follows the completion of the previous stage. It aims to create the optimal stringing configuration by connecting individual panels to the inverters/DC optimizers in a way that is consistent with the selected stringing configurations. Initial arrangement of panels. An initial tour passing through the panels in each panel group is constructed per panel group. Final arrangement of panels. Once the tour is constructed for each panel group, AutoStringer breaks up the tour into strings and assign the strings to the corresponding inverters. Breaking up the tour among panels and assigning them to inverters. When DC optimizers are used in a design, the first step is to select the best DC optimizer type based on the minimum cost per panel coverage by that DC optimizer type. Once the DC optimizer type is selected, the panels are strung together and attached to the DC optimizer input ports using a simple greedy algorithm. In this case, the strings may be composed of multiple panels and multiple strings may be connected to a single DC optimizer. Once the panels are strung and attached to the corresponding optimizers, the stringing among the DC optimizers is handled in the same way as the stringing among the panels in the absence of DC optimizers (dealing with strings of DC optimizers instead of strings of panels). In this case, multiple strings of DC optimizers may be connected to an inverter, and the strings are assigned to inverters using a simple greedy algorithm. A schematic of stringing in a design with multi-input DC optimizers. Overall, the string routing stage of AutoStringer aims to create the optimal stringing configuration for the solar panels and MLPEs while adhering to the stringing configurations selected by the ILP solution from the former stage. It’s worth noting that the string routing process differs slightly for designs with microinverters. In these designs, there is no stringing among the microinverters themselves. Instead, the microinverters are connected to individual panels, and the stringing is limited to the panels. The string routing algorithm accounts for this difference and constructs the strings accordingly. 6) Design output and visualization The final step involves creating a list of inverters with their attached panel strings or DC optimizer strings which is used to create a graphical representation of the solar panel layout that is then visualized in Aurora.  For more information Want to learn more? Reach out and schedule a quick, personalized demo to get all your specific questions answered. ### Solar energy storage: everything you need to know NOTE: This blog was originally published in April 2023, it was updated in August 2024 to reflect the latest information. Even the most ardent solar evangelists can agree on one limitation solar panels have: they only produce electricity when the sun is shining. But, peak energy use tends to come in the evenings, coinciding with decreased solar generation and causing a supply and demand issue. The thing is, solar panels often pump out more than enough energy during those lower demand hours when the sun is shining to meet peak demand later in the day. This means that efficient solar energy storage can open up a wealth of possibilities for homeowners and businesses alike. In this blog, we’ll look at solar energy storage in-depth, its benefits, and even tools for modeling it on your solar installs. Click the image to download the free selling solar storage cheat sheet. What are the benefits of storing solar energy? Storing this surplus energy is essential to getting the most out of any solar panel system, and can result in cost-savings, more efficient energy grids, and decreased fossil fuel emissions. Solar energy storage has a few main benefits: Balancing electric loads. If electricity isn't stored, it has to be used at the moment it's generated. Energy storage allows surplus generation to be banked for peak-use. As far as renewable energy is concerned, storing surplus power allows the lights to stay on when the sun goes down or the wind stops blowing. Simply put, energy storage allows an energy reservoir to be charged when generation is high and demand is low, then released when generation diminishes and demand grows. Filling in the gaps. Short-term solar energy storage allows for consistent energy flow during brief disruptions in generators, such as passing clouds or routine maintenance. Energy resilience. The energy grid is vulnerable to disruptions and outages due to anything from wildfires to severe weather. Solar power storage creates a protective bubble during disruptive events by decentralizing where we get our energy from. Reducing carbon footprint. With more control over the amount of solar energy you use, battery storage can reduce your property’s carbon footprint in areas with fossil fuel-based utility power. Large solar batteries can also be used to help charge electric vehicles and turn any appliance in your home into a “solar-powered” device. Savings from electric bills. If you live in a state that has no solar net energy metering, or policies like time-of-use (TOU) rates and variable export rates, battery storage can help lower your utility bills while consuming more of your own power. So, while you may not be compensated as much for excess energy sent to the grid, any additional solar power generated and stored throughout the day can be discharged from a battery at night or on cloudy days in the place of utility consumption. California Net Billing Tariff (NEM 3) considerations. One of the big components of NEM 3 is that it has, "notably higher on-peak charges and lower off-peak charges" for electricity. Likewise, the export rate is lowest in the middle of the day, when solar energy is plentiful. Since "peak" hours are from 4pm - 9pm, this means, generally, that customers are exporting power to the grid when the rate they receive is the lowest, and using grid power at peak times, when it's most expensive. Enter battery storage: Any solar energy that can be stored in a battery during non-peak hours and used during peak times will be much more valuable for the consumer. Learn more details in our blog: Explaining and modeling California's Net Billing Tariff. How is solar energy stored? Solar energy storage can be broken into three general categories: battery, thermal, and mechanical. Let's take a quick look at each. What is battery storage? Batteries are by far the most common way for residential installations to store solar energy. When solar energy is pumped into a battery, a chemical reaction among the battery components stores the solar energy. The reaction is reversed when the battery is discharged, allowing current to exit the battery. Lithium-ion batteries are most commonly used in solar applications, and new battery technology is expanding rapidly, which promises to yield cheaper, more scalable battery storage solutions. In fact, U.S. energy storage is expected to reach nearly 7.5 GW annually by 2025, a sixfold growth from 2020, representing a market worth $7.3 billion. What is thermal storage? Thermal energy storage uses various mediums — such as water or molten salt — to absorb and retain heat from the sun. This heated medium is stored in an insulated tank until the energy is needed, usually to boil water for energy generation. What is mechanical storage? Mechanical energy storage takes advantage of the potential energy of an object to generate electricity. Mechanical storage methods convert surplus electrical power into mechanical power, which is converted back into electricity for later use. There are three prominent mechanical energy storage systems: Flywheel. This method uses surplus electricity to spin a flywheel, which later generates electricity to supply quick energy during peak demand times. Pumped hydro. With pumped hydro, water is pumped uphill to a reservoir located above turbine generators. The water is allowed to flow through turbines and generate electricity when demand is high. Compressed air. With this energy storage system, compressed air is pumped into large vessels such as a tank or underground formation. The air is released to generate electricity during peak demand. Click the image to download the free cheat sheet. The best way to store solar energy There's no silver bullet solution for solar energy storage. Solar energy storage solutions depend on your requirements and available resources. Let’s look at some common solar power storage options for commercial and home applications.  Commercial solar energy storage Utility companies and other businesses generally have bigger budgets than individual households, making mechanical and thermal storage viable options. Though costs for these storage methods can be high, they help utilities keep up with peak energy demand. Grid energy storage with next-generation batteries. 2020 was a record year for new energy storage in the United States. In the third quarter alone, the nation deployed 476 MW of new storage, a 240% increase from the record-breaking previous quarter. Most of the new deployments are one-hour front-of-the-meter (FTM) storage solutions, but nonetheless offer a promising look into the future of commercial solar energy storage. Compressed air. The most recent government estimates calculate compressed air costs at $105/kWh, making it the most cost-effective mechanical storage option for large-scale applications. Pumped hydro. Surplus solar energy can be used to pump water uphill, creating a massive amount of potential energy. Current pumped hydro costs are around $165/kWh, making it the second-best option for mechanical energy storage at scale. It’s only available in certain areas, however, as new pumped hydro involves high upfront costs and significant regulatory hurdles. Home solar energy storage Residential solar has myriad benefits, including resiliency, cost savings, and decentralization of electrical production (otherwise known as “virtual power plants”). But the commercial energy storage methods we discussed above are likely cost-prohibitive for the average homeowner. Thankfully, battery storage can now offer homeowners a cost-effective and efficient way to store solar energy. Lithium-ion batteries are the go-to for home solar energy storage. They're relatively cheap (and getting cheaper), low profile, and suited for a range of needs. Other batteries commonly available for residential use include saltwater batteries and lead-acid batteries. Regardless of the battery type, home backup batteries allow homeowners to save energy during high production, low demand times (i.e. during the workday) for use during high demand periods when generation diminishes. Home solar energy storage inherits the same benefits of large-scale solar energy storage, translating into resiliency, uninterrupted energy, and cost savings. And these benefits go directly to the homeowner. Technology to help design solar battery storage Designing a storage system along with a solar installation used to be labor-intensive and include a fair amount of guesswork. Software like Aurora's includes battery storage as part of its offerings. Using Aurora’s battery storage functionality, solar installers can analyze load off-set, calculate the projected price of a project, forecast smart battery sizing recommendations based on customer priorities, and present it to the customer in a compelling, easy-to-understand way. Aurora has also introduced battery self-consumption modeling. You can learn more here. So, while the technology used for solar energy storage may seem complicated or overwhelming to some customers, Aurora can help you break down the complexities for customers with interactive and easy-to-understand models of performance and savings.  Click above to learn more about modeling battery storage for self consumption in Aurora. How to Store Solar Energy: FAQ Can solar energy be stored for future use? Yes, in a residential photovoltaic (PV) system, solar energy can be stored for future use inside of an electric battery bank. Today, most solar energy is stored in lithium-ion, lead-acid, and flow batteries. Is solar energy storage expensive? It all depends on your specific needs. The costs of solar storage have declined significantly in the last decade, and long-term, improving technology and efficiency should help continue to make storage more affordable. How much is a solar battery? Again, it depends on a number of factors, including the area you live in, the incentives available, and the specific system you want for your home. Broadly, however, a home solar battery system can be expected to cost between $12,000 and $22,000. As off-grid, grid-tied, and hybrid installations all use different inverter technologies, batteries are generally rated for and purchased at the same time as the rest of the components in a solar energy storage system. What’s the cheapest solar battery? Lead-acid batteries are currently the cheapest option for solar energy storage, but they're short-lived and not as efficient as other options. Lithium-ion batteries offer the best value in terms of cost, performance, lifespan, and availability. How long can solar energy be stored? Theoretically, solar energy stored mechanically can last as long as potential energy is maintained. There's always energy lost in any energy transfer, and in the case of mechanical storage, leaks always occur during storage and release. The same applies to batteries. Generally, a standard solar battery will hold a charge for 1-5 days. How long do solar batteries last? Standard solar batteries last 15-30 years, depending on type. How many solar batteries do I need? Storage capacity varies dramatically based on your specific needs and takes into account factors like your desired storage capacity, backup load, and backup duration. Aurora Solar's Battery Storage tool can help take the guesswork out of calculating these storage needs. Is solar power worth it for me? Solar energy became cheaper than coal in 2019, reaching an average of $.068 per kilowatt-hour (compared to an average of $.13 for U.S. residential power that same year, which is predominantly fossil-powered). While the price of electricity fluctuates, a solar installation can help give you cost certainty over a long period of time. Economic benefits aside, solar energy reduces carbon emissions and boosts resiliency. How can I get optimal solar efficiency? Great question, this is where solar panel placement matters. We recommend using solar panel design software to inform your installation and create optimal efficiency. Check out how that works with Aurora Solar. Is installing a battery for self-consumption a good investment? That depends on your state's NEM policies, electric rates and other factors. Under California's Net Billing Tariff (NEM 3.0), self-consumption can provide solid ROI. Click here to learn more about Aurora's storage for self-consumption and energy arbitrage modeling capabilities. Conclusion The sun offers a limitless supply of clean power, but harnessing it can be a challenge. Thankfully, several options for commercial and residential storage offer proven solutions for storing solar energy, and emerging technologies are being developed daily. For commercial applications, mechanical storage options provide effective solutions to harnessing solar energy when it's needed most, and grid-scale battery storage will likely become available soon. For residential solar, battery storage is the best option, with a variety of affordable units on the market. Together, these solutions provide an effective portfolio for storing solar energy and provide a compelling argument for further solar deployment in commercial and residential settings.  To learn more, visit these resources: Aurora battery self-consumption modeling information NEM 3.0 resource center Explaining and modeling California's Net Billing Tariff To see battery self-consumption modeling in action, schedule a quick demo. ### Uplevel your post-sales process with EagleView Powered Models Achieving accurate solar designs is hard. For as long as there have been panels on roofs, it’s been one of the biggest challenges solar installers have wrestled with. How do you make sure that what you sell the customer is what you can actually get up on the roof?  It used to be that you had to get up there and measure. We don’t need to tell you that those truck rolls add extra time on site, add complexity to the modeling process, and ultimately add cost for your business.  More recently, software solutions have stepped in to help. And now, we’ve taken a huge step forward with EagleView Powered Models in Aurora.  EagleView Powered Models in Aurora deliver truly remote designs that can provide the accuracy of a drone without ever visiting the site. Whether you need highly accurate 3D roof models for pre-sale or post-sale designs, or site surveys, you get the most achievable level of accuracy possible. This saves you time and money, and also leads to more happy customers, which leads to more referrals, which leads to more sales, which… well you get it. Whatever project stage you’re looking to improve, EagleView Powered Models can help you drive positive outcomes and control your bottom line. In this blog, we’ll look at what you can expect from EagleView Powered Models and show you some resources where you can learn more. EagleView Powered Models primer To say it’s easy to use EagleView Powered models in Aurora would be an understatement. In this section we’ll go through the basics of ordering an EagleView Powered model in Aurora.  Please see these Help Center articles for more details: How to use EagleView Imagery in Aurora How to Request an EagleView Powered Model Step 1: Order your EagleView Powered Model directly in Aurora Step 2. Review your order Step 3. Replicate sold design and check for fitment (measure twice, cut once) Learn more about EagleView and Aurora Want to get the full scoop? Our (free) upcoming webinar — Achieve Unmatched Solar Design Precision with EagleView Powered Models in Aurora — has all the tips and tricks about how to use EagleView Powered Models (REGISTER HERE). https://www.youtube.com/watch?v=PGRPDLfEaHg Learn more in this quick video. Here are some more resources to explore to learn how EagleView Powered Models can help you reach your maximum accuracy potential. Our dedicated EagleView page has all the basics to get you started Our Help Center article shows you how to use EagleView imagery in Aurora Our EagleView and Aurora FAQs answer the most common questions we’ve heard from customers Have more questions? Reach out and schedule a quick, personalized demo. ### Advanced solar marketing: Generating high-quality solar leads NOTE: This article was updated in August 2024 to reflect the latest information. The solar market has never been more competitive. With all the competition, it can be difficult to stand out from the crowd and get potential customers — aka leads — to consider your business.  The process of solar lead generation is, in fact, one of the most challenging aspects of getting started in solar sales and installation. And with the average cost of solar leads approaching $2,000 in some areas, it’s critical to get it right. There are two basic ways to get leads: generating your own and buying them.  In this post, we’ll look at the benefits and drawbacks of each method, then we’ll investigate some solar marketing strategies to help you generate quality leads that turn into sales.  Solar leads: buying vs. generating There’s no sugarcoating it: Generating your own leads is exceptionally difficult. Most prospective solar customers begin to wade through the oversaturated market with an internet search.  Many people are interested in solar, but generating leads can be challenging. While it’s challenging to generate your own solar leads to land contracts and grow your business, it is possible, and can be a rewarding and invaluable tool to boost solar sales. While you might not have as large of an audience at your fingertips, generating your own leads helps ensure that the leads you get have a genuine interest in your product or service. So while the sheer audience may be smaller, generating your own leads has the potential to provide a much better ROI.  The work involved in generating solar leads can make purchasing them a tempting option. What could be more tantalizing than snatching an interested client (for a modest fee) instantly? If purchased from a reputable company, buying solar leads can yield great results. You should test out several reputable solar lead generation companies to find the best fit. Measure your results and nix lead generators that don’t offer a good ROI.  Purchasing solar leads does come with potential pitfalls, though. A lot of solar leads you buy may now be cold, or people who weren’t really interested in solar when they signed up to be contacted. In fact, According to SolarReviews, the number of solar leads for 2021 is up 25% from 2018, which means you have to be even more diligent about making sure they are “hot” — new, and actually interested in solar.  Pros of buying solar leads If a lead is good, you’ll get instant business. If you buy a “hot” lead, you can make near-instant, direct contact with customers interested in your services.  Easy-to-calculate ROI. Purchasing solar leads eliminates the nebulousness of hard-to-track marketing efforts. With a purchased lead, you simply buy and track your return on investment month after month.  Filtering “I’m ready to buy” from “Just looking around.” If you purchase quality leads, there’s a much higher chance you’ll be connecting with soon-to-be customers who have done their research and are ready to pull the trigger on solar. Cons of buying solar leads Competition can be fierce. Solar lead companies are in business to make money. The lead you get has probably been sold to several other local companies, meaning you’ll have to compete against other companies that may have purchased the same lead.  Solar leads can be expensive. The average cost of solar leads (per sale) in the U.S. ranges from $225 in North Dakota to $1,929 in California.  Pros of generating your own solar leads Cheaper. Generating your own solar leads can come with a lower price tag. Paid and organic search as well as targeted social media ads are cheap, and if done right, offer a good return.  Potential for authentic interaction. When you establish an organic lead, that lead is all yours. Plus, you’ll likely have had some prior interaction with your lead, establishing trust and rapport. Cons of generating your own solar leads It’ll take time. Whether you adopt an old-fashioned letter box drop campaign, targeted social and search ads, or a hybrid approach, generating your own solar leads will be a labor of love and might not offer a high ROI in the short term.  Potential for low quality leads. Most of your leads will probably be folks who are mildly interested, at best. You’ll spend a lot of time filtering out cold from hot leads.  ROI can be difficult to measure. Organic lead generation is by nature hard to quantify, especially if you utilize a hybrid approach of internet marketing, legacy marketing, and referrals. This makes it difficult to focus on which lead generation techniques you should emphasize.  Advanced solar marketing strategies for solar lead generation If you’re going to try to generate your own leads, you’re going to need some strategies. Certain marketing tactics can be a great low-cost, high-impact way to generate solar leads and grow your business. In fact, using a combination of paid and organic strategies, you can position yourself to connect with potential leads who are actively engaged and interested in what you’re offering.  Let’s walk through some of the more advanced steps and strategies for using marketing to help generate those invaluable leads. Not quite ready to jump into advanced solar marketing strategies? Check out our Beginner’s Guide to Solar Marketing to get started.  Buyer personas It's critical to find your target customer personas. Picture your ideal customer. What are their needs? What do they value? How do they communicate? How are they being served now, and how could they be served better? Developing a buyer persona profiles your typical or ideal customer so you can better understand your customer and therefore target lead efforts more efficiently.  You can craft buyer personas using your target demographic information such as income, age, gender, location, etc. The U.S. Census is a great resource for investigating detailed breakdowns of almost any community in the United States. Once your buyer personas are complete, you’ll be much better equipped to generate leads.  Quality content = quality leads Once you have your buyer personas, you can move towards targeting your content to them.  Your content’s first and foremost purpose is to offer a valuable service. This means providing thoughtful, useful information in the content, and can also include putting links to other quality content in your articles. If you’re going to the trouble of doing this linking, make sure to find high-quality articles, blog posts, videos, and other content that people actually want to consume. Produce good content regularly — a good goal to start is one long blog post per month. Search engines and your followers pay attention to active pages. Content is also a good barometer of where you should be focusing attention: As you produce more content, you’ll begin to notice trends (i.e. which keywords or topics are performing best).  For example, if you know your ideal customer values energy independence or the environmental benefits of solar, you can develop content they’re eager to consume. Some ideas for persona-targeted content include: Educational blog posts. Figure out what your buyer wants to know — Google Trends and other keyword research tools are great places to start — and provide quality information to help answer their questions and get them excited about your product and services. Downloadable resources. Compile a list of your persona’s most pressing questions and provide answers in a downloadable resource like an eBook, fact sheet, or infographic.  Videos. Solar can be confusing, especially for home and business owners who don’t know a lot about it. Videos can be a great way to help potential customers understand how the process works, alleviating their anxiety and making them more comfortable with the process. And because it’s your video they saw first, they’re more likely to hire you.  Case studies Case studies can be a powerful marketing tool. As you consider how to generate solar leads, case studies deserve special mention. Case studies provide a detailed account of how you exceeded a customer’s expectations. They’re an all-too-often ignored tool for building trust for your brand, but their benefits are enormous. With a case study, customers themselves tell your leads why you deserve their business, showing a real-life example of the benefits of switching to solar and, importantly, why you are the best bet for making that a reality.  Getting a case study isn’t as hard as it sounds. Tools like Case Study Buddy can help make it easier to write them, and you can attract case study subjects by offering discounts for clients who agree to be featured as your next case study. Put your case studies in easy-to-see places on your website, use them in paid search ads, and highlight them in blog posts to build organic traffic. Don’t be afraid to use case studies during sales visits, too. A potential lead may be more willing to hear your pitch if a happy customer is attached to it.  Stick with it Creating buyer personas and engaging them with useful, free content all serves one end: Landing paying, happy customers. Downloadable resources can be a great way to turn persona engagement into leads. For example, you can allow the download of a valuable free eBook only after the viewer provides a name and email address. Or you can offer free consultations or quotes, where potential leads will provide you with valuable demographic information beyond names and emails. Remember, for this content to help you out, you need to stick with it. A content strategy of blogs, case studies, video, and other resources can be a great strategy for generating high-quality leads, but keep in mind that it’s a long-term strategy.  Once you have some engaging, relevant, useful content, it’s time to get it seen by potential customers. This means search. Take the next step to expanding your business. Click above to download the Solar Sales Toolkit. Advanced paid search strategies Paid search is a straightforward way to generate your own leads, but isn’t necessarily as efficient as other solar lead gen tactics. To get started in paid search, you’ll need to be familiar with Google Ads and Microsoft Advertising (if you’re just starting out, see our Beginner’s Guide to Solar Marketing).  Paid search isn’t about ranking high in every search; it’s about showing up in the right searches. Targeting blanket or generic search terms like “best solar installers” won’t get you far, but targeting local terms your personas are searching for will. Here are four ways to make your paid Google or Bing campaign poised for success: Regularly check keyword performance. If a keyword isn't performing well within the last two to three months, get rid of it. Gain insight into how your competitors’ keywords are faring with Google Ad Auction Insights. If you don’t see one of your keywords listed, ask yourself this: Are your keywords a key differentiator driving meaningful traffic to your brand, or are they simply fluff? If you have a keyword that no one else is using but that is driving local traffic, keep it!  Target your personas. Identify what your personas are searching for and incorporate those search terms into your keywords. Google Analytics and other tools can help give you a leg up here. Focus on ad campaigns that perform. This may seem obvious, but it’s often overlooked. If one campaign is hot and another isn’t, divert funds to the one that’s converting.  Use social media. Social media platforms like Facebook, YouTube and Instagram have their own search engines, so make sure your content is optimized for those platforms. People spend a lot of time on social media, so ad placements can be very strategic here. Cross-pollinate ad content. Pay attention to ads that are getting the most traffic. Chances are, they’re incorporating elements that emphasize the benefits of solar and contain a clear call to action. Copy some of these elements in your underperforming ads. Keep a finger on trending searches. Be on the lookout for trending search queries producing clicks and conversions. Google Trends will be your best friend as you sniff out trending topics. If you see a certain search query emerge that looks promising to your business, incorporate it or its relevant keywords into your ads.  Advanced organic search strategies You can rank higher in organic search results by making your business more relevant to search engines. Organic search optimization relies heavily on excellent content and strategic link building. Link building Link building ties your web presence to other sources, telling search engines you’re a relevant and trustworthy entity worthy of searchers’ time. But link building requires a lot of strategy. The more presence your brand has on other sites, the greater your chances of being discovered by hot leads.  If your target keywords are “best solar installer,” you will likely need hundreds of links to get in the top 10 ranking. That’s a bite you don’t want to chew. Instead, narrow your keywords down, perhaps to “best solar installer in Baltimore.” Adding that extra defining word will drastically cut the competition, reducing the number of links you’ll need to rank.  Ahrefs offers estimation tools for links, as well as a suite of tools to help you narrow your keywords.   But there is a limit to link building. You can’t just populate your content with excessive external links that are only vaguely related to what you’re talking about. Oversaturating content with links in this way, hoping to boost SEO rankings, won’t help boost your rankings or appeal to viewers — and can actually hurt your rankings.  Avoid black hat SEO tactics. Black hat SEO involves techniques that violate search engine guidelines, a purposeful attempt at manipulating search engine algorithms to increase rankings. Violating clear rules set by Google and Bing can lead to penalization, resulting in decreased ranking and organic traffic.  If you would be embarrassed to explain your SEO strategy to Google, Microsoft, customers, or a competitor, your strategy is probably black hat and you should drop it. While meant to drive organic traffic, black hat SEO actually decreases rankings and long-term results. Do yourself and the Internet a favor and skip them altogether. Social media Utilizing social media platforms can be a great way to find solar leads. Social media allows businesses to connect with potential customers, build brand awareness, and share informative content. By creating a strong social media presence, solar companies can showcase their expertise and credibility in the industry, making them a go-to source for solar information. Additionally, social media algorithms prioritize engaging and relevant content, making it easier for businesses to reach a larger audience. By regularly posting about solar energy news, renewable energy tips, and success stories from satisfied customers, you can attract potential leads who are interested in learning more about going solar. Facebook is the best bet for solar lead generation, as you can easily find Facebook groups for people interested in solar or having conversations around high electricity bills, etc. Create a Facebook profile with a clear call to action and contact method. Then, spend some time in these solar interest/news groups and comment on helpful information where applicable. If you have the means to create video content, YouTube can be a strong solar lead generator as well. Take note of frequently asked questions that you get from your clients during consultations and create videos addressing these questions with your best pitch. People who are doing their research on solar will likely find your video this way. Pro tip: You don’t want to sound too sales-y or push your pitch too hard on social media groups. Instead, offer a wealth of free information that will inspire people to reach out to you for services. Conclusion Here’s a quick recap on how to generate solar leads: Diversify your approach by trying multiple solar leads businesses and lead generation methods. Buying solar leads can work, but it’s not always effective due to competition, price, and quality of leads. If you’re just starting out, it’s a good idea to try your hand at generating your own leads while also experimenting with buying leads.  Generating your own solar leads starts with crafting buyer personas.  Do the best you can to measure ROI on each method and focus on the options that turn leads into pitches, and pitches into sales.  You have a great product and provide great service, but there are more steps to making sure your solar business thrives. These marketing strategies can help introduce more people to your business. By producing the right content and promoting in a variety of ways, you can generate leads — and more importantly, relevant leads that your sales team can close.   Take the next step in learning how to grow your solar business with the Solar Sales Toolkit.  Click above to download the Solar Sales Toolkit. ### Beginner’s guide to solar marketing: 4 strategies to jumpstart your marketing (NOTE: This blog was updated in July 2024 to reflect the latest information.) When it comes to solar sales, it’s never been more difficult to stand out from the crowd. It’s also never been more important.  Our 2024 Solar Snapshot revealed that 44% of homeowners find it hard to determine if an installer is legitimate. That is a striking — and scary — statistic. It’s also an opportunity for solar companies to show that you’re one of the good ones. But how? How do you build homeowner trust, set yourself apart from the pack, and reach more prospective clients? Great marketing program is a good place to start. Here’s some strategies that can help you build your marketing program from the ground up. How to market solar Marketing is at the heart of every successful brand, organization, or cause. It’s the process of understanding what consumers need, how your offering can fill that need, and articulating the message in a way that converts to sales. In this blog we’ll describe four marketing strategies that companies just starting out on their marketing program should consider. Each requires a different amount of investment, both in time and money. We’ll give you the information you need to help make your decisions, but it’s ultimately up to you to decide which ones work best for you now, and in the future.  Before we get to the strategies, let’s start with the foundations of marketing: your company and your audience.  Know your brand You can’t sell what you don’t know. Before starting your solar marketing campaign, answer the following questions to help you craft the best solar marketing messaging: What makes your brand stand out from others? What are your brand values? How do you want to be perceived by your potential customers? Know your audience For effective solar advertising, you also have to speak the language of your target audience. Do some research to identify: Who is your target audience? What are their values? What questions and concerns do they have? What are they nervous about, and why might they be hesitant to purchase solar equipment or services? How can you address their concerns and meet their needs? If you’re having trouble getting to know your audience, Sparktoro has a free audience search tool that can help you discover more about your target demographic. You can also use Facebook Audience Insight tools to gain important insights. Why use digital solar marketing solutions over traditional sales methods? Before we dive into some solar industry marketing techniques, there’s an important question we need to address: Why should we favor digital methods in our solar power advertisement instead of traditional solutions? Of course, this isn’t an either-or situation. All potential methods of building your business are important and should be considered.  Traditional sales methodologies definitely have merits, but digital solar marketing solutions offer unique advantages that can’t be ignored.  Reach a wider audience Traditional sales strategies typically involve direct interactions such as door-to-door sales, phone calls, or physical mail campaigns. These can have a limited geographic reach and rely heavily on personal interactions that can make it time-consuming and costly to generate quality leads. Cost effectiveness Digital marketing offers affordable options that reduce physical resources, travel expenses, and person-power needs. This leads to better budget control and a more predictable return on investment that allows you to scale your efforts. Enhanced customer engagement One-time interactions with potential customers through traditional selling may not be enough to effectively nurture leads. Digital solutions facilitate ongoing engagement through content marketing and social media interactions, and personalized email campaigns. It offers a platform to share valuable content, address questions, and develop long-term relationships. Promoting the right message Conventional sales methods often involve printed materials, travel, and other activities that contribute to environmental impact. This can be seen as contradictory to the eco-friendly message of the solar industry. Digital marketing promotes sustainability by reducing the reliance on physical materials and aligns with the green ethos of the solar industry. https://aurorasolar.com/blog/solar-marketing-using-the-internet-to-grow-your-brand/ Solar marketing strategies — how to get solar leads online Now that we know ourselves and our audience, we’re ready to look at some strategies.  The world of solar sales is trending digital, so implementing effective online marketing is paramount to generating leads and growing your business. There are ultimately two methods for generating leads. Regardless of the method you use, however, social media, in particular, is a very powerful factor in sales, with nearly three quarters of people using social media when making a purchasing decision. Let’s look at four popular techniques:  Organic social media Paid social ads Search ads SEO and content marketing 1. Organic social media Social media is a great way to generate leads. The key, however, isn’t posting copious amounts of material: It’s engaging and participating in purposeful discussions.  Start by identifying what platforms your audience uses the most. For example, if you’re targeting older generations, you should look to Facebook, which is seeing most of its growth in that demographic. X and Instagram, on the other hand, are appealing to younger audiences. Other platforms such as LinkedIn, Reddit, and Quora have their own unique demographics to explore, and TikTok is wildly popular among a wide age range and largely untapped in solar marketing.  Renewable energy and sustainability are popular on all social media platforms, with many groups focused on all aspects of solar, from emerging tech, to the latest regulations, to sales techniques. This means there are great solar marketing opportunities. Check out solar groups on these platforms to get an idea of what’s out there, who’s searching for what, and what’s currently being offered. Popular solar groups include: The Renewable Energy Group (Facebook) American Solar Energy (X) Solar Energy Industries Association (SEIA) (Linkedin) r/solar (Reddit) Topic: Solar Energy (Quora) Also, make sure to check out groups from your state and local area. Organizations like SEIA have active state chapters that are worth looking into. You should link social media content to your website and blog content. That way you’re not only building organic social media leads, but also directing people to your website, where you can continue to show them the value of your services and turn them into leads. Focus on quality over quantity, though. Social media users usually know the difference between shoddy content mills and the good stuff, so purposefully engaging others with quality posts will go much farther than cranking out thoughtless content. Here are some quick tips for what constitutes quality content: Commenting on someone else’s post. If you don’t have a large social media audience, commenting is a great way to get in front of other people’s audience (plus the person will appreciate you engaging with their content). Your comment should acknowledge the original post and add new information or perspective.  Writing an original post that helps readers solve a problem or points them to useful information. When writing a post, try to start out with a short story that will pull the reader in before dispensing your advice. Being careful with tags and hashtags. A common signal for “spammy” content is when people tag way too many people and add too many hashtags (and the algorithms have picked up on this). To get the most reach, you should only tag 1-3 people in your post and use only 1-5 hashtags. Some social platforms like Facebook and X offer customer service tools to help serve and manage your customers. Potential customers can inquire about your services directly through messages or comment on your page, allowing you to follow through immediately. 2. Paid social ads Social media is a viable marketing channel, but it can be difficult to get organic leads without doing a lot of legwork. If you can spend a little more money rather than time, going with paid social advertising can be a good route to take, but you should make sure your ads are personalized to stand out from the din.  People see so many ads these days that we’ve developed what’s known as “ad blindness,” meaning, our brains don’t even see ads unless there’s something interesting or unique about them. According to a study by Adobe, 67% of consumers think it’s important for brands to adjust content based on current context. When it comes to solar, personalizing your digital ads can be done fairly easily. Paid ads show up on sidebars and news feeds of social media channels, pushing your brand front-and-center above others clamoring for premium social real estate. Most social media platforms have well-established ad services ranging from $1-10 a day. LinkedIn boasts being the #1 platform for business-to-business lead generation. If you’re targeting professionals or businesses, it’s a great place to advertise. LinkedIn has the most expensive ads on this list, so using it for B2C engagement might be risky.  If you’re wondering how to sell solar on Facebook, the platform’s Ads Manager lets you manage your entire solar ads campaign in one place. Ads Manager provides exhaustive tools to select your audience, set goals, create ads, and establish firm budgets and timelines to ensure you don’t spend more than you’re comfortable with. X is unique in that a lot of trends happen there before they hit other platforms. X’s ad platform taps into this advantage, allowing you to be among the first to engage folks at the front-end of trends and movements. X offers over 20 product options to showcase your product or service and provides powerful targeting tools to help you gain impressions with the audiences that matter most. What’s more, X’s powerful analytics tools reveal insights into impressions, engagements, and cost-per-result across your ad campaign. If bootstrapping your way through social ad marketing isn’t your thing, there are many ad agencies ready to craft marketing campaigns suited for almost any budget. 3. Paid search ads As the name suggests, with paid search ads, you pay to get in front of customers when they're searching for businesses like yours. Google is the most used search engine on the web. When people search for “solar installers near me,” they’re actively seeking your services out. These are “high intent” leads, so they’ll likely have a much higher conversion rate, which is why they may be worth spending money on. Google knows this, and offers a suite of tools and services to help get you there. Google Ads provides specialized ad solutions for sales, leads, website traffic, product and brand consideration, brand awareness and influence, and app promotion. Within these, you can select different campaign formats to showcase your product or service. Google only charges you for results, so you only pay when someone clicks on your website or calls your business. Like Google, Microsoft Advertising offers decent targeting options for your ad campaign. But it’s not quite as robust. Microsoft does allow you to target geographic location, dates, time zones, demographics, and more, all features less developed or nonexistent in Google’s service. Another advantage of Microsoft Advertising is the density of competition. You’ll be battling with far less competition on Bing, giving you a lower average cost-per-click. As always, if you’re in over your head with search engine ads, you can look into an ad agency to manage them for you. 4. SEO & content marketing Search engine optimization, or SEO, is the act of optimizing content for higher placement in search results. So, for example, when a potential client searches “solar installer in Delaware” or “best residential solar installers,” good SEO practices can help your business show up closer to the top of the search results. A concept that goes arm-in-arm with SEO is content marketing. Like SEO, content marketing is all the rage, but it can be exceedingly hard to drive traffic without a lot of investment.  Developing and building an SEO strategy and content marketing plan is far from a “beginner” marketing strategy, however. They both take deep expertise, lots of time and dedication, and, you guessed it, money. The best bet here is to not engage in either until you’re ready to hire someone dedicated to the task or have the resources to put into the effort. Those just getting into marketing their solar business should be looking for the most bang for their limited time and resources. Our advice? Focus on our first three topics (social media, social ads, and search ads) to start, then investigate SEO and content marketing as you build your marketing strategy and staff. https://aurorasolar.com/blog/solar-marketing-how-to-win-over-prospects-with-informative-solar-content/ Turning visitors into leads Now that we’ve looked at strategies for driving traffic to your website, let’s see how you can turn them into leads. After all, if they go to your site and there’s nothing to engage them, they’ll just click away, and your effort will be wasted. Lead nurturing with email marketing Once you have leads captured through your marketing efforts, the next crucial step is to nurture these prospects into loyal customers. Email marketing is a powerful tool to achieve this, allowing you to build and maintain relationships over time. As a solar services company, understanding how to effectively engage your leads with personalized and automated email campaigns can significantly boost your conversion rates and generate long-term success. Continue the conversation The first step after acquiring leads is to categorize and segment them based on their interests, behaviors, and positions in the sales funnel. By doing so, you can tailor your email content to meet the specific needs and concerns of each segment. For instance, a lead who has just shown interest in solar energy but is not yet ready to purchase requires educational content, such as articles on the benefits of solar power, case studies, or FAQs. On the other hand, a lead closer to making a decision might benefit from receiving detailed information on your products, customer testimonials, and special offers. Personalize, personalize, personalize Personalization goes beyond merely addressing recipients by their first names. It involves sending relevant and timely content that resonates with their interests and stage in the buyer’s journey. Use data from previous interactions, such as website visits, downloads, and inquiries, to craft emails that speak directly to their needs. For example, if the person viewed an article on your website about storage, make sure to send relevant information about your storage capabilities.  This approach not only keeps the conversation going but also positions your company as a helpful and knowledgeable resource. Automate the process To manage and optimize your lead nurturing efforts, leveraging email marketing automation tools is essential. These platforms enable you to create automated email workflows that trigger messages based on user behavior, ensuring timely and relevant communication without manual intervention. Here’s how you can set up an effective automated email marketing process: Welcome Series: Start with a warm welcome email as soon as a lead subscribes to your list. Follow up with a series of emails that introduce your company, highlight your solar solutions, and provide valuable educational content. Behavior-Based Triggers: Use automation tools to track user interactions, such as clicking on a link, downloading a brochure, or visiting a specific webpage. Based on these actions, tailor emails that address their interests. For example, if a lead downloads a guide on solar panel installation, send them a follow-up email with a video tutorial or a detailed case study. Nurturing Drip Campaigns: Create drip campaigns that slowly nurture leads over time. These campaigns can be designed to gradually educate your leads, build trust, and guide them towards making a purchase. Each email in the series should build upon the previous one — while at the same time not assuming the customer has read all your emails — providing more in-depth information and addressing common objections. Build anticipation for the next topic. Re-Engagement Campaigns: For leads that have gone cold or haven’t interacted with your emails for a while, set up re-engagement campaigns. These can include special offers, updates on new services, or simply a check-in to see if they need any assistance. A note on CAN SPAM One important thing to be aware of in all your email marketing is to avoid being spammy. All the techniques above will help, of course. Another critical thing to do is to comply with the CAN SPAM Act and not overburden contacts in your database who are signaling disinterest. This means making sure to have an unsubscribe button, setting up "quarantines" that isolate contacts who have not been engaging with your brand, keeping the database healthy by removing hard bounces or junk leads, and so on. https://aurorasolar.com/blog/create-a-solar-email-marketing-strategy-in-7-easy-steps/ Quick recap Learning how to market solar is a journey. In this post we’ve laid out three techniques that can help you get started, and one to avoid until your marketing program is more robust. Let’s review the key takeaways: There are multiple steps to marketing solar, including knowing your brand, knowing your audience, and choosing the best digital marketing strategies and advertising for solar. Make sure your brand messaging is consistent, from initial pitch to contract. Adopt a mix of organic and paid internet advertising and utilize social media and search engine ad tools to create advertising campaigns suited to your needs. Content is king. Make sure any content you produce on social media, in ads, or on your website is engaging for your audience Turn visitors into leads. Use tools like Lead Capture AI to make sure all your hard work getting visitors to your site turns into more quality leads for your sales team. For more information to help you get started, check out some questions your solar sales pitch has to answer, and then see how to make the most of remote solar sales. Stay tuned for the next blog in our series, on advanced solar marketing, for more information on making the most out of your marketing efforts. Have a question about solar marketing that wasn’t answered here? Schedule a personalized demo, or get the info right now by clicking the chat box at the lower right of the screen. Click above to schedule a personalized demo. Featured image by Merakist ### Put solar on it: Stade de France It’s been well documented that the Paris Olympics will be the greenest ever. The organizers have the goal of halving the carbon footprint of the games compared to previous years. From our own blog on the topic: “The organizers are targeting every source of emissions, with initiatives like low-carbon structures, renewable energy, sustainable catering, and responsible procurement strategies. They have set a target to not exceed 1.5 million tons of CO2, which is half the average carbon footprint of previous Summer Games.” A key part of this strategy involves using existing or temporary venues for a vast majority (95%) of the events. This includes the Stade de France — France’s largest stadium. It’s hosted everything from the World Cup, to the Euro Football Championship, and everything in between.  France's largest stadium, NBD. [Photo courtesy https://olympics.com/en/paris-2024/venues/stade-de-france] So, that’s already a pretty sustainable choice. And, the stadium is already getting a makeover for the Olympics. But, there is something missing. We’ll give you a hint: They’re black and they generate electricity, seemingly magically, from sunlight. Yep, the Stade de France needs solar panels. If you thought these games were sustainable already, just think of how green they’ll be with an emissions-free power plant on top of the signature stadium. To see how many panels we could fit, our partners at projetsolaire modeled out the stadium. Modeling the roof The Stade de France’s roof is as complex as it is beautiful. Its website describes the details: “Suspended from 18 masts 61m high and 40m apart, it floats 42 metres above the pitch, protecting the 45 km of stands, which are partially removable.” For solar purposes, the roof looks like a nice, gently sloped surface with some minor obstructions and those masts. (A quick disclaimer: We didn’t do structural analysis for this piece, just looked at solar access and area.) Next, we need to measure how much sunlight it gets. We can see, generally, that it looks to be surrounded by low buildings, which is promising. Our irradiance map confirms excellent solar access. The verdict? Can confirm! Irradiance for almost the entire site looks promising. In fact, with the gentle slope of the roof, even north-facing surfaces work well for panels. All right, let’s cut to the chase. Here’s what a fully paneled Stade de France looks like. We know one of the (false) arguments people hear when selling solar installations is that the panels detract from the site’s look. Well, if we may be so bold, in this case — and, in fact, in most cases — we think the panels improve the stadium’s aesthetics. And that’s in addition to the powerful message they send, and example they set. And the final piece: Just how much power does this 19,000-panel mini power plant generate? This 9.6 Megawatt installation generates a whopping 8,429 Megawatt hours per year. To compare: It could power more than 1,770 French homes for the year. (Assuming the average house in France consumes 4,760 kWh per year.) It could power more than 6,300 US homes for the year. (Assuming the typical 2,000 square foot home in the US uses 1,325 kWh per year.) A typical coal plant is 600 MW A typical 70,000-seat stadium uses 10,000-20,000 kWh on a gameday So, it’s safe to say that for Stade de France the verdict on solar is: Oui! And we can’t think of a better way to celebrate the most sustainable olympics ever. Get ready for Paris 2024 with the other blogs in our series! The Paris Olympics: An opening ceremony like no other Solar's role in the 2024 Paris Olympics The Paris Olympics: Sustainability and innovation in action Want to learn more about how Aurora can help you model and sell more solar projects? Sign up for a quick, personalized demo. ### Close more deals, grow faster: See how Skyview Ventures does it with HelioScope Since 2008, Skyview Ventures has been a driving force in the renewable energy landscape, pioneering innovative commercial and industrial (C&I) solar solutions through its subsidiary, Davis Hill Development (DHD).  With a forward-thinking approach and a commitment to using cutting-edge tools, Skyview Ventures has positioned itself as a key player in the dynamic world of large-scale solar power development. Check out the entire (free) case study below to learn more. Click above to check out the free case study. Setting the scene: the challenges In the rapidly evolving C&I solar sector, Skyview Ventures has consistently faced stiff competition and high expectations. The company needed to tackle several critical challenges: Accurate energy production projections: Vital for securing long-term contracts, accurate energy production forecasting over 20-25 years was key to ensuring financial stability and client trust. Maintaining competitive bids: Skyview Ventures had to balance offering cost-effective solutions with the best service quality to remain appealing to potential clients. Scalability and efficiency: As demand for PV installations increased, the company was pressed to scale operations efficiently. This meant managing growth without substantial cost increases or compromising project quality. Technological adaptation: Keeping pace with technological advances was essential for optimizing project design and implementation, ensuring that each proposal stood out in a crowded market. These challenges required robust strategies and innovative approaches. Skyview Ventures' commitment to integrating advanced tools and methodologies was crucial to overcoming these obstacles and enhancing their market position. HelioScope: streamlining C&I solar design When they needed a scalable solution to address their complex challenges in the C&I solar sector, Skyview Ventures turned to HelioScope. As a key component of Aurora's offerings, HelioScope stood out for its ability to dramatically enhance project efficiency and accuracy: Speed and user-friendliness: HelioScope enables rapid project modeling, allowing designers to quickly create detailed plans for both small and large projects. Its intuitive interface cuts down the time required from hours to minutes. Comprehensive capabilities: HelioScope is versatile enough to handle a range of solar systems, from compact rooftop units to expansive ground-mounted systems. This flexibility ensures that Skyview can tackle any project, regardless of size or complexity. High accuracy: With technologies like Light Detection and Ranging (LIDAR) and an extensive component library, HelioScope offers unmatched precision in solar power generation estimates. This accuracy is crucial for Skyview as it allows them to provide bankable numbers to stakeholders, ensuring confidence in the viability and profitability of each PV project. HelioScope has become an integral part of Skyview Ventures' workflow, helping them enhance their operational capabilities and remain competitive in the fast-paced solar market. It not only meets their current needs but also scales with their growing project demands. Transformative results HelioScope significantly improved the operational dynamics at Skyview Ventures, leading to notable outcomes across various aspects of their business: Streamlined design process: HelioScope allowed Skyview to manage their extensive project pipeline more effectively. By simplifying and accelerating the design phase, HelioScope facilitates quicker project completions, allowing Skyview to handle a larger volume of PV projects without sacrificing quality. Increased proposal generation and closing: Using HelioScope, Skyview Ventures can generate and close more PV proposals. This has boosted their sales and profitability, strengthening their position in the competitive solar market. Enhanced scalability and team efficiency: The user-friendly interface and comprehensive training provided by HelioScope made it easy for new team members to quickly master the system. This improvement in training efficiency allowed Skyview to scale their operations seamlessly to meet increased demand. These strategic improvements have not only boosted Skyview Ventures' operational efficiency but also enhanced their ability to deliver superior customer experiences. By streamlining their workflows and leveraging HelioScope's advanced features, Skyview Ventures has been able to provide their clients with more accurate projections, faster project completion, and tailored solutions that meet their specific needs.  This customer-centric approach, coupled with the integration of cutting-edge technology, has solidified Skyview Ventures' reputation as a trusted partner in the solar industry. Advancing solar solutions with HelioScope HelioScope has revolutionized Skyview Ventures' approach to large-scale PV projects, streamlining their design process and enabling rapid project turnaround and market expansion. Skyview's experience with HelioScope demonstrates the transformative potential of advanced technology in the PV sector, paving the way for increased efficiency and growth industry-wide.  Want to see what HelioScope can do for you? Try if for free. (Not a typo, you can really try it for free.) Click above to check out the free case study. ### PVsyst vs. HelioScope Frequently Asked Questions HelioScope and PVsyst each offer unique capabilities, but understanding their differences and how to align their outputs is essential for solar professionals seeking to maximize project outcomes. In the first post of our series — Optimizing commercial solar designs — we looked at key features of and differences between each system. We also illustrated a step-by-step example of how to align their outputs. In this post we’ll cover some of the most common questions users have about PVsyst and HelioScope. Question: What is the maximum energy difference between PVsyst and HelioScope if inputs are aligned correctly? Answer: When properly aligned, the energy output difference between PVsyst and HelioScope should be within about 1%. This involves setting up condition sets in HelioScope that mirror those used in PVsyst, ensuring high reliability in comparative energy production estimates. Question: Is it necessary to use both PVsyst and HelioScope for C&I solar design, or is HelioScope sufficient? Answer: Third-party financiers often require PVsyst for larger projects due to its recognized status as a bankable solution. However, HelioScope is accurate enough to be considered bankable and is sufficient for many projects, particularly where internal financing solutions are used. HelioScope's rapid design capabilities and accuracy make it a strong contender for comprehensive project simulations. Question: Are there training materials available for HelioScope users? Answer: Yes. A range of pre-recorded HelioScope training materials and walkthroughs are available in the Help Center. These cover various topics to help users maximize the tool's capabilities. Custom plan users also have access to hands-on training sessions with account executives and customer success managers. Question: Can HelioScope handle wiring losses and different wire gauges for larger projects? Answer: Yes. HelioScope allows users to change the gauge of copper or aluminum wire being used, which can significantly impact larger projects. Unlike some platforms that use a flat derate value, HelioScope models both AC and DC systems, enabling precise adjustments. You can also upload custom weather data sets, enhancing the tool's flexibility for various project conditions. Question: Does HelioScope support simulations for international regions like Norway? Answer: Yes. HelioScope supports international users and can provide accurate simulations for various regions, including Norway. HelioScope has a significant international customer base, with about 60% of users operating outside the United States. Custom demonstrations and support are available to address specific regional needs. Question: What is the maximum system size HelioScope can handle, and can it be used for utility-scale power plant design? Answer: HelioScope can design systems up to 15 megawatts, although the optimal simulation speed is for systems up to 5 megawatts. For larger utility-scale projects, systems can be divided into increments of 15 megawatts each. This modular approach allows for detailed simulations and aggregate production calculations. Question: Is there a way to get a free trial of HelioScope? Answer: Absolutely! You can sign up for a free trial directly on the HelioScope website without needing to provide credit card information. This allows new users to explore the platform's features and capabilities. To get more information about how to use and align HelioScope with PVsyst, as well as a detailed look at their features and differences, watch our recent webinar, HelioScope vs. PVsyst: What’s the Difference? and check out the first blog in this series: Optimizing commercial solar project designs: a comprehensive comparison of HelioScope and PVsyst. Click above to watch the webinar on demand. ### How this sales manager and his team sell 3x more storage Meet Ray Myers. In the high-energy world of solar sales, Ray and his team are shining stars. After starting as a sales representative at Michigan Solar Solutions (MSS), Ray now leads a team of high performing solar consultants. He’s the go-to guy for building trust with customers, educating them on solar and storage, training his team, and outshining the competition.  Meet Ray. One area where Ray and his team have particularly shined is in attaching storage to their solar sales. As the headline of this post says, they’ve upped their storage sales to three times the national average recently. But how? You can read all about it in the full (ungated!) case study. Below, we’ll take a look at some of the high-level takeaways. Click above to go right to the case study. The need for trust and education Ray knows that in solar sales, trust and education are as vital as sunlight. Customers need to see the light (literally and figuratively) on the benefits of solar and storage. His team needs to be armed with accurate, reliable information. If you're in solar sales, you know these challenges all too well, right? The journey to build this foundation of trust starts with overcoming significant industry challenges. Differentiation through accuracy and education At MSS, Ray’s game plan was simple but bold: differentiate through unmatched accuracy and comprehensive education about solar and storage solutions. In a crowded market with complex technology, this was no walk in the park. Overcoming challenges Ray and his team faced a mountain of challenges: Educating homeowners on high-cost, one-time purchases Understanding intricate storage solutions Ensuring accuracy in projections Navigating strict interconnection standards Ever had a customer come back because another proposal was more accurate or detailed? Missing out on the accuracy and efficiency needed to keep customers happy and maintain high referral rates is an all-to-common mistake. Other software might have led to the kind of inaccuracies that leave customers grumbling and deals slipping through the cracks. Aurora’s innovative solutions The game changer came when Ray discovered Aurora. With Aurora’s advanced tools, MSS could craft solar-plus-storage proposals tailored to each homeowner’s unique needs, automate pricing and savings calculations, and whip up accurate designs with AI and automation.  Click above to take a quick tour of Aurora's storage capabilities. Implementing the solutions Integrating Aurora’s solutions was a vital step for Ray and his team. They invested in learning the new tools and integrating the technology into their workflows. The process was smooth and efficient, ensuring compliance with regulatory standards while enhancing productivity. The effort paid off, leading to significant growth and success. Impressive results And the results? Nothing short of spectacular: 45% storage attach rate, compared to the 14% industry average 98% proposal accuracy in production estimates 70% reduction in design time, thanks to Aurora AI and automated simulation features Imagine seeing these kinds of results in your own sales numbers. These achievements boosted MSS’s reputation, solidified customer trust, and turned satisfaction levels up to 11. This one goes to 11. (Photo by Al Elmes.) The greater impact Ray's journey with Aurora hasn’t just transformed his sales process — it’s part of a bigger mission. By promoting energy independence and reducing carbon footprints, Ray and his team are making a positive impact on the environment. Each proposal now represents not just business success, but a step towards a greener, more sustainable future for all. In closing… By not using storage solutions, solar sales teams like Ray's could miss out on bigger deals and the chance to offer more comprehensive energy solutions to their customers. Ray’s story is a powerful reminder that with the right tools and a commitment to education and accuracy, the sky's the limit in solar sales. See all the results and get more actionable tips, check out the full case study (again, it’s ungated). Click above to go right to the case study. ### Optimizing commercial solar project designs: a comprehensive comparison of HelioScope and PVsyst As solar energy continues to grow as a sustainable power source, the tools used for designing solar projects play a critical role in optimizing both the efficiency and accuracy of these systems. Two of the most widely used software tools in the commercial solar industry are HelioScope and PVsyst. Each offers unique capabilities, but understanding their differences and how to align their outputs is essential for solar professionals seeking to maximize project outcomes. This was the topic of our recent webinar — watch it here after reading through the blog below to get even more details. Click above to watch the webinar on demand. HelioScope vs. PVsyst: key differences and functionalities PVsyst is the gold standard for detailed and highly accurate simulations. It requires more detailed input, making it complex and time-consuming. However, the depth of its analysis provides a high confidence level in the simulation outcomes, which is crucial for the final stages of project design and securing financing. HelioScope is an innovative tool for modeling the performance of PV systems, even under non-ideal solar conditions. It aligns closely with PVsyst results, showing a less than 1% difference when assumptions are aligned between the two tools. HelioScope effectively also combines multiple shading effects, such as row-to-row and nearby object shading, to achieve consistent outcomes, and accurately reflects the expected shade response improvements and the minor insertion loss from optimizers. HelioScope is renowned for its user-friendly interface and rapid output capabilities. With HelioScope, solar professionals — even those without deep engineering expertise — can quickly generate accurate, efficient commercial solar project designs, saving time and money.  Key features and comparison Near-shade profile PVsyst includes support for estimating near-shading impact but requires experience to choose the appropriate desensitizing factor for accurate modeling. This factor is crucial for simulating the performance of crystalline silicon modules. HelioScope generates a shading profile, creating geolocated bitmap images that show shading throughout the year. This detailed visual representation aids in estimating shading accurately. Transposition model (Perez or Hay) PVsyst uses the Perez model for accurate diffuse irradiance data and the Hay model for robust performance when diffuse data is approximate. HelioScope similarly allows users to choose between the Perez and Hay models, ensuring flexibility in how irradiance data is transposed to the plane-of-array (POA). Mismatch estimation HelioScope models the effect of irradiance and temperature variability within the array, considering cloud cover and module orientation variations. It uses IV curve mismatch to accurately simulate these variations. PVsyst applies adjustments to irradiance and power conversion stages but does not model from the module level up for intermediate PVsyst designs. It accounts for common module-level effects through these adjustments. Diode modeling PVsyst models individual bypass diodes within a module, providing detailed insights into module performance under various shading conditions. HelioScope represents module performance with a single-diode IV curve driven by effective irradiance, simplifying the modeling process while maintaining accuracy. Aligning outputs for accuracy and efficiency Aligning the outputs of HelioScope and PVsyst ensures that projects initially designed with HelioScope can meet the rigorous standards required during the final analysis with PVsyst. Key to this alignment are: Consistent project inputs: This ensures both tools use identical project details such as location, orientation, and mechanical configurations. Weather data and environmental factors: It’s crucial to choose the same weather dataset and adjust for environmental losses, such as soiling. HelioScope users can adjust soiling losses to account for local conditions like snow in northern regions. Equipment specifications: Matching the specifications and settings of PV modules and inverters across both platforms ensures consistency in performance estimates. Practical implementation in HelioScope In a recent webinar, we discussed how to ensure that HelioScope’s outputs closely align with PVsyst’s. This includes adjusting settings for array configurations, inverter specifications, and even the specific environmental conditions reflected in the weather data used. For instance, ensuring that the ground coverage ratio and the tracking strategies in HelioScope match those in PVsyst can significantly affect the accuracy of the output data. To align HelioScope with PVsyst, users can create a condition set within their profile, which is particularly useful for standardizing assumptions across different projects and regions. The process involves several steps: Creating project location & details: Navigate to the library section in HelioScope, click on “profiles,” and select "new profile." For example, you can create a profile for a specific region, such as the northeast. Setting soiling losses: Enter soiling losses by month. This parameter can also be adjusted to reflect light-induced degradation (LID) or bifacial module efficiency gains. For instance, add 1.5% for LID across all months or subtract 3% for bifacial gains. Adjusting cell temperature: Switch to the diffusion model, equivalent to what’s used in PVsyst, to ensure consistency in temperature-related performance impacts. Managing mismatch and AC losses: Set the mismatch percentage based on historical data and scientific studies to model real-world output variances. Enter any AC losses, including transformer and wiring losses, to ensure all potential losses are accounted for. Selecting the transposition model: Choose the Perez or Hay model, depending on the standard used in PVsyst. Configuring Tracking and Backtracking: Adjust the tracking settings to match those used in PVsyst and enable backtracking if applicable. By following these steps, solar professionals can build standardized profiles in HelioScope that align closely with PVsyst’s assumptions and settings, ensuring consistent and accurate output predictions. HelioScope's accurate system designs produce reliable production numbers you can stand behind. With features like module-level array modeling, real-time cloud computing, and integration with user-friendly mapping and structural design tools, HelioScope stands out as a significant technical advancement in PV system performance modeling. For solar professionals, understanding how to utilize and align HelioScope with PVsyst can be crucial for streamlining the design process without compromising on the accuracy needed for project approval and financing. By effectively using both tools, designers can optimize their workflows, improve project turnaround times, and ensure high accuracy in solar production estimates, making the most of both rapid design capabilities and detailed analytical precision. Click above to watch the webinar on demand. Now that we understand the basics, our next post looks at some HelioScope and PVsyst frequently asked questions we’ve been hearing in the field. Stay tuned! ### Roofing and solar: How solar can boost your roofing business NOTE: This was originally posted in 2022. We updated it in June 2024 to reflect the latest information. Like peanut butter and jelly or salt and pepper, roofing and solar go incredibly well together in a contracting business portfolio.  If you’re considering whether to add solar to your roofing business, you’ve come to the right place… and at the right time.  After over a decade of growth, the solar industry shows no long-term signs of slowing down. By 2032, the global PV market is projected to reach $300.3 billion, with a compound annual growth rate (CAGR) of 12.3%. If you’re interested in learning what it takes to try to get your piece of the solar pie, this guide will show you the basics involved in getting started. The benefits of solar for roofing businesses Incorporating solar energy services into your current business model can lead to more revenue, a greener reputation, and a competitive edge in the roofing industry. Below are just some of the core reasons why roofers are increasingly adding solar installations to their service portfolios. Increased revenue opportunities In the growing solar energy market, roofers are well positioned to add PV installations to their services. Already experienced in rooftop home upgrades, you can seamlessly integrate solar into your existing offerings. Despite concerns about the technical difficulties involved, advancements in PV technology and the industry's growth make it more feasible than ever for contractors to start installing solar panels.  Whether you're selling PV installation services to existing customers or using them to attract new clients, adding solar to your portfolio can help create new revenue streams and improve your bottom line. Enhanced brand image and reputation Embracing renewable energy is crucial in a world already feeling the effects of climate change. Offering both roofing and solar services highlights your commitment to reducing carbon emissions and improving local air quality. This eco-friendly approach can make customers more likely to choose your company over others or recommend your services to friends, family, and neighbors.  In effect, combining both services allows you to get paid for making the world a better place. Competitive advantage in the roofing industry Despite its growing popularity, solar energy remains a relatively new concept for many homeowners. This presents an excellent opportunity for roofers to educate customers on the benefits of clean and renewable solar power. By outlining financial incentives for installing solar and demonstrating how a PV system can reduce energy costs, you can establish yourself as a knowledgeable resource committed to providing value.  Offering related services together with bundled pricing and efficient project timelines can help you win over customers who might otherwise consider separate roofing and solar contractors. Become a credible solar resource for your community Adding solar installations to your list of services isn't automatic. However, getting started and developing the necessary technical, financial, and regulatory expertise may be easier than you think.  Below are some insights to help you navigate this transition. Addressing common solar power myths Some homeowners believe that adding a PV system could damage their roof, leading to leaks, floods, or worse after installing a rooftop array. In reality, roof damage from solar panels is very rare. As a company offering both roofing and PV systems, you can ensure complete control over the installation process to guarantee high-quality results. When integrating solar energy into your business model, you might feel the need to know every detail about how it works and worry about extensive upfront research. Thankfully, you can roll out your solar energy services in various ways to best fit your business — whether this means through strategic partnerships, joining a dealer network, subcontracting, and more. Dealer networks are one of the quickest ways to get started in solar. Click above to learn more Developing solar expertise You can break into the solar industry through two primary approaches: forming partnerships or pursuing training and certification. Many roofers find it beneficial to start with one method before transitioning to the other.  Here’s how you can begin. Partnering with established PV experts If you’re ready to start selling solar immediately, consider partnering with existing PV experts. These partnerships can streamline your sales, design, and operations processes, significantly enhancing your efficiency and customer satisfaction. Rather than starting your own PV division, you can collaborate with an established solar company in your area to access local expertise and generate new referral business in a mutually beneficial relationship. Working together, roofing and solar contractors can offer complementary services and, in some instances, bundled financing for roof and solar projects. To find reliable solar partnerships, reach out directly to highly reviewed companies online or seek out established PV businesses at your next local trade show. When discussing potential partnerships, emphasize the unique benefits of collaborating with your roofing company — whether it’s a large pool of leads, superior services, or decades of experience in the home contracting business. Solar training and certification Starting a solar business internally requires more setup and training – both on the sales and installation sides. However, numerous resources are available to help streamline this process and ensure your team is well-prepared. Earning a North American Board of Certified Energy Practitioners (NABCEP) certification can significantly boost your credibility. This certification is the most widely recognized standard for solar industry professionals today. By helping your key employees earn a NABCEP certification, you can enhance your company's reputation and appeal to potential customers and business partners. In 2016, the Department of Energy launched the Solar Training and Education for Professionals (STEP) program, funding PV education initiatives across the country. These services, including those provided by The Solar Foundation (for veterans) and the Electric Power Research Institute, continue to be valuable resources for training your staff. Using these training programs and certifications can equip your team with the necessary skills and knowledge to excel in the PV industry, ultimately leading to higher customer satisfaction and business growth. Navigating solar regulations and permitting If you perform PV installations in-house, you'll also need to navigate the solar permitting process effectively. Understanding and managing these solar regulations is crucial for ensuring compliance and delivering value to your customers. In many jurisdictions, you need a licensed electrician to obtain PV permits and apply for grid interconnections. Navigating the permitting process with local building authorities and utilities can be complex, but it is essential for ensuring your business can offer efficient (and legal) PV services. For more information, please see our guide to Getting Started with Solar Permitting. Click the image to learn how to take the pain out of solar permitting — well, a lot of it anyway... Marketing and promoting solar services As a roofing and solar contractor, you have a unique advantage in marketing directly to your existing customers. After earning their trust with high-quality workmanship on a new roof, you can inform them that the best time to add PV panels is right after a roof replacement, as both products will last for decades. Whether you are launching a new solar division, partnering with a PV installer, or simply adding solar systems to your list of services, maintaining consistent branding is key to your campaign’s success. You don’t need to reinvent the wheel; instead, leverage your existing marketing channels such as fliers, online ads, and trade show promotions to advertise your solar services. In addition to traditional marketing campaigns, explore unique channels to promote local solar energy services. Creating online profiles on PV industry sites and partnering with related companies, such as panel manufacturers, suppliers, and solar financiers, can enhance your digital reputation and attract new business. Here are some additional solar sales resources for your marketing team: The Solar Software Must-Haves for Sales Pros Solar Masters: How to Supercharge Your Sales Teams With AI and Automation The 5 Solar Buyers: A Guide to Persona-Based Solar Sales Final thoughts on expanding your roofing business with solar Combining roofing and solar is a win-win for your business. It increases revenue, enhances your brand’s reputation, and provides green energy solutions to both new and existing customers. By offering PV systems, you set yourself apart from competitors and cater to growing demand for renewable energy. While integrating solar services may seem daunting, the right tools can make the transition smooth and manageable. Aurora Solar offers a suite of features designed to simplify the process, including: Design Tools: Create accurate and visually compelling PV designs quickly and easily – while in the field with customers. Sales Mode: Streamline your sales process with customizable proposals and financial analysis. Expert Support: Access training and support to ensure your team is equipped to sell and install solar systems effectively. By leveraging these tools, you can confidently expand your services and tap into the booming renewable energy market. To see how Aurora Solar can help, request a free demo of our powerful design and sales software today. ### What to know about DTE’s net metering replacement in Michigan NOTE: This was originally posted in 2022. We updated it in June 2024 to reflect the latest information. For residential solar customers in the US, net metering policies — which traditionally pay the owners of solar PV systems the retail electricity price for the energy their solar installation sends to the grid — have been crucial in making solar a good investment. Increasingly, however, utilities are changing their net metering policies (also called net energy metering or NEM). These changes often mean reduced savings for solar customers–and potentially a harder sale for solar installers. And unfortunately for solar customers in Michigan, most (if not all) of their utilities no longer offer true net metering. Michigan’s DTE Energy net metering program was essentially made null back in 2019 — which has had a significant detrimental impact on Michigan solar customers’ savings and payback periods. According to Bridge Michigan news, their new program increased the solar payback period from 9.4 years to 13.3 years on average. In this blog, we quantify the impacts of DTE’s net metering replacement policy, with a case study of a typical home, as well as an analysis of impacts for customers at different levels of energy usage and solar offset (percentage of the customer’s usage that their solar installation offsets). We conclude with some solar design guidance to help you maximize the value for your solar customers in DTE territory. See how one solar leader is making solar work for customers in Michigan in this Michigan State Solar case study. Click above to see how Michigan State Solar makes solar worth it for customers in Michigan. What happened to DTE's net metering in Michigan? DTE’s net metering program is no longer in effect. But, there is still an incentive program for solar customers who produce excess energy in Michigan. We’ll explain, but first, a little back story. Back in 2016, the Michigan legislature passed bills requiring the Michigan Public Service Commission (PSC) to phase out net metering for solar in Michigan and create a new replacement program.  After rejecting a prior proposal from DTE which would have paid solar customers only the wholesale rate for the solar energy they sent to the grid, the PSC approved DTE’s new proposal on May 2, 2019, which some had called a “middle ground.” DTE electric was the first utility to propose a solution, which included a Distributed Generation (DC) program tariff, called the “Rider 18 Distributed Generation Program.” The new program took effect on May 9, 2019 for new solar customers; existing solar customers were grandfathered into the original net metering program for 10 years. DTE serves southeastern Michigan/greater Detroit area with electric service. The dark blue and gray indicate the area affected by this change.   What replaced DTE’s net metering program? DTE’s new Distributed Generation Program (Rider #18) replaced its Solar Net Metering rules (Standard Contract Rider #16). The core of the new Distributed Generation program is called an “Inflow–Outflow Mechanism,” which requires a smart meter that measures and sums power flows both to the grid and from the grid. Now, the inflow-outflow mechanism does still credit solar customers for the extra electricity their panels produce. However, presumed transmission costs will now be subtracted from that energy payout. As the Bridge reported, Rider 18 led to a credit decrease of about 45 percent compared to the DTE net metering program. In the current implementation, inflow and outflow are measured in netted hour intervals; in the future, they may be instantaneous (or second-long netting) which will generally be worse for the customer. What are inflow and outflow? Inflow is defined as the electricity that is delivered to the customer from a utility distribution system. Outflow is defined as the excess solar energy not used by the customer that is then sent out to the general electric grid. How can Michigan solar customers access DTE’s Rider 18 program? Any DTE customer who installs a solar panel system can apply for the Rider 18 Distributed Generation Program. The program has five levels that are tiered based on size of project, with most residential installations falling under Level 1 (systems up to 20 kW in size). Here’s how to gain access to interconnection: Step 1: First, the solar project size must be determined, the solar design drawings finalized and other required interconnection information gathered. Step 2: Fill out DTE’s interconnection application and pay the appropriate application fee. For projects under 150 kW, it’s a $50 fee, and goes up to $500 for over 1 MW. Step 3: Wait for DTE to review your application. You’ll hear back within 10 business days whether or not your project has been approved and which track it will be on or if you need to revisit the application stage. Step 4: Once approved, DTE will go through “initial review screens.” Essentially, they will come inspect your project and make sure it’s safe, compatibile, and up to regulation standards. If your project does not pass this stage, DTE will notify you about how to proceed. Step 5: If all is good, DTE will extend an interconnection agreement. You’ll need to sign and return this agreement along with the interconnection payment, which is an undefined amount of “the cost of interconnection facilities and distribution upgrades,” according to DTE energy. You’ll have 20 business days to return the interconnection agreement. Step 6: Wait for DTE to sign the interconnection agreement, which should happen within 10 business days. Step 7: When your project is complete and has passed all necessary inspections, you’ll let DTE officials know so they can verify everything is good to go. DTE’s NEM replacement: Structurally similar to California’s NEM 2.0 The structure of DTE Energy’s Distributed Generation rider is similar in many respects to California’s NEM 2.0 plan. Let’s look at a breakdown of how these policies compare: DTE’s rider also stipulates that credits from excess generation can’t be used to pay off accrued generation charges, just like California’s NEM 2.0 rules don’t allow export credits to pay off accrued non-bypassable charges. Modeling DTE’s DG rate in Aurora If your company is dealing with DTE net metering changes in solar designs, how do you make sure that you’re accurately predicting your cost/benefit analysis? Aurora Solar software allows solar contractors to precisely model the finances of solar installations under different utility rates, so we used Aurora's financial analysis platform to understand the impacts of this rate. Here's how you can model the finances of your DTE customer's solar project. How to model finances of DTE project for a customer? Because DTE is effectively labeling the distribution component of its rate as a “non-bypassable charge,” users of Aurora’s Utility Bill Savings calculator can model this rate by selecting an export rule of “Fixed Reduction” and setting the reduction to the value. Looking at DTE’s latest ratebook, that value is $0.07024/kWh for the D1 Residential Rate, and approximately $0.06886/kWh for the D1.2 TOU rate. Cost to the solar customer Let’s look at how this change can impact an example house near Ann Arbor. Our model house consumes 9,000 kWh per year, the state average, and we fit a 5 kW system that offsets about 55% of the home energy usage, after losing 13% of sunlight to shade. We assigned this customer to Rate D1, which is the standard tiered residential rate for DTE Electric Co. A house with solar near Ann Arbor, Michigan modeled in Aurora. Click the image to learn more about designing in Aurora. Under DTE Energy’s old NEM rules (Rider 16), the system would have saved the customer 63% of their annual electric bill, or about $71 per month. The bill-offset percentage is higher than the energy-offset percentage because the system offsets the energy usage of higher-cost tiers first. When we changed the advanced rules to include an export reduction of $0.07024 per kWh, based on Rider 18 in the latest DTE rule book, we found that the customer’s bill savings fell to only $55 per month, or 49% of their bill offset. The chart also shows that the customer’s bill is above the fixed fee of $7.50 each month; this is due to the customer paying their distribution charges. Impact of policy changes on customers Of course, to fully understand the impacts of these policy changes we need to understand how they impact all types of systems, not just this one scenario. In the subsequent section, we share findings on the financial impact of these changes based on our analysis of billing impacts for customers across a range of energy usage levels (6000 kWh to 18000 kWh per year) and a range of energy offset levels (30% to 110% per year), an approach we’ve used in other studies. Design considerations: Design for the optimal energy offset percentage Let's take a look at how to design PV systems to optimize value for your customers under these new net metering rules. While California's NEM 2.0 provides a handy analogy for understanding how these rules work, the design rules of thumb for Michigan solar designs under this policy are very different than for designs under California's NEM 2.0. In California’s NEM 2.0 setup, the small size of the non-bypassable charge (less than 3 cents per kWh, with overall rates above 20 cents per kWh) coupled with the functionality of minimum monthly bills meant that installers could slightly oversize a PV system to maximize a customer’s net present value, even though the customer would be paying a larger post-solar bill compared customers whose solar installations were installed under NEM 1.0. California, of course, has moved on to NEM 3.0. Click above to learn more about it. DTE’s net metering change is much more significant than California’s NEM 2.0. Distribution accounts for nearly half of the rate for a full-service customer on the D1 rate schedule, and represents a majority of the off-peak charges for the D1.2 time-of-day rate. In addition, DTE has a monthly service fee that can’t be offset by solar credits, but also doesn’t act as a mechanism to absorb some of the distribution costs. As a result, a customer’s Net Present Value is maximized at a much smaller system offset level than the original net metering tariff: around 85% for a D1 customer and around 65% for a Time-of-Day customer. The charts of Net Present Value below also paint a bleak picture of the value of systems — the value falls nearly 50% and in some cases is now worse than investing the money at 3% somewhere else. Comparisons of the relationship between Net Present Value and percent of energy consumption offset by solar for customers of DTE's D1 rate and D1.2 Time of Use Rate, respectively. The asterisk icon represents the maximized NPV under the old net metering rules called Rider 16 (gray) and the new net metering replacement called Rider 18 (colored) lines. As a note, our model assumed that the customer doesn’t use electricity for heating or hot water based on EIA data, but when we ran the analysis with those appliances included in the energy profile, we found that the customer had a lot less self-consumption of solar energy, resulting in higher distribution charges and an overall worse financial outcome. Customers who have a consumption profile that doesn’t align well with solar production will need special consideration when looking at their bill savings. Model Assumptions: 3% discount rate for NPV; $3/W pricing. Load profiles were generated with the Aurora consumption profile estimator, and production profiles were for a generic unshaded PV system facing south and tilted at 20 degrees. Conclusions Revisions to net metering policies can have significant effects on solar customers and DTE’s changes in Michigan are no exception. The impact of this new DTE structure on solar customers is quite severe, because the non-bypassable distribution portion of the rate makes up a large proportion of the overall electric tariff. Solar installers in DTE service territory will need to be careful to not overpromise customers on savings, because unwary residents would find it a shock that a 90% energy offset system will actually only save them 60% of their bill. Installers and other groups will also want to be wary of upcoming rule-making and new policies that are working their way through state legislatures and public utilities commissions. Unlike California’s NEM 2.0 policy or Nevada’s NMR-405 policy (barring the temporary rescinding of NEM programs), the DTE rate case is not a smooth transition away from standard net metering policy. Have specific questions we didn't answer here? Schedule a chat with one of our experts. ### Solar plus roofing: A step-by-step guide Solar power's growing impact in the US is undeniable, even if you don't work on roofs all day. However, for professionals in the industry, there are lucrative opportunities to combine professional solar installations with their existing roofing services. As residential solar adoption climbs, your roofing customers are likely already inquiring about recommendations for and assistance with adding photovoltaic (PV) systems. While incorporating solar offerings may seem challenging initially, the reasons to do so are numerous and compelling – chief among them being the potential to significantly boost your company's revenues. Roofers are uniquely positioned to expand into the solar installation market. This guide outlines straightforward steps to efficiently integrate PV products and services into your existing roofing business operations. Doing so transforms every roofing job into a chance to increase profits while contributing to a more sustainable future. How to add solar services to your roofing business While there is no single solution that works perfectly for every business, adding solar services to a roofing company involves many considerations to effectively launch, market, and grow in the renewable energy space.  Assessing your roofing business First things first, start by evaluating your current resources and capabilities. What equipment and personnel do you have on hand? Which PV services do you plan to provide in-house? Conduct an internal audit to identify your strengths and areas needing improvement. Next, assess demand for solar services in your area. Are there many companies already excelling in this space? What about your competitors? Are there nearby solar and roofing companies you could potentially partner with? Understanding the local market landscape will help you identify opportunities and potential challenges. For roofing companies or contractors new to PV installations, there's a lot to learn. Continuously evaluate and refine your processes to enhance your organization's efficiency and provide greater value to your customers. Researching solar service providers Starting a PV business involves understanding the entire solar installation process from start to finish. To begin, create a roadmap for scaling your solar and roofing services within your organization.  Consider the following steps: Evaluate providers: Check customer reviews, certifications, and service agreements of potential solar partners. Look for providers with a proven track record and solid industry experience. Outsource when necessary: Initially, outsourcing tasks can help deliver the best customer experience. For instance, you might outsource solar system design, permitting, and installation while you focus on sales and customer relations. Quality matters: Prioritize high-quality PV equipment and reliable services. While low-priced equipment can save money upfront, poor quality can harm your reputation. Ensure that all solar products come with strong warranties. Partnering with solar service providers The solar industry offers numerous partnership opportunities that can help you scale your PV installation services efficiently: Explore partnership programs: Many solar providers offer dealer programs and other types of partner agreements. Evaluate these options based on experience, certifications, and success rates. Negotiate terms: Remember, partnerships are a two-way street. Don’t hesitate to negotiate contract terms to fit your business model. Discuss pricing, support, and service expectations to ensure a mutually beneficial relationship. Customize service packages: Find a service package that integrates seamlessly with your existing operations. Whether you need just the equipment or a sub-contracted team for installations, tailor the partnership to meet your needs. Learn all the basics about solar dealer networks and how they can benefit you. Key considerations To ensure successful integration of PV services, keep these tips in mind: Stay informed: Continuously educate yourself about the solar market and emerging trends. This knowledge will help you make informed decisions and stay competitive. Focus on customer experience: Providing excellent customer service is crucial. Ensure timely and effective solutions for each new solar customer, from design to after-installation maintenance. Play to your strengths: Use your roofing expertise to assure customers about the quality of your combined roofing and solar services. Highlight the benefits of having a single provider for both services. By carefully researching providers and forming strategic partnerships, you can effectively integrate PV services into your roofing business, boosting your revenue and contributing to a sustainable future. Training and certification Before installing a single PV panel, significant training and certification are necessary to ensure your installations are both safe and legal. In the US, certification from the North American Board of Certified Energy Practitioners (NABCEP) is the most widely recognized seal of approval for solar professionals. Importance and benefits of certification Obtaining NABCEP certification is crucial for several reasons: Credibility: certification enhances your credibility and assures customers of your expertise Legal compliance: ensures compliance with state regulations, which may require NABCEP certification Financial incentives: certification may qualify your customers for rebates and other financial benefits Steps to certification Understand the requirements: Most NABCEP certifications require testing and/or prior experience. Some states may require NABCEP certification to obtain a solar business license or to help customers apply for rebates. Choose the right certification: NABCEP offers several levels of certification and accreditation, each with different timelines, training courses, and benefits. Determine which certification aligns best with your business goals. Complete the training: Enroll in NABCEP-approved training programs. These programs provide the necessary knowledge and skills for safe and effective PV installations. Pass the exam: Prepare thoroughly and pass the required exam to obtain your certification. For more detailed information on certifications, visit the NABCEP FAQs. Building a solar services team Whether you plan to hire skilled solar technicians or train your existing roofing staff for PV installations, building a solar services team is essential for fulfilling new business orders. A successful solar services team must prioritize attention to detail, safety protocols, and best practices at every step. This team should guide customers seamlessly through the sales, design, and installation processes, ensuring a high level of satisfaction and quality. Hiring and training Hire skilled professionals: Consider hiring experienced solar technicians who can lead your team and provide valuable on-the-job training. Train existing staff: Invest in training programs for your current employees to equip them with the necessary skills for PV installations. Online courses and workshops can be highly effective. Outsourcing for efficiency If you choose to outsource any functions — such as using expert solar design services — you can focus your energy on fulfillment. This allows you to spend more time in the field installing systems, engaging with new customers, and scaling your roofing and solar business. By assembling a dedicated solar services team, you can ensure your business is well-equipped to handle the demands of the growing renewable energy market.  Deciding what services to offer In addition to installations, whether done in-house or outsourced, you also need to decide what range of services you might offer. These services can significantly enhance your value proposition and help you stand out in the competitive solar market. Fortunately, tools like Aurora Solar can help streamline these tasks, even for complete newbies. For example, your installation teams can render hyper-accurate 3D PV system schematics using Aurora's Design Mode, ensuring precise planning and execution. Below are some additional solar services worth adding to your roofing business. Offering solar financing options Although you may already offer financing, scaling a roofing business with solar services requires exploring other options that may be helpful for your customers. For example, you need to become an expert in your customers’ financing options and understand the differences between PV system ownership, solar loans, power purchase agreements (PPAs), and solar leasing. Tools like Aurora’s Sales Mode can help you walk your clients through all their financing options, comparing total costs and value in interactive presentations. This ensures your customers make informed decisions that best suit their financial situations. Learn more about the different type of financing you can offer customers. Obtaining necessary permits and approvals For each new solar installation, you must know the local regulations and permit requirements for every project. Compliance with building codes, electrical codes, and utility regulations is necessary for grid-tied PV systems, involving applications and approvals both before and after an installation. Getting started with solar permitting can be challenging if you serve a wide range of cities and counties, as each locale may have its own guidelines for setbacks, aesthetic requirements, and engineering specifications. Using Aurora's Plan Sets Service, your roofing and solar teams can generate permit-ready solar designs with just a few clicks, simplifying the process significantly. See how Simply Solar reduced their plan sets turnaround time to under 24 hours. Providing ongoing maintenance and support Much like roofs, solar panels can last for 25 years or more. Knowing this, you must be prepared to address customer inquiries and resolve ongoing issues if anything goes awry post-installation. By developing a dedicated solar customer support program and scheduling regular maintenance inspections, you can establish long-term partnerships with your customers. This solidifies your status as a reputable roofing and solar business and ensures the longevity and efficiency of the installed PV systems. Marketing and promoting solar services Once you have the right team in place and have an idea of the services you want to start with, it’s time to promote your solar offerings. There are many strategies to effectively market your new services:  Reach out to past clients Start by leveraging your history of satisfied customers. Reach out to past clients and let them know you now offer solar services. Personalized emails or calls can be very effective. Create a dedicated web presence Regardless of the marketing mix you choose — whether it’s online advertising, social media, home shows, canvassing, etc. — make sure you have a dedicated web page or section on your website where prospects can learn more about your solar services. This should include detailed information, FAQs, and contact options. Crafting your sales pitch While the idea of saving money and adding home value can entice leads, your solar sales pitch needs to address specific questions to capture interest and convert prospects into customers.  Make sure to clearly communicate: Why solar makes sense for them: Highlight the financial savings, environmental benefits, and potential increase in property value. Why your company is the best fit: Emphasize your experience in roofing, the advantage of having both roofing and solar services under one roof, and your commitment to quality and customer satisfaction. Why now is the time to go solar: Point out current incentives, rebates, and the long-term benefits of installing solar panels sooner rather than later.  Software that can help Aurora can help ease your transition into solar, and set you up for success once you’re rolling. Our tools increase solar design accuracy and enhance the customer experience, ultimately leading to higher conversion rates. With features that streamline the sales process and provide precise, visually compelling proposals, Aurora Solar can help you stand out in a competitive market. Want to see how? Schedule a quick, no-pressure demo to learn more. Recap and next steps Adding solar PV services to your roofing business can be a complex process, but it is well worth the effort for the potential increase in sales, revenue, and business growth. By assembling the right team, forming strategic partnerships, leveraging effective tools, undergoing thorough training, and providing comprehensive services, you can scale your roofing business with high-quality, sustainable solutions for new and existing customers.   Leverage advanced tools like Aurora Solar to streamline your operations and enhance your customer offerings. Our software can significantly ease your transition into the solar PV market, even if you are a complete beginner. Dipping your toes into the solar pool as a roofing company? Let’s chat. Schedule a quick, personalized conversation to get your questions answered. ### 3 reasons solar is the answer with Alex Honnold At our recent Empower conference, Alex Honnold — yes that Alex Honnold — spoke about the role solar can play in our energy transition. While you may know him from Free Solo, his NatGeo series Arctic Ascent, or any of his many other projects, his Honnold Foundation is a fierce advocate, and supporter, of solar. The Honnold Foundation “believes in solar as a proven, environmentally sound solution to global energy poverty, and we award grants to community organizations whose projects are innovative, equity-focused, and have the potential to shift the narrative on what’s possible for energy access worldwide.” Honnold took some time off from climbing El Capitan (again) to talk with Aurora CEO and Co-Founder Chris Hopper about a variety of topics, from climbing, to his inspiration, to, yes, solar’s potential and where it fits in to “building a brighter, more equitable world for all of us.”  You can watch the full discussion here. (While we loved his solar insights, our favorite part might be how casually he mentioned that he climbed El Capitan the day before, and was climbing it again the day after. NBD.) Click above to watch Alex Honnold's full keynote (and every other Empower session). To get you warmed up, here are three reasons why he thinks solar is the answer to so many of our energy needs. (Answers are lightly edited for content and clarity.) Solar eliminates the middleman (plants) "So much solar energy hits the Earth. Every day it seems like, why would we go through plants? Like why use plants as a middleman when you can go straight from the sun, you know? Why use ancient, prehistoric plants that have been fossilized and then burn them at great detriment to the environment and human health when you could just use the sunlight directly?" Solar can serve (almost) everyone "There's so many parts of the world where there are just never going to be power plants and there are never going to be power lines. I've been on several climate expeditions in sub-Saharan Africa, for example. And, you go to remote rural communities — no one is ever building power lines here. And yet these communities can still be served by solar. "There are almost a billion people on Earth without access to power. And as the world decarbonizes and transitions to cleaner energy, there's still hundreds of millions of people without access to power. That's partially why I've been supporting solar projects philanthropically, because I feel like even as the world makes the necessary changes, there are still people left behind." Solar can go anywhere "You can put solar basically anywhere, ideally while minimizing the impact on the natural world, because there's just so little nature — like real nature — left. When you think of things like mountaintop removal [for coal mining] and things like that… that's so crazy when you can just put solar on the tops of all these buildings that already exist and already have a huge footprint. Solar is such a natural, obvious solution… "I'm all for protecting natural spaces as much as possible, and there's so much undeployed rooftop space in the US. Anytime you fly, you see giant box stores everywhere and you're like, 'Why aren't each one of those big buildings a freaking power plant?' They can be, and probably will be in 10 or 15 years." These are just three of about 1,000 takeaways from the discussion. It’s well worth watching, or listening to on your way to your next customer (or adventure).  Want to learn more?  Watch any session from Empower on-demand for free See what the Honnold Foundation is doing Get all your questions answered with a quick, no-pressure demo ### Optimize your ROI story with solar + storage modeling for energy arbitrage With evolving net-metering regulations and time-of-use rates, battery storage is quickly becoming more than a backup plan — it can deliver real ROI for solar customers. While battery self-consumption helps, there's now a next step that can save homeowners even more on their electric bills: energy arbitrage. In this article we'll look at exactly what energy arbitrage is and how it can help solar customers save more money (and help solar installers sell more). Solar and storage: energy arbitrage Battery storage systems paired with solar can provide a unique opportunity for the property owner to save more on their utility bill than a standalone-solar installation — or even a battery that operates in a self-consumption mode. The key concept is charging the battery with PV energy when it’s less valuable to sell the excess energy, and then discharging the battery only when it’s cost-effective to do so. The process of withholding energy in the battery and using it when it’s more valuable is termed "energy arbitrage", and the end result is an increase in the value of energy generated by the PV system. The basics: utility rates and net metering policies Not all installations will benefit from an energy arbitrage dispatch model — there are a few prerequisites. In addition to having an inverter that can control the battery appropriately, energy arbitrage requires a time-differentiated rate structure, where the owner pays more for electricity during some hours of the day, and less in others. These are commonly referred to as “time-of-use rates” (TOU rates). A less common, but possibly more valuable energy arbitrage case is when the price of energy sold to the grid is higher during certain times of the day, something found in the summer export schedules for California residents in the Net Billing Tariff (also known as NEM 3.0).  Click the image to learn more about energy arbitrage. Energy arbitrage with TOU rates “Charge low, discharge high” Many utilities have TOU rates that feature peak pricing during the evening or occasionally morning hours, say 6pm-9pm in the summer when the customers are using a lot of energy for cooling, or 6am-9am in winters when customers’ aggregate demand is greatest. Customers pay more to use electricity during these time windows, which means they can increase the value of solar PV generation by storing it in a battery and using it during these peak TOU windows. For example, if a customer would receive 10 cents per kWh of electricity sold to the grid in the middle of the day, but instead they could store it in a battery until the peak TOU window and offset consumption that would have cost 28 cents per kWh later in the day, they save 18 cents per kWh.  In the example below, our energy arbitrage modeling demonstrates how customers can save their energy for when it gives them the best savings. Notice how during the 5pm hour, their consumption is met by solar (in yellow) and the grid (dark red), even though the battery is completely charged to 100%. Then, you can see that between the hours of 6pm and 8pm, the homeowner’s consumption is fulfilled by the battery (demonstrated in dark blue) instead of the grid during the peak TOU hours, when electricity is more expensive. This is the magic of energy arbitrage: It attempts to avoid discharging the battery when there is little earned value. In the above example, the battery avoids discharging before 6pm, since doing so is not valuable enough. Energy arbitrage with high export rates Certain net metering policies, like California’s Net Billing Tariff, include a separate export rate with values that encourage system owners to sell energy to the grid during hours with high demand. The current price structure has high-value discharge hours in summer evenings, when grid demand is especially high. During these windows of opportunity, a battery system can discharge at its maximum capacity and generate a large amount of bill credits for the system owner, which are then used to pay off utility bills later on. For example, from 6-7pm in September, exporting 1 kWh of electricity to the grid results in $3.74 of credits, while exporting that same kWh at noon earns only $0.04 (yes, you read that correctly). What about self-consumption? A battery system operating in energy arbitrage mode may result in more grid consumption than a self-consumption battery, either because it attempts to reduce battery discharge to preserve battery life or sends more energy to the grid. Note that when the system owner has flat rates, the result of self consumption and energy arbitrage should be the same — both modes provide the same value. How to size a solar and storage system with energy arbitrage for NEM 3.0 The big question is: What’s an ideal combination of PV system size and storage capacity?  For areas where the value of energy arbitrage is driven by TOU pricing, the battery needs to be large enough to cover the customer's load during the peak TOU hours. A larger system will have diminishing returns, but don’t fret if the battery packs are too large — they’ll become right-sized as the battery ages. For the California NEM 3.0 scenario, the upper size of the system is no longer constrained by the customer’s load during TOU hours — a customer can continuously add on more PV capacity and storage capacity and dispatch it to the grid during peak export price hours to earn more bill credits. The limiting factor here is how much remaining bill the customer has for offsetting, since the credits can only be used to offset bills and aren’t paid out in cash to the system owner.  The table below shows an example house in Fresno, which has PG&E’s Net Billing Tariff. The low value of midday exported energy means that even though the PV system produces 100% of the home’s kWh load on an annual basis — with only 42% of that energy is self-consumed and the remaining 58% is sold to the grid — the customer only saves 53% of their utility bill.  Note that for this particular customer profile under PG&E E-ELEC at the time of this writing, the average cost of grid energy is $0.51 / kWh. In the PV-only scenario, about half of the energy goes to the grid (valued based on the export rate) and half is self-consumed (valued at mid-day prices). As long as the system levelized cost of energy (LCOE) is below 27 cents per kWh, it’s beneficial to install solar even if it isn’t paired with a battery system. Let's look at three September scenarios to illustrate energy arbitrage's benefits a little more. We can see below that the 1-battery self-consumption system charges from excess PV energy in the morning, and discharges it as soon as possible in the evening — starting in the 4:00pm hour. Adding on one generic, 13.5 kWh capacity battery pack in self-consumption mode increases bill savings because self-consumption of PV energy goes up to 72%. Switching that same battery system into energy arbitrage mode slightly reduces self-consumption but increases bill savings, thanks to more optimal control. However, in the images below you can see that while there’s a decent-sized battery capacity, the system can’t output enough power to fully take advantage of peak export prices from 6pm-8pm. Switching that same battery system into energy arbitrage mode slightly reduces self-consumption but increases bill savings, thanks to a more optimal control. In the 1-battery, energy arbitrage system, the system still discharges to meet some of the loads during peak TOU hours. However, you can see that it then attempts to export as much power to the grid as possible from 6pm-8pm during high-value export hours. Finally, adding on more batteries — or simply more output capacity with a bigger inverter — allows the system to export even more energy to the grid during the power hours, which greatly increases the value of the PV energy. If we double the battery quantity, bill savings increase, and we can see that the 2-battery system with energy arbitrage almost brings the customer’s bill down to the fixed monthly charge — their summer credits are enough to offset bills for most of the rest of the year. Ultimately, there is no convenient, universal sizing rule for batteries. In general you’ll still want to stay around 100% energy offset, have enough battery storage capacity to use up most of the excess PV in the middle of the day, and have a high enough power output rating to either meet the home loads or to send a significant portion of energy to the grid. In closing Energy Arbitrage is a great way to provide homeowners more return on their solar + storage investment — and it can help you attach more storage to your solar sales. If you'd like to learn more about exactly how it works, get in touch. We'd love to model it out for you. Ready to get started? Click here to sign up with Aurora without talking to anyone. ### Under one roof: Integrated PV + racking design for efficiency and accuracy Ask any solar installer and they’ll tell you that solar design and racking design are two halves of the whole.  In the dynamic world of solar design, racking plays a critical role in shaping the efficiency and effectiveness of every installation. But rarely do you find a tool or system where these two halves come together to enable a seamless design and installation. That’s why Aurora Solar is proud to announce the launch of our racking partner ecosystem — where solar design and racking design finally live under one roof. Our first set of racking partners includes: Pegasus Solar: Pegasus is the nation’s fastest growing solar mounting manufacturer.  The company partners with distributors, contractors, installers, and homeowners to improve every aspect of installation. Pegasus SkipRail saves the average crew 5 tons of material, 2 miles of rail, and 1,500 roof penetrations per year. It’s simple, hassle-free, watertight for life. IronRidge: The IronRidge Design Assistant tool ensures you can build a code-compliant and high-performing system regardless of location and environmental forces. Design Assistant will guide you through several project phases — including design, quoting, permitting, and installation.  EcoFasten: EcoFasten, an Enstall Company, has established a reputation for being one of the industry’s leading innovators by providing expert solutions for mounting solar PV on any roof. EcoFasten’s broad portfolio of solar rooftop mounting systems and attachments stems from the direct needs of solar PV installers. EcoFasten takes pride in providing the right solution for every application. SunModo: SunModo is a U.S. company headquartered in Washington that is focused on innovative racking and mounting solutions for professional solar installers. They are energized every day by a desire to make solar installation easier, more reliable, and more affordable. Their commitment to innovation can be seen across their entire product line, which includes more than 30 industry-shaping patents. The integration of solar and racking design isn't just a convenience — it's a necessity. The layout of solar panels is a crucial factor in maximizing energy output and precise racking designs can drive cost and time savings during the installation process. The right solar and racking design will ensure the long-term success of each installation. With Aurora's ecosystem of racking partner applications, this process becomes effortless.  Harnessing the power of integrated solar and racking design, installers can: Streamline and scale post-sales workflows Boost accuracy by minimizing data loss and errors Enhance efficiency and consistency across systems Generate a complete bill of materials with solar and racking components Because several software tools are used throughout the solar lifecycle, seamless integrations are key to unlocking the full potential of solar projects. With Aurora’s ecosystem of racking partner apps, we're streamlining workflows and minimizing errors — ensuring accuracy from design to implementation. With this unified racking and solar design, solar installers can work with unparalleled efficiency and accuracy. Join Aurora and all of our racking partners as we revolutionize solar design, driving innovation and sustainability forward. Explore the possibilities and experience the difference for yourself. Ready to learn more? See how to use the racking apps in Aurora. ### The Paris Olympics: An Opening Ceremony like no other The Paris Olympics is celebrating a lot of firsts. Alongside Tokyo 2020, Paris 2024 is one of the first Olympics to achieve gender parity and use (super cool) recycled materials for its olympic medals. But Paris stands out as the first Olympic host to cut its carbon emissions by half, and by offering an unprecedented open-air, inclusive Opening Ceremony with athletes parading on boats down the River Seine. In the third installment on the Paris Olympics blog series, we’ll take a look into the Opening Ceremony's innovative approach and extensive sustainability efforts undertaken to mark this momentous occasion. The River Seine serves as the Opening Ceremony venue. Photo: paris2024.org/en/ceremony/ The Opening Ceremony: A historic setting For the first time in Olympic history, the Opening Ceremony will not take place in a stadium. Instead, Paris is taking the bold step of hosting the ceremony along the Seine. The choice of location underscores a commitment to making the Olympics accessible to a broader audience, expecting to attract hundreds of thousands of spectators along the riverbanks and bridges of Paris. The River Seine runs through the heart of Paris and is intertwined with the city's cultural and historical identity. By using the river as the centerpiece for the Opening Ceremony, the organizers of the 2024 Olympics aim to showcase the beauty and iconic landmarks of Paris to the world, creating a memorable and distinctly Parisian experience. The route passes by famous monuments such as Notre Dame Cathedral, the Louvre, and the Eiffel Tower, providing a stunning backdrop for the event​​​​. Paris has undertaken significant efforts to clean the river, making it a symbol of ecological renewal. By highlighting the Seine in such a prominent manner, Paris 2024 sends a strong message about the importance of waterway conservation and urban ecological projects​​. The River Seine: An ambitious €1.4 billion clean-up Paris has the goal of making the Seine clean enough to swim in for the first time in 100 years. Paris’ €1.4 billion, historic clean-up was motivated by the desire to make the river clean enough for competitions and other activities planned for the Olympic Games. (July 15, 2024 update: No events will be held in the Seine.) Beyond the Olympics, by summer 2025 the plan is to have multiple open-air swimming areas accessible to the public. How are they doing it?  The ambitious cleanup project involves a comprehensive and multi-faceted approach. Authorities have targeted homes upstream and houseboats on the Seine that were discharging sewage directly into the river, mandating their connection to Paris' sewage network. This was part of an Olympic law adopted in 2018, which also includes improvements to sewage treatment plants on the Seine and its tributary, the Marne​​. A large portion of the clean-up budget was allocated towards developing a new storm drain system and a massive underground storage tank capable of holding 45,000 cubic meters of water. This will help mitigate overflow during rainstorms, aiming to substantially reduce sewage discharge into the Seine. A celebration of French culture and global unity The Opening Ceremony on the Seine. Photo: paris2024.org/en/ceremony/ The river-based Opening Ceremony embodies a blend of tradition and innovation, setting new standards for how the Games can engage with urban environments and the global community. Breaking away from the tradition of stadium-bound ceremonies creates an inclusive approach to the opening ceremony, allowing more people to witness the ceremony first-hand.  The decision to utilize the heart of Paris as the venue underscores a desire to bring the celebration closer to the people, making it a truly public event in ways previous Olympics have not achieved. Are you ready for Paris? Check out the rest of the series to catch up: The 2024 Paris Olympics: Sustainability and innovation in action Solar's role in the 2024 Paris Olympics Featured image by Luca Dugaro. ### Solar dealer programs 101: How to build As a successful solar business, you know it’s not easy getting to the top. There’s marketing, prospecting, creating proposals, and selling systems, of course. Then there’s the actual design, sourcing parts, coordinating installations, and getting them approved. Every project in a solar company's portfolio is time-intensive and requires significant attention to detail. Now that you have these processes in place and are managing your installs like a pro, maybe you’re ready to take on more business, enter a new area of service, or expand your footprint in other ways. If so, maybe you’ve considered starting a sales dealer network. After all, there are other companies out there facing the same time and resource constraints you are — a network can provide complementary expertise and help you scale faster.   While it can seem like a big lift — and it is — standing up a dealer network can help you expand your reach, introduce solar to more customers, and ultimately make more money. You just need the know how, the right tools, and, of course, the right partners. There's still a lot of opportunity for solar, starting a dealer network can help you expand your footprint. In this series, we’ll look at what it takes to start a successful dealer network, from the basics, to the tools you need, to how to get a jump on succeeding. In this post, we’ll get started with the basics: What dealer networks are, and what your potential partners are looking for. What are solar dealer networks?  Much like in the car industry, where authorized local businesses sell nationally known products, solar dealer networks connect top photovoltaic (PV) brands or installers to their end consumers through a “network” of qualified dealers — sales-focused companies or individual contractors.  In the ever-changing landscape of the US solar industry, dealer networks are becoming a big part of the nationwide businesses that deliver PV systems from well-known solar brands to customers within designated service areas.  Get all the solar dealer network info fit to print in our Guide to Solar Dealer Networks (ungated!). Click above to get the ungated guide. How does a solar dealer program work?  Also known as solar “partnership programs” or “dealer programs,” solar dealer networks consist of sales organizations (“dealers”) that close deals on behalf of PV brands and installers.  For large-scale dealer networks, the PV manufacturer, distributor, or installer will have an application process that a solar business must complete to be a part of a brand’s partnership program. There may also be fees and product training as part of the onboarding process.  Many of today’s top solar manufacturers and brands offer dealer programs, with a wide variety of contract structures, tiered membership levels, and unique value propositions available.  Starting a dealer network can be a great way to expand your business. To illustrate how a typical solar dealer network operates, here is a look at the business model’s three key players. Installer or Manufacturer: At the top of the pyramid, the solar brand — whether it's a manufacturer, large installer, or other company — controls the program details and is responsible for accepting or rejecting applicants. Although companies offer various levels of support, most dealer network programs are designed to help solar businesses with the majority of their project operations, including everything from leads, sales, and design to hardware sourcing, logistics, and installation. It even includes things like financing and after-sales customer support. Dealers: Once accepted into a dealer network, a solar sales business or “dealer” can begin selling the PV energy systems using components and systems available through the partnership. Talking directly to property owners, it is the dealers' responsibility to design and sell solar energy systems that work for their customers within the parameters of their network partnership agreement. Customers: At the end of the dealer network chain, the end consumer (or customer) is the property owner, person, or business that will actually be benefiting from the solar power production. Depending on the level of support offered by a network program, customers may be able to contact their dealer or the solar brand directly to ask questions or request service for their PV system.  Why companies join dealer networks If you’re considering starting a dealer network, you need to know exactly why other companies would want to join up. By partnering with a strong solar brand or installer like you, dealers can focus on things like lead gen and sales. Selling within a dealer network lets sales reps confidently talk to customers about the quality of the system that will be on their property, while also guaranteeing a great experience through third-party support for project logistics, financing, and warranty agreements. By offloading some (or all) of their company's back-end project operations to the resources within a dealer network, partners can spend more time on the growth aspects of their business like marketing, hiring new employees, and educating customers about their PV systems. Solar dealer network pros and cons  Of course, it can be tough for partners to give up control of certain aspects of their business. Here are some other pros and cons of dealer networks, as seen through the eyes of dealers. ProsConsAccess to high-quality solar productsDealer networks are not always accepting new businessesStreamlined installation servicesLimited flexibility in terms of product options and project controlConnected customer financing optionsMembership or dealer expenses may impact your profit marginsTiered memberships to match the needs of your businessPossible competition within your network against similar dealersTraining and ongoing support from industry expertsLower levels of autonomy and decentralized business controlIncreased credibility, branding, and marketing opportunities Essentially, sales organizations see solar dealer networks as a great way to join forces with an established brand to deliver high-quality customer solutions. By operating within a solar dealer network, they can streamline many aspects of ongoing operations and run a lean solar business designed for sales and growth. On the other hand, they may also worry that joining a solar dealer network could limit their ability to provide unique customer solutions, or that product options or contract agreements might restrict the possibilities they can offer.  It’s your job, then, to make the pros compelling, and minimize the cons. But how? That’s the subject of the next blog in our series. You can find the other entries here: This post — Solar dealer programs 101: How to build Foundations of a solar dealer program: How to launch Software tools for solar dealer programs: How to scale To learn more, please visit our dedicated page for channel managers. And if you have any additional questions about dealer networks, schedule a quick demo or simply click the chat box at the bottom right and a real person will respond. Click above to go to the guide. ### Just landed... EagleView imagery: Let's jump in A few weeks ago, Aurora and EagleView announced an alliance that will bring EagleView imagery into Aurora for all Aurora customers.  The idea behind this partnership is that you’ll get yet another layer of accuracy and precision for designing and selling within Aurora, letting you develop highly accurate project proposals and designs decreasing the need for a site visit. Aurora with EagleView imagery provides customers with the most high-resolution aerial imagery options so solar sales and design teams can prospect, plan, and validate even more solar projects. Aurora customers now have the most extensive array of premium imagery available on the market. At the time, we posted a blog detailing many of the basics. Now that EagleView’s top-down orthogonal imagery is available directly in Aurora, here are the questions we’re getting asked most about it. Is EagleView imagery available directly in Aurora? Yes. EagleView’s top-down orthogonal imagery is now available directly in Aurora’s Sales Mode and Design Mode, to all Aurora customers. Go directly to the Aurora-EagleView partner page to learn more. Is there an extra cost for EagleView imagery? No. This high-quality aerial imagery is available to all Aurora customers at no charge. What are the benefits of EagleView’s HD imagery? We’d argue that the true benefits are too vast to list here, but some of the big ones are: It covers 94% of the US population Its coverage includes the 50 top US housing markets that are updated annually It provides 70X more detail than satellite imagery, reaching sub 1-inch resolution Will Aurora AI work with EagleView imagery? Yes. And, it’s important to remember that Aurora AI quality is directly related to the quality of the imagery being provided. For the best Aurora AI results customers should select the highest quality image that is available. Will Aurora’s EDS team be using EagleView imagery? Eventually. Our EDS team is scheduled to have access to EagleView imagery sometime early this summer.   How does that help me? Features are nice, of course, but what really matters is how they help your business. EagleView will provide: Access to more project sites: Covering 94% of the US population, the top 50 US housing markets, and more, puts you in position to use Aurora for more projects. Even more precision in your designs: Reaching sub 1-inch resolution means your designs will be even more accurate. Confidence when prospecting and planning: The best in solar and imagery means with Aurora + EagleView you’re getting over 30 years of combined experience from two trusted industry leaders. How exactly do I use it? We have a Help Center article dedicated to how to use EagleView imagery in Aurora. We’ll keep it updated with all the latest information. We also have a page that explains more. https://www.youtube.com/watch?v=PGRPDLfEaHg Watch this quick video to learn more. Have questions that we didn’t answer here? Reach out and we’ll be happy to help. Ready to try it for yourself? Sign up here. ### Solar's role in the 2024 Paris Olympics As the world gears up for the 2024 Summer Olympics, there's a growing buzz around the city's groundbreaking approach to sustainability, aiming for carbon neutrality by leveraging 100% renewable energy sources.  Anchored by France’s sustainability laws, which mandate that all new public buildings incorporate at least 50% bio-based materials, the Paris 2024 Olympics is poised to redefine sustainability in big sporting events. The event’s main energy supplier, EDF, plays a crucial role in this vision, ensuring that both the games and the COJO (Olympic Committee’s headquarters) are powered entirely by renewable energy. The event's main energy supplier, EDF, plays a crucial role in this vision, ensuring that both the games and the COJO (Olympic Committee's headquarters) are powered entirely by renewable energy.  This blog delves into the heart of Paris 2024's solar energy strategy, a key component of their broader sustainability framework. We’ll explore how innovative solar solutions are being integrated into the fabric of the Olympic infrastructure, setting a precedent for future global events. Creating one of France’s largest solar farms for the Olympic Games Image courtesy: https://www.a234.fr/en/projects/olympic-aquatics-centre-paris-2024/ The Aquatics Centre is the sole new permanent structure built for the Paris Games. Envisioned by a collaboration of Bouygues Batiment Ile de France, VenhoevenCS, and Atelier 2/3/4, the Centre is a testament to the Olympic values of innovation and sustainability. Notably, it features over 4,680 square meters of photovoltaic panels, making it one of the largest urban solar farms in France. This significant incorporation of solar power not only meets the Centre's energy needs but also highlights the potential for renewable energy in supporting large-scale sporting venues. At the heart of the Centre's design is the emphasis on bio-based construction materials, particularly its notable timber structure, which seamlessly blends with its green surroundings. This approach not only aligns with the Olympic ethos of minimizing environmental impact but also enhances the venue's aesthetic and ecological harmony Key features of the Aquatics Centre include: Sustainable Materials: Using bio-based materials and a timber framework, it complements the natural landscape, contributing to a reduced carbon footprint​​. Renewable Energy: The Aquatics Center will use 90% renewable or recovered energy, with a solar roof covering 25% of all required electricity, equivalent to the power use of 200 households​​. Water Efficiency: Innovative water management strategies are employed to significantly reduce fresh water use, with 50% of water being recycled​​. Upcycling Initiative: Furniture in the Aquatics Centre is made out of wood waste from the construction site and other demolition sites, and all tribune chairs are designed from 100% recycled plastic collected from schools in Saint-Denis​​. Biodiversity Enhancement: The design of the Aquatics Centre includes space for a hundred trees to be planted, improving air quality, stimulating biodiversity, and creating new ecological connections​​. Community Engagement: Designed to transition into a multi-sport public facility post-Games, it promotes health and wellness through a variety of sports and events, ensuring long-term community benefits Image courtesy: https://www.rougerie-tangram.com/en/project/centre-aquatique-olympique/ The Aquatics Centre is more than just a sports venue; it's a future-proof investment in the Saint-Denis community, designed to be both accessible and integrative, fostering a vibrant and inclusive neighborhood. With comprehensive facilities that go beyond water sports to include soccer, basketball, climbing, and more, it's set to become a cornerstone of local engagement and healthy living, opening its doors to the public in the summer of 2025. Image courtesy: https://www.e-architect.com/paris/2024-paris-olympics-aquatics-centre-building Other Paris 2024 solar projects Beyond the innovative Aquatics Centre, Paris 2024’s sustainability efforts include the Transport Mall and a unique floating solar power plant on the Seine River. This floating installation, with its 400 square meters of photovoltaic panels, is capable of generating 78 kWc, enough to power the equivalent of 94 apartments in the Olympic and Paralympic Village. In addition to the floating solar plant, the Transport Mall will feature a temporary canopy equipped with photovoltaic fabric. This canopy serves dual purposes: providing shade for athletes and generating electricity for nearby buildings. Following the Games, the photovoltaic canopy will be repurposed, reflecting the ongoing benefits of the infrastructure developed for the Olympics. Solar and the transformation of Les Quinconces Unlike past Olympics, which often left host neighborhoods burdened by underused facilities, Paris 2024’s Olympic Village aims to create a long-term vision for community benefit. Managed by a consortium of Icade Promotion, Caisse des Dépôts (Banque des Territoires), and CDC Habitat, Block D of the Olympic Village emphasizes environmental sustainability and high energy efficiency.  A key feature of this sustainability initiative is the installation of solar panels on real estate projects within the village, powering public spaces with green energy. Complementing this, the construction of a geothermal power plant is expected to supply 68% of the village's energy needs with local and renewable sources. Post-Olympics, Block D will transition into a mixed-use development, providing a range of housing options, 25 to 40% of which will be affordable housing, promoting social diversity and accessibility in the housing market. The focus on sustainability and clean energy in the construction and design of these buildings ensures that residents will live in energy-efficient homes with lower utility costs and a smaller environmental footprint. The transformation plan includes the development of community amenities such as schools, shops, offices, and green spaces that will enhance urban biodiversity, improve air quality, and reduce the head island effect in the city. By creating a balanced mix of residential, commercial, and recreational spaces, "Les Quinconces" will foster a vibrant community life. The redevelopment of Block D into "Les Quinconces" neighborhood is expected to stimulate economic growth in Saint-Ouen-sur-Seine, attracting new businesses, creating jobs, and inviting investment. This transformation underscores Paris 2024's commitment to leaving a legacy of sustainability, social cohesion, and economic vitality, benefiting the local community long after the Games have concluded. image courtesy: https://olympics.com/en/news/paris-2024-athlete-village-behind-the-scenes By connecting all venues to a grid supplied by renewable sources, Paris 2024 is poised to avoid the equivalent of 13,000 tonnes of carbon emissions, setting a new standard for environmental responsibility in global sporting events.  Setting a new sustainability standard The integration of solar power into the Olympic infrastructure not only highlights a commitment to sustainable practices but also signals a shift towards hosting large-scale events in harmony with the environment. The 2024 Olympics will not just be a celebration of athletic excellence but also a testament to sustainable engineering, with solar energy playing a crucial role in energizing the events. The significant increase in France's solar energy capacity, marked by a 30% growth to 3.15 GW in 2023 — with a substantial portion stemming from photovoltaic systems under the national self-consumption scheme — underscores the country's progress toward renewable energy adoption. This growth provides a foundation for the solar-powered infrastructure of the Olympics. The Paris 2024 Olympics' embrace of solar power is a pivotal moment in the intersection of sports, sustainability, and innovation. As the world watches the Olympics this summer, they will also witness a triumph of green engineering, inspiring a future where sustainability and global sporting celebrations go hand in hand. Check out the other posts in this series: The 2024 Paris Olympics: Sustainability and innovation in action The 2024 Paris Olympics: An opening ceremony like no other Featured image by Luca Dugaro. ### GANs vs. Diffusion Models: Putting AI to the test Here at Aurora Solar, we take roof modeling very seriously. We even have a dedicated team of highly trained designers who support our customers with on-demand roof models via our Expert Design Services offering, and we’re always looking to improve. Our team created our own artificial intelligence (AI) and computer vision models after years of creating models. Today, our customers leverage these powerful AI capabilities using Aurora AI.  Just for fun — and, to help improve our understanding of generative models more generally — we’ll explore generative adversarial networks (GANs) vs. diffusion models in today’s blog post. Key takeaways: GANs and Diffusion Models compete in generating realistic roof images from input labels. Diffusion Models surpass GANs in realism but require significantly longer runtime. Future integration of diffusion models holds promise for improving roof-modeling pipelines. A bit of background Over the years, we’ve gathered insights from over half a million roof images meticulously modeled by our Expert Design Services team, including labels for each roof face, tree, and obstruction — including vent pipes, skylights, and others. For each roof, we have labels that look like these: Using this comprehensive database of highly accurate training data, our team has developed and deployed our own AI and computer vision models.  Today, our customers simplify roof design by using Aurora AI. For any site entered into the system, our roof modeling pipeline takes the roof images and LIDAR data as input to automatically output 3D roof models for our customers. To help improve our understanding of generative models more generally, we can also investigate the inverse problem: Can we take the labels as inputs and generate a realistic roof image?  In the field of computer vision, this problem is known as image generation. Historically, this problem has been tackled by generative adversarial networks (GANs). But now another new type of network, called diffusion models, is an option for image generation tasks — and these models exceed the performance of GANs.  Problem statement The task we’re investigating is conditional image generation: Given roof face, obstruction, and tree labels generate a realistic image of the roof. Given roof faces, obstructions, and tree labels, the model should generate a realistic image of the roof. How a GAN is trained A generative adversarial network works by training a pair of networks: a generator and a discriminator. The generator is the network that generates the fake images. The discriminator, on the other hand, is a classification network that looks at an image and classifies whether it is real or fake. Both networks are trained simultaneously, with the discriminator trying to classify real and fake images correctly and the generator trying to fool the discriminator into classifying its fake images as real. The generator generates fake images, while the discriminator tries to distinguish real images from fake ones. As the discriminator improves at telling apart real and fake images, so do the images the generator produces. (NOTE: The number of training epochs is the number of times a model works through the entire dataset. Each epoch, the model sees every image in the dataset once.) Images generated by generator over time. Pros and cons of generative adversarial networks GANs have transformed the field of artificial intelligence by generating new, synthetic instances of data that are indistinguishable from real data. However, they’re not perfect. Below are some of the biggest advantages and disadvantages to using GANs for image generation. Pros of GANs Strong ability to generate high-quality, realistic images, videos and voice recordings. Contribute significantly to image enhancement and content creation. Facilitate unsupervised learning, allowing for the discovery of patterns without labeled data. Cons of GANs Require substantial computational resources and expertise to train effectively, making them less accessible.  The realism of generated content can be a double-edged sword, leading to ethical concerns such as creating deepfakes. May struggle with mode collapse, where the generator starts producing a limited variety of outputs, undermining the diversity of generated data. How a diffusion model is trained Conversely, to train a diffusion model, we first take an image and gradually add noise to it over many steps until it is indistinguishable from an image of pure noise: Gradually adding noise to an image until it is just pure noise. (From https://developer.nvidia.com/blog/improving-diffusion-models-as-an-alternative-to-gans-part-1/) Then, the network is trained to perform the reverse process: it predicts a slightly less noisy image given a noisy image at each step. Diffusion Model Cat is unimpressed. By repeatedly applying the diffusion network to its own predictions, we can go from an image of pure noise to a realistic noiseless image. Pros and cons of a diffusion model  Diffusion models have gained a lot of attention in the AI field for their ability to generate highly detailed and coherent images, video, and audio. But with their advantages come disadvantages as well: Pros of diffusion models Capacity for producing high-quality outputs that often surpass GANs in terms of realism and diversity Skilled at handling complex distributions, making them versatile for various applications. A more reliable training process than GANs, avoiding the issue of mode collapse. Cons of diffusion models Require significant resources for training and generation, which can limit accessibility. Generating data through iterative denoising is much more time-consuming compared to direct generation methods used by GANs. GAN vs. diffusion model: results Here is a comparison of outputs from each method: As you can see, the diffusion model’s outputs are better and more realistic. The GAN outputs have visible unrealistic artifacts, and neighboring buildings are not modeled as realistically as well. Using the Frechet inception distance to measure realism The Frechet inception distance (FID) is a common metric used to evaluate the realism of generated images. The lower the score, the better and more realistic the images are. After about seven days of training*, the GAN achieved an FID of 40.2, while the diffusion model achieved 31.3, meaning that the images generated by the diffusion model match the distribution of real images better than the GAN’s. These metrics corroborate what we see in the images above. (* Each model was trained for seven days on an NVIDIA A100 GPU.) Runtime One drawback of diffusion models is that they take much longer to generate images than GANs. For instance, it takes our GAN about two minutes to generate 4,000 images, while it takes the diffusion model two days to do the same. This is a speed difference of more than 1,000x! Having said that, one is able to trade runtime for image quality with the diffusion model by using fewer denoising steps. For example, if we want to generate images 40 times faster with the diffusion model, then the FID increases from 31.3 to 55.9. How the models respond to input changes One other thing we were curious about was how the models would respond to changes in the input. We moved an obstruction across the image, and this is how each model’s output changed. Here's the moving obstruction input: Here's how the GAN output changed: And here's how the diffusion model output changed: We can see that the GAN’s outputs are a lot more unstable than those of the diffusion model, which makes for a more interesting GIF, but suggests that the generation is a lot less controllable. The diffusion model’s outputs hardly change except for the moving obstruction itself, whereas the entire GAN image changes as the obstruction moves. Why it matters To provide some background, we have a dataset of hundreds of thousands of roofs that we trained these generative models on. We've seen the different results of different generative models (both GANs and diffusion models) above. Our roof-modeling pipeline, which takes roof images and LIDAR data as input and automatically outputs 3D roof models, is trained on the same dataset. Secondly, diffusion models were invented for the purpose of generating realistic images, and are currently primarily used for that. But our team is looking into whether they could be used to improve the results of our roof-modeling pipeline as well. Conclusion As computer vision literature and our own findings suggest, diffusion models can indeed produce realistic images that match and even outperform GAN-generated images. However, diffusion models take much longer to generate images than GANs. Over the next few years, we will hopefully see developments that speed up the generation of images with diffusion models. Acknowledgments Many thanks to Maxwell Siegelman for implementing and training the diffusion model. Thanks as well to Sherry Huang for her feedback on this blog post. FAQs GAN vs diffusion model  How fast is a GAN compared to a diffusion model? GANs are generally much faster than diffusion models when generating images, because GANs use a generator and discriminator network to generate images, while diffusion models require multiple iterations of a diffusion process for each image. For example, our GAN takes about two minutes to generate 4,000 images, while the diffusion model takes two days to do the same. This is equivalent to approximately 0.03 seconds and 40 seconds respectively per image, or a speed difference of more than 1,000x. Is diffusion better than GANs? It really depends on which application you’re using and for what. Diffusion models may be best for tasks valuing high-quality, realistic outputs and diversity. But in situations where computational efficiency is important, GANs might be preferred. Ultimately, to decide between diffusion models and GANs, you should carefully consider the project's objectives, available resources, and the specific challenges that each technology best addresses. Why do diffusion models not suffer from mode collapse? Mode collapse is a phenomenon where the generator produces limited or repeated samples. This is more likely to happen with GANs if the generator finds a particular pattern or subset of the data that consistently fools the discriminator. Unlike GANs, diffusion models are less prone to this issue because they use an iterative refinement process that gradually improves the generated images, rather than attempting to produce them all at once. Diffusion models also don’t rely on a discriminator to guide the generator, which further minimizes mode collapse risk. References and further reading Improving Diffusion Models as an Alternative To GANs, Part 1 | NVIDIA Technical Blog [2006.11239] Denoising Diffusion Probabilistic Models What are Diffusion Models? | Lil'Log Introduction to Diffusion Models for Machine Learning Featured image courtesy of Project Sunroof. ### Solar plan sets in 24 hours? See how Simply Solar does it Over the past two decades, Simply Solar has emerged as a key player in the Bay Area's renewable energy sector. Recognized for their expertise in custom solar system installations, they wanted to enhance their operational efficiency and customer service. This led to a strategic partnership with Aurora, with the goal of streamlining their processes from sales to installation with innovative technology. In this blog, we’ll focus on one particularly… detailed… process that vexes many in the solar industry: plan sets. As always, a picture is worth a thousand words, so let’s start with this graphic of Simply Solar's turn around time for plan sets: You can jump right to the case study here (it's ungated). Plan sets, am I right?  Listen, plan sets are a thorn in almost every solar company’s side. They cause delays — often taking a week or more to complete — and can really be a bottleneck that stops projects from moving forward. But they don’t have to be. Plan sets revolution  Aurora Solar helped Simply Solar transform plan set creation, streamlining what was once a prolonged and error-prone phase into a quick (and accurate) process, markedly improving project flow and timelines.  Aurora's Plan Sets Service can produce detailed, accurate plan sets in hours — rather than days using other providers — which was a game-changer for Simply Solar. This improvement streamlined project management, minimized downtime, and accelerated the progression from planning to installation. As a result, Simply Solar enhanced its capacity to efficiently meet growing customer demands. A new dawn in renewable energy Simply Solar's collaboration with Aurora Solar showcases the significant impact that advanced technology can have on solar sales and design. We’ve highlighted plan sets in this blog, but the full case study goes into detail on the other ways Simply Solar uses Aurora to improve efficiency, build trust with customers, and increase sales. To save us all another thousand words: By integrating Aurora's innovative tools, Simply Solar has achieved faster project completion times, improved accuracy, and happier customers. This partnership has not only raised the bar for operational efficiency but has also set new standards for delivering exceptional customer experiences in the renewable energy sector. For a deeper dive into this journey and to explore detailed insights that could revolutionize your own operations, read the full case study here. Want to see what's available in Aurora and what fits for your business? Click here. ### The 2024 Paris Olympics: Sustainability and innovation in action As the world eagerly anticipates the 2024 Olympics, Paris prepares to host an event that will not only celebrate athletic excellence but also spotlight France’s commitment to environmental progress.  Over the years, the Olympics have become notorious among sustainability advocates and have faced criticism over issues like environmental degradation, excessive waste, and the creation of opulent “white elephant” venues that see little use post-Games. While the Olympic Games provide host nations with a platform to showcase their cultural identity, achievements, and global unity, the spotlight often pivots to the less favorable aspects of the host nation and the games themselves. And for the host cities, the costs of hosting large sporting events have begun to overshadow the benefits.  A University of Oxford study estimated an average overrun (costs that exceed the initially planned or budgeted costs) of 252% for each Summer Olympics since 1976. This has led to substantial debts for host cities, exemplified by Montreal's 1976 Games, which saddled the city with a $1.5 billion debt. The Rio Games had a substantial negative impact on the city, displacing an estimated 77,000 people due to infrastructure projects and city restructuring for the Games. After the Games, Rio experienced a significant surge in crime; street robberies increased by 48% and homicides by 18% compared to the previous year. ​ All host cities have grappled with the challenge of balancing the grandeur and scale of the Olympics. Notably, events like the London 2012, and Sochi 2020, made strides in incorporating environmental considerations, but the aftermath revealed shortcomings in long-term sustainability planning and execution.  Paris 2024: Revolutionizing the Olympic Games Paris 2024 is set to revolutionize the concept of sustainable large-scale sporting events: Their goal is to halve the carbon footprint of the Games compared to previous editions. The organizers are targeting every source of emissions, with initiatives like low-carbon structures, renewable energy, sustainable catering, and responsible procurement strategies. They have set a target to not exceed 1.5 million tons of CO2, which is half the average carbon footprint of previous Summer Games. These Olympic Games are set to send a powerful message to the world: that sustainability is not just a goal for one nation but a shared responsibility for global unity and progress. Central to the Paris 2024 narrative is a strong commitment to sustainability and environmental responsibility, a theme increasingly vital in the context of global events. This commitment aligns with the International Olympic Committee’s Olympic Agenda 2020, which emphasizes the importance of addressing climate and environmental considerations in sporting events.  The Paris Olympics have pledged to minimize environmental impact and champion how large-scale events can harmoniously coexist with nature. This commitment includes significant measures to reduce the carbon footprint, optimize resource use, and promote sustainable practices among participants and spectators alike. How is Paris able to do it? One of the key strategies of Paris 2024 is to use 95% existing or temporary venues. This approach minimizes environmental impact by reducing the need for new construction, thereby limiting the carbon footprint and showcasing France's architectural heritage.  Paris 2024 is also undertaking an ambitious offset program. They plan to offset more emissions than the Games generate by supporting environmental and social benefit projects on all five continents. These projects include carbon capture efforts to restore and protect forests and oceans, and the development of climate-friendly projects in France. An innovative aspect of their approach includes a "Climate Coach" app to help employees reduce their personal and professional carbon footprints. Paris 2024 is also encouraging partners and suppliers to apply sustainability principles to 100% of Games purchases. Through Paris 2024, France will set a precedent for future Olympics and other major events. The 2024 Games are poised to demonstrate that the Olympic spirit is not only about athletic excellence and cultural showcases but also about leading the charge in global environmental stewardship. The Games are set to be a celebration of sports, culture, and sustainability, exemplifying how a nation's identity and global unity can harmoniously coexist with environmental responsibility. In our next article, we’ll dive into the role solar energy is playing in the 2024 Paris Olympics’ sustainability goals and how solar may be integrated in the Olympic infrastructure for many Olympic games to come. Featured image by Luca Dugaro. ### 2024 Solar Snapshot trends: Battery storage for self-consumption Aurora recently launched our 2024 Solar Industry Snapshot. It brings together three distinct data sources — Aurora proprietary project data, installer research, and homeowner research — to provide, well, a snapshot of where the residential solar industry is now. More than that, it gives us a look at things to watch in the future.  In this blog, we’ll look at one of the most potentially game changing findings: The rise of battery storage for self consumption.  Click above to go right to the Solar Snapshot. First, a little background. Perhaps you’ve heard of California’s Net Billing Tariff, aka NEM 3.0? Yes? Well, we don’t need to rehash everything here (but, for some background, we do here), so let’s just say: When NEM 3.0 was announced, there was a rush to get grandfathered in NEM 2.0, then a slowdown in installations when NEM 3.0 took effect.  But, as is often the case, policies intended to slow solar down that just so happen to affect solar negatively may work to slow down installs in the short term, but in the long term solar is undeniable. Solar installers are innovative, and they’re already innovating. One potentially game changing innovation is battery storage for self consumption.  Traditionally, when we thought of batteries, it was for backup power, like a generator — a better, less polluting, more efficient generator.  But, with time-of-use rate structures that penalize those with solar panels for exporting power during the day, then penalize people again for using energy from the grid during peak evening times, a novel use case for batteries is developing: storing solar energy in a battery during the day, and using it at peak times can drive real ROI.  We’re already beginning to see the impact of this trend. Let’s look at another set of numbers, this time, it’s data from EnergySage: In California there’s been a nearly 45% increase in storage attachment since NEM 3.0 went into effect in April 2023  80% of EnergySage shoppers in California are now requesting storage quotes Of course, it's not just California. States across the country are adopting similar policies. Our Snapshot data backs this up: ​​More than 80% of solar professionals all over the US said they saw increased homeowner interest in energy storage plus solar. Perhaps our favorite graphic from the entire Snapshot shows how it works: Battery storage for self-consumption can really add to the ROI of a solar system. (Hat tip to Abi Lambert for developing this chart, and designing the Snapshot.) I mean, check out that grid usage. With solar alone it's 55%, with solar and battery it's down to 30%. And it avoids grid usage during the most expensive part of the day, as well. That's measurable ROI — money in the homeowner's pocket — and a real selling point. It’s just another example of why we’re so optimistic about solar’s future. Every time there’s an obstacle thrown at the industry, solar companies come up with innovative solutions. NEM 3.0? High interest rates? Supply chain issues? Eventually solar providers overcome the issues and keep that line moving up and to the right. In the coming weeks, we’ll look at more industry trends unearthed by the Solar Snapshot, and what solar providers are doing about them. In the meantime, check out the entire Snapshot to get all the hard data, analysis, and visualizations on the solar market.  ### "Homeowners won’t go solar if they don’t trust you": Building trust with Freedom Forever and Boundless The solar industry has experienced tremendous growth in recent years, but this rapid expansion has also brought about intense competition among installers. As more players enter the market, margins are shrinking, putting pressure on businesses to develop innovative ways of reducing costs, improving efficiency, and boosting customer conversions. Solar companies face many hurdles in this competitive landscape. A big one is how to educate customers about the nuances of renewable power generation and how to establish credibility and trust in an increasingly saturated market. If you can’t do that, then your business is dead in the water.  But how? Enhancing customer education and trust  One of the primary challenges in selling solar is that for many customers, visualizing the aesthetics of a PV installation on their property and understanding the potential savings can be difficult. Conveying complex technical information about solar energy systems to non-expert customers is another hurdle that installers must overcome. “Building trust with clear and accurate explanations is key,” explains Sara Escalante, a Sales Representative at Boundless. “Homeowners won’t go solar if they don’t trust you.” To help build this trust, Boundless uses Aurora’s interactive features to greatly simplify the complex information about solar solutions for homeowners. This simplification played a key role in enhancing trust and engagement, crucial factors in building long-term customer relationships. By enabling customers to visualize their solar projects in real-time and explore different design options, interactive tools facilitate more engaging and productive conversations between sales teams and end-users.  Recognizing that “a picture speaks a thousand words,” let’s stop there and go to a video! https://youtu.be/8S6JmNAMRcc?si=TkUx7Yg29o-e-Fyr Want to learn more? Check out the entire Freedom Forever and Boundless case study. Be sure to click in to the different personas to see how the companies have improved efficiency (and sales) across the board. Get the whole case study here. ### Aurora Solar and EagleView partnership: What you need to know Aurora Solar is proud to announce a partnership with EagleView, to help further innovate our product offerings for customers and drive solar industry growth.  In this article, we'll discuss some things you need to know about our EagleView partnership, including how it will enhance the Aurora Solar platform with enhanced imagery, increased proposal accuracy, and opportunities to drive more sales.  Want to jump right in? Be one of the first to use Aurora + EagleView.  https://www.youtube.com/watch?v=PGRPDLfEaHg Learn more with this quick video. Who is EagleView? Headquartered in Bellevue, Washington, EagleView is an American aerial imagery company that offers best-in-class geospatial data. Powered by the largest imagery and data library of its kind (encompassing 94% of the US population), EagleView’s premier technology is backed by 300 patents and over 30 years of industry-leading experience. Aurora Solar design with the power of EagleView In our continuous effort to empower solar professionals with the most advanced tools possible, Aurora is elated to integrate EagleView’s high-resolution aerial imagery, validated 3D roof models, and industry-leading structure measurements directly into our solar design platform.     With this partnership, you'll get yet another layer of accuracy and precision for designing and selling within Aurora, enabling the development of highly accurate project proposals and designs without the need for a site visit. More project sites and higher resolution than ever before  EagleView’s library of aerial photography is 70 times more detailed than average satellite imagery and allows Aurora users to quickly unlock property data for even more of the US population. The highly detailed images, which reach sub-one-inch resolution, are expertly captured by the company’s fleet of 100+ aircraft. When walking customers through solar proposals, high-resolution images can really impress homeowners who may be comparing bids with other companies. While the enhanced imagery may subconsciously imply professionalism, actively discussing the capabilities of Aurora and EagleView can also help homeowners trust that what they are looking at is as accurate as possible.   Increased precision for 3D modeling and energy production Providing an additional layer of accuracy in Aurora’s 3D modeling features, EagleView’s industry-leading structure measurements enable designers to guarantee precise roof dimensions and exact panel placement when optimizing customer proposals. With a compounding effect, more accurate site models then lead to more realistic shading analyses and better energy production estimates than ever before. With highly accurate remote site data, Aurora users can avoid many time-consuming, costly, and avoidable steps of the fulfillment process. This includes fewer delays associated with redesigns, renegotiations, and shifting timelines as well as fewer potential truck rolls during permitting and installation.  Data-driven proposals designed to build trust at every step  Aurora Solar strives to give designers the best tools possible, and EagleView’s industry-leading imagery and data fit right in with this mission. The seamless integration of EagleView data into the Aurora platform enables reps to design and sell solar energy systems with confidence and focus on delivering a great homeowner experience from the initial meeting, to the day of the installation, and through years of expected energy production.  As Marc Georgiou, Senior Director of Global Partnerships at Aurora, summarized during Sunrise 2024: “Ultimately, this partnership empowers solar salespersons, designers, and installers alike to prospect, plan, and install their solar systems with even more confidence. By coupling highly detailed imagery from EagleView with Aurora’s accurate PV design platform, we’re laying the foundation of accuracy and confidence from sales to plan sets, all within the integrated Aurora platform.”  Looking Ahead To enable the best possible experience for our customers, we're working diligently to integrate EagleView’s high-resolution imagery into the Aurora Solar platform. The toggled feature will be made available to Aurora Solar customers soon (April 2024) and will provide the basis for several new products that will be announced and released later this year. The industry needs these tools now more than ever, and we are looking forward to building a better experience for solar professionals as well as homeowners.Peter Cleveland, VP of Solar, EagleView Keep up to date with the Aurora-EagleView partnership and be the first to experience the new product features by visiting aurorasolar.com/eagleview. Want to see for yourself? Schedule a quick demo to get all your questions answered. ### 3 steps to design and sell high-performance solar and storage systems To compete in the fast-paced solar energy industry, high-performance tools, systems, and technology can help your business create accurate solar and storage proposals that stand out from the crowd, and offer the most value for your customers.  This was the topic of our recent webinar, The Blueprint for Success: Designing High-Performance Solar + Storage Systems. While the name is a bit long, the content is tight. Below, we'll show off 3 simple steps to design and sell optimal solar and storage systems for your customers with future-proof, time-saving strategies and tools. After you're done reading, check out the whole webinar on-demand for even more insights. Click above to watch the webinar on demand. Know solar storage trends As a solar expert presenting homeowners with buying options, staying ahead of industry trends is important to establish trust and provide context on why storage is becoming increasingly popular. By being at the forefront of industry developments, your continuous education and enthusiasm for solar storage can help inform and excite your leads about the value of a battery backup system.   For example, homeowners may be intrigued to know that the amount of storage installed on the US grid effectively doubled in 2023 and that the Solar Energy Industries Association (SEIA) estimates that 30% of home solar systems will include batteries by the year 2027.  This rapid growth in storage adoption is driven by many factors, including: Increased cost-effectiveness: Battery storage prices have dropped 85% in the last 10 years. Alongside continuous advancements in efficiency, lifespan, and performance, solar storage systems are now more cost-effective than ever before.Growing interest in backup power: From extreme weather events and grid blackout concerns to increased electricity rates and net metering policy adjustments, more and more homeowners are becoming interested in backup batteries to achieve a variety of benefits. Federal and local tax credits: The 2022 Inflation Reduction Act extended the federal tax credit for solar battery storage purchases through 2035. Some utilities and municipalities also offer incentives for home batteries, and staying up to date with opportunities in your service area can help differentiate your business. Showcase the diverse value of solar + storage Companies selling solar storage must be able to seamlessly incorporate batteries into customer designs and contracts with attention to detail at every step. To quickly and accurately express the benefits of solar batteries in custom proposals, Sales Mode lets you calculate precise project metrics in seconds that showcase exactly how battery integration can help meet a homeowner's specific energy goals.       Back up power & peace of mind  As a society, a stable energy supply ensures health, wealth, and security, while outages can compromise this at home. Although gas generators remain a traditional solution for residential backup power, it's important to show customers that battery storage can provide an easy alternative with less noise, fewer onsite emissions, and seamless integration with home solar panels. To help choose the right battery for your customers’ peace of mind, you can create a home consumption profile in Aurora, choose your storage set-up, and instantly calculate the number of hours or days a system will power essentials and appliances without grid electricity.  Expanded energy controls & financial opportunities    When selling solar storage, it's your role to help homeowners understand all of a battery system’s potential benefits. Whether your customers’ goals are environmental or financial, strategic battery charging and discharging can optimize the performance and value of a home solar and storage system.  For instance, you can mention to customers that charging batteries with excess solar during the day can enable more self-consumption at night when powering home appliances, EV chargers, and other systems with battery energy in place of utility power. With many states updating and reconsidering the value of the solar customers export to the grid within evolving local net metering policies, solar storage is also becoming more attractive to homeowners — and at times more profitable — than panels alone. Especially in service areas with time-of-use billing, Aurora makes it easy to display exactly how self-consumption or strategic energy sharing can reduce utility spending and increase system ROI.   Click the image to learn more about storage for self-consumption. Customize to meet homeowner goals  Finally, whether your next customer is looking for a full-home energy system, a small bit of backup power, or something in between, finding the perfect battery solution is crucial in helping homeowners meet their energy goals.  To demonstrate exactly how various battery options will affect your customers’ systems’ day-to-day operation, financial metrics, and lifetime carbon offset, Aurora software makes it easy to create fast and accurate custom solar and storage proposals. Check out the tour below to see how Aurora can help you sell more storage. Click above to start the tour. Powered by robust design software, our detailed library of batteries, and built-in tools for sizing, pricing, and performance, Aurora software is designed for a seamless journey from lead to close, with all project customizations automatically adjusted in system prices, performance projections, and details throughout your proposal.   Even further, our experts are here for you after the sale, with stamped and permit-ready solar and storage plan sets for efficient project fulfillment.  Bottom line Creating fast and accurate custom solar and storage systems is critical to competing in today’s evolving residential market. By coming prepared with the latest technology, staying ahead of industry trends, and showcasing the many benefits batteries can deliver in your proposal, you can position yourself as an expert with the perfect solution to meet your customers’ energy goals every time. Have questions? Schedule a quick chat with our team. Want to get started without talking to anyone? Sign up here. ### 5 solar objections you will hear in 2024 and how to handle them Change is nothing new for long-standing PV professionals. And looking into 2024, many solar businesses may find a challenging sales climate ahead. So how can you answer those tough homeowner questions and keep on track to the sale? In this article, we'll look at five solar objections you’re likely to hear right now, before showcasing how to adjust your pitch and proposal to hurdle customer concerns at every stage of the sales funnel.  How to prepare for the top 5 solar objections in 2024 For as long as solar has been sold, effectively handling objections has required empathy, building trust, addressing rebuttals, and coming prepared with everything necessary to close deals on the spot. Using this methodology, we’ll look at the objection, topics you have to address, and ways to modify your proposal to close the deal. The objection: Uncertain economy ahead  The 2020s have been anything but normal in the eyes of most economists — to say the least. This has left many people around the country (and the world) a bit uncertain about their financial future. According to a 2023 study from the Pew Research Center, Americans believe that inflation is the number one issue in the US, with 65% of the adults surveyed indicating that it was a “very big problem.” 🛑 To address: Let your prospects know that the rate of inflation has slowed from 9% down to just 3% in the past year. 🚀 In your proposal: Visually, you can display lifetime solar savings next to future energy bills side-by-side, including expected escalation rates from local utilities. 🛑 To address: In addition to addressing general inflation rates, focusing on the costs of electricity alone can also help isolate the issue that solar may solve. 62% of homeowners expect that energy prices will continue to rise and fixed solar rates can help mitigate this. 🚀 In your proposal: With an uncertain economy ahead, it may also be helpful to focus more of your presentation on removing grid dependence, which can include incorporating battery storage options directly into your proposal. Lifetime savings for solar can be quite impressive. The objection: Financing rates are too high  To specifically address how economic trends affect solar decision-making, high financing rates are causing many homeowners to question whether a renewable energy loan is even fathomable at the moment. Although this can certainly be a difficult objection to overcome, there may still be several ways that you can effectively show that solar is the best option for long-term energy savings. 🛑 To address: It should be no surprise if a customer is concerned about financing, as high interest rates have been a common solar objection in the last few years.  🚀 In your proposal: In Aurora’s Sales Mode, you can compare multiple financing options head-to-head in live web proposals. 🛑 To address: As a result of high rates, solar buyers now want to evaluate multiple financing options to guarantee that they are choosing the best plan for short and long-term cash flow. 🚀 In your proposal: Adjusting your proposal in real-time, you can quickly calculate your customer’s perfect financing option based on variable down payments, alternative loan terms, and comparisons with lease or PPA contracts. The more financing options, the better. The objection: We need another quote Homeowners claiming, “We need to explore our options and seek out another quote” is one of the oldest solar objections in the book. However, this doesn't mean it's any less important today, as this objection is sure to be heard all over the country in 2024.  While some solar experts say that pivoting to a two-touch close here is best to let your products, services, and prices stand up fairly against the competition, being ready to address this objection in your sales meeting is one of the easiest ways to facilitate an honest conversation and uncover other hidden hesitations. 🛑 To address: When a homeowner needs to “see more options,” it may be evidence of other sources of reluctance. 27% of homeowners believe that the solar installation process is lengthy and difficult, and some property owners can fear long-term commitment or are unconvinced by projected savings.  🚀 In your proposal: In your design and sales funnel, every proposal feature is an opportunity to build trust within the eyes of your prospects — for both your company and solar as a whole. 🛑 To address: In these scenarios, it's important to clear up misconceptions and be seen as an objective source of truth and expertise. 🚀 In your proposal: By demonstrating calculations for solar production and savings within your proposal, you can walk customers through every aspect of their system in Aurora's Sales Mode and make any necessary adjustments in real-time, without sacrificing accuracy. Showing estimated savings can help close the deal. The objection: NEM 3.0 (net billing) concerns With the new Net Billing utility rate structure in California, many Golden State residents are now uncertain whether solar is worth it under NEM 3.0. Including a ripple effect that can be felt nationwide, California’s new solar rate structure is a hot topic in 2024 that PV professionals should be prepared to address.  🛑 To address: Whenever NEM 3.0 comes up in conversation, your role as a solar expert is to disprove any false claims and clearly explain how the new rate structure works. 🚀 In your proposal: If you sell solar in sunny California, coming prepared to customer meetings with graphs, timelines, and other visual representations of how NEM 3.0 works is now essential. Be prepared to answer questions about time-of-use rates. 🛑 To address: While many export rates have decreased significantly for new solar customers in CA, it is still possible to reduce energy expenses with NEM 3.0, and the program also incentivizes energy storage integration. 🚀 In your proposal: Tools like Aurora's battery storage modeling can be used to showcase how to navigate net billing in California. To see how Aurora can help solve the challenges of selling storage — including our new hourly visualizations — click through this quick tour. Click the image to go to the interactive tour. The objection: Concerns about solar from bad experiences   After over a decade of growth, installed solar capacity in the US is greater than ever. Although positive experiences are generally more common, some people have also sworn off solar altogether after having a bad encounter or hearing a horror story from a friend, neighbor, or family member. 🛑 To address: Today, “keeping it real” while selling solar is essential if you want to separate your services from the businesses that have soiled solar energy’s reputation with a particular customer. 🚀 In your proposal: Focusing on facts and accuracy can help your presentation seem less “sales-ey,” help truly educate the customer, and keep expectations in line with results. 🛑 To address: 27% of people believe that solar sales outreach can be “spammy,” so distinguishing yourself among the pack and building trust is essential. 🚀 In your proposal: In addition to mentioning your accreditations and five-star reviews, you may also be able to build trust visually in your proposal with a map of local installations that you’ve done in the area. Have great reviews? Highlight them in your proposal. Everything you need to handle solar sales objections in 2024 We hope that you have enjoyed this solar sales objection deep dive, and feel ready to dismantle hesitations, overcome customer rebuttals, build more trust, and sell more systems in 2024. Before you head into your next sales meeting, here’s a quick reminder of three key things your customers will need before they say “yes” to your sales proposal: A permit-ready solar design customized to their property and energy demand Trust that the financial benefits of their proposed system will be realized  A detailed and binding solar sales contract that accurately describes project plans.  Want to learn more? Schedule a quick chat to get all your questions answered. Want to get started without talking to anyone? Sign up here. ### Every big business starts small: Starting, and growing, a solar company Starting any business is terrifying. Even if you do everything right, you’re at the mercy of savvy customers, larger economic factors, and even forces of nature. Starting a solar business is somehow even tougher. There’s cutthroat competition. There’s homeowners that need convincing. There’s some of the most powerful organizations in the country actively working against you and the solar industry as a whole. It’s a miracle — and a testament to the dedicated people in the industry — that any solar start-up survives. But somehow it happens. You make that first sale. Then another. Then another. Maybe you have enough backlog to hire a second crew. Enough hope to bring on a salesperson. Enough projects to work with a designer. Only the best of the best make it to this stage. When you’ve nurtured a solar business to this far you’ve left literal blood, sweat, and likely tears up on those roofs. But then what? That’s the question Orizon Energy faced. They made that first step and were looking for more. They wanted to make more of a difference by getting more panels on roofs, more battery storage attached. But, the needs of a rapidly growing, established company are much different than a start-up. You need processes. Accuracy and speed somehow become even more important. And all your systems and people need to be able to work together seamlessly. Orizon took on the challenge and have continued to grow their business (to say the least)… Click the chart to see more details. How are they doing it, all while keeping their customer satisfaction ratings sky high (175+ reviews on Google and an average of 5 stars)? They kept that startup attitude and added the support systems, software, and processes to support their people and speed up their sales at every step. That’s the high level. There are so many aspects of Orizon’s story that any growing company can implement and use. Get all the details here. Click above to learn more. ### Making Sense of Commercial Solar: What You Need to Know About C&I Note: This blog was originally published in 2021. It was updated in January, 2024 to reflect the most recent information. If you have any questions, please contact us. Commercial solar is something of an enigma. Falling between the better-known residential and utility-scale solar industry sectors, commercial solar — or C&I solar as it’s often called, referring to commercial and industrial scale — encompasses a wide variety of customer types, and project sizes.  As Ian Clover, Manager of Corporate Communications for Hanwha Q Cells, explains, “In the jargon-heavy world of solar-speak, C&I handily condenses Commercial and Industrial into a snackable sub-section of the PV industry. But as subsections go, the C&I space has perhaps the greatest scope for flexibility, offering a raft of possibilities from ground-mount through to ingenious use of rooftop space.” What this article covers For a variety of reasons we’ll touch upon in this article, commercial solar has been slow to take off, but there are signs that this sector is poised for significant growth. And, for those who learn to navigate the complexity of these projects, the rewards can be big. This article is part of a series on commercial solar. In today's article, we'll dive into what commercial solar is, the challenges that have limited its growth, and predictions for its future expansion. In other articles, we discuss the different players involved in commercial solar projects and how to sell a commercial solar project, and some of the financing structures for commercial solar projects. What is commercial solar? Commercial solar differs from residential solar in a number of key ways.Commercial solar encompasses a variety of different types of customers and projects. In addition to businesses of different sizes, from large corporations to local small businesses, “commercial” solar customers can also include governments, schools and universities, and even nonprofits. Commercial solar projects may take the form of rooftop arrays on buildings or ground mounts and can range widely in size from kilowatts to megawatts. According to Joe Naroditsky, Director, Solar & Operations at the Community Purchasing Alliance (CPA), an organization that connects nonprofits with solar bids, the C&I solar projects his organization facilitates can range in size from 50 kilowatts (kW) for small churches and synagogues to 300-400 kW for large schools. And that’s just the tip of the iceberg. Commercial solar opportunities With the help of Aurora Solar software, researchers at UC Davis have examined the real-world solar potential of some of the largest commercial buildings in the United States.  Their review of the largest commercial building in the U.S., a Texas-based aerospace company with 770,000 square meters of rooftop, found that it could generate 88 million kilowatt hours (kWh) of clean energy! As explained in the Washington Post, “That’s enough to power nearly 5,200 homes for a year, offset 47,800 metric tons of CO2, and spare up to 388 acres of land.” Obviously, this is the extreme end of the spectrum, where building rooftops rival the scale of utility-scale projects. However, it serves to illustrate the variation in potential project sizes in a sector where the buildings and customers differ widely. Constraints on the commercial solar market Several constraints collectively contribute to a slower adoption rate of solar energy in the commercial sector. Let’s explore how upfront costs and complexity of projects remain significant barriers. Cost of commercial electricity vs. residential There are a number of factors that have contributed to C&I lagging behind residential solar. For one, commercial electricity prices are historically lower, which can make the economics of solar a little trickier.  According to the U.S. Energy Information Administration, in July 2023, the average cost of electricity for U.S. residential customers was 15.9113.3 cents per kilowatt hour (kWh), while the cost for commercial customers was 13,1111.9 cents per kWh. In addition to lower commercial electricity prices, a Q3 solar market insights report by SEIA explains: “Costs have remained high in 2023 as labnor and balance of systems costs have increased. Components such as modules and inverters are up 5% to 20% year-over-year for the commercial and utility segments.” Convincing building owners to purchase Another barrier relates to the fact that in many commercial buildings, the occupant is not the building owner. This “split incentive” means that the building owners who would make the decision to install solar are often not the ones paying the utility bills, making solar energy savings less of an incentive for them. Complex commercial financing Financing is also more complex in the C&I solar space and, according to some contractors we’ve spoken with, less accessible. However, that is beginning to change as financing mechanisms for this space become better understood by financial actors, and there are more successful projects for financiers to look at to assess risk. Financial viability was the first major hurdle in solar sales, as any solar installer knows. Commercial solar systems were therefore a trickier sell.  However, one of the major things easing financing is the options now available to consumers for commercial solar financing.  There are now a variety of ways that businesses can pursue their solar projects, one option being power of purchase agreements (PPAs). These allow investors to take on the pressure of large upfront commercial solar costs, allowing consumers to pay off the system a little bit at a time. Other barriers Other barriers include, “contracting challenges, the mismatch in building lease and PV financing terms, and high transaction costs relative to project sizes,” according to a National Renewable Energy Laboratory (NREL) report. Solutions to commercial solar barriers Many of the challenges in this sector are already being surmounted. A white paper by the Solar Energy Industries Association (SEIA) and SolarKal highlights the fact that commercial solar projects can be structured in a variety of ways that split the costs and benefits across building owners and tenants to meet different criteria. They also emphasize the variety of financing structures available to fit the needs of the parties involved and the fact that solar is cost-competitive with utility energy. As discussed above, commercial PPAs are a great option for small businesses and nonprofits that want the benefits of solar but are unable to cover the upfront costs — despite the fact that the upfront cost is often almost negligible considering the offset of reduced energy bills. Potential for growth in commercial solar The growth of the commercial solar sector varies by region and market conditions. According to Wood Mackenzie, the global solar market, including commercial solar, is entering a phase of slower growth as it matures. While the sector will continue to grow, the rate of growth may be decelerating compared to previous years​​. However, this doesn't necessarily indicate a decline in the sector's overall potential or health. Deloitte Insights reports that renewable deployment, including solar, is expected to grow by 17% to 42 GW in 2024 in the United States, indicating continued expansion in the sector.  SEIA estimates “long term growth will gradually increase due to the IRA and higher electricity rates. We expect 1,731 MWdc to come online nationally this year and to grow to 2,500 MWdc by 2028.” While the rate of growth in commercial solar might be decelerating as the market matures, the sector will continue to expand. This deceleration is a typical characteristic of a maturing market. The solar industry’s overall health and future potential remain robust, supported by policy incentives, technological advances, and increasing demand for renewable energy. Commercial solar benefits Commercial solar offers a blend of economic, environmental, and social benefits, making it an increasingly attractive option for businesses of all sizes. For building owners, benefits include increased operating income and cash flow and longer lease terms, as the SEIA/SolarKal white paper notes.  For tenants, reduced operating costs through utility bill savings are an obvious and very real benefit. Of course, there are also benefits for solar contractors that successfully navigate this sector. Commercial solar projects are often a tough sell, but they can have a great impact on overall numbers for solar companies. The economies of scale at play in these larger projects can make them more lucrative, and that’s on top of the significantly larger total project price tags compared to residential projects. Be sure to check out the other articles in this series to learn more about the ins and outs of the C&I space. Whether you’re already actively involved in commercial solar, are interested in transitioning into this space, or just want to increase your understanding of the industry, our goal with this series is to provide helpful perspectives on how the commercial solar sector works.  In our other posts, we’ve delved into the various players involved in commercial projects, how to sell C&I solar projects, and some of the financing structures for commercial solar projects. We’re excited about the potential of C&I solar as another key pillar in the growth of solar energy more broadly and hope you are, too! FAQs Should I sell solar to businesses? Whether you already sell solar on a different scale or are looking for a new venture entirely, commercial solar is a growing industry with opportunities to create value in many unique ways. While there are many challenges and obstacles that exist in commercial solar, selling solar panels to businesses can be worth it with the right tools, resources, and initiative. Is commercial solar profitable? Yes and no, commercial solar can be profitable, but only if performed with careful execution. When considering the resources and scale necessary to sell commercial solar, profitability can be most consistently achieved with low business overhead costs, minimal design changes, and thoughtful client pricing on each new project.  How can I find commercial solar clients? Like painting a picture, there is no “wrong way” to find commercial solar clients, but there are a few tried and true methods that can pave a path to success. While maximizing the use of your time and resources, putting yourself “out there” as much as you can (online, at trade shows, etc.) can lead to more conversations, referrals, and ultimately more clients.   How do commercial solar agreements work? Commercial solar panel agreements can work in a variety of ways to best fit the needs of the building owner, tenant, or other involved parties. As a commercial solar developer, it is your job to educate your clients about the different types of agreements (ownership, lease, PPA, etc.), and weigh each structure’s pros and cons to find the best solution for every unique project.  How do I get started selling commercial solar? There are many ways to start a solar business, and selling commercial systems can be a pretty significant undertaking. If you are up for the task, a few key things you will need to get started include: a business license, high-quality commercial solar design software, and the personnel or network to execute each stage of the installation process.   Want to learn more? Schedule a quick chat to get all your questions answered. ### Understanding PV system losses: solar panel tilt, solar incidence angle, and more   Note: This blog was originally published in 2021. It was updated in August, 2024 to reflect the most recent information. If you have any questions, please contact us. Being able to give your solar customers accurate estimates of how much their solar installation will produce is essential. However,  there are many factors that impact how much the PV system will produce — from physical characteristics of the components and design to environmental factors like shade and dust. In order to deliver accurate production estimates, it is crucial to understand what factors reduce the energy production of your installation (PV system losses) — and by how much. In the final installment of Aurora’s PV System Losses Series we explain specific causes of energy production loss in solar PV systems — and explore solar panel angle efficiency losses, as well as losses from tilt and orientation, incident angle modifier, environmental conditions, and inverter clipping. Unlike the previous three articles, these values are automatically computed rather than manually entered, but we will discuss methods to mitigate them. About this series In this series, we provide an overview of various causes of energy production loss in solar PV systems. Each article explains specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discuss why they affect system performance.   For Aurora users, this series will provide tips for improving the accuracy of your performance simulations by sharing research-backed recommendations for what values to input in your Simulation Settings for different loss types. While Aurora provides default values for these fields that fit most use cases, this series will also highlight cases in which you might want to use different values depending on the specifics of your design. (For a quick summary of system losses, and how to configure your account settings in Aurora, see the Aurora Help Center.) This guide for picking better loss values will help you give your customers the most accurate estimate of how much their system will produce and how much they can save by going solar. Click above to download our full guide to PV system losses. Solar panel tilt & orientation The placement angle of the solar panels impacts the amount of total irradiance received on the system over the course of a year. Ideal solar panel tilt As a rule of thumb, placing panels at a tilt equal to the latitude of the installation and facing towards the equator will maximize the amount of incident irradiance on the panels over the course of the year. How do we know this? Aurora keeps track of the optimal tilt and orientation for each weather station, and we've based our advice on this data. Looking at the charts below, the maximum output is strongly centered at equator-facing and there is a linear fit between optimal tilt and latitude. The optimal tilt is typically a few degrees less than the station latitude. However, the difference between these values increases at higher latitudes so installers at latitudes above 45 degrees latitude won’t be able to use that rule of thumb as effectively. Optimal azimuth of projects at different latitudes (frequency refers to the distribution of projects within each latitude, based on the latitude of the local weather station).    There is a relatively linear relationship between station latitude and the optimal tilt for solar panels to reduce tilt and orientation losses. Blue dots are projects in the southern hemisphere and green are projects in the northern hemisphere. Takeaway: Where the conditions of the project site allow, setting the tilt of panels close to the latitude of the installation and facing towards the equator helps maximize the incident irradiance, though it’s best to use a modeling software that will allow you to precisely quantify these differences and weigh them against other design considerations and what is practical at the site. Solar incidence angle efficiency loss In the solar world, an incidence angle refers to the angle of the panel’s surface compared to the sun’s rays. Understanding solar incidence angles is important in getting high output from your PV system, as the angle can impact the amount of sunlight that gets through the glass front of your panels. Incident angle modifier efficiency loss Incident angle modifier (IAM) loss accounts for the lower transmission of light through the glass front of a solar panel when the sunlight enters at an angle. Aurora models the incident angle for all hours of the year, using the position of the sun and the orientation of each individual module. We use the De Soto model to determine how much of the sunlight hitting the front face of the panel makes it through the glass. Based on the aggregate performance simulations, the typical IAM loss is between 3% and 4.5%, but rarely greater or lower. IAM losses generally increase when tilt and orientation losses increase. In most cases, IAM losses range from 2-4%. IAM losses and Tilt and Orientation Losses are correlated. Takeaway: Where possible, tilt your modules at a little less than latitude, and orient them towards the equator to reduce Incident Angle Modifier losses (as with Tilt and Orientation losses). However, this may not be practical on residential rooftops. Environmental condition efficiency loss Environmental conditions loss encompasses a range of losses related to the irradiance on and temperature of modules. Two major ones are shading mismatch between modules, where fully exposed modules are hindered by partially shaded modules on the same string, and cell temperature losses where higher operating temperatures can lead to lower panel performance. Shade mismatch — an example Consider a case of a home that has space for modules on two parts of its roof, one which is fully sun-exposed and one which is fully sun-exposed most of the time, but has some shading during part of the year or during late afternoon hours. If modules are placed on these two sections and placed on the same string, the partially shaded modules will not only lose some production to the shade, they will reduce the production from the fully-exposed modules. An example of a solar project site with six modules on one roof face, which receives full sun, and 3 panels on another roof face that are partially shaded. This setup will have shade mismatch if all the panels are on the same string. How to solve shade mismatch There are a few ways to isolate the effects of shade mismatch: adding DC optimizers to the system, using microinverters, or putting the modules onto a different MPPT on your string inverter. In this example house, adding DC optimizers to the string decreased the environmental loss from 11.2% to 5.7%. Monthly production values for systems that experience partial shade, with avoidable shade losses noted in the gray and green striped section. Takeaway: It’s important to use a PV production modeling program that assesses the hour-by-hour shading on solar panels in order to accurately account for irradiance mismatch between panels on the same string. Create the perfect PV system design for your client in 3 hours or less. Schedule a demo to see how. Temperature coefficients The hotter a solar panel gets, the less efficient it becomes. The causes are grounded in physics, with a detailed explanation available here. In short, higher cell temperatures reduce the amount of available energy from absorbed photons as they flow through the solar panel. Each model of solar panel is tested to obtain temperature coefficients that describe how its efficiency declines as temperature increases. Most silicon crystalline modules have a power coefficient between -0.30% to -0.45% per degree Celsius increase in cell temperature. We took aggregate data from Aurora’s performance simulations and examined the trend of environmental loss (including temperature losses and other factors) against the mean temperature during daylight hours. The chart below shows the mean loss for solar panels having a coefficient of -0.30% ± 0.05% and -0.45% ± 0.05%, respectively, along with the standard deviation. The gap between these two types of modules is around 2% in cooler weather, but grows to about 4% at higher temperatures. Mean losses for solar panels having a temperature loss coefficient of -0.30% ± 0.05% (blue) and -0.45% ± 0.05% (orange) respectively at different temperatures. Brackets denote the standard deviation. Takeaway: If you’re looking to improve system performance in a warm climate, consider using modules that have a lower temperature loss coefficient, or try increasing the amount of space for airflow. Inverter losses & clipping Inverter losses Inverter efficiency describes how well a solar inverter converts DC energy into AC energy. Most inverter spec sheets have a few numbers–a maximum efficiency, and a weighted efficiency value (established by the California Energy Commission or a European agency) that is indicative of how well an inverter performs over a range of inputs. Inverters have a variable efficiency based on what amount of capacity they are carrying, often peaking around 20% and falling slightly as the load reaches the maximum input rating. Your exact inverter efficiency will change based on the PV system–for example, a system with an oversized inverter will operate at higher efficiencies more often than the same set of panels with a smaller inverter–but the variation is small. Takeaway: If you’re worried about inverter losses, consider selecting a device with a higher maximum efficiency and you’ll be set. Inverter clipping We previously discussed inverter clipping in depth in another Aurora blog post, but as a refresher, when the output from the direct current (DC) solar panels at their maximum power output (or maximum power point) is greater than the amount of DC power the inverter can convert, the inverter will operate at a non-optimal point on the I-V power curve so that it only outputs its rated maximum power. The amount of kWh production lost (or “clipped”) compared to what the system would have produced had it not been limited by the inverter rating is called inverter clipping. (Aurora tabulates these losses in the “Inverter Clipping Loss” section of its system loss diagrams.) Inverter clipping is not a constant value across the day–clipping losses tend to occur only when the sun is high in the sky (reducing IAM losses), and on sunny days (less shading from clouds). Our findings We analyzed the amount of clipping loss as a function of the DC-to-AC ratio for a variety of commercial systems designed in Aurora, with grouping based on the amount of sunlight on modules throughout the year–that is, the amount of sunlight reaching panels after tilt, orientation, shading, snow, and soiling losses are accounted for. The chart below shows that systems receiving more irradiance (sunnier climates, low shade) start experiencing clipping around a 1.25 DC-to-AC ratio, while systems in cloudier climates, non-ideal orientations, or with shade don’t see as much clipping until about a ratio of 1.35. The percentage of inverter clipping at different DC-to-AC ratios, depending on the annual irradiance at the project site (denoted by the different colored lines). Takeaway: While there are scenarios in which inverter clipping is acceptable (including trying to increase energy output during morning and afternoon hours, reducing inverter costs, or providing a more level energy output during intermittent clouds) if you are trying to design a system to minimize inverter clipping it’s important to understand the conditions at your site and adjust accordingly. Aurora’s quick PV simulations and loss diagram can help you achieve that target faster. Key takeaways Where the conditions of the project site allow, set the tilt of panels close to the latitude of the installation and face towards the equator. Understand the conditions at your site and adjust accordingly to prevent inverter clipping. In a warm climate, use modules that have a lower temperature loss coefficient, or increase the amount of space for airflow. Use a PV production modeling program that assesses the hour-by-hour shading on solar panels. Conclusion Understanding solar panel efficiency loss is crucial for optimal performance and longevity of the system. If it weren’t so important, we wouldn’t take the time to create a four-part series on understanding PV system losses. We hope this synopsis of some important causes of reduced energy production from your solar PV systems: angle and orientation, incident angle modifier, environmental conditions, and inverter clipping–helps you maximize the output of your systems. About our PV System Losses Series This article is part of Aurora’s PV System Losses Series. Each article explains specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discusses why they affect system performance. Understanding PV system losses, part 1: nameplate, mismatch, and LID losses Understanding PV system losses, part 2: wiring, connections, and system availability Understanding PV system losses, part 3: soiling, snow, and system degradation Understanding PV system losses, part 4: tilt & orientation, incident angle modifier, environmental conditions, and inverter losses & clipping Want all this info in one handy package? Download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. ### SolarAPP+: What's new and what's coming As a solar contractor, you likely have to contend with complicated and costly permitting processes, which can be among the most frustrating and time-consuming obstacles necessary to complete new projects. The Solar Energy Industries Association (SEIA) knows this, which is why they and the National Renewable Energy Laboratory (NREL) developed Solar Automated Permit Processing (SolarAPP), which aims to reduce the costs and time spent on solar permitting for installers across the US.     Originally launched in 2021, the SolarAPP (now known as SolarApp+) is a free set of online tools that allows city and county building departments to implement rules-based, automated permitting and inspection processes for new solar projects, including instantaneous approval for eligible installers planning routine installations. In this article, we explore some of the problems caused by traditional permitting processes in the US before discussing how SolarAPP+ is changing the landscape and accelerating the American solar industry one jurisdiction at a time. Addressing solar permitting issues Many solar contractors point to the permitting process as a problematic aspect of doing business. It tends to be expensive, time-consuming, and occasionally costs them clients when the turnaround times are long and differences between permitting processes in different areas cause confusion. “How does your service administrator plan a job when the permitting process is so variable?” asks Reeves Clippard, CEO of A&R Solar. “Managing the paperwork and requirements and doing it in a timely manner is a real challenge. So many exceptions and variations makes streamlining this hard.” Of course, permitting challenges are more than just a logistical headache for solar companies and their clients. They result in bottlenecks, expenses, and delays that impact the growth of the entire solar industry.  For example, Australia has a much lower cost per watt for solar — averaging $1.20 per watt for a 10 kW system — in part due to streamlined permitting processes. It makes sense. In the US the cost per watt for solar is generally between $2.50 and $4.00, depending on the source, with an average price of around $3.25 per watt according to Wood MacKenzie. Of that $3.25, about $1.00 or so can be attributed directly or indirectly to traditional permitting processes. SolarApp+: automated, online permitting SolarAPP+ allows Authority Having Jurisdictions (AHJs) to easily reform and standardize their solar permitting processes with an online portal for residential, small commercial, and battery storage contractors to become accredited, register new projects, and receive timely approval on submitted plans.   The creators of SolarAPP+ are looking to relieve the burden of permitting for both customers and solar contracting businesses, “The goal is to make solar permitting more straightforward, and more routine, while at the same time maintaining the safety and reliability that U.S. solar projects are known for,” said SEIA President and CEO Abigail Ross Hopper. Since SolarApp+’s launch, 146 communities have started piloting or have adopted it, over 27,700 permits have been issued, and 181,200 kilowatts have been approved. All told? It has helped save 27,700 estimated hours in review time. Tuscon, AZ, Mayor Regina Romero explained, “The permitting process was taking four weeks. Now with SolarAPP+ we give a permit the same day.”  For installers, registering with SolarAPP+ can help remove some of the unnecessary red tape and time spent in the permitting process, which can directly lower average costs and project turnaround times in participating AHJs. Some of the key benefits that SolarAPP+ offers installers include: Allows contractors to easily check plan compliance with local guidelines prior to plan submission Creates instant permit approval eligibility for experienced developers submitting basic, “cookie-cutter” plan sets Reduces confusion by standardizing permit processing steps across participating jurisdictions.  The future of SolarApp+ Improving the solar permitting process for contractors and AHJs alike, SolarAPP+ is already energizing communities across the country with reduced costs and project timelines.  Looking ahead, further adoption of SolarAPP+ can create a domino effect, with improved efficiency and allocation of resources making solar more available to a wider range of income levels and communities.  For more information, webinars, and additional resources for both AHJs and contractors, please visit the NREL's dedicated SolarAPP+ page.     ### Solar inverter sizing: Choose the right size inverter Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what to expect for the rest of 2024, to how AI is affecting the industry, and more. Register Now Note: This blog was originally published in 2018. It was updated in January, 2024 to reflect the most recent information. If you have any questions, please contact us. As you likely know, solar cells produce direct current (DC) electricity, which is then converted to alternating current (AC) electricity by a solar power inverter. Converting energy from DC to AC allows you to deliver it to the grid or use it to power buildings, both of which operate with AC electricity. When designing a solar installation, and selecting the inverter, we must consider how much DC power will be produced by the solar array and how much AC power the inverter is able to output (its power rating). This article will discuss some critical considerations for solar projects to ensure that the inverters in your designs are appropriately sized.  Specifically, we’ll examine the relationship between the amount of energy your solar array produces and the amount of power your inverter can output, and we’ll introduce the concept of inverter clipping. Are your customers asking other questions about solar basics? Answer them all by sending them our Solar for Homeowners follow-up kit. An educated lead is more likely to become a customer. Click the image to get our ultimate Solar for Homeowners follow-up kit to answer all your homeowners' questions. Understanding the inverter DC-to-AC ratio The DC-to-AC ratio — also known as Inverter Loading Ratio (ILR) — is defined as the ratio of installed DC capacity to the inverter’s AC power rating. It often makes sense to oversize a solar array, such that the DC-to-AC ratio is greater than 1. This allows for a greater energy harvest when production is below the inverter’s rating, which it typically is for most of the day. The following illustration shows what happens when the power inverter’s DC/AC ratio is not large enough to process the higher power output of mid-day. The power lost due to a limiting inverter AC output rating is called inverter clipping (also known as power limiting). Figure 1: Inverter AC output over the course of a day for a system with a low DC-to-AC ratio (purple curve) and high DC-to-AC ratio (green curve). The chart represents an idealized case; in practice, power output varies considerably based on weather conditions. How to prevent inverter clipping While oversizing the solar array relative to the inverter’s rating can help your system capture more energy throughout the day, this approach is not without costs.  “Either spend money on an additional inverter or lose energy harvest to inverter clipping.” What Figure 1 also shows is an effect called inverter clipping, sometimes referred to as power limiting. When the DC maximum power point (MPP) of the solar array — or the point at which the solar array is generating the most amount of energy — is greater than the inverter’s power rating, the “extra” power generated by the array is “clipped” by the inverter to ensure it’s operating within its capabilities.  The inverter effectively prevents the system from reaching its MPP, capping the power at the inverter’s nameplate power rating. To prevent this, it’s crucial to model inverter clipping to design a system with a DC-to-AC ratio greater than 1, especially in regions that frequently see an irradiance larger than the standard test conditions (STC) irradiance of 1000 W/m2 (higher levels of irradiance lead to higher power output).  The US Energy and Information Administration (EIA) states, “for individual systems, inverter loading ratios are usually between 1.13 and 1.30." For example, consider a south-facing, 20°-tilt ground mount system in North Carolina (35.37° latitude) with a 100 kW central inverter. If we design the system with a DC-to-AC ratio of 1, it will never clip; however, we will also not fully utilize the AC capacity of the inverter. We have two options. Either spend money on an additional inverter or lose energy harvest to inverter clipping.  Knowing how much energy is clipped allows a designer to understand how effective the oversizing scheme is at increasing energy harvest, and ultimately determine what system configuration is the most cost-effective. The chart below shows three DC-to-AC ratios and their estimated losses to clipping. DC-to-AC Ratio Annual AC Energy Production Energy Lost to Clipping 1.0 163.06 MWh 0.0 MWh 1.3 193.86 MWh 1.8 MWh (0.9%) 1.5 217.24 MWh 11.0 MWh (4.8%) Table 1: Annual energy production out of a 100 kW inverter as a function of DC-to-AC ratio. As the DC-to-AC ratio increases, so does the AC output and clipped energy. Aurora’s solar design and sales software automatically takes inverter clipping into account in its performance simulations. Our system loss diagram automatically calculates the amount of energy that is clipped throughout the year and the percentage of total energy that amount represents. Aurora’s NEC validation report ensures designs are code-compliant and appropriately sized so installers can be confident in their work. Types of solar inverters Microinverters A microinverter is a device that converts the DC output of solar modules into AC that can be used by the home. As the name suggests, they are smaller than the typical solar power inverter, coming in at about the size of a WiFi router. Microinverters are usually placed under each solar panel, in a ratio of one microinverter for every 1-4 panels. Advantages of using microverters include: Higher yield: The output of string inverters is capped by the least-efficient panel in the string. In contrast, microinverters use a parallel circuit, so they aren’t limited to the least-producing panel. More accurate monitoring: Since microinverters are paired to individual or grouped solar panels, users have granular access to production monitoring per panel instead of the whole system.  Easier expansion: Scaling up a PV system is as easy as adding one microinverter for every 1-4 new panels added to the system.  Rapid shutdown: Microinverters can be rapidly turned off, which is an important requirement in new electrical codes in case of accident or urgent servicing situations.  Longer lifespan: Microinverters can have up to 25-year warranties vs. 8-12 years for standard inverters.  On the other hand, cons include: Higher acquisition cost: On average, microinverters can be over $1,000 more expensive than string inverters for a typical 5kW residential installation. More challenging to service or replace: Fixing or replacing a failed microinverter is more difficult, since you would need to go up to the roof, work the rack, and unbolt the panel to access the unit. To sum it up, microinverters are best used in sites where the panels face multiple orientations, have shading issues (so that the least efficient panel doesn’t affect the whole system output), have a good chance of being scaled up in the future, and if the local electrical code requires a rapid shutdown capability.  To learn more about module-level power electronics, check out our article Module-Level Power Electronics (MLPE) for Solar Design: A Primer. Central (or string) inverters A central inverter, commonly referred to as a string inverter, is a device that converts the DC output of a string of solar panels into AC for home or commercial use. These inverters are typically larger and are installed at a central location, often near the home's main electrical panel or on an external wall.  Advantages of using central inverters include: Cost Efficiency: String inverters are generally less expensive on a per-watt basis compared to microinverters, making them more cost-effective for larger installations. Established Technology: Having been around longer than microinverters, central inverters have a proven track record and are trusted by many installers. Less Hardware: With only one inverter needed for multiple panels, there's less equipment to install and maintain on the roof. Easy Maintenance: Since they are usually installed in accessible locations, central inverters can be easier to service or replace than multiple rooftop microinverters. Performance in Ideal Conditions: In scenarios where there's no shading and all panels have a consistent orientation and tilt, string inverters can perform exceptionally well. On the other hand, cons include:  Shading Impact: If one panel in a string underperforms due to shading or debris, the output of the entire string can be affected. Limited Monitoring: String inverters do not offer granular, panel-level monitoring. If there's an issue, it can be harder to determine which specific panel is underperforming. Shorter Lifespan: Central inverters often have a shorter lifespan than microinverters, typically needing replacement after 10-15 years. Less Flexibility: If you want to expand the system later, it may require a larger inverter or additional inverters, especially if the original inverter is operating near its capacity. Potential Single Point of Failure: If the central inverter fails, the entire solar system stops producing electricity, whereas systems with microinverters or power optimizers might only see reduced performance. Power optimizers Power optimizers are devices that are attached to each solar panel, similar to microinverters. However, instead of converting the DC output to AC, they "condition" the DC electricity by adjusting the voltage and current. This optimized DC power is then sent to a centralized inverter for conversion to AC. Advantages of using power optimizers include: Improved Efficiency: By optimizing the DC power at the panel level, power optimizers can counteract inefficiencies from shading, dirt, or panel mismatch. Flexible Installation: Like microinverters, power optimizers allow for panels to be placed in various orientations and tilts without compromising the entire system's efficiency. Granular Monitoring: With individual optimizers on each panel, users can monitor the performance of each panel separately, identifying potential issues early on. Safe DC Voltage: Power optimizers can reduce the DC voltage to a safe level during installation, maintenance, or emergencies, ensuring safety. Combination Benefits: Power optimizers combine the advantages of both central inverters and microinverters, providing efficient performance with a centralized conversion system. On the other hand, cons include:  Added Cost: Introducing power optimizers increases the system's overall cost, as you're essentially adding another component to each panel. Complexity: The addition of power optimizers adds complexity to the system's installation and wiring, potentially leading to longer installation times or more potential points of failure. Maintenance Challenges: If a power optimizer fails, it may require a technician to access the roof or the panel's location, which might be more challenging than servicing a centralized inverter. Efficiency Concerns: While power optimizers boost panel efficiency, they themselves consume some power to operate, which can slightly reduce the overall system efficiency. Dependence on Central Inverter: Even with power optimizers, the system still relies on a central inverter to convert DC to AC. If the inverter fails, the entire system is affected, similar to a system without optimizers. The verdict on solar inverter sizing Oversizing a solar array relative to a solar power inverter’s rating (DC-to-AC ratio greater than one) allows for increased energy harvest throughout most of the day, especially in the morning and late afternoon. When a DC array produces more energy than the inverter is rated to handle, the inverter clips the excess power and caps its output at its rated power (an effect known as inverter clipping). An alternate approach to increase energy production while avoiding inverter clipping would be to include another inverter. When deciding what approach to take, designers must consider the trade-off between the cost of purchasing and installing an additional inverter compared to the value of the energy that will be lost due to inverter clipping if they oversize the solar array. When estimating the energy production of a solar project design, it’s important that your performance simulations take inverter clipping into account (as Aurora does automatically), in order to ensure production results accurately reflect the system size of the design. Have specific questions that we're answered here? Schedule a quick chat with our team. Want to get started with Aurora without talking to anyone? Sign up here. Solar inverter FAQs What is a solar power inverter? A solar power inverter is an essential element of a photovoltaic system that makes electricity produced by solar panels usable in the home. It is responsible for converting the direct current (DC) output produced by solar panels into alternating current (AC) that can be used by household appliances and can be fed back into the electrical grid. What does a solar power inverter do? A solar power inverter converts direct current (DC) output into alternating current (AC) for use in standard electronics, appliances, and more.  How does a solar power inverter work? Solar panels produce electricity in direct current (DC). Direct current is basically electricity flowing in one direction. The problem is, homes and businesses run on alternating current (AC), which is electricity reversing directions many times per second. A solar power inverter runs direct current through two or more resistors that switch off and on many times per second to feed a two-sided transformer, creating alternating current usable in homes.  How long does a solar inverter last? A solar power inverter typically lasts 10-15 years, so you’ll probably have to replace it some time during the life of a solar system.  What is a good DC-to-AC ratio? A 1:0.8 ratio (or 1.25 ratio) is the sweet spot for minimizing potential losses and improving efficiency. DC/AC ratio refers to the output capacity of a PV system compared to the processing capacity of an inverter. It’s logical to assume a 9 kWh PV system should be paired with a 9 kWh inverter (a 1:1 ratio, or 1 ratio). But that’s not the case. Most PV systems don’t regularly produce at their nameplate capacity, so choosing an inverter that’s around 80 percent lower capacity than the PV system’s nameplate output is ideal. ### How do solar panels work? Everything you need to know Note: This blog was originally published in 2021. It was updated in January, 2024 to reflect the most recent information. If you have any questions, please contact us. Table of Contents How Do Solar Panels Work? What Components Make up a Solar System? How Are Solar Panels Made? How Are Solar Systems Designed? Solar panels can power an incredible range of applications — from a remote cabin to keeping the lights on in the International Space Station. But we all know solar isn’t just for providing remote power needs.  There’s virtually unlimited reasons why people choose to go solar. From energy independence, to reducing energy bills, to climate concerns, there’s really no “wrong” reason to install panels. And as solar panels continue to drop in price, they’ve become a competitive energy option for more and more homes and businesses.  Understanding the basics about solar panels is key to comprehending how they harness the Sun’s energy and how they are changing the world. Here are just a few of our favorite solar installs: A civic center in Washington State installed 132 solar panels in 2020 and now save an estimated $3,700 per year. They’ve also reduced the building’s carbon footprint by nearly 22 tons of greenhouse gas emissions annually.  Wiley Properties in Concord, New Hampshire installed 258 solar panels on the roof of their storage facility, leading to an $11,000 direct improvement to yearly cash flow and 84 metric tons of annual carbon emissions offset. Every single agrivoltaics project. This guide has all the basics you need to know about solar, including how solar energy is produced and how solar panels are made. We’ll also explore the ins and outs of a solar photovoltaic (PV) system, how to design a top-notch solar system, and all of the essentials of going solar. How do solar panels work? Before we get into more details, let's look at a high-level rundown of what happens from Sun-to-plug in a photovoltaic system: Photovoltaic cells absorb photons from the Sun and converts them to direct current (DC) electricity An inverter transforms direct current to alternate current (AC) to power appliances AC current travels via wire to a breaker box for distribution throughout the building Any unused electricity flows back into the utility grid or into solar energy storage What is solar energy Solar energy is radiant light and heat emitted from the Sun. It's harvested in myriad ways, such as photosynthesis in plants and solar heating. Solar energy for electrical production relies on subatomic particles called photons. These particles start their journey in the center of the Sun, traveling through the various layers before careening into space. A journey from the center of the Sun to the surface can take anywhere between 100,000 to 50 million years to complete. Once photons escape the Sun, they take a little over 8 minutes to reach Earth, where they collide with solar panels and initiate the photovoltaic effect. The photovoltaic effect (How solar panels generate electricity) A solar panel's secret sauce lies in its ability to convert photons into electrons. In a nutshell, a solar panel converts photons into direct current, which is then converted to alternate current for use in home and business applications. Solar cells are typically constructed of silicon, a semiconductor capable of producing electricity. When sunlight strikes the panel, photons interact with silicon atoms, releasing electrons in a phenomenon called the photovoltaic effect. A solar cell is manufactured with a positive and negative silicon sheet sandwiched together. An upper silicon layer is infused with phosphorus for a negative charge, and a boron-infused bottom layer maintains a positive charge. The resulting field funnels electrons towards conductive metal and out of the panel. Grid connection Once the photovoltaic process produces a current, the electricity has to flow somewhere. Since the current produced by a solar panel is DC, it needs to be converted into AC before it can be used in most situations. Once converted to AC, energy from solar can be used in multiple ways. The most common method is entry into a grid-tied system. A grid-tied system draws a significant portion of its energy needs from solar panels during the day. Depending on the size of the system, more energy may be produced than the site needs, so surplus electricity is sent back to the grid. When the Sun goes down, the consumer draws supplemental energy from the utility. While grid-tied systems aren't completely self-sufficient, they're an effective way to lower energy bills and do good for the environment. Net metering A major advantage of a grid-tied system is the ability to sell surplus solar energy back to the utility through a process called net metering (NEM). On cloudy days and during the night, a solar system may not produce enough energy to meet demand. The opposite is true for very sunny days: When energy use is low but production is high, panels will collect surplus energy, usually more than enough for a customer's energy needs. Net metering measures electrical flow in both directions: How much energy a system draws from the utility, and how much is put in. When a solar system is overproducing, the meter actually runs backward, resulting in the utility company rewarding credits for the surplus power. These credits can be used to purchase energy from the utility when a solar system isn't able to meet demand. What components make up a solar system? Solar panels are the most obvious components of a photovoltaic system, but only represent about 30% of the total solar energy system's cost. The high-tech shimmer of a solar panel is just the tip of the iceberg that a PV system uses to harness renewable energy from the Sun. Let’s take a closer look at the important components that make up a solar system.  Solar photovoltaic panels A typical solar panel consists of silicon cells, a metal frame, wiring elements, and glass. An insulative layer and a protective back sheet protect the panel from excessive heat and humidity. While the general construction of solar panels is pretty standard, the silicon cells are manufactured in two distinct formats: Monocrystalline cells are one solid silicon crystal. Mono cells provide more space for electrons to flow, resulting in a smaller, more efficient panel. The downside is they tend to be more expensive. Polycrystalline cells are constructed of many individual shards of silicon melted together. While not as efficient as mono cells, poly cells have a lower price point. Mono and poly cells serve the same purpose. Aesthetics and budget will help you determine which is right for your next project. Mono panels tend to have a darker, more uniform color, while poly panels are lighter (usually blue). If the site is space-limited, mono panels may be the way to go thanks to their higher efficiency. But if space isn’t an issue or you’re up against a tight budget, poly panels are still an excellent choice.  Inverters Solar energy comes right off the panel as direct current. But the energy needs to be converted to alternate current before it can be used in a commercial electrical grid. Thankfully, DC is easily converted to AC, a job left to an inverter. Inverters are classified into 4 broad categories: Stand-alone inverters draw DC energy from batteries charged by solar panels and don't interact with the grid. Grid-tie inverters match electrical current from solar panels to those of the utility. Grid-tie inverters shutdown during power outages, so they can't be relied on for backup power. Battery backup inverters draw energy from a battery and export surplus energy to the grid. Battery backup inverters are capable of delivering AC energy during a power outage. Intelligent hybrid inverters are all-in-one solutions that can be used for grid-tie, stand-alone, or backup applications. Intelligent hybrid inverters are often attached directly to solar arrays and manage solar load, battery storage, and grid interaction. Racking and mounting system Racking and mounting hardware do far more than secure panels to a roof or the ground — they provide the correct positioning for maximum exposure to the Sun. Selecting the right mounting configuration and position is essential for ensuring maximum output from any system. Solar racking and mounting systems fall into 3 categories: Roof mounting systems. The most common roof mounting systems utilize rails anchored securely to a roof. Other roof-mounted systems attach panels directly to bolts or screws anchored into the roof, eliminating the use of rails and providing a more sleek aesthetic and lighter load. Ballasted and non-penetrating systems are usually used on flat roofs or roofs that can’t support mounting hardware. Ground mount systems. Traditional ground mount systems anchor stacked panels to the ground, often two to four panels high. Two rails generally support each panel, which can be oriented in a portrait or landscape position. These systems are anchored to the ground with steel rods, screws, or ballasts such as concrete blocks. Tracking systems. Motorized tracking systems follow the Sun throughout the day, maximizing sunlight exposure. Tracking systems are classified as single axis or dual axis. Single axis systems follow the Sun from east to west in a straight line. Dual axis systems track the Sun in a circular pattern for improved sunlight exposure. Solar performance monitoring systems A performance monitoring system is a dashboard that highlights all of your solar panel system’s information in one place. Aside from the fuzzy feelings of seeing your meter spin in reverse, a solar performance monitoring system offers valuable insights into your photovoltaic system’s performance. This system offers information about energy output and consumption, optimizes energy usage, and can inform you about problems in your solar system. Solar monitoring systems work through inverters, usually through monitoring software that works as a liaison between the inverter and other devices. Performance monitoring systems gather information as the inverter converts direct current to alternate current and make that information accessible to the homeowner through companion apps and smart home devices. The best performance monitoring systems collect data through a central inverter or from individual microinverters affixed to each solar panel. The latter option provides greater insight into individual solar panel performance and allows faster diagnosis of potential problems. How are solar panels made? Basic solar panel constriction hasn't changed much in recent decades. Like the arrays that first started showing up on houses decades ago, most modern solar panels are still constructed of a silicon matrix between a front glass plate and a rear polymer sheet. Solar panels have to stand up to severe weather conditions over the course of their 25-plus year lifespan. The best solar panels are engineered to stand the test of time, which requires a few basic materials and meticulous manufacturing standards. Solar panel materials Solar panels are best pictured as a silicon and glass sandwich. The materials that go into solar panels are relatively straightforward: Silicon cells Metal frame Glass Contact wire Plastic backsheet Connection wires Silicon, the element that gives solar panels their electricity-generating magic, is the active ingredient in the solar-panel-sandwich recipe, and also the most energy-intensive to produce. Silicon is one of the most abundant elements on Earth and is the main component of beach sand. But converting sand into pure silicon suitable for solar panels is an energy-intensive process requiring refinement in high-temperature arc furnaces. Once silicon is refined, the raw product is ready to be manufactured into a solar panel. Solar panel manufacturing Isolated silicon chunks are shaped into cylindrical ingots, with special attention given to proper atomic orientation. At this stage, boron is added to give the silicon a positive charge. Ingots are then cut into thin wafers the thickness of paper, and then treated with an anti-reflective coating to help better absorb sunlight. Next, conductive metals are added to the surface of each wafer. Phosphorus is diffused across the surface, providing a negative charge to balance the positive charge of the boron and allow a controlled flow of electrons. At this stage, an individual solar cell is complete. Next, cells are soldered with metal connectors into a matrix. This assembly is sandwiched between a protective back sheet and glass covering and finished off with a junction box and frame. How are solar systems designed? Two important factors are considered when designing solar systems: available space and energy demand. All the nuts and bolts of solar system design hinge on these two factors, so a thorough understanding of them is essential to a well-planned solar installation. To get started, a solar designer will calculate daily energy needs, usually by taking a look at the location's utility bill. Next, the designer will determine the ideal number of solar panels for the project and the available space to accommodate them. With energy needs and available space determined, a designer can start shopping for components. Designing a solar system can be complicated. A designer must determine space requirements, potential shade, optimal panel pitch/angle, necessary permits, and more. Software solutions can help estimate solar energy needs and plan the best solar system. Click above to learn more about how the right solar design software can help your business. For example, with just an energy bill, Aurora Solar's design software automatically renders high-quality designs and materials recommendations for any location. Aurora also provides multiple planning and design tools in one intuitive package, including site design, load profiles, shade analysis, automatic system design, sales proposals, permit templates, and more. Essentials of going solar For many folks, switching to solar electricity sounds nice in theory, but the process seems lengthy, overwhelming and expensive. That’s why it's important for solar contractors to simplify the process as much as possible for the homeowners. Here are some tips: Understand basic solar panel information: Your customer is probably going to ask some fundamental questions about how solar works and how it will work for their property. You should be able to explain it in simple terms. Make sure the property is suitable for solar: Solar panels can benefit homeowners in every state, but not all properties have optimal solar conditions. Be aware of obstructing factors that would shade the panels, as well as the recommended size, slope and shape of the roof for the proposed installation. If the property isn’t great for solar, can you offer some suggestions or design alternatives to create better solar conditions? Crunch the numbers: Money is a universal language. Use a solar calculator and solar case study information to be able to tell solar clients how much they’ll need to invest in their system and how much going solar it will save them yearly and over its lifespan. You should also explain financial benefits of going solar, like net metering and solar tax credits. Offer financing solutions: The cost savings of going solar aren’t always enough to combat the sticker-shock of the price of a solar system. Make sure you present plenty of solar financing solutions. Conclusion Of course, the ins and outs of how solar panels work are just the first step. If you’re looking to learn more about solar and the solar industry, here are some additional resources: Now that you know how solar panels work, check out the different types of panels on the market See how solar panels are connected together — called “stringing” — to deliver power where it’s needed Interested in battery storage? Here’s a primer on everything you need to know about storing solar energy More questions? Schedule a quick chat with our team to get them answered. ### What you need to know about PERC solar cells Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what to expect for the rest of 2024, to how AI is affecting the industry, and more. Register Now Note: This blog was originally published in 2018. It was updated in January, 2024 to reflect the most recent information. If you have any questions, please contact us. Conventional silicon photovoltaic (PV) cells have long been the standard in the solar industry. But as the technology matures and approaches hard efficiency limits, researchers and manufacturers have started to embrace a relative newcomer — the Passivated Emitter and Rear Contact (PERC) solar cell. In this article, we’ll look at the core benefits of PERC solar cells, how they work, how they're made, and even how to sell them. But first, let’s get into some background about how conventional solar cells work and what limitations they present. How standard solar cells work Traditional solar cells contain two layers of silicon, commonly called “n-type” and “p-type” for their negative and positive charge behavior. A solar panel creates electricity when sunlight hits the solar cells, knocking electrons loose from the n-type layer as the p-type layer accepts them. These flowing electrons are what create an electric field — and by extension — clean solar power for the customer’s home or business. A simplified cross-section of a silicon solar cell. Sunlight (orange) hits the solar cell and the light knocks electrons (blue) loose within the silicon material. Electrons that make their way to the electrical contact can then flow through an attached circuit, providing electrical energy. Although this basic design has served the solar industry well, plain PV cells suffer from several types of efficiency losses, including: Insufficient sunlight capture either due to light reflecting off panel surfaces or because of wires and other components blocking light Excessive heat buildup, especially as light hits the back-most surface of the PV cells Free electrons being knocked out of alignment due to scattered light refraction Electrons recombining with the silicon material on the front and back of the solar cell Within a solar cell, some efficiency is lost when light is not converted to electrons, or the resulting electrons don’t make their way to the rear for contact. Researchers are constantly working to reduce these losses. Fortunately, some of these efficiency losses can be mitigated with technology.  For example, adding a front passivation layer can help stop front-side recombination. This strategy also helps to reduce some reflection. To prevent unwanted electrons from moving through the cell and hitting the rear contact, it’s possible to add a back surface field layer or place all the wires on the back of the panel during the manufacturing process. The hardest efficiency losses to manage, however, are excessive PV panel heating and back-side recombination. Because of these limits, the maximum efficiency of standard solar modules hovers around 20% in the field. Most silicon modules have layers that help avoid losses; the front layer reduces reflection losses and also prevents electrons from being lost on the front edge. The rear back surface field repels electrons, reducing the number that make it to the rear contact. What are PERC solar panels and how do they work? First introduced in 1989, PERC panels are modified silicon cells that have an additional layer on the back. Because this extra layer is reflective, it is able to send unused light back across the n-type and p-type junctions to generate more energy. Better still, this reflective surface also helps to reduce rear recombination and prevent longer wavelengths from becoming heat that would otherwise impair the cell’s performance. Early commercial implementations of PERC technology ran into trouble — largely due to increased light-induced degradation. But with steady improvements over the years, PERC modules have since achieved solar generation efficiencies up to 12% higher than their traditional silicon counterparts. As a result, solar PV installers are able to save time and reduce costs when using the newer PERC standard. This is because fewer panels are needed to achieve the same solar power output. Using fewer panels also helps to reduce the amount of racking, wiring, and MLPE devices needed to connect everything together. For example, even if roof space is not a major concern, it may be possible to save installation time and costs by using higher efficiency PERC modules. If a site takes 40 standard modules or 38 PERC modules to reach the desired annual production, you’re able to reduce the amount of racking, wiring, and MLPE devices needed to connect everything together. Like other high-efficiency modules, PERC modules can be used to maximize production on a limited roof area. If you’re installing on small roof areas or buildings that are partially shaded, PERC modules would be a good option. Different buyers want different things — including different types of panels — click above to get our research-based guide on the 5 types of solar buyers. PERC module production PERC solar modules are structurally similar to other silicon panels on the market, which is a distinct advantage for manufacturers. Even though there are additional costs when creating passivation and rear contact capping layers, panel manufacturers are able to reuse existing production equipment with minimal retooling required. This places PERC manufacturing costs on par with conventional silicon cell production. Although PERC panels remain slightly more expensive, these costs are largely offset by the increased efficiency gains – which yield higher lifetime utility bill savings and carbon offsets for the end user. And as the technology continues to mature thanks to economies of scale and R&D, PERC cells will likely continue to benefit from even larger efficiency gains and cost reductions moving forward.   Types of PERC solar modules Mono PERC cells Monocrystalline solar cells are cut from a single piece of silicon, making them more efficient than polycrystalline panels. Additional PERC layers can be added to help further increase efficiency rates. Poly PERC cells Unlike uniform monocrystalline cells, polycrystalline PERC cells are manufactured using a blend of silicon shards. This mix yields lower efficiencies, but polycrystalline cells are cheaper to manufacture.  Just like with monocrystalline cells, adding a PERC layer can significantly increase the efficiency of polycrystalline cells without dramatically increasing their manufacturing costs. But because higher solar power output is the industry's Holy Grail, the more efficient monocrystalline PERC cell is the preferred standard for most new PV installations. Walk through the journey of the solar industry as we unravel the future of solar through a comprehensive analysis of over six million projects, homeowner insights, and perspectives from solar professionals. Growth in PERC cell production Global demand for PERC modules skyrocketed in the late 2010s and continues to see steady growth. In 2021, the PERC solar sales market was estimated at around $150 billion and is projected to hit $290 billion by 2030. While PERC cells are undoubtedly the top panel on the market, some industry experts theorize that PERC cells may be phased out in the next few years, favoring N-type solar cells due to their “superior conversion efficiency.” Pros and cons of PERC solar panels There’s a reason PERC cells are the industry standard — they’re highly efficient and a much-improved type of PV technology compared to traditional solar panels. However, compared to the new development of N-type cells, there are some disadvantages. Let’s review the pros and cons of PERC solar panels. Pros of PERC solar panels More efficient compared to conventional silicon solar panels Work better in low light and high heat conditions compared to standard solar cells Are more affordable than N-type solar panels Cons of PERC solar panels Slightly more expensive compared to conventional silicon panels Don’t produce as much power compared to N-type cells Are more negatively influenced by high temperatures than N-type cells How offering PERC solar panels can increase solar sales The main selling point of PERC panels is their efficiency. Because they make better use of space, fewer modules are required to produce the same solar output as a standard silicon panel. For customers who may have space constraints, offering PERC panels is a compelling option. The same case goes for customers who don’t get as much direct roof sunlight or customers who live in high-heat areas: PERC cells perform better in these conditions compared to traditional cells.  But even if roof real estate or weather conditions aren’t factors, it’s possible to save installation time and costs by using PERC modules. Because PERC cells are more efficient, less panels will need to be installed. Side-by-side cost comparison: Traditional vs. PERC Solar Panels Cost will still be a major consideration for many clients. To seal the solar deal, it’s easier to outline how PERC solar panels are a better value in the long run, even if they’re a larger upfront investment. The table below provides a good visual. Next steps A knowledgeable customer is one of our best weapons when selling solar. Make sure your customers have all the information by giving them a free Solar Sales Follow Up Kit. It has all the background a customer needs on the basics of solar, and can help set their mind at ease. Click the image to download The Solar Sales Follow Up Kit. ### Navigating the future of solar: Sell more in '24 Stop us if you’ve heard this one before: The solar industry continues to face both unprecedented challenges and exciting opportunities. To explore this ongoing tension for 2024, our experts at Aurora collaborated with the team at Solar Power World on a webinar to shed light on what the next year could hold.   The panel featured: David Maurer, Director of Corporate Sales, Aurora SolarBogdan Zlatkov, Sr. Content Marketing Manager, Aurora SolarCurtis Merring, Sr. Product Marketing Manager, Aurora SolarBilly Ludt, Senior Editor, Moderator, Solar Power World Our discussion focused on five core topics, each critical to understanding the evolving landscape of the PV industry. Read on to learn what impact the economy, storage, net metering (in California), financing, and public trust are having on the PV industry — and how you can best navigate these changes. In the first installment, we analyzed three of the biggest trends these experts expect to see in 2024. In this second installment, we’ll walk through two clear strategies to make the most of them. Click here to watch the entire webinar on-demand. Solar financing: Adapting to rising loan rates and emerging trends  The world of solar financing is dynamic, and Bogdan articulated recent shifts and strategies for nimbly adapting to ongoing changes. For example, the average quoted loan rate for residential PV projects has significantly increased in recent years, jumping from 2.52% to 6.10%, adding further barriers to investing in solar. Savvy solar companies, then, will work to understand each homeowner’s financial capacity and desired interest rate to make their PV dreams a reality. And, as the popularity of third-party ownership (TPO) agreements rises, companies can offer alternate financing models for solar installations. Aurora's tools let salespeople do just that, determining the best financing agreement that’s tailored to individual affordability. Click the image to see how to make financing a differentiator for your sales teams. In fact, nearly half of homeowners — particularly millennials and Generation X — express a need for clearer explanations of financing options from solar installers. With Aurora, salespeople can easily model different financing scenarios, including TPO, cash, and loans, all presented in a compelling, interactive, and digestible way. This not only helps customers make a decision, but strengthens transparency and trust between installers and homeowners, empowering the customer to approach solar financing with confidence. Building trust: The key to success in solar installations  According to David Maurer, trust is the primary factor influencing homeowners' decisions to buy from a specific PV installer, and there are numbers to back that up. Despite 41% of homeowners showing interest in solar, many have yet to install panels on their property, highlighting the need for trustworthy, reliable, and communicative solar providers. Homeowners’ preferences in providers and their outreach styles vary, with 38% favoring national-level contractors and 28% relying solely on word-of-mouth recommendations. Analyzing those preferences can help teams strategize their pitches, since 27% of homeowners express discomfort with seemingly “intrusive, spammy” direct outreach from solar companies. When 50% of homeowners find it difficult to discern which solar contractors are legitimate — a concern reflected in the significant increase in complaints over the past five years — a consistent, authentic online and in-person presence is key.  Click above to get more market insights from our 2023 Solar Industry Snapshot (it's free). We're committed to providing accurate and transparent information that empowers you to directly tackle these trust issues. While installers are responsible for actively listening to and educating their customers, we’re here to support you with accurate, eye-catching proposals and presentations, so you can build trust and set a higher standard for integrity in the solar industry. Exploring solar's next chapter To learn more about the risks and opportunities on the horizon, watch the full webinar.  If you're interested in more info on some of the strategies here, schedule a quick chat with our team. Want to get started without talking to anyone? Sign up here. ### Navigating the future of solar: Insights on 2024 trends As we enter 2024, the solar industry stands at a pivotal crossroads, facing both unprecedented challenges and exciting opportunities. To assess and address solar's potential in 2024, we collaborated on a webinar with a panel of our friends at Solar Power World and the experts on our team.   The panel featured: David Maurer, Director of Corporate Sales, Aurora Solar Bogdan Zlatkov, Sr. Content Marketing Manager, Aurora Solar Curtis Merring, Sr. Product Marketing Manager, Aurora Solar Billy Ludt, Senior Editor, Moderator, Solar Power World In this first installment, we’ll analyze the three biggest trends these experts expect to see in 2024. And in the second installment, we walk through clear strategies to make the most of them. Click here to watch the entire webinar on-demand. The new solar economy: Room for optimism  In his comprehensive analysis of the economy, Curtis Merring highlighted that despite inflation fears, current rates of 3.2% are showing signs of decline, giving economists a sense of cautious optimism. This sentiment is reinforced by the Wall Street Journal's forecast of impending interest rate cuts. Of course, each of us in the solar industry is well aware of the fact that rates of energy prices are outpacing inflation. But it’s not just us. This concern also echoed by 62% of homeowners who anticipate further rises in energy costs. This backdrop sets the stage for continued significant growth in the solar sector. When all is said and done, PV installations are projected to have surged by 32% in 2023, reaching an impressive 320 GWdc. Globally, Germany emerged as a leader in the European Union, while the U.S. solar market is expected to have witnessed a robust 52% year-over-year growth. The Inflation Reduction Act (IRA) plays a pivotal role in this scenario, estimated to support 403,000 jobs annually across the clean energy sector. The IRA is poised to drive substantial gains, particularly in electric vehicles (185,000 jobs), battery storage (48,000 jobs), and solar (35,000 jobs), while also propelling numerous PV projects. Furthermore, the IRA is expected to inject an impressive $156 billion into America's GDP. The effects of NEM 3.0 regulations The recent shift to Net Energy Metering (NEM) 3.0 in California, as explained by Bogdan Zlatkov, marked a significant turning point for the solar industry, particularly affecting return on investment (ROI) calculations. NEM 3.0 introduced three major changes: higher Time-of-Use (TOU) rates, lower export rates for solar energy, and consequently, longer payback periods. These changes are poised to have the most profound impact on small and medium enterprises (SMEs) and businesses operating solely within the state. This forecast triggered a surge in PV installations before the April 15, 2023 deadline as customers and installers rushed to capitalize on the more favorable terms of NEM 2.0. After that surge, one of the most notable outcomes of this transition was the predicted 38% market contraction in California's solar sector in 2024. To overcome these new challenges, solar installers need to focus on better educating homeowners — approximately 49% of whom have expressed a desire for more detailed explanations on how PV panels, energy storage, and electric vehicles (EVs) function and interconnect. A crucial aspect of this education involves a deeper understanding of TOU rates and how they influence energy consumption and savings. By tailoring solar (+ storage!) solutions based on individual consumption habits, installers can still maximize savings for their clients despite the new NEM 3.0 constraints. Storage growth trends in the PV industry  The solar storage sector is witnessing a significant transformation, as highlighted by Bogdan and Curtis. Residential storage is expected to grow by 18%, while non-residential storage will likely see an 8% increase. This growth is evident in the performance of major public energy companies. Sunpower reported a 60% battery attach rate in California, Sunnova saw a 34% attach rate in Q3 2023, and Tesla's storage installations soared by over 90% year-over-year in the same quarter. Legislative incentives, including federal tax credits, are playing a vital role in propelling the growth of solar storage. Similarly, the changes brought about by NEM 3.0 are creating increased demand for storage solutions — they offer a way to optimize energy savings under the new utility rate structures. Check out the tour below to see how strategies like storage self-consumption can help optimize solar + storage ROI.  Insert Text Those are just three of the trends we're watching. Check back next week for some of the strategies installers can use to keep that growth arrow going up and to the right in 2024. In the meantime... Click here to watch the entire webinar on-demand. ### How to deliver great solar sales proposals There's nothing more fundamental to landing a solar sale than your solar sales proposal. It's paramount that your proposal is informative and accurate, while also being compelling enough to close a deal.  And while Sales Mode has everything you need to develop great proposals, it's still up to each company to tailor your proposal to highlight your specific value propositions and speak to the needs and concerns of your specific customers. With this in mind, what should your company feature in its proposals? To help answer this question, we spoke with Ian Lochore, the Director of Residential Sales at Baker Electric Solar, for his advice on composing solar proposals. Baker is one of the country’s most respected solar installation firms and was twice ranked the #1 Solar Electrical Subcontractor in Solar Power World’s Top 500 Solar Contractors List. Ian has over 10 years of solar industry sales experience under his belt, so he was the perfect person to provide insights on mastering the “Why Solar” pitch. Tailor your solar sales proposals to the interests of your solar prospects With the rapid growth of the solar industry, as a consequence, there has been an expansion of the breadth of solar buyers and an evolution of the types of common solar prospects. This is why it’s important to understand who your solar buyer is, what they value, and what interests them most when discussing the possibility of purchasing solar.  For example, if your solar customer is more interested in the savings benefits of going solar (as many are) than the environmental benefits, be sure to focus your solar sales pitch around how much the customer will save and the long-term financial benefits of going solar with your company. Download our free guide on the 5 solar buyers to learn more about pitching to your specific solar buyer personas. Identify and define the homeowner’s pain points As you get to know a potential customer, identifying their specific solar pain points can help you tailor your pitch as effectively as possible.  Although every sales conversation is going to be a little different, you can often define pain points by asking your prospect simple questions about their past solar experiences, current hesitations, and expectations for the future.  With a bit of empathy and a lot of listening, your solar prospects may feel more trusting in your services if they feel that you fully understand their pain points and see them as valid or if you are able to clear up any misconceptions they may hold.  Demonstrate your company’s longevity and reliability Building customer trust is important, especially because solar is a long-term investment. So, reassure your customer that you will be there to support them. “Who’s going to be there in seven years if there’s an issue?” is a question Ian often asks. Guarantees, warranties, and service packages should be included in every proposal. Ian suggests using simple analogies here, like buying a car: “What’s the service plan? Sure, I want a car that will get me to places in style. But I also want to know, is there a roadside warranty if there’s an issue with the car, is there a roadside warranty? What’s the history of issues with that make or model?”  Guarantee that if their solar system has difficulties 15 years down the line, your company will be around to answer their phone calls. “It’s not just the price, but the value of their purchase as well.” Present solutions, not products Presenting solutions (and not products) is one of the most important mantras to keep in mind while developing and delivering a great solar proposal.  Perhaps the most famous example of this concept is in the film The Wolf of Wall Street. In the film, the protagonist explains that the most effective way to sell a pen is not to talk about how great it is, but rather how the pen is a solution to a problem. To illustrate this, they ask another character to write their name on a piece of paper, creating the need for a pen. Bringing this lesson into the world of renewable power, solar energy should be presented as a solution to escalating electricity costs, rolling blackouts (with a solar battery), and fossil fuel pollution, rather than focusing on the technical aspects of the panels and other system components.  Include testimonials and/or case studies There's a lot of solar companies out there and homeowners have a difficult time knowing who they can trust. Including testimonials and case studies from other satisfied customers assures them that you're a reliable partner that will get the job done right For instance, if you can tell your prospect specifically about other projects you’ve developed nearby (the closer the better), they’ll likely be more inclined to move forward knowing that they are not the first to do so. “We’ve already helped your neighbors save money with solar, and you can be next.” Highlight instantaneous and long-term savings “It’s more important to focus on the economics: What difference is it going to make to them and their family from a budgeting perspective?” Ian says most proposals should highlight the financials. Show your customers compelling numbers that will convince them to make the purchase.  Explain the benefits of installing solar on their homes over the entire lifetime of the system — short-term and long-term effects. “What difference will this make to the client today and next year?” That’s an important question to ask. “You should demonstrate the cash flows and utility bill savings over 5, 10, 15, 20 years in your proposal.” Click above to see how Sales Mode can help you deliver better solar proposals. Interested in learning more more details about Sales Mode? Schedule a personalized demo. Provide information on all solar rebates and incentives available Part of the more instant savings that come with going solar include local and federal rebates and incentives. Including these in your proposal could be the extra push they need to believe that your proposal makes economic sense. Offer Multiple Design and Financing Options “From there, it’s about making sure that the customer understands what’s right for them,” Ian says. The customer is always right. With today’s technology, creating solar designs and generating solar proposals is faster and easier than ever before. There’s no reason a customer should not be able to see various panel configurations on their home. Salespeople should be prepared to show multiple solar design options and quickly adjust solar proposals to their needs. Every solar proposal should also include financing options. The customer should understand what the differences are, whether it’s a lease that’s allowing them to save more money upfront or a cash purchase where the system is an investment with greater long-term savings. Aurora’s Integrated Financing, for example, makes the solar financing process easy and efficient. With the integration, it’s possible to share side-by-side bill comparisons and apply for financing right in front of the customer. This tool helps close deals faster, reduce change orders and cancellations, and seamless workflow by curating multiple pay-off possibilities with accurate loan information. Learn how a great proposal can give you more credibility with customers. Schedule a quick demo to learn about how this, and other Sales Mode features, can help you close more deals.  But don’t force your customer into a decision Cash, lease, or loan? Your client has options, but the choice is not always simple. You should guide your customers through the financing comparisons and find out what the best solution is for them.  “What’s their cash flow situation? Do they want to use their money for a college fund?” “Different strokes for different folks.” Successful solar salespeople work with the client to find out what’s best for them. At the end of the day, the client should be able to freely choose between all the solar design and financing options that you have pitched to them. That is the secret to customer satisfaction. Basics to include in your solar proposal Keeping in mind everything we’ve discussed so far, let’s look at some key, specific items to include in your solar proposal template: Company Profile: This section helps to establish credibility and helps potential clients get to know you and your business. Details on the scope of the project: This can be broken out into several subsections, but in your proposal, you want to make sure you include all details around the scope of your project. Size and location of the solar system Components Project schedule Bill of materials Payment terms Financial Analysis: This will include details on your pricing for everything involved in the installation process from start to finish, including labor and materials. We know that putting a final number in front of a potential client can be nerve-wracking for fear of sticker shock. In this section, it is also a good idea to include any financial incentives and return on investment (ROI) metrics to help offset that number. Terms and Conditions: This section is for legal purposes to protect your business and employees. It should include details of the contract, warranty information, limitations of liability, and more. Contact Details: After you have wowed your potential new clients with a detailed and professional proposal, be sure to include your contact information in an easy-to-find place. This could be the first page, past page, or within the header or footer of each page of your proposal. Customization: Your proposal should always include the basics, such as finances. Never forget that customizing each solar proposal and making your potential clients feel like you’ve taken the time to put together something just for them can be the personal touch needed to make them feel more confident in choosing you. To learn more details, schedule a quick demo to go over Sales Mode live. Beyond the solar proposal One way of building trust is to engage with the local community. For example, Baker Solar is engaged with local charities, such as the San Diego Food Bank and Habitat for Humanity in the Orange County area. Partnerships will help establish the presence of a solar installer in a neighborhood. Word of mouth is the oldest and most powerful marketing and sales tactic. Ian can attest to that: “60-70% of our business comes from referrals.” Maintaining your company’s integrity and branding is an underlying ingredient of any solar proposal. It could make or break the purchase decision for your customers. FAQs What is a solar proposal? A solar proposal describes the design of a solar project, its various elements, expected output, contract terms, and financing. Once the customer receives a proposal, the next step is signing a contract in alignment with the solar proposal. What is solar proposal software? Solar proposal software enables developers and installers to quickly generate full proposals (complete with system design, pricing, financing options, and even a contract) tailored to individual customers’ needs. Solar proposal software takes the guesswork out of designing a PV system with user-friendly tools that can be quickly and efficiently deployed in the field with minimal training.  What are the benefits of using solar proposal software? The benefits of solar proposal software are too many to list in an FAQ. This blog goes through many, but some major benefits are: Real-time editing with automated personalization and calculations. For example, you can toggle one module off on the system design and you will automatically see all the numbers in your proposal update — pricing, financing, savings estimates, contracts, and so on. This reduces a lot of manual data entry and saves time Improved solar sales management combining quotes, invoicing, and customer management tools into one package Clear communication showing customers the benefits of going solar Faster turnaround time and greater customer engagement Streamlined workflow to draft proposals in seconds, apply for financing, and automatically generate contracts How can I start a solar sales proposal to capture the client's attention effectively? Start with a compelling executive summary highlighting the solar solution's most significant benefits. Craft it concisely and engaging to pique the client's interest immediately. How should I proactively handle potential objections or concerns within the proposal? To address objections preemptively in the proposal, understand the client's pain points, allowing you to provide clear, well-reasoned responses. Demonstrating that you've considered their concerns and offered solutions instills confidence. Is it necessary to customize each proposal for different clients? Absolutely. Tailor each proposal to align with the client's unique needs, preferences, and challenges. Personalized proposals are more likely to resonate and build trust. What strategies can I employ to make my solar sales proposal stand out amidst competition? Focus on identifying and emphasizing your Unique Selling Point (USP). Whether it's your exceptional customer service, production guarantees, top-notch products and warranties — call out what makes your company unique and why they can trust you to get the job done right Should I include a section on potential future upgrades of the solar system? If it's relevant to the client, definitely consider including a section discussing the possibility of future system upgrades or expansions. This underscores the solution's long-term scalability. How can I create a sense of urgency in the proposal without pressuring the client? You can establish urgency by offering limited-time promotions or incentives for early acceptance. Employ language that conveys the benefits of taking action sooner rather than later. What is the optimal length for a solar sales proposal? While there is no strict, "right" answer, a well-structured proposal should be concise. Focus on delivering essential information and leverage software like Sales Mode that will help you streamline and expedite the process. Hungry for more tips for top-notch solar proposals? Schedule a customized, no-pressure demo to see how Sales Mode can help supercharge your proposals. Looking for more information? Download our free Playbook for Solar Proposals That Close. Click above to get even more information about what makes a successful solar sales proposal. ### 3 key benefits of streamlined solar financing from Aurora and Dividend Figuring out how to pay is one of the most important aspects of going solar. And to many customers, it can be a confusing and slow process. That's a big reason why Aurora Solar has teamed up with Dividend, one of the country’s leading and most trusted solar loan providers.  Integrated directly into Sales Mode, Dividend’s streamlined financing platform can rapidly accelerate your customer pre-approval process, let you show customers different options, and help you quickly draw up accurate loan contracts.  Click the image to learn more about how Aurora + Dividend can help your business. Designed to increase your company’s efficiency, revenue, and customer satisfaction ratings, here are three key ways that Dividend financing can help facilitate new sales and grow your solar business. Save time and drive solar sales with integrated financing You can present financial comparisons in Sales Mode side-by-side so that customers can weigh their options while you work with them to explore different values for down payment, loan term, or monthly payment. While showing your interested clients these financing options in real-time with Aurora, Dividend’s efficient and secure pre-approval process can help close customers on the spot with applications that are typically approved in 15 seconds or less.  Then, with a fully-customizable proposal that allows for more personalization, you can also use the powers of Aurora and Dividend together to include battery storage or savings from the Inflation Reduction Act. A fully customizable proposal lets you tailor the info to what each customer wants. Avoid redundant and error-prone data entry  Knowing that most solar energy companies work across multiple platforms to design systems, make sales, and facilitate customer financing, the Dividend integration in Sales Mode helps to keep more information contained in one easy-to-use, customer-facing space.  By creating a streamlined financing path that's designed to help move homeowners forward in your sales conversations, Aurora's design and sales engines communicate directly with Dividend’s financing platform to ensure all project information remains consistent from proposal through permission-to-operate. When it comes time to take the most crucial step in the sales process, Contract Manager allows you to create accurate, ready-to-sign documents in seconds without any additional manual processes to draw up customer purchase and financing agreements.  Build trust and provide a better customer experience The Dividend loan integration represents another step forward towards Aurora’s goal to create the best platform for solar companies to build trust with prospective customers through detailed and accurate sales proposals. Today, 48% of customers believe that it's important for installers to offer multiple financing options, which is why Sales Mode is designed to showcase the benefits and tradeoffs of various solar payment plans. With the Dividend integration, you can take a fully consultative approach to your sales conversations and create several unique financing options for your clients right in front of their eyes. You can also build customer trust in your proposal by sharing info about Dividend’s accreditations and premium services. In addition to all of the great things you can offer your customers, Dividend’s white glove service can provide them with: Around-the-clock project management support and prompt issue resolutionStability with the 17th largest bank in the country, Fifth Third Access to competitive pricing and streamlined funding approval Watch the full webinar to learn more. Experience Dividend-integrated financing for yourself  Want to learn more? Schedule a quick demo to get your specific questions answeredWatch this walk-through video to see exactly how to use Dividend financing in Sales Mode to enable the best possible buying experience for your solar prospectsReady to try it yourself? Create an account to get started  ### Weeks-long solar sales process? AI can help shrink it to minutes There’s a saying, not sure you’ve heard it before: “A picture speaks a thousand words.” Oftentimes, this is a gross exaggeration. Sometimes, though, it’s pretty accurate. CertainTeed is a case in point. A subsidiary of Saint-Gobain, and a leading brand and manufacturer of building products, including roofing, siding, insulation, and solar, CertainTeed and their affiliates have more than 6,900 employees and 60 manufacturing facilities throughout the United States and Canada.  In March of 2023, the company expanded into solar, launching its Solstice® line of solar roofing solutions — Solstice Shingle, an integrated shingle product, and Solstice Panel, a retrofit solar panel. How did a company of this size, with this history, add a major new product line — and succeed doing it? Well, it wasn’t all smooth sailing. “Our initial workflow had our solar roofing specialists request third-party designs and use manual spreadsheets,” Mark Stevens, Solar Applications Manager at CertainTeed, explained. “From collecting the homeowner’s information to waiting for the design (and re-designs), the whole process took a sluggish 3 to 4 weeks.” We all know that, in solar speed (and accuracy) is of the essence, so this workflow was severely hampering their business.  Rather than spend another 805 words trying to explain, explore the visuals below to uncover the critical steps CertainTeed removed to enhance their solar workflow, and cut their process time from weeks to minutes. Click the image to get more details. Aurora equipped CertainTeed with a complete solar sales and design package to launch their new Solstice program. Before Aurora, roofing specialists gathered lead information, manually requested third-party designs, and then returned them for adjustments — a lengthy sequence that unfolded away from the customer and took between 3 and 4 weeks. With Aurora AI, that process was condensed into a 10-minute session, carried out directly in front of the customer. “Our contractors love to use it because it delivers that high-quality customer experience we want every homeowner to have,” Mark explains. “Instead of taking weeks to send revisions back and forth, the contractor and homeowner can have a more collaborative and transparent conversation, which is critical when you’re making the big decision of going solar.” Dive into our detailed case study to see the transformative strategies in action. Click the image to learn more. ### TL;DR: An overview of 2023’s solar industry macro trends As we approach the final days of the year, it’s a timely opportunity to reflect on the trends that shaped the solar industry in 2023. Throughout December, we’ll be highlighting some of the year’s biggest themes and takeaways, by way of our favorite thought-provoking pieces. To start, we’re zooming out to see the bigger picture: the macro trends influencing the pace and performance of the solar industry, and what they can teach us for 2024. Inflation or nah?  We’ve all been living with inflation, supply chain issues, and high interest rates for a few years now — a familiar trend that is still very much top of mind for potential solar customers. While inflation is on the decline, it’s still above pre-pandemic levels. A lesser-discussed trend is that despite these external challenges, solar panel prices are continuing to fall. Not only that, they’re continuing to increase in quality.  TL;DR: Better panels, lower prices. Learn more from Yale Climate Connections The sun is setting on the fossil fuel era. “Peak” fossil fuel Raise your hand if you feel like you’ve been hearing about “peak fossil fuel” use for decades [raises hand]. Well the wait may finally be over, thanks to the perfect confluence of cheaper panels, intentional policy, and public support.  TL;DR: A peak, a plateau, and then downhill for fossil fuels.  Learn more from the New York Times All electric everything Of course, to get to (and past) peak fossil fuel, we need to intentionally electrify, well, everything. That means fossil-fuel-free cars, home heating systems, kitchen appliances, and more. The whole home electrification movement took a huge step forward in 2023, but is it just us in the renewable energy business that are interested? Increasingly, studies say it’s not. TL;DR: Electric is the new black. Learn more from the Yale Program on Climate Communication Electric cars are kicking into overdrive. VPPs are AOK For renewables like solar to power this whole electrification revolution (“Electrification Revolution” t-shirts coming soon), we need to smooth out the time lag between energy production (when the sun is shining) and heavy energy use (often after the sun goes down). As we see during winter and summer blackouts, we need reliable power sources to supplement the grid when demand is high. We need to build more utility-scale solar, yes, but we can also put those residential panels and batteries to work as virtual power plants (VPPs). But what’s involved? Glad you asked… TL;DR: I am the power plant. Learn more from the Aurora blog The IRA stays winning While this landmark legislation passed in 2022, the Inflation Reduction Act (IRA), still looms large over the solar industry. It’s a main driver of the whole home electrification trends above, and gives real certainty to the Investment Tax Credit (ITC) and other incentives. But homeowners still have questions, especially when it comes to ROI.  TL;DR: A great, printable resource. Learn more from Rewiring America Behind the latest acronyms, studies, polls, and policies is the underlying theme that solar is here to stay — and to grow. Stay tuned for more of our year-end reflections, and what they mean for the year ahead.  In the meantime, looking to investigate how these trends, and more, will shape the solar industry in 2024? You’re in luck. Register for our webinar with Solar Power World, Risks & Opportunities for Solar in 2024, on December 7 to get strategies you can start implementing today to make sure you’re prepared for the new year. Click the image to learn more and register for the webinar. Credits: Power plant photo by Alexander Tsang ### Expanding into C&I solar: Discover the software tools for success Demand for commercial and industrial (C&I) solar is booming, with many opportunities for residential and small-scale installers to expand into a growing and profitable sector.   Despite the reality that this past year was challenging for many companies riding the infamous “solar coaster,” commercial solar remained stable in 2023. Helped by incentives established in the 2022 Inflation Reduction Act, commercial solar was even able to increase quarterly throughout this past year despite industry-wide challenges.    Of course, just because the opportunity exists, it doesn’t mean that breaking into C&I solar is easy.  After all, the commercial solar development process requires significantly more effort than typical residential installations, and once you manage to get over the initial learning curve, it can still be difficult to manage your time and resources effectively within the C&I space. Breaking into commercial solar — features you need Compared to residential projects, commercial solar installations are much more complex, often requiring more of just about everything. More time. More resources. More software tools. And hopefully, more profit ahead.  In our recent webinar, Expanding into C&I: The Tools You Need for Success, we investigated the essential software tools and features that can help you fast-track your way into C&I solar. We'll detail three of them here; listen to the full webinar on demand to get more insights. Click above to watch the full webinar on demand. 1. LIDAR to speed up the design to sales handoff With LIDAR mapping that covers over 98% of the US population, HelioScope is built upon an NREL-approved engine to ensure data accuracy.  Designed to help reduce time-consuming site visits, LIDAR in HelioScope allows users to create accurate, high-quality C&I solar designs, even before setting a single foot on the physical property that will host the system.    By speeding up the sometimes-sluggish C&I solar design and sales process, HelioScope can help developers obliterate backlogs, quickly generate multiple options for clients, and move prospective projects forward with less worry about nitty-gritty detail accuracy.  2. APIs to sync teams and avoid data entry errors Even more so than residential solar, commercial systems require a massive team effort and typically involve far more stakeholders than your average home installation. From designers to consultants, EPCs, and necessary specialists, consistency in data is absolutely critical when selling and developing solar energy at scale.  To streamline cross-team communications and minimize lost time between project steps, HelioScope users can integrate several APIs to improve their solar workflows and eliminate opportunities for human error. Using custom automation to cut time spent moving data across platforms, Aurora’s growing API library can help your team efficiently design and sell commercial projects with speed and confidence, no matter what your unique tool set looks like.   3. Financial analysis tools to calculate expected ROI  Following the footsteps of massive companies like Walmart and Apple, most savvy business owners understand the value of commercial solar energy systems, both financially and environmentally. Calculating exact financial benefits, however, can be very complicated when considering all of the variables at stake in a C&I solar project.  In order to help your prospects quickly understand the value of their unique solar investment, HelioScope includes many powerful, yet intuitive, financial analysis tools. Using HelioScope, you can:  Use our utility rate builder template to model commercial and industrial ratesMake ROI calculations based on system price, loan structures, commercial solar tax credits, expected savings, depreciation deductions, and moreClose sales more quickly with instant report and proposal generation that includes your branding and design settingsUse our out of the box integration with Energy Toolbase to create a best in class Design & battery storage modeling workflow  In closing… With few signs of slowing down anytime soon, the C&I solar space is likely headed toward continued growth and development for years to come.  If you’re considering an expansion into the C&I solar market, Aurora and HelioScope are here to help you save time and reduce expenses within your design and sales workflows. Beyond our high-quality software, advanced APIs, and user-friendly features, we also offer professional commercial modeling services and dedicated customer support to those growing their businesses within the C&I space. To learn more about how to break into C&I solar, schedule a quick demo or try HelioScope free for 14 days.  Investigate more resources: The Big Book of Commercial Solar Must-HavesThe Ultimate Commercial Solar BundleOptimize Your Commercial Solar Design Process with LIDAR ### Igniting Change: How GRID Alternatives and Aurora are bringing solar to all Welcome to the first entry in our Igniting Change series. In this series we’ll highlight some of Aurora’s amazing partners and how they’re helping their communities. Our first post looks at the great work GRID Alternatives is doing. Want to learn more? Check out our Impact page for more details on how you can get involved. To achieve the expansive goals we all have for solar — and renewable energy in general — it’s going to take installs of all shapes and sizes, as well as a trained workforce to do the job. When we think of solar, many of us default to the classic install on a suburban roof. Don’t get us wrong, this is an extremely important part of the energy transition. But a renewable energy future is contingent on solar being accessible to everyone, everywhere, no matter their housing or location.  This is why organizations like GRID Alternatives are so important. The organization believes that a rapid, equitable transition to a world powered by renewable energy needs to benefit everyone. In GRID’s own words: “Renewable energy can drive economic growth and environmental benefits in communities most impacted by underemployment, pollution, and climate change.” GRID is a 501(c)(3) certified nonprofit organization based in Oakland, California, with affiliate offices serving all of California, Colorado, the District of Columbia, and Puerto Rico. GRID’s Tribal Program works with Indigenous Nations across the country to achieve energy sovereignty. Internationally, GRID works to improve energy access for off-grid communities in Nepal, Nicaragua, and Mexico.  This work takes creativity. Sure, you could focus just on solar installs, or just on workforce development, or just on advocacy. But GRID is different because it prioritizes each of these approaches, intentionally partnering with communities. It would be impossible to highlight everything the organization does in one post, so let’s look at some of the highlights. Solar installs Highlighting its renewable energy for everyone vision — and meshing closely with Aurora’s mission of “a future of solar energy for all” — GRID is leading the way across residential, multifamily, and community solar installs.  In fact, since it was founded in 2001, GRID has served close to 30,000 households and 250 multi-family and community facilities, totaling  2,820,250,431 kW generated, and saving customers almost $700 million. Aurora is proud to help in this effort, donating 170 HelioScope licenses since 2014. Since then, GRID has completed 218 commercial, multi-family, and community solar projects, serving 9,500 families. These projects are estimated to generate $118 million in long-term energy cost savings while preventing 588,000 tons of carbon emissions. Solar education Every solar installer is well aware of the need for qualified, trained professionals in the industry. In fact, according to Aurora’s Solar Industry Snapshot, “[The] struggle to increase employee headcount due to lack of qualified candidates” was one of the top 3 challenges solar installers had in meeting customer demand.  GRID has also stepped in with its Workforce Development Program to promote the technical skills and education required to be successful in today’s green industries. This includes its Installation Basic Training curriculum and its SolarCorps Fellowship Program. In September 2023, GRID Alternatives and Aurora announced a pilot program in partnership with GRID’s SolarCorps fellowship cohort. The idea is that Aurora will provide software, training, and certifications to help Fellows build a career pipeline into the growing clean energy industry. For this pilot run, we co-designed and implemented a curriculum that integrates Aurora's software into GRID's SolarCorps Fellowship program. The pilot program has 48 SolarCorps fellows from diverse backgrounds, including women, individuals who have been justice involved, and residents from underserved communities.  This collaboration aligns with both organizations' missions to expand access to solar energy for all, increasing the number of qualified professionals that will power a just transition to clean energy, and elevating individuals and groups who need job placement the most. As evidenced by the historic Inflation Reduction Act — which is projected to employ around 400,000 people — incorporating high-quality jobs through these labor workforce pathways is essential to the clean energy transition. So, in the future, we might also explore job placement opportunities through Aurora Solar’s network of solar customers to help realize this goal.  As we look towards the horizon, Aurora is more than proud — we are, in partnership, inspired to stand with GRID Alternative — as they continue to revolutionize the solar landscape and build a future that is as sustainable as it is just and equitable. Stay with us on this journey.  ### Managing the solar-plus-storage learning curve: Insights from industry veterans The US residential solar + storage market continues its upward trajectory, with the Solar Energy Industries Association (SEIA) predicting that by 2025, one in every three new solar PV systems will be paired with storage. Driving this growth are factors like increasing power outages, net metering policies, financial incentives, and virtual power plants (VPPs). As this demand continues to grow, photovoltaic (PV) installers are in a great position to benefit by expanding their product offerings. Our Empower 2023 session — Powering the Future: Unlocking Business Growth through Solar Storage — explored this opportunity and how installers can take advantage. Click above to watch this session (and other Empower content) for free, on demand. The session investigated growth opportunities, challenges ahead, and the importance of customer education for storage sales. Let's look at some of the drivers for growth, as well as how to manage the transition to battery storage. What’s driving solar-plus-storage growth? There are a few things the panel mentioned when discussing the solar + storage opportunity. Increasing grid reliability issues and outages  Grid reliability and outages are driving many customers to seek backup power solutions as an insurance policy against blackouts. Weather-related disruptions like storms, heatwaves, and wildfires are becoming more frequent across the country, leading to more power failures. Attachment rates for solar + storage often spike following these major outage events, as utility consumers seek protection. Revenue opportunities from battery storage New revenue opportunities through virtual power plant (VPP) and grid services programs are also incentivizing customers to install storage. These programs pay solar households to let utilities access their stored battery capacity to help balance supply and demand. Essentially, utilities are willing to pay for the right to tap into these distributed virtual power plants remotely and on demand. Battery storage incentives Financial incentives like California's Self-Generation Incentive Program (SGIP) are making storage systems more affordable. SGIP provides upfront rebates for adding storage to solar. The program increased rebates to $150 per kWh recently for low-income households, directly incentivizing more storage add-ons. Changes in net metering  Changes to net metering policies — seen in California with NEM 3 — are encouraging greater self-consumption of solar and making batteries more financially attractive. Customers can store excess daytime solar production to use in the evening when rates are higher. With solar incentives shifting in many markets, adding storage solutions provide long-term ROI. To see how Aurora can help solve the challenges of selling storage — including our new hourly visualizations — click through this quick tour. Visit Tour Bright future for battery storage While policy shifts like net metering 3.0 in California have created some short-term headwinds, the veteran solar executives on the webinar panel emphasized that the long-term tailwinds are strong. The outlook for solar paired with storage remains positive over the next 5-10 years. Despite this continued growth, PV installers still face challenges scaling up their storage capabilities. Steep learning curves, evolving best practices, and new complexities can make growing storage sales difficult. Managing the transition to battery storage for solar systems While the fundamentals of sizing panels and inverters carry over from their solar-only experience, the increased complexity of integrated systems can trip up those unprepared for the intricacies. Configuration challenges, policy shifts, and general project intricacies can all prove daunting. Tools like hour-by-hour modeling are key for selling more storage. (Click the image for more) Below are some of the biggest obstacles PV installers face when integrating storage solutions into their core offerings: Optimally configuring a solar + storage system introduces challenges, as more components must work together seamlessly. Default battery and inverter pairings often don’t maximize savings potential. Detailed modeling is essential but adds time and complexity compared to solar-only projects. Leveraging software tools can help streamline otherwise complex storage configurations with smart recommendations for compatible components and sizes. Staying current on the evolving incentive landscape also grows tougher with solar batteries in the mix. Policy changes around net metering, demand charges, time-of-use rates, and more all impact the value proposition. Dedicated staff must track federal, state, and utility developments to maximize revenue and savings. For example, some utilities offer rebates for solar plus storage — but not separately. Keeping abreast of the latest programs and rate structures takes focus.The projects themselves also increase in intricacy. Crews adept at rooftop solar installations often lack experience with residential battery wiring and electrical panel work. Specialized storage install teams are ideal, as running conduits and managing upgraded panels differs greatly. Likewise, securing permits and inspections requires nuanced expertise, as authority having jurisdictions (AHJs) are still adapting to evolving protocols around home batteries. Having skilled office staff that understand logistics and local requirements saves major headaches in the field.While installers must level up their knowledge, buyers also face education gaps on actual system capabilities. Ensuring customers have proper expectations is crucial, as overpromising leads to disappointment and negative reviews. Providing transparent consultations with backup power and duration options prevents unwelcome surprises down the road. Following up post-installation to address concerns and gather feedback further optimizes the customer experience. Though scaling storage capabilities brings challenges, the key lies in educating both staff and customers. Leveraging the right tools to simplify complex configurations, pricing, and proposals also pays dividends. With preparation and dedication, PV installers can overcome the pitfalls as solar plus storage continues to gain in popularity. In closing…  Watch the entire session on demand to get insights into even more potential opportunities and pitfalls facing PV installers: Choosing reliable, proven storage products from reputable battery manufacturers Managing inspections and jurisdictional requirements – even as they evolveSetting proper customer expectations around battery storage capabilities Avoiding overpromising storage performance and battery capacity Have more questions? Schedule a quick, personalized demo to learn more. ### Harnessing the Sun with AI: A new dawn for solar technology It feels like we’ve been talking about Artificial Intelligence (AI) and all its various forms for a while now. From those creepy early robots that could deliver food on a tray, to Watson winning Jeopardy, AI has a surprisingly long history — even if it’s felt a little abstract to most of us. The groundbreaking advent of ChatGPT, however, made AI real to many people, and seemed to dramatically accelerate the timeline. What was once a distant future concept has become a transformative force today, reshaping industries across the globe, including the solar sector.  The era of true AI isn't on the horizon — in many ways it's already here. We had a great discussion about AI at Empower 2023, which highlighted the critical role of AI in optimizing energy usage, enhancing PV system design, and addressing key challenges in the solar sector. This article explores some of the key topics covered during the discussion, and touches on many of the most promising AI-powered applications that could help make solar technology truly mainstream in the years ahead. Click above to watch "Shedding Light on AI: Demystifying Artificial Intelligence in the Solar Industry" (and other Empower sessions) on demand. The convergence of AI and solar energy for sustainable innovation Solar’s unprecedented growth is encouraging for us all, but it also presents some challenges, including hiring and training people quickly enough to meet this demand. This is just one area where AI will help lighten the load.  This is clearly evident in areas like 3D modeling, configurations, and light detection and ranging (LIDAR) analysis. Salespeople in the field can use these tools to render different PV system models in real-time as they help customers decide on the optimal design for their own budget and energy goals. However, progress has been incremental — hindered by slow adoption rates, limited data access, and a historical reliance on face-to-face consultations that necessitate deploying large off-site technician teams. These limitations are quickly eroding as stakeholders throughout the industry continue to leverage the mind-boggling power of generative AI models and large data sets. How AI is being used in solar There are many possible uses for AI in the solar industry, here are some that are helping right now.  Data and AI systems Data is the lifeblood of AI, driving its growth and effectiveness. In the solar industry, companies like SolarEdge Technologies are leveraging vast amounts of sensor data to train AI models. This data-driven approach is essential for developing and improving AI systems, enabling more accurate predictions, and delivering personalized solutions. As more distributed energy resources ship with sensors and receivers, data collection will become easier and even more accurate — leading to better, cheaper, and more powerful designs and energy management solutions. According to Chris Thompson, Vice President of Product and Technical Marketing at SolarEdge Technologies, "In the history of the industry, we have never seen such strong price signaling, you know, in terms of market formation. So when I look at our own solutions and how AI has led those new products that we are launching... it's using this data." 3D modeling and design AI's application in 3D modeling and design is transforming solar system planning. Aurora AI is trained on nearly half a million roofs originally modeled in Aurora. It's this training data in combination with quality geospatial data that creates the 3D model. This automation not only speeds up the design process but also enhances precision, allowing for tailored solar system configurations that meet individual needs. It also leads to more accurate production estimates therefore leading to installations that produce what was promised and happier home owners. Energy optimization AI is playing a pivotal role in optimizing energy usage and economics within the solar industry. Complex algorithms predict solar generation and energy demand, enabling the most cost-effective dispatch of energy. This optimization extends to real-time adjustments, making solar energy more efficient and economically viable. This leads to optimal savings for residential and commercial users. However, predictive modeling can also make energy arbitrage more lucrative for those trading on the open markets. See how leading solar installers use AI to generate high-quality leads. Where AI has potential in solar With emerging AI tools, there are now a range of potential applications that can help increase solar adoption — while simultaneously speeding up installation times and making the technology even more affordable than it already is.  When deployed correctly and at scale, AI models can act as: Digital Consultants and Customer Support: AI-powered models for personalized guidance in selecting solar solutions and continuous support. You’ll still need boots on the roof to perform the actual installation. But this level of digital support can make the process both cheaper and more successful — without needing to deploy teams into the field.Automated Permitting and Regulatory Compliance: Streamlining processes, reducing administrative burdens, and accelerating project timelines. A sufficiently trained AI model would have access to all the latest bylaws, regulations, HOA contracts, and even utility rates.3D Modeling and Predictive Maintenance: Utilizing AI algorithms for potential system failures, recommending preemptive actions, and minimizing downtime. In addition to real-time access to manufacturer documentation, future AI models will also be able to monitor all components connected to the grid to generate accurate forecasts about failure rates, maintenance schedules, and general upkeep. This accuracy will only improve as sensors and receivers become more standard in our shift to truly virtual power plants.Intelligent Energy Management: Integrating AI with IoT for dynamically adjusting energy consumption and production to achieve optimal efficiency. For many, this represents the holy grail — i.e. a controller that optimizes energy generation, storage, and dispatch at scale so that the grid remains as green, affordable, and reliable as possible — all in real time. These applications mirror current AI trends, showcasing a roadmap for a future where AI is an essential part of the solar industry. Conclusion  AI is a powerful tool for the solar industry, and its influence is only growing. It’s easy to envision a vibrant future where AI is not just an accessory but a core driver of innovation and environmental responsibility. In a world striving for cleaner energy solutions, the solar industry's embrace of AI marks a significant stride towards a more intelligent, adaptable, and sustainable energy landscape. To learn more about AI and solar, watch the entire Empower session on demand.  More questions? Check out the FAQs below, then book a personalized demo to get all your AI questions answered. Click above to watch "Shedding Light on AI: Demystifying Artificial Intelligence in the Solar Industry" (and other Empower sessions) on demand. AI in renewable energy frequently asked questions How can AI help renewable energy succeed? AI has the opportunity to change the renewable energy sector as we know it, specifically solar energy, by enhancing efficiency, reliability, and integration. AI can eventually touch every part of the process from optimization of energy production, including forecasting and performance monitoring, to accessibility and adoption.  What are the benefits of AI in renewable energy? AI has many benefits in the renewable energy space. Here’s a few:  Efficiency and automation: AI can help streamline repetitive tasks and optimize your day-to-day operations, leading to enhanced productivityData analytics: AI can process large datasets quickly, providing valuable insights and reducing the cost of predictionCost reduction: AI allows you to automate previously manual processes to reduce operational and labor costsCustomer experience: AI allows you to better support your customers through personalization as well as chatbots and gathering consumer insights Are there any challenges  to using AI in renewable energy? AI does have its own set of challenges. These include issues related to data privacy, security concerns, and the need for substantial initial investment, among others. Also, human workers have fears about their jobs being completely replaced by AI. Fortunately for solar, there is more work to be done than there are people to do it and AI can be used to augment the existing workforce.  ### Aurora Q3 2023 updates: Flexible pricing, dealer customizations, and post-sales plan sets Note: This blog highlights Aurora updates from the third quarter of 2023, as detailed in the Quarterly Product Release Webinar held in October 2023. It was a busy summer here at Aurora Solar, and as a result, there are many new and exciting features now live on our platform.  Fueled by your feedback and our commitment to improving efficiency and accuracy at every step of the solar sales, design, and development process, here are the most powerful Aurora product updates that premiered in the third quarter of 2023. Get all the info on these new features direct from our team in the latest edition of Aurora’s Quarterly Product Release Webinar Series. Click the image to watch the full webinar on demand. Enhanced flexibility and accuracy for PV system pricing  To help solar reps generate better quotes, faster, we added several new features to our PV system pricing and financing tools that are designed to save time and increase data accuracy before, during, and after customer consultations.  Incentives Database Available to all Aurora Solar users, the Incentives Database accelerates the solar sales process with hundreds of national, state, and local incentives detailed, organized, and ready for easy incorporation into your pricing calculations. Within the database, you can search for cost- and performance-based incentives by state (such as in the image above) or by keyword, and include them in new solar proposals.   Beyond what's publicly available from governments, utilities, and third-party programs, Aurora's Incentives Database also allows you to create your own custom solar incentives that can be applied seamlessly to projects you've created.  Automatic Adders  With a self-explanatory name, Automatic Adders can automatically apply pricing adders to your sales proposals when specific conditions are met by the system or project — such as the type of inverter selected or if the site's roof pitch falls above or below a certain grade. In the image above, we've illustrated a per-watt adder that automatically applies to a project’s pricing calculations if a specific inverter (SUNO-U520F-12X12UW) is used.  By relieving sales reps of the duty to remember and manually calculate price escalators, Automatic Adders can help you save time, maintain consistency, and ensure accuracy at the point of sale, no matter the size of your organization.   Financing comparisons in Sales Mode & down payments When presenting a proposal in Aurora Solar Sales Mode, you can now educate and visually walk your leads through their different financial options with side-by-side comparisons for loans, leases, and cash deals — plus the new ability to factor in custom down payments for financed systems.  With live financial comparisons in Sales Mode, you can educate your leads about their payment options based on the unique aspects of their project, including the automatic calculation of important money metrics such as total investment costs, lifetime savings, and expected monthly payment rates. Pricing via API If you maintain your solar pricing sheet, matrix, or mechanism outside of the Aurora platform (e.g. in your CMS), our new Pricing via API capability can help you reduce errors and save time when calculating and re-calculating system costs across multiple platforms.   For example, let’s say that you make a minor adjustment in your CRM that will increase the cost of a lead’s PV system. Using our Pricing API endpoints, this new information could automatically update in Aurora, eliminating the need to manually open the affected project and reconfigure your pricing sheet.    Learn how to scale your solar organization seamlessly with APIs Improved Partner Management — customizations & controls The Aurora Solar Partner Management dashboard allows you to control your dealer network with all the settings, customizations, and permissions necessary to effectively expand your solar business. In our improved Partner Management platform, you can:    Set up dealers in your Aurora account within minutes and completely control what they can do and see within the platform  Give your dealers access to high-powered tools like Sales Mode, Lead Capture AI, and Aurora’s Expert Modeling services Set up permissions and guardrails so that dealers can customize aspects of their proposals within predefined limits, such as the ability to add a logo, adjust base price per watt, or apply adders, discounts, and more As a central network command center, the Partner Management feature is designed to give you a unified experience when managing all of your sales partners in one location. With new intuitive features, it's now easier than ever add dealer-to-dealer customizations and apply them to select partners.    Learn more in our Guide to Solar Dealer Networks e-book New post-sales plan sets features In 2023, Aurora Solar is celebrating 10 years in business, including one year creating permit-ready plan sets for our customers (with a 93% first-time pass rating). During this time, we've learned a lot and have made several improvements to help solar companies more easily navigate the constantly changing and highly variable world of permit-ready plan sets for AHJs. Solar and storage plan sets  When using our expert Plan Sets services, Aurora users can now incorporate solar battery storage into design requests with the click of a button. Including a hardware library that covers approximately 90% of the solar battery market, our experts are now available to create permit-ready residential PV and storage system plan sets in AHJs across the country.   Engineering Stamps from Aurora  Designed to seamlessly integrate within your workflow, new Engineering Stamps from Aurora can accelerate a crucial step in the solar development process, particularly for companies without an in-house engineer or plan sets designer. Your designers provide us with everything needed for the homeowner's systems and our experts ensure the technical aspects of your plans meet local codes. Solar pros can now trust an expert with Aurora to provide the Professional Engineer (PE) electrical and structural stamps necessary for AHJ submission and approval. (To learn more about exactly what our Plan Sets Service provides, please watch the full webinar or get in touch with any specific questions.) Learn more about Aurora's permit-ready plan sets Recap and resources These new features are all designed to help you save time, increase accuracy, and effectively scale your solar business. With deeper levels of customization and further control over your solar projects with guardrails, permissions, and preset proposal elements, we hope these summer of 2023 updates mark yet another step forward to help solar professionals operate as efficiently as possible.  Click above to watch the entire webinar on demand. Want to learn more? Schedule a chat to get all your questions answered Take a look at our latest Solar Industry Snapshot Or explore our massive Content Library Archive for Solar Businesses  ### Solar CEOs identify spooky challenges and potential treats for 2024 — the opportunities Happy Halloween! To celebrate the season — and the final couple months of 2023 — we’re looking at the challenges (tricks) and opportunities (treats) solar leaders are seeing for the rest of the year, and beyond.  Last week we looked at the tricks. So today, we’ll investigate some of the treats these solar leaders are anticipating as the year draws to a close. As a reminder, our solar leaders come from a variety of backgrounds and spoke about the opportunities and challenges in the solar industry today, and their thoughts on the future at Empower 2023: Steph Speirs, Co-founder & CEO of Solstice Power Technologies Abby Buchmiller, Co-founder of RDCL Services Rebekah Carpenter, Founder of Fingerlakes Renewables Solar Energy Click here to watch the entire session on demand. Click above to watch any session from Empower 2023 on demand. What opportunities do you see coming down the road?   One of the many things Steph Speirs is excited about is some of the provisions in the IRA that will help nonprofits.  “One of the things that's most exciting about the IRA is the chance for nonprofits to finally take advantage of the clean energy transition with direct pay. Direct pay — meaning instead of not being able to take advantage of any tax credits or having to partner with a tax equity partner to get solar — nonprofits can now get the value of tax credits on their tax return. They don’t get a tax burden, they’ll just get a grant the year after they install solar…  "It’s a low-risk opportunity for financiers to step in and provide that bridge financing for nonprofits to be able to afford solar, because these non-profits still don’t have the resources to pay for any of the upfront costs. But there is now money in getting those tax credits paid back — and it means non-profits can take more of an ownership stake in the projects they are building…”  Noting a renewed focus on the consumer, Abby Buchmiller is also optimistic about the shape and direction of the solar industry as it matures and improves. “The industry is getting smarter as a whole, and the industry is getting larger as a whole. I’m part of more conversations that are regarding self-regulation as an industry — creating some basic standardization, best practices, and breaking down a lot of the silos that I know I’ve experienced as an outsider in the space early on — a lot more transparency and information sharing.” Innovation in Solar Technology How is technology transforming the way you do business?   Of course, a big part of the opportunity in solar relies on — and is driven by — technology. So, to close, let’s look at how our leaders see technology transforming solar, and creating even more opportunities.  With the potential to intelligently power automated life-sustaining systems, Rebekah Carpenter explained how innovations in solar technology reaffirm the industry’s positive impact on human health. “I love microinverters, [improvements] in battery efficiency, transfer of energy, monitoring, and the ability to maintain heating and cooling systems… It is thrilling to be able to offer integrated equipment to make lives better… We get to have life saving mechanisms that use solar and renewable technologies that are going to change the way people can be born and the way people can age in place, and take care of people who are more vulnerable — not just financially — but take care of them physically. I think this is a place that solar plus storage is exciting.”  Helping more Americans financially achieve solar, Speirs and Solstice used AI to develop a way to replace traditional credit score checks when applying for a PV loan.  “Instead of using FICO credit scores, we won a grant from the Department of Energy to create a new score called the Energy Score. It's a machine learning algorithm that's based on people's utility repayment history and a bunch of other demographic data. The Energy Score is more accurate at predicting who pays their utility bills on time compared to FICO, because FICO doesn't measure a utility bill history, and it's more inclusive of low-income Americans who would have been locked out by a FICO qualification standard.”  Zooming out, Buchmiller addressed how technological advances can accelerate every aspect of a solar business.  “We're looking to solve a lot with automation — increase speed, decrease a lot of the redundancy in workflows. And we're also looking to solve a lot of the labor shortage through some really smart technological dispatching capabilities… Aurora is a great example of this. I tell a lot of founders that I am working with that you really can build a solution that works for you with some of the super-smart tech tools that are available today.”  That’s all the tricks and treats for this Halloween! Want to see some of the homeowner and installer trends we saw in 2023? Download our free 2023 Solar Industry Snapshot. Click above to download the entire 2023 Solar Industry Snapshot for free. Featured image by Nick Fewings. ### California solar incentives, rebates, and tax credits you need to know Note: This blog was originally published in March 2022. It was updated October 30, 2023 to reflect recent changes. If you have any questions, please contact us. With California’s year-round sunny skies, ambitious climate change goals, the introduction of NEM 3.0, and a selection of financial incentives and benefits to choose from, it’s no surprise that it leads U.S. in solar. According to SEIA, California has invested 90.6 billion dollars into solar and currently more than a quarter of its electricity is generated from it, with numbers expected to increase. With that being said, in order for California to reach its climate and energy goals, widespread adoption is essential. Luckily, there are several solar incentives, programs, and rebates for consumers that make going solar more affordable. The exact cost of your PV system (and how much you’ll save on your energy bill) depends on a list of factors. These include: the size of your PV system, which installer you choose, eligible solar incentives, which utility services your region and their electricity rate structure, and how much electricity you use.  Learn more about California NEM 3 in our NEM 3 Resource Center. Regardless of where you live in California, there are a few solar incentives and rebates for you, including property-assessed clean energy (PACE), property tax exemption for PV systems, and net energy metering (NEM). Another solar tax incentive that is quite substantial is the federal solar tax credit — also known as the investment tax credit (ITC). It is worth highlighting that incentives are also a huge benefit in other states, like Texas, which is one of the most deregulated electricity markets in the country. Continue reading to find out more about these offerings. How do California solar tax credits work? There are a few different tax incentives that California residents can benefit from when they install solar. However, most commonly, these incentives allow homeowners and businesses to deduct a portion of the costs associated with the installation of solar panels from their tax obligations. When a solar system is installed, the owner calculates the total eligible cost, then multiplies it by the tax credit rate to determine the amount of the credit. This amount can then be subtracted from their total tax liability for that year. California tax-based solar incentives Property-Assessed Clean Energy (PACE)  PACE — known as the Home Energy Renovation Opportunity (HERO) — is a loan option that allows property owners to finance their qualified solar energy and energy efficiency projects through their property taxes. Local or state governments, working with traditional financiers, fund the upfront cost of the project, and homeowners pay back their local authority via an increased property tax bill, usually over a period of 20 years. PACE programs are currently operating in 30+ states, including California. Property tax exclusion for solar energy systems There are two main ways a reassessment at full market value of your property can be triggered in California: when you sell or buy a house and when there’s new construction or major house renovations. Section 73 of the state’s revenue and taxation code allows a property tax exclusion for qualifying new solar installations. Meaning, your property taxes will not increase if you install solar on your property. This tax exclusion was set to expire in 2016, but is now extended through January 1, 2025. Find out more about the active solar energy system tax exclusion and what qualifies here. The Investment Tax Credit Though not a California-specific solar tax incentive, the federal ITC provides additional and significant savings for solar installations. Thanks to a recent extension and the Inflation Reduction Act, every homeowner who buys and owns their PV system can claim and deduct 30% of their solar installation costs from their federal taxes (tax liability) this year. For example, if you install a PV system that costs $20,000, and you owe $7,000 in taxes, you can reduce your tax liability from $7,000 to $1,000 by applying your $6,000 ($20,000 x .26) solar installation tax credit. If the value of your tax credit exceeds your tax liability, you can apply the unused credit to the following year’s taxes. Using the same example above, if your tax liability was $4,000 instead of $7,000, you can roll over the unused $2,000 ($6,000 – $4,000) to next year’s taxes.  This extension will remain until 2032. In 2033, the tax credit is scheduled to decrease to 26%, and to 22% in 2034. Note: You can only roll over any unused credit once, and the ITC is in addition to all state and local solar rebates and incentives you receive.  Here’s an in-depth guide about the ITC for homeowners from the Department of Energy. California net metering Net metering (also called net energy metering or NEM) allows utility customers to get credit for the extra energy they produce and give to the utility. NEM has become the dominant approach in the U.S. for compensating solar customers for the energy they contribute to the grid. NEM is mandatory in California and it increases the value of rooftop solar. New participating PV systems must be sized to meet customers’ demand — not higher — and switch to a time-of-use electricity rate. If you choose to participate in NEM, you will receive a bill credit for the excess solar energy your PV system produced and exported to the electric grid. How much credit you’ll receive (and save on your monthly energy bill) will depend on when you installed solar. NEM 1.0  NEM 1.0 was the original policy that allowed solar customers in the state of California to receive credit for the surplus electricity their solar systems produced. However, as solar adoption grew exponentially, there were concerns about the sustainability of this model. Thus NEM 2.0 was created.  NEM 2.0 NEM 2.0 introduced several changes to the program. These changes included an interconnection fee for new solar customers, non-bypassable charges, and adjustments to how credits were calculated. But we’re not done yet.  NEM 3.0 NEM 3.0 is the most recent update to California’s net metering policy, and went into effect in April 2023. Also referred to as the Net Billing Tariff, NEM 3.0 adjusts solar export rates to be closer to wholesale rates, which are what utilities pay for electricity. This in turn, extends payback periods for solar customers, and lowers cost savings. Batteries for self-consumption are more attractive and cost effective under NEM 3.0. We’ve written extensively about NEM and what its changes will mean for solar savings; learn more about California’s latest NEM policy here: NEM 3.0. Under NEM 3, storage — especially storage for self-consumption — is more important than ever. Click through the Tourial below to learn more about hour hourly storage visualizations can help you attach storage to more sales. California solar programs for affordable housing Self-Generation Incentive Program This California solar program offers rebates of $250/kilowatt-hour for installing solar battery technology in your home. Those eligible for the SGIP rebate include residential customers of Pacific Gas and Electric Company, Southern California Edison, Southern California Gas Company, and San Diego Gas and Electric. Along with this program are two additional categories of higher rebates: Equity and Equity Resilence. Those eligible for Equity receive a rebate of $850/kilowatt-hour and $1,000/kilowatt-hour for Equity Resilience. Read more on eligibility and requirements for these solar programs. Single-Family Affordable Solar Housing (SASH) California’s Single-Family Affordable Solar Housing (SASH) program was designed to provide incentives to qualifying low-income single family homeowners to help offset the upfront costs of installing solar. SASH is overseen by the CPUC and administered by GRID Alternatives. As of this writing, SASH is closed. You can go to this GRID Alternatives SASH information page to learn more. Multifamily Affordable Solar Housing (MASH) The state’s Multifamily Affordable Solar Housing (MASH) program, which is now closed to new applicants but may have a waitlist, provides incentive rates of $1.10 to $1.80/Watt for qualifying multifamily affordable housing. It is administered by PG&E, SCE, and the Center for Sustainable Energy in SDG&E territory. Local solar incentives and rebates Many city-level rebate programs have expired, but it’s worth taking a look in your area. The City of San Francisco’s GoSolarSF program offers a one-time cash incentive to residential, commercial, and nonprofits to encourage solar installations. This program is now only open for the low-income DAC-SASH incentive category and will be expiring soon. Learn more about the different incentive rates and eligibility here. Learn More There are a lot of solar power incentives in 2023 — and beyond — to consider. Click the following links to learn more about selling storage under NEM 3 in California (hint: it involves self-consumption), and whether the ITC is applicable for solar battery usage. And, as always, be sure to relay these — and any other — incentives to potential customers. They can be the difference between a new installation and a “No thanks”.  ### Solar CEOs identify spooky challenges and potential treats for 2024 — the challenges The solar industry in the US has gone through its fair share of explosive growth and challenging setbacks in an ever-changing and highly-variable landscape — also known as, say it with us, the “solarcoaster”. The “solarcoaster” can be unpredictable, constantly evolving, and challenging to navigate, and every bit of information at our disposal helps. With that in mind, as we approach the final months of 2023, it’s time to look ahead to 2024.  During Empower 2023, Carina Brockl, Acting CRO of Aurora Solar, spoke with three solar leaders from a variety of backgrounds about the opportunities and challenges they face in the solar industry today, and their thoughts on the future: Steph Speirs, Co-founder & CEO of Solstice Power TechnologiesAbby Buchmiller, Co-founder of RDCL ServicesRebekah Carpenter, Founder of Fingerlakes Renewables Solar Energy Click here to watch the entire session on demand. We aren’t above taking advantage of an easy theme when we see one, so with Halloween approaching, in this series we’ll look at some of the “tricks” and some of the “treats” those of us in the solar industry should watch out for in the coming year. We’ll start with the “tricks” (i.e. challenges), and have the “treats” (opportunities) on Halloween. Solar industry trends driving impact Before we get started, let’s take a look at some of the trends affecting the solar industry right now. Declining costs Despite recent inflation, the overall trend in solar has always been declining prices. According to a report by SEIA, “the cost to install solar has dropped by more than 40% over the last decade.” How will we continue to make sure this trend continues? Energy storage  As solar adoption grows — and policies change — so does the demand for energy storage solutions. Battery technology is advancing to fit this specific need. High interest rates With continued high interest rates, solar installers have gotten creative in selling systems and continuing to deliver ROI.  Supply chain issues  Due to a number of factors, the supply chain for solar has had its fair share of disruption. However, as we’ll discuss later, domestic manufacturers are stepping in. Policy and regulations Policies and regulations are continuously evolving. These include but aren’t limited to updated net metering rules, grid interconnection standards, and incentives changes. The solar challenges (“tricks”) These challenges, sometimes nuanced and interwoven with broader economic factors, can influence the how the solar industry grows. Let’s see what the solar leaders identified as some of the challenges they’re seeing. (Responses have been lightly edited for space and clarity.) Although the solar industry is still expanding healthily, Steph Speirs, Co-founder & CEO of Solstice Power Technologies, recounted how recent economic challenges have slowed project rollouts.  “There was a downturn in 2022, with less solar and wind deployed. And a lot of that was because of things that were predicted…  like supply chain issues going back through COVID.  But a lot of it also is just that capital is more expensive and so fewer projects are penciling out. EPC and installation costs are more expensive and interconnection and permitting is taking longer. And so, yeah, of course, it's a tough economic environment.”  This may change, as Speirs believes that the current temporary economic setback could be overcome within the next year.  “2023 is not that much better than 2022, but 2024 could be explosive… We’re about to enter this era that’s going to be really exciting because in the last two months, a lot of guidance has come out… Low-income tax credit guidance came out in August and there's Greenhouse Gas Reduction Fund money where applications are finally opening — that's $27 billion that will go to local communities to build solar. There's transferability; there's direct paid guidance coming out. All of these are really exciting things that have a lot of opportunities attached to them, even if the economic environment could be a hindrance for the foreseeable future.”  Abby Buchmiller, Co-founder of RDCL Services, shared her insights on the current economic environment's sweeping effects on the solar industry.  “We are seeing a lot of EPCs struggling, but I don't believe that the challenges are entirely new. I think it's been a very difficult time for the past few years for EPCs. And I think that we're seeing a lot of the fallout from that, we're seeing a lot of it come to a head… On the installation side of the industry, there are thin margins that a lot of companies are working within — there's a very limited amount of room for error. We have industry-wide tightening from financiers, which is a necessary change, but it's creating even more restrictions, and access to capital is becoming more and more difficult.” Buchmiller also explained many of the constantly shifting factors that influence the already complex aspects of running a solar business.  “NEM 3.0 was a massive example of what keeps companies on their toes at all times. Shifting pipelines, lack of consistency from sales, but also where those sales are coming in and how to appropriately manage those projects based on where they're coming in… There's just so much complexity, and so running a company with that many points of complexity to try to manage leads you to the space where — when you have something like an economic downturn — it can really be the final straw.” While the US has made significant strides to create a national pipeline of solar resources, Rebekah Carpenter, Founder of Finger Lakes Renewable Energy, addressed potential growing pains from an installer’s and customer’s perspective.  “Mostly material flow is what I'm thinking about. I'm really excited about the number of domestic manufacturers that are stepping in, especially in inverters, but I'm concerned about them getting products out… Some customers are waiting for the domestic product to be produced, and some are very concerned that new production facilities will mean new levels of initial failure rates. Because that's something that we see when there's a new product or a new manufacturing facility — we tend to get higher failure rates for a while.” That's all for the tricks! Check back on Halloween to see what treats 2024 might have in store for the solar industry. Want to see some of the homeowner and installer trends we saw in 2023? Download our free 2023 Solar Industry Snapshot. Click above to download the entire 2023 Solar Industry Snapshot for free. ### How to start a solar business — the basics Note: This blog was originally published in February 2021. It was updated October 25, 2023 to reflect recent information. If you have any questions, please contact us. The solar industry is growing, and its sun is still just starting to rise. Solar power continues to lead the way when it comes to renewable energy — and arguably energy in general. According to SEIA data, in the first half of 2023, 45% of all new electric capacity added to the US grid was from solar.  Likewise, solar installation professionals is among the fastest growing professions in the United States. The trade is projected to enjoy a 22 percent growth rate between 2022-2032, and the 2022 median income was $45,230 per year.  This data represents a promising prospect for contractors looking to cut their teeth in this exciting business. If you’re wondering what it takes to start your own solar business, this post is for you. How to start a solar business — beginnings Of course, there’s much more to solar installation than slapping up panels: there’s general contracting, roofing, metal fabrication, sales, repair and maintenance, consultation, landscape design, and so much more. The best place to start a new solar business is between the cracks of large, over-saturated markets. Find out what solar professionals are doing in your area by checking in with local SEIA chapters and chambers of commerce, and conducting internet searches. It’s highly likely that even if your market is saturated with traditional solar businesses, you can find a niche that only you can fill. Solar incentives Becoming an expert means more than knowing your product. It requires having your finger on the pulse of the various rebates and incentives available, an important differentiator for companies looking to get ahead of the pack. Businesses that do the research to save their customers time and money have a leg up when it comes to getting the contracts. Beyond incentives, offering different financing options, including third-party ownership (TPO), can help increase sales. Get our free TPO Cheat Sheet to learn more. Solar sales Starting a solar business doesn’t necessarily mean you’ll need a crew up on roofs installing panels. If sales is your thing, there are many businesses that focus on just that.  These companies do all the work of selling solar systems: getting leads, qualifying them, doing in-home or virtual consultations, and getting the customer to sign. Once a customer has signed on, these organizations then work with a contractor that takes care of the rest of the installation process. With the recent improvements in solar sales software, it’s easier than ever to stand out from the crowd. Click through this Tourial to see how Aurora’s reimagined Sales Mode can help you sell with confidence and close more sales. document.getElementById('tourial-sales-mode').getElementsByTagName('iframe')[0].src = `https://tours.aurorasolar.com/sales-mode?${window.location.search.slice(1)}&isEmbedded=true&viewportHeader=true` Solar installers Solar installers are usually the most saturated business in the market. If you’re wondering how to start a solar installation business, you might want to start at the basics: Roofing. If you’re a roofer, solar installation could be a great option to add to your business. The solar and roofing industries are starting to converge, and for good reason. Solar panels and roofs have about the same lifespan (approximately 25 years), and savvy roofers are realizing the one-two punch of installing a new roof and solar system simultaneously. Whether you’re a roofing contractor or solar installer, there’s a lot of overlap between the two, and plenty of untapped market opportunities for incorporating roofing and solar into your business plan. What is a PV system? Before we move on, let’s take a quick look at how a PV system works to get a better idea of how you can make money building one. How does a solar photovoltaic system work? Solar panels convert the energy of the sun into electricity through a process called the photovoltaic effect. When a photon hits a photovoltaic (PV) device, its energy knocks electrons in the material. These electrons begin to flow, producing an electric current. At a high level, the process of how solar panels works involves three primary steps: Solar cells within solar panels absorb light from the sun, which causes electric current to begin flowing. An inverter converts DC electricity to AC electricity. This electricity is used to supply current energy demands in the customer’s building and excess electricity beyond what the customer can use is exported to the grid (or used to charge a battery). The photovoltaic process occurs at the solar cell level. Solar panels are composed of multiple cells, and PV systems are a series of solar panels wired together (called “stringing”) to provide appropriate voltage to the system’s inverter. After a PV system is installed, there’s nothing standing between a customer and cheap, green energy.   Solar company licensing & certifications Solar licensing Not every state requires solar licensing, but some do. Keep in mind that if you’re planning on working outside of your home state, you’ll need licenses for any state you want to work in. For states requiring licenses, you’ll often need a plumbing or electrician license, or both. Some states require a specialized solar contractor license. Check here to check on what type of licensing you may need in your state, region, or municipality. Solar certifications Even if you don’t need a license to operate in your area, earning a solar certification is a great idea. Solar certifications are an important way to promote customer confidence, putting you ahead of the average uncertified business.  Certification can also lead to more income, with certified solar professionals earning an average of $11,000 more annually. Getting certified may also allow you to operate in more than one municipality or state, increasing your competitiveness. The North American Board of Certified Energy Practitioners (NABCEP) voluntary certifications provide national standards for PV professionals, certifying they have the skills, experience, and competency to set themselves apart. NABCEP’s certifications include: PV Installation Professional (PVIP) PV Design Specialist (PVDS) PV Technical Sales Professional (PVTS) PV Installer Specialist (PVIS) PV Commissioning & Maintenance Specialist (PVCMS) PV System Inspector (PVSI) Set up your solar business You’ve nailed down your niche, identified solar certifications and licenses, and are ready to make the jump. Let’s take a dive into how to start a solar business from the ground up, starting with the legal stuff first. Establish an LLC An LLC, or limited liability company, is a business structure set up by state statute. LLCs provide several benefits, including liability protection, flexible structure, and tax advantages. They provide the same limited liability as a corporation but are much cheaper and easier to form and operate. In most states, getting an LLC entails choosing a name, selecting members (which can include just you), creating articles of organization and operating agreements, and getting an EIN (employer identification number). You’ll then need to obtain any seller’s permits and licensing required by your state. Check your state’s LLC requirements for more information. Business insurance The right insurance coverage is essential to mitigate potential risks and liabilities. Every contracting business must meet general insurance requirements, but there are a few considerations specific to the solar industry. Here’s your solar business insurance checklist: General liability insurance Workers’ compensation Automobile liability insurance Excess/umbrella liability insurance Most contractor general liability insurances provide a minimum of $500,000 coverage. Keep track of your inventory, equipment, and properties, and get the right insurance that would cover the worst-case scenario. Do yourself a favor and get the right insurance before you even land your first contract. Click here for an in-depth look into the right solar business insurance. Establishing a solar team 1. How to find salespeople Salespeople are the backbone of most solar businesses. Regardless of your niche, chances are that someone on your team is making at least part of their paycheck knocking on doors and making phone calls. When seeking out a salesperson, here are three elements to consider when vetting your candidate pool: Knowledge about your niche Passion and persistence Familiarity with questions and concerns that customers have about solar It’s crucial that you foster a culture of customer satisfaction in all of your employees, but salespeople in particular. They are usually the folks leading your conversion process and are often the face of your business. If an in-house sales team isn’t feasible, there are several options available for sales outsourcing. Many businesses exist that specialize in outsourcing solar sales for installers, consultants, and retailers. 2. Ramping up a team Start out with nothing but the best right from the gate. Find team members that are NABCEP certified (see above). If your team isn’t certified, give them the time and resources to do so. Make sure your salespeople, installers, marketing team, and others know the ins and outs of your product. Give everybody on your team the time and resources to learn about your product and services. Your dream team doesn’t have to be all employees. Network with other solar experts outside of your niche. They will become invaluable sources of help and referrals if you keep at it. 3. Setting up compensation structures Solar salespeople are usually paid by commission. Commission payouts are usually paid as a percentage of the total contract price or as a cut of the base contract price.  Commissions have various pros and cons. On one hand, they can motivate your teams to work hard. On the other hand, commissions may encourage your salespeople to sell more than a customer needs, take on cost-prohibitive projects, and inflate project costs above market rates. Read more on common commission structures in the solar sales industry today. Pro tips: Avoid these solar sales barriers There are many barriers when it comes to getting a solar business off the ground. Here are three common ones that can be easily solved with the right solar software. Incorrect or inefficient designs It’s all too easy to under- or over-engineer a solar system. Incorrect or inefficient designs are a surefire way to sink your business. Aurora Solar’s sophisticated solar design software uses technology like LIDAR-based shade analysis and AI-assisted 3D modeling to give you a pixel perfect design almost instantly — without a truck roll. Click the image to learn more about Design Mode. Electric quotes from customers Customers are often wary of providing their electricity bills. Just a few days can mean the difference between landing a new customer and losing them, so make this process as seamless as possible for your customers. Most electric customers receive a bill in the mail every month. If they don’t, they can likely access it online from their utility. Either way, Aurora can provide a forecast of year-round energy usage from just one month’s bill — taking into account factors like weather, HVAC, and more. Take this opportunity to remind your customer that making efficiency upgrades in the home could drastically improve energy efficiency.  And don’t forget to study up on the net metering rules for your state. Being able to sell excess power back to the grid can be a huge selling point for solar installations. Permitting problems Flawed designs can lead you straight back to the drawing board. If a solar design isn’t compliant with state or local regulations, your plans will be rejected. Collecting and reporting permit-related project data constitutes up to 8% of soft costs associated with solar, owed largely to mistakes and regulatory bottlenecks.  Aurora's Plan Sets Service expedites your post-sales permitting process. It's also a great tool for new businesses looking to scale without the growing pains and backlogs of permitting — Aurora can handle any growing volume of plan sets you need. See how it works in the Tourial below. document.getElementById('tourial-8b8f67aa-9e9c-47db-a936-a3a2f6eaf8eb').getElementsByTagName('iframe')[0].src = `https://tours.aurorasolar.com/8b8f67aa-9e9c-47db-a936-a3a2f6eaf8eb?${window.location.search.slice(1)}&isEmbedded=true` Conclusion Starting a solar business takes research, investment, time, and leadership. But, it can be worth the effort, providing a great career in a growing and fulfilling industry.  When you do start your business, make sure you have a software solution that sets you up for success. Schedule a free demo today to see how Aurora can help you get started in the solar industry. ### Solar sales objections: Your top questions answered The single biggest complaint we hear every year after the Solar Sales Objections Throwdown is: Why can’t it be longer? We agree, and at some point we’d love to have a full-day event focused on the most challenging solar objections and how to turn them around. Until then, we gathered some of your best questions from the Solar Sales Objections Throwdown at Empower 2023 — ones that the panelists didn’t get to answer in the session — and asked our experts to answer them offline.   So, without further ado, here are the three most popular audience questions that our experts didn’t get to, and answers from Ashleigh Tatarcyk, Owner of Urban Sol Energy, and “Solar Joe” Mousakheel, CRO of The Solar Academy. (Responses have been lightly edited for space and clarity.) What is your best rebuttal to, "I have interest, but I am just so busy right now"? Solar Joe This is a common objection that can be really tough, so we actually have a “program” that helps us address it. I just tell them:  “Perfect, that’s exactly why I’m here. We have this new program called the ‘busy homeowner’ program. Where we just ask a couple of questions and we do all the work in the background. When’s a good time to come back and show you the roof design? I am busy for the rest of the day; is tomorrow or Wednesday better for you?”  Ashleigh I also explain how much of the work we’ll be taking off their hands, and try to set our next meeting. I’d say something like:  “Great, I'm glad you have interest in solar, and it's smart of you to take advantage of xyz incentive right now. So we have some great programs for folks that have a lot on your plate, where we make this super simple and handle the whole process for you from start to finish. You won't have to worry about getting permits, or hiring a crew to install your panels.  “We will do all of that for you, you only need to spend about 15-20 minutes with one of our advisors to get into the best program for your needs, complete some agreements so we can get started, then we'll take it from there. I'm pretty busy today as well, let’s put you on my calendar so you don't have to chase me, I have time tomorrow at 12 or Thursday at 4. Which works better for you?” How do you handle the “high cost and low ROI” objection in areas with no net metering and low electricity rates? Solar Joe I wouldn’t try to turn this objection around. In this situation, I would go back to using empathy. Be empathetic to the homeowner’s situation and figure out another way to help them pay their electricity, or other, bills. For example, offering a $1,000 referral reward for them to set you up with other potential customers can give them a positive experience, and potentially get you some new business.  Ashleigh Let's answer this question as though there was net metering and then let's answer it as though there is no net metering. Both scenarios are possible: No net metering: If a client doesn't have a net metering policy available in their area, it’s our duty as solar advisors to inform the client that solar wouldn't be a good fit for them. And, until batteries can store more than 10 kWh in a cycle, batteries also aren't the best option in this case — unless a customer is more of the "off grid" variety and are just wanting to power their lights, fridge, and cell phone a majority of the time.  Have respect for the customer and walk away from this sale. You build more trust this way; now get them into your referral program and make them a solar ambassador.  Net metering/Low ROI: Let's be honest, this is a hard objection to overcome even for a seasoned sales person, most people don’t want to spend more money now to hedge against future inflation.  The thing I would pitch on is if it's only $10-$20 more a month for solar. Then, I would say something like: "You're getting a whole solar system, 30 panels and inverters for ONLY $10 more a month. It’s $10 more now, but you're smart for knowing your electric rates in the next 5 years are going to be more and you'll be prepared. If 10 years ago, with the insight you have now on the price of gas, when gas was $1.50 a gallon, would you have locked it in at $1.70 and be happy that's what you're paying now?”  How do you handle the, “I’m sure battery pricing will go down later. I just want to wait until the price is lower” objection?  Solar Joe I would go with something like, “Yes, I totally get it. Pricing for batteries could come down but then again could go up with this crazy economy, right? But one thing we know for sure is that smart batteries are making you money right now. Do you want to accept that money or would you like to wait longer?” Ashleigh I may be the worst person to ask this. In my opinion — unless a battery is necessary for backup where the homeowner absolutely can't lose power, or in places like California with NEM 3, where there can be demonstrated ROI from things like battery self-consumption — I don't think batteries are generally worth it.  Actually, I think one of the trends we’ll see in the next few years is the growth of the battery industry. I’d recommend that the homeowner go solar now, to take advantage of everything it has to offer, and then retrofit a battery down the line.  The tools you need No matter the objection, in this ever changing market you need to be able to adapt quickly. You need a solar sales solution that gives you the flexibility to customize your proposal, personalize it to each homeowner, and differentiate yourself from the competition. Sales Mode combines Aurora’s best-in-class designs with interactive selling tools to give reps everything they need to build homeowner trust and close with confidence. So, for example, whether the homeowner is interested in battery backup, self-consumption, or even a mix of both — they can model for these scenarios in Sales Mode based on the homeowner's preferences and what makes sense in their market. Click through this quick Tourial to learn more. Want to learn more? Sign up for a quick, personalized demo. Ready to give it a try? Create an account. And that’s it for the 2023 Solar Objections Throwdown. If you’re interested in learning more, check out the rest of the blogs in this series: “Solar just doesn’t work for us” “Financing rates are too high” “I’ve heard that solar won’t save me money in California with NEM 3”  “I need to get another quote” To learn more about the newly reimagined Sales Mode watch our webinar. Click above to watch the webinar on demand. ### Shading losses in PV systems, and techniques to mitigate them Note: This blog was originally published in February 2022. It was updated October 17, 2023 to reflect recent changes. If you have any questions, please contact us. Welcome to the fifth installment in our six-part series on Solar PV Installer Basics 101. In the previous article, we covered how to correctly size a customer’s solar photovoltaic (PV) system based on their energy bills. This analysis offers a useful baseline. But for optimal results, it is important that your solar designs also factor in potential losses stemming from PV system shading. Mitigating this problem is the subject of today’s article. Need more information on PV system losses in general? Download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. What is solar panel shading loss? Solar photovoltaic (PV) systems generate electricity via the photovoltaic effect — whenever sunlight knocks electrons loose in the silicon materials that make up solar PV cells. As such, whenever a solar cell or panel does not receive sunlight — due to shading or nearby obstructions — the entire installation generates less overall solar power. This is known as PV system shade loss. Shading can come from a variety of sources, including: Nearby objects, such as buildings, trees, antennae, or poles “Self-shading” from other PV panel rows Horizon shading from the terrain surrounding the installation site Other factors such as panel orientation, soiling, or differential aging  How does shading affect solar panel output Intuition suggests that the power output of the panel will be reduced proportionally by the area that is shaded.  However, this is not the case.  In his book, Renewable Energy and Efficient Electric Power Systems, published in 2004, Stanford University’s Gil Masters demonstrates how shading just one out of 36 cells in a small solar module can reduce total power output by as much as 75%. That’s right. Shading just 1/36 of the cells has the potential to reduce power output by 75%. Of course, technology has progressed since then. Now, there’s more to it than that — and ways to avoid such a high loss rate. Click above to download our full guide to PV system losses. Why can minimal shading cause severe power loss? To conceptualize why shading results in such severe losses, it is helpful to use the analogy of water flowing in pipes. The flow rate of water through the pipe is constant, much like the current through a cell string is constant for a given irradiance level. Shading a solar cell is similar to introducing a clog in a water pipe. The clog restricts the flow of water through the entire pipe. Similarly, when a solar cell is shaded, the electrical current through the entire string can be reduced. This is significant because every PV cell in the cell string has to operate at the current set by the shaded cell. This limitation prevents the unshaded cells from operating at peak performance. In essence, every solar cell is like a link in a chain. The shaded cell is the “weakest link,” reducing all the remaining cells’ power availability. This explains why even partial shading can potentially have such a dramatic effect on the total power output of a solar PV system. Similar principles apply to PV modules connected together.  The current flowing through an entire string of modules, then, has the potential to be heavily reduced if even just a single module is shaded. How do we mitigate these potential losses? How to reduce shading losses As an installer, there are a number of solar design strategies you can use to reduce shading losses. These solar panel shading solutions include using different stringing arrangements, bypass diodes, and module-level power electronics (MLPEs). 1. Stringing arrangements Modules connected in series form strings, and strings can be connected in parallel to an inverter. The electrical current through all the modules of a string must be the same. By contrast, the voltage of parallel strings must be the same.  As we saw in the last section, a shaded module in a string can bring down the power output of the string significantly. However, a shaded module in one string does not reduce the power output of a parallel string. Therefore, by grouping shaded modules into separate strings, it’s possible to maximize the total overall power output of the solar array. For example, in a commercial system with parapet walls, it can be beneficial to group modules that receive shade from the parapets into strings — and keep modules that do not receive shade in separate, parallel strings. This way, the unshaded strings can maintain a higher current and power output. 2. Bypass Diodes Bypass diodes are devices within a module that allow the electrical current to “skip over” shaded regions of the solar module. By using bypass diodes, the higher current of the unshaded cell strings can flow around the shaded cell string. However, this comes at the expense of losing the solar output of the PV cells that are skipped over. In practice, every panel has 1 or 3 bypass diodes which act as a diversion around the clog, but that means you lose all production from that panel, even if it's mostly unshaded. 3. Module level power electronics (MLPEs) MLPEs are devices that are attached to individual modules to increase performance under shaded conditions (though there are other benefits, such as mismatch mitigation and module-level monitoring).  This is done by performing maximum power point tracking at the module level. MLPEs include DC optimizers and microinverters. DC optimizers A DC optimizer adjusts its output voltage and current to maintain maximum power without compromising the performance of other solar modules. For instance, when a shaded module produces electricity with a lower electrical current, the DC optimizer will boost the current at its output to match the current flowing through the unshaded modules. To compensate, the optimizer reduces its output voltage by the same amount it boosts the current. This allows the shaded PV module to produce the same amount of electrical power without impeding the output of other solar modules. A system using DC optimizers still needs an inverter to convert direct current (DC) electricity into alternating current (AC) power for the home or business. Microinverters Instead of having a single solar inverter servicing all of the PV panels in a system, each panel can have a small microinverter attached to it to convert its output from DC to AC. Since each microinverter has an MPPT, and their outputs are connected in parallel, each panel will operate at its maximum power point — without impacting the other panels in the PV system. A simplified schematic of a PV system using microinverters (top) and a PV system using DC optimizers (bottom).  The role of shading analysis in PV system efficiency The quest for optimal efficiency goes far behind the selection of high-performing photovoltaic (PV) panels. This is where shading analysis comes into play. By determining the anticipated shading conditions throughout the day and seasons, solar installers can accurately predict how shadows from trees, terrain, and nearby structures can impact the energy output of a PV system. This analysis is typically facilitated by solar design software and on-site evaluations which in turn enable strategic panel placement and optimal system configuration. Shade loss techniques compared using Aurora Solar Using Aurora Solar’s PV design simulation engine, we compared the performance of three different photovoltaic systems under similar shading conditions.  We placed a 3.12 kW system near the edge of a roof, which has tall trees next to it, for a house in Palo Alto, CA. The results are shown below. The difference between the two MLPE outputs is attributed to the differences in their inverters’ efficiencies. System Topology    Annual Yield    Improvement with MLPEs String Inverter    2,585 kWh/year    N/A Microinverters    3,033 kWh/year    +17.3% DC Optimizers    3,035 kWh/year    +17.3% Our results show that using MLPEs under these conditions increases system output by 17.3% annually. The effective yield of a PV system using a microinverter or a DC optimizer is approximately the same, although there could be small differences (+/- 1%) in some cases due to efficiency curve variations. For the same reason that they can mitigate shade losses by decoupling module output, MLPEs can eliminate module-to-module mismatch losses. These losses are typically caused by manufacturing variations that lead to slight differences in the electrical characteristics of two solar PV modules of the same type. Since MLPEs allow the modules to operate independently of one another, these variations will not impact the PV system’s overall performance. Solar Installer Basics 101: A Series Shade Losses for PV Systems (and How to Mitigate Them) is the fifth installment in Solar PV Installer Basics 101 — a comprehensive 6-part series designed to help installers navigate the industry’s fast-evolving solar terrain. Learn more about the fundamentals of solar by subscribing to our blog. See the other articles here: Part 1: The Beginner’s Guide to Solar Energy (Updated 11/9/2022)Part 2: How a Photovoltaic System Produces Electricity (Updated 11/10/2022)Part 3: Reading Your Electricity Bill: A Beginner’s Guide (Updated 11/15/2022)Part 4: How to Size a PV System from an Electricity Bill (Updated 12/9/2022)Part 5: Shade Losses for PV Systems, and Techniques to Mitigate Them (Updated 10/16/2023)Part 6: The Basic Principles that Guide PV System Costs (Updated 12/13/2022) Click above to download our full guide to PV system losses. Have more questions? Schedule a quick, no-pressure demo to learn more. ### How to educate homeowners on battery storage under NEM 3.0 Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what's next for battery storage and VPPs, to how AI is affecting the industry, and more. Register Now There’s no two ways about it: NEM 3.0 has been confusing to homeowners, especially when it comes to solar and battery storage.  What we do know is that in the first quarter of 2023 there was a huge push for homeowners to get grandfathered into NEM 2.0 before NEM 3.0 became policy for new installations in April, 2023. As expected, residential solar installs have slowed down since then, but that absolutely doesn’t mean solar doesn’t make sense under NEM 3.0. In fact, it’s entirely the opposite. Solar is still a great investment, and now battery storage can make even more sense for many homeowners. The difference? In the past, battery storage has largely been a way for homeowners to have backup in case the power went out — which, with wildfires and other grid-reliability issues, is a good idea. Now, battery storage for self-consumption can actually significantly add to the return on investment for a solar system. This is another great selling point for battery storage, and a great way to attach more value to every solar system you sell. How? And more importantly, how do we explain this to homeowners? Click the image to learn more about battery self-consumption. Aurora recently released a new feature in Sales Mode aimed to help: storage hourly visualizations. Using it, you’ll be able to show homeowners, in detail, just how battery self-consumption works, broken down by the hour. Storage for self-consumption: A day in the life First, a brief overview of how storage self-consumption works, how it works with NEM 3 specifically, and how it works with other net metering policies.  When a homeowner has their batteries set to self-consumption mode, the system is constantly monitoring how charged the battery system is — whether it’s fully charged, at its manufacturer’s minimum charge, or somewhere in between.  Then, if the solar system is producing more energy than the home is consuming at any given time, it makes a decision based on the battery’s state of charge. If the battery is fully charged, meaning that it can't hold any more energy, then it'll sell that excess back to the grid. We can think of this like collecting rainwater in a big bucket to use in your garden. If the bucket is full of water, you can't add any more, so it needs to go somewhere. In solar's case, that excess power goes back to the grid because there's nowhere else for it to go.  But, where it gets interesting is if the battery state of charge is less than 100%, meaning that it's not fully charged. In this case, it's going to use that excess energy from the solar system to charge the battery rather than selling it back to the grid. During the day, NEM 3 export rates go as low as 0 cents per kilowatt hour (kWh) — daytime usage is generally lower, and the sun is largely shining, so there’s a lot of solar available. This makes selling it back to the grid not very cost effective, to say the least. So storing this energy for later use, say in the evening when energy can cost over $.80 per kWh (yes, you read that right) really adds up. Selling solar storage for self-consumption Battery storage obviously adds to the upfront cost of a system. This means showing a homeowner the potential return-on-investment in a clear, easy-to-understand way is critical to attaching it to a sale. This is where storage hourly visualizations can really help. Let’s take a look. In Sales Mode, this chart shows the homeowner their utility bills with solar only versus solar plus batteries, so they can make a side-by-side comparison of whether adding a battery would reduce their bills. You can click in and show them any month of the year, as well.  But, we have to remember that storage can be a big investment, so what if the homeowner remains skeptical? This is where daily and hourly usage can be a great educational tool. In Sales Mode Once you click on “Daily Usage” you can select any month of the year, and it will show how much electricity, on average, the customer is pulling from the grid with solar only versus solar plus batteries. Let’s first look at August as an example. In August, with solar only, the homeowner is still pulling 51% of their power from the grid on a daily basis, but with a battery system that goes down to 0%. (You can also see that there's a "Hide battery" toggle, so you can show how things look without battery storage.) This is quite a change, and the chart clearly shows how it happens.  We can see that at around 6 or 7am, as the sun comes up, the solar system starts producing electricity, and the homeowner is using that to power their home. Even at this point, the system is producing more electricity than the home is using. But, instead of exporting that power to the grid for a very low price, it’s being used to charge the battery for later use.  Once the battery is fully charged — between 11am and noon here — then the system starts exporting power back to the grid. We see the grid usage savings start coming into play around 5pm when the sun is low in the sky and the system stops producing electricity. Rather than buying electricity from the utility, the homeowner is instead using the power from the battery that was charged earlier in the day with solar. The homeowner keeps going on battery power until the morning of the next day, when the cycle repeats. Sales Mode also lets you click in to any time during the day to give the homeowner more detail. For example, if we click in at noon in August, we can see specifically that all 1.35 kWh of consumption is covered by solar. Then, there's a 3.83 kWh surplus of solar being generated, 3% of which is topping the battery off to 100%, and 97% of which is being exported to the grid. Of course, this is during the summer in California when the sun is shining for many hours. As we get later into the year, the sun doesn't shine for as long and it gets cloudier. So, if we go to December, we can see that the homeowner will be using electricity from the grid even with a battery. The homeowner is still able to power their home with solar and charge their battery, but will pull about 40% of the electricity needed to power the home from the grid.  This explains why the homeowner will still be paying a utility bill with solar and batteries. But, because of NEM 3.0 policies in California, it’s a lot less than solar alone — instead of exporting excess power to the grid during the day for a very low rate, the homeowner uses that power to charge their battery. Of course, homeowners may still want to reserve some battery power for backup when the power goes out. Sales Mode lets us consider that scenario, too, and show them how that would impact their utility bill. If we kick up their backup reserve to 20% we can see that it slightly increases their utility bill. That's because they’re always reserving 20% for backup — once the battery is drained to about 20%, then the house will start pulling electricity from the grid.  In closing… As solar professionals, we know that battery self-consumption can be a big win for solar customers under NEM 3. It’s also understandable that homeowners might balk at the added upfront cost of that battery storage.  Hourly consumption modeling in Sales Mode lets you explain the ins and outs of just how self consumption works and why it saves the homeowner money, in a visual, easy-to-understand way.  Want to learn more about the reimagined Sales Mode? Check out our webinar, where you'll get a demo and a run down of all the new features. Click above to watch the webinar on demand. ### Everything Empower, all at once Aurora's Empower 2023 is in the books. But don't worry, all the content is available on demand, and we'll also have some blog and other content coming out based on the sessions. This post is your one-stop shop for all Empower content and questions. As we post new content, we'll link to it here, so bookmark this page — or just keep it as one of your 1,000 open browser tabs — and check back often. Session Replays Did you miss a session you were really interested in? Or maybe you want to revisit some information? You can access all the session replays, on demand, here. Access session replays NABCEP CEU credits If you attended our NABCEP-qualifying sessions live, you earned NABCEP CEUs. More information about how to claim these credits will be sent to you via email shortly. (The usual caveats apply: Check your spam folder, etc.) Continue the discussion At Empower we discussed some of the most pressing topics in solar today. What is a virtual power plant and why does it matter for solar? Get more information on just what VPPs are and how they're changing the energy landscape. Solar Sales Objections Throwdown One of the most popular session every year is the Solar Sales Objections Throwdown, and this year was no different. Get the strategies you need to bust each one of these objections: "Solar just doesn't work for us" "Financing rates are too high" "Solar isn't worth it under NEM 3" "We need another quote" ### Solar O&M: What solar contractors need to know Note: This blog was originally published in February 2021. It was updated October 5, 2023 to reflect recent changes. If you have any questions, please contact us. Operations and maintenance, commonly called “O&M”, has grown from a simple service offered by engineering, procurement, and construction (EPC) companies for systems they built, to a dedicated market segment comprised of independent service providers and robust branches of solar contracting companies.  The maturation of the solar industry has also led to increased O&M specialization to address the more complex demands of both the market and the grid. Regardless of whether solar contractors engage directly in O&M, it is important to understand — particularly given the long lifespan of solar systems and the ongoing need to ensure they generate as much power as possible. In this article, we explore the following: What solar O&M involves  Considerations for solar contractors regarding offering O&M services Working with other companies specializing in this space and the criteria for evaluating potential solar O&M partners What is O&M? Broadly speaking, O&M is a set of activities or programs that deals with the practices, tasks, and labor that help systems run properly and efficiently.  O&M includes a variety of basic functions such as: rapid problem identification and resolution, minimizing downtime due to faults, and comprehensive reporting and transparency. What is solar operations and maintenance? As you may have guessed, solar O&M is this same set of activities, but applied specifically to solar PV installations to help optimize how they produce energy.  There are several different aspects of solar O&M:  Preventative maintenance: The routine inspection and servicing of equipment to avoid breakdowns and needless production losses  Corrective maintenance: Repairs after a breakdown occurs to minimize unplanned downtime  Condition-based maintenance: Using real-time data to predict breakdowns and prioritize activities and resources; offered by an increasing number of third-party integrators and turnkey providers Each of these approaches employs a number of services, which can include: performance monitoring and diagnostics, energy forecasting, warranty administration, and preventative maintenance like module cleaning and vegetation control.  It can also involve integration with a third party for system commissioning, supervisory control and data acquisition (SCADA) upgrades, parts replacement, and re-roofing support. Commercial O&M vs. residential O&M Commercial and residential solar systems inherently differ in scale, complexity, and user demands, necessitating distinct approaches to Operation & Maintenance (O&M).  Commercial solar O&M Commercial O&M often involves the management of expansive solar arrays, sometimes spread across multiple locations, making real-time monitoring, advanced diagnostics, and regular preventive maintenance critical. These setups often use sophisticated software and tools to ensure consistent energy production and to manage large amounts of generated data. Residential solar O&M Residential O&M is generally more straightforward, dealing with single-home setups. The focus here leans towards periodic checks, ensuring system safety, and maximizing longevity. While commercial systems may require specialized technicians trained to handle intricate and large-scale systems, residential O&M often centers around customer education, ensuring homeowners understand basic system functionalities and when professional intervention is required. What does solar O&M entail? At the heart of solar O&M are two critical pillars: maintenance and risk management. The maintenance aspect focuses on the regular upkeep and repair of system components to ensure they operate at peak efficiency, while the risk management aspect zeroes in on proactive measures to identify, mitigate, and manage potential hazards and challenges. Together, these elements work hand in hand to ensure the longevity, reliability, and efficiency of solar energy systems, setting the stage for a deeper dive into each of their specifics. The maintenance aspect Maintenance includes both scheduled and unscheduled elements. While scheduled services are outlined by equipment manufacturers’ product manuals, unscheduled maintenance involves fixing problems once they occur (fairly self-explanatory).  Scheduled maintenance lowers the frequency and cost of unscheduled work, ideally achieving a system that operates properly due to constant monitoring and clear recovery systems. The risk management aspect Risk management, another side of O&M services offered by some industry players, is the ability to identify what can go wrong and predict probability and consequences.  It enables PV owners and asset managers to effectively plan for unscheduled maintenance and mitigate issues. Risk management continues to develop as a distinct field, with a number of companies offering software and services to help ensure solar production. Creating a foundation for lower-maintenance O&M When a PV system is designed and built with the highest quality in mind, using complete software solutions, there can be fewer costs and less wasted time associated with O&M.  As an example, Aurora Solar’s Plan Sets Service not only enhances the speed and quality of post-sales processes but also provides peace of mind to design and engineering teams. It simplifies and standardizes the site data collection workflow, consolidating all the required information into a user-friendly intake form and automatically populating numerous fields within the form. It all takes place within Aurora's sales and design tool, and includes features like AHJ identification. Once you’ve gathered the necessary site details, you can directly request a solar permitting plan set package from within the platform, including engineering stamps. The Aurora team reviews the site information, ensures compliance with all AHJ requirements, and delivers a permit-ready plan set package within 24 hours. Click above to watch the full webinar. Including solar O&M in-house There are a number of factors to keep in mind when assessing whether to add solar O&M services to your contracting business or expand your current offerings. Benefits of in-house solar O&M Benefits for solar companies that offer O&M services in-house include the ability to be your customer’s key point of contact from initial design and construction to maintenance over the long-term. This may mean lower costs for asset owners and greater value from each customer (increased customer lifetime value) due to the ability to maintain a relationship with customers for the 25+ year lifespan of their systems. This allows for more payments over time, as well as more opportunities for referrals or subsequent jobs. Challenges with in-house solar O&M There are also some important challenges to consider, however: Does your company have the necessary expertise and workforce? Can your team support these additional services without compromising your current design and installation commitments? To effectively provide solar O&M services, a company needs to be able to address three areas of functionality: core systems, supporting systems, and management. Core systems Core systems include data monitoring systems and the data analysis capabilities to interpret results and identify problems. Appropriately skilled field personnel and strong engineering capabilities are also key. Supporting systems Supporting systems include protocols for efficiently running O&M operations, such as quality assurance systems, development of a comprehensive knowledge-base to assist with diagnosis of similar issues, and field tracking and measurement.  Management Management entails having proper technical knowledge as well as the ability to oversee maintenance activities, in-house and subcontractor personnel, and inventory. Your company also needs to be able to provide a comprehensive, precise assessment of the potential profitability of a system and the O&M risks and costs. This allows you to price and schedule your services in a way that is both accurate and in line with the asset owner’s risk tolerance.  Keep in mind, this process can be complex and may require robust software as well as a sophisticated approach to plant operational health, particularly if your company has a large number of smaller systems or larger commercial solar plants. Solar O&M checklist for contractors For solar O&M contractors, ensuring the seamless operation of solar installations isn't just about efficiency — it's about building trust and reputation in the industry. Here's some of the requirements for providing top-tier service to your clients: Detailed visual inspection: Conduct systematic examinations for damages such as panel cracks, discolored cells, and broken glass. A trained eye can catch issues that may be missed by the untrained observer. Panel cleaning protocols: Using specialized cleaning equipment, ensure that panels are free from debris, bird droppings, and other obstructions, optimizing their effectiveness. Advanced electrical checks: Employ diagnostic tools to detect corroded terminals, assess loose connections, and monitor any potential damage to cables or connectors. Performance monitoring systems: Use professional-grade monitoring systems to continuously track energy output, enabling rapid detection of any deviations from expected performance. Inverter health checks: Beyond just reading the display, delve into detailed inverter logs and software diagnostics to catch potential issues early. Alignment optimization: Use tools and software to ensure panels are at the ideal tilt and orientation, taking into account local solar angles and potential shading. Ventilation assessment: Ensure cooling systems are efficient, especially for inverters, to avoid overheating and potential system failures. Battery health monitoring (if applicable): For installations with energy storage, conduct detailed battery health checks, monitoring charge cycles, potential leaks, and ensuring optimal functionality. Safety protocols: Regularly test all safety devices, including ground fault protection systems and disconnect mechanisms. This not only ensures system safety but also complies with regional and national standards. Detailed documentation: Maintain meticulous records of all inspections, interventions, detected issues, and implemented solutions. This not only helps in troubleshooting but also instills confidence in your clients. The items in this checklist can help solar O&M contractors guarantee the longevity and efficiency of installations, ensuring satisfied clients and a strong industry reputation. Considerations for outsourcing solar O&M Working with an external company that specializes in solar O&M to manage O&M needs for the PV systems your company installs can have some particular advantages.  Benefits of outsourced solar O&M Offering O&M in-house may require you to dedicate resources to activities that are not the core of your company’s focus, including attempting to fulfill commitments made by a sales team years earlier.  Therefore, a major benefit of outsourcing is that it can help your solar installation company maintain its focus on core services. Outsourcing to a contractor specializing in O&M also means PV system owners have a company that is completely focused on those services and that can provide guarantees regarding system availability and response times. The types of solar projects your company works on are another consideration, as O&M needs differ between smaller residential and commercial systems and large-scale commercial and industrial plants.  Large-scale solar plants have particular needs that are sometimes most effectively managed by a dedicated O&M contractor. The paperwork can be extensive, complicated, and varied, and every site requires adequate staffing. An O&M specialist can be better equipped to manage multiple long-term contracts with layers of guarantees. Additionally, making accurate predictions to plan for future O&M requirements can be challenging. This requires strategic evaluation of complex systems to know how to predict performance issues and budget for expected costs. A dedicated operations company may be better equipped in this respect. Challenges with outsourcing O&M There are a few potential challenges with outsourcing solar O&M. For starters, depending on how you set up the relationship with an O&M provider, your company may not get to stick with the customer from beginning to end, resulting in a lower lifetime customer value.  Also, taking on a relationship with another company for O&M puts your own company’s reputation on the line. A poor partnership could result in fewer referrals, fewer subsequent jobs, and a lower client retention rate. That’s why we recommend taking a few things into consideration before starting up a partnership. What to look for in an O&M partner If you’re considering developing a relationship with an O&M partner, there are a variety of factors to evaluate in potential partners. Solar Power World writes, “Outsourcing solar O&M is not just about technology and techniques, it’s about partnering with someone having an international perspective of the best practices in plant inspection procedures, quality assessment plans and checklists for maintenance.” An effective O&M company does not simply provide preventive maintenance services. They must be able to fully monitor and analyze the performance of a system and work to ensure it is performing optimally. The company should be able to follow plant inspection procedures and execute quality assurance plans. They should provide real-time monitoring, data analysis, and reporting for expedited fault handling and optimal use of resources. This should include periodic and preventive maintenance checks with IV curve analysis and thermographic imaging. Certifications of company staff can also be a helpful indicator of competence. The North American Board of Certified Energy Practitioners (NABCEP) now offers an O&M certification, as does Solar Energy International. The team should also be fully-bonded and have clean safety records. Click above to schedule a personalized demo. How to find an O&M company For contracting companies interested in working with outside O&M partners, there is a variety of ways these relationships may be structured. An O&M provider can be a subcontractor to a solar contracting company, receive referrals from the contractor, or in some cases a third party can facilitate the relationship. The relationship between a contractor and an O&M company is sometimes administered by an asset management company. For residential systems, the contractor can have a channel partnership with the asset management company who monitors the system. The asset management company brings in a third-party subcontractor to fix issues the contractor can’t handle. For commercial projects, the asset management company partners with the O&M contractor to execute services and, on a per project basis, creates O&M contracts or works with the EPC or warranty provider to structure O&M services. Given the financial challenges inherent in solar PV O&M, such as budgeting for project performance and service needs far in advance, it’s important to look for an approach to O&M that suits the particular needs and abilities of your company, including what makes the most sense financially. For all systems, one of the most crucial factors in ensuring the successful operation of a PV system over the long term is a solar contractor’s ability to deliver excellence in solar design and installation.  Beyond that, whether you choose to manage O&M in-house, work with a contractor, or refer your customers to an O&M specialist, consider what will best allow you to ensure optimal solar production and a good experience for your customers. Click above to schedule a personalized demo. ### Sales Mode's biggest upgrade yet The solar market is changing and how you sell successfully is evolving. You need tools that work with you. Tools that make selling solar easier. Tools that give you the credibility to close with confidence. Tools that help you build your reputation as you sell. And tools that do all this whether we’re at a peak or a valley on the infamous “solarcoaster”. We originally developed Sales Mode to make the proposal process easier for solar salespeople. To give you the tools you need to educate the customer, wow them, and close the deal. As the market has evolved, your needs have evolved with it.  You asked, and we listened. We’ve reimagined Sales Mode. The new Sales Mode is now easier to learn, easier to use, more customizable, and even faster. Combining Aurora's best-in-class designs with interactive selling tools gives reps everything they need to build homeowner trust. To learn more about customizations in the new Sales Mode click the image to register for our webinar. Revolutionize solar sales with flexibility and speed Solar isn't a one-size-fits-all solution, so sales reps need to be able to adapt quickly based on their unique situation — whether it’s factoring in storage, or taking new policies and incentives into account. So we designed Sales Mode specifically to help solar salespeople be more flexible, present better proposals, build credibility with customers faster, and close with more confidence. All this together means more solar gets installed, and more money goes in your pocket.  Want to learn more? Watch our webinar on demand to get a peek at what’s new. But here are a few things we’re particularly excited about. Click above to watch our Sales Mode webinar on demand. Compelling, easy-to-create proposals: AI-powered designs and custom proposal templates get sales teams up and running in just a few clicks. Advanced storage modeling: Add battery storage to every proposal with detailed calculations and engaging visuals to educate homeowners on why storage makes sense for them. Three words — drag and drop: Easily add custom pages, images, videos, and more with Sales Mode's drag-and-drop editor to create a unique proposal that helps you stand out from the rest.  Scale with ease: Deliver a seamless, integrated sales experience across your network, with automations and dealer management tools to ensure accuracy and consistency at scale — all while maintaining the controls you and your teams need. To learn more about what exactly is in the newly reimagined Sales Mode, watch the webinar. (If you can’t make it, register and you can watch on-demand whenever you want.) If you have any additional questions, or questions specific to your business, please reach out and schedule a quick, personalized demo. ### Solar sales objections: "We need another quote" In residential solar sales, it doesn’t take long to learn that homeowners are always prepared with a few objections that can prevent a deal from closing on the spot.  Perhaps the most common objection solar salespeople hear? "We need to get another quote." This objection is so common that we featured it in both of our Solar Sales Objections Throwdowns at Empower. In this blog, we combined the responses from each session to give a full view of how solar sales pros handle this ubiquitous objection. Click above to watch the Solar Sales Objections Throwdown, and all the other sessions at Empower 2023, on demand. As a quick reminder, our sales pros for Empower 2023 were: Kenny Parry, Founder and CEO of Parry CapitalJader Leao, General Manager of Vivint Solar“Solar” Joe Mousakheel, Owner of The Solar AcademyAshleigh Tatarcyk, Owner of Urban Sol Energy  You'll notice the advice of a couple other solar pros from previous panels, as well. Now, without further ado, let’s look at a few ways that solar sales professionals can turn that "We need another quote" objection around. The objection: We need another quote  “This all sounds great, but I would be doing myself a disservice if I didn't get another quote, so I think we’ll hold off for now.” As perhaps the most common (and a completely valid) objection, solar sales reps can essentially choose one of two ways to respond when a customer expresses the need to gather more information before signing a contract.  Here, a salesperson can either:  Accept that the customer is not interested in signing a contract during the present meetingContinue the conversation to better facilitate a sale According to our solar sales experts, here are the most important things to consider when a customer wants to seek additional information before purchasing a solar energy system.  Respond with empathy As many sales reps can surely relate, our panelists from the Solar Objections Throwdown events frequently mention the value of empathy in working with a customer to find the best possible solution  By putting yourself in the shoes of the homeowner, it’s easier to understand how they may feel when speaking with a salesperson. With honest, empathetic communication, company reps can more easily address customer objections, build trust, and earn more sales and referrals.  As James Ramos, Founder of Solar YOUniversity explained, he leads with empathy as the first step in handling any solar objection: “How I handle all of my objections is always going to be the three F’s — feel, felt, and found: empathy first.” Knowing that many customers will request additional quotes, the three F’s can be deployed to: Empathize with how the customer feels Inform them that past customers have felt the same wayExplain that others have found that their company was the best choice  James then moves the conversation forward by identifying the next steps in the sales process:    “What I always ask the homeowner is basically, how much time do you need? They’re going to say, ‘give me like seven days,’ and I’m like, ‘How about if I give you four weeks?’ Lily Valdez, Co-Founder of Women United by Solar would also introduce a timeline to relieve the pressure a solar customer may feel in a sales scenario:   “What we can do is get you qualified now, this isn’t going to get on your roof right away, as I told you before; it’s going to be a 6-to-8-week process. And in that time I encourage you to do all of the research and come up with all of your questions so that you’re 100% sure that solar is the best investment for you and your family.”  Ashleigh Tatarcyk, Owner of Urban Sol Energy explained the role of empathy while using a question-based sales method: “I would empathize a little bit. Most homeowners want to know that you understand why they want to get a quote. So I would start off asking questions like, ‘What’s really most important to you when looking at a quote? Is it warranties, is it types of panels, is it funding?” While asking questions and empathizing with responses can help facilitate sales, Ashleigh was also quick to address the fact that some customers are simply always going to need multiple quotes from different solar companies:  “If people do need another quote, I respect and understand that. But then I would say something like, ‘Hey, I’m going to offer you my consulting services free of charge. After you’ve got all three of your quotes, we’re going to set up another time where I’ll actually go over all of your proposals for you, walk you through each one and see which one might be the best. And I’ll be upfront with you and tell you if someone else’s proposal is better.’” Click through this quick demo to see how Sales Mode can help you with any objection. Consider pivoting to a two-touch close  As Ashleigh alluded to above, any given sales call does not necessarily have to be the final meeting between you and a potential customer. After a homeowner explains that they need another quote, you need to make a decision on how to move forward.  When handling this objection, Lily explained that actively encouraging homeowners to look for new quotes may actually be helpful in landing a sale at a later date:  “I’ll say, ‘You know what? I’m glad you’re taking this very seriously and you’re going to get three bids. That’s very smart of you. You know, a lot of my customers have done that and what they’ve found is that they still come back to me, but I can definitely review all of that information with you.” “Solar Joe” Mousakheel, CRO of The Solar Academy, admitted that he used to always aim for a one-call-close, but that is no longer his main strategy. Since adjusting to a two-touch close, homeowners shopping around for other quotes is no longer a big deal: “What I’ve noticed is that this objection has stopped almost completely for me now that I go with a two-touch close. This two-touch close will almost eliminate this objection because there is no pressure and no games. You’re just being an advisor helping the homeowner, letting them know all of the options out there, and letting them decide what’s best for them.” Jake Hess, Founder of The Solar Academy, explained that pivoting to a two-touch closing strategy can help relieve sales pressure, and that empathy is a driving factor of this methodology:  “I’m with Joe on the two-touch close, I love it, take the pressure off. I only have a certain amount of energy in a day to fight certain things with homeowners. This is not something I’d like to fight, so like James, Ashleigh, and Lilly said: Empathy is going to go forever on this objection.”   Book the last appointment When using a two-touch strategy, the timing of your follow-up appointment is critical to closing the sale. Solar Joe believes there is an advantage in putting yourself last on your customer’s buying timeline, and was able to succinctly express this idea with a fun, rhyming slogan:   “If you wanna win, be the last one in.”  Although an appointment scheduled far into the future may create a greater risk of your lead going with another company prior to your meeting, having the final say also presents an opportunity to beat all existing offers. In your initial meeting, addressing the competition to get in front of this objection will help set you up for success if you establish: How many solar companies the lead has talked to so farHow many other reps they still plan to speak with What sort of offers they may be receiving After gathering this information and confirming that you’ve earned the customer’s trust, Kenny Parry with Virtual Solar Pros would address the competition and ask a simple favor to ensure he has the last appointment on his lead’s solar journey:  “All I would ask is that I can have the last chance to be the last bid at this point. So after you take a look at this, we would just ask for the last shot. Would you make me a promise to get the last bid for you and compare everything at the end?” Remember that every company is “the best”  Finally, many solar experts agree that one key thing can help differentiate your quote from the rest of the pack: Knowing that almost every solar company is going to say that they are “the best” choice for the customer.  Circling back to the importance of empathy, James explained that a clear and honest conversation about the customer’s options is going to be much better than simply talking about the quality of your products and services:  “If we see this through the customer’s eyes, we have to understand that every single company they meet with is already telling them, ‘We’re the best company. We have the best service. You’re gonna love us the most. We’ll answer your call and will still be in business, etc.’ …  “Now that that’s out of the way, let’s look at everything you’re getting — your warranties, how this is going to affect you in a negative way, all of these things. But, for me to truly do that, I need to know what these other quotes are. You get those quotes, then let me show you the things to look for, let me show you the things to ask, and then I’m going to come back at a later date when you have all of the quotes and I’ll go through those with you as well.” Ashleigh would use a very similar approach, and would even take the initiative to create a resource for the lead that compares every aspect of each solar proposal in a single, accurate, and unbiased document:   “I’m going to do what’s called a ‘bid assessment’ for you. I’m gonna compare all of your options on a spreadsheet for you and compare the difference in panels, the difference in price, the difference in warranties, and really point out what all of those differences are.”  The tools you need Whether you’re trying the one-call close, or pivoting to a two-touch approach, when a customer is interested in getting multiple quotes, you’d better be 100% sure your proposal stands out. Competitors are saying their company is the best? Highlight your company’s successful projects and customer reviews — show them that your hard-earned reputation is for real. Competitors are emphasizing their savings? Show the customer your multiple financing options, and emphasize the environmental impact, as well. Knowing you have a proposal solution that can adapt, and lets you customize each proposal to the individual customer, enables every rep to sell — and close — with confidence. Want to learn more about how the newly reimagined Sales Mode can help you close more? Watch our webinar on demand.  Click above to watch our Sales Mode webinar on demand. In closing... Although most experienced solar reps can speak confidently about the quality of their products and services ad nauseam, customer empathy is the key to success in any sales scenario.  If a homeowner says that they will need another quote, you must empathize with their urge to find more information, and also realize that every company in the area is going to claim to be the “best” option. By moving the sales process forward and respecting a customer’s decision to shop around, pivoting to a two-touch close may be the right choice for selling your solar products and services with the customer’s best interest in mind. And don’t forget, it can also help to be the last rep on your customer’s calendar and compare the quotes they receive head-to-head, apples-to-apples.  This is the fourth of our five-part Sales Objections Throwdown series. Check back each week for another objection, and how to turn it into an opportunity. Here are the rest of the objections (we’ll link them here as they’re posted): “Solar just doesn’t work for us”“Financing rates are too high”“I’ve heard that solar won’t save me money in California with NEM 3” “I need to get another quote” — this blogFrequently heard solar objections, solved! Have more questions? Want to learn more about the updates to Sales Mode? Check out our Sales Mode webinar on demand! Click above to watch the webinar on demand. ### Quantifying the value of a solar installation: some helpful metrics Table of Contents Introduction Update: The Inflation Reduction Act (IRA) The Solar Discount Rate Net Present Value (NPV) Internal Rate of Return (IRR) Calculate Dollars per Watt ($/W) Evaluating the Cost with Levelized Cost of Energy (LCOE) Payback Period and Calculating Recovering Cost of the Installation How Aurora Solar Software Can Help About Solar Finance 101 FAQs Note: This blog was originally published in February 2021. It was updated September 22, 2023 to reflect recent changes. If you have any questions, please contact us. When you’re talking with a homeowner about installing solar, of course they’re going to ask about the straight up cost of the system. However, installers know what they’re really wondering about is the value of the system compared to the other proposals they receive — and compared to the cost of doing nothing at all.  Communicating the true value of a system over its lifetime — often 20 years or more — is difficult, though. Being able to provide metrics that demonstrate what the solar installation will be worth will help potential solar customers more easily understand the value your company is offering and trust that they’re making a smart choice.  What metrics should you highlight? In this article, we compiled some of the most common metrics for quantifying a solar project’s value, how they are calculated, what purpose they serve, and how they can help you close the deal. If you’re just starting out in solar installation, stop here and go through our article PV Education 101: A Guide for Solar Installation Professionals. Inflation Reduction Act We’d be remiss if we didn’t mention a huge update affecting the value of solar installation.  The Inflation Reduction Act (IRA) was signed into law in August, 2022. It has the potential to supercharge the renewable energy sector, as it includes the most comprehensive and sweeping renewable energy investments in U.S. history, including: The Federal Investment Tax Credit (ITC) has been restored to 30% and extended for ten years — through 2032 — and it now includes direct pay for non-profit and government entities. The ITC allows homeowners who installed a new solar PV system in 2022 to recoup up to 30% of installation expenses retroactively through federal tax credits. If a homeowner wants to add storage to their existing PV system, they might still get federal tax incentives for battery storage through the ITC. There are a number of additional financial incentives for solar that can further the value of installing solar. Keep yourself updated on the latest additions and changes. Discount rate What is a discount rate? The discount rate is an important concept to understand when assessing the value of a solar installation. While the discount rate itself doesn’t express the value of a particular solar project, it is used in the calculation of many other financial metrics. The discount rate provides a way to account for the fact that future earnings are worth less than money in hand today — a concept called the “time value of money.” This is true in part due to inflation but also because the money that you have in the present could generate additional value over time if it were put in a safe investment. How do you use the discount rate to calculate savings? The basic equation for a customer's savings in year N, sometime in the future, is: We have a whole article explaining this equation in our help center, but remember:  “In the context of solar, electric bill savings in the future are worth less than savings today of the same amount. To reflect that, you need to input a rate into the 'discount rate' field. We suggest you consult your financing partner to advise you on what number to use as your discount rate, if you do not know what it is. Without including a number in this field, you may be presenting a misleading view of your client's cash flows.” What is the purpose of solar discount rate? Using a discount rate allows you to understand the real value of future earnings from an expense like a solar installation, compared to putting the money in another safe investment. Cost is just one common homeowner concern. Click above to get The Solar Sales Objections Handbook to see 4 other objections and how to turn them into opportunities. Net present value (NPV) What is net present value? Net present value (NPV) is a common metric to express the value of future income (or savings) from a solar installation. NPV is presented in dollars and is calculated by subtracting the cost of the initial investment from the sum of the total discounted future cash flows over the lifetime of the investment (i.e., the present dollar value of future cash flows, calculated using the discount rate). The beauty of solar installations is their long-term payoff. Solar panels can last for decades, generating savings year after year. However, a dollar saved ten years from now doesn’t have the same value as a dollar today, due to inflation and the potential earnings if that dollar were invested elsewhere. This is where NPV comes into play. By taking into account factors such as discount rates, inflation, and projected energy savings, NPV condenses the future value of these savings into a single, present-day amount. How do you calculate the net present value? NPV is calculated using the following equation: Where: N is the lifetime of the installation. i is a given year during the lifetime of the installation. Cash Flow is the system cost in year 0 and for years i = 1 through 25 they are the difference in pre-solar and post-solar bills. (The Investment Tax Credit is typically applied in year 0.) d is the discount rate. What is the purpose of NPV? This equation is very useful not only in valuing solar installations but also in evaluating the returns of many other investments, including real estate and business ventures. Internal rate of return (IRR) What is the internal rate of return? The internal rate of return (IRR) is similar to NPV in that it accounts for discounted future cash flows over the lifetime of the project. However, unlike NPV, the IRR is not measured in dollars. Rather, the IRR is a percent return one can expect to gain (or lose) from an investment and its future cash flows. How do you calculate the IRR? The IRR is calculated by setting the NPV of a project equal to zero and solving for the discount rate. Because this calculation is rather difficult mathematically, it is often solved by testing different discount rates until the NPV of a project is as close to zero as possible.  This is something your solar sales software should be able to help with. Check out Sales Mode's financial analysis features for more information. What is the purpose of the IRR? The IRR helps your customers to see what percentage return they might see on their PV system over time.  Click above to learn more about how the newly reimagined Sales Mode can help you sell more. Dollars per watt ($/W) What is dollars per watt? Dollars per watt ($/W) is a simple and widely used calculation to evaluate the value of a solar installation. It is essentially the cost per watt of energy produced by the PV system. How to find dollars per watt? This metric is calculated by dividing the total installation cost by the capacity of the system. For example, a 5 kW system that costs $11,000 will have a value of $2.20/W ($11,000/5000W). It's important to check if the Investment Tax Credit (discussed above, and in the previous article in this series) is taken into account when calculating the $/W value, as this could impact the estimated value significantly. While this metric may seem simple and straightforward, it is far from a perfect measure of an installation’s value. For one, it does not take into account the time value of money by discounting future cash flows. It also does not take into account the solar installation’s efficiency (what percent of available solar energy it converts to electricity) or how that efficiency will decrease over time as the installation ages — called degradation. Additionally, qualitative factors, like the level of customer service, attention to detail, or maintenance guarantees your company provides may warrant a higher price for the installation. You may want to communicate that $/watt does not reflect these factors when discussing the value your company offers.  What is the purpose of dollars per watt? Although $/W is not a comprehensive measure of a solar installation’s value, customers often find it helpful when comparing prices they receive from different installers. Levelized cost of energy (LCOE) What is levelized cost of energy? Levelized cost of energy (LCOE) is a popular metric used to assess the value of an installation. LCOE quantifies the cost of the electricity produced by your solar installation over its lifetime. LCOE, which is presented in $/kWh, is a particularly helpful metric because it allows one to directly compare the price of solar energy to what the local utility would charge. This metric is also useful to look at when comparing between financing options. How to calculate LCOE of solar? Calculating the LCOE of a solar installation is a complex process involving many factors, including: The cost of the installation minus any tax incentives The efficiency of the solar installation The degradation rate of the solar installation (the rate at which the efficiency decreases) The output of the solar installation (how much energy the installation produces) The lifetime of the installation (a typical installation has a lifetime of 25 years) What is the purpose of LCOE? Because the LCOE is calculated over such a long time span, it can fail to take into account larger economic changes that may occur over the lifetime of the system (say, dramatic changes in energy costs).  Despite this limitation, LCOE is widely used throughout the solar industry, so it is important to have an understanding of how it is calculated and what information it presents. Payback period What is the payback period? As you might guess, payback period indicates how many years it will take for the installation to recover its cost.  How do you find the solar payback period? This value is found by taking the initial investment (the system cost) and dividing it by the yearly savings it creates. For example, if a system costs $30,000 after tax incentives and saves the customer $5,000 per year on their electric bill, the payback period will be 6 years ($30,000/$5,000). What is the purpose of payback period? This is a simple metric that's useful when selling solar, as many customers want to know how quickly the large upfront investment will “pay for itself.” However, it's important to note that the payback period is another metric that does not take into account the time value of money. Because of this, the period calculated will be slightly shorter than if future cash flows were discounted. It's also important to note that payback period is most relevant for cash-financed projects. In some loan or lease setups, the customer can put no money down and start saving immediately by having a monthly payment that's lower than their typical electric bill without solar. Click the image to learn how you can demystify solar financing for homeowners. How Aurora Solar software can help Aurora’s financial analysis features calculate many financial metrics in a matter of seconds. That’s right, seconds.  The resulting information also includes the projected cash flows over the lifetime of the system. Better yet, this information is integrated directly into Sales Mode, so you can access all of the information you need to show clients the value of a solar installation. Click the image to learn more about how Sales Mode can help you explain solar savings to homeowners. Having an understanding of the different metrics used to quantify the value of a solar installation will increase your credibility as a solar professional. It will also allow you to help clients make informed decisions about whether going solar is right for them, and communicate the value your company can offer. FAQs How do you calculate price per watt? To find the price per watt for a solar panel system, take the total out-of-pocket cost of the system and divide it by the number of watts of capacity in the system, or $/W. For example, let’s say a 6 kW PV system costs $18,000. $18,000/6000 watts = $3.00/watt. How much does it cost per kWh for solar energy? There are two main ways to calculate the cost of a solar system: Price per watt ($/W), which is useful for comparing multiple solar offers Cost per kilowatt-hour (cents/kWh), which is useful for comparing the cost of solar versus grid energy (also known as Levelized cost of energy, or LCOE) Solar has enjoyed dramatic cost reductions over the years. The national average solar price per watt was $1.38/W as of the first half of 2023, and the cost per kilowatt-hour was $.06-$.08/kWh ### Solar sales objections: "Solar isn't worth it under NEM 3.0" In April of 2023, the California Public Utilities Commission (CPUC) officially transitioned its net metering policy into the Net Billing Tariff (NBT). Commonly referred to as “NEM 3.0,” the decision has been publicly criticized by many solar advocates, raising concerns about the reduced value of energy exported to the grid.   Make no mistake, solar still represents a great value for many potential customers under the new NEM 3.0 rules. It’s just a matter of education. During Empower 2023’s Solar Sales Objections Throwdown Aurora Product Marketing Manager Stephen Gerken asked our panel of solar sales pros how they would react if a prospect said, “I’ve heard that solar won’t save me money anymore with the rates in California.”  Click above to watch the entire Throwdown on demand. Our sales pros for the event were: Kenny Parry, Founder and CEO of Parry CapitalJader Leao, General Manager of Vivint Solar“Solar” Joe Mousakheel, Owner of The Solar AcademyAshleigh Tatarcyk, Owner of Urban Sol Energy  Using their advice, let’s look at a few ways that California solar sales professionals can continue to sell systems and deliver value to customers in the age of NEM 3.0. “I won’t save money under NEM 3.0 rules” Step 1: Clear up any NEM 3.0 misconceptions First, when talking to potential customers about NEM 3.0, it’s vital to make sure that they understand the policy enough to make an informed decision. Depending on what they’ve heard, you may need to clear up certain aspects of how NEM 3.0 works in order to present solar as a viable option.  Kenny Parry with Virtual Solar Pros would start by telling a skeptical homeowner, “As much as there is good information out there online, there's just as much bad information. So it's really my job to help you navigate that.”  Although every conversation will be different, knowing California’s policy front-to-back is a great way to establish your expertise and help customers understand its functions. When talking to your prospects about NEM 3.0, some of the main points you may need to address include:  The new policy directly affects customers of PG&E, SCE, and SDG&E.NEM participants must enroll in time-of-use (TOU) energy rates for grid consumption and solar exports, with large differences between on-peak and off-peak costs and value. A battery is not required under NEM 3.0 but can help maximize the benefits of solar energy. There is no new “solar tax” where PV system owners would pay more monthly than non-solar customers. To quickly get up to speed with everything net billing in California, read our NEM 3.0 frequently asked questions. Step 2: Start the solar battery conversation   NEM 3.0 presents a great opportunity to talk to potential customers about the advantages of battery storage. Solar battery storage can give homeowners energy security during local outages, while also helping optimize their solar savings under NEM 3.0 with features like battery self consumption.  As Jader Leao of Vivint explained, “[Under NEM 3.0] PG&E is no longer accepting your energy for the same amount and so the program has shifted to where now these batteries make it a good proposition.” In helping your customers understand how batteries work, the key message is that they will allow solar producers to have more control over their energy use and electricity spending. With batteries, NEM 3.0 customers can strategically export stored power to the grid when it is most valuable and/or run their home on energy their panels generated outside of energy-producing hours to avoid additional utility energy consumption.   Step 3: Calculate your customer's solar savings In the end, numbers don’t lie. So, if you can accurately calculate solar savings based on NEM 3.0 rates, you can show prospective customers precisely how a system can reduce their total energy spending. Compared to the cost of utility electricity, a solar energy system in California can still provide long-term savings with NEM 3.0.     As Ashleigh Tatarcyk, Owner of Urban Sol Energy expressed, “Although savings may be reduced by 3.0, you can still save. Solar can still be a better option than the increasing utility rates at the end of the day.”  With Aurora’s newly reimagined Sales Mode, you can design a solar energy system and calculate its NEM 3.0 savings in real time, right in front of a potential customer. After showing them their property’s solar energy potential with a fast 3D model, you can use Sales Mode to deliver an accurate projection of their savings based on automated, up-to-date local utility energy rates under NEM 3.0. Click above to learn more about how the newly reimagined Sales Mode can help your business. Step 4: Put California’s NEM 3.0 in perspective California leads the country in solar energy adoption, and consistently ranks as the number one state for solar by the Solar Energy Industries Association (SEIA). It has enough solar capacity to power over 11 million homes. So, while NEM 3.0 is certainly not ideal for solar customers and installers, solar is still a great option for California homeowners and businesses.  As Joe Mousakheel, Owner of The Solar Academy, would tell California residents worried about NEM 3.0, “When you compare it to the rest of the country, I want to make sure you realize, this is one of the best net metering deals right now…  California has the second most expensive electricity in the country and it's going higher and higher.” The tools you need NEM 3.0 has made the solar sales process in California a little more involved. With battery self-consumption entering the equation, it’s critical that your solar sales software can model it quickly, accurately, and in terms that consumers can understand. Your software also needs to be able to show savings both with and without battery storage.    Features like Sales Mode’s battery self-consumption are game changing for solar sales in California. With the click of a button (or two) sales reps can show the homeowner savings with solar, then savings with battery self-consumption. And, just as importantly, can help you explain the why to potential customers, in a customizable package. Click above to learn how you can sell more storage. Recap and resources NEM 3.0 absolutely doesn’t represent the end of solar energy savings in California. In fact — without looking back and comparing it to past policies — there are still plenty of opportunities for homeowners and businesses to save money with NEM 3.0.  It’s more accurate to say that it changes the savings proposition and even opens the door to more battery storage conversations. This means PV professionals have to be able to clear up misinformation and demonstrate the value of solar and storage to overcome objections and sell more systems.  This is the third of our five-part Sales Objections Throwdown series. Check back each week for another objection, and how to turn it into an opportunity. Here are the rest of the objections (we’ll link them here as they’re posted): “Solar just doesn’t work for us”“Financing rates are too high”“I’ve heard that solar won’t save me money in California with NEM 3” — this blog“I need to get another quote”Frequently heard solar objections, solved! Have more questions? Want to learn more about the updates to Sales Mode? Check out our Sales Mode webinar on October 5! Click above to learn more about how the newly reimagined Sales Mode can help your business. ### Solar sales objections: “Financing rates are too high” Solar represents a significant investment for most homeowners. And the high interest rates we’re seeing, and are likely to continue to see in the near future, can create a potential roadblock, making some potential customers think a PV system may be financially out of reach.  If interest rate concerns have been popping up in your lead funnel lately, you're not alone. But what can you do to calm those concerns and get the sale back on track? To help us all sell more solar in times of high financing rates, we turned to the solar pros in our Solar Sales Throwdown at Empower 2023. As with our first blog in this series — “Solar just doesn’t work for us” — we asked our sales experts for their best strategies for overcoming this common, and difficult objection. Click above to watch the Solar Sales Objections Throwdown on demand. To reintroduce our solar pros: Kenny Parry, Founder and CEO of Parry Capital Jader Leao, General Manager of Vivint Solar “Solar” Joe Mousakheel, Owner of The Solar Academy Ashleigh Tatarcyk, Owner of Urban Sol Energy  Without further ado, let’s jump in and see how these pros deal with this very common objection. "Financing rates are too high right now." Step 1: Zoom out  When a prospect says that financing rates are too high, it’s very likely that they’re not just talking about solar energy. They’ve probably had first-hand experience with spiking interest rates in other areas, whether for auto loans and credit cards, or even home mortgage financing rates — which are at their highest in decades.  There’s simply no denying the financial pressures many people feel today, so if your lead wants to talk about financing rates, then talk about financing rates. Ask them what rates they're referring to specifically and how they believe things may change in the future.  By opening the conversation to life’s other expenses beyond energy alone, you can build a rapport that will move prospects to the next step in your lead funnel. At the very worst, putting solar financing rates in perspective can spark your potential customers to pursue a full assessment later — when interest rates go down.  Step 2: Relate personal experiences  Nearly every panelist also expressed that they would relate personal experiences about how high interest rates have affected them. A little bit of empathy can go a long way, so a personal anecdote can help skeptical leads confirm that you do indeed understand the impact of high interest rates, yet still believe solar can save them money.   Ashleigh Tatarcyk, Owner of Urban Sol Energy, would say something like: “I've been seeing interest rates impacting everyone across the board. It actually has impacted me. I just bought a new Subaru and my rates were pretty high, but I felt like the need for a new car outweighed the need to keep paying for my old car… It made more sense for me to switch.”  In this example, Tatarcyk argues that the benefits of purchasing a new car will be a better long-term solution when weighed against the costs of repairing an old vehicle. This pretty keen metaphor for purchasing solar to replace utility electricity spending brings us conveniently to our next step…  Step 3: Compare solar to electricity prices   Even with high interest rates, solar is likely still a better financial option for most homeowners than the alternative: exclusively buying utility electricity. Considering the long history of utility rate increases and recently surging electricity prices in the United States, it’s important to emphasize that alternatives to solar are not immune to high or unpredictable costs. As Joe Mousakheel, Owner of The Solar Academy, put it: “It’s either go solar or stay with the utility…. Utility rates are going higher and higher and higher every year… Do you think they will ever go down?”  When drawing comparisons to utility prices, a fixed-interest-rate loan can also present a huge advantage for solar. While your leads may have no control over utility price changes or costs, a fixed-rate loan can help map out predictable energy expenses and even potentially reduce total investment costs by allowing them to schedule payments early.  It’s also important to emphasize the advantages of solar ownership in that when you pay a solar loan, you own both your system and the energy that it produces. Whereas when you pay a utility bill, that's money you will never see again. When a prospect raises financing rate concerns to Kenny Parry with Virtual Solar Pros, he explains: “When paying monthly bills to XYZ utility, nothing is going towards principal, you really don't own it.”  He then presents the homeowner with a choice: “Think of yourself ten years from now. If you look back to today, what should you have done?”  “Should you spend all that money on utility bills, throwing it out the window and have nothing — except your highest bill ever after ten years. Or would you have this money paying off your system all this time. You have a choice what you do with your money: You can keep throwing it away or start paying yourself.”  Step 4: Do the math  Finally, after putting things in perspective, actually sitting down and doing the math may be the most effective way to demonstrate the potential savings solar can deliver. While it certainly helps to have accurate, easy to use solar sales software ready at your fingertips, doing some simple math can also help quickly illustrate how high financing rates won’t necessarily prevent solar savings.  For example, let’s say that you estimate your lead’s system will cost $25,000, including the financial incentives for installing solar and the total interest to be paid on the loan. If you can demonstrate that the system will eliminate at least $25,000 in utility energy spending over its lifetime, you can then argue that the system will pay for itself, despite high interest rates.  Even if you are able to generate an accurate forecast of potential solar savings, your prospect may not trust your math straight away. If a person is concerned about financing rates, always remember that going solar is a big decision, and they are just being cautious.  The tools you need Listen, financing is complex. The easier you can make it, the more options you can provide the homeowner, the more likely they are to say, “Yes”. In the newly reimagined Sales Mode, presenting homeowners with financing options that work for them, and helping them understand the costs and savings of going solar, has never been easier. Click above to watch our Sales Mode webinar on demand. In closing… Selling solar in times of high interest rates is not impossible, you just need to put things in perspective and demonstrate how indecision now could prevent financial savings later. Even with a higher-interest loan, homeowners can still save a significant amount of money on energy expenses, and your job is to demonstrate that as clearly as possible. This is the second of our four-part Sales Objections Throwdown series. Check back each week for another objection, and how to turn it into an opportunity. Here are the rest of the objections (we’ll link them here as they’re posted): “Solar just doesn’t work for us” “Financing rates are too high” — this blog “I’ve heard that solar won’t save me money in California with NEM 3” "We need another quote" Frequently heard solar objections, solved! Want to learn more about the updates to Sales Mode? Check out our Sales Mode webinar on demand! Have more questions? Schedule a quick chat with one of our experts. Click above to watch our Sales Mode webinar on demand. Featured image by Gabriel Mihalcea. ### How to RE+: A guide to RE+ 2023 RE+ 2023 brings together tens of thousands of stakeholders from across the renewable energy industry to the Venetian Convention & Expo Center and Caesars Forum in Las Vegas, Nevada from September 11 to 14. Formerly known as SPI, ESI, and Smart Energy Week, this annual conference focuses on the latest trends, innovations, and opportunities in solar, storage, wind, electrical vehicles (EVs), and more. The Aurora team will be there, of course. Come visit us at Sands Level 2 — Booth 2955 in the Solar section. We’ll be focused on cutting-edge technologies and insights to help PV professionals stay ahead of the curve — and we even have a couple exciting product announcements up our sleeves, including a reimagined Sales Mode to deliver a faster, easier, and more customizable sales experience.  Want to learn more? Click here to meet with Aurora at RE+ 2023. Click above to connect with Aurora at RE+ 2023. In this guide, we'll look at the key events, speakers, and exhibits that we're looking forward to at RE+ 2023. Opening act: RE+ Tonight One of the most anticipated events at RE+ 2023 is the all-new RE+ Tonight taking place on Monday, September 11th from 5:00 pm - 6:30 pm. This event features host Kal Penn interviewing high-profile guests, including: Van Jones, CNN Host and President of Magic Labs Media Sandhya Ganapathy, CEO, EDP Renewables North America Annette Clayton, CEO, Schneider Electric North America Following the celebrity interviews, welcome remarks will be delivered by: Senator Jon Ossoff of Georgia Sheri Givens, CEO of the Smart Electric Power Alliance (SEPA) Abigail Ross Hopper, CEO of the Solar Energy Industries Association (SEIA) Designed as an entertaining kickoff to the four-day conference, RE+ Tonight sets the stage for the show's key topics and previews what attendees can expect throughout the week. The talk show format brings star power and compelling discussion to the opening night of the largest clean energy event in North America. Master Speaker Series One of the highlights of RE+ is the can't-miss Master Speaker Series, featuring insights from leaders across the renewable energy landscape. Attendees will gain forward-looking perspectives on key industry topics: On Tuesday at 8:30am, solar pioneer Jigar Shah of the Department of Energy joins Duke Energy's Lon Huber to explore how solar companies and utilities can collaborate on virtual power plants (VPPs). They'll discuss compensation models, system design, and the customer experience. Later on Tuesday, Kate Darling of the MIT Media Lab delves into the future of human-machine interaction as AI technologies grow increasingly advanced. She'll examine how we integrate autonomous systems into our lives and how to shape their role in business and society. The series also tackles pressing questions like humans versus AI in optimizing battery storage revenue. On Tuesday at 1pm, experts from Stem discuss leveraging human traders and AI tools to maximize wholesale market profits from storage assets. With topics spanning new utility partnerships, AI adoption, and optimizing emerging technologies like storage, the Master Speaker Series provides crucial insights attendees won't want to miss. Immersive exhibit halls (come find us) The immersive RE+ exhibit hall is a must-see, spanning two venues and over 800 exhibitors. Attendees can experience hands-on product demos and innovations across solar, storage, EVs, hydrogen, wind, and more. This interactive floor map can help you optimize your time on the show floor. Click the image to go to the interactive map. This year's record exhibitor participation required additional space at Caesars Forum to complement the sold-out Venetian Convention Center. Don't miss this exciting new exhibit area. All the industry leaders will have a presence, including Aurora. We’ll be at Booth 2955 in the Venetian Convention Center's Sands Expo Level 2 - Solar section. Stop by for demos of our leading solar sales and design software, as well as the best swag. Make sure to connect with our team to learn more about the reimagined Sales Mode. With two venues packed with 800+ exhibitors, the RE+ exhibit hall promises an engaging, interactive opportunity to experience the latest products and connect with key vendors. Make the most of your time on the show floor by connecting with Aurora. Networking in Sun City Networking is a focal point of the RE+ experience. For first timers, a New Attendee Orientation on Monday prepares you to maximize your experience. Women in Renewable Energy returns this year (on Tuesday), giving attendees a chance to celebrate the industry’s growing diversity. And the lively Block Party on Wednesday night brings festival energy. Beyond these signature events, networking happens throughout, like the opening Welcome Reception, poster sessions, and expo hall happy hours. And attendees can connect every day at RE+ Daily Roundup recaps. With dedicated networking events plus social opportunities interwoven into the entire schedule, RE+ is designed to foster both professional and personal relationships. And the backdrop of Las Vegas ensures the fun lasts well beyond the more formal sessions. Make the most of RE+ 2023 Here are some tips we’ve learned about how to get the most out of this incredible event: Plan ahead with the RE+ app: Before you even set foot in Las Vegas, make sure to download the RE+ app. It's a lifesaver for keeping track of sessions you don't want to miss and finding booths you want to visit (like ours)! Networking is key: One of the best parts of RE+ is the chance to meet people who are just as passionate about renewable energy as you are. Don't be shy; introduce yourself and make new connections that could last a lifetime. Stay informed: Keep an eye on updates and announcements. The RE+ app will send you notifications so you're always in the loop. Hydrate, hydrate, hydrate: Las Vegas' desert climate combined with the excitement (and perhaps a cocktail) can quickly lead to dehydration. Always carry a reusable water bottle and take advantage of water stations throughout the venue. It's a simple step that can make a world of difference in your RE+ experience. Follow up: Once the event is over, don't forget to follow up with the people you've met. A quick message can go a long way towards building meaningful connections and generating new business — so you make sure all the networking that happened in Vegas doesn’t stay in Vegas… We can't wait to meet you all in person. If you're at the event, come find us at Sands Level 2 — Booth 2955 in the Solar section. Hope to see you there. ### Solar sales objections: "Solar just doesn't work for us" Solar doesn’t work for everyone, it's true. However, when a prospect tells you that solar won’t work for them — but you know it will — this objection shouldn't stop your sales pitch in its tracks.  But how do you turn that, “No”, into a, “Hmmm, maybe…” and then, “Yes!”? That’s what the Solar Sales Objections Throwdown session at Empower 2023 was all about: Taking common homeowner objections every solar salesperson hears in the field, and turning them on their head. The Throwdown featured four solar sales pros offering their best strategies: Kenny Parry, Founder and CEO of Parry CapitalJader Leao, General Manager of Vivint Solar“Solar” Joe Mousakheel, Owner of The Solar AcademyAshleigh Tatarcyk, Owner of Urban Sol Energy  Without further ado, let’s jump in and see how these pros deal with this very common objection. Click above to watch all the Empower session on demand. The objection: “We’ve looked into it and solar just doesn’t work for us.” Step 1: Get to the root of the problem (or lack thereof) First and foremost, if solar “doesn’t work” for someone, it's logical to ask… Why?  By discovering exactly why the potential customer believes that solar doesn’t work for them, you can quickly assess whether the issue is a valid concern or more of a misunderstanding. As Joe Mousakheel stated, “You have to ask clarifying questions to know the root of the problem.”  Kenny Parry called this process “uncovering,” explaining: “There’s something deeper behind this objection. There's something they're not telling us. So asking good questions at this point is really important.” While there are so many opening and follow-up questions you can ask prospects, Jader Leao begins by establishing a timeline, asking, “When was the last time you sat down with somebody?” Once you begin to understand the homeowner's experience with solar, you can then hone in on the root of the problem. If your prospect isn’t providing many specifics, you may have better success asking about the exact aspects of solar that stopped them from buying in the past, like: Was it about the cost of the solar energy system?Did you run into a roofing issue — like not enough space or too much shade?Do you believe that you will not be able to save money with solar? When discussing costs, savings, and value, it’s vital to clarify the different types of solar energy contracts on the market today. Even if the homeowner has done a lot of research and “knows” everything, outlining the differences between loans, leases, and PPAs can help reopen a conversation about solar.   Step 2: Empathize and address concerns As you dig deeper into the homeowner’s solar journey, staying empathetic and addressing concerns with respect can help keep your conversation informational, rather than argumentative.  If you’re talking to someone who believes they know “everything” about solar, they have clearly done previous research and may think that any further investigation would be a waste of time. As Joe Mousakheel said, “Everything is an emotional word… In my experience, whenever anybody says, ‘Everything’, that’s never the reality. It's more about emotion… It's a smoke screen for something else that's going on.” Of course, if a person knows “everything” about solar, you can then assume that they were interested in possibly adopting the technology at some point in the past. By addressing the stopping points that ultimately ended their previous efforts, you can help a homeowner pick up where they left off and walk them through the next steps to a better outcome.    Leveraging the customer’s previous interest in solar to open up a conversation, Ashleigh Tatarcyk would address this objection empathetically, responding, “I'm glad that you've done your research. You're definitely ahead of the game here… What have you seen that is telling you it’s not for you?” Step 3: Open the floor to questions and discuss options When someone thinks that solar won’t work, and has thought that for some time, it can be difficult to convince them otherwise. Plus, even if the homeowner is willing to entertain the idea once again, they will likely have a lot of questions that need to be answered.  Having an open and honest conversation can help you gain the customer’s confidence, which can ideally lead them to reconsider solar altogether. Although it may take more than one point of contact to gain their trust, establishing yourself as a reliable source of accurate information can help make those previous feelings fade.   The tools you need After addressing your prospect’s initial concerns about costs, payback periods, possible roof damage, or whatever the root issues may be, you can move on to the proposal. Solutions like Aurora’s Sales Mode can help you clearly outline a customer’s options, including everything from site modeling to financing comparisons. Check out our webinar on October 5 to learn more. Click above to learn more about how the newly reimagined Sales Mode can help your business. By getting an accurate, personalized, updated proposal in your customer’s hands quickly — while you have them engaged in a conversation about solar — you may be able to convince them that a PV system will work for them.  In closing… If someone tells you that they know everything about solar and that it simply won't work for them, don't be afraid to start a conversation. By asking questions, addressing concerns with empathy, and delivering objection-proof solutions, you may just be able to change their mind. Get more insight on this objection be watching the whole session (and every other Empower session, too) on-demand by clicking here. Click above to watch this session, or any others, on demand. This is just the first of our four-part Sales Objections Throwdown series. Check back each week for another objection, and how to turn it into an opportunity. Here are the rest of the objections (we’ll link them here as they’re posted): “Solar just doesn’t work for us” — this blog“Financing rates are too high”“I’ve heard that solar won’t save me money in California with NEM 3”“I need to get another quote”Frequently heard solar objections, solved! Click above to learn more about how the newly reimagined Sales Mode can help your business. Featured image by Robert Linder. ### Starting a solar dealer network: Advice from the field Our recent partner management blog series laid out some of the things you need to know to build, launch, and scale a solar dealer program. Solar dealer programs 101: How to buildFoundations of a solar dealer program: How to launchSoftware tools for solar dealer programs: How to scale While this series has many actionable strategies and recommendations, as they always say, “There’s no replacement for experience.” So, to cap off this blog series, we wanted to provide just that: A real-world example of a successful dealer network.  In this webinar, Thibaut Woolace, CEO of 1 Earth Solar, discussed how the company is scaling their successful dealer program with the help of Aurora’s new Partner Management capabilities. Click above to watch the entire webinar on demand. Along with his partners at 1 Earth, Thibaut’s experience truly runs the solar gamut. He has previously founded his own sales organization, worked as a rep for other dealers, and spent time on roofs as part of an install crew. Each step of his solar journey has come with successes and challenges which heavily informed his decision to launch 1 Earth Solar and to develop a dealer network. Thibaut’s #1 tip for anyone pursuing the dealer model: focus on quality. When any new dealer joins your network, their reputation can impact your business and vice versa. So experienced, quality-oriented, customer-obsessed sales organizations are a great place to start. In the webinar, Thibaut also discusses how to:  Give your dealers those customizations they demand — and make your network stand out — while also retaining the control you needHelp your dealers close more sales by using the most accurate, flexible sales softwareUltimately get from prospect to install faster by generating accurate designs at the point of sale This just scratches the surface, though. Download the whole webinar and listen whenever you want to get more tips and tricks on how to make your dealer network a success. Click above to watch the entire webinar on demand. ### Aurora Solar Plan Sets FAQ: What you need to know August 23, 2023 UPDATE: This blog has been updated to reflect new information about our engineering stamps and battery storage options. Looking for a better way to do plan sets for your solar projects? You’re in the right place. Aurora’s new Plan Sets Service takes the time, mistakes, and pain out of the solar plan sets process. How? The Q&A below tackles some of the most common plan sets questions, and how Aurora helps solve them. These come from our webinar, Request Accurate, Permit-Ready Plan Sets from Aurora, and will get you all the basics you need to get started. Then, watch the full webinar to see a full demo, and learn: How to improve team processes with well-defined workflows How to avoid multiple complex tools with on-demand plan set requests from the app How to achieve higher approval rates with Aurora’s AHJ identification process Click above to watch the full webinar. The basics How do I get Plan Sets? Reach out to your Customer Success Manager or Account Executive. If you’re not an Aurora customer yet, email support@aurorasolar.com, reach out to us on LinkedIn, or schedule a demo to learn more. How is Plan Sets priced? Plan Sets is priced based on volume. Please contact your CSM or AE for exact pricing and volume discounts. Again, if you’re not yet an Aurora customer, email support@aurorasolar.com, reach out to us on LinkedIn, or schedule a demo. Does Aurora’s Plan Sets Service have an option to get engineering stamps? Yes! Aurora integrates structural and electrical engineering stamps into the Plan Sets Service; you can obtain the necessary endorsements directly through the platform. The plan set package is reviewed by a Professional Engineer, stamped, and ready for download. (This service is available in most of the US, except for New York City, Portland, OR, and Illinois.) Does Plan Sets support batteries? Yes, you can include batteries in your plan sets. Contact your sales rep to learn more about Storage in Plan Sets. Where is the service available? Right now Plan Sets is available in most of the US (except for New York City) and territories. Is Plan Sets available for C&I customers and projects? It's only available for residential right now. We hope to add capabilities for commercial, through HelioScope, in the future. Is Plan Sets compatible with Legacy Aurora? It’s only available in New Aurora. However, you can design in Legacy Aurora, follow your workflows in Legacy Aurora, then switch to New Aurora at the end to request your plan sets. What is the turnaround time to receive a plan set? How about revisions? The turnaround time once you’ve submitted a request is 24 hours, the same applies to revisions. In the case of plan sets with stamps the turnaround time is 48 hours. Can I see Plan Sets in action? Yes. Click through the quick step-by-step walk through below to see how to use Plan Sets. The Authority-Having Jurisdiction (AHJ) database Does Aurora take utility requirements into consideration when designing a plan set? Yes. We review AHJ and utility specifications when we’re creating the plan sets. Both the AHJ and the utility are automatically identified upon project creation. In fact, a big benefit of the Plan Sets Service is the AHJ database, where users can upload additional AHJ information for team alignment purposes. Is the AHJ database added by users or pre-populated? There’s a high-level section that will be pre-populated and maintained by Aurora, the rest of the sections will be added and maintained by the team admins and referenceable by team members. Using the Plan Sets Service Can we upload a module datasheet that we’d like to use for a plan set? Yes. That information can be submitted through the document or photo upload. Can my team use the intake form as a site survey form to store site survey information and photos? Yes. The intake form can be assigned to the site surveyor, who can use the form to enter the site information during the site visit. Can you specify the NEC code? For example, 2017 or 2020? Yes, the building codes will be identified and displayed in the AHJ database for teams to reference. Want to learn more? Watch the full webinar for a comprehensive demo to discover just how easy the plan sets service is to use. You’ll also get real-world insight from Meg McDaniel, COO of Perihelion Solar, on how Aurora’s Plan Sets Service can help streamline your permitting process by simplifying complex workflows, dealing with difficult AHJ requirements, and reducing errors and revisions. If you have more questions related to your specific business needs, or would just like more information, please reach out to us at support@aurorasolar.com, schedule a quick demo, or get in touch via LinkedIn or Twitter. Or, click the chat box at the bottom right to get more information (from a human) right now. Click above to watch the full webinar. ### What do Jigar Shah and Bernadette Del Chiaro have in common? August 17, 2023 UPDATE: Empower is over, but you can still hear what Jigar Shah and Bernadette Del Chiaro had to say. Just head to our Empower page to watch the replays of their keynotes — and all the great sessions — on demand. Jigar Shah and Bernadette Del Chiaro were the keynote speakers at Empower. That’s it. That’s the blog. OK, not quite. Let's get some background. Between an uncertain economy, new net metering regulations taking effect, and strong incentives for installing and manufacturing solar, the only thing that's certain is that the next few years may be a bumpy ride.  “With the challenging market conditions facing the solar industry today, staying agile and adaptive will be critical for success in 2023,” Chris Hopper, Aurora’s co-founder and CEO, explained. This makes Shah and Del Chiaro the perfect keynote speakers, since both are actively working to shape — and improve — the conditions for solar.  Click above to learn more about this year's Empower. In his current position, Jigar Shah heads up the Department of Energy’s Loan Programs Office — which is in charge of arranging $400 billion in loans to help bring emerging energy technologies to market. But he’s far from a career bureaucrat. Shah has walked the walk as a solar entrepreneur. In 2003, he helped found SunEdison so he knows first-hand about the ups and downs of the “solar coaster”.  “There’s no better way to learn than the world of hard knocks,” Claire Broido Johnson, Shah’s co-founder at SunEdison, noted to The New York Times. “We had a lot of ups and downs in those early days as we tried to persuade potential customers and investors that our idea wasn’t crazy.” Shah’s combination of business experience, and his current view of the market from inside the government gives him a unique perspective that he shared at Empower. If that was it, we might say dayenu, but with the hard-fought NEM 3 battle in California and more policy debates in the future, Bernadette Del Chiaro, the executive director of CALSSA (California Solar & Storage Association) has a unique perspective on the solar market. Del Chiaro has been an advocate for renewable energy since her days at Green Corps, where she worked to clean up the “Sooty Six” coal-fired power plants in Connecticut. In her current position, she fought tirelessly to make changes to NEM 3, and didn’t mince words when CPUC predictably approved the policy. As part of CALSSA’s statement on the ruling, she said (emphasis is ours): “The CPUC's final proposal is a loser for California on many levels. For the solar industry, it will result in business closures and the loss of green jobs. For middle class and working class neighborhoods where solar is growing fastest, it puts clean energy further out of reach. For our grid reliability needs, it fails to promise robust growth in battery storage. And for California's race to clean energy, it puts us behind our goals and out of step with the national pro-solar agenda. The proposal is a step backwards when we really need to be moving forward with solar and battery storage. It is a dark day in California when the utility regulators try to block out the sun.” In her keynote, Del Chiaro will take a fresh look at California’s distributed solar and storage market as it stands in the summer of 2023. It will provide a retrospective on what the industry has just been through with the various policy changes, but it will also lay out the challenges and opportunities that lie ahead for what is one of the world’s largest clean energy markets. Keynotes set the tone for any event. They have to be informative, sure, but they also have to inspire. We’re confident Jigar Shah and Bernadette Del Chiaro will do just that. Come see for yourself. Click here to watch all the Empower replays on demand. ### Software tools for solar dealer programs: How to scale To succeed in the growing solar industry, running an efficient dealer network can be an effective way to scale your business.  With outside reps selling your products or services, a successful sales network primarily involves supporting your dealers in every way you can – from helpful customer service to providing the resources they need to easily close new contracts.   Including a few of the Solar Software Must-Haves for Sales Pros, below, we will outline some of the most effective tools you can use to operate an efficient solar dealer network. Learn more important software features that can help your sales teams succeed. Intuitive software for dealer management  Now before we jump into the tools you can provide your dealers directly, let’s first consider how to best run your dealer network internally. To keep your network on track, centralized software for managing dealers may be the right solution, especially if it can be customized to fit your unique business and program model.  To start, the software needs to be able to support different settings by dealer. For example, you may negotiate different pricing for different dealers — for that, you need your project management software to house and support these different settings. Some must-have partner configurations include: Branding (logo) Pricing Equipment By using software with a dealer management solution, you can organize your sales pipeline so that you can always keep track of its structure and performance. With a well-organized dealer network, you can also assist your reps better if you are able to quickly access each member’s unique information and projects in the centralized software when they ask for your support.  When onboarding new sales reps and businesses, software with dealer management features can also help efficiently set up your new network members for success. To streamline dealer integration, an intuitive management tool can help you quickly toggle member permissions and guardrails to shared network resources.  A customer-facing sales platform If you have a great product, giving your dealers the tools to sell it can elevate your message and presence in the marketplace. In allowing your reps to create a great buying experience, a customer-facing solar sales platform can help dealers succeed by providing them with a tool designed precisely to sell your services — and close more business.  From PV design to contract generation and loan integration, both speed and accuracy are critical to close solar deals and minimize potential change orders. At the point of sale, your dealers can efficiently pique the interest of their leads with the ability to create unique solar proposals and sign new customer agreements with a few easy clicks.  An easily customizable sales tool like Sales Mode can help your network highlight their strengths. For dealers to close new contracts, the sales rep's ability to customize proposals is critical to enable the independent sales of your solar services. Besides allowing dealers to make project changes in real-time, network members may be able to run their independent businesses more effectively if your sales tool can incorporate logos, unique project features, and company information into new proposals.   Automated production and financial modeling  With a dealer network to sell your solar services, performance and financial modeling tools are essential to help reps demonstrate the value of prospective PV systems. Incorporated directly into sales proposals, tools to generate fast and accurate system projections can help your dealers close new leads and set realistic project expectations. And with the right software, your reps just have to tap a button: You can get your dealers up and running to sell solar quickly, no deep technical training required. Here are some of the things the right software will do. PV PerformancePV performance software must be able to generate an accurate estimate of daily, yearly, and lifetime kWh productions based on system size, property irradiance, and other installation factors.Energy offsetBy weighing PV performance against utility energy consumption, an energy offset tool will show customers how solar production will impact their future utility expenses.Total costsFor dealers to generate pricing estimates in real-time, a tool with instant price-per-watt estimates and the ability to bundle services, apply discounts, and incorporate available incentives is critical.Payback periodMore than anything else, an estimated payback period tool can allow dealers to answer the question that most customers will ultimately want to know about their solar energy system: When will it pay for itself? Marketing, operations, and post-sale assistance  Of course, running an efficient dealer network is about more than just staying organized and enabling your reps to create great sales meetings. For your entire business to run efficiently both pre-sale and post-sale, consider providing additional tools to effectively market your products and fulfill new contracts as quickly as possible.  On the top of the sales funnel, dealers both large and small can host high-quality lead-generating software directly on their website with tools like Lead Capture AI. By equipping your dealers with more tools at the top of the funnel, you can support them with lead generation — meaning you get more proposals and project volume to install. Tools like Lead Capture AI can bring quality leads to your network. To efficiently fulfill orders across your dealer network, there are also several tools you can incorporate within your business to accelerate services like solar plan sets and contract management. And once the dealer passes a closed deal to you, using more post-sales tools keeps projects moving through your business faster.   Review and additional resources Ultimately, any platform that improves the efficiency of your business or enable a sales rep to sell your services more easily — and close more business — can be very valuable while running your dealer network.  Whether you offer turnkey solutions from design to fulfillment or provide à la carte solar services, running an efficient dealer network is much easier when both you and your sales reps have access to high-quality software.  This is the final installment in our dealer management series. You can find the other entries here: Solar dealer programs 101: How to build Foundations of a solar dealer program: How to launch This blog — Software tools for solar dealer programs: How to scale To learn more, please visit our dedicated page for channel managers. And if you have any additional questions about dealer networks, schedule a quick demo or simply click the chat box at the bottom right and a real person will respond. ### Door-to-door solar sales: 5 steps to the one-knock close Door-to-door canvassing is a longstanding sales tool. You can imagine early Roman salespeople knocking on doors, hoping the person that answers is interested in a new olive-oil powered lamp.  Door-to-door continues to be a popular sales method for residential solar — even through the pandemic — for one simple reason: It can be very effective.  But, just because it can be effective, doesn’t mean it’s easy.  In fact, today’s direct marketing pros can expect just about one in every four door-to-door contacts to listen to their entire sales pitch. What’s more? Only two percent result in a sale. With the homeowner's waning attention on the line, every second counts when building customer confidence and attempting to sell your services before a competitor seizes the opportunity. Empowering your teams to create accurate, personalized, compelling solutions in front of prospective customers, right on their doorstep, can be the difference between getting the sale started and a polite, “No thank you.”  Learn more about how solar software can help you close more deals in the room. Here are five key ways our research shows that you can close more business with your door-to-door efforts. Quickly calculate the ideal system size While solar systems are purchased for many reasons, it’s important to remember that homeowners will generally only invest in panels if it makes financial sense.   By introducing solar as an alternative to existing utility bills, you can grab a customer’s interest with the idea of saving money while you use the consumption information they provide to quickly calculate the ideal system size.  There’s a potential problem, though: In most scenarios, homeowners only have a general idea of their electric utility expenses.  As Aurora Solar Product Marketing Manager Stephen Gerken explained: “It’s pretty safe to assume that the homeowner won't have their last year’s worth of electricity bills right at the ready, but it is likely that they’ll know what they paid last month, or have a rough estimate of what their average bill looks like.”  Thankfully, Sales Mode AI can accurately estimate average daily, monthly, and annual electricity consumption and expenses with a bare minimum of input from the customer — one month’s electricity cost — based on other homes in their area.   With just this information, you can show them how their electricity bills will increase over time, and present a personalized solar energy system to help them offset this.    Generate a site design on the spot The next step to a successful one-knock close is to create an accurate, personalized site design that shows where solar can be installed to meet production goals.   By inputting the homeowner’s street address right into their tablet, canvassers can use Sales Mode AI’s up-to-date HD satellite imagery to instantly locate a property anywhere in the country and generate an accurate, interactive site design with a few simple taps.  “In less than thirty seconds, Aurora’s AI generates a full 3D model, including all of the roof obstructions, with everything already snapped to the correct height and pitch, so you don’t need to guesstimate,” Stephen explained. This is a stark contrast to most other proposal tools, which only provide 2D designs and require you to estimate the roof pitch and shading — sometimes using a tool like a sliding scale. Aurora automatically takes that into account, so the sales rep doesn't need to worry about it and can have confidence that it’s accurate. To reduce the likelihood of change orders, Sales Mode lets solar companies do things like preloading the panel setback configurations that are enforced by local jurisdictions — eliminating a big cause of errors.    Combining speed and attention to detail, utilizing a digital, on-the-spot site design tool like Sales Mode AI enables sales reps to move the conversation forward on the spot, without having to wait for a proposal to be delivered later.  Fully showcase the solar potential  Now that the home is mapped and ready, the third step to a one-knock close is to quite literally let the sun shine on a potential solar energy system.  After accounting for additional shading from trees, neighboring structures, and other obstructions, homeowners can learn the exact amount of sunlight that every square foot of their property receives each day of the year with Sales Mode AI’s irradiance data and sun path animations. Using this information and Aurora Solar’s easy panel placement tools, sales reps can then introduce various solar options — again, right on their tablet — while walking customers through each system design in real time.   After working together to find the ideal parts and placement, reps can then project the system’s electricity generation potential over the lifespan of the installation. It’s important to note here that it’s critical that Aurora’s technology is designed to make these projections dead-on accurate. Installers using less accurate projection systems often find that production is way off of what they quoted the homeowners. This leads to a lot of customer complaints coming in 6 months to a year later along the lines of, "Hey I'm still paying way more than you said I would for electricity!" You can imagine what this does to any potential referrals.   When considering most solar panels have warranties between 20-30 years, sales reps can easily circle back and compare the customer’s expected electricity costs over the same period of time.  Using Sales Mode AI’s auto-generated local utility information, the price of solar can then be compared, apples-to-apples, against long-term grid power consumption.  Make changes to the proposal in real-time  Perhaps more than anything else, addressing customer objections and making changes to a proposal in real-time with instant personalization can help you close more solar sales.  Knowing that 80% of customers are more likely to do business with a company that can offer a personalized experience, every detail that is tailored to that specific customer will increase the likelihood of a one-knock close. And while there are an infinite number of questions that can help create value, successful solar sales reps will typically find out: If there are any HOAs or personal preferences that restrict solar panel placement Whether home electricity usage is expected to rise (i.e. new air conditioning or an electric car) If the homeowner would like to consider a battery backup as part of the system     By adapting your solar energy services in real-time, customers will be less likely to seek additional information from another provider.  “It’s important to get the homeowner involved and ask what they want. After all, this is their design, so they’re more likely to move forward if they feel involved in the process,” Stephen concludes  Once the design is completed, proposal adjustments can continue into the financing conversation — we all know that the 11th hour can be a great time to introduce discounts, rebates, and incentives that are available for qualified customers.  Create and send an accurate contract Finally, once you’ve created the best possible solar energy system for a particular customer, demonstrated its value, and discussed purchasing options, it’s time to put the power in the hands of the homeowner.  That brings us to the fifth step of a successful one-knock close: creating and sending an accurate, ready-to-sign contract.  In this crucial step, Sales Mode is built to minimize errors by pre-populating all of the customer and system data from the proposal  directly into the contract. Complete with e-signature integration, Aurora’s Contract Manager enables solar companies to instantly create error-free contracts that are ready-to-sign or print.    And while a true “one-knock close” implies a signature on-the-spot, many homeowners will need more time to consider an investment in solar. Whether they simply want to weigh their options or would like to share the information with a family member, sales reps can still close the deal after the initial meeting.  By sending documentation — including a visually compelling proposal — and staying in communication, the sales process can then continue on the homeowner’s own schedule.  If any design or contract changes are required, you can make the adjustments remotely in Sales Mode, and just send an updated proposal link to the customer.  In closing… Working with a customer on location, door-to-door solar sales reps that have the right tools and tech are already one step ahead of their competition.  By including everything necessary to generate new business, Sales Mode can help companies increase their one-knock close rates with fast, accurate, and personalized system designs, proposals, and contracts, all created directly in front of the customer. The right solar software can make the difference between a sale and a "maybe later". See the features you need to close now. To learn more about how Sales Mode can help your business, schedule a quick, personalized demo. Featured image by Dim Gunger. ### Foundations of a solar dealer program: How to launch A dealer network (also known as a partnership program or dealer program) allows “dealers" to close sales on behalf of businesses, brands, and contractors.  In the solar industry, dealers talk directly to customers, communicating with homeowners, businesses, and other organizations to help them adopt solar energy systems. Using the dealer network model, a solar installer or distributor can focus on the other important aspects of operating and growing a business, while dealers sell its products or services directly to the end customer.  Creating a dealer network program can be an effective sales model for a variety of parent companies in solar, including businesses that install PV systems, manufacture parts, assist with financing, or offer turnkey project services. It’s also an excellent way for companies that offer related services — like roofing, home security, HVAC, and so on — to get into the solar market. We got into more detail on what exactly dealer networks are, including their pros and cons, in the previous post in this series: Solar Dealer Programs 101. In this installment, we’ll outline a path you can take to succeed in the solar industry by setting up an effective dealer network. Steps to stand up your solar dealer network  Whether you’re a local installer looking for sales reps in your area or a national PV brand, there are some specific steps you can take to stand up a solar dealer network successfully. Hone your product  From design and financing, to install and after-sale care, there are many unique requirements for solar projects of any size. Whether you only offer one of these services or provide total design-to-install solutions, clearly defining your product will help sales dealers understand the value of your program.  If you offer a range of services, tiered membership levels can be an effective way to provide your dealers with more flexibility to suit the needs of their unique businesses. For example, if you’re a residential solar developer, your dealer membership levels could look something like those in the table below. Tier 1 - Basic MembershipTier 2 - Project Turnkey Tier 3 - Full SuiteInstallation ServicesAll Tier 1 ServicesAll Tier 1 and Tier 2 ServicesWarranty CoveragePV Design ServicesSales, Product, and Software TrainingPost-Installation Customer Support Engineering and PermittingPrioritized Brand OpportunitiesProject Financing Options Effectively market your services  After you have clearly defined the dealer services you offer, consider the geographic area that your business serves to create a rough sketch of your network’s structure. Whether it’s local, state-wide, or national, staying organized with a visual plan can help guide your marketing campaign and pinpoint the exact individuals and businesses to target.  Before reaching out to potential dealers, first consider how you will position your services in your promotions and conversations. While focusing on your business's own unique core competencies, potential dealers will be more likely to entertain your offer if you can show value in the efficiency, quality, and flexibility of your program.  Flexibility: Although the structure of your network may be rigid, a bit of flexibility in your products and services can go a long way towards demonstrating your ability to support dealer needs. To help sales reps create great buying experiences, any customizations that dealers can make to your products — i.e. white-labeling your PV designs with their own branding — can help build and improve sales demonstrations.  Efficiency: From lead generation to post-sale service, efficiency is important at every step of the solar sales and fulfillment cycles. So, make sure to highlight any way that joining your network makes your dealers’ lives easier — like automated solar design and accurate, credible proposals.  Quality: If you’re in the act of standing up a dealer network, that’s a good sign that you’re confident in your products and services. Make your potential dealers feel the same way by showcasing your program's highlights, such as long warranty periods, certifications, your reputation, and examples of already proven sales success.   Accurate, credible proposals — that show real savings — are a great way to get dealers to your network. Maintain clear and consistent communication From your initial meeting, aim to be available at any time to support potential dealers interested in joining your network. In addition to answering questions about your program, strive to make the application process for your dealer network as clear as possible and provide an idea of what the onboarding process will look like.  To keep things organized, efficient, and legal, having your program information in writing is important, and being able to generate fast and accurate contracts can help accelerate dealer integration. Once you’ve initiated a dealer into your network, maintaining consistent communication will be essential in retaining them and helping them succeed.  Depending on your business model, providing dealers with a dedicated contact within your company may be the most effective way to stand up new dealers with guided support. By establishing a clear path for interested participants to ask questions and receive assistance, always being there for your dealers will help you build a network based on trust and continuous improvement.  Monitor project pipelines and seek out improvements Of course, the key to any successful business is constant improvement. This is true for both the dealer network you start, and the individual dealers that join up. There are a couple key capabilities that you’ll want to make sure you have when selecting a dealer management solution.  First, we all know pipeline is key, so being able to monitor pipeline on a dealer–by-dealer basis is critical.  The same is true of project status. If you notice a dealer has a lot of projects delayed or canceled, you can offer training or assistance to nip the problem in the bud. And finally, as your dealer program matures and your relationships with individual dealers evolve, it’s also important that you can update the settings and permissions for each dealer separately, ensuring each one gets the custom service they need. Make sure each partner has the tools they need. In closing...  When considering ways to grow your business, standing up a dealer network requires some leg work, but can be very much worth it to earn new revenue with strategic sales partnerships.  While designing and launching your dealer network, offering high-quality products and services in a clearly defined program can help you establish and maintain mutually beneficial agreements with your new sales partners.  In marketing your product through the eyes of your dealers, you can launch and grow your dealer network by providing participants with everything they need to succeed in the competitive solar landscape.   This is the second post in our Solar Dealer Network Series. You can find the other entries here: Solar dealer programs 101: How to buildThis post — Foundations of a solar dealer program: How to launchSoftware tools for solar dealer programs: How to scale To learn more, please visit our dedicated page for channel managers. And if you have any additional questions about dealer networks, schedule a quick demo or simply click the chat box at the bottom right and a real person will respond. ### Solar batteries for the home 101: The basics The past two years have seen record growth in home solar installations in the US. Based on industry data, residential solar installations even grew 30% from Q1 to Q2 in 2023, despite economic uncertainty. In addition, the Solar Energy Industries Association predicts that the wide scale adoption of solar will ultimately lead to the wide scale adoption of storage. Why is this? It’s a complex question that involves energy security and independence, policies like California’s NEM 3.0, time-of-use (TOU) rates, and the increasing affordability of batteries themselves. Let’s get into these reasons and more to help you decide whether battery storage is right for you. Why homeowners are turning to battery storage In 2010, most lithium-ion batteries were relegated to devices such as laptops and mobile phones. By the end of the decade, however, lithium-ion batteries could be found powering houses and vehicles.  There are several reasons why solar power users are increasingly turning to battery storage: It allows users to store excess solar energy for when they need it. It enables homeowners to be less dependent on the grid. In some areas, policies like time-of-use rates make battery self-consumption an interesting option. The surge in lithium-ion production has driven prices down to be an attractive option for regular consumers. A PV system combined with battery storage allows users to have an alternative power source that’s environmentally friendly. Steady improvements in battery technology have led to improved capacity, efficiency, and longevity, and made batteries more economical for both small- and large-scale use. One of the most exciting opportunities that battery storage provides is more options for managing surplus electricity that the system generates but the home doesn’t use. PV systems with no battery storage rely on net metering (NEM) to offload surplus electricity back to the grid.  But, often, these NEM policies offer low payback rates during the day (when the sun is shining). Likewise, time-of-use (TOU) rates often assign a higher price for electricity during the evening — when grid use is heavy and the sun is down. With batteries for their home, solar customers can store excess energy for use later in the day, when the sun isn’t shining and TOU electricity rates potentially go up. California’s Net Billing Tariff (NEM 3.0), for example, initiates higher electricity rates during peak usage times. Battery storage allows homeowners to avoid higher rates during peak times. In fact, homeowners can even send battery power back to the grid at times when rates are highest. To learn more, check out Aurora’s dedicated NEM 3.0 resource center to help you navigate the transition, including powerful tools for selling battery storage. Click above to get the Storage Sales Cheat Sheet. What to look for when choosing a solar battery Solar batteries have contributed significantly to the growing use of solar energy. They store surplus power generated during the day for use when the sun goes down, or when it disappears behind the clouds. Also, with a battery you can use less electricity from the grid, resulting in a lower utility bill. In fact, you may not even need a large battery to see the benefits of energy storage. Even a small battery can noticeably lower your grid usage when time of use (TOU) rates are highest.  But not just any solar battery can do the job you need. Before you talk to a solar installer about  PV systems and the accompanying solar batteries, you need to learn how to choose the best solar battery for you. Here are some important things to consider: Battery capacity The capacity of a battery is the amount of energy, measured in kilowatt-hours (kWh), a particular battery can store. In other words, capacity will determine how much electricity your battery can store, and how long the charge can last. Before selecting your solar battery, start by establishing your daily energy consumption. To determine your daily energy requirements. Consider the following: Appliances you use regularly in your home How much electricity you use each day The readings on your average utility bills How much backup capacity you’re comfortable with Once you have established your daily energy consumption and how much backup works for you, you can go on to decide on what pV system size works best, and how solar + storage fits with your budget. Power Before choosing your preferred solar battery, look at its power in terms of its peak and continuous delivery performance. Power is an important factor, and goes hand-in-hand with capacity when deciding on the right system for you.  A high-capacity, low-powered battery can supply power for a few essential appliances, such as the fridge, or washing machine, for a longer time. A low-capacity but high-powered battery may power your entire home, but for a limited period of time. Talk with your solar installer about a balance between capacity and power rating — they can help you choose the right solar battery for your needs. Depth of discharge (DoD) The chemical nature of solar batteries requires some charge to keep them working efficiently and longer. Depth of discharge (DoD) refers to the amount of charge you can use from your battery before you affect its optimal performance. A higher DoD means you can use more of your solar battery capacity before you need to recharge it. For example, a 10 kWh solar battery with 80% DoD means you should never use more than 8 kWh of its stored power. Exceeding this limit may shorten its lifespan significantly. Round-trip efficiency Round-trip efficiency represents the amount of energy put in the battery that can be retrieved for practical use. The higher the round-trip efficiency, the more efficient and economical the battery is. To better understand the concept of the round-trip efficiency, consider this example: If your battery can hold up to 10kWh of power, but you can only use 8kWh of it, your battery has a round-trip efficiency of 80%. If you’re shopping for the best solar battery, get one with the highest round-trip efficiency. Warranty Manufacturers offer a wide range of warranties, depending on the brand as well as the type of battery. Lead-acid batteries usually have a shorter warranty period compared to more expensive lithium-ion, which can be covered for up to 10 years or more. Lifespan The battery’s ability to store charge diminishes with use, and eventually it doesn’t hold as much charge as it did when it was new. After years of use, depending on its quality, the battery may stop holding charge completely. In general, batteries with a longer break-in period before reaching their peak capacity performance tend to have a longer lifespan, compared to those with a high initial capacity. Cost The price of a solar battery is, of course, one of the most important factors to consider before making the purchase. You will have to strike a balance between affordability and quality when deciding which solar battery to buy. The cost of solar batteries ranges from $3,000 to well over $20,000. Here is a quick summary of the average costs of the different types of solar batteries on the market: Lithium-ion: $7,000-$30,000 average cost, some extra maintenance can be required. Lead-acid: $5,000-$15,000 average cost, generally low maintenance. Lithium-iron-phosphate: $9,000-$30,000 average cost, generally long lasting and low maintenance. Types of solar batteries for the home It is also vital to know the types of solar batteries available. Here are the two most common types, and their pros and cons: Lead-acid These batteries are the oldest on the market and generally the cheapest. They can be the best bet if you need lots of energy, but wish to go off-grid. They come in two types: flooded, which requires regular maintenance, and sealed, a maintenance-free option. Pros: The most affordable solar battery type available Quite reliable Suitable for off-grid power needs Cons: Lower DoD of about 50% Shorter lifespan compared to other battery types Much larger and occupy more space per kWh Lithium-ion Lithium-ion batteries are newer battery technology than lead-acid, and preferred by most homeowners today. Pros: More compact than lead-acid Need no regular maintenance Have a longer lifespan because of a higher DoD of about 90% Cons: More expensive than their lead-acid counterparts Can be prone to thermal runaway Final word With circumstances ranging from extreme weather and grid reliability, to time-of-use rates and other policies solar batteries are becoming more popular. There are many types to choose from, but hopefully, you’ve got a better idea of what you’re looking for now. If you’re interested in learning more about solar energy storage, check out our solar storage resource page.  Click above to get the Storage Sales Cheat Sheet. ### Solar plan sets 101: A guide to solar plan sets Whether it’s your first design or 100th installation, creating new, unique, compliant, and accurate plan sets for PV and energy storage projects is one of the most laborious and important aspects of the project.  Without high-quality solar plan sets, you may run the risk of being denied permit and interconnection approval with local authorities, leading to project delays, increased costs, and a handful of avoidable headaches.  In this article, we'll cover the basics of PV plan sets and take a deep dive into the solar permitting process to prepare you for your next project.  What is a PV plan set? An integral part of the installation process, a plan set is a package of drawings and data sheets that outline the details of a proposed installation. This typically includes a project's address or location, electrical components, and structural information, engineering calculations, labels, and placards. You can think of a plan set as the blueprint for a solar installation, the way a construction crew uses blueprints to build a house, and installation team uses the plan set to install a solar system. The plan set is the source of truth for multiple parties to align on, it’s used with the AHJ for permitting and inspection, utility for interconnection approval, financiers for confirming funds are used as intended, installation teams for performing the work, and even homeowners for final approval and setting expectations of the installation. Click above to see how you can get accurate, permit-ready plan sets with no hassle from Aurora. Why is a solar plan set necessary? A plan set is the key component to efficient post sale operations. A quality plan set, with precise and accurate information in it, means that every step of the post sale work flow is faster and easier: permitting, installation, inspection, and permission to operate. By creating high-quality solar plan set drawings that adhere to local building and electrical codes, you can assure your customers that their system has been approved as safe to operate with local authorities, and that your installation teams will be able to quickly and effectively install the system. PV plan sets are instrumental   A proposal design that’s presented to the homeowner at time of sale typically just focuses on the layout of the modules, how much power they expect to produce, and how much savings the homeowner can expect. The plan set design will follow the proposal or sold design, as much as possible while accounting for AHJ requirements, site survey information, such as structural and electrical considerations, mounting hardware limitations, etc. In instances where the plan set design is different than the sold design, the homeowner should be signing off on the changes. Plan sets are just one aspect of a solar project; click above to walk through how to design a system from start to finish. PV plan sets and permitting In recent years, adapting to the volume of distributed energy systems being installed, many AHJs have been adopting more streamlined and even instant permitting methods that don’t require a full plan set for getting a permit. AHJ’s like Clark County NV and Los Angeles CA, and tools like SolarAPP+, have made it so standard projects with approved equipment can be permitted without needing a full traditional plan set.However, most AHJs still require them to issue a permit, and the need for installation and inspections makes having a plan set necessary.    National solar plan set requirements  Within the United States there aren’t nationally set requirements for AHJs and contractors to adhere to, it's up to the individual states to decide for each of their jurisdictions. There are, however, National Electrical Code (NEC) and International building codes (I-Codes, IFC, IRC, IBC, etc) that are written and released every three years for rules and guidance for the various building and safety authorities to adopt. Rules such as NEC 690 and IFC1204 and 1205 are some of the most known sections. They dictate items such as electrical disconnecting means, wiring configurations, and fire access pathways. The rules and references can, and often do, change from code year to code year, both in the reference number and what rules to adhere to.The building codes also leave a lot of space for interpretation for the local building official to use their discretion on what would be safe. The NEC and I-Codes will get adopted over time by each jurisdiction. Some states like California will take the I-Codes, make modifications to them for their unique needs, and publish them as the California Building Codes. Then, cities like San Francisco and Los Angeles will take it a step further and publish their local city codes. State & local solar plan set requirements On a local level, individual states, counties, cities, towns, home owners associations, and even neighborhoods, such as historic districts, throughout the United States have varying requirements for solar installations that need to be accounted for on plan sets. Depending on the AHJ for your project site, your design may have to incorporate certain local rules like fire pathways, electrical disconnect and conduit requirements, maximum system sizes, which roofs can have solar panels... the list goes on and on. Wondering what's the deal with fire pathways? We've got you covered. There are more than 30,000 unique AHJs in the United States, and they all have multiple individuals working in the building and planning departments, which can mean nearly countless variables to account for. This is why most solar installers track AHJ requirements utilizing an AHJ database, such as the feature Aurora recently released, so that their teams can store and reference any requirements that they need to follow. What do solar plan sets include? Like everything in the solar industry, the exact components of your PV plans vary by location, equipment configuration, AHJ requirements, etc., and may look slightly different for every business. To give you a better idea of what you’ll need, here are the basic things your solar plan set should include.  Title page Outlining the project location, scope of work to be performed, property owner and contractor information, and building codes that the plan set design is adhering to. Site plan  The first of many solar permit drawings, a site plan clearly defines the property’s characteristics such as size, orientation, and roof shape. Drawn to scale from an aerial perspective, site plan drawings should show the roof and PV system layout, fire pathways, wiring path and point of interconnection, address, and often property lines, and the street the front of the house is on. Roof plan Zooming in a bit, your roof plan (or roof layout) includes more detail about the location of your solar panels, wiring configuration, and mounting system details, such as rails and attachment points, and the underlying rafter or structural layout. Many AHJs will require structural engineer stamps from a licensed professional engineer. These stamps are typically included on the roof plan. Structural details A cross section view of the modules, mounting system, roof, and structural details, the structural details page will show how the roof structure is built, and how the modules are attached to it. They are sometimes accompanied by structural calculations from a structural engineer ground plan Of course, when you’re installing ground mounted solar panels, you won’t need a roof plan. Instead, the parts and wiring designs are detailed in a ground plan, or included in the site plan. Ground plan details will often have to show details for above ground modules and framing, and underground items, like trenching, plumbing such as septic tanks and leach fields, zoning setbacks from property lines, and in some cases topography and soil details.  Single-line diagram Also known as an SLD or a one-line diagram, a single-line diagram shows AHJs, installers, utilities, and building inspectors how all of the electrical components of your system are connected. With solar panel wiring basics in mind, single-line diagrams clearly illustrate how your system will generate electricity and safely send it to the grid. A single-line diagram is needed by most AHJs and utilities, however some require a three-line diagram. Three-line diagram Looking fairly similar, but with more detail than a one-line diagram, a three-line diagram depicts all of the positive, negative, neutral, and ground conductors in your PV electrical system. (Whereas a single-line diagram will typically group some or all of the wires together visually to more simply show the path of the conductors and connections.)  Labels and markings In compliance with the AHJ’s adopted electrical codes, solar plan sets must include proposed locations for the warning labels and markings outlined by the AHJ and electrical code. For the safety of the building, its occupants, and emergency personnel, proper labels must be placed on inverters, batteries, rapid shutdown initiation devices, AC and DC disconnects, and several other pieces of electrical equipment.  Specification sheets Specification sheets, or data sheets, are documents from the equipment manufacturers that include all the dimensions, details, NRTL listings, ratings, and compatibility with other equipment. They aren’t always explicitly required to be included in the plan set, but are a best practice so the building official can verify the equipment details in the plans with the details in the spec sheets.  Professional engineering stamps Some AHJs require professional Engineer stamps, and sometimes calculations letters with the plan set. This is typically a Structural or Electrical Engineer stamp on the appropriate pages, however, sometimes stamps from two different Engineers are needed — where a Structural Engineer would stamp the structural specific pages, and an Electrical Engineer stamps the Electrical specific pages. An Engineer stamp is their certification on the accuracy of the calculations and design details of the system.This can be a complex and fraught part of the plan sets process, but there are solutions that can help. Aurora customers that need stamped plan sets can request them through our Plan Sets service. Who is involved in solar plan set design? A plan set has a lot of people involved in creating and using it:  Sales representative: The project starts here. Without selling a system the site surveyor won’t know what roofs to measure, and the plan set designer won’t know the customer's expectations. Site surveyor: Someone who goes on site to the project to collect all the information they can about the existing structure, electrical system, roof dimensions and details, etc. Plan set or system designer: The plan set designer will take all the information they have available to them, from the sales rep — site survey, AHJ database, building codes, data sheets, installation manuals — and create the plan set design.  Professional engineer: Depending on the AHJ requirements, a professional engineer may have to review the plans created by the designer and stamp them.   Authority having jurisdiction (AHJ): Once the plan sets are created, they are then delivered to the local AHJ with a permit application, either digitally or in-person, depending on the jurisdiction. While some counties and towns have dedicated personnel for solar projects, the plans are usually handled by someone in the local building department. Installers: Once permits are obtained from the AHJ, the plans are then passed to the solar installation team as a construction blueprint. Install teams are often involved in communicating installation limitations and preferences for plan set designs to enable efficient installations. Inspector: When the installation is complete, an AHJ representative must then take a final look to verify the system has been accurately installed according to the permit details and permitted plan set.   If you’re running a lean business, outsourcing expert solar plan set design services is a great way to access fast PV designs and permit-ready plan sets without having a trained member of your team always on-call for new projects.    Common difficulties creating PV plan sets As highly detailed documents that are different for every customer, equipment type, roof type, existing conditions, etc. developing permit-ready solar plan sets can be difficult, even for experienced installers. Here are some common issues:   AHJ identification and requirements: The first step in bringing a solar energy system to life, PV solar plan sets must always be created in adherence to specific local building, electrical, and fire codes. Without following the right local guidelines, unforeseen requirements can lead to rejected building plans.  AHJ requirement compliance: Complying with different local building codes and their interpretations across a wide service area takes time, effort, and attention to detail on every new project. Since no two designs are alike, permit-ready plans can take a significant amount of time to develop and processes.  Data accuracy: From proposal designs from aerial imagery, to site survey photos and measurements, there’s a lot of information to collect and process to design the plan set. Ensuring the plan set design is completed from the latest, most accurate data is critical for efficient operations. Tool development and integration: Depending on how you design your solar energy systems, it may be possible to build or integrate a specific tool, program, or software to help develop accurate PV permitting plans. While not every tool integrates seamlessly with one another, transferring information between separate sales, design, and engineering platforms can lead to disconnects and extra time spent on manual tasks. Expert availability: Even if you employ a team of solar experts, developing accurate plan sets and having them approved is a time-intensive, and often time-sensitive, process. As AHJ approval may require an appointment and can take days or weeks to review, it is critical to try and submit passing plans on your first attempt with the help of an expert.   Have more questions? Check out our plan sets FAQ. Next steps  Generating permit- and install-ready plan sets is a complex process, and doing it well is critical to the success of the solar company.  Want to learn more about how you can use our plan sets services to build your business? Schedule a quick, no-hassle demo, or click the chat box in the bottom right of the screen to get more information (from a human) right now. Get a step-by-step look at Aurora's Plan Sets Service below. ### Heat wave: How solar installers can help beat the heat in Texas, and elsewhere The recent extreme-even-for-Texas heat in Texas presents a dangerous situation, especially for those without electricity or air conditioning. If we remember back to the winter of 2021, the virtual opposite conditions — extreme storms and cold — led to an unprecedented situation where millions of people were left without power, heat, and even water. Losing power wasn't the only issue. Many that did have power through the whole ordeal faced enormous electric bills.   While this heat is no-doubt stifling and dangerous, we haven't seen headlines around power outages and outrageous bills. Why not? One big reason is how renewable energy — of which solar is a big part — has stepped up to fill the demand. This has not only kept electricity prices largely in check, but has likely literally saved lives. In this post, we’ll take a look at this latest "unprecedented" weather, see how renewable energy is helping, and learn how solar installers can continue to help prevent situations like this in the future. The situation During the height of the crisis in February, 2021, electricity costs rose to $9 per kilowatt hour ($9,000 per Megawatt hour), pushing many electric bills to over $100 per day — with one customer reporting an invoice of almost $17,000. And while electricity prices have risen at times during this heat wave, they've largely stayed under $50 per Megawatt hour (MWh) — compared to the regular rate of around $30/MWh. So, what changed? Obviously many factors are involved in electricity pricing, especially in a deregulated market like Texas. But one of those factors — a major one, in fact — has been the ability of renewables to step in and provide extra power during the heat of the day. According to this report from Axios, on June 28 renewable sources produced 31 Gigawatts of electricity to the grid, with solar accounting for almost 12 GW. This was not just a record, but a starting point. According to the essential Gridstatus.io, 4 of the top 10 renewable energy days have been in the past two weeks. (H/T Max Kanter.) Images courtesy of Gridstatus.io What more can the solar industry do? To make sure their power stays on, and they’re not faced with outrageous bills, homeowners and businesses will be looking for even more ways to protect themselves for the next time disaster strikes this now pretty typical weather occurs. This is where battery storage can provide a real boost, not only delivering power during outages and reducing dependence on the grid, but offering options for self-consumption when rates jump.  Improvements in solar storage technology have led more homeowners to consider storage as part of their solar installation — over 25% of solar systems will include a storage component by 2025, according to Mordor Intelligence. This trend is echoed in Aurora’s research, as more than 80% of installers have noticed increased homeowner interest in storage options.   Solar storage for self consumption resources Storage is largely still sold for peace of mind: So homeowners know that they'll be able to keep the lights — or a/c — on if the power goes out. However, suggesting solar storage without seeming insensitive or overly alarmist can be a fine line. Our 5 Minute Storage Sales Cheat Sheet lays out several ways to position storage to potential customers. To help determine what sales approach is right for your team, click above to get the Storage Sales Cheat Sheet. In markets like California (with NEM 3.0), Texas, and others where prices fluctuate between times of high and lower grid use, battery storage capacity can increasingly be used for self consumption when electricity prices rise. This is still a relatively new concept for many homeowners, though, and education is a major piece of the sales puzzle.  One of the best resources we have to explain self consumption to homeowners is our Battery Self Consumption Modeling feature. By showing the homeowner their costs and potential utility bills with and without storage, you can show them the potential benefits. Check out the example below to learn more. Insert Text In closing... It goes against the very definition of "unprecedented" to keep calling these weather events unprecedented. As the summer drags on, more heat records will likely fall. At the same time, more renewable electricity generation records will likely go with them. This is just another reason for homeowners to consider backup power. Not only can it help them keep their house running when the grid goes down, it can provide financial relief for those times when energy prices spike. Have questions about storage for self consumption? Schedule a personalized demo — or get the info right now by clicking the chat box at the lower right of the screen.  ### 3 tips for delivering a winning solar sales proposal At the heart of any solar sale is a great proposal. A compelling, personalized proposal that speaks directly to your customer’s needs gives you a real leg up on the competition. Likewise, a generic, text-heavy proposal that reads like a legal contract can put your sales team at a disadvantage. But, what makes a great proposal? We had a roundtable discussion with a group of solar experts to answer that very question. Based on their advice, we developed the Solar Sales Playbook For Proposals That Close. Click below to download the full playbook. Click above to get your free copy of the Solar Sales Playbook. In this blog, we’ll look at some of the highlights from the playbook to get you started. Customize your proposal Before you do anything, you need to know what type of buyer you’re dealing with. Someone looking for relief from a huge electric bill will want to see different things in their proposal than a homeowner looking to help cut their environmental impact.  Our research on the 5 Types of Solar Buyers is a great place to get a detailed look at the different categories of buyers that you’ll likely encounter. But, it’s tough to know exactly what any particular customer is looking for before you meet them and ask them some questions. Once you know their unique challenges and goals, you’re in a better spot to deliver a proposal that meets their specific needs. The roundtable of sales experts says… Delivering a customized, frictionless proposal process is as important to your prospective customer as it is for your sales reps. Equipping your sales team with smart software will empower them to: Make adjustments on the spot based on customer feedbackShow the customer the cost adders, incentives, and discounts that are automatically built into the systemClose with automated contract generation and integrated e-signature options Highlight the finances While every buyer is different, most people are concerned about system costs. With so many incentives, tax breaks, and other considerations, though, financing is also one of the things customers find most confusing. Solar customers appreciate when a proposal includes information that helps them make sense of their options. You can help remove financial barriers for prospective customers by showing them federal and local incentives, as well as attractive loan options tailored to their needs. A proposal customized for each customer is critical to standing out in the crowd. The roundtable of experts says… Use your proposal to position yourself as an informative teacher rather than a salesperson. By empathizing with your leads and working with them on their concerns, you will win their trust and leave a positive impression. This means you’ll need to be able to answer a few questions accurately and honestly: How much will the system cost, all in?How much will the customer save over time?What are the details on the incentive types and loan options the customer may qualify for? Be exceptional  We know, you are exceptional! Don’t be afraid to show it, and make sure you have software that lets you present your company’s differentiators in a compelling way. Highlight the things that make your company exceptional. The roundtable of experts says… Your company’s value should be clearly spelled out in your solar sales proposals so your prospective customer doesn’t have to read between the lines. Be sure to highlight: Unique customer testimonialsWarranties and other concrete benefits your company offersExperience, certifications, and other expertise your team brings to the table In closing… In the end, a great sales proposal that hits on all the questions and concerns each of your customers has helps you close more deals. Period. This blog just scratched the surface of our experts' advice on how to deliver proposals that close. To learn more details and strategies, be sure to get your copy of the full Solar Sales Playbook today. Click above to get your free copy of the Solar Sales Playbook. The research behind the Playbook: What makes proposals succeed? Here at Aurora, we want to help empower solar companies across the whole project lifecycle — from lead to completed project. Of course that means helping you design optimal solar projects faster and more easily. But, it also means helping you create stunning, personalized proposals so your proposed designs actually become reality. We’re on a constant journey to discover the key factors that make proposals successful. First, we commissioned branding and marketing expert Katherine Glass to research the sales experiences of solar customers, to understand what drove their decisions about installing solar, and solar professionals to understand what elements they had observed to be important in proposals and the solar sales process more broadly. Glass is the founder of SpringMark, a marketing and brand strategy firm. Before founding SpringMark, she worked for global creative consultancy Lippincott, where she helped shape the brands of major companies like Delta, Petco, and Starbucks. In her research, Glass spoke with a selection of homeowners around the country who were at different stages in the solar sales process to understand the factors that influenced their decisions. Some had installed solar, some were in the process of installing solar, and others had considered installing solar but ultimately decided against it, providing a diversity of perspectives and experiences. We then convened a roundtable session of seasoned solar professionals at our office to integrate insights from their sales experiences. Katherine facilitated the session and identified common themes and lessons about what makes proposals successful from the contractor perspective. Some of the participants of Aurora’s roundtable workshop on solar sales proposals: (from left) Zayith Pinto, Residential Sales Manager at Sunworks Inc.; Ty Simpson, Regional Sales Manager of Bland Solar and Air; Michelle Meier, Director of Solar Services at BSW Roofing & Solar, and President at Solar Roof Services LLC; and Vernon Stratton, CEO of Polar Solar. Katherine Glass (right) facilitated the workshop. (Participant Michael Hale, Solar Energy Consultant at Baker Electric Solar is not pictured.) As the solar industry grows increasingly competitive, contractors need to think about how they can better communicate their value to potential customers. In addition to ensuring that your customers have an excellent experience with their installations (the best way to ensure positive word of mouth and customer referrals), incorporating these five principles into your proposals can help make them more successful. This way, when your conversations with a homeowner conclude, you can be confident that the proposal in their hand will stick in their mind. ### Celebrating Independence Day with a solar design for George Washington In honor of Independence Day, we thought it was the perfect time to update one of our favorite posts: a solar design for revolutionary hero George Washington's family. We originally designed a system in 2017 using the latest Aurora tech — but a lot has changed since then. So, using 2023 solar design and analysis capabilities, we explored how solar can bring energy independence to Mount Vernon, the home of America’s first president. The grandiose manor in northern Virginia was Washington’s pride and joy. He put a great deal of work into Mount Vernon, expanding the original, modest 1.5-story house his father built, and incorporating elements of British architectural style. He also spent decades developing the gardens — including an exceptional vegetable garden to meet the estate’s needs, and even adding a greenhouse for exotic plants. Even when duty called him away for long periods of time, during the Revolutionary War and later his presidency, he wrote home often detailing his vision for renovations and landscaping. Given the pride they took in developing a self-sufficient home, and their clear love of nature, we imagine the Washingtons would have been intrigued by the opportunity to power their house with energy from the sun. The home The 11,028 square foot manor includes the main house where George and Martha Washington lived and hosted guests, as well as side buildings. The home also sports an iconic front porch, known as the “piazza,” one of Washington’s personal contributions to Virginian architecture. This peaceful sitting area provides the perfect spot for taking in Mount Vernon’s breathtaking views of the Potomac River. Remarking on the vista, Washington once wrote, “No estate in United America is more pleasantly situated than this.” Here's the initial view of Mt. Vernon from above. Starting the proposal The first thing you need to get a feel for in a solar sale is the customers themselves. Knowing what we do about the Washington family, we figure they want a consultative approach, where they're partners in designing the system. So, we immediately think Sales Mode, and start our proposal.  Developing a load profile Next, we need to get an idea of the estate’s energy consumption patterns so we can understand what size solar installation would be appropriate.  While we didn’t have actual electricity bills or interval data for Mount Vernon, we estimated its monthly energy consumption using data from the U.S. Energy Information Administration. At 11,028 square feet, Mount Vernon is ~5 times larger than the average Virginia house. Since we figure the Washingtons are more energy conscious than most, we estimated Mount Vernon’s monthly electricity consumption at more like 3 times the average monthly consumption for a Virginia home, which is about 1,100 kWh according to EIA data. Since we didn't have access to any electric bills, we chose May as an "average" month and plugged 3,300 kWh into Sales Mode. Aurora's simulation estimated the other months from there.  It used that data to generate an average monthly bill. While a $520 monthly electric bill doesn't seem too bad for an estate of this size, a look at the 25-year picture is a little more grim. Modeling the home Now that we have the Washingtons' usage, we can get to the fun part: modeling the system. We knew this was a pretty complex house, so we had a designer create the 3D model before our appointment, which we loaded into Sales Mode. That way we could jump right into working with the Washingtons to design the system. Wow, that is complex. But our expert even got the individual roof faces on the top spire. With irradiance added, we can also see that the front roof of the main house has good access to the southeast, and the auxiliary house has even better access to the southwest. This level of detail will really help when we move to the next step: adding panels. The design The initial model has 90 panels total split between the main house and the auxiliary house, and the Washingtons are looking at 88% energy offset. While they like the performance, they have some renovation plans for the aux house and don't want panels on that roof. So, we work with the Washingtons to come up with a better design for their needs. Not bad. Very clean looking, but we're up to 96 panels instead of the original 90. Since we've established ourselves as trusted partners, we explain that because of irradiance differences, we need more panels to get the same 88% offset. We help them understand the concept by showing them how the dormers shade the paneled areas just a bit. A good fit for storage? Next we move on to storage. Living in the country and coming out of the Revolutionary War, the Washingtons appreciate the need for a little backup. They think they'd like a couple days of being able to use the essentials, just in case. But... the Washingtons are also risk takers, and $31,00 is a little steep for their budget right now. They decide to go without storage, knowing they can add it on later and the storage will still qualify for the ITC. Environmental impact The Washingtons obviously care about the health of these United States of America, so they're interested in the environmental benefits of their system, as well. While they're a little confused about what barrels of oil are and what they could possibly be used for, the number of trees planted and forest acres really hit home. It doesn't exactly make the sale, but it's a nice added benefit. The savings Now we get to the page we've all been waiting for: savings. When it comes down to it, most homeowners still go solar to save money and the Washingtons are no different. They're looking at a low- or no-money-down loan and go with a 4.99%, 20-year option. As we can see, the bill savings here isn't exactly obvious.... at first. With the monthly loan payment, a little bit of grid use, and minimal fixed costs, the Washingtons will be paying more per month with solar than without. At least for a little while. They're understandably a bit confused — solar is supposed to save them money. So, we click down into the monthly estimated bills over 25 years, and that does the trick. We can see the system becomes cash flow positive in Year 2, thanks to our ITC buydown and rising electric rates. Sign them up With savings like these — lifetime savings of over $55,000 — the Washingtons were ready to sign up, which they could easily do electronically with Sales Mode. In the future, the Washingtons might consider more ambitious projects to cover 100% of their electricity needs, or even more to become net producers. For one, we'd like to see an agrivoltaics project as a part of the gardens the Washingtons enjoy so much. This is just the start, though. Do you have other ideas? Some ground mounts? Agrivoltaics? More panels up on a roof? Let us know! Tag us on LinkedIn and Instagram, and tag it #AuroraSolar. The best design will win some Aurora swag. https://aurorasolar.com/blog/agrivoltaics-the-solar-projects-goat/ Acknowledgements: Special thanks to Sheila McMenamin, to Stephen Gerken for all the updated modeling in Aurora, and to Victor Ionin for his work on the original Mount Vernon post. ### Agrivoltaics: The GOAT of solar projects? In the 21st century, our world faces interconnected challenges, including potential energy shortages, increasing food insecurity, and an unpredictable climate. By 2050, we will need to significantly increase energy and food production to accommodate the growing global population, which is slated to exceed 10 billion by 2080.  However, we also need to address these issues in an environmentally sustainable way. Can we generate more energy without contributing to global warming? Can we produce more food without depleting water resources and forests? One potential solution is agrivoltaics — a concept that combines solar power generation with agriculture. What does agrivoltaics entail and how does it extend beyond the simple combination of farming and solar energy? What are its benefits and limitations, and how do we determine if it's a suitable solution for a site? Let’s take a look. Yes, there will be more photos of sheep and solar panels later.("Solar Grazing at Solar Shepherd in Massachusetts" by AgriSolar Clearinghouse.) Isn’t agrivoltaics just “solar farming”? It is not! First coined in 2011, agrivoltaics (sometimes spelled “agrovoltaics”) is an innovative approach that integrates solar with agriculture​. In an agrivoltaic system, solar panels are strategically installed over fertile farmland — high enough to allow machinery, livestock, and even crops beneath.  This setup promotes concurrent solar energy generation and agricultural production on the same parcel of land. The PV panels provide a mix of sun and shade to the crops below, while the crops help moderate the microclimate underneath the panels, enhancing their performance and lifespan. That sounds like “solar farming” The concept of agrivoltaics is distinct from merely combining farming with solar power because it establishes a synergistic relationship between the two. Unlike standalone PV farms or traditional agriculture, agrivoltaics is specifically designed to optimize both energy production and crop yield: The positioning, height, and spacing of solar panels is carefully calibrated to benefit the crops below.The presence of crops offers benefits such as temperature moderation, potentially contributing to more efficient PV panel operation. The plants act as a natural barrier, reducing the buildup of dust and debris on the panels' surfaces, which can help maintain their performance over time. This mutual enhancement is the essence of agrivoltaics. What are the benefits of agrivoltaics? We can all agree that the concept of agrivoltaics is cool. But, what specific benefits does it produce besides making for a nice headline next to a cute picture of sheep? Oh, just... Agrivoltaics is more than just solar + sheep.("Solar Grazing with Happy Sheep" by AgriSolar Clearinghouse.) Increased crop yields By providing a controlled microclimate, agrivoltaic systems enhance crop yields. A study by the National Renewable Energy Laboratory (NREL) found that total chiltepin fruit production was three times greater and cherry tomato production doubled when using agrivoltaic systems over more traditional farming methods.  Water conservation Water conservation is another crucial advantage. Water-use efficiency for jalapeños and cherry tomatoes is 157% and 65% greater, respectively, when using agrivoltaics instead of more conventional irrigation systems. It makes sense when you think about it: The solar panels reduce evaporation from both plants and soil, helping to conserve water  — a critical advantage in drought-prone regions​.  Improved solar production Agrivoltaics also improve solar energy production. PV panels in an agrivoltaic system were found to be about 16°F (9°C) cooler than a traditional panel array — enhancing their performance and efficiency​. More efficient land use It may seem obvious, but it’s worth saying out loud: Using land for energy generation and food production optimizes land use efficiency — try doing that with a traditional power plant. This is particularly beneficial as we strive to meet increasing global demand for food and energy, while minimizing the environmental impact of these resource-intensive activities. Powering the farm with solar, and your body with healthy veggies. ("AgriSolar crops at University of Massachusetts South Deerfield" by AgriSolar Clearinghouse.) Considerations and limitations of agrivoltaics Of course, every technology has its limitations and drawbacks — there are no magic beans (although, they’d probably grow nicely up the poles). While the benefits of agrivoltaics are promising, there are certain considerations and limitations to be aware of.  Not all crops are suited to the partially shaded conditions under solar panels. Wheat, for one, requires a lot of sunlight and may not thrive in an agrivoltaic system​.  The upfront cost of setting up an agrivoltaic system can also be a deterrent. Compared to conventional roof-mounted solar panels, agrivoltaic systems require larger, more complex mounting systems, which can cost up to three times more than flat roof PV installations.  Agrivoltaics can involve complex mountings.("Elevated Racking System at Grafton Solar to Accommodate Specialty Crop Growth" by AgriSolar Clearinghouse.) Additionally, the need for deeper steel foundations for stability and resilience in adverse weather conditions can contribute to higher overall carbon emissions during project development​​. TL;DR? As with any major project, you have to weigh the financial and environmental factors carefully before going ahead with an agrivoltaic system. Is agrivoltaics right for you and your clients? Implementing agrivoltaics requires careful consideration of a number of factors, including:  The location The benefits of agrivoltaics are more pronounced in hot and drought-prone regions where PV panels provide shade and help the ground retain water​.  The crops What you want to cultivate also plays a role, since — not surprisingly — not all crops fare well under solar panels. While some crops, like cherry tomatoes and chiltepin peppers, thrive in agrivoltaic systems, others that require a lot of sunlight (like wheat) are often less suited to this approach​. Crops like cherry tomatoes do especially well in agrivoltaic farms.("Agrivoltaics" by UC Davis College of Engineering.) In closing... Agrivoltaics represents a powerful combination that addresses the critical challenges of food and energy security. By intelligently integrating solar power generation with agriculture, it provides a practical and innovative solution that boosts crop yields, conserves water, and produces renewable energy — all in a smaller footprint. While the upfront costs might be high, the potential return on investment from increased crop yield and energy production can make it a worthwhile endeavor​.  As global demands and the urgent challenges of climate change continue to mount, agrivoltaics emerges as a crucial solution. It offers a sustainable path forward, addressing both current needs and the long-term well-being of our planet.  If you're interested in exploring the potential of agrivoltaics further, or have more questions about what's involved, let's talk. You can schedule a quick chat by clicking here, or to talk right now, simply click the chat box at the bottom right and a real person will respond. OK, one more for the road...("Solar Grazing between rows of Solar Panels" by AgriSolar Clearinghouse.) ### Solar project delays? Get a leg up with automation and intelligent workflows Even as solar hardware costs trend downwards, other installation-related expenses continue to increase. These include soft costs, permitting approvals, and installation delays, all of which can significantly impact solar's affordability — making solar less appealing for homeowners. One strategy that can help solve these problems is adopting smart workflows.  By streamlining operations, automating tasks, and enhancing team communication, smart workflows can help solar companies mitigate rising soft costs and eliminate operational inefficiencies.  Using automation and intelligent workflows was the topic of our recent webinar with Scoop Solar, Solar Masters: How to Empower Your Teams with Smart Workflows. In this blog we’ll look at some of the biggest inefficiencies plaguing solar today, and touch on how smart workflows can help. Click above to watch the entire webinar on demand. The issues, in depth As we mentioned above, the solar industry is grappling with three interconnected problems: soft costs, permitting issues, and installation delays. Soft costs encompass a range of expenses, including customer acquisition, installation labor, and the administrative costs of permitting. Aurora’s Nieku Barkhordarian points out, "65% of the total system's costs are due to soft costs." These expenses are growing over time, making it increasingly important to find ways to streamline operations and reduce expenses. Permitting issues are a significant component of these soft costs. The process of obtaining permits for solar installations can be complex and time-consuming, often varying from one jurisdiction to another. This not only adds to the soft costs, but can also lead to delays in the installation process.  PV installation delays can result from a variety of factors, including permitting issues and equipment supply chain disruptions. These delays can lead to increased cancellation rates and customer dissatisfaction. "What we see in the field is every one week delay in our installation process correlates to a 5 to 10% increase in cancellation rates from homeowners," observes Barkhordarian. A deeper understanding of these interconnected challenges shows the transformative potential of smart workflows in the solar industry. Tackling soft costs with smart workflows  Since soft costs make up such a large portion of the total project cost, anything we can do to bring them down will have a large effect on the bottom line. Enter smart workflows. A smart workflow is a process that automates tasks, improves communication, and streamlines operations. By implementing smart workflows, solar companies can reduce labor costs, improve marketing efficiency, and speed up the permitting process. For example, you could develop a smart workflow to automate the process of generating and sending quotes to customers, saving time and reducing labor costs. You could also streamline the permitting process by automatically generating permit-ready documents, reducing administrative costs. That’s just the beginning, of course, here are some more resources to help you get started: Automations deep dive: Streamline your operations with automated workflows Complex solar workflows? APIs can help Scale your organization seamlessly with APIs 14x revenue growth in solar? Start by automating your workflows Streamlining permitting  Permitting is a significant hurdle in the solar installation process. The process of obtaining permits for solar installations can be complex and time-consuming, often varying from one jurisdiction to another. As Barkhordarian notes, "$7,000 of an average system's cost is due to permitting inspections and fees." This not only adds to soft costs, but it can also lead to expensive delays in the installation process.  Solar permitting is intricate due to its multi-step nature and the need for many documents, including site plans, system specifications, and safety details. Mistakes or missing information can result in delays and increased expenses. This is where the power of smart workflows and automation comes into play.  Using a smart workflow for the permitting process, you could automate the generation of permit-ready documents, ensuring that all necessary information is included and formatted correctly. This can significantly reduce the time spent on preparing and submitting these documents. Automation can also help reduce the likelihood of errors. Aurora can help. Our Plan Sets service streamlines this complex process, and lets you request permit-ready plan sets quickly and easily. Check out our Plan Sets FAQ to learn more. Reducing delays and enhancing customer satisfaction In addition to reducing ROI, unexpected solar installation delays can also lead to cold feet, causing customers to change their minds and explore other options (with other installers). Any number of variables can trigger these delays, such as permitting issues, equipment supply chain disruptions, and communication breakdowns between teams.  As you may have guessed by now, smart workflows can play a crucial role in reducing these delays. For example, smart workflows can automate processes like equipment ordering, ensuring timely placement of orders and availability of necessary components. This automation facilitates smooth project progression by eliminating potential bottlenecks and inefficiencies. Underpinning all these solutions is the power of real-time, collaborative communication. True automation is not just about synchronizing individual tasks or components, but about keeping entire teams aligned and informed. This is where the integration of Aurora with platforms like Scoop Solar comes into play, enabling seamless communication and collaboration across teams. As Tyrell Mara, VP of Operations & Growth at Scoop Solar, emphasizes:  "Automation is not about replacing human labor, but about augmenting it. By automating repetitive and mundane tasks, we can free up our team to focus on more strategic and value-adding activities."  This integration ensures that everyone — from sales and design to installation teams — is on the same page, reducing delays and enhancing customer satisfaction. It's about creating a cohesive, efficient, and responsive workflow that not only improves operational efficiency but also elevates the customer experience. Next steps For more in-depth information and practical strategies to harness the power of smart workflows for your teams, watch the full webinar on demand: Solar Masters: How to Empower Your Teams with Smart Workflows.  Click above to watch the entire webinar on demand. If you have any questions that weren’t answered in the webinar, or would just like additional information or suggestions, schedule a personalized demo — or get the info right now by clicking the chat box at the lower right of the screen. Featured image by carlos aranda. ### Solar brand positioning 101 — stand out from the competition As the solar industry gets more and more competitive, making the most of your marketing and brand management resources can set your company apart.  In this post, we’re investigating ways that you can use strategic marketing and communications to help grow your solar business. To get warmed up, check out our companion post on solar marketing and brand management basics.  Brand positioning for lead generation  There have never been more hands getting into the collective pie of solar. 255,000 people work in solar at more than 10,000 companies — in every state in the US. The recently passed Inflation Reduction Act provides attractive benefits for solar businesses, so we expect to see an additional bump in new solar businesses each year. While there’s likely room for everyone who wants to get started in solar sales, it’s imperative to find your own brand positioning niche for generating solar leads and turning those leads into satisfied customers.  Discover what we learned from our customers who are using Lead Capture AI to improve their solar business. https://youtu.be/Kd07rIOHUMg It's important to recognize that many solar companies are selling and installing the same or similar equipment. That means you need to come up with other value propositions to entice customers, such as local knowledge, warranties, and excellent customer service. And because you won’t be the only company generating solar leads, you’ll also have to utilize the best lead capture solutions to capture as many quality leads as possible. The importance of branding: best practices  Whether it’s offering a unique sales experience through solar design centers, or approaching solar from a roofing perspective, differentiating your brand can have a big payoff.  Solar power production guarantees Solar power prospects are becoming savvier every day. They do their research, get multiple estimates, and make sure they compare apples-to-apples with all those estimates. In a market like this, separating your offer from the others can be difficult. One strategy companies are turning to — and customers are increasingly asking about — is production guarantees.  Gain a competitive edge with exceptional customer service  Focusing too much on the sale and failing to prioritize quality at all stages of the customer’s experience after they sign on the dotted line is a costly mistake. Delivering excellence beyond the sale will lead to satisfied customers who can’t wait to tell their friends and neighbors about going solar with your company.  Why solar panel recycling matters  The end-of-life management of panels is the only negative environmental impact of photovoltaics. Tackling this issue is very important from a marketing and public relations standpoint. By integrating recycling practices into your business operations, you can give your business a huge marketing advantage over your competitors. For more information... Looking for more information on solar marketing? Be sure to subscribe to our weekly newsletter, The Current, to stay up to date on solar strategy, tech, events, and news. TO get all your specific questions answered, schedule a personalized demo — or get the info right now by clicking the chat box at the lower right of the screen. Click above to schedule a personalized demo. ### Your Energy Community Tax Credit Bonus questions answered As long as there’s been an Energy Community Tax Credit Bonus, C&I solar companies have been wondering: How does the Energy Community Tax Credit Bonus affect my company? The US Treasury Department and the IRS recently issued guidance to clear up the confusion. What does it mean for C&I solar, installers, and people in Energy Communities? Let’s take a look. First, we have to take a step back and answer the question… What is an Energy Community?  According to EnergyCommunities.gov, the IRA defines an Energy Community as (text taken directly from the website): A “brownfield site”  These are properties where redevelopment is complicated by potential environmental hazards — as defined in certain subparagraphs of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). To qualify, a brownfield site must either have been previously identified by federal, state, or tribal resources as a hazard-affected site, or confirmed as such through an Environmental Site Assessment. Small projects with a nameplate capacity of 5 megawatts or less also qualify if a Phase I Environmental Site Assessment has been completed​​. A “metropolitan statistical area” or “non-metropolitan statistical area”  These areas must have had significant employment or revenue tied to fossil fuel industries (since any time after 2009). Specifically, at least 0.17% of direct employment or 25% of local tax revenues must be related to the extraction, processing, transport, or storage of coal, oil, or natural gas. Additionally, these areas must have an unemployment rate at or above the national average for the previous year​​. A census tract (or directly adjoining census tract) This category includes tracts where a coal mine closed after 1999 or a coal-fired electric generating unit retired after 2009. The tax credit bonus also applies to directly adjoining census tracts. This provision is intended to support communities impacted by the transition away from coal-based energy production​​. OK, so only the US government could consider wording like this to be a “clarification”. But, we can see that generally speaking, Energy Communities are places that have been adversely affected by traditional energy production methods.  The Energy Communities website provides a searchable map to help clarify. Click the image to go to the searchable map. Now that we have a little more insight on the communities themselves, we can start to look into… What does the Energy Community Tax Credit Bonus mean for installers? The Energy Community Tax Credit Bonus is a significant financial incentive that amplifies the profitability of renewable energy projects within defined "Energy Communities". When a project is eligible for the Production Tax Credit (PTC) or Clean Electricity Production Credit (CEPC) and situated within an Energy Community, it receives a 10% increase to the base credit amount. To put it in perspective, the base credit amount refers to the initial tax credit a project can earn under Sections 45, 48, 45Y, or 48E of the Internal Revenue Code before the application of the Energy Community Tax Credit Bonus. This increase, in the form of a 10% bonus for PTC or a 10 percentage point rise for Investment Tax Credits (ITC), can significantly boost the financial viability of renewable energy projects. For solar PV projects, this effectively translates to enhanced savings and increased revenues for developers working within these Energy Communities. With the Energy Community Tax Credit Bonus in play, the economic case for renewable energy investment in these communities becomes even stronger — accelerating the transition towards cleaner energy sources and contributing to the overall sustainability goals. Click above to see how HelioScope can help you design and sell more C&I solar projects. Why did the IRS issue this update? The definitions of Energy Communities and the qualifying criteria for this bonus credit were initially broad and complex, leading to uncertainty and a need for further guidance. Recognizing this, the IRS issued Notice 2023-29 in April 2023 to provide clarity on the eligibility requirements and the bonus credit program under the Inflation Reduction Act​​. The Notice outlined detailed guidelines and proposed regulations to help project developers, investors, and impacted communities better navigate the Energy Community Tax Credit Bonus program.  How do I know if a site qualifies for the ECTCB? As a PV installer, the first step is to assess if your current or prospective solar projects are located in Energy Communities. Resources such as the Energy Communities Map can help you identify these areas. Once you have a potential qualifying project, consult with a tax professional to ensure that your project meets all the IRS requirements to capitalize on the Energy Community Tax Credit Bonus. Conclusion The Energy Community Tax Credit Bonus offers a lucrative incentive for solar PV installers to contribute to the revitalization of communities impacted by energy sector changes. By understanding and leveraging this bonus, you can drive both the growth of your business and the adoption of clean energy. Have more questions about the Energy Community Tax Credit Bonus and how your company can use it? Schedule a personalized demo — or get the info right now by clicking the chat box at the lower right of the screen. ### Understanding the solar sales funnel: Strategies to convert more leads When it comes to succeeding in the solar industry, few things are more important than having your sales funnel in working order. From generating solar leads, to designing PV systems, to signing new customer contracts, a solar sales funnel (or a solar lead funnel) exists at the intersection of your marketing, sales, and customer service departments with the purpose of driving new business.  To help you build a more effective solar sales funnel, this guide will demonstrate ways to generate leads, convert prospects, and grow your solar business — one installation at a time.  Stages of a solar sales funnel To paint a clear picture, let’s first look at the different stages of a solar sales funnel. As the sales cycle contains many moving parts, it can be helpful to keep track of your leads and sales in one central, easy-to-use platform. Lead generation To kick things off, let’s talk about lead generation, which falls in the “Awareness” stage of your solar buyer’s journey. At the top of the funnel, your job is to make your potential customers aware of your company and its services, which for solar businesses often involves explaining how PV systems work in the first place. One of the best ways to begin a productive conversation with your customers is to relate the benefits of a solar system to precisely how that system would work on their property. With tools like Lead Capture AI, you can passively convert prospects considering solar with software embedded on your website that allows leads to create a 3D model of the panels on their home or business and calculate their unique savings.  In one year since its launch, Lead Capture AI has helped solar companies increase their web leads by 400%.  Lead nurturing During the “Consideration” stage of a solar lead funnel, your potential customers are doing the math, research, and personal reasoning necessary to determine whether a PV installation will be worth it. While we encourage you to never give up on solar leads or referrals that still show interest, nurturing the relationship you have with potential buyers is absolutely essential to maintaining an effective solar sales funnel.  Nurturing solar leads is a delicate process, and there is no single solution. Whether you're using advanced solar CRM (customer relationship management) software or a good, old-fashioned pen and paper to track your process, following up with new leads can be done via call, text, or email — or ideally a combination of the three.  Sales conversion Knowing that following up with leads can boost your solar sales, converting leads into customers is the final step of your solar sales funnel. Known as the “Buyer” or “Decision” stage, signing solar contracts can be a very big deal, especially considering that PV installations perform for 25 years and more.  To convert more solar sales, it is helpful to have your “ducks in a row” regarding every aspect of your customer's installation. Although many people consider a handshake the defining moment when a sale is converted, it's crucial to have all of your project's costs and information accurately documented and signed.  Strategies to grow and nurture your solar sales funnel To keep the wheels turning for your solar business, there are a few key metrics you can consider and tools you can use to grow, develop, and maintain your solar sales funnel.  Identify your ideal customer Without diving too deep into the world of customer profiling, getting to know your target audience is essential to establishing a working solar sales funnel. Although you're free to tell everyone you meet about the benefits of solar, your efforts may be wasted if you spend too much time reaching out to unqualified or uninterested customers.  Thankfully, the financial and environmental benefits of solar are appealing to many property owners, and there are many people with enough roof or yard space to accommodate an installation. To find your audience, identify specific customer pain points, and ultimately convert more leads, check out our guide to The 5 Solar Buyers. Click above to learn more about the 5 types of solar buyer. Leverage marketing efforts To bring leads into your solar sales funnel, marketing efforts are an absolute must. To bring high-converting leads into your sales funnel, however, you must connect with your target audience in a way that provides value for your prospects and sets you ahead of the competition. In today’s digital marketplace, an optimized website is vital to gaining the trust of your audience and establishing a clear way to generate new leads. There are many ways to drive traffic to your website, including: Paid advertising using search engines (PPC), banner ads, and traditional forms of media like TV, radio, and billboards Educational content in email campaigns, blog posts, whitepapers, newsletters, and other resources prospective customers may like to read Face-to-face interactions such as stepping offline to meet your customers at community events, trade shows, and other social gatherings Once a prospect reaches your landing page, a website that follows the guidelines of SEO for modern solar businesses (i.e. mobile-friendly, quick loading speeds, good content structure, etc.) can create a good customer experience and generate more leads for your company.  After demonstrating compelling reasons for property owners to submit their information to your business (with a tool like Lead Capture AI), you can capitalize on the interest of your prospects with a clear form for them to submit their contact information. Oftentimes, this can be accomplished by clearly demonstrating the next steps, such as a free in-person (or virtual) consultation. Want to see how a real customer did it? Click above to get the details. Once your sales prospects are in your CRM, it's vital to nurture them by building a relationship and taking leads across the finish line. For solar companies, lead nurturing campaigns can take many forms — from sending personalized emails to staying active on social media and always being available to discuss active proposals with potential customers.   Keep track of your progress Above all else, keeping track of your solar lead funnel is the best way to analyze your efforts and make educated decisions on how to move forward. By using a data-driven sales approach, you can measure every aspect of your sales funnel to see unbiased metrics of your campaign performance.  Similar to those found in many other industries, important things to track in a solar sales funnel include:  Number of leads by source (i.e. canvassing vs. online) Cost per lead & customer acquisition costs (by source) Conversion rate from leads to sales (divided among sales reps or team members) Average lead lifetime (i.e. 25 days from lead to sale) Tips to improve conversions in your solar sales funnel Creating a solar sales funnel is easy, making it work, however, can be difficult without the right strategies. Although some of the intangible aspects of the solar sales process can only be taught through real-world experience, here are our top tips for converting leads in your solar sales funnel.  Focus on building trust and rapport Any experienced solar salesperson will tell you that converting leads is all about trust. Solar installations cost tens of thousands of dollars and systems last for 25 years and more, so your leads need to know that they can trust you completely before making this large commitment.  In addition to understanding different solar buyer types and addressing specific customer pain points, there are many things that you can do to build trust and rapport with your prospects, such as: Clearly outlining all of your solar project’s warranty agreements Connecting with customers on a personal level through shared acquaintances or interests  Listening to customer input and making thoughtful system or contract changes Always ensuring that you are acting in the best interest of your customers To prepare for a potential sales scenario, you may also find it helpful to practice your pitch ahead of time. Whether working in the mirror or with another member of your team, you can gain experience and confidence to build customer relationships by acting out lead conversations and potential counterarguments before your scheduled consultation.   Looking for some real-life sales strategies? Watch the Solar Objections Throwdown on-demand. Create a sense of urgency Urgency is a sales tactic as old as time that motivates people to act on purchases once they learn about a limited offer. For solar installations, you can be as creative as you’d like with your special offers, whether it's a seasonal discount or a “flash sale” encouraging long-standing leads to make a purchase in a certain time period. In addition to clear communication and seamlessly handling customer objections, creating a sense of urgency is one of the most effective strategies to improve your solar sales lead-to-win rate. As such, it's important to be aware of any expiring tax incentives, rebates, and special programs your leads may qualify for and to share this information in your conversations.  Provide social proof Without simply saying, “Hey, everyone else is doing it,” using the power of community is a great way to convert solar sales. Whether that involves pointing out solar success stories in local magazines or connecting leads to speak with one of your already satisfied customers, your sales prospects will be more inclined to believe in your company if there are proven results nearby. You can even include customer reviews and testimonials right in your sales proposals. Sales Mode has custom screens so you can tout your good ratings. Even more, solar’s environmental impact may be all the social proof that some of your customers need to purchase a system. By including your project’s potential carbon offset in your proposals, those motivated to go green can stay compelled to purchase a PV system throughout your entire solar sales funnel.  Click above to learn what else Sales Mode can do. Use effective calls-to-action Lastly, creating effective calls-to-action (CTAs) may be an important component of multiple steps in your solar lead funnel. By clearly defining a path for success as your prospects turn from strangers to leads to sales, you can experiment with different CTAs to measure their effectiveness over time.  Beyond testing taglines like “Get a Free Consultation” vs. “Start the Process for Free,” it may be necessary to revamp or restructure your website so as to make your calls-to-action more clear, accessible, and effective.   Is this an effective CTA? Click above to schedule a personalized demo and let us know. In a recent case study, New York State Solar improved its lead funnel by implementing Lead Capture AI across multiple pages of its website. After six months, the company reported increased lead generation and higher conversion rates with the new call-to-action structure.  In closing...  A working solar sales funnel is essential for generating leads and converting them to customers, yet no two solar sales funnels are quite the same. While every business should have an easy-to-use website and helpful employees ready to talk to customers, developing your own solar sales funnel is an ongoing process that will grow, mature, and refine alongside the success of your company.  By getting to know your prospects and helping them understand precisely how solar can work for their property — you can guide leads through your solar sales funnel with effective personalized attention for every new customer.  Let's close with one more example of a CTA: If you have any questions that haven’t been answered, or would just like additional information or suggestions, schedule a personalized demo — or get the info right now by clicking the chat box at the lower right of the screen. ### Solar industry snapshot: Where we are and where we're going We all have this feeling that the solar industry is growing. And we all know that — given the extensive benefits solar provides for homeowners, the environment, and workers in the industry — it should be growing. But despite tailwinds like the Inflation Reduction Act, there are potential roadblocks: high interest rates, an uncertain economy, and unfavorable policies like California’s NEM 3.0. Where does the solar industry stand? How are installers feeling? What do homeowners want? What does solar’s future look like? We wanted some answers to these questions, and more. And we wanted data behind these answers to help us plan, to help us serve customers better, and ultimately, to help continue driving our mission of a solar future for all. So, we surveyed hundreds of solar installers and homeowners, and used our own information from over 6 million installs in our software. The result is our inaugural Solar Industry Snapshot.  We think installers will find it useful, as well. So, in this blog series we’ll dive into the data from the report to not only get a better idea of where solar is now, but where homeowners and installers want to take it in the future. To set the stage, let’s look at the overall state of the solar industry. Solar installs through the roof (literally) The overall takeaway is that solar continues to grow — rapidly. While in any short term window, the market can very much resemble a “solarcoaster”, in the long term it’s more like a rocketship. And 2022 was very much one of the “up” years. Every single US region showed exceptional growth, according to Aurora’s residential project counts. Installers on roofs With such high demand for residential solar, it’s no surprise that individual solar installers reported strong growth. It starts with overall solar demand: More than 90% of respondents have seen increased interest in solar over the past year. It makes sense, then, that almost 70% of installers in the Snapshot indicated that their company had grown in size over the past year, with less than 5% saying their company had decreased in size. Given the economic uncertainty of the recent past, this is a truly astounding number.  What’s holding solar companies back from even more growth? Finding qualified workers. 17% of solar installers said their biggest challenge was the “struggle to increase employee headcount due to lack of qualified candidates”. That leads us to the solar jobs market as a whole. Spoiler alert, if you’re looking to change careers, the solar industry has a place for you. Click above to check out the entire Solar Industry Snapshot. The solar jobs market: Strong to quite strong Don’t let fossil energy propaganda fool you: Solar contributes substantially to the US economy through job creation and career development, is adding jobs faster than the rest of the economy, and employs more people than most other energy sectors. Add to that the fact that solar offers meaningful jobs with living wages — often with no college degree required — and it’s clear that the solar industry is creating economic opportunity both on an individual level for workers and for the US economy more broadly. According to the Interstate Renewable Energy Council (IREC)’s 2021 National Solar Job Census, all 50 states, Puerto Rico, and Washington DC have experienced solar energy job growth over the last 10 years. With 255,000 United States workers in 2021, careers in renewable energy continue to launch and advance for thousands of Americans every year. Sustaining this growth since the beginning of the decade, new solar energy jobs contributed immensely to the US economy both during and after the COVID-19 pandemic. As Larry Sherwood, President and CEO of IREC stated, “America’s solar industry came back strong from the pandemic to expand the clean energy workforce across all regions of the country.” With less than one-third of industry jobs requiring a bachelor’s degree, solar energy can create a career path in a wide variety of fields including manufacturing, sales, distribution, and construction. When weighed against other energy industry jobs, solar employs twice as many workers as coal, ranking third in total employment behind petroleum and natural gas. Source: National Solar Jobs Census 2021, Interstate Renewable Energy Council (IREC) (https://irecusa.org/programs/solar-jobs-census/) To help new workers succeed in their positions, almost 65% of solar companies surveyed in the 2021 census reported on-the-job training, with 41% offering job shadowing, and nearly 28% maintaining apprenticeship programs. Looking ahead Published in July of 2022, the IREC’s Solar Jobs Census includes insights from the Solar Energy Industries Association (SEIA) that predict the ITC and other incentives will drive nearly 700 GW of new solar capacity installed in the United States by 2032.  Equal to 700,000 MW, 700 GW provides enough capacity to power approximately 121 million homes, using an average of 173 homes per MW in 2022. Source: National Solar Jobs Census 2021, Interstate Renewable Energy Council (IREC) And that was before the Inflation Reduction Act of 2022. Hailed as the largest investment in climate resilience and energy independence in American history, it extended the 30% Investment Tax Credit (ITC) through 2033, and it will likely increase the already strong demand for residential and commercial solar into the next decade.  The solar installers we surveyed seem to agree, with more than 45% saying they have seen increased interest in solar thanks to the IRA, and another 40% expecting to see increased interest in the future.  Click above to get more solar installer insights. How do installers make sure this predicted growth comes true?  What are customers looking for when going solar? How can installers make sure homeowners understand the benefits of solar, especially with the IRA, NEM 3.0, and other policies? These questions, and more, are at the heart of the Solar Industry Snapshot, and this blog series. In our next post we’ll look deeper into what’s driving homeowners to go solar, and what installers can do to cater to those needs. In the meantime, be sure to check out the entire Solar Industry Snapshot to have all the data at your fingertips. Have specific questions you want answered right now? Click the box in the bottom right of the screen to chat with one of our experts, or schedule a quick demo. Featured image by Evgeniy Alyoshin. ### A beginner's guide to solar CRM If you need to manage your marketing efforts, sales funnels, and ongoing client relationships — which is to say, “If you are a company with customers” — then solar CRM (customer relationship management) software is one of the most valuable tools you can invest in.  Designed to keep the status of leads, potential customers, and established clients all in one place, solar CRM software is the backbone of many successful solar businesses, helping marketing managers and sales teams stay organized, sell systems, and grow. The right solar CRM for your business can help you establish an efficient system for lead management, improve your customer communication efforts, and optimize your sales processes to fit your company’s unique operational model.  So to accelerate your solar marketing and explore new opportunities, let’s look at why customer relationship management software is important before outlining what to look for in a CRM solution for your business.  The importance of solar CRM A great CRM solution is one of the secrets behind most growing companies. CRM software provides business owners with the tools they need to operate, grow, and succeed in today’s marketplace, with interfaces and features designed specifically, as the name would suggest, to help manage customer relationships. Built for efficiency, the best solar CRM can create value for both your business and your customers — with easy-to-use software that keeps design data up-to-date and tracks lead progress through your sales funnel.    From marketing your solar brand and collecting lead data to walking customers through the financing and installation process, solar CRM software can help you manage every aspect of your sales cycle.  Along the way, you can track any interactions with your customers, make notes about their status, and set alerts to contact actively interested leads at the time most convenient for them.  Choosing the right solar CRM software Of course, not all solar CRM software is created equal, and what may work for a national installer may not work for a smaller, regional business. To help you find the best solar CRM for your needs, let’s look at the most important aspects of today’s top software.   Key features CRM for solar companies can only work if the software is built to handle the unique demands of the modern photovoltaic industry. Although you don’t necessarily need high-quality design tools built directly into your CRM, being able to manage your customers’ designs, proposals, and contracts all in one place is absolutely vital. Whether you choose to use an industry-specific CRM, or a program designed to accommodate businesses of all types, your software should support both lead and project management. By investing in high-quality solar CRM and solar software, you may also be able to unlock features like reporting, analytics, proposal generation, contract management, and more.  Click above to learn more about how Contract Manager can help your business. Interface and user experience User experience (or UX) will be one of the most critical aspects of your software search.  At its core, CRM software is designed to help you save time on your marketing, sales, and onboarding efforts, so finding a platform that’s easy to use can allow you to accomplish these goals with the least amount of effort, labor, and stress.  Even if you choose the most expensive and advanced software that money can buy, if it is unintuitive or difficult to use, then many of its benefits can be lost.  While evaluating your options, keep in mind that your CRM may be used by many different people within your company, and training employees on new systems can take a considerable amount of time with software that has a large learning curve.  Integrations with external software To work within your existing business operations, solar CRM software must also be able to integrate with the other applications that help you run your business. Industry-leading software like Aurora’s Sales Mode seamlessly integrates with most CRM platforms, allowing you to control every aspect of a potential contract. While time-saving integrations are all well and good, you may also want to remember that simplicity tends to be the solution to many of life's problems. By finding a highly capable CRM, you may be able to eliminate some of the less efficient systems in your operations that are holding back growth with out-of-date software or numerous manual processes.  For easy design integration and end-to-end project management, Aurora and Scoop Solar have teamed up to create a cloud-based CRM solution set up specifically for success in solar sales.  Automations While your design, CRM, sales, and other software works together to move projects forward, you may be ready to scale your solar company with APIs. By finding solar CRM that supports automation (both internal and external), you can accelerate your onboarding processes and cut back on any error-prone or time-intensive manual inefficiencies. https://aurorasolar.com/blog/complex-solar-workflows-apis-can-help/ For example, your solar CRM software may include automation templates for speedy customer screening, verifications, marketing email campaigns, and more. With new automations and ways of doing business evolving constantly, staying up to date with new technologies can help your company retain its competitive edge.  Pricing structure When evaluating your solar CRM options, you are more than likely to stumble upon software with tiered pricing structures. Usually divided into standard and premium options, your subscription level should be determined based on your monthly budget, as well as the needs of your business. Although choosing the most expensive CRM can certainly be a great investment, a basic software package can sometimes work just as well depending on your company’s specific needs.  In many cases, you may be able to “try before you buy” with a free trial of your solar CRM to determine whether or not it is something you would like to integrate within your business.  Customer service Finally, let’s not forget about the company behind the software. While any software company can create a great CRM platform, having a supportive customer service team is what sets great software apart from ordinary apps. Considering that CRMs are designed to help you manage your customer experiences, it's fairly easy to see the importance of after-sales service as you evaluate your software options. By finding a provider with a strong track record for customer service, you can more effectively adapt your CRM to fit the needs of your business and clear up any bugs or misconceptions along the way.  Conclusion Finding the best CRM for your solar business is a great way to keep leads organized, streamline your sales process, and improve aspects of your customer service both before and after a contract is signed.   By integrating your solar CRM software with Aurora, you can seamlessly collect customer information, design new PV systems, and track the status of your potential clients.  Together with Aurora’s intuitive APIs, you can cut down on manual inputs, maintain accurate project data across your company, and accelerate your sales cycle to grow your business and improve customer experiences.  Ready to learn more? Click here to schedule a quick demo, or get the info right now by clicking the chat box at the lower right of the screen Click above to schedule a personalized demo. Featured image by Sara Kurfeß. ### Make the leads come to you: Using calls to action to maximize clicks When it comes to running a solar business, generating leads can be one of the most difficult, and expensive, parts of making a sale. As the residential solar market becomes more and more competitive, it becomes more difficult for individual solar companies to create a niche and capture high-quality leads in their service territory. At the highest level, leads can either be generated by a solar company itself, or they can be bought from a third party; the pros and cons of both options are covered in detail in our Ultimate Guide to Generating Solar Leads. With third-party leads becoming more expensive as more companies are competing for the same leads, smart companies are attempting to generate their own leads to fill the gap — via their website, referrals, or other sources. However, when you're trying to generate leads through a website, you can't just create a simple contact form and expect it to generate results. Homeowners generally want something in return for providing their contact information. That's where Aurora’s Lead Capture AI (LCAI) tool can provide a huge boost. It empowers your company to boost website conversion rates and generate higher-quality leads with an innovative, interactive experience for homeowners. Using the Lead Capture AI widget on your website, homeowners can provide information about their home, answer customized qualification questions, and instantly review a savings estimate and a 3D model of a solar system on their home... and give you their contact information. In this blog series, our goal is to show how LCAI can help you generate high-quality leads, and stand out from the competition — and help current LCAI users optimize your experience and results, so you generate more, higher-quality leads to pass on to sales teams. In this first post, we'll focus on creating highly effective calls to action (CTAs) — any button, banner, or popup on your website that entices a visitor to click and launch the Lead Capture AI widget — a very important first step in turning a website visitor into a qualified lead. Where to place calls to action For any CTAs to be effective, they must be placed in prominent locations on your website’s highest trafficked pages. For this reason, we recommend that you put at least one Lead Capture AI CTA "above the fold" on your website's home page, meaning that it is visible without the visitor needing to scroll down. This ensures that each visitor will see your CTA at least once before navigating to another page, scrolling down, or bouncing from your website altogether. While above the fold is the most obvious location for a call to action, it can also be effective to place secondary CTAs in the middle of a page, or even at the bottom. CTAs in the middle of a page can appeal to visitors who have had their questions answered and are ready to move forward in their buyer’s journey, while CTAs at the bottom of a page can be a logical conclusion to the marketing story that you told on the page. We also recommend sprinkling additional CTAs to open Lead Capture AI throughout your site, as a visitor may first want to learn more about your company, educate themselves about solar power, or read testimonials before seeing a system on their home. Finally, your website’s footer can be a powerful location for a call to action, because it will appear on every page while also being less obtrusive than your other CTAs.  As you can see, there are plenty of options for placing CTAs, and no one spot will be ideal for every website. As will be the theme throughout this blog series, the most important takeaway is that you should try a few different options and track the results! Customizing colors and styles After choosing where you want to place a CTA, the next step is to decide on the colors and styles you want to use. For the most part, you'll want to choose fonts and colors that are consistent with your brand, while also keeping the CTA pronounced and distinct from other aspects of your website. There are four main options for CTA styles, and you can find instructions on how to implement them in our publicly available Lead Capture AI Documentation. These four options are: buttons, banners (at the top or bottom of a page), pop ups (in the bottom left or bottom right of a page), and page sections. A page section uses the entire width of the page and includes a button ("Get Started" here) that launches LCAI. For all four of these pre-built options, you can easily customize fonts, colors, and more to match your site styles. You can also build fully-custom CTAs that will run the javascript required to launch LCAI from anywhere on your website. Choosing the right copy Now that you’ve decided where your CTA will be placed and what it will look like, it's time to finalize what is perhaps the most important part — the copy!  In general, calls to action should be short, clear, and powerful. An effective CTA includes an action verb that makes it very easy for a visitor to understand what will happen when they click. If you don't provide a clear next step, visitors are more likely to leave a page without taking the desired action, which means they won't become a qualified lead. Want to see how a real customer did it? Click above to get the details. Another powerful technique for CTAs is to include “no-obligation statements,” which make it clear that there's no cost or commitment involved in clicking on the CTA. No-obligation statements include words like “free” or “no-risk.”  Still, this leaves many options for copy for a call to action that will launch LCAI. As with any marketing initiative, it will be well worth the time to track CTA performance over time and tweak the copy as necessary. Here are some examples that have worked well for Aurora’s customers: See solar on your home See how much you could save Get an instant savings estimate Get a free savings estimate Build your system for free After deciding on the copy, your calls to action should be ready to go live on your website! In the next post in this series, we'll discuss how you can customize the actual Lead Capture AI experience for visitors who've clicked on a CTA.  Have a question about Lead Capture AI that wasn’t answered here? Schedule a personalized demo, or get the info right now by clicking the chat box at the lower right of the screen. Check out the other blogs in this series here: This post — Make the leads come to you: Using calls to action to maximize clicks Get solar leads hooked with Lead Capture AI customizations Get more solar leads using Lead Capture AI, analytics, and ads Qualify solar leads quickly and easily with Lead Capture AI and the Leads API ### 3 difficult battery storage objections and how to overcome them Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what's next for battery storage and VPPs, to how AI is affecting the industry, and more. Register Now If you've ever struggled with a potential customer's objections around buying battery storage, you’re not alone. Although battery storage can deliver great value to many homeowners, some still need extra convincing before they feel comfortable adding a battery storage solution to their solar install. In this post, we’ll cover three of the most common battery storage objections — and provide some strategies for overcoming them and increasing your battery storage sales.  Storage objection 1: fast ROI A very common hurdle is the conversation about ROI. Some customers are focused on getting a return on their investment (ROI) fast, but in many cases keeping the conversation centered around ROI is a losing battle. Battery storage takes a lot of time to pay itself off — if at all. There is now, however, a huge exception to the rule in California under the new Net Billing Tariff (aka NEM 3.0). With NEM 3.0’s revised time-of-use and export rates, battery storage can make real financial sense. In our NEM 3.0 FAQ post, Aurora engineer Andrew Gong addresses the topic: "A battery provides the opportunity to take energy that would have been exported to the grid at a low rate (4-8 cents per kWh) and use it later for self-consumption (30-80 cents per kWh) or export it during times of high grid need (up to 3 dollars per kWh). "There’s no one-size-fits-all design, but right now we think an appropriate strategy is to size the batteries to take up most of your average daily excess kWh (that’s the energy that would be sent to the grid) for the spring and summer months. For example, if the system would send an average of 10 kWh per day to the grid in April, you can pick a battery system that has 8-12 kWh of usable capacity." Click above to learn more about selling solar under NEM 3.0. For those not operating in California, it’s important to ask your customers questions to learn why they’re focused on a fast ROI and exactly what it means to them. Some good questions are: What does fast ROI mean to you? Have you done any research into the ROI of storage? Have you received any quotes from other providers offering ROI? Asking questions like these gives you the opportunity to help them better understand the benefits of battery storage outside of ROI. A good way to approach this is by shifting the conversation towards peace of mind by asking questions like, “What would it cost you if the power went out and you couldn’t work for a few days?”  Storage objection 2: 100% backup Some homeowners are under the impression that they need a battery that can backup 100% of their energy use for several days. This option will likely give them sticker shock when they see the battery capacity required. If you run up against this objection, you can explain that backing up all of their energy usage is expensive and rarely necessary, but how you explain it is very important. Click above to get some more strategies for selling storage. Here's one strategy: 1 — Uncover their needs Dive deeper into your customer’s position on storage by asking them why they think they need 100% backup. Some good questions are: How did you come up with your storage needs so I can better understand which system would be best for you? What’s your ideal budget for storage? Once you better understand why the customer is asking for 100% backup, it’ll be easier to steer them towards a more realistic proposal. 2 — Show them different options If you show your customer what a 100% backup plan will look like, they may change their mind on their own. Start with modeling a system based on what they say they want, then show them several other easy-to-understand options that you can have a conversation around.  Overcome any storage objection with the printable Storage Sales Cheat Sheet. Storage objection 3: high pricing Sure, this is related to ROI, but since it’s perhaps the biggest storage objection of all it deserves its own section. No matter how interested a customer may be in battery storage, the price can often scare them away. When price invariably comes up, there are some options that can help: Financing options and loans If the price of a battery seems too high for your customer, explain that there are several ways to avoid paying in one lump sum. You can tell them about financing programs, leasing options, and any available loans. These include options such as PACE loans, which add the cost of battery storage to their property tax. Tax incentives You can also bring up any available rebates and credits. This is still top of mind with the passage of the Inflation Reduction Act (IRA). Among its biggest benefits is the extension of the Investment Tax Credit for a full 10 years at its original 30% — which has been clarified to absolutely include storage. Leasing battery storage Some solar companies have programs where they lease the battery to the homeowner. The benefits of leasing are very similar to those of leasing a car, or anything else: lower upfront costs, and if the battery gets damaged or stops working, the homeowner isn’t on the hook to replace it out of their own pocket. Here are some good questions to kickstart the pricing conversation: There are financing options that would allow you to make monthly payments. Would you like to hear about them? Are you interested in hearing more about leasing or loan options?  There may also be storage incentives that you qualify for. Have you looked into these? The tools to use Explaining battery storage options is no easy task, especially when it’s on top of explaining an entire solar installation. Having software tools to help present options in the clearest possible way is critical to success.  A tool that lets you model self-consumption and backup is critical, especially considering California's Net Billing Tariff. Walk through the example below to see how Aurora can make presenting both options a snap, and easy for any customer to understand. Insert Text In closing... From California's Net Billing Tariff, to tax incentives, to energy security, battery storage is becoming more popular seemingly every day. But, you still have to sell it.  With these techniques, and the right software to help, you can add a valuable revenue stream to your solar business.  Have more questions? Schedule a quick, no-pressure demo to learn more, or click the chat to the right to get the info right now. ### 5 ways to jumpstart your C&I solar business with tech With decades of foundational groundwork and a boost from the Inflation Reduction Act of 2022, the growth of commercial and industrial (C&I) solar is set to accelerate upward through the end of the decade.  While there are a lot of things helping to drive this growth, including local climate goals, energy storage initiatives, and reduced costs of adoption, advances in digital tools are providing some of the most critical support for C&I solar developers. Using some of the expert insights we learned during The Future of C&I Design and Sales panel at Sunrise 2023, let’s explore five key ways that digitization, software, and technology are accelerating large-scale solar development.  Click above to watch the entire presentation on demand. LIDAR mapping  For years, Aurora has used LIDAR (light detection and ranging) data to accurately pinpoint precise measurements on proposed solar energy building sites. All hosted online, LIDAR mapping allows solar developers to confidently design systems digitally, even before physically visiting a building site.  With coverage in more than 90% of the United States (and growing), Aurora’s 3D modeling with global LIDAR lets users create interactive site designs using real-world data to measure building heights, roof pitches, and obstructions like trees and neighboring buildings.  Together with irradiance and shading data, LIDAR mapping allows installers to quickly project accurate PV system performance for almost any installation.  LIDAR for C&I solar design brings LIDAR into the world of larger-capacity PV arrays. With HelioScope from Aurora, solar developers can use LIDAR mapping in their sales and design project stages.  Click above to learn more about how to optimize your C&I designs with LIDAR. Remote site qualification From the initial meeting, to the next meeting, and the meeting after that, C&I solar projects can take months, and even years, to design and develop. By digitizing tasks like site qualification, C&I solar companies can save an enormous amount of time and money on logistics and transportation, even before a deal is closed.   Of all the process innovations that can help C&I companies streamline their operations, pivoting to remote site qualification can be one of the most effective for efficient project management.   “For commercial projects, we’re making design easier and faster with HelioScope by Aurora — the leading sales and design software for commercial projects. Now available for enterprise customers.”Justin Durack, VP of Product, Aurora Solar HelioScope makes it easy to consider the details of a proposed solar energy project with tools specifically built for installations at scale. Along with other unique project information, HeliScope enables solar companies to remotely collect site data, and qualify a site without a truck roll.  Real-time design optimization New information can come to light at any point in a C&I solar consultation. This means that the ability to adjust a design without project delays can help drive deals forward and outcompete bids from developers with slower response times.  Using HelioScope, you can present multiple system options that showcase the potential project costs and expected PV production of designs optimized for savings, energy security, or other business priorities.  Knowing that investment costs are usually a significant factor in C&I solar development, design changes entered into HelioScope to meet the customer’s budget will instantly be reflected in the project’s expected performance and ROI. API support  In today’s highly technological world, most businesses use multiple software platforms in their digital ecosystem, all of which must coexist and work together to save time on manual processes and maximize the efficiency of project timelines.  At every phase of a project, API integrations can help a solar company optimize its workflows with intelligent automation. Aurora’s APIs allow users to minimize mistakes and data losses associated with manual inputs at every stage of the design, contracting, and development process. “A lot of HelioScope customers use APIs internally to automate data flow between internal applications like Salesforce, Zoho, and other CRM software. Then, there are all kinds of 3rd party applications customers are using HelioScope with too.” Paul Grana, General Manager, HelioScope To make data transfers easier, HelioScope integrates seamlessly with many site design applications and is compatible with several brand-specific API integrations for solar racking. Click above to learn how to create automated processes with APIs. Commercial Modeling Service No matter what tools you use, C&I solar modeling can be incredibly labor-intensive. We’ve all had the problem of generating an accurate site and system design under a strict time deadline. The degree of difficulty increases when you’re juggling multiple projects and tight turnarounds.  HelioScope’s Commercial Modeling Service can help you save time by having a team of qualified experts design your C&I project for you. Instead of always needing a team member to be available for proposal generation or system changes, Aurora’s commercial design services can help you focus on the other aspects of your business, and grow without worrying about project inaccuracies. It also replaces the need to hire and train new personnel for what may be just an especially busy time period. “Commercial design services allow our customers to focus on what they specialize in best, allowing for faster turnaround times from lead to installation.” Amanda Mayo, Manager of Enterprise Customer Success, HelioScope It’s an exciting time for commercial and industrial solar. It’s also a super competitive time. Using digitization, software, and technology in your processes — from sales to design — can give you a leg up, and help you grow your business efficiently. Have more questions? Schedule a quick, personalized demo to learn more. ### Solar inspections 101: A guide to the solar inspection process Whether you are an installer, PV designer, or a renewable energy advocate of any kind, then you are probably well aware of the vigorous solar inspection process for distributed energy resources. Once the installation is complete, you can't just flip a switch and start generating power. To make sure everything is done correctly, to code, and to the permitted plan set, an inspection is typically required before a system is approved to safely generate electricity and supply power to the grid. The inspection process is usually with an official that works for the local AHJ’s building department, and someone that works for the utility, it can also be done by a third-party working on behalf of the AHJ or utility. Failure to meet building and electrical codes can set back an installation timeline and increase a project’s budget with costly change orders. This means passing a solar inspection is vital for the operational efficiency, customer service, and bottom line of PV companies everywhere. Importance of solar inspections The need for an inspection is determined by the AHJ and/or utility where the project is installed. Their goal is to ensure the installation was completed according to the details of the permitted plan set, to ensure it complies with local building codes and interconnection requirements.   Utility inspections are typically a separate function that needs to be coordinated with the utility, though many utilities have adopted remote or digital inspection methods to reduce delays in the field and serve more customers. Once the AHJ and utility have signed off on their inspection(s), the system can be turned on and start generating clean power.  If an inspection fails, the reasons can range from something minor like adding a label to a disconnect switch, to going all the way back to the plan set process to ensure the design complies with AHJ requirements. This means going back through the timely permitting process, and in some cases costly modifications to the system. Once the system is up and running, most inspections afterward would be between the installer and the homeowner, in case something isn’t operating as it should. Solar inspection checklist The solar inspection process is one of the most time-consuming parts of any company’s operations, from design to installation. PV Education 101: A Guide for Solar Installation Professionals shows how to frame solar panel inspection when speaking to your customers about development costs and installation timelines. Click the image to download the full guide in printable form. Every step of the solar inspection process is important to ensure the success of your PV systems. Thankfully, with the right processes and people in place to account for every single detail of new customer installations, solar companies can prepare for solar inspections by following industry standards, local guidelines, and several of the best practices we’ll explore below.  What to do before your solar inspection Before plan set design and permitting, determine the AHJ of your installation. See how Aurora’s AHJ database and identification can help.   Ensure your plans are up to local building, electrical, fire, residential, and wind codes, and utility interconnection requirements. Submit your plans to the AHJ and receive a permit to install the system and any work related to it. Apply for a separate interconnection permit with the electric utility that serves the property. (Some utilities require an approved permit from the AHJ prior to an interconnection application.) Once permits are approved, schedule the installation with the homeowner. Verify the system was installed according to the permitted design, some changes may require re-permitting prior to inspection. Contact the AHJ and utility to coordinate the inspections, this may require the homeowner to be present as well — which will mean coordinating that schedule with them, too.  What happens during the solar inspection? There’s some published examples of what is included in a solar inspection such as SolarAPP+ and California’s solar permitting guidebook. During an onsite solar inspection, systems are evaluated for installation quality, equipment compatibility and compliance to building codes, and ensuring the system was installed as it was permitted. In some parts of the country, a licensed electrician is required to be present during an electrical inspection. Inspectors will often check the installed system to ensure the required Fire Pathways on the plans are accounted for on the roof. This may mean they get on the roof and measure the distances from modules to roof edges.  Sometimes an AHJ requires the contractor to provide access to the system, which means having a ladder set up to get to the roof or attic to inspect the system and attachments. When looking at the solar panels, a building inspector must verify that they are properly installed in accordance with the manufacturer’s specifications based on the local AHJ requirements, environmental factors, and aspects of the type of structure. Beyond the panels, solar inspectors look to make sure all the right sizes and types of equipment are installed in the system. This includes the correct grounding, breaker size, wire gauge and type, conduit size and type, and more. The inspector will also ensure that a properly functioning disconnect means is installed to code in a readily accessible manner so that it can be accessed and the system shut off in the event of an emergency. To pass inspection, buildings must also display the proper safety labels that identify the system parts and features. Important things to consider after the solar inspection Once approved by all parties with “Permission to Operate”, or “PTO”, you can ceremonially “flip the switch” and turn your customer’s renewable energy system on. At this point, you will want to show your customer how to monitor their system performance in order to detect possible issues from damage or part malfunctions. Although inspection approval signals the end of your installation timeline, staying in touch with your customers is a great way to generate positive reviews and even earn new referral business.  Making solar inspections work The best solar inspections and experiences are the ones the homeowner doesn't notice. This means taking selling, plan set designing, and permitting into account from the beginning — and keeping scheduling as tight as possible. There are tools available to make this process as smooth as possible for you and your customers: Automatic AHJ identification: Aurora's Automatic AHJ Identification and Database is now a standard part of Aurora. When a new project is created, Aurora uses the project’s address to identify the Authority Having Jurisdiction (AHJ) and gives easy access to track and reference their requirements. Plan sets: Aurora's Plan Sets Service can deliver permit-ready plan sets, on-demand, in 24 hours or less. Click above to learn more about Aurora's Plan Sets Service. With a streamlined process from design and sales, to permitting approval, Aurora’s tools can reduce some of the time and costs usually associated with producing accurate, detailed, and inspection-ready site designs.   Want to see these features in action? Schedule a quick, personalized demo and we'll walk you through it.  Click above to schedule a personalized demo. Wrapping up The inspection process is a long, but important part of helping your customers go solar. At both the application and construction review stages of your projects, the best way to prepare for any solar inspection is with the knowledge and tools to efficiently design and install systems up to local safety standards.  Aurora’s new Plan Sets Service gives solar businesses the power to create inspection-ready site plans on-demand, anytime. With built-in AHJ requirements on top of our industry-leading PV design software, you can schedule a demo today to see how Aurora Solar can accelerate your solar inspection process and other key business operations. ### What's the deal with fire pathways? Aurora's fire pathways solution explained April 13, 2023 UPDATE: Aurora's Auto Place Fire Pathways feature now lets you automatically place fire pathways with a couple simple clicks. Keep reading, or click here, to learn more. Schedule a quick demo to see it in action. Fire pathways and setbacks are among the most impactful and least understood aspects of designing and selling a solar project. These pathways allow firefighters to access the roof for fire fighting, smoke ventilation, and emergency rescue operations.  There are tens of thousands of Authority Having Jurisdictions (AHJs) across the country, responsible for adopting and enforcing building codes in their respective jurisdictions. Fire pathway requirements are typically outlined in their adopted fire code, or residential code version. Jurisdictions can write and enforce their own building codes, but typically AHJs adopt or make amendments to a version of the model codes from the International Code Council (ICC). For example the “2019 California Fire Code” is based on the “2018 International Fire Code,” with amendments that the State of California deemed necessary to remove or add to the model codes. The ICC releases new model codes every 3 years. Some AHJs adopt the new building codes as soon as they’re released, while others take more than 10 years to adopt them. There are no national rules dictating when new building codes must be adopted, but some states have statewide requirements. Fire pathway and setback requirements for roof-mounted PV systems have had a handful of changes over the years, most notably between the 2015 and 2018 code year versions.  The 2015 requirements were static and essentially required only a 3-foot walkway on the ridge, and a pair of 3-foot wide pathways from the eave to the ridge on any roof with modules on it.  However, the 2018 updates made requirements more dynamic. They allow for modifying the number of fire pathways, ridge width, and placement based on a number of factors, including which faces have modules, roof area covered by modules, type of fire sprinklers and structure, etc. While the codes are more complicated, they allow designers to balance AHJ requirements with homeowner expectations and system optimization. For example, they can place fire pathways on roofs with lower solar access, maximizing the modules on the roofs that get the most sun. Aurora's fire pathways solution We’ve built a new set of tools in Aurora’s Design Mode to provide AHJ and roof coverage information and allow users to easily draw pathways. It's also now possible to have Aurora automatically place fire pathways on a design with Auto Place Fire Pathways. When there are no panels on the roof, Aurora will place the minimum set of pathways required by the international fire code of the project’s AHJ (which is set based on the location). To access the Auto Place Fire Pathways feature, simply click on the Fire Pathways button in the System section of the toolbar. Auto Place Fire Pathways is accessed through the "System" menu. Then select Auto place fire pathways and a box will pop-up prompting you to verify the AHJ and code year, as well as identify whether there are sprinklers on the roof (which could affect pathway requirements). Click "Place fire pathways" to... place fire pathways. When you click Place Fire Pathways the minimum fire pathways needed, based on the code year for the project’s AHJ, will be placed on the design. (Note: Any existing fire pathways will be removed.) Fire pathways placed. If you run Auto Place Fire Pathways after you've placed panels on the roof, Aurora will account for the amount of available space covered by panels when placing the minimum set of pathways. The result will avoid panels whenever possible, but will place pathways over panels when necessary (e.g., if the panel is very close to a ridge). The overlapping panels will turn yellow to make it clear that they should be moved. Panels in yellow indicate that they are obstructing fire pathways. See our Fire Pathways Helpdesk article for more details. Of course, designers are also able to quickly draw fire pathways and design a system that is permit-ready. These new fire pathways are also included in the DXF file downloaded from Aurora to enable more efficient post-sale plan set design and engineering work in a CAD program, or as part of the package provided by Aurora’s Plan Sets Service. Continued focus We're not stopping with this new feature set, though. We’re working on a number of automated solutions to support multiple user needs, including the needs of non-technical users. Below, we've pulled together some of the most common questions we've heard about our Fire Pathways functionality so far. If you have specific questions about how fire pathways work, please reach out and schedule a no-pressure demo. Fire pathways FAQs I’ve created a project and the AHJ database states they follow the 2018 codes, what fire pathways need to be included? This phase of the fire pathways feature relies on the Design Mode user having some understanding of the building codes, and how they apply based on the project being designed. The more the Fire Pathway and AHJ Database features are used by your team, the easier it will be to know what is needed in the design. Can I draw fire pathways not attached to a roof edge? Yes, fire pathways can be placed anywhere on the roof. So in a scenario where you need a fire pathway in the middle of a roof or over the load bearing wall (as, for example, the City of Los Angeles requires), you can place them accordingly. Does this feature work with Sales Mode? This feature is currently only available in Design Mode, but we’re working on automated solutions for Sales Mode. Do I still need to enter in “setbacks” information in my Aurora settings?  If you want to set auto-applied setbacks from roof edges, and obstructions on every design, you’ll need to enter those. Many of our customers use that feature for installation space and safety buffers. If modules are overlapping a fire pathway, how will I know? When modules overlap a fire pathway, they will turn yellow; if they overlap other modules or obstructions they will turn red. Have a question that wasn't answered here? Schedule a personalized demo. ### 100% clean energy for California: What SB 100 means for solar — UPDATED It's been almost five years since then-Governor Brown signed SB 100 back in September 2018. And while California remains committed to achieving 100% clean (carbon-free) energy by 2045, a lot has changed since then. Recent developments have significantly impacted the state's transition to renewables within the retail electricity sector. The implementation of NEM 3.0, i.e. the Net Billing Tariff, the extension of the Investment Tax Credit (ITC) under the Inflation Reduction Act (IRA), and the 2021 Joint Agency Report on Achieving 100% Clean Electricity in California are just a few of the major developments that have occurred since SB 100 was first signed. These events highlight the state's continued commitment to renewable energy and its efforts to accelerate the transition to a clean energy future. Back in 2019, we had Bernadette Del Chiaro, Executive Director of the California Solar & Storage Association (CALSSA) and Ken Rider, Chief of Staff to Chair Hochschild and Senior Electrical Engineer at the California Energy Commission (CEC), discuss the issue in a webinar. The goal, at that time, was to help us figure out where solar, specifically distributed solar, fit into California’s new 100% clean energy commitment. While it was now over three years ago, the discussion covered a lot of ground, including projected market size, a needed workforce, SB 100 planning, storage, NEM, decarbonization, wildfires, and many unknowns.  Of course, a lot has changed since then. Continue reading for updated takeaways based on the latest information we have. It’s 100% clean energy, not 100% renewable energy Solar and other renewable energy sources have a clear role in SB 100 through 2030. Beyond that, it’s unclear. Notice that the first two targets are for renewable energy, and the last one is 100% clean energy. So what does clean energy or carbon-free sources mean for SB 100? That still has to be determined. Oil, coal, and natural gas are excluded, but everything else is fair game right now, including large hydro and nuclear. RPS are targets for electricity retail sellers such as publicly- and investor-owned utilities, community choice aggregators, and electric service providers to meet. Which means, SB 100 doesn’t directly apply to distributed solar. As Bernadette aptly stated, “Distributed solar does not yet have a grand policy mandate or target,” but distributed solar does play a major role in a number of other ways — more on this later. Overarching strategy is a push towards electrification Before the release of the 2021 Joint Agency Report on Achieving 100% Clean Electricity in California, the state's pathway to 100% clean energy was marked by uncertainties and unknowns. The California Energy Commission (CEC) was tasked with examining different scenarios for the state to reach its goals, with affordability and reliability in mind. Key policies were identified, including the electrification of buildings and transportation, electric vehicles, building decarbonization, and offshore wind. However, the exact roadmap to achieving 100% clean energy was unclear. The 2021 Joint Agency Report on Achieving 100% Clean Electricity in California outlines a detailed plan to achieve the state's goal of 100% clean electricity by 2045. This plan includes a combination of renewable energy sources, energy storage, demand response, grid modernization, and interregional transmission, which are all essential components of California's transition to a cleaner, more sustainable energy future. The report emphasizes the importance of deploying renewable energy sources like solar, wind, and geothermal, increasing the use of energy storage and demand response technologies, and upgrading the state's grid infrastructure to support the growth of renewable energy. By implementing these strategies, California can accelerate the adoption of renewable energy and achieve its ambitious goal of 100% clean electricity. Further powering this transition is the push towards electrification of all things — specifically buildings and transportation. Key policies will include electric vehicles, fuel switching from gas to electric, building decarbonization, vehicle-to-grid integration, energy storage, offshore wind, and supporting the growth of established renewable energy technologies. Ken shared that over the previous decade California’s electricity demand has been mostly flat. This major shift towards electrification will significantly increase demand — by as much as 50%. This could mean more demand for distributed solar and solar in general, and it also presents business opportunities for solar and storage professionals. Help your customers get the most out of their PV system Both Bernadette and Ken suggested there’s a big business opportunity for solar and storage professionals. Incentive programs are in the works to help consumers fuel switch. You can help your customers get the most out of their rooftop solar by planning holistically and viewing their PV installation as one component of a larger system. Think about what’s under the roof. What other services can you provide to make the property as energy efficient as possible?  For example, NEM 3.0, the ITC (and the larger IRA) are driving the adoption of solar-plus-storage systems in California. NEM 3.0 NEM 3.0 changes the compensation rate for excess energy from solar systems. Specifically, it’s notable that the export rates are substantially lower than retail rates during the hours when PV systems are the most productive (10am – 3pm).  Self consumed energy is still just as valuable as it was previously, or perhaps even more so than before due to recent rate hikes. However, exported energy is not particularly valuable unless you can export to the grid between 4pm and 7pm during summer months. Unfortunately, the sun goes down around that time so exports are limited. The heatmap below shows the rates for SDG&E weekdays throughout the year. We can see that compensation exceeds the retail rate only during August, September, and October late afternoon hours. Home battery systems are one way of storing energy generated during those most productive hours — energy that would normally be sent to the grid for a low value — and then using it when retail rates are highest, or exporting it to the grid to get maximum value.  The ITC The ITC provides tax incentives for solar energy systems with battery storage, as long as the battery is charged by the solar panels and used for backup power or to offset energy consumption. The Inflation Reduction Act (IRA) signed into law in September 2022 extends the ITC at 30% through 2032 (as opposed to letting the program expire in 2024). As a solar and storage professional, you can help your customers take advantage of these policies by planning holistically and offering services that make the property as energy-efficient as possible. Tip: Battery storage continues to gain traction, and with NEM 3.0, battery self-consumption is increasingly interesting for homeowners. See how you can model battery self-consumption for your prospects. Click above to learn more about how to model battery self-consumption in Aurora. How to keep distributed solar growing Back in 2019, Bernadette emphasized the importance of maintaining favorable policies for distributed solar, including net energy metering (NEM) and the Solar Investment Tax Credit (ITC). At the time, she was prescient in her warning about staying vigilant on NEM and the ITC. While the solar industry didn't get everything we wanted in those two policies, through the hard work of people like Bernadette — and dedicated installers around the state — net energy metering still exists in California, and the ITC is back to 30%. The distributed solar market remains subject to market forces and other potential policy changes, though. That means it’s important for installers to continue to innovate, and show customers that solar is still a great investment, even under NEM 3.0, even with high interest rates.  Here are some more resources to help: The NEM 3.0 Resource Center: Get the latest info, answers to FAQs, and much more through this constantly updated resource. Selling solar in times of high interest rates: High interest rates don’t mean solar isn’t a great investment. Get advice on how to sell in these uncertain times. The solar storage basics: You can’t sell battery storage if you don’t know the details. Learn what you need to know. Have more questions? Schedule a quick, no-pressure demo to see how Aurora can help your business. Please note that the views explored from this webinar are those of the panelists, and do not necessarily reflect the views of Aurora Solar. FAQs What is California SB100? Senate Bill (SB) 100 requires that all retail electricity sold must come from renewable resources and zero-carbon resources by 2045. SB100 also updates California's Renewables Portfolio Standard, requiring renewables to provide at least 60 percent of the state’s electricity by 2030. The bill authorized the Energy Commission, Public Utilities Commission, and Air Resources Board to use their existing programs to achieve the legislation’s goals, and requires them to publish a joint report in 2025 and one every four years after.  When was SB 100 passed? California governor Jerry Brown signed SB100 into law in 2018. What are SB 100's requirements? Renewable and zero-carbon resources to supply 100 percent of California electric retail sales by 2045. By 2030, at least 60 percent of California electricity must come from renewable sources like wind and solar. Authorizes the Energy Commission, Public Utilities Commission, and Air Resources Board to use existing programs to reach 100 percent zero-carbon energy goals.  A joint agency report is to be published every four years after 2021. What is Senate Bill 100 California exemption? SB100 includes some language waiving certain compliance requirements for state utilities in certain circumstances. For example, if meeting a requirement of the bill is not technically feasible or too expensive.  What is 100 percent clean energy? In California’s case, clean energy refers to electricity that comes from any zero-carbon source that does not pollute the atmosphere when used. SB100 identifies the following as clean energy sources: Solar Wind Nuclear Geothermal Biomass Small hydro Renewable methane Ocean wave or thermal Fuel cells Clean energy is not necessarily renewable energy (such as nuclear, which — though zero carbon — comes from a non-renewable resource).  Does California run on 100% renewable energy? California does not run completely on renewable energy. In 2021, California got almost 35% of its electricity from renewable energy sources, and nearly half of its total power comes from zero-carbon sources. There are now times, however, when the state does, in fact, run on 100% renewable energy.  ### California Net Billing Tariff (NEM 3.0): frequently asked questions California’s Net Billing Tariff (NEM 3.0) takes effect for all solar systems applied for after April 14, 2023. This has naturally led to many questions from potential solar customers and installers alike. In this blog we’ll answer some of the most common ones we’ve heard as California gets ready for this change. For more information, visit our NEM 3.0 Resource Center and read our previous pieces on the Net Billing Tariff: Explaining and modeling California’s Net Billing Tariff (NEM 3.0) Should your PV systems face west with California’s Net Billing Tariff (NEM 3.0) rules We also have a full webinar on the topic, How to sell solar in 2023 despite NEM 3.0, conducted with Solar Power World, that has more information. NEM 3.0 Applicability, Timing, and Rules If the customer isn’t using one of the big 3 inverter-owned-utilities, are they affected by NEM 3.0 rules? NEM 3.0 rules apply specifically to customers with PG&E, SCE, or SDG&E as their utility. Customers of other regional or municipal utilities have different net metering rules. If a customer signs up for solar shortly after the April 14, 2023 deadline, how are they billed initially? The utilities do not have the NEM 3.0 billing system set up yet. As a result, customers who enroll in NEM 3.0 will initially be billed using NEM 2.0 rules (credited nearly at retail rate, annual billing, and can pick any TOU schedule), and will be automatically switched to NEM 3.0 rules when the utilities finish building the new billing system. This process may take several months to a year, so customers could possibly take advantage of a summer of production and credits.  Make sure customers are aware of a possible true-up when they are switched — this could result in a big surprise bill when the billing process updates. What are the required electrification rates for NEM 3.0? NEM 3.0 customers are required to enroll in a TOU rate that has a big difference between on-peak and off-peak costs. These rates encourage customers to conserve energy when the grid is highly strained and are more aligned with actual grid costs than flat rates, tiered rates, and the standard TOU rates. Right now, the available electrification rates are E-ELEC for PG&E, TOU-D-PRIME for SCE, and EV-TOU-5 for SDG&E. We expect more rates to be added in the future. Note that these rates all feature a fixed monthly fee of about $15 per month, instead of a $10/month minimum fee. Does NEM 3.0 have a solar tax or a solar-only fee? No, the final NEM 3.0 rules do not feature a solar tax or $8/kW/month cost. NEM 3.0 customers will have a fixed monthly fee of around $15/month as part of the electrification rates, the same as non-solar customers. Do NEM 3.0 bill credits roll over? Credits for exported energy (including battery exports to the grid) are carried over from month to month. They do expire at the end of a true-up period, which defaults to the anniversary of the PTO date. Customers may make a one-time election to update the true-up month, and we expect that March or April will be the best time. However, we don’t expect customers to accrue a substantial amount of credits unless they are discharging a battery to the grid during the summer, so this may not matter much. Does Aurora model NEM 3.0? Aurora can model NEM 3.0 rules. To quote with NEM 3.0 rates, you have to select the applicable NEM 3.0 rate in the post-solar utility rate field in Sales Mode or Design Mode. You can always verify that you’ve selected a NEM 3.0 rate by checking bill savings for a 100% annual energy offset system — bill savings will be in the 50%-60% range instead of a typical 90% in NEM 2.0 System Sizing and Orientation What is the best system size and orientation for a NEM 3.0 solar-only system? Our calculations indicate that a southwest facing system is the best option in NEM 3.0, while south-facing and west-facing systems are nearly as valuable to the homeowner. In terms of energy offset, having a system produce 60-70% of the annual usage minimizes the homeowner’s payback period, although they will still have to pay some balance to the utility each month. https://aurorasolar.com/blog/should-your-pv-systems-face-west-with-californias-net-billing-tariff-nem-3-0-rules/ What is the payback period for a 100% offset system? What about a 70% offset system? We estimated that a south-facing, 100% annual offset system would pay for itself after 9-10 years, while a 70% annual offset system facing southwest would take 7-8 years to pay off. Our estimates were taken using the “All Day” load profile shape in our blog post, so the results will vary across regions and the customer’s end use profile. The system cost is also a major component of the payback period. What happens if a house can only have an east-facing PV system? Our analysis found that an east-facing system would result in 20% less bill savings than a southwest-facing system. The installation will still be valuable for a customer but will take longer to pay off. It’s analogous to a shaded system with 80% SAP — it’s ok to install but you should have a conversation with the customer. Be cautious though, as increasing the system size for an east-facing system can’t make up the bill savings in the same way that adding panels to a shaded system makes up for reduced production. The added panels will mostly send energy to the grid, with a low value. Do I need to have a battery for NEM 3.0? No, a battery is not required for NEM 3.0 customers. A battery may provide more bill savings and pay for itself if operated correctly, but even a 100% energy offset solar-only system will bring value to a customer. Payback periods of 10 years or greater are typical in nearly every other market in the US. How do I size a solar-plus-storage system? A battery provides the opportunity to take energy that would have been exported to the grid at a low rate (4-8 cents per kWh) and use it later for self-consumption (30-80 cents per kWh) or export it during times of high grid need (up to 3 dollars per kWh). There’s no one-size-fits-all design, but right now we think an appropriate strategy is to size the batteries to take up most of your average daily excess kWh (that’s the energy that would be sent to the grid) for the spring and summer months. For example, if the system would send an average of 10 kWh per day to the grid in April, you can pick a battery system that has 8-12 kWh of usable capacity. Ultimately, a battery design is going to require conversations with the homeowner about what they want and how much they’re willing to pay. Is a battery worth it? You can test out the benefits of battery sizing with Aurora’s storage self-consumption feature. A battery will result in greater bill savings, but depending on the cost of the battery system, add-on components, and interest-rate buy-down cost increases, the cost to finance the battery add-on may be too great. We recommend comparing the solar-only and the solar+battery systems in the app to see what is best for the customer. Click above to learn more about Aurora's self-consumption beta feature. Interval Data What is Green Button data? Green Button data or interval data is a file that can be downloaded from a customer’s account on a utility website, containing hourly or 15-minute consumption data from that customer’s meter for the last year.  Why should I use Green Button data? Green Button data provides a better picture of the customer’s home energy usage and will give a more nuanced view of the customer’s future bills.  To learn more about how NEM 3.0 affects your business and customers, visit our NEM 3.0 Resource Center. ### Go from "No thanks," to "Where do I sign," with solar sales proposal customizations Solar salespeople have a double challenge. You have to convince potential customers to buy solar, of course. But, you also have to convince them to buy from you. And as the industry continues to grow, the competition among solar companies is only getting tougher.  One of the best opportunities you have to set your company apart is your sales proposal. And a generic sales proposal no longer cuts it — installers simply must address the unique needs of the specific homeowner in their proposal or they risk drowning in the sea of competitors.  But, how do you customize your proposal to each customer’s specific needs, while also telling your company's story, explaining complex topics, and even seamlessly upselling additional products? In our webinar, How to perfect your sales proposals with proven, deal-closing customizations, we looked at how Sales Mode’s customization features can help you tell your company’s story effectively, without the time-consuming setup.  Click above to get the full webinar. Here are four tips from the webinar for customizing your solar sales proposals to help boost your close rate.  Focus on the customer's motivations Understanding why your customer is considering solar is essential to customizing your proposal. Some may be motivated by saving money, while others may prioritize environmental benefits or energy independence.  Make sure to do your research so you can highlight the specific benefits that align with each customer's motivations. And if you learn something new about a customer’s motivations or concerns during your sales pitch, make sure you're ready to pivot to show them exactly how you can help. Is your customer cost conscious? Be ready to highlight savings. Highlight what makes your company unique To differentiate yourself from competitors, take the time to highlight what makes your company stand out. This could be your superior products, warranties, exclusive partnerships, awards and accolades, customer service, or your unique value proposition. By showcasing your strengths and unique selling points, you can build trust and increase the likelihood of closing the deal. Going solar is a big decision, and homeowners need to know they can rely on you and trust your company to have their best interest at heart.  Let customers know why you're the best. Include compelling visuals A picture is worth a thousand words, and visuals are powerful tools in solar sales. A well-designed proposal can significantly enhance the customer experience and increase engagement with your pitch. Incorporating images of recent installations, showcasing new products in a video format, or featuring customer testimonials can add depth and credibility to your proposal. And using full-page diagrams or illustrations can provide a visually pleasing and easy-to-understand representation of your offerings.  A good visual can make all the difference. Keep it simple and clear While it's important to include all the relevant information in your proposal, it's also important to keep it simple and easy to understand. Avoid using technical jargon or complex terms that could confuse the customer. Instead, include customized visualizations, educational diagrams, and other information that aligns with the homeowners motivations — and that explains the benefits of solar in an easy-to-digest way. In some cases, an educational video may be the perfect addition to your proposal, and in other cases, the customer may just need to see a gallery of aesthetically pleasing installations to feel comfortable taking the leap. To learn more about these customization options, and others, watch the full webinar — or listen to it while on your way to your next appointment. You never know what proposal will make the difference between “No thanks,” and “Where do I sign?” Click above to get the full webinar. Want to learn more? Reach out for a quick, no-pressure demo. ### Should your PV systems face west with California’s Net Billing Tariff (NEM 3.0) rules? This blog is the second in a series looking at considerations you should take when designing solar PV systems for California’s new Net Billing Tariff (NBT), also commonly referred to as NEM 3.0. In this article, we will take a look at considerations for system orientation and system size to help maximize the benefit of a new PV system. For additional information, we suggest taking a look at the previous NEM 3.0 article describing the billing process and our article that covers tilt and orientation factors. Getting started — looking at where PV energy goes In a solar-only system (one without an attached battery), the electricity produced by the PV panels is either used immediately at the property (self consumption), or it can be sent out to the grid (exported). In addition to this distinction, we also need to focus on the time of day when the energy is produced, designating the production as either being “on peak” during the hours of 4 pm - 9 pm when electricity is the most expensive, or “off peak” for all other hours. The plots below show a familiar shading if you read the previous article, with (a) showing a production and consumption profile for a Los Angeles-area house with a south-facing PV system, (b) showing shading based on whether the production is on-peak or not and whether that energy is self consumed or exported, and (c) showing a breakdown of those energy totals in terms of kWh and bill savings.  You can see in chart (c) that about 90% of energy is produced during off-peak hours, but the key for residential solar is the monetary value of that energy. Our previous post discussed how self consumed energy was more valuable than exported energy, and you can see that here: Even though on-peak, self-consumed energy makes up only 7.3% of all of the PV production in the above example, it produces 25.4% of the value of the system to the owner because that energy is worth a whopping 55 ¢/kWh. In contrast, exported energy during off-peak hours is only worth 8 ¢/kWh. Off-peak self consumption also pulls its weight, accounting for about 50% of the value from 36% of the production. The table below provides a detailed breakdown of the energy and its value. This table shows a Los Angeles area example, south-facing PV system, with 100% energy offset. Changing the orientation The example above applies only to a south-facing system, and the common rule-of-thumb in the solar industry is that you can maximize the energy output by orienting your system towards the equator and having a tilt slightly less than latitude (180 degrees azimuth, 20 degrees tilt in the above case). However, as we see in the example above, not much of that energy is produced during the peak energy hours. Let’s take a look at what happens if the system has a non-south orientation. The animation below shows the same info as chart (b), but over a range of orientations instead of just the south-facing one. You can see that east-facing systems have a relatively low maximum output and very little energy produced during peak hours, that south-facing systems have a higher maximum output, and then shifting west from there provides more energy during on-peak hours but less energy overall. Converting the areas under the curve into bars representing energy and savings like in chart (c) above, you can see that the maximum production occurs for a system that faces just slightly west of south (morning clouds tend to reduce production when the sun is to the east), but the maximum bill savings is much further west, at about 230 degrees azimuth. This indicates that a southwest facing system is the best financial option for a Los Angeles area system that offsets 100% of the homeowner’s energy usage. Gauging designs across the state Reviewing orientation for 100% offset systems We repeated the analysis we did for the Los Angeles area at other locations across California, and found that the same concept holds true across the state — production is greatest for systems facing south, but under NEM 3.0 the ideal orientation is southwest to maximize bill savings. It’s also important to note that south-facing and west-facing systems are still perfectly fine — southwest only benefits the customer about 5% more compared to due south or due west. However, be careful with east-facing systems, as these yield 20% less bill savings than the southwest option. What about smaller systems? Our above analysis is for systems that have 100% energy offset on an annual basis. However, given the low value of exports to the grid, you can design a system with a smaller annual offset, which in turn has a lower proportion of exported energy, resulting in a greater value per kWh and a shorter payback time. The table below shows the results for the Sacramento area, but all regions have similar trends — the orientation stays close to southwest regardless of system size, and the ideal system size based on payback period is around 60% annual energy offset. In contrast, the sweet spot for a NEM 2.0 system was facing south (190 degrees azimuth) at 100% system offset. Under the NEM 3.0 rules, larger systems still have a reasonable payback period (and may have a greater net present value) but it will take longer. Payback period is presented as a simple payback period — actual payback times will likely be lower when accounting for rate escalation. We also assume that projects with a smaller system size have a greater price per watt, since fixed costs don’t scale down for smaller systems. What about different load profile shapes? Another important consideration in PV system design for NEM 3.0 is the customer’s load profile. In general, having PV production align with consumption will result in more self consumption of energy, which is more valuable.  We repeated our analysis using different typical load shapes, representing a morning-heavy, evening-heavy, and an EV-charging case in addition to the “all day” case used above. As shown below, the ideal azimuth is indeed shifted, but only slightly — a morning system is better off with a SW facing system, and evening-heavy is 10 degrees further west. So in terms of design, there’s a small consideration with orientation but it’s not going to drastically change your outcome under typical load profile shapes. However, it's important to note that the load profile and PV orientation (and resulting self consumption of PV energy) plays a big role in bill savings. All of these generic profiles have roughly the same pre-solar bill, but the savings differ by up to $50/month. All production profiles scaled to offset 100% of annual usage. Conclusions Wrapping up, we see that a southwest-facing system provides the most value to a customer under the NEM 3.0 rules, although south-facing and west-facing designs still fare well. It’s important to be able to iterate through different designs using tools that can model the load profiles, specific production profiles, and NEM 3.0 rules to deliver an accurate design to your clients. This post also only touches on solar-only systems. To learn more about selling battery storage under NEM 3, see our post on How to educate homeowners on battery storage under NEM 3.0. ### Getting started with solar permitting It’s no secret that the demand for solar is growing rapidly, thanks to years of decreasing costs, the extension of the solar investment tax credit (ITC) in the Inflation Reduction Act of 2022, and factors like energy independence, and a solid ROI. As the solar market evolves, the permitting processes for residential and small-scale commercial solar have taken many forms and continue to adapt and change.  Staying up to date with, and even ahead of, building codes and permitting processes and requirements is a key element of staying competitive and delivering value to customers in this market. In this guide to solar permitting, we’ll look at this important, and oftentimes intimidating, process.  What is solar permitting? Permitting is a critical step to most construction projects in the United States, and solar installations are just a small part of the overall permitting landscape. Authority Having Jurisdictions (AHJs) are responsible for implementing and enforcing building standards and practices. They do this through the permitting and inspection process. Contractors are typically licensed through the state and are required to know and comply with each AHJ’s requirements for installing a solar project within that AHJ’s purview. A contractor that sells and installs a system without obtaining a permit can face fines, removal of the system and remediation of the home, and having their license revoked.  Solar permitting is essentially divided into three main steps:  Permit application and approval, where a contractor outlines the project details and work they’ll perform to install the systemInspection and approval, where the AHJ visually inspects the system to ensure it was installed as designed and permitted, and is safe to operateInterconnection and permission to operate, often referred to as “PTO”, where the contractor has to provide the system details to the utility that manages the grid the system will be connected to. This is typically a separate process from permitting and inspection, although some AHJs are also municipal utilities. Permitting requirements can differ considerably from AHJ to AHJ. Some states have statewide building code adoption, but the building codes leave a lot of room for interpretation by the building and fire officials of each AHJ. The building codes also vary by factors based on the scope of work. For example a ground mounted solar system will have different requirements than a system mounted on an existing roof. This means plan set designing and permitting can be one of the most time-consuming steps of the customer experience. You made the sale, it's time to get started on permitting. The time it takes to get a solar system permit approved can vary from instantaneous to months, so doing everything you can on your end to make the process as efficient as possible is critical — both to begin construction in a timely way, and to connect the system to the electrical grid quickly when the install is complete.Initiatives such as the SolarAPP aim to modernize the solar permitting process for local governments by helping them to expedite approvals and lower administrative costs. Why do I need to get a permit for solar installations? Without permitting and inspection, solar systems could be installed in a way that poses a safety risk to homeowners and anyone that may come in contact with the system. Permits are required for most construction related work, from water heaters to roofing, with different building codes and standards applying to their respective areas so that homes and buildings are as safe as possible. Solar is no exception. New to the solar industry? Download Aurora Solar’s free guide, PV Education 101: A Guide for Solar Installation Professionals.  Click the image to download the full guide in printable form. Where do I get solar installation permits? Grid-tied solar permits must be obtained from two primary parties: the local authority having jurisdiction (AHJ) and the electric utility that serves the property. Depending on where an installation is located and the type of project, the local building AHJ may be the town, city, county, state, or federal government. The boundaries of the Houston AHJ (courtesy of Sunspec Alliance). Before applying for a permit, the contractor needs to identify the AHJ and the building requirements to follow, and complete a plan set, typically. The plan set is essentially the blueprints for the system to be installed. It will include the project address, customer info, contractor info, component details, electrical and structural calculations, and anything else the AHJ may require.  With the plan set in hand, the contractor needs to know the permitting process the AHJ uses. Many AHJs have adopted online instant permitting and interconnection solutions like SolarAPP+ and Powerclerk or built their own like the City of Los Angeles. Other AHJs will have PDF, or physical, forms to fill out with additional details, many of which are from the plan set and calculations within it.  Many AHJs still require an authorized representative of the contractor to physically go to the AHJ’s building department with the plan set and apply for the permit in person. Do you need a permit for off-grid solar? Although it’s true that you may not need a local utility permit for an off-grid solar installation, you will most likely need a building permit to construct a battery-backed PV system. Off-grid permits are left to the discretion of the local AHJ, and there are many parts of the country where zoning requirements prevent homeowners from completely disconnecting from the grid.  What are the requirements for solar permits? If you’ve been paying attention, you’ll know that solar permit requirements vary tremendously around the country. Installers serving multiple cities and counties (and states) should do their best to familiarize themselves with any variance in local solar permit requirements to keep customer communication accurate and avoid slow-downs during the construction process. Some states, such as California, publish solar permitting guidelines to inform AHJs and installers what needs to be included and checked.   Typically, plan sets must be submitted to make sure they meet local code requirements for building, fire safety, and electrical standards. This includes accurate PV system information such as the components, physical size, and energy capacity, as well as details about the mounting hardware and module placement.  What you need to submit to apply for a permit varies. To zoom in even further past federal, state, and local solar permit requirements, homeowners associations (HOAs) may also have some control over a PV installation. For example, to obtain HOA approval, customers might need to paint electric conduits in certain colors or reconsider panel placement to not face the street. With this said, many states have solar access laws that prevent HOAs from blocking renewable energy installations.  Since approving solar permits manually requires many details to be considered, some states like California are trying to automate the solar permitting process. With faster and even instant approval for professional site designs, solar companies can spend less time waiting for permission to install or connect their customers’ systems to the grid. Steps to get your solar permitting Once you’ve drafted the plan set and the customer has agreed to move forward with an installation, the clock for your project timeline begins ticking. Installers hoping to stick to a reasonable timeline have to begin the solar permitting process as soon as possible.  1. Contact your local authorities for a permit First, you’ll need permission from the AHJ, electric utility, and possibly HOA to build your system. Building codes are typically found online, and businesses can also reach out to their local offices to speak with an actual person over the phone. Solar permitting may be handled by a dedicated office or the existing building department within the city, state, or county government.  Aurora Solar’s AHJ database makes it easy to identify which of the tens of thousands AHJs is the right jurisdiction for your specific solar project. This is done automatically  when the project is created and is linked on the project overview page, and retrievable via API. Aurora Solar’s software will identify the AHJ and provide a reference of the requirements needed to keep in mind for permitting. More than that, it provides a space for team members to enter and store additional AHJ requirements and information to ensure teams are aligned throughout the project lifecycle. Learn more about how to end solar AHJ headaches with Aurora Solar 2. Fill out all necessary forms As you might imagine, solar permits involve a lot of paperwork. While experienced solar installers know what to expect for each AHJ, several forms may be needed to officially submit a project for construction approval. For companies hoping to adhere to project timelines, it’s crucial to complete and submit those forms as quickly as possible. 3. Pay permit fees Along with submitting an application, permit fees must be paid. (Solar installers should include these expenses in their customer contracts.) Permitting fees are typically several hundred dollars, and vary between different utilities and governments. To help curb the costs of solar permitting for both installers and their customers, advocates like the California Energy Commission (CEC) have pushed forward grant funding for online solar permitting. 4. Get approval Once you’ve officially applied for your permits, they will either be approved or rejected by the local AHJ or utility. If rejected, the AHJ will typically provide guidance on what needs to be changed in order to meet local code requirements, so that the design can be revised for resubmission.   5. Install If an application is approved by both the utility and AHJ, installers can begin construction immediately. Solar companies and their customers should work together to establish an expected installation timeline to prepare for the final permitting steps.  6. Go through inspection and final approval from authorities Once a solar system has been installed, a final inspection and permission to operate is required from both the local AHJ and utility. If everything was installed to plan, there should be very few surprises at this step, since both parties will have already approved the system design.  During final inspections, local authorities ensure that the system has been installed properly and is fit for safe operation. Once these final approvals are made, the systems can officially be switched on and begin generating solar electricity. Click above to schedule a personalized demo. FAQs Finally, to cross our t’s and dot our i’s, here are five quick answers to some of the most frequently asked questions about solar permitting.  How long does it take to get a solar permit? It varies across the country, from AHJ to AHJ and even from project to project, but obtaining a solar permit can take anywhere from instant to a few months. While applying for initial building permits involves submitting a plan set, the final inspection and permission to operate typically requires a visual review. THis is typically done in person, but some have adopted virtual inspections with photos or live video from the site,  which must be scheduled ahead of time with local governments and utilities.    Are there different requirements for solar permitting on the federal and state level? Yes, requirements are typically implemented and enforced at the local AHJ level. There aren’t nationwide requirements as to which versions of the building codes an AHJ must follow, though some states do dictate what a local AHJ can follow. Around the country, solar permitting laws may vary for wiring configurations, interconnection methods, disconnecting and metering means, max system sizes, mounting hardware configurations, setback requirements (the amount of room between solar panels and the edge of a roof), panel orientation, aesthetic guidelines, and more.  How much are solar permit fees?  Like all things in residential solar, permitting fees differ in various parts of the country, with some states like Colorado capping the costs for permits to prevent excessive charges from cities, states, and utilities. Residential installations will generally incur a total solar permitting fee of at least $300 but rarely exceed $1,000. What is a DIY solar permit? Some AHJs will have options like an “owner builder” permit application, which is typically only able to be applied for by the owner when they’re also the occupant. For example these typically wouldn’t apply if the owner was a landlord and the building was tenant occupied. If you choose to install your own solar panels, their safety and operation are assessed with the same standards that a professionally installed system is evaluated. In many AHJs, a licensed electrician is required to complete the electrical connection portion of the installation to the grid. DIY solar installation? You still need a permit. Is there a simplified permitting process? Yes, there are many ways to speed up the solar permitting process both on the installer and local government side of the equation. Local governments looking to speed up their solar permitting process can adopt simplified procedures for small commercial and residential installations, and use modern technologies for instant or expedited approvals. If you’re interested in learning more about how Aurora can help with your design and permitting process, schedule a quick demo.   ### Navigating the solarcoaster: Risk and opportunities for solar companies in 2023 The solar industry is no stranger to adversity and challenges — like expiring tax credits, supply issues, or even a global pandemic. It’s been through so many ups and downs through the years that we have a term for it: The solarcoaster. And with the drastic changes in energy policies and the economy in the past years, it looks like 2023 is another year of having to adapt to a new reality — for installers, sales reps, and homeowners. In the webinar, Risk & Opportunities for Solar in 2023, solar experts discuss the current landscape of the industry and share their best strategies for how to navigate the risks and opportunities of solar for the rest of 2023, and beyond. Click above to watch the entire webinar on demand. In this post we’ll explore three of the most significant factors that are shaping the way solar is strategized, pitched, and sold in 2023. We'll dive into each element, providing you with the insights and knowledge you need to stay ahead of the curve. Factor 1: The Inflation Reduction Act (IRA) Risks: Misinformation about benefits Supply unreliability Opportunities: Form partnerships Focus on the value of home projects Grow as an industry The IRA includes an extension of the Investment Tax Credit (ITC), and a return to its original 30%, for homeowners who want to go solar, as well as incentives to help promote the use of electric vehicles and energy storage solutions. These incentives can help offset the cost of purchasing and maintaining electric vehicles, solar panels, and battery storage, making them more affordable for many homeowners. The IRA has something for everyone, from manufacturers to consumers, and the key to being a reputable advisor is knowing and understanding these offerings, says John Sheldon, Director of New Business Capabilities at Renu Energy. Doug Pierce, Director of Sales at Sungage, highlights the importance of focusing on solar as part of a home improvement project that’s tailored to the homeowner’s specific energy needs: “It’s an opportunity for us to really learn and sell more on the value of the home improvement project.” And as the industry continues to grow, forming partnerships and learning from other installers’ strengths can help you stay ahead of the curve and ultimately help grow the industry and your business. Factor 2: Financing Risks: “We’ll wait for better rates” objections Making the high interest rates a bigger deal than necessary Opportunities: Focus on long-term savings vs. short-term savings Educate the homeowner on energy spending Interest rates have gone up on most loans following recent economic changes, and many homeowners may be hesitant to switch to solar in the hopes that rates will decrease. To overcome this objection, the key is to rethink your value proposition. Instead of focusing on monthly payments and short-term savings, consider pivoting to emphasize long-term savings instead. It’s also important to remember that solar markets are different across the country, and some areas have much higher energy prices than others. The value for the homeowner depends, then, on where they live and their energy usage habits. For some, a loan with little to no dealer fees may be what’s needed to close the sale. Others may just need help understanding where their money is going — like utility service and delivery fees — with a simple explanation of the solar alternative.  Not all buyers have the same reasons for going solar, so it’s important to understand what motivates each homeowner. Be curious and help the homeowner find the solution that benefits them the most. Click above to learn more about the 5 types of solar buyer and how to best serve them. Factor 3: NEM 3 Risks: Slower paybacks in California Higher prices in California Opportunities: Lower prices in other states Learn about new technologies NEM 3.0 has been passed in California. While this policy most certainly will have an impact on the solar market in the Golden State, including potentially longer payback periods, other states may benefit from the changes. In California, the expectation is that solar sales will be strong before the April 14 deadline to be grandfathered into NEM 2.0.  “Sales will definitely slow down on the other side of NEM 3.0,” Doug Pierce explains. “And what we’ve seen in other markets is that sales start to ramp back up once battery attachment rates and stuff like that start to happen.”  In addition to NEM 3.0, the solar industry is still experiencing some supply constraints, which is leading to pent-up demand for certain products. This can result in higher prices for the homeowner. https://aurorasolar.com/blog/explaining-and-modeling-californias-net-billing-tariff-nem-3-0/ But it’s not all bad! NEM 3.0 will drive home the importance of battery storage in California. Storage is an economic way to help the homeowner harness the full value of their system by avoiding adding power back to the grid when TOU rates are low. And adding batteries to more systems increases the overall sale price — giving installers an opportunity to level up their revenue on home solar installations. Learning more about new technologies like batteries will help installers succeed in this new solar landscape.  NEM 3.0 can be great for other states If sales decline in California due to NEM 3.0, the supply of modules, inverters, and racking is going to naturally increase. With more products available, they can be used in other states that may currently have supply restraints — and maybe even lead to lower prices there. Education, credibility, and customization  One of the most important roles of a solar installer in 2023 is understanding all the changes that are coming and making sure to offer advice and education to prospective buyers. Each homeowner has unique needs and motivations for wanting to go solar, and it is our responsibility as an industry to expertly guide them in their decision making.  “It’s really important that we, as an industry, do right by the consumer. We are all in this thing together, and making sure that folks are getting what they paid for is just wildly important.”Doug Pierce, Director of Sales, Sungage Make sure to understand your customers’ energy use habits and their goals — and help them optimize their system based on those factors. For example, details like advising a homeowner to run their dishwasher at night instead of during the day, when energy prices are highest, can be the difference between the need for two batteries or three. In a competitive and ever-changing market, being a credible and trustworthy advisor will help you close more sales. As a solar installer, setting the right expectations with the homeowners should be a top priority. Make sure you educate them on the programs they qualify for, what the requirements are, and what their saving profile is going to look like.  Watch the entire webinar to learn more about 2023 solar industry trends, and what they mean for you. Click above to watch the entire webinar on demand. ### Solar Sales Objections Throwdown: "My neighbor went solar and had a bad experience." No matter how successful a solar business is, no matter how detail oriented, no matter what failsafes are in place, someday there’s going to be a project that doesn’t satisfy a customer. That leads us to our next guarantee: Unsatisfied customers always tell others about their bad experience, and at some point you’re going to end up in a room with one of those people, trying to sell them a system. In the fifth and final installment of the 2022 Solar Objections Throwdown, our experts tackle the particularly tricky situation where you’re dealing with a homeowner who has heard a negative review about the solar process.  PV Objection #5: My neighbor had a bad solar experience If you’ve been in the industry long enough, you’ve almost certainly heard some variation of the following complaint: “Our neighbor got solar last year and hates it. Their panels don’t produce enough. Their storage hardly ever works. It seems like a huge hassle for small savings.” This year’s Solar Objections Throwdown panel included:  James Ramos, Founder – Solar YOUniveristy Ashleigh Tatarcyk, Owner – Urban Sol Energy Richard McCoy, Solar Energy Consultant – Rivus Energy Joe Mouhaskheel, Owner – Solar Academy & SolarCo How do they deal with this objection? This is a tough one since you’re indirectly being held responsible for someone else’s project-gone-wrong. It’s not fair, but it’s inevitable.  Solar YOUniveristy’s James Ramos starts off by acknowledging the issue. “Solar is not for everybody… And there are a lot of companies that mislead homeowners into going solar. And those homeowners often get screwed over.” He then pivots to the homeowner’s situation before going in for the close. “But based on your energy savings report here, you are going to save X amount of money. You’re also eligible for a battery storage system to back up your essential needs.  “Solar isn’t cookie-cutter. And unfortunately, with your neighbor, it probably wasn’t the best decision for them to go solar. Every situation is going to be different based on usage and energy needs.” Joe Mouhaskheel of Solar Academy & SolarCon likes to use a blend of humor and leading questions to guide prospects along the sales journey.  “Let’s say a doctor gave a patient the wrong medicine. And that patient was not happy with the result. It didn’t help with the problem they had. It gave them bad side effects. Would the problem be the doctor or the medicine? It would be the doctor, right?  "And it’s the same thing with solar. If you have a situation where your solar consultant sets you up in the wrong way, you could have a bad situation. You could not have electricity — or too much electricity. A tree could cover your panels. A lot of these things could happen.” Once he has the prospect’s attention, Joe focuses on the benefits of moving forward — specifically with his company: “I pride myself on my experience. I don’t just call myself a solar consultant, I call myself a serious solar designer. I understand the electrical. I understand the process. I understand the steps to make sure you get exactly what you were promised. And based on what we have here, you’re actually a top prospect. You’re paying so much money for electricity, and so much sun is hitting your roof. This is going to be a big benefit for you.” He finally closes with proof. “I’ve helped over 700 homeowners go solar. And I have a few in the neighborhood that I can actually refer you to. You can ask them about their experience with me — and what their situation was like when going solar.” Admittedly, not every installer can boast similar numbers. But if you have the reviews and ratings, you should absolutely flex them during the sales process. Urban Sol Energy’s Ashleigh Tatarcyk directly addresses some of the potential reasons the prospect’s neighbor had a bad solar experience. “Your friends probably had a company that didn’t build the system correctly. Or the installer only talked about offsets but not production. They also probably didn’t understand the net metering regulations in their area so that solar could work more efficiently for them — instead of oversizing the system.” Ashleigh then pivots to her company’s bonafides.  “We use tools like Aurora to help us accurately design a system, to be able to see how much sunlight you’re gonna get throughout the year, what the trees are going to do on your house. And that way, we can give you a correct analysis of what type of savings you’re looking at. And if it at all looks good to you, and all those numbers are straightforward and right to the point, would it make sense to look at a solar report and see if it works in your favor?” [Editor’s note: Should Ashleigh receive extra points for the Aurora shoutout?] Rivus Energy’s Richard McCoy employs his trademark approach of honesty by verbalizing the prospect’s worst fears. “I get it. And unfortunately, I’ve heard that too many times. How scary would it be for you to spend $48,000 on a solar system and have someone sit in your living room and make promises about how it will eliminate your utility bill? And not only does it not eliminate your utility bill, but you’re actually paying more on top of that. Plus the system isn’t working. And the company and sales rep aren’t even answering their phones. What a nightmare of a situation.” Richard also then pivots to show that all investments do have risks. “Because these things do happen, my company over the years has paid attention not only to our customers, but also to the industry. We’ve built world-class processes to ensure 48-hour response times on top of our 25-year equipment and workmanship warranty — in addition to our extended warranty. I’d love to be able to say these complicated electrical systems will never fail you. But unfortunately, they do — just like iPhones and BMWs. Nothing is guaranteed to be perfect.” Finally, he also pivots to what his company will do if something should go wrong. “Our reviews, warranties, and ratings can guarantee that we will take care of you if you do have any of these situations. I’m not in a rush to sign you up for solar today and install tomorrow. You can be patient, you can read reviews, and you can talk to our other solar customers in the area. We want to make this the right fit for your family. This thing is going to power your home for the next 40 years… We want to make sure we’re designing the right system for you.” How Aurora can help Does your sales proposal highlight what sets your company apart from the rest? As we can see from the answers above, being able to show what makes your company a reliable partner is a key aspect of dispelling this objection.  To learn how Sales Mode can help you set your business apart, watch our webinar: How to Use Sales Mode Customization to Tell Your Story & Close the Deal. Click above to see how Sales Mode can help you customize your proposals. In closing... We hope you enjoyed this 5-part series on the most common confusions, questions, and myths that installers hear in the field. The Solar Objections Throwdown webinar also includes an insightful audience Q&A at the end, with even more great insights about what it’s like to be a solar installer in 2023 and beyond. To learn more about the other objections and share them with your sales teams, click below:  Solar seems too expensive in these uncertain times With interest rates so high, I won’t be saving much  What if you (or the manufacturer) go out of business  With the Solar ITC extended, what’s the urgency?  Our neighbor had a bad experience with solar Still hungry for more? Download the Solar Sales Objections Handbook to get actionable strategies for 5 more of the most common solar sales objections. Click above to download the full Solar Sales Objections Handbook. See you for the next Throwdown! ### Explaining and modeling California’s Net Billing Tariff (NEM 3.0) With the California's Net Billing Tariff (NBT), commonly referred to as NEM 3.0, going into effect in the coming months, installers and customers have a lot of questions about what it means for them.  In this article, we’ll help explain the Net Billing Tariff — which goes into effect for all systems that are applied for after April 14, 2023 — including a brief explanation of NEM 3.0 and a walkthrough of how the charging and crediting process works.  You can also check Aurora’s NEM 3.0 Resource Center for more information and future updates Electrification rates for solar customers Customers who wish to install solar after the April 14, 2023 NEM 2.0 deadline will enroll in NEM 3.0 and will be required to use an electrification rate instead of a regular time-of-use (TOU) rate. (Check out our older blog post for a refresher on TOU rates). As of January 2023, the available electric rates are: E-ELEC for PG&E customers, TOU-D-PRIME for SCE customers, and EV-TOU-5 for SDG&E customers. Compared with the regular TOU rates, these electrification rates have: Notably higher on-peak charges and lower off-peak charges A fixed charge of $15 per month rather than a minimum fee of $10 They still share a peak rate period of 4pm - 9pm In addition, NBT customers are billed monthly rather than annually like in NEM 2.0. Export rates Export compensation in NEM 3.0 is based on California’s Avoided Cost Calculator (ACC), with a specific export rate for every combination Month, Hour, and Weekday or Weekend. For example, August weekdays from 3 - 4pm will have one value, 4 - 5pm will have a different value, and so on. The export value is lowest in the middle of the day when the grid has plentiful solar energy, and is highest during peak summer demand periods. The heatmap below shows the rates for SDG&E weekdays throughout the year — compensation exceeds retail rate only during August, September, and October late afternoon hours. To compare the TOU rates against the ACC export rates, let’s look just at the month of August. The image below shows the familiar TOU structure for SDG&E EV-TOU-5, compared with the 2023 ACC values: It’s notable that the export rates are substantially lower than retail rates during the hours when PV systems are the most productive (10am - 3pm). To try to keep solar PV systems financially viable for homeowners, customers in PG&E and SCE service territories also receive an adder on top of the ACC rate, between 2.2 and 9 cents depending on location and customer class. If you want to learn a bit about why electricity is so expensive from 4pm - 7pm, check out our blog post on the “duck curve”. The calculation process How do you calculate utility bills with NEM 3.0? It’s a little more complicated, but we will break it down here. To start, you need to have an hourly load profile and hourly PV production estimation. Aurora provides methods for you to estimate or upload a customer’s hourly load profile, and use our design tool and PV simulator to get all of this information The calculation follows these steps: For every hour, look at the customer’s energy usage and hourly production Example 1: Usage: 3.0 kWh. Production: 1.9 kWh between 12pm and 1pm Example 2: Usage: 1.5 kWh. Production: 2.5 kWh between 1pm and 2pm Estimate the amount of energy taken from the grid and sent to the grid. Often you just take the difference of consumption and production, but you can make special assumptions about variations within the hour because the NBT has no netting (in this case, we assume that the load was briefly greater than the PV production sometime between 1pm and 2pm). Example 1: Grid Import: 1.1 kWh. Grid Export 0.0 kWh between 12pm and 1pm Example 2: Grid Import: 0.1 kWh. Grid Export: 1.1 kWh between 1pm and 2pm For energy taken from the grid: look up the cost of electricity for the given hour, and then multiply by the kWh. Example 1: Rate is $0.44/kWh. Charge is $0.484 for the hour starting at 12pm Example 2: Rate is $0.44/kWh. Charge is $0.044 for the hour starting at 1pm For energy sent to the grid: look up the ACC for that hour. Example 2: Export Rate is $0.05/kWh. Credit is $0.055 for the hour starting at 1pm Note that sending energy to the grid in the middle of the day is unfavorable. Buying 1.1 kWh costs 48.4¢, but selling 1.1 kWh only gives you 5.5¢. You then repeat this for all hours in a month. At the end of the month, any credits are applied against the charges, and in the unlikely event any credits are left over they are rolled over to the next month, If that’s a little confusing, we don’t blame you — the rules are very complicated. To help walk through the calculations, here’s an example of one day with charts: Example: One day of charges, offsets, and credits To help explain NEM 3.0 billing, let’s take a look at one day in August, for a SDG&E customer. Looking through the following figure step-by-step can help clear up some confusion about how bills are determined. (a) Shows overlaid consumption and production load profiles for a generic customer in SDG&E territory, for a day in August.  (b) Has the same profile data, but the usage of energy is now shaded in. Blue represents energy purchased from the grid; Green represents self consumption of PV energy to offset loads, and Yellow shows the energy sold to the grid. Since the x-axis is hours and the y-axis is kW, the shaded areas represent the energy in kWh. Chart (c) shows the hourly total kWh in each of three categories. While the billing process takes place continuously, breaking these into hourly totals makes it easier to explain what’s going on. Charts (d), (e), and (f) take the data in chart (c) and show hourly kWh totals of grid usage, self consumption, and exports separately. As expected, there is no grid usage during the middle of the day because the PV system produces more energy than the house needs. Self consumption runs from about 6am until 8pm, and the system sends excess energy to the grid from 9am until 5pm. Charts (g) and (h) show the EV-TOU-5 rate, which represents the cost to buy energy and the savings of self-consumed PV energy ($/kWh). Electricity costs the most from 4pm - 9pm, roughly $0.82/kWh for SDG&E.  Chart (i) shows the hourly ACC export rate for 2023 ($/kWh), which is the credit a customer receives for energy sent to the grid. It’s very low until about 2pm in the afternoon, and is highest from 5pm - 7pm. Grid usage The customer’s grid usage is spread out across on-peak, off-peak, and super-off-peak hours, despite having no grid usage during the middle of the day. Energy usage during the peak 4pm - 9pm hours is the most expensive, while usage between midnight and 6am is exceptionally cheap.  Totals: 16.2 kWh used from the grid, $7.13 of energy charges Self consumption Self consumption is concentrated on off-peak hours, with some usage avoided during peak hours. Avoiding grid usage is very valuable to a California customer after recent rate hikes. While self consumption does not affect the customer’s bill — the customer isn’t charged or credited for this amount of usage because it is self-supplied — it’s important to understand the value of avoiding energy from the grid when designing a PV system. Totals: 17.7 kW of PV energy self-consumed, avoiding $10.66 of energy charges Exports to the grid In this particular example, exports of excess PV energy mostly occur during hours with a low ACC, and only some exports happen during the highest ACC export hours of 4pm - 7pm. You can see above in charts (f) and (i) that the timing of the exported electricity is poorly aligned with the high ACC export hours. Totals: 13.3 kWh exported, earning $1.16 of credits Summary The average cost of 16.2 kWh taken from the grid was 44¢ per kWh, resulting in charges of $7.13 on the day. The value of 13.3 kWh of exported energy is only 8.8¢ per kWh, far below the retail rate, and only results in a $1.16 credit. However, self consumption has a fairly high average value of 57¢ per kWh. This allows the homeowner to avoid $10.66 of electricity charges for the day. In general, self consumption is the most valuable aspect of a PV design with the NBT billing rules. Wrap up Self consumed energy is still just as valuable as it was previously, or perhaps even more so than before due to recent rate hikes.  However, exported energy is not particularly valuable unless you can export to the grid between 4pm and 7pm during summer months. Unfortunately, the sun goes down around that time so exports are limited. Stay tuned for a future post that will examine how to best design a PV system under the NEM 3.0 rules! Energy storage systems are another way of making use of energy that would normally be sent to the grid for a low value. We’ll also be discussing batteries in a future blog post. ### Solar Sales Objections Throwdown: “The ITC has been extended, what’s the rush?” In sales, the goal is to close the deal as soon as possible. This is especially true for big purchases like solar, where delay can lead to cold feet.  Sharing strategies for easing potential customers’ minds and getting them to act is what the Solar Objections Throwdown is all about. In this installment, we examine a potential objection that’s based on something that is actually a huge positive for the solar industry: The extension of the ITC. Click above to watch the entire Throwdown on-demand. In 2022, the Solar Investment Tax Credit (ITC) was extended for 10 years as part of the historic Inflation Reduction Act, and restored to its original 30%. This is great news, but it does remove some of the urgency to go solar right now — which was often a selling point when the ITC was scheduled to step down and eventually go away.  Now that the urgency is gone, and the ITC is here to stay, our panel of experts has a new objection to overcome… Solar Objection #4: With the Solar ITC Extension, where’s the Urgency? Question #4 isn’t one any of us have ever seen before a few months ago: “Now that the ITC is extended, why should I do this now?” This year’s Solar Objections Throwdown panel included:  James Ramos, Founder – Solar YOUniveristy Ashleigh Tatarcyk, Owner – Urban Sol Energy Richard McCoy, Solar Energy Consultant – Rivus Energy Joe Mouhaskheel, Owner – Solar Academy & SolarCo How do they deal with this objection? Joe Mouhaskheel of Solar Academy & SolarCon started off by highlighting how this is a “someday” or “one day” objection that he commonly hears in the field. He starts with a Q&A approach: “So you agree that ‘one day,’ you’re going to go solar?” [Prospect presumably agrees.] “Then why give any more money to the utility than you have to? That money should be paying off your system and paying yourself.” Joe then pivots to a “renting vs. owning” analogy: “Let’s say you’re living in a home and you’re renting. And all you had to do was change that rent to a mortgage at the same payment — or even less. How many months would you wait to move from renting that house to owning it?....  "It’s the same exact situation with your electricity. If you have the opportunity to stop throwing money out the window like you’re renting a home — and put it towards generating your own electricity and paying off the system (so it’s paid off sooner) — and cutting your electric bills to boot. Why wait any longer?" Every month of delay introduces a host of hidden costs, in the form of utility payments and even carbon emissions. And these costs should ultimately factor into the final price of each homeowner’s solar decision. Solar YOUniveristy’s James Ramos expresses some doubt over the objections itself, pointing out: “I’m not 100% sure they’re bought in. If they’re basing their decision strictly on the ITC, knowing it’s been extended for 10 years, there are other things this homeowner may be hung up on…. If they’re saving $50 a month and see all the other values in going solar, then this ITC credit is just an extra kicker.” Based on this thought, James goes with an uncertainty-based approach: “In 2023, the ITC was going to drop to 22%. And in 2024, it was gonna drop to 0% for residential properties…. We just never know what’s gonna happen next year or the following year. Since you’re 100% bought into solar right now, let’s see if you’re pre-qualified. Let’s lock everything in and at least guarantee that you qualify for the 30% federal tax credit.” Urban Sol Energy’s Ashleigh Tatarcyk, starts off by highlighting the positives of the ITC extension — pointing out how it’s a chance for ordinary homeowners to finally get money back from the federal government.  She then answers directly about why now and not later: “If you are looking at solar now, you’re clearly interested. But something is holding you back. So let’s talk about that for a second….  "The tax credit is there. But the thing we don’t know is how stable is the price of other things involved? Is the price of equipment will stay the same, are the interest rates are gonna stay the same, is everything else is gonna stay the same? "The one thing we do know is going to happen is that your utility is going to continue to raise those rates on you. So you might as well start saving money now versus saving money in 5 years. If somebody came to you and said, ‘Do you want to start saving $40 a month?’ would you say, ‘No. I’d rather start doing it in 5 years.’” Rivus Energy’s Richard McCoy echoes James’s earlier sentiment by pointing out that any installer who leverages the ITC likely needs a stronger value proposition. It’s a very attractive incentive. But on its own, it shouldn’t be the deciding factor between going solar and not. “I’m super excited it’s been extended. It’s going to be a great thing for our country in general — to be able to help as many Americans adopt solar over the next decade….  "But what’s also going to happen is that demand for solar is gonna go up. As more states mandate solar and as the demand goes up, the price of equipment goes up. We saw last year how import and export tariffs affect the cost of equipment and put things on backorder.” He then goes in for the close: “It sounds like what we presented to you today met all your needs and is gonna be the most cost-effective solution for you today. If we wait another 5 years, this $250 bill that you have is just gonna be another $15,000 you give to the utility company…. Over the next 5 years, the cost of batteries, equipment, and labor are all going to go up. Can you think of any reason why going solar today is not a better decision than 5 years from now or later down the road?” The solar sales tools to help With this objection, it’s all about savings — and specifically savings starting now. This is where tools like the Bill Overview page in Sales Mode can close the deal. It lets you show the customer their monthly savings, how that savings will grow over time, and even lifetime savings. It may be the single most important feature for closing deal quickly. Watch this quick video to see how it works. https://youtu.be/9kID6xQdhLU In closing... With the solar ITC extended, demand for new installs will likely increase. But with urgency no longer in the picture, clarifying the importance of acting now is critical.  Whose pitch resonated best with you? What strategies do you use in this situation? Head to our Solar Sales Throwdown LinkedIn post to weigh in. Want to learn more? To hear the complete responses watch the entire Solar Objections Throwdown on-demand, or listen on the way to your next customer.  You can also get the highlights by visiting the other posts in this 5-part series: Solar seems too expensive in these uncertain times With interest rates so high, I won’t be saving much  What if you (or the manufacturer) go out of business  With the Solar ITC extended, what’s the urgency?  Our neighbor had a bad experience with solar (coming soon) Hungry for more? Download the Solar Sales Objections Handbook to get actionable strategies for 5 more of the most common solar sales objections. Click above to download the full Solar Sales Objections Handbook. ### Understand solar panel specification sheets and how to read them Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what to expect for the rest of 2024, to how AI is affecting the industry, and more. Register Now A solar panel spec sheet provides valuable information about the operating parameters of a panel and can help designers, engineers, and installers determine how to configure a solar PV system. The panel spec sheet will tell you about the panel’s electrical power production, including its efficiency and how it operates with changing temperatures, as well as mechanical information like the dimensions and wind loads. This information is required to get an accurate performance simulation. How to read a solar panel spec sheet If your first solar spec data sheet looks like a foreign language, don’t be concerned. There’s a lot of unique jargon that goes into it, but we’re here to help you out. Our research engineer, Andrew Gong, will walk you through the terms to know and what you should expect. What is Pmax rating? The first value people should pay attention to is the maximum power point, commonly abbreviated to Pmax or MPP rating. “Maximum power point is a combination of voltage and current,” Gong explains. "It’s the combination of volts and amps that creates the highest wattage. “If you lower the current and increase the voltage, you move away from the maximum power point,” he continues. Typically, solar panels are rated between 250 and 400 watts. Higher wattage generally means a system will be more efficient and require fewer modules. Understanding voltage in solar panel specs Voltage is also an important consideration. If, for example, a designer decided on 12 panels in a string, it’s important to make sure the voltage doesn’t exceed certain thresholds. “You want to size the system so it doesn’t exceed 600 volts per string,” Gong explains. Above that, the panel won’t operate as well. Solar panel efficiency Installers, engineers, and designers should consider efficiency ratings. On average, solar panel efficiency ranges from 15% to 20%, with some panels as high as 23%. As cell technology improves, so do efficiency ratings. A spec sheet also provides information about the assumptions used to create a panel’s operating parameters. For example, SunPower’s spec sheet provides a range of temperatures, from -40 C degrees F to 85 degrees C. That’s listed under Operating Condition and Mechanical Data. “In colder temperatures, panels operate a bit better,” Gong says. Looking to explain solar to your customers? Click the image to download our Solar Sales Follow Up Kit and leave it with them. In extreme weather, consider temperature ranges How does weather affect solar panel efficiency? The temperature ranges of modules generally are between -20 degrees C to +85 degrees C in the U.S. In areas with more extreme temperatures — such as Alaska — installers and designers should be aware of panels’ temperature ranges. Another value is the operating cell temperature, says Gong. “Some panels run hotter than others. This value tells you how modules respond to various levels of sunlight.” It’s also important to understand current in panels. Under the heading of electrical data, a spec sheet provides a rated current. “If you exceed the current, you destroy the panel,” says Gong. “Maximum current depends on the panel and how many parallel strings in the system.” Ratings that are important in areas with high winds In areas of extreme weather — those susceptible to high winds or snow — installers should pay attention to the mechanical or static load ratings. The front side rating focuses on the snow load, and the back side rating is about the wind load. The load figures appear in Pascals, a unit of pressure. Higher numbers mean the panel is stronger. Click above to download our full guide to PV system losses. What your solar specifications sheet should include Material characteristics A specs sheet should have information on the material characteristics, including vital information about the size and dimensions of the solar panels. Electrical specifications The electrical specifications are where a lot of the technical terms and metrics begin to show up. It will include data on important specs such as Pmax and temperature testing. Below is a list of some important electrical specifications within solar panel specification sheets. Nominal Operating Cell Temperature (NOCT) The expected operating temperature of a solar cell is important for determining the output it will provide. The Nominal Operating Cell Temperature (NOCT) is the temperature reached by a solar panel under four standard environmental conditions: Sunlight hitting the solar panel = 800 watts/sq meter Wind velocity = 1 m/s Air temperature = 20°C (68°F) Panel angle = 45° from horizon NOCT has a major impact on solar panel performance, and must be factored into any solar system planning and optimization. Temperature coefficient (%/ °C) When silicon in PV cells heats up, they become less efficient. A solar panel’s temperature coefficient shows the relationship between PV output and the temperature of the solar panel, and is represented as the overall percentage decrease in power over for each degree of temperature rise. Maximum Power Point (MPP) The Maximum Power Point represents when a solar panel has maximum power output. MPP, changes slightly with temperature and sunlight intensity.  Maximum Power Point Voltage (Vmp) This is the available voltage of a connected panel operating at max capacity under standard testing conditions. Most manufacturers rate their panels around 70-80% of the Open Circuit Voltage (VOC).  Maximum Power Point Current (Imp) Maximum Power Point Current (Imp) is the current (amperage) a solar panel produces at maximum power output. It’s the current you want to see when the panel is hooked up to a charge controller under standard test conditions. Imp varies with the intensity of sunlight hitting the panel.  Open Circuit Voltage (Voc) Open Circuit Voltage (Voc) is the maximum voltage a solar panel can produce without a load. Voc is measured at the unconnected terminals of a solar panel to check or test the panel during installation.  Short Circuit Current (Isc) Short Circuit Current (Isc) is a measurement of the current produced when the positive and negative terminals of a solar panel are connected to each other. Isc shows the highest current a solar panel can deliver without damaging itself, and is used to determine how many amps a panel can safely handle when connected to a load.  Power tolerance Power tolerance is a measurement of how much power a solar panel can produce below or beyond its rated capacity. For example, a 100 watt panel with a -4%/+4% power tolerance could produce 96 to 106 watts in real-life conditions.  Module efficiency (%) A solar panel’s module efficiency measures how much sunlight hitting the panel is actually converted to electricity. The higher the module efficiency, the fewer panels it takes to get the job done.  Certifications  Quality solar panels undergo rigorous testing under various environmental stressors to ensure quality and safety. Solar panel certifications are printed on a solar panel’s spec sheet. Common solar panel testing and certification standards are established by the International Electrotechnical Commission (IEC) and Underwriters Laboratories (UL). Warranties can vary Solar spec sheets also mention warranties. Most have 25-year warranties, according to Gong. Some manufacturers offer a 90% warranty for 10 years, and decrease that amount as the panels age. Premium panels have better warranties. What are your next steps Hopefully, this helps while you’re reviewing your own spec sheet. We highly recommend taking the next step of testing out a solar software platform, it will make the next step for making sure you have a viable setup so much simpler. Using a spec sheet with Aurora Solar Once you’ve gathered this and other data from a spec sheet, you can load the data into Aurora Solar and immediately create a picture of how the panels will fare. It’s super easy. Just a few button clicks, and you’re on your way. Take an inside look at how it works: https://www.youtube.com/embed/GoLpsUcnK4w Get an inside look at how Aurora calculates the performance of a PV installation. Want to learn more? Schedule a free, personalized demo and we'll walk you through anything that doesn't make sense. Or, click into the chat at the bottom right of the screen to be connected to one of our experts. FAQs How do you understand solar panel specifications? Solar panel specs can be confusing, but understanding them is essential to installing the right equipment. The key to understanding solar panel specifications is learning to identify acronyms. Keep a notebook handy with the acronyms you regularly encounter, and when in doubt, look it up!  How to read solar panel datasheets? Solar panel data sheets can be very confusing, especially if you are new to solar. If you can’t have your installer with you when reviewing a datasheet, having your internet guide handy while walking through the definitions and metrics will be your best friend.  If you prefer the human touch, contact your local solar installer, and they will be happy to walk you through the more complicated subjects like Voc, Isc, Pmax, and more. Working with an expert, they can also specialize the process by explaining how your solar panels will behave based on where you live, the placement of the panels, and more. ### Solar Sales Objections Throwdown: “What if you or the manufacturer go out of business?” While solar has some great tailwinds at its back, the rest of the economy is in a much less confident place. This means that customers are extra cautious, especially when it comes to the strength of your company — and your suppliers. They don’t want to make a long-term commitment to solar, only to have the company go out of business.  How can you reassure customers that your company is strong and you’re in it for the long haul? That’s the question our panel of experts discussed in the third installment of the Solar Objections Throwdown.  This year’s Solar Objections Throwdown panel featured: James Ramos, Founder – Solar YOUniveristy Ashleigh Tatarcyk, Owner – Urban Sol Energy Richard McCoy, Solar Energy Consultant – Rivus Energy Joe Mouhaskheel, Owner – Solar Academy & SolarCo Solar Objection #3: What if you or the manufacturer go out of business? “Your warranty is nice, but what if you go out of business? What if the panel is no longer made or serviceable 20 years from now.” It’s one thing to debate the economics of going solar (as the experts did in the first and second objections). But PV contractors — companies in all industries, for that matter — do go out of business from time to time. And there’s no guarantee that a panel or inverter manufacturer will be around to honor warranties far into the future. So how do you handle this?  Rivus Energy’s Richard McCoy starts off the discussion by acknowledging the prospect’s concerns. Even if this type of honesty is scary, his attitude is that there’s no point in sugarcoating what everyone already knows. Doing so only erodes trust. “You’re absolutely right. And that does indeed happen. Throughout my own time in the industry, I have seen that happen — customers paying for installs and ultimately having no one to turn to. And it stinks.” Once he establishes that trust, Richard gets to the specifics of how his company will protect the consumer even if they do go out of business. “Because we’ve seen that, my company has built world-class processes to ensure that if this were to happen to either us or our installers, we partner with other extended warranty options like SolarInsure to make sure you’re protected no matter what. So on top of our warranties, extended warranties, and production guarantees, we’re gonna make sure that if something happens to us, you’ll be able to go to other installers for any servicing in the future.” Joe Mouhaskheel of Solar Academy & SolarCon diffuses the objection with some trademark humor. “All solar installers work for the same company — the Sun. And that company will never go out of business.” Then he gets serious about how he chooses what companies to work with. “When I work with homeowners, I don’t just choose any installer and supplier to work with. I do a lot of research. I wanna see which company will be around in the future…. I look for lots of installs. Great reviews. Growing fast. And on top of that, there’s the manufacturer’s warranty. And on top of that, an extended warranty to cover any gaps over the next 25 years.” Solar YOUniveristy’s James Ramos also opens his pitch with bare-knuckled honesty. “I totally understand. No one can ever guarantee they’ll be around forever. No one has a crystal ball. And if they ever guarantee they’ll be here for the long-haul (over the next 25 years), that’s someone you gotta kick out of your house.” Then he pivots to specifics about his company. “But we have amazing reviews. And we’re using Tier 1 solar panels, so there’s at least a 25-year manufacturer warranty…. You should still do plenty of vetting. But we partner with many installers around the country to ensure we always find the right one for you…. No one can guarantee they’ll be around for 25 years. But we can guarantee we’ll be back to fix any problems you might have in a timely manner.” Urban Sol Energy’s Ashleigh Tatarcyk also points out some of the issues that might go wrong with a customer’s solar installation over the next 25 years.  “Not all warranties are created equal, and it’s really smart of you to be looking so in depth and asking questions like this…. We partner with a third-party insurance company that is also backed by a third-party insurance company that has been in business for over 100 years. When you include the manufacturer warranties, you’ll always know you’ll have someone to help you out.” Then Ashleigh delves even deeper by imagining that the prospect’s worst fears actually materialize — despite all the warranties and guarantees, “But let’s say in the worst-case scenario, all of these companies go out of business. There will still be installers who know how to handle SolarEdge or Enphase. It’s similar to how Toyota or Ford dealers can still get your car fixed — even if you didn’t originally buy it from them. There will always be someone there.” Ashleigh ends by highlighting one of the biggest advantages solar has over cars (or most big-ticket purchases): PV panels are super low maintenance and don’t generally need a lot of servicing over the years. The solar sales tools to help With Sales Mode you can customize your proposals in a number of ways — simply and easily — so you can highlight exactly what sets your company apart.  Sales Mode lets you develop the proposal that works best for your customers. To learn the simple steps for making it happen, check out our 2-minute YouTube video. https://youtu.be/Zu-UJBZO0gw?t=41 In closing… If you haven’t already heard this common objection, you almost certainly will in the future. But now you know how to address customer concerns about the longevity of your own operations — or those of the manufacturers you work with. Whose pitch resonated best with you? What strategies do you use in this situation? Head to our Solar Sales Throwdown LinkedIn post to weigh in. Want to learn more? To hear the complete, unedited responses watch the entire Solar Objections Throwdown on-demand, or listen on the way to your next customer.  Click above to watch the entire Throwdown on-demand. You can also get the highlights by visiting the other posts in this 5-part series: Solar seems too expensive in these uncertain times With interest rates so high, I won’t be saving much  What if you (or the manufacturer) go out of business (coming soon) With the Solar ITC extended, what’s the urgency? (coming soon) Our neighbor had a bad experience with solar (coming soon) Hungry for more? Download the Solar Sales Objections Handbook to get actionable strategies for 5 more of the most common solar sales objections. Click above to download the full Solar Sales Objections Handbook. ### Solar Sales Objections Throwdown: “Solar financing rates are too high right now” “We are moving at light speed from the lowest interest rate environment, I think, in any of our lifetimes to what is certainly the highest in decades,” explains Mike Gilroy, CEO of Sungage Financial. These high interest rates — basically, the cost of borrowing money — make big purchases, such as solar, trickier. But it doesn’t mean solar isn’t still a great investment for homeowners. It just means solar salespeople need to get more creative, and deliver more knowledge to make sure potential customers understand solar’s benefits, even with high interest rates.  Click above to watch the entire Throwdown on-demand. In this edition of our Solar Objections Throwdown our experts tackle the issue of interest rates head on — looking at the concerns that prospects increasingly voice as solar financing rates continue to climb. Our panel of solar industry experts included: James Ramos, Founder – Solar YOUniveristy Ashleigh Tatarcyk, Owner – Urban Sol Energy Richard McCoy, Solar Energy Consultant – Rivus Energy Joe Mouhaskheel, Owner – Solar Academy & SolarCon Let’s see what they had to say. Solar Objection #2: With Solar Financing Rates So High, How Much Can I Really Save? There isn’t much that PV installers can do about solar financing costs; borrowing money is simply more expensive today than we’ve gotten used to in the past few years. As a result, many installers hear from prospects that: “Financing rates are just too high right now, so it doesn’t look like I’ll be saving much.” It’s a fair concern. But it can also be a frustrating one given that the prospect has already gone through the time and trouble of booking an appointment. They clearly understand the value of solar. Here’s how our experts recommend navigating this particular question. Every expert starts with empathy — showing they understand how the customer is feeling. In this case, it’s a combination of high interest rates and costs, and uncertainty. “You’re absolutely right. Everything is super expensive. I just paid $6 for a dozen eggs, and don’t get me started on my new car payment. And who knows where it’s going in the future? Urban Sol Energy’s Ashleigh Tatarcyk then pivots to lay out the certainty of savings vs. the uncertainty of the market: “Here’s what we do know. Maybe [if you wait to buy] the dealer fees go down and financing fees go down. But, the price of equipment may go up, or the interest rates may go up, or the price of labor may go up….  Even if you’re saving $30 a month with solar, what will that look like in a couple years?.... I like to take advantage of things right now vs. later. What do you prefer to do?” Ashleigh emphasizes that although it may be tempting to put off going solar in an attempt to avoid high interest rates, inflation impacts every aspect of the economy (including borrowing). And installing solar panels could be more expensive in the future than it is today, once you factor in the total cost of equipment, labor, financing, and even incentives.   Rivus Energy’s Richard McCoy based his pitch on solar customers who are focused on the long term and know their finances. In these cases, he focuses on their ability to save, and cut down their payback period.  “We took a look at your utility bills and were impressed you kept a spreadsheet. You knew exactly how much you were paying for every little thing….  “We’re gonna be able to help you save on a monthly and long-term basis. You’re the type of person who will re-apply those savings towards the principle — you won’t need 25 years to pay the loan off, you’ll take care of this in a much faster time period. Wouldn’t you agree that’s a better financial decision than what you’re currently doing with the utility company?” Joe Mouhaskheel of Solar Academy & SolarCon used a slightly different tactic. After acknowledging that financing rates are high, he uses a Q&A approach to highlight the contrast between “energy as a service” vs. energy as an asset: “At the end of the day, how much interest are you paying your electricity company? You’re basically paying 100%. Imagine you live in a home with the option to pay $2,000 in rent or $2,000 in mortgage (with a 9% interest rate). Would you rather pay 100% in rent and get nothing in return or pay a higher interest rate?” “Interest rates and inflation may keep going higher and higher. But the cost of electricity is going higher and higher…. And that’s not gonna stop. But at least with solar, your cost will be fixed.” The key message? The cost of “renting” power from your utility company — i.e. buying power that they generate — will always go up, but the cost of generating your own clean electricity on-site stays consistent through time.  Finally, Solar YOUniveristy’s James Ramos highlights total savings, which helps show just how good an investment solar can be: “Inflation is causing everything to go up. Dealer fees and financing fees are high because of inflation. And that’s uncontrollable.  But you’re still saving $50 a month at first. And even with high dealer and financing fees, you end up saving a total of $28,550 over the next 25 years. So at the end of the day, you’re saving a lot of money in the long run.” It’s hard to argue with total savings numbers that are that high — and this is a fairly typical installation example.  The solar sales tools to help While the total savings number from James’s pitch is fairly typical, it’s important that you can provide each customer with their savings. With Sales Mode, you can actually show prospects these savings while still at their kitchen table. They can see that as electricity prices from the power company continue to go up, their savings climb, and their payback period only shortens.  https://www.youtube.com/watch?v=8yGIkGWhM2E&list=PLORbKy08kboqFEURpXTiIcWHanweFnjEY If the homeowner wants different financing options, or a different system size, you can work with them to get a system cost, monthly payment, or interest rate that works best for them — in real time. In closing… Want to weigh in? Head to our Solar Sales Throwdown LinkedIn post to give your $.02. To learn how our panel of PV experts navigated all 5 residential solar objections, watch the Solar Objections Throwdown today — or listen to it on the way to your next meeting. Click above to watch the entire Throwdown on-demand. You can also get the highlights by visiting the other posts in this 5-part series: Solar seems too expensive in these uncertain times With interest rates so high, I won’t be saving much  What if you (or the manufacturer) go out of business (coming soon) With the Solar ITC extended, what’s the urgency? (coming soon) Our neighbor had a bad experience with solar (coming soon) Hungry for more? Download the Solar Sales Objections Handbook to get actionable strategies for 5 more of the most common solar sales objections. Click above to download the full Solar Sales Objections Handbook. ### Opportunity zones explained: A helpful solar incentive Federal opportunity zones, which offer tax benefits to qualifying businesses, are little known and not always well understood. But they can offer important advantages to solar companies, adding to solar tax benefits such as the Federal Investment Tax Credit (ITC). "Opportunity zones were created to promote economic development in low-income communities by allowing companies to defer capital gains taxes," said Roman Petra, attorney for Nelson Mullins who specializes in commercial real estate transactions. “The zones offer tremendous value for solar,” said Jim Spano, a managing partner of Spano Partner Holdings, who has been involved in the development of more than 300 megawatts (MW) of solar. “Having a tax break in areas where economics don’t support solar can provide lower cost of capital and opportunities for projects to pencil out.” Click above to learn insights from commercial solar leaders, hidden growth opportunities you can tap into, and new features that can streamline your solar business. Pairing solar benefits with opportunity zone benefits Jeff Just, co-founder, along with Spano, of RadiantREIT, which provides financing for solar projects, added that locating a solar installation in an opportunity zone allows businesses to double dip on tax benefits. “They get all the benefits of the zone — including permanent exclusion of future capital gains — while keeping all the tax benefits of solar... There are no limitations on pairing these two opportunities,” he said. How do opportunity zones work? Developers who invest in economically distressed communities through the program are given three tax incentives: temporary deferral, step-up in basis, and permanent exclusion of capital gains. With temporary deferral, investors can defer tax on prior capital gains reinvested in a Qualified Opportunity Zone. Investors also receive a step-up in basis for capital gains reinvested in a Qualified Opportunity Zone. A higher basis means lower capital gains. Under the program, the basis steps up by 10% if the investment is held for at least five years, and by an additional 5% if held for at least seven years. The third incentive, permanent exclusion, says that if held for at least ten years, capital gains from the sale or exchange of an investment in an Opportunity Zone may be permanently excluded from capital income. Creating a qualified opportunity zone fund To qualify for the Opportunity Zones program, investors must establish a Qualified Opportunity Zone Fund. This fund holds Qualified Opportunity Zone property. Many different types of taxpayers can establish an opportunity fund, including corporations, partnerships, limited liability companies, and individuals. Different segments of the solar industry can take advantage of opportunity zones, including solar equipment manufacturers that produce panels, inverters, batteries, battery charge controllers and components, and equipment that moves DC energy produced by solar panels for conversion into AC electricity, said Petra. Solar installers and solar farms also qualify. It’s important to understand where the zones are located — and identify whether a solar business can take advantage of the zones, said Spano. The importance of consulting an attorney “As business people, we look at the definition of opportunity zones in geographic areas and the qualification requirements of the business,” he said. Because it’s not always easy to determine whether a business qualifies for the benefits, his company always consults attorneys. “Our attorneys advise us about how to present our applications for qualification,” he said. The eligible tracts for the zones are based on economic indicators of median family income and poverty, said Petra. States are limited to establishing zones in 25% of their low-income communities. In other words, if a state has less than 100 tracts identified as low-income communities, 25 qualify, he explained. The tracts are chosen based on statistics from the U.S. Census. Consider focusing on Puerto Rico Puerto Rico — which has been rebuilding its energy infrastructure in the wake of the devastation of Hurricane Maria — received special treatment, with 835 of 945 low-income tracts qualifying as opportunity zones. “Of particular interest should be Puerto Rico, which after Hurricane Maria has made a concerted effort to promote alternative energy, especially solar energy,” said Petra. Last year, the U.S. Department of Treasury certified over 8,700 individual census tracts as Qualified Opportunity Zones in 50 states, six territories and the District of Columbia, he said. About 35 million people live in these zones, which are established for 10 years. Look for opportunity zones in rural areas “Most solar energy developments located in opportunity zones should qualify,” said Petra. He added that “Developers should consider rural areas, where over 23% of census tracts are located and land tends to be more available and cheaper.” Solar developers should also consider opportunity zones in the states with the most sunshine, he noted. In order to qualify for the tax benefits, a Qualified Opportunity Fund must invest in a Qualified Opportunity Zone Business. A Qualified Opportunity Zone Business must be a trade or business in which substantially all (70%) of the tangible property is owned or leased in a Qualified Opportunity Zone, said Petra. Fifty percent or more of the business’s total gross income must come from actively doing business in the Qualified Opportunity Zone. And at least 40% of the company’s intangible property must be actively used in a Qualified Opportunity Zone. Intangible property includes non-material assets such as bank accounts, copyrights, stocks, patents, bonds, insurance policies, retirement benefit accounts, plus customer lists or trade secrets, all of which have a dollar value. Petra notes that the location of the business is especially important to qualifying for an enterprise zone. “The focus is on the location of the business, but a Qualified Opportunity Zone Business must meet other tests,” including the requirement that the company must derive 50% of its gross income doing business in the Qualified Opportunity Zone,” he said. It’s important for solar businesses looking at the program to understand what’s needed to qualify as an Opportunity Zone Business, he said. Spano agreed, noting that the zones can be confusing, so it’s important to work with attorneys. Solar opportunities with the ITC The Investment Tax Credit (ITC) is a US federal tax credit for those who adopt solar in all states within the US, including residential and commercial properties. This credit was an excellent incentive for many solar prospects to adopt solar. Initially, the ITC was scheduled to be reduced to 22% in 2023 and then disappear altogether for homeowners in 2024.  But as of Aug 16, 2022, the government passed the Inflation Reduction Act (IRA), which increased the tax credit to 30% and extended the expiration of the ITC for 10 years. “The final benefit of the Qualified Opportunity Zones program is if the investor holds the investment for more than 10 years, any subsequent gain recognized escapes federal tax entirely,” said Petra. (It is important to note, however, that a state may not follow the federal law and may tax the gain.) Overall, the tax benefits available to investors should translate to long-term, cheaper capital, he said. To date, most of the qualifying transactions in the zones have been in real estate, said Petra. “Generally, real estate projects are well suited... but as folks have gotten more comfortable with the program, other industries [like solar] have gained interest in the program.” Want to learn more about opportunity zones? Click above to schedule a personalized demo. ### Optimizing your solar design process with LIDAR in Aurora: Your questions answered With LIDAR, you can skip truck rolls and sell to your customers with confidence. Accurate system design and bankable shade reports can be generated quickly and remotely. To put that in context, accurate remote site assessment could save you the equivalent of half the cost of an average string inverter! Aurora uses 3-dimensional LIDAR data to calculate building heights, roof slopes, and tree heights. LIDAR data is also used to calculate how much irradiance (sunlight) and shading is cast on a rooftop, so sites can be quickly screened for their solar potential. This post covers some of the top questions that were asked during our recent webinar, Optimize Your Solar Design Process with LIDAR in Aurora. You can watch the replay of the webinar here. Click above to watch the entire webinar. Aurora’s LIDAR availability How do we gain access to this feature in our account? LIDAR is available to Premium and Custom accounts with Aurora. (Contact customer support to learn how you can activate it on your account.) Where is Aurora's LIDAR available? The best coverage is in the United States and North America, in general. As you can see above, there is some coverage in Canada and Mexico. Other international coverage is a bit spottier. You can check our coverage all over the world here. Do Nearmap images use the same LIDAR data? No, Nearmap and LIDAR sources are totally different data sets. Nearmap gives us the latest and greatest 2D, top-down satellite imagery, while LIDAR gives us a 3D topographical representation of a location. This makes them great to use in tandem, to get more information in order to make the best design possible. To learn more, see our help articles: NearMap help article LIDAR help article How to use LIDAR in Aurora Is there a simple, step-by-step template that shows which tools to use and when? We offer training sessions to help, plus some help center articles. Here is another helpful tutorial! An easy sequence to remember would be:  Obtain the best imagery possible  Enable LIDAR data if available  Align the imagery in LIDAR Start drawing right away. Outline the pitched or flat roof. Once have basic structure, toggle LIDAR on and off to keep adjusting  Also, be sure to use Google Street View in Aurora where available. This will help you measure and adjust for a better design. Where’s the LIDAR shading enable/disable button to toggle it on and off? There are two options:  You can enable or disable LIDAR for all of your projects by going to your settings page.  Your second option is to use LIDAR on a specific design. To do this, go to your design, click on the gear box, or settings symbol, and click “simulations.” You can use this to toggle LIDAR on and off. Is there any way to get drawn in objects to be blocks or polylines? (For example, sometimes when a design needs to be modified in Auto CAD, it can be somewhat cumbersome to move multiple lines instead of a single block.) Yes. Our tool is based in a CAD window, so you can draw obstructions. (Please see the full webinar for an example using a basic chimney.) You can move the rectangle height up and down without having to move individual lines. However, when the DXF file is exported to be used outside of Aurora, this is no longer the case and the output is a 2D orthographic projection of the design as polylines.  What if the LIDAR data looks to be off or is behaving oddly?  If you are experiencing any issues, please contact Aurora support (support@aurorasolar.com) to help troubleshoot. Aurora’s LIDAR data accuracy & recent update Does the LIDAR info specify the date the data was taken? (For example, so we know if a tree was removed before or after the LIDAR data.) Yes. You can check LIDAR age here.  What if the date LIDAR data was taken for a certain area seems old? (For example, if it's listed as 2010.)  The average LIDAR age decreased overall in our recent 2022 LIDAR update. We rely on agencies like USGS and NOAA, so if they haven’t surveyed an area for a long time, then we not have any updated information. We do QA data and would trust that the 2010 data will still be helpful to use for your designs.  If the LIDAR is refreshed, how accurate will tree height be? LIDAR accuracy depends on a couple different factors such as the LIDAR age and point density. Our 2022 LIDAR refresh improved the average age and point density of our LIDAR data. LIDAR axis positions & slopes When you change the LIDAR axis positions, does it affect the production simulation? When changing the X, Y, or Z axis, everything moves at the same time in the chosen axis. Individual obstructions do not move separately. Therefore, this shouldn’t change the production and shading values on the roof surface. If we can offset the X, Y, Z coordinates in LIDAR how do we decide which one is correct? The default or offset? The main reason to use these offsets is if the default LIDAR data doesn’t match the imagery that you chose. That means, when you toggle the LIDAR data on, certain ridges or features might be a little off from the image you chose. Lining up a high-quality image with LIDAR helps you make a better design. If you were to adjust the X offset, everything in the data set moves by the same amount in that axis. You wouldn’t be able to just move a tree or the roof with the X/Y/Z coordinate adjustment, for example. Does LIDAR have information on slope of ground? (For example, for designing on steep hills.) The remote sensing aircraft surveying the ground below is taking measurements not just of houses, but of the topography around the houses. If you move the Z access up and down, you can see the topography and how the hill shows in LIDAR data. This will give you a better idea of the structure’s surroundings.  What if there's a project where the LIDAR data may not be 100% accurate? (For example, the roof appears flat, but is sloped IRL.) LIDAR is a really helpful tool to use when you design on your own, no doubt. But for those projects where it doesn't fit for any reason, we also offer an expert design service that uses all of the tools Aurora has to offer to create extremely accurate design for your team. We can design a system with the turnaround time of under 30 minutes or under 3 hours — depending on what you need. Plus, you can approve or reject a design.  If I turn off LIDAR but keep horizon shading on, what exactly will render?  (For example, do you need to draw the house on the hill if you want to include it?) LIDAR data and horizon shading data are independent of each other. Horizon shading can still apply if that’s what you chose in your settings, even when LIDAR is not on or not available. Trees in LIDAR What's the point of adding a tree if the LIDAR already captured it? Sometimes, you might want to draw the trees out yourself if you disable LIDAR shading and want more control of surrounding obstructions and shading sources. How much does the type of tree modeled affect shade calculations? Are bare deciduous trees accounted for when considering winter production? The LIDAR data is from a snapshot in time, so it really depends when surveying aircraft captured that tree. But whether it's summer or winter, there isn’t a huge percentage leaf shading difference in your design.  When LIDAR shading is on do you need to draw the trees or obstructions? No. If you use LIDAR shading, you don't need to draw external obstructions like trees. Shading doesn’t take into account obstructions on the roof itself like chimneys. Do you recommend drawing the trees or using the original LIDAR? That depends on the quality of the LIDAR data. Sometimes LIDAR data is old and the point density is not great. You can check the LIDAR quality in terms of age, point density, and source, whether it’s sourced from GOOGLE 3D or the Aurora LIDAR data set. Based on these factors, you can determine whether it is best to draw all the trees and surrounding obstructions yourself or use LIDAR shading.  Additional LIDAR resources If you have any additional questions about LIDAR in Aurora, please reach out to our support team at support@aurorasolar.com, or schedule a quick, no-pressure demo.  Click above to schedule a personalized demo. Interested in learning more about Aurora’s features? Sign up for our weekly Wednesday webinar How to Sell with Aurora in 20 Minutes to see Aurora in action. ### SEO guide for modern solar businesses SEO is one of the most important elements of any modern digital marketing strategy.  With consistent, long-term effort, search engine optimization helps businesses to develop a strong online presence, making it easier for potential customers to find you and consider your services.  While we touched on the importance of solar SEO in our beginner’s guide to solar marketing, there are many aspects of this evolving topic that require a more in-depth understanding.  To help improve the chances of potential customers coming to your website — and eventually buying from you — this article will take a complete look at the most critical things to know about SEO for solar companies.  Table of contents: What is SEO for Solar? SEO Strategies SEO Tools SEO Keywords FAQ What is SEO for solar businesses? SEO, or search engine optimization, is the process of maximizing the number of people who can find your business online. The goal of every SEO campaign is to increase a website’s rankings on Google (and other search engines) so that a business can be more easily found when customers are looking for answers or professional services. To rank well in search results, ideally on the first page, Google prioritizes websites with high-quality, clearly formatted, and credible information designed to deliver the most value to those searching. With results based on the exact keywords a user types into the search bar, some inquiries are much more difficult and competitive than others for websites to outrank their competitors. What is solar SEO? SEO for solar companies is similar to that of other local home improvement businesses. While the keywords to focus on are industry-specific, solar installers hoping to improve their organic digital presence can implement many of the same techniques and strategies used by roofers, remodelers, and other contractors.    SEO strategies for solar companies Within the realm of solar SEO, obviously, there are many different kinds of companies. Solar panel manufacturers' SEO will be different than that of a local installer, as every business’s strategy should be centered around what their target audience is searching for online.  Today, SEO tips for solar companies can be divided into a few key areas which vary in required technical knowledge, difficulty, time, and cost to implement. Thankfully, unlike paid advertisements, many solar SEO strategies can be put into use without a regular additional spend on ad placements in addition to the cost of the SEO work itself. Keyword research A great first step to any SEO campaign, keyword research will help identify the exact language that people are using to find companies like yours online. While there are many different ways to research keywords, high-quality tools can provide helpful insights like expected search volumes, ranking difficulty, related inquiries, and top competitors. Here are few keyword tools that can help: Google Search Console Google Keyword Planner SEMRush  Ahrefs Beyond dedicated research tools, you can also find valuable keyword information based on what is being discussed in online communities like Reddit and Quora or by speaking directly with your customers.  When planning content related to frequently asked questions, Google’s “people also ask” box is a great place to see other searches related to specific inquiries.   Local SEO 46% of Google searches are for local businesses, so for solar installers, local SEO is paramount to ensuring you show up in these results. Today, building a Google Business Profile (or Google My Business profile) is the most essential step for high-quality SEO. By activating your business profile and filling it with localized information, your website will be more likely to show up when customers are searching for a local business, displayed in the “Map pack” as pictured above.  Optimizing your website for the customers in your service area is also very important. On your website and around the web, having a local address listed, and content that’s written specifically for your city, county, or state will help search engines prioritize your page when potential customers are looking for solar energy services nearby.  Content creation More than anything else, the key to solar SEO is creating and sharing quality content that is relevant to your target audience and gets them interested in your solar products or services.  The best way to do this is by making sure your website hits the basics first: landing pages that describe your services/products and, if you are a local solar company that is targeting local residents or commercial businesses,  “geo” landing pages that target the specific areas where your business offers solar services.  The second-best type of content to publish on your solar website is content that showcases your expertise, authority, and trust. Some examples include an About page that shares what makes your company special: the years of experience your solar employees have, testimonials of satisfied solar customers, and logos for awards your company has won. An additional way to improve your solar SEO is by creating a blog answering solar consumers’ questions about solar. While it can be tempting to continuously post blogs about your latest projects, most people going solar are mainly looking for answers to their solar questions, rather than information about a company’s achievements. For example, when planning your content, here are some of the most commonly asked questions about solar today: Is solar worth it? Should I buy or lease solar panels? How long do solar panels last? Do solar panels save money? Do solar panels increase home value? Whenever you’re creating your content, search engines (and people) much prefer easy-to-digest information that is interesting and well-formatted. Like in this blog post, solar company SEO content should be divided into multiple sections by headers and include tables, lists, and images to make the information as engaging as possible.  With lots of strong content online, both customers and search engines can recognize the value of your business, which can then establish you as an authority in your industry and market.  On-page optimizations Diving into the technical aspects of your SEO for solar strategy, at the base level, on-page optimizations are a relatively easy way to boost your rankings and improve the way your site appears in search results. Based on the keyword research you’ve already done, on-page optimizations can be completed by simply adding the right words to the right places on your company’s web pages.  Critically, however, it is important to remember that search engines do not like “keyword stuffing”, where specific phrases are forced into page descriptions simply for ranking purposes. Instead, keywords should arrive as organically as possible in your various descriptions, tags, and URLs, only to be included when relevant to the reader.   Title tags: In the image above, the title tag of the blog post is labeled “1.” Title tags create the actual links in search results that users click to navigate to a site and should be written to include relevant keywords in a very basic description of the page. Although there is no limit to the length, 50 to 70 characters are recommended so that the full title can be displayed in search results.   Meta descriptions: Represented by “2” in the image above, the meta description of a web page is displayed beneath the title tag in online search results. Optimized meta descriptions should be somewhere between 50 and 160 characters with detailed insights as to what the reader will learn from visiting the page. URLs: When setting up web pages, your URL choices can also improve your SEO rankings. While URL length has less effect on SEO strength than title and meta descriptions, it should also include keywords when relevant.  Additional metadata: Besides title tags and meta descriptions, there are also a few other pieces of metadata that can be updated to improve the on-page SEO for solar companies. This includes adding alt text to images, creating calls-to-action, and including keywords and thoughtful links throughout the content.  Code As the most technical aspect of solar SEO, the code behind your website must be as search engine friendly as possible to rank above your competitors. In addition to being clean and easily crawlable, websites should be mobile-friendly, as search engines tend to favor those pages that look great on phones, tablets, and other devices.  While in the backend, site speed is also a key component of SEO for solar companies. Even though you may think that an advanced website will drive sales, simple and quick-loading sites tend to rank better on search engines. There are several ways to minimize site loading times, including compressed images and avoiding unnecessary widgets or code.  Backlink profile Your company’s “backlink profile” is a measure of the quality and quantity of external pages linking to your website. Essentially, if there are a lot of other sites referencing the content on your website, search engines recognize that as an indicator of quality information. A good place to start for backlink building is to create profiles on social media sites and local business directories.  Critically, backlink profiles boost SEO rankings when the links are coming from credible institutions like news sites, government pages, and other authoritative websites. While it may be tempting to “buy” backlinks, it is important to know that Google and other search engines may penalize your site’s rankings for spammy links or those that have been paid for.    Featured snippet optimization Whenever you ask a question on Google, a “featured snippet” is often the first result, with bolded content designed to directly answer your inquiry. By structuring the content on your website and blog around related searches, you can optimize the information for the chance to be displayed as a featured snippet.   For example, if many people in your service area are asking “Are solar panels worth it in X,” then you can develop a blog that clearly states four or five reasons why “Yes, solar panels are worth it in your area.” In doing so, ranking for a featured snippet will put you in the #1 search result spot for that question, helping to drive up your click-through rate above your competitors.  UX design Essential to digital marketing, high-quality UX design, or user experience design, helps create potential leads for your business, no matter how they arrived on your website. Once other SEO techniques have been implemented to boost your rankings, giving your visitors an intuitive experience will help them stay on your website and engage with your business.  For the best possible UX design, websites should be fast-loading and easy to navigate. Instead of using blocks of text, interactive features such as Aurora Solar’s Lead Capture AI tool can be used to excite prospective customers and guide them to take action.  Competitive research Finally, whether you are just getting started or are actively looking for ways to rank better on search engines, performing competitive research is an excellent way to put your website into perspective. By reviewing the websites of your direct competitors, you can identify both their strengths and weaknesses to implement and improve while working on your own strategy. Helpful SEO tools to know  For both the set-up and tracking of an SEO campaign, having the proper tools can help business owners at every stage of the process. With active monitoring of keyword rankings, backlink profiles, and more, solar companies can use a variety of tools to watch the progress of their SEO efforts and identify new opportunities for adjustments that should be made along the way.  Plugins for WordPress CMS: If your website is built on WordPress, there are many plug-ins like Yoast SEO that can be used to implement SEO techniques and track their effectiveness. There are also other plug-ins on WordPress like WP-Rocket that help compress code on your website to ensure fast page speed and quality user experience (which are ranking factors). Google Analytics:  A tool used by digital marketers everywhere, Google Analytics helps track relevant metrics related to your site such as visitors, the length of average site sessions, clicks, leads, and more.  Google Search Console: To track improvements in your organic search presence from SEO campaigns, Google Search Console also provides data on how your site is being indexed, seen, and clicked on, and even has tools and tips to fix potential issues. SEMrush: As one of the most popular SEO tools today, SEMrush is premium software for business owners that can assist with keyword research, backlinking, and other organic digital marketing strategies.  Ahrefs: Similar to SEMrush, Ahrefs is another great SEO tool with a full suite of software for organic campaign research and tracking.  SEO keywords for solar Like many home and property services, SEO keywords for solar businesses are heavily localized. When trying to find solar energy services, prospective customers will often attach the phrase “near me” to identify a local company that could perform an installation.   With data from Moz analytics, here are a handful of SEO keywords that local solar companies may want to consider including in their website and business profiles.  KeywordsMonthly Search VolumeEstimated Ranking Difficulty (out of 10)solar company near me>1,0005solar company>1,0005solar companies>8,0006Solar companies near me>8,0004Solar near me>2,0005Solar installers near me>2,0005Solar providers near me>5,0004Solar panel installation>5,0006 Interestingly enough, there is much more volume for plural searches, such as “solar providers'' and “solar installers” rather than simply “provider” or “installer.”  This is probably because most people like to compare multiple solar companies before making their final choice.   To further rank as a solar energy expert, your business may also want to focus on a few “long-tail” keywords based on the relevant questions consumers ask. This includes longer search terms like “how does solar energy work in [state or city]?” or “are solar panels worth it in [your service area]?” Conclusion In summary, search engine optimization is a vital part of modern digital marketing and there are many techniques that businesses can use to improve their organic rankings around the web.  By implementing the solar company SEO tips featured in this guide, we hope that you can build a stronger digital presence, allowing customers to more easily find your business and consider its services.  Turning site visitors into potential buyers is probably the most important part of SEO. Without a seamless opportunity to contact your solar business or get a solar quote, there is not much value to having your website rank online at all.  Tools like Lead Capture AI can instantly boost your user experience and lead to more conversions through your “Request a Quote” page with an attention-grabbing, interactive experience. When users engage Aurora Solar’s Lead Capture AI on your website by adding in their address and average monthly utility bill, they can toggle the 3D satellite imagery of their home and see a system in their roof, including an estimate of how much they’d save by going solar. It’s the perfect “last nudge” to lead them to request a quote. To learn more about everything Lead Capture AI can do, schedule a quick demo today.  Click the image to learn more about how Lead Capture AI can help you engage with more customers. Solar SEO FAQs Where do I start? The first steps for any great local solar business SEO strategy is conducting keyword research, optimizing your Google Business Places listing, publishing content relevant to your targeted audience, and a technical SEO audit. By having an expert analyze the current state of your website’s search engine optimization, you can efficiently identify the best places for immediate improvements on your organic online presence.   Should I hire a company to do SEO for me? Unless you are well versed in search engine optimization strategies or employ an in-house expert, then yes, hiring an SEO company is one of the best ways to identify and implement working solutions for your business. With that said, if you’re starting from zero, improving your SEO baseline may not be that difficult when using the techniques outlined in this article.  How long does SEO take? As a digital marketing avenue that supports longevity, SEO improvements take time to build and grow a site’s ranking. Solar companies can typically expect results in 4-6 months for low-targeted keywords, and up to years for highly competitive rankings.  What should I avoid doing for solar SEO? Like with any good SEO strategy, solar companies should avoid using any technique that could penalize their rankings, such as keyword stuffing, backlink spamming, and more. As an installer, you should also shy away from broad industry keywords like “solar panel” and focus more on local SEO techniques within your service area. Most importantly, SEO is a long-term strategy, so inconsistent efforts will not be as effective as a commitment to ongoing research and improvement.   Click above to schedule a personalized demo. Featured image by NisonCo PR and SEO. ### Solar Sales Objections Throwdown: “Solar seems too expensive in these uncertain times” In residential solar sales, it doesn’t take long to learn that homeowners are always prepared with a few objections that can prevent a deal from closing. The salespeople that get the deal signed are the ones that can answer these questions quickly and concisely.  To help you prepare for some of the tough homeowner objections you might see in the field, we recently conducted the second annual Solar Objections Throwdown. https://aurorasolar.com/resources/the-2022-solar-objections-throwdown/?aurora_blog_cta=image As with the previous event, we identified common solar objections and learned some actionable strategies on how to deal with them. To help turn these objections into selling points, we enlisted a panel of seasoned solar sales professionals: James Ramos, Founder — Solar YOUniveristy Ashleigh Tatarcyk, Owner — Urban Sol Energy Richard McCoy, Solar Energy Consultant — Rivus Energy “Solar” Joe Mousakheel, Owner — Solar Academy & SolarCon The panel received a total of 5 different objections, with each participant invited to give their best possible answer to each one.  We start with a topic lots of people are wondering about: the economy.  Solar Objection #1: Solar seems expensive in uncertain economic times As high interest rates and the prospect of a recession weigh heavily on many homeowners’ minds, the first question the panel addressed was: “With an uncertain economy ahead, now just doesn’t feel like the right time to be spending a lot of money on solar?” (The responses below are lightly edited for length, watch the full webinar to hear their entire responses.) Solar YOUniversity Founder James Ramos goes with the short and sweet approach: “One thing that is certain is that the rate hikes from your utility company will continue to go up. The great thing — if you qualify for solar — is that there’s no upfront cost…. So, let’s see what interest rate you qualify for — it may be lower than you think — and go from there.” You can do this right in front of the customer using tools like Sales Mode. https://youtu.be/xhgflEk4Whk Urban Sol Energy Owner Ashleigh Tatarcyk first addresses the underlying hesitation many homeowners feel in these uncertain times: “I completely understand. It feels really unsteady. With the economy, the price of gas, food, electricity, housing. Everything keeps going up and up, and it feels really unpredictable.” After establishing rapport and trust, she goes in for the sale. “It sounds like you’re wanting something to be stable in your bills. You want something predictable, something to lock in your rates, something that stays the same so you know what it looks like…  "Why don’t we look at one of our zero-down solar programs to see if that might be a better fit. That way, you don’t have to put any money upfront. We can get you a solar bill that’s less than your electric bill. And we can lock in those rates… That way it stays the same. Even in 5, 10, or 20 years, you know what you’re gonna be paying.” Rivus Energy’s Richard McCoy highlights that going solar doesn’t add to a homeowner’s uncertainty — it alleviates it. “There’s so much uncertainty around the cost of everything. Wouldn’t you agree it makes more sense to control the things we actually can control? One of the things about your energy rates is that they’re always gonna rise. Well, solar allows you to take control of this one variable expense — one of the biggest expenses of your home — at a time when everything is so uncertain. “So, if uncertainty is one of the things you’re concerned about, let’s go ahead and take a look at how we can lock in these energy rates so that we can take one thing off your financial plate, and put your family in a better financial situation.” Finally, Solar Academy & SolarCon Owner “Solar” Joe Mousakheel starts off with a healthy dose of relatable humor. “Yes, these are uncertain times. I just got a haircut and spent $50. You think this haircut is worth $50? Things are getting really expensive.”  After establishing that common bond, Solar Joe suggests asking questions to find out what their specific concerns are. Then he helps guide prospects to the inevitable conclusion that solar represents one of the few predictable investments homeowners can make.  “Find out their concern. Every homeowner is different — i.e. ‘There’s a recession’ or ‘I’m worried about losing my house or job.’ “One of the beautiful things about solar is that it’s recession-proof… With electricity, would you say it’s a necessity or a luxury? “And do you think electricity rates will go down or up?” When the prospect gives their answers — which are undoubtedly that electricity is a necessity and the rates will continue to rise — Solar Joe highlights solar’s value. “So what’s the better option when it comes to finances — a payment that’s lower, fixed, and gets better and better going into the future, or a payment that’s higher, going higher and higher, and unstable? We’re actually choosing between two different ways to pay for electricity. Do you want to own it and generate your own electricity or rely on the utility? It’s up to you.” The solar sales tools to help Tools like Sales Mode give you the power to instantly check each prospect’s solar financing eligibility while still in the field. In fact, you can do it right in front of them, as you work on a proposal that works for them.  For those cost conscious homeowners this powerful solution also allows you to illustrate their projected monthly, annual, and lifetime savings. This way, they can see for themselves whether moving forward makes financial sense. (Spoiler alert: it usually does.) Watch our quick, 1-minute, YouTube video to learn more. https://youtu.be/9kID6xQdhLU More questions? Schedule a personalized, no-pressure demo to find out what Sales Mode can do for you. In closing… Whose pitch resonated best with you? What strategies do you use in this situation? Head to our Solar Sales Throwdown LinkedIn post to weigh in. Want to learn more? To hear the complete, unedited responses watch the entire Solar Objections Throwdown on-demand, or listen on the way to your next customer.  You can also get the highlights by visiting the other posts in this 5-part series: Solar seems too expensive in these uncertain times With interest rates so high, I won’t be saving much What if you (or the manufacturer) go out of business (coming soon) With the Solar ITC extended, what’s the urgency? (coming soon) Our neighbor had a bad experience with solar (coming soon) Hungry for more? Download the Solar Sales Objections Handbook to get actionable strategies for 5 more of the most common solar sales objections. Click above to download the full Solar Sales Objections Handbook. ### Create a solar email marketing strategy in 7 easy steps In the crowded world of customer education and sales conversion, solar email marketing is one of the best ways for solar companies to connect directly with new and existing clients.  After all, email is still one of the most effective digital strategies to communicate with your customers, drive sales, and meet  business goals. (Please see our guide to solar marketing for strategies centered around social media, SEO, and more.)  In this article, we’ll discuss why you should use email in your marketing, and identify strategies for incorporating it into your sales and marketing processes.  How to approach solar email marketing When juggling solar marketing ideas, email is an avenue that should never be left unexplored. By speaking directly to potential customers in their inbox, solar companies can use email marketing to create personalized, educational interactions at any point in the solar lead funnel.   Sometimes the solar sales funnel can feel something like the Kunsthofpassage Funnel Wall. (By Se.By. Licensed under CC BY 2.0.) The solar sales funnel In our beginner's guide to solar marketing, we introduced a handful of helpful digital strategies businesses can use to find new customers. Once connected with these potential customers, solar sales teams must then find ways to convert new leads, using phone calls, meetings, and especially email marketing.   For solar companies, the lead funnel can be roughly divided between the pre-purchase and post-purchase phases. With that, you can design messaging specifically to appeal to various stages within these frames — top of funnel, bottom of funnel, etc. For our purposes, we’ll divide them a little less granularly, into where they are in their buying process. Pre-purchase solar customer Awareness: Whether or not they are aware of the benefits of solar, marketing to potential customers in the awareness stage is all about providing useful information. Often, first-time buyers may have false preconceptions about solar, and your job is to lay out all of its benefits, discuss how it works, and answer any questions along the way.  Looking to explain solar to your customers? Click the image to download our Solar Sales Follow Up Kit and leave it with them. Interest: Once a customer is aware of the benefits of solar, capturing their interest will help move them closer to considering a purchase. In the interest stage, success can be achieved by talking about the specific pain points (such as high electricity bills) that are driving that customer’s decisions and working to create the best possible solution.  Consideration: In the consideration stage, your customer is now fairly certain that they will go solar, but is likely weighing your services against those of other businesses. Here, you can introduce specific information on your unique selling points such as positive customer reviews, extended warranties, and other differentiators.  Including positive reviews and other information about your company is a great way to differentiate yourself from your competitors. Conversion: At the conversion stage, you have answered all of your customer’s questions and developed a unique, personalized proposal for them to sign. In this crucial step, you can close the deal either in person, over the phone, or even in an email with online contracts and e-signature integration.  Click above to learn how Contract Manager can help you close the deal faster. Post-purchase solar customer Once a new lead has been converted into a client, the loyalty and advocacy stages begin. After all, happy customers are often the best advocates for generating new business.  Both directly after a sale and months after an installation, follow-up emails and other post-purchase communications are great ways to drive more business with customer referrals. In fact, referrals have been shown to be among the strongest and most valuable leads in any industry, and solar is no exception.  7 strategic steps to solar email marketing  If you’d like to implement a low-cost and high-reward element to your solar marketing campaign, email is the perfect place to do so. These 7 steps are a great place to start planning your next email marketing campaign.  1. Set your goals If you’re a solar installer, the goals of customer communication are almost always the same: sell systems and make money. Of course, it’s not always that easy. Creating value, establishing your brand, and nurturing relationships each takes time and effort to cultivate and convert leads into new sales.  Here, clearly defined business goals are the best way to guide your email marketing campaign. To set your goals, determine whether it’s a short-term or long-term effort and clearly define the metrics you are hoping to achieve from the campaign. For example, sending informative solar content is a great way to help potential clients across the initial stages of a conversion funnel. When their interest is piqued, you can then follow up with your business's unique offerings, and attempt to convert a sale. In another realm, let’s say that you are now selling solar batteries and would like to let your customers know. For this campaign, the goal would be to introduce your new product, showcase its value, and sell directly to those on your email list.   2. Define your audience The rooftop solar market is growing rapidly, and there are large portions of the population that could benefit from an installation. After setting the goal of your solar email marketing campaign, it is essential to define your target audience in detail by creating “buyer personas”.  In the United States, almost all solar buyers want to save money, for example. However, that’s not all there is to it. Ecological concerns, design considerations, and “keeping up with the Joneses” may also appeal to specific customers.  The key is understanding your potential customers. Resources like the 5 types of solar buyers can help you get to know your potential audience better. Then you’re in a better position to create content, and customize your email’s messaging to fit specific pain points, needs, and customer profiles.    What are the 5 types of solar buyer? Click above to find out. 3. Build an email list Before starting your email campaign, you’ll of course have to build a list of recipients. For the long-term success of your business, emails should be collected from prospective customers and new clients as often as possible.  To build your list, we recommend collecting customer email addresses in your very first conversation with them. Whether this is at a trade show, door-to-door, or even on your “contact us” page, let your potential customers know that to receive information about your services, they will need to provide you with an email address. An effective way to build an email list is to add a pop-up on your website, asking visitors to enter their information. Gating helpful content can also be very effective — this way prospective buyers can only access certain parts of your site after entering their email addresses. This includes gathering emails when site visitors try to access e-books, infographics, checklists, templates, webinars, demos, whitepapers, and more. PRO TIP: Solutions like Lead Capture AI can help. Its interactive interface is one of the best ways to catch your solar prospects’ attention on your contact page or homepage. The tool, living on your website, provides an interactive experience that allows them to get a personalized, AI-generated 3D solar estimate of their home, fill out their contact information, and request a quote with your solar business. Watch our free webinar, Capture High-Quality Conversions With Lead Capture AI, to learn more. Click above to see Lead Capture AI in action. 4. Segment your list So you've set your goals and built your email list. Great! Now it's time to apply those audience definitions you created in step two. You certainly won't be sending the same email messaging to your customers as you would your leads, right? By only sending relevant emails to the right people, you can avoid “spamming” the wrong customers and focus on making useful connections with potential buyers. One way to do this is by segmenting your email list into buyer personas, where your prospective customers are in the sales funnel, and many other unique attributes. For example, by segmenting your list of recipients between the “awareness” and “conversion” stages in your sales funnel, you can ensure that you only send relevant information to those either just learning about solar or about to purchase a system.  Further, there is no true limit to the amount of personalization and segmentation you can build into your email campaigns. You can divide your email lists based on the city or county your customers live in, residential vs. commercial clients, where the leads were created (i.e. at a conference or through digital marketing), and much more. The only limit is… your imagination.   5. Determine the types of emails to send When reaching out to the different segments of your email list, all at different moments in their customer journeys, there are a few key formats you can use to get the right message across to your specific target audience.  To help you send the right emails to the customers in your sales funnel, here are some of the main types of messages.  Welcome emails: Welcome emails are effective at two different stages in the solar sales funnel: when a customer is introduced to your company and when they sign a contract. By sending a message immediately after action is taken, welcome emails help “set the stage” for what customers can expect when working with your business.  Nurture emails: Of course, one welcome email isn’t enough. A nurture sequence can be a great way to truly build a relationship with your prospects. The first email can be a “welcome”; then a set time later, a second email could include helpful links for solar buyers and a compelling call to action (CTA); your next email could include a customer success story, solar FAQs, or other content, and another CTA.  Newsletters: If you produce a lot of helpful content, newsletters are a great way to keep customers informed about your company and its products after they become a client. Here, it’s important to let your customers “opt out” of receiving your newsletter if they do not want more information.  Promotional emails: Often set up as one-time campaigns, promotional emails can be used to inform both current and potential customers about new products or special discounts. Promotional emails can also be used to highlight upcoming events or deadlines for taking advantage of expiring incentives or rebates. Post-quote follow-up emails: While e-commerce sites have strategies such as “cart abandonment emails,” solar installers should always be prepared with a follow-up email to the client after sending a quote. As most solar buyers will be receiving information from multiple companies, following up post-meeting is a great way to keep customers engaged during the final stages of the pre-purchase side of the sales funnel.  Re-engagement emails: If you haven’t heard from a customer in a while, sending a re-engagement email is a great way to put your company’s name and services back on their radar. Re-engagement emails can be effective when sent to non-converted customers who may want to revisit the idea of solar months, or even years, after an initial meeting.  Post-purchase emails: Finally, post-purchase emails are a great way to keep customers engaged after you’ve won their business. Like a “welcome to the family” email, post-purchase messaging can deliver helpful information about the installation process while also promoting incentives to drive referral business.  6. Make a schedule When scheduling an email campaign, solar companies must walk a fine line between consistency and overbearing messaging. We recommend creating your email schedule based on the unique characteristics of your audience and your campaign goals, and choosing a frequency that can guide action without coming off as spammy.  In the opening email of your campaign, letting your audience know why they are receiving the message can help engender trust. If a customer responds directly to your email, answering as quickly as possible can also help keep them engaged.    While emails can always be manually sent, you may also want to consider automating the process to reduce the number of labor hours required to run your campaign.  Put your email campaign data under the microscope to get the best results. (Photo by Yassine Khalfalli.) 7. Monitor A wise person once said, “An unexamined life is not worth living.” We don't think they were talking specifically about digital marketing, but it certainly fits. Analyzing an email campaign's performance is one of the most vital steps of ongoing marketing success, allowing your company to further implement things that are working and tweak those that need improvement.  Besides the number of converted customers, there are several key performance indicators (KPIs) in email marketing that can be used to analyze success, including: email open rate click-through rate sharing/forwarding rate list growth rate email unsubscribe rate email bounces revenue per email conversion ratio  If the KPIs you choose indicate your emails aren't resonating, reexamine your audience and segments and tweak your messaging. Talk to your prospects and customers on a personal level, addressing their needs, and any updates in policies, incentives, or market changes that might impact their decision. In closing… Email is one of the best communication channels to personalize your solar company’s marketing. By setting goals, segmenting your audience, and sending relevant information to unique email lists, you can help move customers down your sales funnel, convert new clients, and reinforce your brand to generate ongoing business.  Check out some of our other solar marketing resources for more information: Solar Marketing: From Blog Post to Proposal — Strategies to Drive Storage Sales The Ultimate Guide to Generating Solar Leads | Advanced Solar Marketing How to upgrade your lead generation program for the post-COVID era Learn how to generate and send a proposal in Sales Mode https://www.youtube.com/watch?v=Zu-UJBZO0gw&list=PLORbKy08kboqFEURpXTiIcWHanweFnjEY Have more questions about how to market and sell to your customers? Schedule a demo and learn how Aurora can help nurture your leads and grow your solar business.  Click above to schedule a personalized demo. Featured image by Solen Feyissa. ### Complex solar workflows? APIs can help APIs are a powerful tool for solar companies looking to automate and streamline some of those complex processes that are holding your teams back. Whether you’re looking to remove errors and wasted time, improve your customer experience, or something else, Aurora offers a number of APIs to help your company become more efficient.  But, where to begin? Below are some frequently asked questions to help you get started with Aurora APIs. These questions came directly from installers in our latest API webinar, Creating an Automated Process: Integrate & Scale With APIs. To learn more, watch the full webinar on-demand, then read through our API documentation.  Click above to watch the entire webinar on-demand. Quick links: Watch the webinar recording on-demand Take a look at the API documentation Schedule a demo to learn more Aurora API Basics  Can APIs help combine solar designer and door-to-door roles? Yes! This will assist both on the front end and back end for both roles. Whether starting from Aurora or their CRM, door-to-door reps can sync information gathered from the homeowner across systems, without needing to manually re-input data after the conversation. And, they can sync the information in real-time, allowing solar designers to view initial homeowner information quicker, without having to wait for pre-sales information to be entered. Are highly skilled developers needed to integrate Aurora APIs? We do recommend you have a development resource to implement API workflows. We provide engineers who can help guide you through this process, but you will need a development resource to actually build this architecture. What are the response times for the APIs? The response times vary depending on the request you are making, the latency in receiving your request from your data center to ours, etc. We've heard from our customers that Aurora's API response times are comparable to those they see from Google APIs. Is there a plan for more control, features, webhooks, etc., for the legacy Aurora Documents? Our primary focus is on new Aurora API features. Legacy Aurora will still be in place, but no new rollouts are planned. CRM integrations with Aurora API What CRM systems can Aurora integrate with? Almost any CRM that supports 3rd Party API integration. That CRM must also allow for PUT & POST changes against their records and/or make outgoing requests to other services. We'll be releasing a list of the most common CRM platforms we integrate with very soon. One of the main requirements is that your CRM supports an open API, and also accepts incoming requests. Can we push design information such as equipment, or only pull? At this time you can only pull design information that was created in Aurora to your CRM. Can the API hooks retrieve base rates from the job back into our CRM? Background: Base rates are how this installer determines a rep's pay. For example, if their redline is $2.80 and they sell at $3.10, everything else — including finance fees and adders — goes above that. Can Aurora push that information back into the CRM system? Yes, “price_per_watt” field is available in the payload returned by the “Retrieve Design Pricing” endpoint. Aurora API Features Are there diagnostics to catch any issues between the systems? Aurora APIs are built using REST architecture. REST architecture makes it easy to detect when your API requests fail. For example, if your request to create a new project is malformed, Aurora will return HTTP 4xx. Also, we’ve included actionable, human-readable error messages in our response for the most common failure modes we’ve seen over the years. For example, if you provide a malformed project ID with your “Retrieve project” call, you will receive “Expected UUID but received non-UUID value for the follow URL parameters: [:id]” error message. Lastly, our Implementation Engineers and Customer Support Specialists have access to real-time logs for the API calls that you’re making and can help you root cause failures. If I want to automatically import project details using the webhook project_status_changed, will this webhook be fired if the details change, or only if the user changes the dropdown status field? The webhook will fire when the project status changes. Can you use the API run design and performance simulations? Yes, our Design API add-on enables you to build workflows that programmatically trigger the creation of proposal-ready designs in Aurora. Specifically, you can trigger AutoDesigner, Irradiance Analysis, and Performance Simulation runs, and you can use webhook events to notify your teams when the proposal is ready to review in Aurora. Have more questions? These FAQs just scratch the surface. To learn more about how Aurora APIs can help your business, schedule a personalized, no-pressure demo. ### 2023 solar goals (and the products to help you reach them) With the IRA passed, and some real tailwinds at our backs, renewable energy is poised to have another big year. But how can solar installers get a bigger piece of this bigger pie in 2023? To take full advantage of this rapidly growing — and increasingly competitive — market, let’s look at some common goals we’ve heard from installers, and some Aurora products we released in the last year that can help you achieve them. The goal: Increased high-quality web conversions Higher lead conversion rates are a goal across sales teams — whether you’re selling solar, cars, insurance, or virtually anything else. Thankfully, in solar, we have some new solutions that can really move the needle.  Lead Capture AI helps teams capture site visitor's attention with a customized 3D site model of their home and their utility savings. This lets sales teams act faster on high-quality leads, accessing their inputted information directly from the Aurora platform. The latest update gives solar pros the flexibility to add new qualification questions to the lead capture form. See more updates in the Aurora Solar Help Center.  The goal: Speed up sales  Isn’t this goal always near the top of the list? Speeding the time from prospect identification to closed deal is the best way to make sure you install more systems in 2023 than you did in 2022. Aurora AI can help your sales teams deliver a better homeowner experience, one that leads to more systems sold, more quickly. Aurora AI’s collaborative interface lets you demonstrate the solar design for the homeowner’s property — right before their eyes — and collaborate on it with them. Teams can generate roof faces in 30 seconds, quote, and close, all with Aurora AI.  When you get to the proposal, Sales Mode is there. Its interactive, iPad-friendly solar proposal software recently introduced a more intuitive global navigation menu, helping solar reps move more easily through their proposal. https://www.youtube.com/playlist?list=PLORbKy08kboqFEURpXTiIcWHanweFnjEY The goal: Make financing and signing a breeze  When you get close to finalizing a deal, financing and contract signing can be big areas of worry. We released some new features that should smooth both these potential sticking points. Contract Manager helps solar sales reps easily generate deal documents, complete with project details, and send them out to homeowners for easy e-signature.  Plus, Sales Mode’s Mosaic Financial Integration streamlines homeowner financing, increasing close rates with just a few clicks. And stay tuned for more… The goal: Streamline the permitting process  The potential for delays doesn’t end when the deal closes. Aurora’s new Plan Sets Service gives teams on-demand, permit-ready plan sets that can be requested directly from Aurora. Plus, the new AHJ identification and database can automatically identify the AHJ for the project and give them access to a database where they can track requirements in real-time.  Click above to watch the full webinar. The goal: Make designs even more accurate and reduce change orders Updating our LIDAR data to include the new USGS data did a couple important things: It introduced new coverage (from 95% to 98% of the US population) and it refreshed old coverage. With more coverage and more accurate data with higher resolution and point density, teams can now generate laser-accurate solar designs for their customers.  Aurora's latest LIDAR coverage (click to zoom). We also unrolled HelioScope’s new LIDAR feature to help C&I installers speed up their commercial design process.  The goal: Organize and control what teams can access We’ve all been there: Someone who shouldn’t have access to a design goes in and makes a change that affects the sales process negatively. Aurora’s advanced user management features help ensure that the designs sales teams sell are accurate and error free — and only the right people have access to them. ​​ User Roles in Aurora empower businesses with growing teams to effectively manage visibility and access rights across internal teams and dealer partners. Teams in Aurora lets scaling solar businesses manage user groups and project visibility. Together, they help organize and control what teams can edit, helping avoid mistakes and significantly simplifying the process for sales reps.  What’s next As we continue to update our offerings and unveil new features, we’ll deliver more learning experiences through webinars and other accessible content for your team. Here are some links to keep you up to date on what we’re doing to make the entire solar installation process — from sales, to design, to financing, and more — easier and more accurate: Follow us on LinkedIn Check out our resource center Go in-depth with our help center If you have any other questions, schedule a personalized, no-pressure demo. ### 5 proven ways to sell solar in times of high interest rates Inflation and supply chain issues have driven up the cost of just about everything lately, including car payments, groceries, and the price of energy. With the highest inflation rates since the early 1980s, most consumers are now spending more money on the basic necessities of modern life than ever before.  With homeowners pinching pennies to make ends meet, selling solar can be tricky. This is especially true because, along with inflation, interest rates have also risen. Gone (for now) are the days of zero-interest loans to finance those solar systems. “We are moving at light speed from the lowest interest rate environment, I think, in any of our lifetimes to what is certainly the highest in decades,” explains Mike Gilroy, CEO of Sungage Financial.  But, none of this means that solar is no longer a great investment, of course. It’s just that the way we sell it has to acknowledge these facts. During our recent “Demystifying Solar Financing” panel at Empower, solar financing leaders from across the country laid out some winning strategies for selling solar in this high-interest rate environment. Why are loan rates rising? First, it’s important to understand why solar loan rates are rising. We often hear about interest rates going up, but what does that really mean? The Federal Funds Rate, at its most basic, is the cost of money.  “The Federal Funds Rate is the base borrowing cost,” explains Matt Murray, Chief Marketing Officer of Goodleap. “So, every bank is borrowing money overnight and then deciding ‘what do I need to do on top of that to make the money I need to to run a viable business?’” When that rate is low — or even zero — financing companies can offer loans at lower rates, for example, the 0% car and solar loans that were so popular in 2020 and 2021. “In that low-rate environment, it was natural that the industry gravitated toward low, fixed APRs. I think the 0%, 25-year loan was the epitome of that,” Mike says. As the rate rises, the cost of capital for financing companies increases. This is why we’re now seeing loans more in the 5-6% range and greater. If the Federal Funds Rate continues to rise, we can expect the interest rates customers pay to do the same. Again, though, none of this means that solar isn’t a great investment for homeowners. So, let’s get to the strategies. Highlight utility rate increases There’s an old saying: All you can count on is death, taxes, and utility companies raising rates. (Or something like that.) This continues to be true. The US Energy Information Administration (EIA) determined in its short-term energy report, “The US residential price of electricity will average 14.9 cents per kilowatt hour in 2022, up 8% from 2021.” The agency projects electricity costs will go higher still in 2023. Of course, to many of us, 14.9 cents sounds pretty cheap for a kWh. You can check out your specific region on this chart. Spoiler alert: No matter where you’re located, the price of electricity has gone up, and will very likely continue to go up. So, even though a solar loan may be a bit more costly than it was in times with lower interest rates, its value could arguably be even greater when compared to the rising prices of energy overall.   There are a couple questions you can use to bring this home with homeowners: “How has your electric bill changed in the past couple years?” Of course, many customers won’t have their bills from the past couple years, so bring the utility-rate data with you. Then extrapolate out over the life of the system; many customers will be surprised. (Aurora can do this for you automatically.) “How long do you think it will take you to break even?” With many financing options (see below for a specific one) a system can still be cash-flow positive almost instantly, and payback times are often less than the homeowner would guess. Want to highlight high (and rising) utility bills? Sales Mode can help. (Click the image to learn more.) Make sure homeowners know about solar incentives While many homeowners are understandably focused on interest rates and inflation, it’s important to let them know that there are also forces making the end cost of solar cheaper.  Chief among these is the Inflation Reduction Act (IRA). Among other great things, it extends the Solar Investment Tax Credit (ITC) out to 2032, and restores it to its original 30% value. (The ITC was slated to drop to 23% in 2023, and 10% for commercial only in 2024.) “[The IRA] may be the public works project of our lifetime, and it’s thrilling to see how people are beginning to apply it,” John Bumgarner, General Manager of Solar and Storage for Sungage.  So, while interest rates and inflation are currently high, with an uncertain future, one thing is certain: The ITC isn’t going anywhere. And, when you balance higher interest rates with the higher ITC, solar is actually less expensive for many homeowners than when the ITC was scheduled to wind down. Focus on financing options that do make sense While interest rates may be high, there are still incentives you can use to make loans more appealing. For example, no money down. “You can still use the 0 down, 0 out of pocket — customers love that,” Matt says. “Whenever you can say nothing out of pocket, no fees, none of that, people get excited about that.” Putting no money down also makes the cash flow equation that much clearer. While the Day 1 payment savings might not be as compelling as a homeowner wants, with utility rates constantly rising, switching the focus to lifetime savings and short payback times still shows substantial return on investment. “Rather than leading with the APR,” Mike explains, “you can look at total lifetime savings as a way to frame the opportunity and the value.” Here’s an example. This 8.4 kW solar system is financed at 5.99% for 15 years, with no money down. Cost is $28,750. There’s a state tax credit of $1,000 and the Federal Tax Credit comes to $8,625. For the first 10 years, the homeowner also gets SMART program payments based on how much energy they generate. The $8,500 upfront payment is payable over 12 months, and is covered by the rebates in year one.  This delivers a positive cumulative cash flow in a year. Yearly cash flow increases as utility rates rise, then jumps when the loan is paid off in 15 years. Getting creative like this gives consumers more options, and truly highlights the value of solar. “Talk more about annual savings that people are going to see over a period of time — repackaging things, just a little,” Matt concludes. “And then get out there and continue to talk about the incentives that are available for people, whether it be through the ITC at 30% or different state benefits… there are all kinds of incentives.” How much do high interest rates really cost? While it’s good to emphasize lifetime value in this time of high interest rates, some homeowners may still be uncomfortable. Here is a possible opportunity to show that high interest rates shouldn’t be a deal breaker. All other things equal, if the homeowner is financing $15,000 for a solar system for 15 years, the difference in payments isn’t as big as you might think: 6% = $127 per month 4% = $111 per month 2% = $97 per month Of course every dollar counts, but many homeowners hear high interest rates and immediately shut down. But, a $30 per month difference between a 2% interest rate and a 6% interest rate doesn't sound as scary. And for homeowners with heat pumps, electric cars, and other electricity-intensive items, their utility bill may reach into the $1,000s in some months. This shows them that the difference in monthly payment may not be that bad when considering all the other factors. Emphasize resilience While a solar battery may not save a homeowner money on energy costs, its benefits can outshine its expenses in unfortunate circumstances. If a customer lives in an area with frequent blackouts or grid failures, a solar + storage system can keep their home electrified, which is a potentially life-saving feature that is tough to put a price on. “As we saw in Texas in 2021, and still see in California, resilience and reliability is a lot of the motivation [to go solar] in some areas,” Gilroy says. The added benefit is that solar + storage represent larger deal sizes than solar alone. Learn more about how to position storage in your pitch with the Pocket Guide to Selling Storage. Click the image to download our comprehensive guide to selling storage. Focus on lifetime value All-in-all, when you consider its benefits — including increasing home value, utility bill savings, tax benefits, resilience, and more — it’s hard to argue that solar is anything but a solid investment.   With a solar system replacing grid electricity expenses, cost must always be valued against the decades of monthly payments that a homeowner would otherwise pay the utility without a PV system. Even with high interest rates, the break-even point can come quickly, and after that the homeowner is in the black for years to come. Solar salespeople can drive this point home with the customer by showing year-by-year returns, and contrasting monthly payments with and without solar. (Sales Mode can help.) https://www.youtube.com/watch?v=9kID6xQdhLU&list=PLORbKy08kboqFEURpXTiIcWHanweFnjEY&index=17 Learn more solar financing strategies This just scratches the surface of what installers can do to sell solar in these uncertain times. Watch the entire panel discussion to get these financing experts’ thoughts on other ways to sell solar, unique financing options, and even thoughts on dealer fees. https://aurorasolar.com/resources/demystifying-solar-financing/?aurora_blog_cta=image Click above to watch the entire session on-demand. Then check out our Sales Mode YouTube series to get step-by-step information on how to customize your proposals to fit each customer's needs. https://www.youtube.com/playlist?list=PLORbKy08kboqFEURpXTiIcWHanweFnjEY If you have specific questions about your business, schedule a no-pressure, customized demo. Featured image by rupixen.com. ### The 3 questions your solar sales pitch needs to answer Selling solar isn’t easy, but with the right framework, you can make it easier. A good framework can help you effectively address the prospect’s concerns and communicate the value of a solar installation from your company. The Keys to Selling Solar Aurora Solar team members Elliot Goldstein and Kenneth Williams recently discussed practical strategies for improving your residential solar sales, based on their personal experiences selling millions of dollars in solar installations for leading U.S. solar companies. They identify three questions that your sales conversation should answer for every prospective customer: Why does solar make sense for them? Why is your company the best fit to install solar for them? Why should they go solar now? The Solar Objections Throwdown provides real-life strategies to combat real-life objections. Click above to learn more. By building up the potential upsides of going solar, you grab their interest right away while prepping them for the initial cost. It’s crucial to get buy-in on these topics before discussing the cost of the system, which should be the final stage of your conversation.  Price psychology dictates that sticker shock can curb enthusiasm, unless the advantages are well laid-out beforehand. Elliot cautions that, “If they don’t want to get away from their utility yet, you’ll price shock your customer.”  But, if each of these questions is answered well early on, you’re much more likely to win the customer’s business. Here’s how to tackle these topics in your sales pitch. The Most Important Solar Sales Pitch Question: Why Solar? The goals for answering this question: Educate your prospect on how their current electric use isn’t sustainable Mutual, engaging dialogue about your prospect’s situation is critical to compelling them to invest in solar Substantial but easy-to-digest data (such as visuals) helps in driving home your message For the customer that isn’t yet sure if solar is right for them, how do you delve into the value solar offers? One of the best ways is to start with an understanding of the customer’s current challenges with their electric bill. Kenneth Williams points out, “This is a teaching moment for you to educate your prospect on why their current situation is not sustainable. It’s best if you have their bill present or can provide some visuals for them to see how they’re using energy over the year. Before you can pitch solar as a solution with value, your prospect needs to understand they have little or no control over their current utility bill.” Solar software like Aurora offers powerful visual tools you can use to explore your prospect’s current energy consumption with them. This can also be a good starting point for asking the customer about their motivations for considering solar and any concerns they have — so you can tailor your conversation to what they care about most. "If your prospect isn’t talking, you’re not closing the sale." Kenneth explains, “If your prospect isn’t talking, you’re not closing the sale. Solar sales is really about having great dialogue and understanding who you are speaking with and their true reasons for buying solar energy for their home.” Depending on how much information the customer has about their electricity bills, Aurora provides a few different tools for understanding their energy use and spending, including options for uploading interval data if they have it from their utility. If they only have a few recent bills or just know how much they spent in certain months, Aurora’s bill estimator tool can model what their energy consumption likely looks like throughout the rest of the year based on typical usage profiles in their area. Click the image to see how Sales Mode can help you explain your customer's energy bill. This can help the prospect conceptualize how much they're spending and provide a starting point for how solar can provide greater control over their energy bills. Elliot offers this tip, “I love this visual of their kilowatt-hour consumption and monthly cost side by side; it helps me focus their attention on the spikes in their bill.” In fact, in Sales Mode, you can enter as little as one monthly utility bill (of course, the more you can enter, the better) and you'll be able to show the homeowner their consumption throughout the year, as well as how much they can expect those bills to increase over the next 25 years. This puts a customer's potential savings in stark contrast with all that money going to a utility company every month. https://www.youtube.com/watch?v=Rb_Gg_e1_Dk&list=PLORbKy08kboqFEURpXTiIcWHanweFnjEY&index=7 “I like to ask them if they’ve tried to reduce their bill in the past and how that’s worked out," says Elliot. "Many have already tried efficiency upgrades but utility rates have continued to go up as well. As a best practice, I like to pick the highest bill that they have… and calculate what that will be five years from now if the historic rate hikes of about 3-to-5% for most utilities continue.” You can also build trust by consulting with the customer on any changes they have planned that would impact their energy usage — such as plans to purchase an electric vehicle or a pool — and how solar can help them. Aurora’s Consumption Profile tool lets you explore how their bills may change in the future due to these kinds of changes. Aurora's consumption portal has interactive tools to understand the customer's energy usage under different scenarios, such as if they purchase an electric vehicle. Throughout the process, keep that dialogue going and be sure to ask clarifying questions to make sure you’re really understanding the customer’s priorities, goals, and concerns. The Second-Most Important Solar Sales Pitch Question: Why Your Company? The goals for answering this question: Substantiate the positive difference and uniqueness in your company and your competitors Establish trust by using software to support how you’ve accurately arrived at your numbers In addition to communicating the value solar can offer to the customer, you also need to answer the question of why they should choose your company.  How do you communicate what makes your company stand out from the pack in a competitive industry where many homeowners are getting several different solar quotes? Ultimately, how do you establish the trust that your company deserves? Let’s look at each question individually: Why are you unique? You’ll certainly want to emphasize the products and services that make your company unique. Is your customer satisfaction off the charts? Are you using more efficient panels or offering a great warranty?  Why should they trust you with the transition? As the salesperson, you play a key role in communicating how your company will ensure that the solar installation — and the resulting savings they receive — lives up to expectations. Elliot points out, “Using advanced [solar] software can build that trust in why your numbers are accurate. Anyone can make up an estimate that looks good…. but if you can show why your numbers have a solid foundation and why your quote is less likely to change after they sign a contract, that’s one way to leave a lasting impression when your customer is likely to get 3-5 bids.” Aurora's Sales Mode gives you an easy way to personalize your proposals, highlighting the things that make your company stand out. https://aurorasolar.com/blog/want-your-solar-proposal-to-stand-out-customize-it/ Then, designing in Aurora gives you a number of tools to ensure that your proposed solar design — and the resulting energy production and bill savings — are accurate, and giving the customer a walk-through of some of these tools can help them see firsthand the precision and attention to detail that you’re putting into their proposal. Some of these features of your design process that you may want to highlight for the customer include: Your precise 3D model of their house that ensures panels will fit as anticipated and that the design will look the way they expect it to Aurora’s accurate, NREL-validated shading analysis, including the visually striking irradiance map of their home that can help communicate the best places for panels The ability to configure setbacks based on the requirements of their local jurisdiction, which ensure you won’t have to redo their design because of setback violations The precision of Aurora’s energy production and bill estimates A precise 3D model of the customer's home with their solar design and locally required setbacks, is one way to help them understand the strong design processes that differentiate your company. The Third-Most Important Solar Sales Pitch Question: Why Now? The goals for answering this question: Understanding your potential customer’s initiatives plays a critical role in covering the question “Why now?” External factors such as rising utility rates, tax breaks, and limited-time opportunities are great incentives for urgency Trust in the quality of your company’s product, and don’t overcompensate to close a deal A final question you need to answer for the customer is why it makes sense to go solar now. To do this, you need to build a sense of urgency. This could be rooted in their own plans and goals or in external factors. Kenneth advises, “This is where a lot of what you learned from the dialogue with the customer is going to come in handy. Depending on their goals for going solar, they may have their own factors that create a natural sense of urgency so it can help to put things in those terms. Is summer coming up and they’re really trying to avoid those high summer spiking electricity bills? Are they in the process of buying an EV?” Elliot adds, “You can also use external factors, like utility rate increases, to underscore why going solar now may be better than waiting.” Educating your customer on the value of getting grandfathered into a net metering plan can also help, particularly if they’re concerned about waiting for technology to improve. If a robust net metering rate is available to your customer, getting access to that now may result in better financial return over the life of their system than waiting, particularly if the utility is considering future rate changes that will reduce the value of solar. Limited-time promotions and discounts can also build urgency, but Elliot cautions that you should use them wisely. “I see many reps start using these as crutches and end up giving away their commission and the company’s profit. If you’ve built perceived value in your brand, most homeowners are willing to pay more to get quality. I recommend only using discounts to push your sale to close quickly at the end once your customer is bought into you and your company.” An effective solar sales process communicates 1) why solar makes sense (assuming it does for the customer, of course!), 2) why they should choose your company, and 3) why now is a good time to install. Wrapping it Up While there are many sales strategies you can employ to close more sales, framing your sales pitch around these three questions — Why Solar? Why Your Company? And Why Now? — will ensure you answer the fundamental things your customer needs to agree on before they’ll be comfortable moving forward. For more detailed insights on this framework, and many more tips for improving your sales of residential solar, check out The Solar Sales Playbook for Proposals that Close. If you have specific questions about improving your sales processes, reach out to schedule a customized, no-pressure demo.   ### Texas solar incentives for 2023 and beyond Texas is one of the most deregulated electricity markets in the country, with individual utilities and municipalities that offer their own solar incentives at the local level. Pair these with the Federal Investment Tax Credit (ITC), and homeowners and businesses across the state can get significant savings for solar. Below is an overview of a few key solar incentives in Texas. Want to learn more? Check out our Beginner’s Guide to Solar Financial Incentives. Photo by Yuhan Du Utility and local government solar incentives Although Texas doesn’t have state-wide solar incentives or programs, many utilities and local municipalities do offer incentives to help residents and businesses go solar. The Database of State Incentives for Renewables lists over 25 local rebate programs across the state; be sure to check with your utility and local government to see if there are any solar incentives you can take advantage of. Your solar installer will also know the incentives available in your area. Here are just a few examples: Austin Energy: Residential solar customers are eligible for a $2,500 rebate after completing an education course and installing PV panels. And commercial solar installations qualify for one-time checks or monthly credits, with the exact amount based on the energy generation potential of the installation. AEP Texas: Depending on the size of the PV system, residential customers qualify for up to $3,000 in rebates, and commercial customers are eligible for $0.25/W to $0.50/W in post-installation rebates. City of Sunset Valley: Residential customers can get a rebate of $1.00 per watt, with a maximum of $3,000 (3 kW) per household, as long as the system costs $6 per watt or less to install. Texas net energy metering programs Net energy metering (NEM) isn’t technically an incentive, but it can increase the value of rooftop solar significantly. NEM allows utility customers to get compensated for the extra solar energy they produce and give to their utility — usually in the form of bill credits. Several utilities and municipalities offer NEM, including: The City of Brenham’s Electric Tariff Program  TXU Energy’s Renewable Buyback Program Austin Energy’s Value of Solar (VoS) Program Green Mountain Energy’s Renewable Rewards Buyback Program MP2 Energy’s Solar Buyback Program Tax-Based Solar Incentives Solar Tax Exemption Under Texas’s Renewable Energy Systems Property Tax Exemption law, homeowners who go solar are “exempt” from paying higher property taxes as a result of their PV installations. Adding solar panels can increase the value of your home (sometimes by a lot), and by taking advantage of this property exemption rule, you can save even more money. Property Assessed Clean Energy (PACE) PACE is a loan option that allows property owners to finance the up-front cost of their solar installation (or other eligible improvements) through their property taxes. Several cities and counties in Texas offer PACE, learn more about them here. The Federal Investment Tax Credit (ITC) While it is not a Texas-only solar incentive, the federal investment tax credit (ITC) is one of the most important initiatives supporting residential renewable energy growth in the United States today. Recently extended by the Inflation Reduction Act of 2022, the solar ITC allows system owners to deduct up to 30% of the total installation costs from their federal income tax liability.  Residentially, the 30% tax credit for solar panels is active through the end of 2033. For commercial installations, system owners applying for the 30% tax credit after 2025 will only be eligible to receive the full amount if certain sustainability initiatives are met and verified by the Department of Treasury.  To illustrate a simple example for homeowners, let’s say that you install a system with a total project cost of $13,500. As 30% of $13,500 is equal to $4,050, the system owner would then be eligible to deduct $4,050 from their federal income tax liability.  If your customer’s federal income liability is less than 30% of their total system costs, it is helpful to know that the solar tax credit can be applied both during the year of the installation as well as the following. For instance in the example above with a $4,050 tax credit, the system owner could elect to apply a $3,000 credit in 2023, with the remaining $1,000 against their federal income liability in 2024.  Notes: You can only roll over a tax credit for solar panels once. After the decade-long extension, the residential solar ITC is now planned for reduction to 26% in 2034, 22% in 2035, and total elimination in 2036.      If you’re thinking about installing energy storage at the same time, it’s also eligible for the ITC. Here's one good ITC primer. Download The 5 Solar Buyers Guide to get insight on what Texan solar buyers gravitate toward which of these Texas solar incentives most in 2023. Click the image to learn what each type of solar buyer is looking for in their installation. PSA: Over half of the states have a solar access law that protects a homeowner’s right to go solar, including Texas, California, and Florida. Texas’ Solar Rights Law forbids homeowners’ associations (HOAs) from preventing or enacting unreasonable restrictions on residents from installing solar. There are instances where Texas law does allow HOAs to restrict solar, e.g., if they’re installed without prior approval or in a manner that voids the warranty, if the ground mount extends above the homeowner’s fence, and if the system has an element that isn’t silver, bronze, or black in tone. If you are part of a HOA and are looking to go solar, check out our guide on how to expedite the application process.  Want to learn more about how to model incentives in your pitch? Schedule a personalized, no-pressure demo.  Featured image by Daniel Lloyd Blunk-Fernández. ### Contractors: How to get started installing solar panels Table of Contents Getting Certified to Install Solar PanelsSolar Panel Site EvaluationSolar Panel Logistics & PaperworkSolar Panel Equipment SelectionSolar Panel InstallationFinal Inspection Learn more about the fundamentals of solar by subscribing to our blog. Solar power in the United States is booming. It has ranked first or second in new U.S. electric capacity each year since 2013, and US-installed capacity is quickly approaching 150 gigawatts (GW). The demand for solar installers has grown along with it. Solar installation is now among the fastest-growing professions in the United States, projected to enjoy a 52% growth rate between 2019-2029 — offering a promising prospect for contractors looking to expand their business into this exciting sector. But you can't just go out and buy a panel, bolt it to the roof, and hotwire it to a fuse box. It requires quite a bit of planning, a wealth of permits, and extremely careful execution to flip the switch on a new solar panel installation and a fulfilling career as a solar installer. Getting certified to install solar panels Installing solar panels is nothing to fool around with: You're dealing with high-voltage electricity, structural integrity, legal acrobatics, inspections, and your own reputation as an installer. Getting any of these aspects wrong could, at best, result in a bad review, and, at worst, cause harm to persons or property. Crossing your T's and dotting your I's is essential to ensuring safe, quality installations. Before even thinking about installing solar panels, you should get certified. Certification isn’t mandatory for installers, but the myriad benefits are well worth the investment. Solar certification provides valuable training and knowledge that you’ll need in planning and on the job. It’s also an important way to promote customer confidence and can allow you to charge a premium for your services. In addition, it may enable you to operate in more than one municipality or state, increasing your competitiveness. The North American Board of Certified Energy Practitioners (NABCEP) is widely recognized in the industry and offers an array of certifications. If you'd like to learn more about becoming NABCEP certified, you can read this post about how Aurora Solar employees became certified in as little as two months! Solar panel site evaluation You're certified, you’ve built your brand, and have landed your first prospective client. It's time to take the first step towards your first solar install. For a successful solar installation, the site needs to be evaluated to ensure the best panel placement, taking into account shade, sun angle, weather, and more. Thankfully, planning a solar installation is easier than ever thanks to Aurora Solar’s remote planning software. Step 1: installation company evaluation In a bygone era, solar installers had to conduct on-site visits to evaluate solar output potential. Those days are fading fast. Aurora's solar design software estimates a proposed location’s potential solar output and generates complete solar designs and sales proposals with just an address and an electric bill. Simplify your solar projects with Aurora Solar’s solar design software. Schedule a public demo with our sales team today! Step 2: engineering evaluation Once a contract is signed, the installer will have to put boots on the ground to ensure the site is ready to go solar. Until recently, an engineer had to conduct a second site visit to evaluate site compatibility. Nowadays, most projects only require one visit after remote evaluation is complete. In this visit, the installer will inspect roof integrity and the electrical configuration of the home to make sure the 3D renderings from Step 1 will actually work on the real site. Solar panel logistics & paperwork There’s no way around it, solar panel installation does require some paperwork, and many customers expect their installers to handle pencil-pushing for them. Several intuitive apps can help navigate the process, making permitting, bill of materials, and installation easier. Here's some of the paperwork you should expect: Permits Solar panels are treated like any other improvement to a home or business and thus require local building permits. It used to be up to you, the installer, to identify the Authority-Having Jurisdiction (AHJ) for each project — but Aurora can now help with our automatic AHJ identification and database. You also need to know the various permitting requirements and ensure your project meets them. The permit process will include: Permit from local building department(s), which typically includes a site plan outlining panel location, mounting configuration, wiring diagrams, grid connection details, and other factors. Paperwork filed to local utilities, usually including a “net metering” agreement, a contract outlining the terms of electric rates after installation, and compensation for surplus energy sold back to the utility. A quick word on change orders. Simply put, a change order is a document recording a change to an original construction contract. A permit may require changes to your original plan, and those changes will be reflected in the final project cost. Nearly half of solar installers reported change orders impacted 10-30% of their projects, and about seven percent see change orders affect over half their projects. Reducing change orders allows the installer to give accurate quotes and stick to them, avoiding unforeseen expenses and legal hurdles later on. Aurora Solar offers permit-ready designs for installers, helping you avoid change orders and deliver the most efficient system possible. Funding and incentives Going solar has never been more affordable. New installations pay for themselves in as little as five years, and produce free and clean energy for two decades or more. Plenty of incentives exist making solar even more affordable, and good installers know what they are and how to secure them for their clients. Federal Solar Incentives. The beloved Federal Solar Investment Tax Credit (ITC) got a long-term extension and a return to greater benefits with the passage of the Inflation Reduction Act. Residential solar installations and battery storage get a 30% tax credit until step down begins in 2033, with commercial solar and storage enjoying a 30% credit until 2025. State Solar Incentives. State solar incentives can be claimed in addition to the Federal  ITC. Like the ITC, state incentives are generally calculated as a percentage of the system's cost. Most states require minimum costs to apply, and credit amounts vary greatly by state. Local Solar Incentives. Many local and state governments offer other financial incentives for solar. Property-Assessed Clean Energy programs, or PACE, represent money set aside by participating local and state governments and made available to PACE lenders, who then issue funds to homeowners or businesses looking to make renewable energy improvements. Rebates. Many state and local governments, utility companies, and solar suppliers offer cash rebates to encourage solar energy. Rebates can offset the cost of new installations by 10-20%, and vary by region and supplier. Solar Renewable Energy Certificates (SRECs). SRECs put a dollar-value on non-power aspects of solar electricity generation, such as environmental and social co-benefits. Enrolled producers earn SRECs per megawatt of clean energy produced, and can sell their credits to help offset solar installation costs. Use this tool to find SREC programs to help your customers make the most of their investment in solar energy. Other Clean Energy Financing. Other financial incentives exist on a community and organizational level to help offset solar installation costs. Types, eligibility, and locations vary greatly. Use the DSIRE database to explore various state and federal credits, rebates, SRECs, and other incentives rewarding homeowners and businesses for going solar. Solar panel equipment selection With the pencil-pushing done, it's time to get back to the fun stuff. Once you've secured all the paperwork and ensured your customer is getting all the financial incentives available, it's time to start shopping for the right equipment. Aurora Solar offers a vetted database of solar panels and components to suit your project's needs, as well as automated planning software to help you “string” your panels for maximum efficiency. Solar panel installation It's all led up to this moment: Time to get those panels up and running! With the planning and logistics in place, permits secured, and equipment delivered, you're ready to install. The process will now be relatively straightforward. First up is constructing the platform. Roof or grounds prep. You'll start by making sure the surface where the panels will be mounted is ready. Solar panel mounting platform and conduit. Next, you'll build a platform to mount the panels and run wiring conduit through the ground and/or buildings. You may need to install mounting hardware for batteries and inverters, which should be done along with the panel mounts and platforms. Mounting the panels. Angle brackets will be used at the panels' mounting points, starting with the front brackets first. Before tightening, make sure the panel is even. Wiring. Next, panels will be strung together and joined at a junction or fuse box. From there, inverters are installed on the panels, and the wiring is fed through conduits and into internal control modules, then into the home. Other components, such as batteries or power meters, may also be installed depending on your client's needs. If you're not a certified electrician, it's strongly recommended that you subcontract any electrical work out to a professional. Always take extreme caution when working with potentially live electrical components. Solar energy is cool, but not when you're on the business end of a hot wire. Grounding. Properly grounded panels ensure the whole system isn't fried in the case of a power surge. Because installation can move quickly, it's essential to have impeccable planning and processes set up before you pull out your toolbox. Aurora's solar sales and design software ensures the most efficient installation process possible. Want to learn more about how to get started in the world of solar installation, download our free guide, PV Education 101: A Guide for Solar Installation Professionals. Click the image to download the full guide in printable form. Solar panel final inspection Before flipping the switch, you'll need a final inspection and approval. A local planning official will double-check your work before giving the municipal greenlight. If the system is grid-tied, the local utility will conduct its own inspection. If no issues are found, the system is ready to go live.  Want to learn more? Schedule a personalized, no-pressure demo to get all your specific questions answered.  FAQs Is the solar panel business profitable? The solar business is good business, especially for small contractors installing residential solar. Solar installers are among the fastest growing occupations in the US with a median annual income of $47,670. In fact, jobs in the solar energy solutions industry are expected to grow by nearly 30 percent by 2030, signaling a stable employment sector. What are the steps to installing solar panels? Installing a solar panel system has a number of steps, including: Site evaluation System design Permitting Ordering equipment Installation Inspection Utility connection What do you need to know before installing solar panels? Each state and even separate municipalities have their own requirements for solar panel installation technicians. Generally, a solar installer must meet the following requirements: High school diploma (not always required) On-the-job training or apprenticeship up to one year Contractors license in some states Certification in some states What are the next steps after installing solar panels? After a solar system is installed, there are a few more steps before it can go on line: City or county inspection Utility installation of bi-directional meter System activation System demo ### 2023 Solar Goals: Improve solar leadership There’s one thing great leaders consistently do: learn. Whether your company is small but growing quickly, or a market leader looking to take the next step, great leadership is a key component to success. To help get us all ready for a strong, to quite strong, 2023, we’re highlighting resources to help solar installers meet, and exceed, your goals in the coming year and more.  In this edition, we look at leadership and how you can take advantage of all the opportunities ahead. #1 The title of this discussion among solar leaders says it all: Leading Through Turbulence and IRA Opportunities. If that doesn’t describe the “solarcoaster” we don’t know what does. https://aurorasolar.com/resources/leading-through-turbulence-and-ira-opportunities/?aurora_blog_cta=image #2 Great leaders need to be informed. This presentation by Bill Parsons, the Vice President of Federal and State Affairs at American Clean Power, is one of the best resources about the IRA that we’ve seen. https://aurorasolar.com/resources/welcome-and-keynote-address-unpacking-the-inflation-reduction-act-and-its-opportunities/?aurora_blog_cta=image #3 NEM-3, or the Net Billing Tariff, is perhaps the biggest news of 2022 for California solar. This resource lays out the basics, and much more. https://aurorasolar.com/blog/cpuc-voted-californias-net-billing-tariff-nem3-is-now-final?aurora_blog_cta=image #4 And be sure to check out our full NEM 3.0 Resource Center for all the news, analysis, and more you need to navigate this huge change to California solar. https://aurorasolar.com/nem-3/?aurora_blog_cta=image #5 Finally, download our Ultimate Solar Leadership Bundle for insightful panel discussions with some of the best leaders in the solar industry, and more. https://aurorasolar.com/resources/the-ultimate-solar-leadership-bundle/?aurora_blog_cta=image Looking for more? See our other posts in the series: Up your solar sales gameStreamline solar operationsCommercial and Industrial (coming soon) ### 2023 Solar Goals: Streamline operations With 2023 on the brain, the solar industry is faced with the challenges of a potential recession, but is buoyed by the Inflation Reduction Act — complete with the 10-year extension of the solar ITC — and a real momentum for clean energy. On the whole, solar installers are geared up to grow their businesses — an optimism that’s one of the things we love most about solar. To help get us all ready for a strong 2023, this series will highlight resources to help solar installers meet, and exceed, your goals in the coming year and more.  Our first installment was resources for upping your solar sales game in 2023, and beyond. In this edition, we look at making your solar business more efficient by streamlining your operations. #1 We’ve all heard the term “lean business”. But what does that actually mean, and how do you make your solar business more lean? Glad you asked. This webinar answers those questions and more to help you run a more profitable business. https://aurorasolar.com/resources/more-profit-less-costs-how-to-run-a-lean-solar-business/?aurora_blog_cta=image #2 Automating  processes where you can is a key way to up your business’s efficiency. But how? And where? Check out this webinar to learn how to automate communications throughout your organization in a streamlined and predictable way. https://aurorasolar.com/resources/creating-an-automated-process-integrate-scale-with-apis/?aurora_blog_cta=image #3 You knew it was coming… any business looking to be more efficient has to investigate AI. In solar, there’s proven AI tech that can help you right now. Learn more in our comprehensive whitepaper on how you can use AI to your advantage. https://aurorasolar.com/resources/aurora-ai-validation-study/?aurora_blog_cta=image #4 We can all agree that change orders are… inefficient. Reducing them even a little bit has serious benefits for your company’s efficiency, not to mention your bottom line. See how Semper Solaris reduced change orders and redesigns by 99%. For real. https://aurorasolar.com/resources/how-semper-solaris-reduced-change-orders-redesigns-on-solar-jobs-by-99/?aurora_blog_cta=image #5 Using solar software is a key way to increase your efficiency. But what features should you look for? Which ones are absolute must haves? The Big Book of Solar Software Must-Haves lays it all out in an easy-to-digest format. https://aurorasolar.com/resources/the-big-book-of-solar-software-must-haves/?aurora_blog_cta=image Looking for more? See our other posts in the series: Up your solar sales gameImprove solar leadershipCommercial and Industrial (coming soon) Then investigate our Content Library for yourself. There’s something in there for every company, in every stage of growth. Featured image by BoliviaInteligente. ### 2023 Solar Goals: Up your solar sales game It seems like we say it every year, but it feels especially true this time: 2022 was quite a year for solar. The solar industry is faced with the challenges of a potential recession, but is buoyed by the Inflation Reduction Act — complete with the 10-year extension of the solar ITC — and real momentum for clean energy. On the whole, solar installers are geared up to grow their businesses — an optimism that’s one of the things we love most about solar. But wanting to grow and actually doing it are two different things. This series will highlight resources to help solar installers meet, and exceed, your goals in the coming year and more.  Our first installment focuses on solar sales. Without further ado, here are our top 5 resources to kick your sales into high(er) gear in 2023: #1 You can’t sell solar if you don’t know who you’re selling to. Our 5 Solar Buyers interactive guide details everything you need to know about the main types of solar buyers: What they care about, why they’re considering solar, and what specific benefits you should include in your pitch. https://www.aurorasolar.com/resources/the-5-solar-buyers-guide/?aurora_blog_cta=image #2 One thing all great solar sales pros can do is turn solar objections from a “no” into a “where do I sign”. In the Ultimate Guide to Solar Sales Objections, 5 solar sales veterans give you their best answers to 5 of the most common sales objections we hear from homeowners. https://aurorasolar.com/resources/the-ultimate-guide-to-solar-objections?aurora_blog_cta=image #3 Once you’ve read the guide, check out our 2022 Solar Objections Throwdown. Our 5 solar sales experts are back to answer 5 more common objections. https://aurorasolar.com/resources/the-2022-solar-objections-throwdown/?aurora_blog_cta=image #4 One often overlooked way to increase solar sales is by expanding your offerings into “solar adjacent” products and services. Our Solar Plus: Expanding Your Business With Solar-Adjacent Products session looks at industry trends, tips to get started, and much more. https://aurorasolar.com/resources/solar-plus-expanding-your-business-with-solar-adjacent-products/?aurora_blog_cta=image #5 To close more deals you need two things: to generate more leads, and to convert more of those leads into solar sales. This webinar demonstrates in-depth, with specifics, how tools like Lead Capture AI can help you accomplish both. https://aurorasolar.com/resources/capture-high-quality-web-conversions-with-lead-capture-ai/?aurora_blog_cta=image BONUS: Learn how to sell with Aurora in 20 minutes and how to generate more (and better) leads in our digital-first world in our Ultimate Solar Sales Bundle. One download, four great resources. https://aurorasolar.com/resources/the-ultimate-solar-sales-bundle/?aurora_blog_cta=image Looking for more? Investigate our Content Library for yourself. There’s something in there for every company, in every stage of growth. Then see our other posts in the series: Streamline operations (coming soon)Improve solar leadership (coming soon)Commercial and Industrial (coming soon) With that, we’ll let you get to it. Happy New Year and ABC. Featured image by Moritz Knöringer. ### UPDATED — CPUC Voted: California’s Net Billing Tariff (NEM 3.0) is Now Final April, 2023 UPDATE The Net Billing Tariff — commonly known as NEM 3.0 — has taken effect. Please visit our NEM 3.0 resource page all the latest information. Here are some quick links for further reading: How to sell solar in 2023 despite NEM 3.0California Net Billing Tariff (NEM 3.0): frequently asked questionsShould your PV systems face west with California's Net Billing Tariff?Explaining and modeling California's Net Billing Tariff (NEM 3.0)Contact us to quickly run through any additional questions On December 15, 2022, the California Public Utilities Commission (CPUC) voted on and passed the Net Billing tariff (NBT, also commonly referred to as NEM 3.0). April 14, 2023 is the last day to submit an interconnection application to enroll into NEM 2.0. Click above to learn more about selling solar under NEM 3.0. Original blog below Very little changed between the NEM Proposed Decision published last month (which we analyzed here) and the final version that passed. It still maintains a reduction of 55%-80% on the credits customers receive for the extra solar energy they produce and send to the grid. It also still includes a $14-$16 monthly charge from the mandatory switch to a time-of-use rate for solar customers, uses the Avoided Cost Calculator (ACC) to determine and calculate 576 different NEM credit values in a year, and makes no retroactive changes for NEM 1.0 and NEM 2.0 customers. Some of the changes that made it into the final version of NBT include: A nominal increase in PG&E’s residential and low-income export adder, from 1.8 to 2.2 cents and 8.7 to 9.0 cents respectively to correct for a data error in the Proposed Decision. Adders will still step down 20% each year until they reach zero.Commercial customers enrolling into NBT / NEM 3.0 during the first five years will now get a nine-year lock-in period, instead of five, i.e., their hourly export values for the first nine years are locked-in, using the first nine years of forecasts in the ACC. Commercial customers still do not receive any ACC adders.An expansion of the definition of “low-income” customers; single family residential customers in disadvantaged communities and tribal land will now be eligible to receive the higher export rate adder.All solar customers submitting applications to get onto NEM 2.0 must “submit final building permit sign off and electrical clearing by the authority having jurisdiction (AHJs)” within three years, i.e., their residential or commercial PV systems must be built within three years of the application date to keep NEM 2.0 eligibility. Comparing NEM 2.0 and the Final Net Billing Tariff With Aurora We ran (workaround) simulations in Aurora of a typical residential solar installation in PG&E, SCE, and SDG&E territories — the territories impacted by the change — to help provide context on the effects of the Net Billing tariff. We modeled two systems:  An ideally-oriented, unshaded system to show the best possible payback periods A larger system with a lower Total Solar Resource Fraction (TSRF) at 80% that represents more common installations that, for example, don’t have a south-facing roof or have shade losses Under NBT, the payback period for ideal systems is close to 7 years, while the payback period for typical systems is roughly 8.5 years — 1.5 years longer. In both cases, for a near 100% energy offset design, the payback period increases by 1.8 to 2.7 years. Notes: Pre-solar customer and the post-solar NEM 2.0 uses schedules E-TOU-C, TOU-D-4-9PM, and TOU-DR1 for PG&E, SCE, and SDG&E, respectively. Post-solar NBT uses E-ELEC, TOU-D-PRIME, and EV-TOU-5 as specified by the final decision. The payback here is the “time to payback” — the time it takes to break even given all cash flows, rate escalation, panel degradation, etc. — and it differs slightly from the CPUC’s “simple payback” which only uses year-1 bill savings. Our help center article details how to approximately model Net Billing tariff. For more NEM related resources, bookmark our Net Billing Tariff (NEM 3.0) resource center — we will be updating this page regularly in the months to come.  Want to learn more about how NEM changes may affect your business? Schedule a personalized, no-pressure demo to get all your specific questions answered. ### LIDAR in HelioScope FAQ: Your C&I solar questions answered LIDAR — light detection and ranging — uses lasers to measure the size, shape, area, and other physical characteristics of proposed building sites. It sounds like it’s straight out of a science fiction movie, but it’s an important technology for the solar industry right now.  LIDAR has been helping Aurora customers streamline project design, eliminate errors, and reduce change orders for years, and now it’s available to HelioScope customers. As valuable as LIDAR is for residential solar, its ability to streamline C&I projects is game changing — helping with everything from site identification to design. In a recent webinar, we gave a demo on how LIDAR for HelioScope works. But we know you still have plenty of burning questions. Based on questions we received at the webinar, and early user feedback, we’ve created this FAQ to help you get started.  Click above to watch the entire webinar, including a demo. The basics What is LIDAR? Light Detection and Ranging (LIDAR) uses lasers to measure the size, shape, area, and other physical characteristics of proposed building sites. These measurements can then be used to generate highly accurate 3D images of landscapes, structures, and other features. LIDAR is now in Beta for HelioScope’s enterprise customers.  https://aurorasolar.com/blog/want-laser-focused-ci-solar-designs-lidar-can-help/ What is LIDAR in HelioScope’s coverage area?  HelioScope’s new enterprise feature uses Aurora's LIDAR data set — one of the most accurate data sets in the market. It covers 98.6% of the US and boasts an average point density from 9.2-12.8 points per square meter. (Click here to learn more about what these numbers mean.) Is LIDAR in HelioScope available for international projects? HelioScope’s LIDAR feature currently has limited coverage in other countries.  Is there a map of the LIDAR for HelioScope coverage area? Yes. You can view the density data for any address, and the coverage map below.  On LIDAR data & designing dimensions… How are the dimensions of the area determined with the LIDAR data?  Based on the objects you draw in HelioScope — the roof itself, and also obstructions like skylights, parapet walls, and hvac vents — the LIDAR coverage will adjust, up to a maximum of about 450 meters X 450 meters. How do we know when the point cloud data was provided? You can view the data source info of any address, including dates, using the coverage map here.  On building heights & surfaces… Do building heights need to be included on the field segments if LIDAR is on? What about if it is off? You can automatically adjust your Field Segment height to the LIDAR data. Can you use the LIDAR to design an array on a vertical wall or other surface? Yes! Contact us to learn more details. On shading… Is it possible to use the tree line existing in the LIDAR surface as a shade object? Yes, you can use LIDAR to model shade from a tree line. When enabled, does the LIDAR mesh/point cloud cast its own shade? The shade is only cast by elements drawn, like field segments, keepouts, and trees. How does HelioScope’s LIDAR data pair up with shade data (i.e. shade reports) and actual energy production figures? LIDAR is only a guide for drawing the elements, like field segments, and getting their heights more accurately. The shade is determined only by the elements drawn. On LIDAR’s fit to topology & slope… Does HelioScope’s LIDAR data provide slope information? LIDAR will show the slope of any surface. You'll use the HelioScope drawing tools to measure the slope. Can we set the PV array to follow the topology? Not at the moment. LIDAR fits to sloped planes only. Will slope analysis be available in the future? Will we be able to design sites with exclusionary zones given different % grades? For example, “Do not put panels in areas with a north facing slope greater than 0%.” This is a feature request that we are working on. Please check back for updates, and subscribe to our Feature Update Newsletter. On third-party tools… Will we have access to the Google Street Measurement tool from Aurora on HelioScope? This feature doesn't include Aurora's street measurement tool. Is HelioScope’s LIDAR data mixed with Google Elevation Data? Yes. HelioScope’s LIDAR feature includes Google 3D data.  On data imports… Can I use my own LIDAR points? At this time there isn't an option to use your own LIDAR data points via import or otherwise. When will we be able to import 3D imagery into Helioscope, specifically for ground mount systems? We are committed to improving Helioscope and building the long awaited features like 3D ground mount imagery support for our customers. We don’t have a definite timeline for this feature yet. Please subscribe to our Feature Update Newsletter to stay updated on new features and capabilities. On HelioScope’s LIDAR pricing & waitlist… Is LIDAR included in Helioscope's standard license, or does it require an additional fee? LIDAR in HelioScope (in Beta) is an enterprise feature. To learn more about the benefits of an enterprise subscription, please reach out to customer.success@helioscope.com. How do I sign up for the LIDAR waitlist? Follow this link to sign up for HelioScope’s LIDAR waitlist today! Have a question that wasn’t answered above? Here are some more LIDAR in HelioScope resources. Check out the HelioScope help doc Watch the replay of our recent LIDAR in HelioScope webinar  Read our LIDAR in HelioScope how-to article Contact HelioScope to try out the new feature for yourself Click above to watch the entire webinar, including a demo. ### UPDATED — CPUC Releases New NEM-3 Proposed Decision: Key Changes You Need to Know April, 2023 UPDATE The Net Billing Tariff — commonly known as NEM 3.0 — has taken effect. Please visit our NEM 3.0 resource page all the latest information. Here are some quick links for further reading: How to sell solar in 2023 despite NEM 3.0California Net Billing Tariff (NEM 3.0): frequently asked questionsShould your PV systems face west with California's Net Billing Tariff?Explaining and modeling California's Net Billing Tariff (NEM 3.0)Contact us to quickly run through any additional questions Click above to learn more about selling solar under NEM 3.0. Original blog below On November 10, 2022, the California Public Utilities Commission (CPUC) released their follow up proposed decision (PD), detailing revisions to California’s Net Energy Metering (NEM). Our team reviewed the 240-page document so you don’t have to. But, if you’re curious, the full CPUC proposed decision can be found here; it replaces the December 2021 proposed decision. As written, the proposed Net Billing tariff (commonly referred to as NEM-3) would: Reduce the credits solar customers receive for the extra solar energy they produce and give to the utility by 43%-80% on day one of the Net Billing tariff, depending on the utility provider. All NEM credit reduction will grow to 55%-80% over the lifetime of the system as rates escalate and the ACC compensation stays flat.Non-residential and low-income customers will see an even steeper decrease on day oneExtend the payback period by ~50% longer for residential customers in year one; we expect it to stay close to a nine-year payback period over timeTack on a $14-$16 monthly charge for residential solar customers because they must switch to an existing time-of-use electrification rateIncrease monthly electricity bills for low-income solar customers even more, on top of the estimated reduction in NEM credits of 0-80%. They will no longer receive both their discounted rate and NEM credits as they had on NEM-2, only NEM creditsNo changes for NEM-1 and NEM-2 customers. Any customers who install solar before the Net Billing takes effect will be grandfathered into NEM 2.0 for 20 years. It’s important to remind ourselves that this is not final. It’s very likely changes will be made between now and when the CPUC votes on the final decision for California’s NEM. The next two scheduled CPUC voting meetings are December 15, 2022 and January 12, 2023. If a PD vote is held on December 15, the effective date is April 23, 2023. Continue reading for more details on the key proposed changes. We included a (workaround) simulation in Aurora of a home in PG&E territory to help provide more context, as well as information on how you can help push for a better NEM proposal — one that doesn’t make it harder for people to go solar, allows for sustainable standalone solar and solar+storage growth, makes it easier for low-income communities to afford a modern life necessity (electricity), recognizes the true cost and benefits of solar for everyone, and does not fall for the “cost-shift myth”. November 2022’s key proposed changes to NEM NEM credits will be based on hourly export values calculated from the Avoided Cost Calculator (ACC). There are 576 different NEM credit values in a year:12 months x 24 different hours in a day x 2 (weekday vs weekend)This applies to all customers who enroll into Net Billing tariff or NEM, including any residential, commercial, and low-income customers enrolled in California Alternate Rates for Energy (CARE) or the Family Electric Rates Assistance programs (FERA)The hourly export values in the ACC are forecasts, and the actual export rates in the Net Billing tariff will be “set at averaged monthly values for each hour” with different values for weekdays and weekendsEvery two years the hourly export values will be updated and applied to new customers Estimated Year One NEM Credit Reduction (Future years will be a larger % reduction) PG&ESCESDG&EResidential70%54%80%Low-Income22%0%69% Residential solar customers that enroll in the new Net Billing tariff during the first five years will have their NEM hourly export values “locked” in for nine years, using the ACC hourly export values from their interconnection year; commercial customers will get a five-year lock-in period.Example: A residential customer who joins Net Billing tariff during the first five years won’t have to worry or have their hourly export values change each time the ACC is updated. Their hourly export values for the first nine years are locked-in, using the first nine years of forecasts in the ACC. For any solar customers who join five years after Net Billing tariff has been implemented, e.g., in 2030, there is no lock-in period. Their hourly export values will update with the latest ACC.Customers can choose to leave their locked-in export values if the future ACC values are higher than their locked-in rate“Lock-in” period is tied to the original owner, not the system, i.e., if the owner moves or someone else takes ownership of the system, the lock-in period is lost. The one exception is if the new owner is or was a legal partner — spouse, domestic partner, etc.  Residential solar customers must switch to an existing time-of-use electrification rate and pay the associated monthly charge of $14-$16. Customers have the option to select critical peak pricing or peak day pricing rates, and additional eligible rates can be added later.PG&E: E-ELECSDG&E: EV-TOU-5SCE: ​​TOU-D-PRIME For the first five years of the successor tariff, the ACC Plus will be available as the “glide path” for eligible residential solar customers — a fixed cents per kilowatt-hour (c/kWh) export adder will be included into the ACC-based hourly export credits. Hourly ACC export value + export adder value = compensation for energy exportedACC Plus is not available for new construction, commercial customers, or SDG&E residential customersValue of the export adder will step down 20% at the end of each calendar year (December 31st) until it phases out completely at the end of year five, e.g., PG&E residential customer joining in year two will get an adder of $0.014 ($0.018*0.8) for nine years PG&ESCESDG&EResidential$0.018$0.0400Low-Income$0.087$0.0930Non-Residential000 When the ACC Plus phases out, PG&E residential and low-income and SCE residential and low-income will see a larger NEM credit reduction change, compared to SDG&E customers Estimated Year One & Ten Year NEM Credit Reduction PG&ESCESDG&EYear One: Residential75%54%80%Year Ten: Residential78%68%83%Year One: Low-Income22%0%69%Year Ten: Low-Income62%52%73% True-up will be done annually, based on the customer’s interconnection date. Customers can make a one-time request to change their true-up date. From our research, the optimal months for solar customers to do a true-up are March and April. Customers will need to pay their monthly electricity bill in full each month.Interconnection date is defined as “the submission date of an application that is free of major deficiencies and includes a complete application, a signed contract, a single-line diagram, a complete California Contractors License Board Solar Energy System Disclosure Document, a signed California Solar Consumer Protection Guide, and an oversizing attestation (if applicable).” Comparing NEM-2 and Net Billing tariff with Aurora For example, let’s look at a home in PG&E territory on E-TOU-C rate that uses 12,300 kWh of energy a year (an average of 1,025 kWh a month) with a standalone 9 kW PV system positioned with some shading, offsetting 103% of the home’s annual energy usage. The monthly bill savings would drop 58% and extend the payback period by about 3.55 years (62% longer). $ Bill Savings/mo% Bill SavingsPayback PeriodNEM-2$35193%5.7 yearsNet Billing$20354%9.3 years There is still time to influence the outcome of NEM This proposed decision is not final. Here are some things you can do to help: The campaign to sign your public comment to Governor Newsom and the CPUC is still running, if you haven’t signed it yet, do it now here.Solar companies: have you already joined the list of companies endorsing the campaign to Save California Solar? If not, you can easily do it here.Stay tuned by following CALSSA’s LinkedIn page for in-person events and updates. A very special thank you to Andrew Gong (our senior research engineer) for helping with modeling and being an all-around rockstar! ### The basic principles that guide PV system costs Welcome to the final installment in our six-part series on Solar PV Installer Basics 101 – a comprehensive guide designed to help installers navigate the industry’s fast-evolving solar terrain. This article breaks down the various costs associated with installing solar photovoltaic (PV) systems for customers. Understanding how these expenses work is important for two essential reasons: Your customers will use these costs to determine whether the potential savings make going solar a worthwhile investment. Identifying the expenses in your operations allows you to cut certain costs, which can help make you more competitive while also improving your profit margin. Click the image to download the full guide in printable form. Costs associated with a PV system In order to determine a customer’s financial returns, it is important to have a solid understanding of the basic economics that dictate PV system costs. There are two general categories of expenses – capital costs and operations & management (O&M) costs. Capital costs Capital costs refer to the fixed, one-time expenses associated with designing and installing solar PV systems. These can further be categorized into hard costs and soft costs: Hard costs cover expenses related to the physical equipment that goes into a solar PV system – including modules, inverters, balance of system (BoS) components, optional batteries, and even electric-vehicle charging. Soft costs include intangible expenses stemming permitting, taxes, financing, customer acquisition, and the actual installation labor itself.  According to the Solar Energy Industries Association (SEIA), hard costs have come down dramatically over the last decade, while soft costs have remained largely constant. However, tools like Aurora Solar lead capture, solar sales, and PV design platforms can help your team drive down these soft costs – allowing you to service more customers using fewer resources. Figure 1. Cost breakdown of PV systems. Source: B. Fiedman, et al, "Benchmarking Non-hardware BoS Costs for US PV Systems, Using a Bottoms-Up Approach and Installer Survey," National Renewable Energy Laboratory, Second Edition, December 2013. Figure 1 illustrates the relationship between soft and hard costs, with the latter broken down into its components. Operations and management costs O&M costs refer to expenses associated with running, maintaining, and repairing a solar PV installation. These can include fuel, repairs, and operation personnel. But with virtually zero moving parts and panels backed with multi-decade warranties, residential and commercial PV systems generally have low O&M costs. Maintenance requirements can change, however, when managing industrial-scale solar facilities. Incentives and policies that benefit solar energy The high capital costs are one of the biggest factors that discourage people from going solar. To combat this, there are a number of incentives and policies in place to make PV systems financially competitive. Being able to explain how these programs work will allow you to convert more customers. This is especially true if you facilitate the paperwork and applications on their behalf. Cost-based incentives Cost based incentives, such as the Solar Investment Tax Credit (ITC), allow those who invest in a solar system to apply a tax credit towards their income tax. The incentive is determined by the cost of the system and is independent of its performance. The ITC was originally scheduled to expire at the end of 2023. But thanks to a 10-year extension under the 2022 Inflation Reduction Act, PV system owners qualify for a one-time 30% tax credit in the year after their installation becomes operational. In addition, some cities and states offer cash rebates for those who go so solar. For a list of potential rebate programs in your service market, visit the Database of State Incentives for Renewables & Efficiency (DSIRE). Performance-based incentives Performance based incentives (PBIs) encourage PV system owners to install and maintain efficient systems through payments that are based on the monthly energy production of the PV system. These programs are highly regional and might not be available in your service area. Net energy metering Most states across the country offer some form of net energy metering (NEM) – a mechanism that credits consumers for any unused solar power they send into the electricity grid.  For instance, if a residential PV system produces an excess of 100 kWh over the course of the month, the owner will be reimbursed for 100 kWh worth of utility credits (usually at below-market rates). The owner is then free to use these reimbursement credits to “buy” electricity from the grid when solar is not meeting their current energy needs. Therefore, solar customers who enroll in their state’s net metering program are able to significantly reduce their electricity bill. Some states offer a similar program know as a feed-in tariff (FiT). Though less common, feed-in tariffs result in cash payments for unused solar power – and not utility credits. Figure 2. Visualized relationship between PV energy production and household electricity use for a typical home. Source: solarchoice.net.au Figure 2 shows the relationship between PV electricity production and electricity consumption during the day. Note that while the PV system can generate more than enough solar electricity during the daytime, it can fail to deliver electricity during peak consumption hours. Basic financial calculation for a residential PV system In return for a large upfront investment, homeowners that go solar benefit from reduced monthly electricity bills.  For instance, assume that upon installing a $10,000 rooftop PV system (after incentives), a customer’s residential electricity bill is reduced by $1,500 per year. In order to calculate the simple payback period, which is the approximate time for a PV system to “break even,” we divide the cost of the PV system by the savings. Simple Payback Period = System Cost / Annual Savings 6.7 years = $10,000 / $1,500/year Thus, the payback period for a $10,000 PV system that saves a customer $1,500 in annual electricity bills is 6.7 years.   However, a PV system can last much longer than the duration of its payback period. Standard rooftop panels have warrantied lifetimes of about 25 years. This means that for the last 18 years of its life, after it has paid itself off, the hypothetical PV system described above will deliver net returns in the form of additional savings. To calculate these returns, we multiply the annual savings by the remaining lifetime of the system, after it has paid itself off. Total Savings = Annual Savings × Years (after Payback Period) $27,450 = $1,500/year × 18.3 years Based on this simple analysis, the system will generate approximately $27,450 in savings over its lifetime. It is important to note that this is an approximation and does not take into account factors such as maintenance costs or degradation over time. However, as grid electricity prices increase, the value of the PV system increases as well. This is because solar helps to shield the user from rate increases – resulting in a shorter payback period and higher lifetime savings. The figure below shows another financial analysis for a hypothetical residential PV system. In both graphs, the y-axis is the dollar amount and the x-axis is the year. Figure 3. The cumulative (top) and annual (bottom) cash flows of a hypothetical PV system.  The top graph, which shows the cumulative cash flow of the project over time, and indicates that the project has a payback period of approximately four years. Additionally, the dollar amount in the 25th year, which is about $25,000, is the cumulative net savings that the system generated. The bottom graph is the annual cash flow of the project. The first year is characterized by a large negative cash flow, due to the large upfront cost required to install the system. But after that, there is positive annual cash flow, except for when the inverter needs replacing in the 14th year.  About Solar PV Education 101 The Basic Principles that Guide PV System Costs is the final installment in our six-part series on Solar Installer Basics 101. In case you missed some of the earlier articles in this guide, they’re listed down below. Together, these articles provide a comprehensive roadmap for navigating the solar landscape – whether as a beginner installer or seasoned veteran. Part 1: The Beginner’s Guide to Solar Energy (Updated 11/9/2022) Part 2: How a Photovoltaic System Produces Electricity (Updated 11/10/2022) Part 3: Reading Your Electricity Bill: A Beginner’s Guide (Updated 11/15/2022) Part 4: How to Size a PV System from an Electricity Bill (Updated 12/9/2022) Part 5: Shade Losses for PV Systems, and Techniques to Mitigate Them (Updated 12/12/2022) Part 6: The Basic Principles that Guide PV System Costs (Updated 12/13/2022) And be sure to download the PDF version to give to reps, installers, and even customers looking to learn more about the basics of solar. Click the image to download the full guide in printable form. ### How to size a PV system from an electricity bill In the previous installment of our six-part series on Solar Installer Basics 101, we provided a detailed overview of how to read a customer’s utility bill. Being able to help customers decipher these statements is often what wins the sale. Equally important, your ability to read these bills is a prerequisite for correctly sizing each customer’s photovoltaic (PV) system for optimal utility bill savings and carbon offsets. This post more deeply explores some of the factors that go into solar PV sizing. Master these steps, and you’ll be able to consistently provide your own clients with the right solar capacity at the lowest price for maximum returns. Understanding Basic Solar PV Sizing Requirements We’ll use California as an example model. However, the basic steps below are the same regardless of location and geography. Let’s start with a hypothetical monthly energy consumption of 500 kilowatt-hours (kWh). This is on the low side for California. But it keeps the numbers simple. Assuming there are 30 days in a month, you can determine a potential solar customer’s average daily energy consumption by dividing their monthly consumption by 30. The formula for this calculation is: Daily Energy Use = Monthly Energy Use / Days in Month 16.7 kWh/day = 500 kWh/mo / 30days/mo  Next, we need insolation values. As mentioned in The Beginner’s Guide to Solar Energy, insolation values are reported in kWh/m2/day. Since a “full-sun’s” worth of incoming solar energy is approximately 1 kW/m2, insolation values provide a rough estimate of how many full-sun hour equivalents a location receives over the course of a day. Figure 1. Visualization of how total solar insolation received over the course of a day (left) can be represented by the number of full-sun hours (right). Source: pveducation.org For a Palo Alto home, the average daily irradiance value is 5.2 kWh/m2/day. By multiplying the daily energy usage by full-sun hours in a day, you can calculate the total PV system output as: Power Output = Daily Energy Use * Daily Hours of Full Sun 3.21 kW = 16.7 kWh/day * 5.2 hours/day Figure 2. The Palo Alto home used for this PV system sizing exercise.  Note, however, that 3.21 kW represents the ideal sizing assuming 100% efficiency under optimal laboratory conditions. However, that is not the case because all PV systems have a corresponding derate factor that takes into account the inefficiencies of the overall system in the field, such as soiling of the panels and imperfect electrical connections. According to the National Renewable Energy Laboratory’s PVWatts calculator, a typical derate factor is 0.84. For the sake of this calculation, we’ll assume the derate factor is roughly 80% (or 0.8). And thus, to correctly determine the ideal PV system size for field applications, you must divide the required power output by the derate factor. PV System Size = Power Output / Derate Factor 4.01 kW = 3.21 kW / 0.8 From this analysis, a homeowner looking to completely offset an average monthly energy usage of 500 kWh/mo would need a 4.01 kW PV system. Of course, once you've sized a system, financing it can still be challenging. See how third-party ownership (TPO) can help you sell more solar. Comparing PV size estimates to simulated results Since this is a rough estimate, how does it compare against an actual, comprehensive design for a home with the same characteristics? Using the variables above, Aurora Solar’s PV system design software found that the required system size is roughly 4 kW, meaning laboratory conditions closely match the ideal field conditions once the installation is complete. However, there is one final piece of the equation: shading. Whether from nearby trees or neighboring buildings, shading can sometimes block portions of a solar PV system. Moreover, this shading can often vary throughout the year as the sun’s trajectory changes with the seasons — or as trees gain and lose their leaves. Although shading is partially accounted for in the derate factor, this value can fail to accurately capture the effect that shading has on a PV system’s total power output. Fortunately, Aurora’s Solar’s PV design software can account for this shading variability throughout the year. And this improved accuracy allows you to install sufficient solar PV capacity to cover each customer’s annual energy needs for optimal savings and carbon reductions. Therefore, expect the results to be less close when modeling a location with shading. About Solar PV Education 101 This blog is part of Solar PV Education 101, a six-article series that serves as an introductory primer on the fundamentals of solar. We’re updating each piece in late 2022, so be sure to check back often for the most recent information. Part 1: The Beginner’s Guide to Solar Energy (Updated 11/9/2022) Part 2: How a Photovoltaic System Produces Electricity (Updated 11/10/2022) Part 3: Reading Your Electricity Bill: A Beginner’s Guide (Updated 11/15/2022) Part 4: How to Size a PV System from an Electricity Bill (Updated 12/9/2022) Part 5: Shade Losses for PV Systems, and Techniques to Mitigate Them (Updated 12/12/2022) Part 6: The Basic Principles that Guide PV System Costs (Updated 12/13/2022) And be sure to download the PDF version to give to reps, installers, and even customers looking to learn more about the basics of solar. ### Top 10 Things You Didn’t Know Aurora Can Do: #2 — Advanced User Roles & Permissions These days, running a solar business means having to manage a constantly changing business landscape. Whether it’s adopting a new in-house sales team, managing a growing network of sales dealers, or expanding to a new region, you have a lot to keep track of. “When you’re working with hundreds of different sales organizations, it becomes an interesting challenge. At our level of scale, selling an inaccurate system at the top is super painful,” explains Trace Rucarean, CMO of Better Earth, at Aurora’s Empower 2022. “We need to make sure that our sales teams sell exactly what our install and design teams will use to build systems.” This is where some of Aurora’s advanced team permissions, like Advanced Roles and Teams, can help ensure that the designs your teams sell are accurate and error free. How? How Aurora helps In this blog we’ll look at a couple tools administrators have to help organize and control what their sales teams and dealers can see and edit in Aurora designs. This not only helps avoid mistakes, but significantly simplifies the process for sales reps. Common mistakes like selecting the wrong component for an install, or changing an existing site model, can have large consequences for your business — from extra truck rolls, to having to redesign sites, and more. We’ll cover how to set up configure custom user permissions and organize visibility barriers between teams and dealers. How to limit access with User Roles User Roles in Aurora empower businesses with growing teams to effectively manage visibility and access rights across internal teams and dealer partners. With both Standard and Advanced Roles, administrators can limit control across users to minimize risk of error and change orders. Aurora’s Standard Roles of Admin, Team Member, and Limited Team Member can help smaller organizations manage their different user types. At a glance, they cover the basics: Admins can view, modify, and change ownership of all projects and permissions of all users Team Members can view and modify projects, but they can only reassign their own projects Limited Team Members can view and modify only their own projects, and admins can restrict Limited Team Members from editing site models In addition to these Standard Roles, Advanced Roles allow admin users to create up to four custom roles within the Aurora app. Click the image to go to the Help Center article on User Roles. Each of the roles created can be configured with different permissions, like limiting project visibility, pricing edit access, and Design Mode access (and we’ll continue to add permissions over time). Now, as processes and requirements grow as your business scales, you can count on Aurora to help you easily manage your teams and control their access. For example, you can restrict your sales reps from editing site models, so you won’t have a rogue sales person trying to change the site design. Or, you can limit your contractors to seeing only projects assigned to them, minimizing any risk of exposing projects to your third-party dealers or designers. How to limit project visibility across teams and dealers Teams in Aurora enables scaling solar businesses to manage user groups and project visibility. Administrators can set up global database settings for all users, and use Teams to create visibility barriers across internal teams and dealer partners to promote privacy and territory controls. Click the image to go to the Help Center article on Teams. From the Aurora settings, the Teams tab allows administrators to create, manage, and delete Teams in Aurora. From there, every project can be assigned to a team, and only admins and the users on that team are able to view and edit the project. Teams are helpful for companies with growing sales teams — internal or external. For example, you may want to organize your internal sales teams by region, like Long Island, Westchester, and Brooklyn (for the New Yorkers out there). When you do this, sales managers can view and track performance by region, and identify areas of improvement across their sales teams. Or, as you begin to take on sales dealers to sell your products and services, you can organize these individual dealers into teams. That way, the dealers all have access to the same database settings you use across the organization, but they can only view their own projects. Setting up these visibility barriers minimizes conflicts of interest and ensures dealers are viewing only relevant projects. Especially as businesses scale, even the small mistakes add up and can materially affect your bottom line. With Aurora’s administrator tools, solar businesses can customize the software to fit their ever-changing needs. Want to learn more? We have a couple Help Center posts with more details: User Management: Teams Advanced Roles Then, schedule a live demo to learn more about how these features can help your business, in particular. And don’t forget to check out our dedicated Aurora Top 10: All In One Place page to learn about other Aurora features you may not know about.  Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### End solar AHJ headaches with Aurora's automatic AHJ identification and Database There are literally tens of thousands of Authority Having Jurisdictions (AHJs) across the country. They can be individual states, counties, cities, towns, utilities, or other entities. They’re responsible for building and safety standards, and there can be considerable amounts of variability in requirements from one jurisdiction to another, and in the type and complexity of projects. Most everyone that’s worked in the solar industry has experienced the difficulties of having everyone on the same page when it comes to meeting AHJ requirements for selling, designing, and installing a system. And the costs, delays, and headaches when AHJ driven changes happen can be significant. That’s why we’re introducing our new AHJ Database. Now, when a new project is created, Aurora uses the project’s address to identify the Authority Having Jurisdiction (AHJ) and gives easy access to track and reference their requirements. This feature is available as a standard part of Aurora. How the AHJ Database helps We’ve all had those projects where we have trouble identifying the AHJ and its specific requirements, or teams aren’t able to reference the same information. Then the project gets to the permitting stage and requires a layout change for different fire pathways, or added equipment for disconnect and metering requirements. This increases your time on the project, and leaves the homeowners with a poor experience.  The AHJ database enables design and sales teams to be aligned on requirements, so that the expectations for the system can be set with the homeowner from the beginning, and the process to system activation is smoother and faster. AHJ boundaries are complex shapes, and the boundaries between them can be confusing: For example, different sides of a street may fall into different jurisdictions. So identifying the correct AHJ per project is the first challenge. City of Houston Boundary Map. (Image courtesy of Sunspec.org) In addition to identifying the AHJ, storing their requirements in an easily referenceable way is critical for designing, selling, and installing systems. This can range from layout restrictions, max system sizes allowed, environmental factors to adhere to, and beyond. While some states have statewide guidelines or legislation for which building codes and requirements to follow, the codes leave interpretation and implementation up to each individual AHJ.  This can add significant complexity, back-and-forth, and time to even the most straightforward installs.  To help make this process smoother, all the automatically identified AHJ information can be accessed through Design Mode so you can easily review the AHJ requirements from the AHJ and Utility preferences in real-time while creating the design. As your team learns about specific AHJ requirements from building departments where you operate in the US, you can store and modify them so your sales, design, permitting, and install teams can operate more efficiently. How do I use the AHJ Database in Aurora? We have a detailed article on AHJ identification and the database in our help center. A screenshot of the AHJ field populated in Aurora. How the AHJ Database works Every Aurora customer in the US now has access to the AHJ Database feature as part of their subscription.  It enables customers to track requirements from the AHJ/Utility preferences in real-time.  This means you can store and share requirements as you learn them from building departments across the country, ensuring your design, permitting, and install teams are aligned.  To go a level down, Aurora will provide and manage a limited high-level data set of AHJ requirements. For example: AHJ Name AHJ State Electrical Code Building Code Residential Code Fire Code Wind Code Max Temp (ASHRAE) Min Temp (ASHRAE) Wind Speed (MPH) Snow Load (lbs) Customers can request updates to the Aurora managed fields, and Aurora can review the request and update them for all customers.  You can enter and store AHJ-specific data that other team members can access. For example:  Local Branch Office AHJ Contacts Email Permit Required Permit Cost Permit Turnaround Time Submittal Process System Size Limit (kW) Online Submittal Link Permit Application Form HOA Approval Required Homeowner Signature on plans Aurora can also mass upload your existing AHJ requirements to your tenant’s AHJ database.  An example AHJ. AHJ identification in seconds via API AHJ identification is also supported via API. Your teams can now have reliable information about a project’s AHJ within seconds of creating a project in Aurora. To learn how to put this into action, step-by-step, read our Retrieve AHJ Name tutorial and check out our changelog entry on the topic. For more information… The AHJ Database allows US users to reference and update requirements for all the jurisdictions your company operates in, ensuring your teams are on the same page and allowing them to scale more efficiently. With it you can: Integrate all your AHJ requirements into your design tool Seamlessly enter new markets by eliminating the AHJ research and learning process Speed up the learning curve for new hires Maintain a single source of truth for AHJ requirements to reduce design changes and time to install To learn more about how to use the AHJ identification and Database, check out our FAQs below and refer to our AHJ identification and Database help article. If you have any other questions, please contact us to get a personalized tour of the feature.  ### Turn solar sales objections into solar selling points Every solar salesperson can rattle off an array of homeowner objections they've faced when trying to get that contract signed. The best solar salespeople know, however, that objections are actually opportunities to show your company's value, build a relationship, and move closer to a sale. This page is your one-stop shop for turning homeowner objections into selling points. Whether you want to read, listen, or watch, we have something for you. The Solar Sales Objections Handbook First up, The Solar Sales Objections Handbook breaks down five of the most common homeowner objections. Click the image to download the Solar Sales Objections Handbook. Having an answer to whatever questions the homeowner has is one of the most important tools a solar salesperson has in their tool belt. With that in mind, we got some seasoned solar sales pros together to walk us through how they handle the most common objections they hear out in the field: "We need another quote" "We'd rather use the money for other investments" "We're retired and on a budget" "We're concerned about roof damage" "We're planning to move soon" Need something to give to your sales team, or looking to learn some new strategies for you personal playbook? Download this comprehensive, interactive e-book to learn strategies and follow-ups for all of these objections in one place. The Solar Sales Masters blog series Once you have the Handbook, you can refer to our blog series, where we go even more in depth on each solar sales objection: "We need another quote" "We'd rather use the money for other investments" "We're retired and on a budget" "We're concerned about roof damage" "We're planning to move soon" The Solar Sales Objections Throwdown If you're looking for something you can listen to on the way to a customer, check out the Solar Sales Objections Throwdown webinar on demand. In it, you'll hear the solar sales pros' strategies in their own voice, and their own words. Click the image to watch the Solar Sales Objections Throwdown. Register for this year's Throwdown Still looking for more? This year’s Throwdown will be held on December 1 at 11:00 AM PST. We’ll have five new questions for the solar sales pros to help learn how to handle real-world situations. We’ll also have live voting so you can pick the objection handling you think is best, complete with prizes awarded to the winners! Click here to register now! ### Want laser-focused C&I solar designs? LIDAR can help Light Detection and Ranging (LIDAR) uses lasers to measure the size, shape, area, and other physical characteristics of proposed building sites. These measurements can then be used to generate highly accurate 3D images of landscapes, structures, and other features.    HelioScope now offers LIDAR, and it's a real game changer for commercial and industrial (C&I) solar design. In a recent webinar, Amanda Mayo, Manager of Enterprise Customer Success for HelioScope, showed LIDAR in HelioScope in action. Watch the entire webinar on-demand to see exactly how it works for C&I projects, and the value it adds. Click the image to watch the webinar on-demand. To give you a sneak peek, let’s look at two of the most important benefits of LIDAR for C&I projects: speed and accuracy.  LIDAR is now integrated in HelioScope. Currently in Beta for Enterprise customers, you can access Helioscope’s LIDAR tool by joining the waitlist. Speed: efficient site identification and design  The first step in creating any large-scale solar project is finding the right location for the system. After that, the exact position of the installation has to be identified to maximize its solar potential and minimize local environmental impact. Heliscope’s LIDAR mapping accelerates both of these steps, providing access to 3D satellite imagery and solar energy system design tools all in one place. You can simply toggle between imagery sources for mapping, terrain, and LIDAR data to help accelerate location spotting and site identification.  Once you’ve selected a site, Helioscope’s unique “Fit to LIDAR” tool can calculate the optimal building location based on the unique features of the site, the local sun path, heights of surrounding tree canopies, and more.   To learn more about using LIDAR for HelioScope, watch the full webinar. None of this matters if it’s not easy to use, however, and HelioScope’s LIDAR mapping is as easy as a few clicks. You can use HelioScope with LIDAR to quickly create site designs for large-scale solar projects and confidently pass them on to team members, clients, or other project stakeholders.    Accuracy: avoid costs with fewer design changes Of course, speed doesn’t help if the measurements aren’t accurate. With real-world data in every step of the initial development phases, LIDAR helps prevent the costly design changes that often come with inaccurate estimates or uncalculated assumptions of a proposed building site.    In addition to generating precise 3D models of any buildings on a site, solar developers can use Topographic LIDAR to gather detailed information for open fields, agrivoltaic installations, and more. With raw data points and distinct GPS coordinates, LIDAR in Helioscope can be used to identify challenges such as trees, hills, riverbeds, and other variations in surface elevation.  Put simply, LIDAR mapping means fewer surprises down the road when an on-site survey is conducted. In turn, this leads to fewer expensive site visits before construction.   By keeping everything together in one platform with HelioScope, the accuracy of LIDAR data perpetuates through the entire solar development process. Together with API integrations and other features, information from LIDAR reports can be automatically populated into site reports and customer proposals without having to worry about inaccuracies from estimations or human error.  Wrapping up LIDAR is one of the most exciting new features in HelioScope. To learn more about how it can help cut time, effort, and cost from your C&I projects, make sure to check out our post introducing LIDAR for HelioScope. Then watch the webinar to see exactly how the features work, and how easy it is to use. Click the image to watch the webinar on-demand. If you are a new or existing Aurora customer interested in using HelioScope’s LIDAR feature for C&I solar design, please join the waitlist. ### Reading your electricity bill: a beginner’s guide Welcome to the third installment in our six-part series on Solar Installer Basics 101, updated in late 2022. In our previous article, we explored how the photovoltaic (PV) panels you install on customers’ roofs convert sunshine into clean energy. You already know how this process works, but being able to explain it to end-users can help make converting customers much easier. Click the image to download the full guide in printable form. The same is true when walking customers through their electricity bills. Your ability to explain how their utility statements work — and where the largest savings might reside — will make it easier to close the sale. Why every solar project should start with an electric bill The average utility customer doesn’t think much about the details of their electricity bills — except to lament how high they might be climbing. However, utility statements actually provide a treasure trove of valuable information to facilitate the solar installation process and help your customers maximize their financial and environmental savings. For solar professionals, these bills are an easy way to quickly understand how much energy a customer uses, which is a key factor in determining what size PV system will meet their needs (the topic of our next installment in this series). These bills also show how the local utility company calculates a customer’s electricity charges, which can have important solar design implications. For homeowners or businesses considering solar, having a deeper understanding of the information contained in their electricity bills can offer insights into whether installing solar makes sense, as well as whether switching to another billing plan may increase savings. In this article, we explain the terms, sections, and calculations in an electric bill — and how these variables change when a customer installs solar on their home or business. Rate plans An electricity bill is a charge for the grid power a home or business consumes. This consumption is measured in kilowatt-hours (kWh), and customers are charged a per-kWh rate. These rates differ across utility markets and are calculated differently depending on the customer’s “rate plan.” Rate plans specify the rules for how customers’ bills are calculated, with utilities typically offering multiple tiers and types. Common rate plans include: Fixed rates Time of Use (TOU) rates Tiered rates While a fixed rate plan charges the same amount for every kWh consumed, under TOU rates and tiered rates, the price per kWh changes depending on the time of day (peak vs. off-peak) or the total amount of energy consumed, respectively.  A customer’s rate plan will determine what is displayed in the different sections of their utility bill. It also impacts how much that user pays to their power provider every month, and by extension how much they can actually save by going solar. Depending on their energy consumption patterns, customers may pay more or less for the same amount of electricity under different utility rate plans. For a more in-depth discussion on different utility billing approaches, see our Solar Utility Bill series. Utility bill sections An electricity bill is broken down into several different sections, each of which provides important information. While the names and contents often differ depending on the utility, we explain some of the most common sections below. Account Summary The Account Summary generally appears on the front and center of the bill. This section provides an overview of the account status, including: The customer’s previous account balance Any payments made on the previous balance The new amount owed for the current billing period If the customer gets electricity and gas from the same utility, the Account Summary will include charges for both of these services. Bill Details This section shows the number of kWh the customer consumed during the billing period — and the rate they paid per kWh. The information that’s included (and how it is formatted) will change depending on the utility and rate plan. Electricity Charges Breakdown The per-kWh rate shown in the “Bill Details” section is made up of many smaller charges. In addition to covering the cost of the energy consumed, some of these charges are used to maintain and upgrade the electric grid and to fund other state-sponsored energy initiatives. The names and amounts of these electricity charges vary by utility market, but generally include a: Generation Charge: This charge supports the cost of producing the electricity used. Transmission Charge: This charge supports the cost of transmitting electricity from power plants, over high-voltage lines and towers, to distribution systems. Distribution Charge: This charge supports lower-voltage system costs stemming from the power lines, poles, substations, and transformers that connect to homes and businesses. If you are interested in your utility’s additional electricity charges, visit their website for further information. Usage Profile Many utilities provide usage profiles that show a customer’s total monthly consumption over the previous 12 months. This gives a good visual representation of how much energy they consume annually. And some usage profiles even include previous years so that customers can track their consumption habits over longer time frames. How electricity bills change with solar When a homeowner or business in the U.S. installs solar panels, they typically become a net metering customer. Net metering is a policy used throughout most of the country that credits solar customers for excess solar energy they feed into the electricity grid: During the day, customers send unused solar power into the utility grid — generating credits that they can use to offset future electricity statements. When their PV panels stop producing power (at night, when it’s cloudy, etc.) those customers buy power from the grid.  With net metering, each solar customer ultimately owes their power provider the “net” difference in grid electricity bought and sold. But with enough PV capacity installed, it becomes possible for a solar customer to eliminate their utility bills entirely — or even be owed electricity or credits from their power provider.  This explains why participating in net metering programs often changes the way these customers’ bills are calculated. After installing a PV system on their home or business, a customer’s utility statement may include: Minimum Delivery Charge: This is a charge that some utilities require solar customers to pay to support the cost of electricity grid upkeep. This charge ensures that enough funds are available to maintain and upgrade the grid in situations where solar customers produce enough energy to pay nothing for electricity. Net Usage: This represents the total electricity consumption minus the total amount of electricity sent back to the grid by the solar installation. Net usage may be represented differently for customers on a Time-of-Use (TOU) rate plan. This is because the utility separates the day into “peak” and “off peak” hours, and charges different rates for energy used during each time period. In this case, net usage may be split into “Net Peak Usage” and “Net Off-Peak Usage.” Additionally, the timing of bills may change after installing solar, depending on the utility. Some utilities bill solar customers every month, while others bill on an annual basis. This yearly statement is sometimes referred to as a “true-up” and reconciles the customer’s energy production and consumption in a single statement at the end of a 12-month period. If you’re new to the solar industry, understanding the nuances of electricity bills can be a helpful when navigating other aspects of the solar design and sales process — like how to size a PV system (which we delve into in the next article in this series). Whether as an installer or a utility customer, understanding electricity bills allows you to quickly identify potential savings and determine whether installing solar makes financial sense. About Solar PV Education 101 This blog is part of Solar PV Education 101, a six-article series that serves as an introductory primer on the fundamentals of solar. We’re updating each piece in late 2022, so be sure to check back often for the most recent information. Part 1: The Beginner’s Guide to Solar Energy (Updated 11/9/2022) Part 2: How a Photovoltaic System Produces Electricity (Updated 11/10/2022) Part 3: Reading Your Electricity Bill: A Beginner’s Guide (Updated 11/15/2022) Part 4: How to Size a PV System from an Electricity Bill (Updated 12/9/2022) Part 5: Shade Losses for PV Systems, and Techniques to Mitigate Them (Updated 12/12/2022) Part 6: The Basic Principles that Guide PV System Costs (Updated 12/13/2022) And be sure to download the PDF version to give to reps, installers, and even customers looking to learn more about the basics of solar. Click the image to download the full guide in printable form. ### The Importance of Solar for All: 5 inspirational quotes from Edward Norton's Empower keynote As part of this year’s Empower, we wanted to make sure that we kept the solar consumer in mind at all times. To that end, we were excited when the Day 1 keynote, “The Importance of Solar for All”, featured a special interview with a typical residential solar customer and Aurora co-founder and CEO Chris Hopper.  You can imagine just how excited we were when this homeowner turned out to be Edward Norton. Click here to watch Edward Norton's entire keynote on-demand. Yep, that Edward Norton. What you might not be aware of is that, in addition to what you may know him for, Edward is passionate about many causes. In fact, he’s currently serving as President of the U.S. Board of the Maasai Wilderness Conservation Trust (MWCT). Aurora Solar will match donations made to the Maasai Wilderness Conservation Trust for solar + storage installations up to $25,000. Click the image to donate. On top of being deeply involved with the MWCT, and a residential solar true believer — he is the proud owner of a 13 kW solar system with 20 kW battery storage — Mr. Norton is a passionate and knowledgeable advocate for clean energy.  Chris and Edward had a thoughtful, wide-ranging discussion about solar’s potential, the critical importance of NEM, why distributed power is so resilient, the many ways renewable energy can help bring more equity to our planet, and much more. (He gets a hat tip from us for using the term “energy cartels” multiple times.) You can click here to watch Edward's entire keynote on-demand. In the meantime, here are 5 of his most inspiring thoughts. Pour these quotes over ice, mix in some cream and sugar, and you’ll be fired up to go out and do what we do: Enough is enough… “When I saw the proposed regulation change to the California NEM it really, actually, infuriated me. This is where you see, truly, the lobbying organs and instruments of these antiquated, sclerotic [Editor’s note: this means "rigid", we had to look it up] energy cartels like PG&E and SoCal Edison working against the public interest, even as they burn the state down as they raise our rates because of their fire fund.  “They’re trying to basically kill residential solar and using this really bull***t argument about costship and social justice, which is just so full of holes. People, like everyone at your conference, who care about this, need to start getting loud about it.” Where the sand turns to gold… “You fly into LAX, and you look down, and you realize the opportunity lost in our country from not deploying solar is just astonishing… People say, ‘It’s only at 8%’ how much can it really be? This is the same thing people were saying about cell phones in the ‘80s and early-’90s even. ‘Well, it’s going to be for some people…’ Bull***t. It’s going to be for everybody.” Who wants more? “We are going to see this become a pervasive technology. Packaged in with home mortgages, packaged in with efficient appliances, packaged in with EVs and chargers. And, indeed, I think what we’re gonna see is, we’re gonna realize that EVs represent storage. Every home is going to have EVs plugged in with dual directional chargers that have 15 times your 10 kilowatt battery on the side of your house, sitting in your driveway every night. These things are going to become a reality.” I'm listening… “This is not hippie tree-hugging anymore, this is one of the biggest tech industries in America — it should be, rather — and we’re not even in the beginning, we’re in the beginning of the beginning of the beginning. All of the greenfield opportunity is ahead.” Life is on the wire… “I have faith that this is going to tip the right way. I think this is unstoppable — as much as cell phones, as much as personal computers that we’re zooming on right now. These things that seemed like they had an uphill battle, there’s too much rational sense to the idea of solar and storage.  “It’s where we have to go, on so many levels, and the fact that there is real economic benefit to the consumer… you combine those things and I don’t think it can ultimately be stopped.” Let’s get started, shall we? “Big applause to you and everyone you work with because you’re in the early wave of something people will look back at and say that this was an epochal transformation in a positive direction towards sustainability and everything… it’s a super exciting industry to be working in.”  Interested in hearing more? Watch the entire session here, and visit our resource center to check out replays of all the other Empower sessions. And don't forget, Aurora Solar will match donations, up to $25,000, made to the Maasai Wilderness Conservation Trust through the Aurora/MWCT GoFundMe page.  ### LIDAR in HelioScope: What it is and how to use it LIDAR is one of the most powerful tools available to solar installers. Its ability to help you complete tasks like estimating tree heights and determining the slope of a roof face — all without a site visit — makes your sales, design, and installation processes run more smoothly, more quickly, and more accurately. Aurora just announced a huge LIDAR update, and now HelioScope will be offering LIDAR to enterprise customers in beta. HelioScope will use the same LIDAR data that Aurora does. This impressive data set covers 98.6% of the U.S., and boasts an average point density from 9.2-12.8 points per square meter. Unlike flat images from Google Earth, or other satellite images, LIDAR data can accurately provide valuable information, such as the height of buildings and trees, and the pitches of roofs — data that is quite important for determining the size and energy yields of commercial and utility-scale installations. Said differently, LIDAR is a game-changer for commercial solar designs in HelioScope.  LIDAR isn't just amazingly useful, the images look cool, too. To learn more about exactly what LIDAR does, how it can help your company, and more details about our latest update, check out our blog on the topic.  Of course, the main question you likely have is, “How do I use it?” How to model using LIDAR in HelioScope (Please note that this feature is currently only available to Enterprise customers. To learn more about becoming an Enterprise customer, please reach out to sales@helioscope.com.) 1. After completing your site design, click on the LIDAR button under the Advanced setting on the Design Menu. 2. Click the "Turn LIDAR On" button next to LIDAR. 3. Click next to Style to toggle between Mesh, Imagery, or Point Cloud (Dot) LIDAR styles. 4. Adjust the LIDAR data by using the x, y, and z Data Offset fields. (Note: You can also view or switch the source of LIDAR data in the LIDAR settings menu.)  To use LIDAR in HelioScope, simply right click the roof (Field Segment) and choose “Fit to LIDAR” for fixed tilt, or “Fit to LIDAR (Height and Tilt)” to fit not only the height but also the pitch on Flush Mount Racking. You can also use “Fit to LIDAR” to get accurate heights of roof obstructions and keepouts by simply right clicking on the keepout and selecting “Fit to LIDAR”. It’s that simple. You can click here to see HelioScope’s LIDAR availability map. This is only the beginning. We’re constantly working to make LIDAR more useful for customers, so stay tuned for more in the coming months. ### Power up your solar business and career at Empower As you may have heard, our Empower Summit is coming up in just a couple weeks. (November 1-2, sign up here!) If you haven’t signed up yet (which, again, you can do by clicking here), you may be wondering what you’ll get out of it, and why you should spend your valuable time at another virtual event. These are totally legitimate questions! Those of us in the solar industry are extremely busy, and investing even a couple hours can seem like a lot. In our first blog on the topic, we laid out some of our most anticipated sessions and keynotes, and since then, we’ve filled out the schedule with even more presentations by the industry’s brightest stars. Some of these sessions even count towards NABCEP credits. This year's keynotes are [fire emoji]. Click the image to learn more. You may also have heard that Edward Norton will be giving our Day 1 Featured Keynote. Yep. That Edward Norton. To give you a better idea of what to expect from the panels and sessions themselves, we also wanted to highlight some of our favorites from Empowers past. (Click on any image to view the whole session on-demand.) See what 4 solar CEOs took away as the major lessons their companies have learned about solar sales since 2020 that will inform their processes moving forward. Learn more about all things NEM from 3 experts who are in the fight, including what we can do to save solar jobs and boost its growth. Want to know what drives homeowners to go solar, and how to help them choose you? This session gets into exactly that. This is just a sampling, but hopefully it gives you a better idea of why Empower is so valuable to you, your colleagues, and your company. You can attend as many or as few sessions as make sense for you, and it’s free. You’ll walk away with new strategies, new ideas to think about, and (potentially) some NABCEP credits to boot. See you there! https://www.youtube.com/watch?v=P78yQ2uPy6w ### Why we are adjusting the price of HelioScope We launched HelioScope in 2014, and have been adding lots of capabilities since then... but one thing that hadn't changed was our price. But as we invest more in accelerating our roadmap, we need to raise our prices. Starting on November 15, 2022, we will be raising the cost of our HelioScope basic plan from $95 per month to $159 per month ($1,620 annually). We know that inflation in other areas of the economy is raising prices in other parts of your business, so we don’t take this step lightly. As longtime customers know, this is the first time we’ve raised prices since we started HelioScope.  As you also know, quite a bit has changed since that time. But one thing hasn’t: We remain committed to improving and growing our products, as well as our customer support team. This pricing update will help us continue to do that, and develop more features and services that we hope will continue to make your design and sales workflows even more accurate, faster, and more efficient. Here are the details: The effective date is November 15. Existing customers will see the new rates at your first renewal after November 15. So, if you have 6 months left on an annual license, then you’re still locked-in for those 6 months. When your renewal comes up, that’s when the new rates will kick in. We’re also introducing an Enterprise plan for large teams that will include API access, trackers, Premium Support, LIDAR, Financials, sales proposals, and more. We truly appreciate all the installers that have worked with us over the years and are grateful for your business. If you have any questions, concerns, or feature suggestions you’d like to see, please reach out.  ### Increase efficiency, increase profits: How to run a lean solar business Right now, the cost of doing business seems to be increasing for everyone — from restaurants, to car dealers, to, yes, solar installers.  To keep growing and stay profitable, solar companies have to do everything possible to reduce operating expenses and maximize the value of their existing staff and resources. Said another way, they have to make their processes more lean. But how? In our recent webinar with Solar Power World, Aurora Solar Product Marketing Manager Sherry Huang and Enterprise Account Executive Jay Choi showcased a few of the best, quickest ways you can use software like Aurora to slim down your processes.  Click the image to watch the webinar on-demand. In this blog we’ll look at three of the most time-consuming processes, and how technology can help you smooth them out. Make sure to watch the full webinar for many many more tips and tricks to make your business more lean. The process: Generating leads Finding high-quality leads isn’t easy and often requires a significant amount of time, energy, and budget to identify and qualify new prospects. In fact, according to the National Renewable Energy Laboratory, more than 20% of solar costs are attributed to customer acquisition.  Your business likely uses many methods for lead generation, and we’re not getting away from canvassing, buying leads, and working for referrals anytime soon.  But there’s more you can do. With Lead Capture AI the leads come to you. The lean way: Make leads come to you To become more lean, you have to make sure you’re using the most cost- and time-effective lead generation channels available. So, while methods like purchasing solar leads from a third-party and canvassing do still have their place, solar companies have to explore other channels to reach potential customers — like making them come to you. With Lead Capture AI, solar companies can embed an intelligent widget directly on their website — including branding to match the rest of your business. Site visitors enter their address, contact information, and utility bill information, and Lead Capture AI generates a solar model for their home.  You can even add inquiries for items such as roof type, electricity bill expenses, home ownership status, and credit score. This ensures that new leads are only generated and sent to sales reps if the customer is a true fit for solar and can realistically make a purchase. And it’s all done before any time or labor hours are spent setting up a proposal or even picking up the phone.  The process: Generating site models While it might be nice to employ a dozen of the world’s best solar designers to produce all of your customer proposals, it’s not realistic — or efficient — to always have an expert standing by. And even with a dedicated design team, bottlenecks can occur when you’re trying to sell high volumes. The potential inefficiencies don’t end there. Sales reps working with prospective customers often need to make changes to a design quickly and can’t afford to wait around for their turn in the queue. Let Aurora AI generate the roof model for you. The lean way: AI to the rescue There are two ways to improve your design process: using AI or using Expert Design Service. With Aurora AI, it’s possible to create an accurate 3D roof model in less than a minute using HD map imagery and LIDAR data to generate a roof’s shape, size, and pitch. It can even automatically detect those pesky obstructions where solar panels can’t be installed.  Once your sales rep has the model, they can make changes right in front of the customer based on their feedback. This helps build trust and keep the sale on track. For businesses looking to take the next step towards a leaner company, Aurora’s Expert Design Services can do the designs for you. Whether it’s for those tricky designs you need to get right the first time, or just to take some of the load off your team, Expert Design Services delivers accurate 3D models in under 3 hours for any project.  The process: Proposals, financing, and contracts Everyone who’s sold (or bought) a solar system knows just how error-prone, confusing, and just plain tedious these final processes can be.  Once the customer is ready to explore their financing options, we reach another area where there's a real opportunity to become more efficient: figuring out financing and drawing up a contract.  Integrated financing eliminates a huge pain point. The lean way: Software does the work, instantly This is where intelligent sales tools can lock in your efficiency gains in three critical areas: the proposal, financing, and the final contract.    The proposal: With Sales Mode, customers can see all their energy system information in a live, web-based proposal. Interactive, personalized, and instantly responsive to design changes, these proposals allow prospective solar customers to walk through the details of an offer and easily share the information with friends, family, and neighbors.   Financing: Integrated financing through Sales Mode takes a lot of the confusion and delay out of what is traditionally every customer’s — and installer’s — least favorite part of the solar process. Homeowners can see their financing options side-by-side, and see how those options affect their energy bills and expected payback periods. All of the information is updated automatically so that customers can more easily decide which financing method best fits their goals.  The contract: “OK, I’ll head back to the office and draw up the contract for you.” This simple, previously necessary step adds delay to every project and leads to lost deals. Aurora’s Contract Manager can create a legal agreement in seconds, significantly reducing the time it takes to draw up the documents necessary to close a new deal. Without any manual data entry, Contract Manager populates the contract with the data entered throughout the sales process. Plus, it has e-signature integrations so that the customer is empowered to move forward on the spot.   In closing… The key to growing a solar business is finding all the possible ways to increase efficiency, reduce manual processes, and become more lean. Every minute saved, every typo avoided, every contract signed in the room increases your efficiency and improves your bottom line. To see more ways that Aurora can help your business become leaner watch the entire webinar. Click the image to watch the webinar on-demand. If you’d like to learn more about how Aurora’s software can help streamline your operations, schedule a quick, customized demo.  Featured image by Pedro Lopes. ### Module-level power electronics (MLPE) for solar design: a primer Solar contractors face many decisions when it comes to finding the best solar design. One important consideration is determining whether to use module-level power electronics (microinverters or DC optimizers). New to solar design or want a refresh on the fundamentals? Read more about the basics of solar panel wiring by reading our article, Solar Panel Wiring Basics: How to String Solar Panels. Once costly specialty products, module-level power electronics (MLPE) have made great strides in the last decade and are rapidly growing in popularity. And there's a good reason for that! Incorporating these devices can offer a number of design benefits. In today’s article, we explore some of the benefits of module-level power electronics and take a closer look at each type and where they fit within a PV system design. What are module-level power electronics (MLPE)? Module-level power electronics are devices that can be incorporated into a solar PV system to improve its performance in certain conditions (especially where shade is present) and to achieve a number of other solar design benefits. MLPE includes microinverters and DC power optimizers. They perform some of the same functions as a string inverter or central inverter, but are typically coupled to just one (or a few) solar modules rather than many, and offer additional features. Click the image to see how solar software can help you with MLPEs. What is a microinverter? Microinverters are small (hence the name) inverters that are installed at the actual panel. This is in contrast to regular string inverters, which are usually larger and are in a central place with access to multiple solar panels. Instead of converting an entire string of panels, microinverters are connected to one (maybe a few) panels. Inverters allow the DC energy from the solar panel to be converted into the AC energy that is used in the home or sent to the grid. To learn more about the fundamentals, check out our in-depth article on AC/DC energy and what it means for solar.  What is a solar optimizer? Similar to the microinverters, solar optimizers also convert solar energy from DC to AC. The difference between microinverters and optimizers comes down to the process of conversion.  Solar optimizers also connect to the panels individually, but they first optimize the DC power and then send it to a central inverter to finalize the process of converting DC energy into AC, where microinverters convert the DC to AC right at the panel itself.  MLPEs, then, are the combination of microinverters and solar optimizers to create a maximum-performance PV system. Figure 1. Even partial shade, as shown here, can significantly reduce the power output of a solar array; MLPE–including microinverters and DC optimizers–can mitigate these performance losses, among other benefits.  Why use MLPE? There are a number of reasons why incorporating MLPE into your solar designs can be a good option. One of the primary reasons is to improve the energy production of the system. MLPE can help mitigate production losses from a variety of different factors such as shading, module mismatch losses, and orientation mismatch losses (for instance, if you have panels on different roof planes). The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy explains that MLPE can reduce energy losses due to partial shading of modules by 20%-35% and they completely eliminate losses due to orientation mismatch of PV modules. Additional benefits of MLPE include providing compliance with module-level rapid shutdown requirements under the National Electrical Code (NEC), safety benefits, and typically longer warranties than for traditional inverters. Most MLPE products also come with performance monitoring and diagnostic functionality, which can be valuable in making sure the system is producing as expected or pinpointing technical issues. Solar contractors may want to weigh these benefits against possible higher up-front costs and increased installation labor. If you think solar tech is confusing, imagine how your customers feel. Click the image to download our Solar Sales Follow-up Kit to teach them the basics (and close more deals). How do MLPE improve PV system performance? MLPE can improve the energy production of a solar PV system by performing maximum power point tracking at the module level, rather than at the array level as would be the case with a string inverter. Maximum power point tracking (MPPT) refers to how inverters (and MLPE) instruct a solar panel or array to operate at a specific current and voltage combination that maximizes power output. Inverters and DC optimizers perform maximum power point tracking by responding to changes in the current and voltage of the solar installation (for example, a decrease in current resulting from shade falling on the panel). They respond to these changes by adjusting the voltage to maximize power output. For a deeper discussion of this process, and the relationship between current, voltage, and power, see our article on global MPPT. In a system with a string inverter and no MLPE, shade or soiling on one module can decrease the power output of the entire string. This is because, as detailed in our overview of shading losses, the current through the string is limited to the current of the lowest-producing module. In contrast, in systems with microinverters or DC optimizers, each module produces at its maximum level regardless of shading on other modules on the string because these devices offer module-level MPPT functionality. DC power optimizers DC power optimizers, commonly called DC optimizers, are attached to the junction box of individual solar modules, or in the case of some “smart modules” may be integrated directly into the module. These devices maximize the module’s DC power output before that power is converted to AC power by an inverter. As discussed above, they achieve this by providing MPPT at the module level, so that each module produces at its maximum level regardless of shading on other modules on the string. When using DC optimizers, a string inverter is still required to convert the energy produced from DC to AC (see Figure 3 below for a comparison of system configurations with DC optimizers, microinverters, and traditional string inverters). Discussing the benefits of her company’s DC optimizers, Gal Bauer, Director of Customer Care at Tigo, a leading MLPE manufacturer, explained that “Tigo’s DC-DC optimizers–the integrated TS4-O and the retrofit/add-on TS4-R-O–increase solar production, reduce shade impacts, prevent burnt diodes, and delay other aging effects that degrade a system’s performance over time. Tigo’s optimizers also include matched module warranties as well as a built-in UL-certified rapid shutdown solution and module-level monitoring with sophisticated alerts. These unique features purposefully keep costs of ownership at record lows and revenues at record highs for our customers.” Microinverters As their name implies, microinverters are similar to traditional inverters but operate just one or, in some cases, a few modules rather than the full array. Like a string inverter or central inverter, they convert the DC power produced by the panels to AC power that can be sent to the grid and used in the home. In addition to the benefits of MLPE discussed above, such as improving performance through module-level MPPT, microinverters can offer increased design flexibility. For instance, systems with microinverters can more easily be expanded at a later date if that is something the customer is considering (such as if they purchase an electric vehicle). Whereas string inverters have specific string length requirements, those considerations are avoided in systems with microinverters. Additionally, while not something you would commonly design, microinverters would allow for different types of modules to be used in the same system.  Figure 2. An example of a microinverter. Source: Enphase. Click on the image to view an Enphase instructional video on the installation process for their microinverters. How do MLPE fit into your solar design? Both microinverters and DC Optimizers are attached to individual modules in your solar array (though as referenced above, there are some microinverters that operate multiple panels). If using microinverters, you will not need a string inverter for the system. If you are using DC optimizers, the panels will be connected in series to a string inverter. The figure below compares the installation configurations for these two options to a design without MLPE. Figure 3. An illustration of PV system configurations depending on whether MLPE options like DC optimizers or microinverters are used. As you can see, DC optimizers still require a string inverter, while microinverters do not. Both options are typically connected to individual solar panels. Source: Aurora.  In contrast to systems with microinverters, where every panel must be connected to a microinverter, DC optimizers can sometimes be deployed selectively. This is the case for Tigo’s selective deployment capabilities, in which MLPE devices that perform different functions can be attached to specific modules as needed. For instance, if shading only affects selected modules in your system, DC optimizers could be added to those specific modules so that they will not bring down the power output of the rest of the string. Want a quick, accurate design every time? Check out our Expert Design Service. Key takeaways MLPE can help mitigate production losses from a variety of different factors such as shading, module mismatch losses, and orientation mismatch losses and provides compliance with NEC module-level rapid shutdown requirements. Solar contractors may want to weigh the benefits of MLPEs against possible higher up-front costs and increased installation labor. Our Solar software helps you model customer load profiles and create sales proposals. Finding the optimal PV design for your customer can be a challenging proposition, but being aware of the diverse benefits of different components can help. Module-level power electronics can be a great option to maximize system performance, enable greater design flexibility, and capture other benefits. As with all design considerations, being able to quantify the performance impacts with accurate solar design software like Aurora can help ensure that you’re making the best design choices for the customer. With integrated financial analysis tools, Aurora can also help you to understand if a potential increase in the up-front cost of the system is justified based on the value of the additional energy that the system will produce. Aurora models the precise impacts of DC optimizers and microinverters based on manufacturer specifications and is a leader in accurate modeling of complex MLPE functionality.   Want to learn more about how Aurora can help incorporate MLPEs into your designs? Schedule a quick, customized demo.  FAQs Which is better: microinverter or optimizer? Microinverters and optimizers provide many of the same benefits, but differ on one main point: Where each converts direct current (DC) to alternating current (AC). Microinverters convert electricity right behind the solar panel, whereas optimizers condition DC current at each panel before sending it to a central string inverter. Each is best suited for different needs: A microinverter will likely last longer than a standard string inverter, which still needs to be paired with solar optimizers. Microinverters also offer greater design flexibility for a PV system. Optimizers, however, do increase the efficiency of DC current, and may be the better option for challenging lighting conditions.  How does PV rapid shutdown work? PV rapid shutdown cuts off the energy produced at the solar module, usually at an MLPE such as an optimizer or microinverter. These “on/off” switches at the solar panel reduce or de-energize voltage coming from the source (i.e. solar panel), allowing first responders or maintenance technicians to do their jobs safely. PV rapid shutdown is required by the National Electric Code (NEC), and will soon be adopted in every state in the US. What is module-level monitoring? Module-level monitoring allows customers to monitor energy output of each individual solar panel. This helps pinpoint fault detections and other performance issues, allowing remote troubleshooting and eliminating time-consuming manual testing of each solar panel.  What is the difference between a microinverter and a string inverter? String inverters and microinverters do essentially the same thing: Convert DC current to AC current. Where they differ is where the conversion takes place. String inverters convert DC electricity from a "string" of panels wired together at a single location. Microinverters are wired in parallel at each solar panel. Microinverters allow customers to track the production of each panel, whereas string inverters only allow tracking of total combined system output. Microinverters also provide other benefits, like remote troubleshooting, PV rapid shutdown, and greater modularity in PV system design. They are more expensive than string inverters, however.  ### Want to sell solar fast? Here are some things to do... and some not to “The early bird gets the worm.”  “Strike while the iron is hot.”  “You snooze, you lose.”  This bird knows what's up. You’ve heard all these cliches, and they all boil down to one simple message: You need to act fast to win.  This is true in many situations, especially selling solar. Solar is a highly competitive market, and if you want to be the one taking home the signed contract, you need a sales process that is quick and accurate. Our webinar, Sell solar in 20 minutes with Aurora, shows how you can go from having just a homeowner’s address and one month’s utility bill to a fully customized proposal in less than 20 minutes. Watch the full webinar to learn more. While every homeowner — and sales representative — is different, there are a few do’s and don’ts that can help speed up your sales process so you can close more deals on the spot. DON’T overcomplicate things And by things, we mean your workflows. If your sales team is using one piece of software solely to create proposals, your design team is using another tool, and your engineering is using a third software tool for the final designs, you’re introducing a lot of complexity, extra work, and probably errors.  As you’ve likely experienced, jumping from software to software is a sure way to waste valuable time and potentially make mistakes that will set you back even more. DO streamline your sales process Making your sales processes as simple as possible not only helps avoid mistakes, but lets you design and sell solar systems much faster. Using one software solution that fills the needs of your entire team lets you focus on what really matters — getting panels on roofs. Software that can handle all aspects of a project saves time and headaches. With Aurora’s Sales Mode, you can customize a system, show a 3D rendering, calculate financing options, and even show the homeowner how their solar system will affect the environment — all in one place. And to keep the experience seamless and as easy as possible, you can even apply for financing directly in Aurora with our Integrated Financing options. DON’T be the high-pressure sales representative We all know this stereotype. Solar can be hard for homeowners to understand, and if you come at them with a forceful pitch, they might get so overwhelmed that they’d rather turn down your offer than listen any longer. DO involve the customer in the sales process It's usually a much better strategy to work with the homeowner as a partner. Show them the design, discuss their wants and needs, and customize your proposal together in real-time. Be prepared to make design changes on the spot based on the homeowner’s feedback, and use the sales process to educate the customer so they feel empowered and comfortable discussing solar with you. Working with your customers to design their ideal system empowers them to say, "Yes." Actually listening to and consulting with the homeowner will make them more involved in the project and increase the likelihood that they'll want to do business with you, and not your competition. DON’T focus all your efforts on describing the benefits of solar Is this important? Absolutely. But it is probably also one of the first things the homeowner will research on their own before they even reach out to you. Spending the majority of your time with the homeowner listing benefits they may already know will not set you apart from the competition. DO let the visuals do the selling “Show, don’t tell”. Using visuals is a great way to educate the homeowner and really show them everything they need to know about their potential solar installation. Compelling, easy-to-understand visuals can make all the difference in a sale. Create a 3D model of their home on the spot, let them see a sun path animation that illustrates how the shading changes throughout the day — or include details such as how the surrounding trees and buildings might impact the amount of sunlight that hits their roof. Then drive it home with detailed irradiance maps to help homeowners visualize the best roof faces on their home to put solar. The more visuals you can give the homeowner, the more you set yourself apart from the reps that only provide a 2D design and a list of benefits — and you'll look like the expert doing it.  And, as a thank you for reading, here’s a bonus do/don’t that wasn’t in the webinar. DON’T give them just another cookie-cutter proposal We’ve all seen these proposals. Maybe there’s too much text. Maybe there’s nothing about the particular benefits of solar to the specific homeowner. Maybe it has no information about what sets your company apart. It’s likely all of these things, but whatever it is, it sends the message to potential customers that their specific install is just another project. DO show them what makes your company different and why they should choose you over any others In addition to the personalization we’ve discussed in the rest of this blog, it’s important to show the customer what’s great about your company. What sets you apart? What have other customers said? Do you have a unique origin story? Have you completed some especially noteworthy projects? Show your customers what sets you apart. A well-thought-out “About Us” section in your proposal can help customers see your company as not just a solar provider, but a partner. This can make all the difference when they’re thinking about signing on the dotted line (or on the tablet). Watch the full webinar to learn more. To learn more do’s and don’ts, and see how you can use Aurora to create accurate and compelling proposals in less than 20 minutes, watch the full webinar. Then, sign up for a free, customized demo to see how Sales Mode can help you close more deals. ### The 2022 Empower Summit: Shaping the future together Register for Empower 2022 FREE (November 1-2, 2022) In the solar industry, we have a lot of reasons to believe that the future is bright. A big one is the passing of the Inflation Reduction Act, which (finally) gives us some certainty around the Investment Tax Credit — bumped back up to its original 30% for the next 10 years. It also includes meaningful incentives for home electrification projects like heat pumps, efficiency measures, and even electric cars. Add in the momentum we already had, as more and more people turn to electricity to save money — and the planet — and it’s a pretty exciting time to be in solar. Excitement is one thing, of course; capitalizing on that excitement to grow and expand your business takes action.  We hope you’ll join us, then, at Empower 2022 (November 1-2, 2022) to connect, learn, and collaborate on where we’re going as an industry and how we’ll get there. We’ll bring together solar industry leaders, professionals, policy insiders, and growth experts to share their knowledge, expertise, and insights on the unique challenges and opportunities solar faces.  Click above to save your spot for Empower 2022. This free virtual event will be held live online from November 1-2, 2022. During the two days, you’ll hear from more than 20 industry experts, learn from the most forward-thinking solar companies, earn up to four NABCEP CEU credits, and connect with more than 1,000 industry peers.  Some of the sessions (so far) we’re looking forward to include:  Strength in Numbers: Grassroots Advocacy Works, and We Need More of itLeading Through Turbulence and IRA OpportunitiesTake the Lead: Acquisition Strategies In a New Digital-First WorldStorage: The Next FrontierHow to Expand Your Solar Business With New Products  We’re also excited to welcome Ari Matusiak, CEO of Rewiring America, and Bill Parsons, VP of Federal and State Affairs at American Clean Power, as two of our our keynote speakers!  You can register for free here. We look forward to seeing you November 1-2. To get a peek at what the conference is all about, check out some of the sessions from Empower 2021. ### Feeling the sun: Behind the scenes with Aurora graphics 3D graphics are a big part of the Aurora Solar experience, but you may never have thought about how they're made. Optimizing 3D graphics is a moving target as the needs of our customers change, so we strive for continuous improvement. We aim to make our 3D modeling and visualization of solar installations clear, beautiful, and unobtrusive. This article introduces relevant concepts and reveals some of the rendering enhancements we've recently released. An example image rendered with the latest techniques in Aurora Design Mode. What is rendering? In 3D graphics, rendering is the process of creating an image from the 3D representation of a scene. In our case, the scene is the geometric representation of the solar installation. This includes electrical components like solar panels and inverters, the building on which they may be mounted, and the surrounding scene, like the sky or trees. We construct triangles from the objects in the scene and then render the triangles to the pixels on your screen. Rendering two overlapping triangles from 3d on the left to the gray image at the center. (https://en.wikipedia.org/wiki/3D_rendering) How does Aurora render? Aurora Solar uses three.js to leverage WebGL to efficiently render complex scenes on your computer. We support a large range of hardware via the web browser, from laptops with dedicated GPUs to budget laptops with integrated GPUs, in addition to iPads for mobile sales. How can we improve rendering at Aurora? We recently evaluated how to improve rendering at Aurora without complicating the user experience, and identified some techniques that would benefit users now and lay a foundation for future changes. We have started with image-based lighting. Image-based lighting The improvement we've made here is integrating image-based lighting to approximate indirect light coming from the environment. Previously, we had an ambient light, which adds some amount of light uniformly to everything in the scene. This is the most basic approach to making sure that the shadowed side of objects (away from the sun) gets some light on it so that it’s not pitch black. Effectively, this is an approximation of the average amount of light that would bounce off of other surfaces. The problem with this approach is that it doesn’t adjust well to different times of day. The irradiance, or indirect (bounce), light at a point changes depending on the light source and nearby objects. Our primary light source, the sun, also changes intensity throughout the day. A common technique to better approximate this indirect light contribution is to use an environment map, which is an image that stores a color representing the distant light coming from every direction toward an object. For example, if you have a character in a game walking around outdoors, the light from the sky and the horizon remain nearly constant as they move around over short distances. This is where a key insight emerged. At Aurora Solar, the important and static parts of the environment are usually the sky and the ground. The ground usually has a map texture on it. By using that as a part of our environment lighting we can make the lighting shift realistically when the map changes to different parts of the world. This makes everything look more realistic and integrated. An example environment map generated in our CAD engine, visualized in an equirectangular projection of the view sphere. The effect is subtle, but now when we go from high noon to sunset we get consistently better colors. At Noon: Before (L), has a reddish tint; after (R), has neutral colors. In the morning: Before (L), trees have a subtle glow; after (R), trees have a realistic amount of light. In the images above, the home and trees no longer feel out of place in the environment for any time of day. What’s next? These improvements better represent the light on the system and structures. With balanced lighting for any time of day it's now easier than ever to assess shading in Aurora Solar projects. But it doesn't end here, there's a lot more we will do to keep improving. Stay tuned for more articles on how we're continuing to improve the clarity, accuracy and beauty of our visualizations. Have more questions about Aurora graphics, how we're improving them, and how they can help your solar business? Schedule a quick, personalized demo to learn more. ### The data-driven solar sales approach: How to use AI to convert more leads The solar sales process is expensive, with customer acquisition representing up to 25% of a typical system’s cost.  Thankfully, AI can help. While we can debate whether Artificial Intelligence should be winning prizes for its art, there’s no argument that it can help solar companies in the sales and design process.  In our recent webinar, 5 Data-driven ways to increase the ROI of your solar sales process (according to new research), Aurora Solar’s Danielle Lecher and Wood Mackenzie’s Caitlin Connelly explored several examples of how solar installers are using AI technology — right now — to improve their solar sales processes.  Click above to watch the full webinar on demand. In this post, we’ll focus on two particular areas early in the sales cycle where you can use AI to give you a leg up on the competition.  Self-service lead capture — prospects come to you Door-to-door sales have long been the lifeblood of the solar industry, with installers often dispatching field teams to generate and capture leads in person. Direct mail marketing can help reduce costs, but because the typical homeowner is flooded with solar offers, standing out from the crowd (or in the mailbox) can prove challenging. However, a growing number of installers now embed lead capture forms on their sites to allow homeowners to supply their own contact information. Aurora Solar’s Lead Capture AI lets you engage homeowners with a personalized, AI-generated 3D solar estimate, right from your own website. It creates an experience that builds your brand credibility, makes you stand out, and generates high-quality leads without tying up valuable company resources — people visiting your site qualify themselves.  Click the image to learn more about Lead Capture AI. Automated lead prequalification — fewer tire-kickers The same self-service strategy for lead capture can be expanded to lead prequalification. In addition to a prospect’s contact information, for example, Lead Capture AI can also ask for the prospective buyer’s: Average electricity consumption Recent utility bills (the more the better) The age of the prospect’s home This information allows installers to direct resources towards prospects that have the highest chances of converting. Even better, with the homeowner’s data, Aurora Solar’s AI-powered lead capture technology can instantly generate a detailed 3D model of an installed PV system — complete with breakdowns of savings, costs, payback periods, and ROIs. These AI-generated solar proposals show homeowners a visual representation of what their finished system will look like. This, of course, lets prospects decide whether installing PV panels is the right choice for them, without direct intervention from the installer. But, more importantly, when combined with the savings and ROI breakdowns, it leads to a much higher close rate, with much less effort from your sales reps. More ways technology can boost solar sales The above represent two simple, yet powerful, examples of how installers are using technology to make the solar sales process both cheaper and faster. Self-service lead capture and automated prequalification are just part of it, though. Once you have the leads, you have to act fast. Prospects are seven times as likely to attend meetings if contacted within the first hour. A joint research study between Wood Mackenzie and Aurora Solar uncovered many other ways that installers are integrating software into their operations.  To get three more ways that you can use data and technology to improve your solar sales, watch the full webinar, 5 Data-driven ways to increase the ROI of your solar sales process (according to new research), on-demand. Even better, download it and listen while driving to that pre-qualified customer to close the deal. ### How to RE+: A beginner's guide to RE+ 2022 RE+ — formerly SPI, ESI, and Smart Energy Week — is an annual highlight for anyone in the renewable energy industry. It’s the place to go to get caught up on the newest technology, trends, and industry movements while scoping out competitors and networking with industry leaders. The name change to RE+ is a natural evolution of Solar Power International (SPI) which over the years has grown and expanded to include complementary markets such as IoT, energy storage, wind, hydrogen, and fuel cells as well as microgrids, and electric vehicles. After a couple long years where travel was limited, to say the least, the industry is ready for a great event. And, with a packed four-day program, more than 19,000 attendees, and 700+ exhibitors, there will be a lot to do when it comes to RE+ 2022. So, it pays to carefully plan every day to make sure you don’t miss out.  We’ll have a large team there, as well. Here are some tips we’ve accumulated over the years for how to make the most of the conference, including some exciting education sessions, networking opportunities, and more. (Psst, if you haven’t signed up yet, there is still time!) A quick overview Arranged by the Smart Electric Power Alliance (SEPA) and the Solar Energy Industries Association (SEIA), RE+ is running from September 19-22, 2022 at the Anaheim Convention Center in (you guessed it) Anaheim, California. Tens of thousands of attendees and exhibitors from all corners of the smart energy industry will come together to learn, collaborate, educate, and network. Everyone from installers, contractors, and developers, to manufacturers, software providers, and financiers across the residential, commercial, and utility sectors can get something valuable out of RE+. Every day of the conference offers a combination of general sessions, educational sessions, networking events, happy hours, and even athletic events like golf and running. There are several registration options depending on what you want to get out of the show. You can register as a Full Conference attendee, which gives you access to all general sessions, educational sessions, the expo hall, as well as networking events and parties. Another option is the Expo Hall pass which gives you access to the general sessions and educational sessions on the trade show floor. With an Expo Hall registration, you can add on the networking events separately.  Educational sessions we’re checking out The educational sessions cover a wide range of topics, ensuring something relevant and interesting for every attendee. The topics range from energy market opportunities, financing, cybersecurity, microgrids and much more, covering all technology sectors: electric vehicles, hydrogen, microgrids, solar, storage, and wind.   Tuesday’s sessions (which are open for all attendees) include topics like emerging energy technologies, the incorporation of EVs into distributed energy resources, and best practices for inclusive solar outreach.  Wednesday includes talks about the latest developments in US trade policy and how they impact clean energy, using storage to solve clean energy goals, and how to plan for and address cybersecurity challenges.  Thursday’s program includes sessions about solar intelligence and data-driven decision making, the future of multi-unit dwelling EV charging, and a discussion about the obstacles holding back the community solar industry. As for specific sessions, 2022 has been a unique and eventful year in the US solar industry. SEIA and Wood Mackenzie will be presenting their latest US Solar Market Insight Report (Q3 2022) Tuesday at 10:30 AM in the Industry Trends Theater, booth #1694. Here, they will discuss new trends and insights into where the industry is headed. In the same location, our own Paul Grana — GM, HelioScope and Commercial — will continue the discussion about industry trends with a presentation about how new AI products have developed from being hyped-up ideas on everybody’s lips to valuable tools that are reshaping sales and marketing processes for solar developers. Find him Tuesday at 3 pm at the Industry Trends Theater, booth #1694.  There are several opportunities throughout the four-day event to get to know other professionals in the industry and drum up new collaborators and clients. The networking events include something for everyone — from sports events to happy hours — and even two parties: the Annual Block Party and a Party on the Plaza. Networking... in person! The Women in Renewable Energy Reception offers a chance to network with professionals from all over the world and get insights from senior-level women in a still-male-dominated industry. The event takes place Tuesday from 4:20 PM to 6:00 PM at the Platinum Ballroom at the Marriott. Tickets are included with the Full Conference pass, but Expo Hall attendees can purchase tickets separately. To get an overview of all the sessions, events, and exhibitors, visit the RE+ website. The site allows you to plan your visit and save events you don’t want to miss out on. It also gives you access to an interactive floorplan, so you can learn your way around before even arriving.  Click the image to go to the interactive map. How to make the most of RE+ RE+ has a very packed program and numerous opportunities to learn, network, and scope out potential associates and competitors. Here are three things we’ve learned to help get the best experience at RE+: 1. Come prepared So little time, so much to do! The best way to avoid getting overwhelmed is to make sure you plan out as much of your conference as possible in advance. Use the RE+ website to create a customized schedule for yourself. Determine what you want to get out of the conference and plan accordingly. Which booths do you want to visit? Which sessions are important to you? When is the best time for you to network? 2. Mix and mingle It’s not every day that you find yourself in the same place as the biggest names in the renewable energy industry. It is a great opportunity to build relationships with industry peers and potential partners, and it’s also one of the best times to connect with people who can help elevate your career. 3. Follow up Don’t wait too long after the conference to follow up with contacts and leads. Striking while the iron is hot is the best way to ensure you don’t miss out on any opportunities or connections you created in person. So, set up those meetings soon after getting back — or even while you’re there — to get the ball rolling. Stop by and see us at the Aurora booth (#2464) to chat about our latest news, get demos and hands-on experiences with our newest products, and (of course) leave with some cool SWAG. We hope to see you there! Featured image by Jeffrey Keenan. ### 3 specific ways commercial solar software can eliminate your business's pain points If you’re a solar installer that works on commercial projects, it’s not a question of if you use solar software, but what you use it for. And really the more important question is: Are you getting everything you need from your solar software? Most of us have built our software solutions piecemeal, adding functionality as we’ve discovered we need it. This means that many companies are stuck with software that only meets their most basic needs, tools that don’t talk to each other, and a technology stack that can’t scale as you grow. Remember, commercial solar software is supposed to make your job easier, it’s supposed to work with you and your workflows, it’s supposed to remove pain points.  That’s why we created The Big Book of Commercial Solar Software Must-Haves. If you’re considering new solar software, or adding a solution, or even buying for the first time, this e-book lays out everything you need to think about. Click the image to download the e-book. In this post, we’ll detail three major pain points that commercial solar installers deal with every day, and look at how great solar software can eliminate them — along with a few bonus features to look out for. Wasting time taking on-site measurements One of the biggest hassles for solar installers is having to get in a truck and go measure something at the site, whether it’s getting a roof measurement or having to shlep back over for a change order due to inaccurate information.  But, how do you conduct remote site assessments with confidence? It starts with accurate HD imagery and features like LIDAR wherever you do business.  HD imagery and features like LIDAR are critical for remote site assessments. The good news is that most solar software does incorporate HD imagery. However, some have coverage that, to put it mildly, is limited.  So, before committing to any software, make sure to investigate the in your target market. Taking it a step further, the best providers also have nearmap integrated into their platform.  Bonus: Do you use other image sources, maybe from drones? Make absolutely sure you can upload those files quickly and easily into the software.  Getting the technical details right on big projects A hallmark of many commercial installs is that they are big and they are complicated. Anything your solar software can do to reduce the complexity for you with the click of a button can be a huge time saver. When you’re working with literally hundreds of panels, software that can perform the stringing automatically saves time, and reduces errors. Some solar software can even do intelligent auto-stringing by using shading data to maximize the efficiency of the system and decrease loss due to shading. And when you need to make adjustments to something like your desired string length? The software should be able to update the design and the single-line diagram — in real-time.  On commercial projects, auto-stringing can save serious time and prevent errors. Bonus: Take even more of the load off of your designers by looking for auto-stringing that can also automatically calculate conductor lengths and power losses based on conductor length, type, and size.  Paying for software that you don’t use Of course, maybe the most frustrating thing about solar software is paying for it month after month if your teams don’t use it. A lot of it comes down to complexity. While commercial solar software does some incredible things, it still has to be intuitive and easy to use, or your teams won’t use it.  Bonus: Let’s look at a particular feature to illustrate what we’re talking about.  It’s no secret that commercial utility rates can be incredibly complicated. You may see that a software tool provides access to utility rate libraries and think that’s good enough. But think about it, utility rate libraries are also complicated and difficult to use! So, is that tool really helping? In this case, to truly make sure your teams will use it, you’d want to look for a tool that can help you create, edit, and update any utility rate. Click the image to download the e-book. That’s just three common pain points that commercial solar software can help out with. To learn how solar software can help remove more of the pain points your business deals with every day — and help it run more smoothly — download the full e-book. Then, if you'd like to talk about some specifics for your business, schedule a personalized demo. ### 9 years, 10 MILLION solar roof designs, and more to come With so much to do, and so little time to do it, those of us in the solar industry rarely take a break to look at what we’ve accomplished. Today we want to take a step back and celebrate a pretty big milestone: We just crossed 10 million solar sites designed in Aurora.  And by we, we truly mean the whole Aurora community of solar installers. Every installer who’s completed a project in Aurora has helped add to this number, and helped to drive solar’s phenomenal growth. When Sam and Chris completed their first project back in 2013, even they couldn’t imagine we’d get to this number so quickly (well, maybe Sam could…) — especially since they spent months designing it.  But, it’s not just an abstract figure. With these projects, you have delivered 10 million new energy experiences, while helping customers avoid nearly 60 million metric tons of carbon dioxide emissions — that's about equivalent to the total emissions produced by more than 16 coal-fired power plants over the course of a year.  As Steve Huber, the Executive Director of Sales for Semper Solaris, puts it, "It’s incredibly rewarding to see the transition from this fringe idea that you can generate your own electricity, on your roof with the sun, to now being, ‘Why wouldn’t you do it that way?’"   You can see more testimonials of why all of us in solar do what we do in the short video below. (Video not playing? Watch it here instead.) But, 10 million projects isn’t an end point, it’s a beginning.  As you can see below, the rate of projects designed in Aurora has grown greatly over the years. In fact, it took you about two months to design the last million projects. When it comes to solar adoption, the steeper the curve, the better. So, let’s keep creating a brighter, solar future for all. With your hard work, innovation, and creativity — and the tools to help you get the job done quickly and accurately — the solar industry is poised for even more growth. We look forward to celebrating the next 10 million projects sooner than you think! Until then, as we say in our company meetings, “Stay sunny.” Want to see what all the fuss is about? Schedule a personalized demo. ### How to pitch additional solar products without scaring prospects away If you want to expand your presence and sell more solar-adjacent products and services there are many things you can do to upsell homeowners who are looking to upgrade their home, while saving even more money.    An efficient renewable energy system is much more than just a set of panels. From battery storage, to monitoring software, to energy-efficiency improvements, there are many products and bonus services that can add value to a solar installation, and save the homeowner even more money.  In our recent webinar, Money on the Table, we teamed up with Solar Power World to investigate how to sell additional solar energy products without scaring away your prospects. Click above to watch the webinar on demand. In the summer of 2022, things are still heating up for solar plus storage (plus everything else). With the Investment Tax Credit being returned to 30% and extended for 10 years, plus increased home electrification efforts and EV adoption, more people are thinking about their home's electricity than ever.  Selling solar + everything  Today, there’s a long list of products and services solar companies can offer, including: Battery storageSmart energy management systemsHome energy efficiency improvementsElectric vehicle charging stations  Ongoing system care and maintenance  In fact, according to our recent Aurora Solar installer survey, 55% of solar businesses expect to include solar panel adjacent products such as battery storage, EV charging, and energy efficiency upgrades within the next 6 to 12 months. To get the ball rolling on future sales, our expert, Matt Bramson, SVP of Sales & Marketing at Elevation Energy, laid out three tips for selling new solar products.  #1 - Become a long-term partner  ​​Matt recommends that any solar sales pitch should begin by properly framing the conversation around long-term goals. After all, solar panels are not an impulse buy or a casual purchase, instead, a renewable energy system is a long-term investment in a home's electricity expenses and should be treated as such.  Solar sales, like any major purchase, are based on trust. So, showing a customer that your company will be a long-term partner is a good way to establish credibility.  A great way to establish trust — and save the homeowner money — is by conducting a home energy audit before selling your customer anything. (Photo by Greg Rosenke.) A practical way Matt’s team does this is by first conducting an energy efficiency audit of the customer’s home. The recommendations from this audit generally save a customer 10-20% of their energy consumption right off the bat.  The team can then deploy those savings towards providing the customer an upgraded solar installation. Even if you’re not able to upsell a new client immediately, this strategy helps build a strong relationship with the customer — based on their whole energy portfolio, not just a sale — and can help you sell additional products or services down the road.  #2 - Create an easy-to-understand proposal  Solar companies can only successfully sell additional products when their sales proposals are easy to understand. System add-ons can be intimidating for customers who are already investing in three decades of home electricity, so anything that’s unclear may cause them to hesitate before making a purchase.   In fact, the Modernize Homeowner Sentiment Survey, found that more than 20% of respondents cited unclear or confusing quotes as the top reason why homeowners do not move forward with a contractor or home improvement company.   Aurora allows you to optimize your solar sales proposal for simple and effective client-facing messaging. Built on fully customized templates with consistent company branding at every step, Sales Mode helps your sales team create simple, interactive proposals that customers can access online and share with their friends, family, and neighbors.  Sales Mode lets you customize the information you present to the customer. Rather than jumping around between design, financing, and contracting in multiple software packages, Aurora makes it possible for a solar business to keep everything in one place. Using Sales Mode’s Contract Manager, for example, homeowners can seamlessly e-sign all of their transaction paperwork, using information that has automatically populated throughout the sales conversation. Contract Manager makes e-signing a breeze #3 - Focus on value More than anything, if you’d like to be seen as an energy partner, every additional product you mention in a customer meeting should be introduced with a focus on value, rather than price.  While working with new customers to discover the core reasons they are going solar, you can naturally bring up extra products as a response to their pain points. For example, if a customer's electric bills have risen after the purchase of an electric vehicle, you can introduce ways that an efficient EV charging station and solar energy system can work together to minimize costs.  A couple major areas to keep in mind are: Battery storage: In 2022, few solar add-ons are as popular as battery storage. Batteries have many benefits, including energy resilience against electrical blackouts and additional bill savings from self-consumption both overnight and when new electricity generation is unavailable. To put the icing on the cake, batteries now qualify for the federal investment tax credit (ITC), which means that homeowners can recoup up to 30% of the costs of adding storage against their tax liability. For more information on how to explain the value of a backup battery system, read our complete, step-by-step guide to selling solar storage.  Click the image to download our comprehensive guide to selling storage. Energy efficiency: Besides battery storage, talking to customers about the importance of energy efficiency can also unlock the door to additional sales. From home improvements like windows, ceiling fans, and appliance replacements, to system monitoring software, you can help maximize the value of your client’s solar investment by showcasing opportunities to lower home electricity consumption and curb future energy bills.    Key takeaways When pitched properly, introducing additional products during a solar sales presentation should never scare away new customers. By first establishing trust with long-term benefits as the goal, selling extra products and services is easiest when the information is clear and introduced with a strong value proposition.  To learn more about how to increase your solar business by broadening what you offer customers, watch the entire webinar on-demand — or download it and listen on the way to one of those appointments.  Click above to listen to the whole webinar on demand. Then, if you’d like to see for yourself how Aurora can help making adding products like battery storage a breeze, schedule a personalized demo. ### You closed the deal, now what? How to generate revenue after a solar sale is complete Going solar isn’t just a transaction between a homeowner and a contractor, it’s a journey. From the first point of contact to system decommissioning, solar companies and their clients can expect to work together for 25 years or more, with many opportunities along the way to generate additional revenue.   In our Money on the Table webinar, our expert panelists demonstrated how solar companies can expand their business with new products and services like battery storage, EV charging, and more.   Click above to watch the webinar on demand. In this blog, Bodhi CEO Scott Nguyen helps us explore a typical solar customer’s journey to illustrate the best ways you can earn referrals, introduce new products, and offer additional services after a solar sale is complete.  Start on the right foot First, if you want to generate revenue after a solar sale, you have to provide the best possible installation experience. While sales representatives will do everything they can to close a new deal, the same personal attention to a customer’s needs should continue at every step of the solar installation process. According to Scott, as many as 4 out of 5 homeowners going solar report a negative installation experience due to extended timelines, poor communication, or unmet expectations.  To set customers’ expectations and address uncertainties, solar companies should always aim to establish realistic time frames for permitting, installation, and interconnection, while laying out the entire construction process in an easy-to-understand format.  Make sure the customer knows exactly what will happen with their solar install. Although plenty of installations are performed without any unexpected hurdles, delays in solar development are fairly common due to the individual nature of each project. Whenever things go wrong, even if only mildly, solar companies should strive to get ahead of potential issues and inform customers of the steps they are taking to get things back on track.  By guiding homeowners through the ups and downs of an installation, solar providers can remain trusted partners in the eyes of the customer, building credibility by doing whatever it takes to help their clients. Establishing trust and providing a great initial experience will give solar providers a leg-up above their competition.     Stay in contact with your customers  Even after the long and occasionally grueling installation process is complete, solar companies should stay in contact with their customers to continue to build a relationship. Here are some effective ways to keep that customer connection strong:   Monthly performance reports: Although most companies give buyers the power to monitor their own solar panels, sending a monthly performance report is a great way to stay in contact after a sale. By automating these reports, companies can add dozens of contact points with their clients every year, without an excessive amount of time spent to set it up.    Customer referral programs: If you give your customers a great experience, they will be more likely to recommend your services to others going solar. With an incentivized referral program, you can reward happy customers directly when they advocate for your brand and deliver leads to your inbox. Referrals are critical to generating new business and have been shown to account for as much as 50% of residential solar sales.   Tips, tricks, and advice: If you’ve already established yourself as a trusted solar expert, you can keep customers engaged with your company through ongoing tips, tricks, and advice for solar ownership. Whether through social media platforms or a blog and email list, you can encourage customers to follow your business online or sign up for a newsletter to stay posted on important system information, company giveaways, and more.  The solar sales and install process is a great time to start building towards a long-term relationship with your customers. By staying in contact with your customers, either directly or indirectly, your business can remain at the forefront of your clients’ home electricity decision making. Rather than simply appearing every so often to try and sell new services, customers that can see the ongoing value of your business may be more receptive to the idea of after-sale products alongside monthly reports, ownership advice, and incentivized programs.  Customize after-sale products and services  Finally, to make sure your customers receive an honest and personalized experience throughout their system’s lifetime, custom tailoring the products, services, and programs you offer them after a sale is a must. With a personalized approach to after-sale products and services, solar companies can showcase precisely how their offerings will add value to their customers’ unique installations.  For example, let’s say that your business has decided to offer battery backup storage for solar installations. While it would only take a small amount of time to draft a form email to all of your existing customers with the subject line “We Now Sell Batteries,” you’ll likely find more success in after-market sales with a personal touch.  By calling or emailing customers individually, your after-sale conversation to introduce solar storage (or another product) can be put in the context of your customer's unique system. Specifically, some solar installations will need a system upgrade to accommodate a new battery, while other “storage-ready” grid-tied inverters can seamlessly incorporate backup power.  Click the image to download our comprehensive guide to selling storage. Likewise, since solar panels last for over 25 years and people continue to use electricity every day, it’s never too late to increase a home’s energy efficiency to maximize energy savings. By talking directly with your customers to understand their electricity use, you can tailor your energy-efficiency product and service offerings based on exactly what may be relevant or valuable to their property. This can include new appliances, ceiling fans, window replacements, and more.    Key takeaways At the end of the day, when someone purchases a solar energy system, they are investing in an incredibly valuable asset for their property’s long-term electricity expenses. As a solar company, your role is to help home and business owners achieve their renewable energy goals by introducing the products and services that can deliver the most value, both before and after an initial sale.   To generate revenue after a contract is signed:    Always aim to create a high-quality post-sale customer experienceStay in contact with your customers to keep them thinking about their energy and your businessTailor future product and service offerings to fit your customers’ unique systems To learn more tips and tricks for keeping those revenue streams going after the initial sale, be sure to watch the entire webinar on-demand. If you have more questions after that, reach out for a personalized demo to discuss the unique challenges your business faces.  ### Can You Use The Investment Tax Credit (ITC) For Battery Storage? (IRA UPDATE) Monday, August 15, 2022 UPDATE: YES YOU CAN! With the passage of the Inflation Reduction Act, the solar investment tax credit (ITC) has been upped back to 30% (including direct pay for non-profit and government entities), extended for 10 YEARS (with steps down after that), and now includes standalone (i.e. battery) storage. What does it mean for those of us in the solar industry? This is great progress. It will help make storage more affordable and put it within reach for more people. And it doesn’t just mean those deciding to go solar now, either. Current solar customers who didn’t add storage at the time of their install because it wasn’t financially feasible now have another incentive. Here are a few resources to help you help customers take advantage of these new storage incentives: How to grow your solar business with storage (backed by data) The step-by-step guide to selling storage The pocket guide to selling storage Click the image to download our comprehensive guide to selling storage. EDITOR'S NOTE: We'll keep the rest of the blog here for posterity, but the answer to the question posed in the headline is now unequivocally YES. Material below this line reflects the conditions prior to the passing of the IRA. The Federal Investment Tax Credit (ITC) is arguably the most significant financial incentive for installing solar in the U.S. today. This tax credit has also helped the industry grow by more than 10,000% since it was implemented less than 15 years ago. The ITC is currently 26% through the end of 2022 for residential solar, thanks to Congress delaying the phase down for two years. As of now, it is scheduled to drop to 22% for 2023, and 0 for residential solar in 2024. If you’re wondering if the ITC savings also applies to home solar battery storage, this article will walk you through everything you need to know. What is the Federal Investment Tax Credit? The Federal Investment Tax Credit (or ITC) allows homeowners who buy and own their new solar PV system, and “commence construction” before December 31, 2022, to recoup up to 26% of the total cost of their solar installation through a deduction in their federal taxes (tax liability). (For more about what “commencing construction” means, see this article from SEIA.) Is Solar Battery Storage Eligible for the ITC? Solar installations are definitely eligible for the ITC, but what about solar battery systems? If a homeowner installs both a solar PV and a battery storage system, the savings does extend to storage! However, there is one very important caveat: the energy used to charge the battery storage system must come 100% from solar, and not at all from the grid. Although energy storage devices were not written into the ITC and batteries themselves are not “solar energy properties” (equipment that generates electricity from the sun), the Internal Revenue Service (IRS) has interpreted the tax code in the past to include residential solar storage if it is charged exclusively from solar. Note: Tax codes are complicated! We at Aurora Solar are solar experts, not tax experts. Please consult a tax professional for your specific situation. What About Adding Storage to an Existing PV System? If a homeowner wants to add storage to their existing PV system, it may still qualify for the ITC! In a 2018 private ruling, the IRS clarified that the ITC can still be applied to a battery storage system if it is added within a year of the qualified solar installation. Important Things to Keep in Mind Technically private rulings only apply to that specific case addressed by the IRS, but because the IRS has ruled on multiple occasions that solar energy storage (when met by certain conditions) are eligible for the ITC, it’s widely accepted that storage is eligible. Energy storage systems without a qualified renewable energy source are not eligible for the ITC. There may be other financial incentives available for solar storage. State and/or local energy providers may also offer storage incentives. If they do, you can couple that with the ITC for additional savings. Unless Congress renews the ITC, 2023 is the last year residential solar and storage are eligible for this incentive. Additional Resources We’ve written about the ITC extensively in the past; most recently in an article about solar incentives in California and how the ITC step down will work for residential and commercial solar projects. If you want to dig even deeper, we have a beginners guide to financial incentives for installing solar and a 5-part article series on solar finance 101. If you’re looking for resources to brush up on your solar and storage sales, check out our solar sales articles. Here are a few we’d recommend starting with: 3 Ways to Market and Sell Solar Storage More Successfully Getting Started With Remote Solar Sales How to Unlock More Remote Sales Opportunities According to Remote Sales Expert J.P. Gerken ### UPDATED — What you need to know about CPUC’s proposed changes to NEM April, 2023 UPDATE The Net Billing Tariff — commonly known as NEM 3.0 — has taken effect. Please visit our NEM 3.0 resource page all the latest information. Here are some quick links for further reading: How to sell solar in 2023 despite NEM 3.0 California Net Billing Tariff (NEM 3.0): frequently asked questions Should your PV systems face west with California's Net Billing Tariff? Explaining and modeling California's Net Billing Tariff (NEM 3.0) Contact us to quickly run through any additional questions Click above to learn more about selling solar under NEM 3.0. Original blog below December 16, 2022 UPDATE: By a 5-0 vote, CPUC passed The Net Billing tariff (commonly referred to as NEM-3) at its December 15, 2022 meeting. We will provide more information shortly, including how this affects installers in California. Subscribe to our newsletter to be sure you get all the latest analysis.(We also have a new blog with more information on what was in the NEM-3 proposal.)  We'll keep everything below, as is, for the record. The California Public Utilities Commission (CPUC) published their proposed decision for a successor net metering program as scheduled on December 13, 2021; referring to the successor as “Net Billing tariff” (instead of NEM-3). If it passes as is, it will destroy California’s thriving rooftop solar market, wipe out countless solar jobs, hurt (more than help) low-income communities' ability to afford solar, and thwart the state’s clean energy goals. The proposed changes include new residential monthly solar fees, the use of the Avoided Cost Calculator (ACC) to determine net metering rates, instantaneous netting, and retroactive changes for existing NEM 1.0 and NEM 2.0 customers. What does this mean for rooftop solar customers? As written, the proposed Net Billing tariff would:  Tack on about $56 in monthly residential fixed solar fees, almost $700 a year, for a typical 7kW solar system Reduce the credits consumers receive for extra solar energy they produce and give to the utility by 80%, from ~24 cents/kWh to ~5 cents/kWh Roughly double the current payback period for residential customers The full CPUC proposed decision can be found here. It’s worth noting that the proposed decision uses an assumption that residential solar can be installed at a customer price of $2.34/W. This value excludes the costs related to supply chain issues, standard equipment upgrades, and financing the solar system. We expect the costs will be closer to $3.00 - $3.50/W in 2023. Below is a quick preliminary summary that covers a few of the key proposed changes. We also ran simulations of a typical residential and commercial solar installation to help provide more context on the effects this proposed Net Billing tariff would have on typical solar projects.  There's Still Time to Fix The NEM Successor This is not the final decision. The thin silver lining right now might be that this is the starting point for NEM’s successor. The earliest the CPUC will be voting on a final decision is January 27, 2022.  If you’re a solar supporter, an affordable clean energy and consumer rights advocate, and/or a solar customer (from any state), get involved! The California Solar & Storage Association (CALSSA) is leading the coalition effort to save solar; follow their LinkedIn page to learn more about what you can do today to help and get real-time updates.  Residential solar is getting hit the hardest, but lasting disastrous changes are coming for all solar customers and installers. Governor Newsom hasn’t said anything since he acknowledged, “We still have more work to do” back in January. If you work in solar, tell Governor Newsom the Net Billing tariff puts your job and the jobs of thousands of others at risk. CALSSA has an email template you can use — it’s quick and easy — or give his office a call. Key CPUC Proposed Changes to NEM Fixed Monthly Solar Fees For Residential Solar (Grid Participation Charge) New monthly “Grid Participation Charge” for residential customers — $8.00 per kW (CEC AC kW) of installed solar capacity. For a 7kW system, the monthly Grid Participation Charge would be $56, $672 a year. Commercial solar customers are exempt. Low-income solar customers are exempt — residential customers eligible for CARE or FERA, resident-owners of single-family homes in disadvantaged communities, and residential customers who live in California Indian Country. Previous residential non-bypassable charges are now included in the Grid Participation Charge. After 10 years, the Grid Participation Charge will be revisited and may change. Applies to new homes built under CA’s Title 24. Significant Decrease of NEM Credit Value (Export Compensation Rate) + Different Values For Each Hour Instead of the current consistent time-of-use values, the NEM credit value will be produced using the Avoided Cost Calculator. Roughly an 80% decrease in credit value; from today’s ~24 cents/kWh to ~5 cents/kWh. Credit value will be different for each hour and will vary for each of CA’s climate zones. For the first 5 years from the interconnection date, the credit value will be based on a 5-year schedule of values for each hour from the Avoided Cost Calculator. After that, it will be recalculated every year based on averaged monthly avoided cost values. Applies to all Net Billing tariff (NEM-3) customers — residential, commercial, and low-income. No transition glidepath to ease the decrease in NEM credit value; the credit value will drop as soon as the successor tariff is implemented. Rate Changes For Residential Residential customers who are not low-income must move to an existing highly differentiated TOU rate: PG&E – EV2-A SCE – TOU-D-PRIME  SDG&E – EV-TOU-5  These rates include a monthly charge (in addition to the Grid Participation Charge) of $12 a month for SCE and $16 a month for SDG&E. Low-income customers may select a TOU rate of their choice. No changes to commercial project rates. Temporary Market Transition Credits For Residential A “Market Transition Credit” will be offered to PG&E and SCE residential customers to help ease the transition to Net Billing tariff. The credit is paid out monthly for 10 years, and is only available for customers who install solar in the first 4 years of the new tariff. After the first year, credits will decrease by 25% per year for the next 3 years. PG&E – Credit to start at $1.62 per kW for non low-income residents and $4.36 per kW for low-income SCE – Credit to start at $3.59 per kW for non low-income residents and $5.25 per kW for low-income SDG&E – None Market Transition Credits are not available for the following: any SDG&E customers, any commercial customers, and those required to install solar from CA’s Title 24. Click to enlarge. Click to enlarge. Retroactive Changes For Residential NEM-1 and NEM-2 Customers The 20-year eligibility period for current NEM-1 and NEM-2 residential customers will be reduced to 15 years. Existing commercial and low-income residential customers under NEM-1 and NEM-2 are excluded, their 20-year grandfathering protection remains unchanged. NEM-2 Ends 120 Days After Final Decision The new Net Billing tariff will take effect 120 days after the final decision is made (e.g. if the final decision is made on July 14, 2022, the effective date is November 11, 2022). Solar customers connecting to the grid after the 120 days will temporarily be billed on NEM-2, then moved to the Net Billing tariff when the new billing is ready.  We’re assuming a solar project with a completed interconnection application date stamped on or before the effective date will still be eligible for NEM-2 with a 15-year eligibility period, but there is some uncertainty about this and we’re anticipating it will be clarified over the next few weeks.  Additional Details These proposed changes to NEM will only affect PG&E, SCE, SDG&E territories. Interconnection fees and annual true-ups are unchanged. Imports and exports will be calculated based on instantaneous netting of consumption and production, rather than netting consumption and production in hourly intervals for residential or 15-minute intervals for commercial. Residential and commercial projects can install systems to meet 150% of their energy demand (to account for future EV or heating systems). Creation of the “Equity Fund” with a budget of $150 million a year to help low-income customers adopt solar; details to be worked out later. Creation of a “Storage Evolution Fund” to provide an incentive for all existing NEM-2 customers who voluntarily switch to the new Net Billing tariff within the first 4 years. CPUC will reevaluate the Net Billing tariff program in 5 years. Comparing NEM-2 and Net Billing Tariff With Aurora and HelioScope To help provide a little more context, we ran residential and commercial simulations in Aurora and HelioScope using a house and commercial building very close to one another in Pleasanton, CA. Residential We modeled both a 4 kW and 8 kW residential system using PG&E’s TOU-C rate prior to getting solar, and moved to EV2 with solar in Aurora. We estimated the export rules as being an 80% reduction from retail rate, which approximately matches the ACC export values.  Click to enlarge. As shown in the table, under the Net Billing tariff, the customer’s monthly utility bill savings for an 8kW system would fall from 93% of their pre-solar utility bill to 35%. Six years is added onto their system payback period. If we downsize the system by half, to 4kW, you can see the payback period improves a little due to less energy being exported to the grid — but is still years longer than with NEM-2. Commercial We modeled both a 429kW and 274kW commercial system in HelioScope using PG&E’s B-1 TOU rate. We averaged the ACC values for every TOU period (Peak, Off peak, etc.), with an overall average of $0.05/kWh export rate. Click to enlarge. As shown in the table below, for the full-sized 429kW system offsetting 100% of the energy consumption, the payback period increased by 28% and monthly bill savings dropped by 23%.  Since there are no new Grid Participation Charges for commercial systems, all the negative impacts are from the lower export rate. For the smaller 274kW system sized to offset 60% of the building’s energy consumption, the differences between NEM-2 and the new tariff are much smaller — 11% increase in payback period and 6% decrease in monthly bill savings. A very special thank you to Andrew Gong (our senior research engineer) and Rehan Siddiqui (our customer success manager) for helping with the software simulations! Featured image by Amy Elting. ### Now you can: Use multi-input module level power electronics (MI MLPE) in your Aurora solar designs As a solar installer, you have a wide variety of projects. Some are a breeze to design, with a large roof face and no shading. For each of those, however, you’ve likely had a project with partial shading or where you have to connect two banks of panels on different roof faces on the same string inverter. Any installer that’s designed projects like these in the past knows that there were a couple ways to approach them, each with pros and cons:  Single-input DC optimizers and microinverters: These increase energy output and more efficiently use space on a partially shaded roof, but are more expensive at scale. String inverters with multiple MPPTs: These are cheaper and can maximize efficiency connecting arrays on different faces if designed properly, but can result in shading losses. Of course, you likely already know the solution: Multi-input DC optimizers and microinverters. While these were once more specialty — re: expensive — solutions, the technology has improved to the point where they can be a great option for many projects. They maximize the output of the roof space while using fewer components, which results in a great balance between maximum output and lower cost.  However, Aurora users probably also noticed something else: we didn’t support MI MLPEs. Until now. You can now easily create projects with MI MLPEs in Aurora. Thanks to their increasing popularity, and your requests, we are adding support for MI MLPEs in Aurora starting immediately. No more workarounds, no more fudging. So whether you have a tricky design, or you just use MI by default on larger projects, you can now more easily design those projects in Aurora. How to add MI MLPEs to your projects When you want to use MI MLPEs, you have a couple simple options. (Check out our Help Center article on the topic for the full directions.) You can add multi-input MLPEs with Energy Mode AutoDesigner. It looks like this: You can also add multi-input MLPEs through the AutoStringer option in the site menu. If you select them in the Solar Panel inspector, a modal will appear prompting you to Go to AutoStringer. It looks like this: For complete directions, again, please see our Multi-input Module Level Power Electronics Help Center page. It's as simple as that. If you have any questions, or would like to see MI MLPE in action, schedule a quick, personalized demo. ### LIDAR: What it is, how it works, and a huge update Today we rely on (and take for granted) a lot of amazing technological achievements that would’ve seemed like magic just a few decades ago. We can finish up a work document on our phone while traveling 500 miles per hour at 30,000 feet. And the USB-C charger you use to charge that phone? It has more computing power than the computers that helped astronauts go to the moon. In the solar industry, LIDAR — planes (or drones) flying over vast areas of the country, bouncing laser beams off structures and the ground to determine their heights — is one of those things, and it has become one of the critical technologies installers rely on to generate accurate designs. In this blog we’re going to explain a bit more about how we use LIDAR at Aurora to help make your design process quicker and easier, and we’ll also share some exciting news about our updated LIDAR data. LIDAR’s Role at Aurora At Aurora, we use LIDAR data to calculate building heights, roof slopes, and tree heights. In turn, we use these calculations to power our NREL-validated irradiance and shading analysis — so you can get them right from your Aurora app, rather than making time-consuming site visits. LIDAR is a powerful tool that we use in products like Design Mode and Sales Mode, so you can do things like calculate irradiance and energy offset at the click of a button. It’s also a critical part of Lead Capture AI and Aurora AI, helping to rapidly generate roof models for customers and designers alike.  But where do we get our LIDAR data from? Unlike other solutions that may only rely on one map imagery or LIDAR provider, we use a network of providers so we can be confident that every project uses the most accurate data. Some of our sources are public agencies, like The National Oceanic and Atmospheric Administration (NOAA) and The United States Geological Survey (USGS), who capture LIDAR data for a variety of reasons, including measuring damage after natural disasters like earthquakes and forest fires and mapping areas for potential mineral resources. By combining multiple reliable sources into one proprietary Aurora database, we’re able to deliver highly-accurate shading and performance simulation for our customers.   What’s New Because of the important role LIDAR plays, our customers need to have the most up-to-date data whenever they work on a solar project. To make sure this happens, we have a dedicated geospatial team that continuously monitors and enhances the underlying data that powers Aurora's industry-leading accuracy. So, when we found out that USGS had released new data from 2019, our team was ready to perform an essential update. Updating our LIDAR data to include the new USGS data did a couple important things:  it introduced new coverage and it refreshed old coverage. We also wanted to provide more accurate data with higher resolution and point density, which is the amount of measurements taken per area.  Aurora's updated LIDAR coverage. Overall, the LIDAR update resulted in: Refreshing roughly 1.8 million square miles across the United StatesUpdating the average year of data to 2018 (ranging between 2011 and 2021) from 2010 (ranging between 1996 and 2018)Increasing the point density from 9.2 points per square meter to around 12.8 points per square meterIncreasing coverage from 95.79% to 98.26% of the US population  In 2018, Aurora’s LIDAR covered 95.79% of the US population. After the LIDAR refresh, 98.26% of the population is now covered by Aurora’s LIDAR.  To explore our LIDAR coverage for yourself, check out this map: (Map not showing up? Click here to explore.) Key Challenges to Solve  Tackling a task as large as this LIDAR update wasn’t easy. There were a few key challenges to address.  First, adding and storing a huge amount of LIDAR data was a tremendous task. The new data more than doubled our previous database size to over 280 terabytes—adding 180 terabytes to the almost 101 terabytes of the original dataset. This data came in many files, which could be inconsistent with how elements such as point density, coordinate system, and boundaries in the files were labeled. The files themselves were also inconsistent in size, ranging from 1-2 megabytes to 2 gigabytes.  In addition, there was overlap from the original LIDAR data sources, so it was important to pick the newest dataset for any given area.  Another challenge was setting up fast access to the LIDAR data from the Aurora app. We want LIDAR to load in seconds for any project, but since there is so much LIDAR data, simply scanning through all the files would mean it would take minutes for data to show up in the Aurora app.  Finally, if the LIDAR files covering a certain site were too small, they would have to be merged together with other files to cover the larger area, which requires time to download and crop. On the other hand, if one file covers too large of an area, you would have to crop and find the points that actually cover the house property. Cropping and downloading on both ends could take a long time. Making the correct tradeoff between not overcomplicating the database with too many files and optimizing download time was a key concern.  The coverage area of a large LIDAR file in Ephraim, WI. An example of a LIDAR file that cuts off the middle of a house in Palo Alto. The LIDAR for the other part of the house is stored in a different file. To effectively use LIDAR and map imagery in our products, and give customers a great user experience, we had to address all of these challenges. And we had to do this while maintaining the level of current data availability and reliability you rely on.   LIDAR update process We can break the LIDAR update process down into four steps: 1. Download and cache the new LIDAR datasets. 2. Split the data into tiles. 3. Verify the usability of data. Manually check that each dataset is correct. 4. Migrate verified data into production. While these steps seem relatively simple by themselves, our main challenge was repeating this for 180 terabytes of new LIDAR data. Downloading new LIDAR As we download the data, we verify that the LIDAR file is properly formatted, extracting the useful metadata to a database. Some examples of useful metadata are the number of points, the coordinate reference system, and the boundary of all the points — any files missing these fields are marked as invalid.  Invalid LIDAR files are not processed any further, as they could cause unexpected errors in our pipelines, or worse, pass inaccurate data into production. Other extreme examples of invalid files include files with no data or files with malformed metadata.  Splitting the files Splitting the files helps us make sure that project designers can access these LIDAR points in Aurora in a reasonable amount of time. Any given LIDAR file can cover anywhere from a few square meters to hundreds of square miles. This means that a single project location might be composed of dozens of tiny LIDAR files or a single huge LIDAR file. To guarantee that LIDAR for any project loads in a reasonable time, we reorganized the LIDAR points into millions of small tiles. A tile is just a square area on the map. Chopping up the map of the entire world into trillions of tiles guarantees that a project's bounding box is within a single tile, in the best case, or 4 neighboring tiles in the worst case. Another benefit of reorganizing the datasets into this tile format is that if newer LIDAR data is added, we can simply replace the old tile with the new one, because the bounding box is the same. An example of four tiles in Palo Alto, CA. So, the splitting step for a dataset is done by cropping or merging all of its original LIDAR files into a series of neat and consistent square tiles. Verifying the data With all our datasets in this tile format, we complete a final QA verification to filter out the few datasets that are not useful or incorrect. At this point, we need to review and revise: Datasets with mismatching metadataRegions without buildings For example, some datasets have incorrect height units where the points are listed in feet, but the actual unit is supposed to be meters. We take sample tiles from each dataset and manually inspect them to make sure that they don’t have any of these anomalies. You can see that the roofs in this project are very steep. This is caused by the fact that although the LIDAR files stated that the units were in meters, the actual points were listed in feet, which caused the points to map much higher than in reality. When this happens, we need to manually rescale the points from feet to meters before deploying to production. In the picture above, the LIDAR points are significantly off center from the building. When this happens, we have to manually realign it because our algorithms can only automatically align LIDAR that are less than 10 meters off. LIDAR coverage of a mountain with no structures. Since some of the LIDAR datasets were collected for survey reasons, these datasets do not contain any buildings, so they are removed from our production dataset. Deploying the data to production The final step in this process is to deploy the tiles for our services to access. Of course, it’s not as simple as replacing all the old tiles with new ones; we want to select and deliver the best option for project designers based on both time and quality. We based our selection criteria on point density and age of the dataset that the tile originated from. For reference, a point density of 0.7/m2 is acceptable, and a point density of 4 or more is quite good. And of course, newer data is always more preferable. The same house at (L-R): 0.7 points/m2, 4 points/m2, and the full 40+ points/m2 In closing... Since LIDAR is such a huge part of many installers’ sales and design process, we wanted to make sure to let you look under the hood and see how it goes from a plane shooting lasers to something you quickly and easily access via your Aurora app. If you have any questions that we didn’t answer here, or you’d simply like to learn more, please reach out for a personalized demonstration. While a lot of work went into this LIDAR update, we hope you’ll eventually come to take it for granted, just like watching a movie on your cell phone on a plane’s WiFi. ### Your guide to HOAs & solar panels: 5 strategies to get approval In many areas, Homeowners Associations (HOAs) can present significant barriers to homeowners’ ability to install solar. In 2020, for example, Solar United Neighbors estimated that HOAs wrongly denying residents the ability to go solar had cost Virginia solar contractors more than $7 million in retail solar sales since 2014. While Virginia has since passed a law protecting homeowners who want to install solar from “burdensome homeowners association (HOA) restrictions,” in many states HOAs are still butting heads with homeowners that want to install solar. As a solar contractor, how much HOAs impact your business depends on your state’s laws and the HOA bylaws in the neighborhoods you target. However, there are a number of strategies you can employ to help ensure HOA approval for your customers’ PV solar systems, regardless of where you do business. For this article, we went right to the source, getting proven techniques from longtime solar contractors who have extensive experience working with HOAs. We supplement those interviews with our own extensive research to help you close more sales for projects in HOA communities — and guide your prospective customer through the process as well. HOAs' impact on solar installations HOAs are neighborhood organizations that create and enforce rules for houses or condominiums in established communities. Solar Power World says, “A major directive of the HOA is neighborhood uniformity and/or a high standard of appearance for each property.” HOAs’ concerns, and the resulting rules, about solar installations tend to relate to how PV panels will affect the look of neighborhoods, and in turn property values. These rules can impact a homeowner’s efforts to go solar. A significant proportion of American homeowners interact with an HOA: over 370,000 HOAs in the US regulate about 40 million households or 53% of owner-occupied households. That means there’s a good chance that your prospect needs to work with one. However, about half of US states have laws preventing HOAs from denying solar for aesthetic reasons, so the impact on your business is partially dependent on where you operate. See how customizing your proposal can help you close more sales — whether an HOA is involved or not. How to get solar approval from an HOA It’s helpful to understand the typical process for getting approval for a solar installation from an HOA so that you are better able to guide your customer through it. Usually, a customer requests an application from their HOA or gives the contractor permission to do so. Mike Busby, Co-Founder & President of Victory Solar, a leading residential and commercial installer in Texas, spoke with Aurora about his company’s extensive experience working with HOAs. He states that his company does all the HOA paperwork on the homeowner’s behalf, only getting the homeowner involved if they have to. Bobby Custard, Solar Consultant for Pur Solar & Electrical, an Arizona-based contractor with over 40 years of electrical contracting experience, also shared his insights about interacting with HOAs. He says that after Pur Solar has given the customer everything they need to review and sign, the company notifies the HOA when they begin the permitting process. They send the HOA a copy of the plans, the proposal, and images of what the project will look like. If the application is approved by the HOA, you can move forward with the installation. If not, you should understand the applicable laws in your state in case you are able to help your customer appeal the decision. We’ll cover some of those laws in just a bit. 5 strategies to expedite the HOA application process There are a number of best practices to keep in mind that may help make the process of getting HOA solar approval easier and increase the likelihood of a successful outcome. 1. Know your state’s laws “Solar access” laws that protect homeowners’ rights during the HOA solar approval process have been adopted by many states — in fact, there are now over 25 states that have some version of solar access rights. Given that you may be the one educating your customers about their rights in this respect, it’s important to know your state’s existing laws, whether they provide protections from HOA solar restrictions, and what forms they take. What are solar access laws and how do they work? Solar access laws prevent HOAs from prohibiting solar panel installations or having contracts that restrict homeowners from installing them. However, HOAs can usually make certain requests about a system, as long as they don’t make the proposed solar system less effective or more expensive. For example, HOAs are often allowed to place certain restrictions on systems, like retaining the right to influence design elements of a rooftop solar array, such as requiring that all electrical wiring be placed out of sight. California has had The Solar Rights Act since 1978, which has helped encourage the growth of solar in the state and is the basis for many other states’ protective laws. It includes protections that limit HOA ability to pass prohibitive laws but allows an HOA to impose “reasonable restrictions” on solar energy systems. These restrictions are currently limited to ones that don’t increase the cost of a proposed system by more than $1,000 or decrease its potential performance by more than 10%. Under this law, a homeowner does have some responsibility to their neighbors when they seek to go solar. For example, in multifamily dwellings with common roof areas an applicant must notify each owner in the building about a proposal. Additionally, they might also be required to have homeowner liability coverage and provide proof of this to their HOA annually. Arizona has similar solar access laws to California but with less stringency and specificity about what an HOA can and cannot do. For example, the “reasonableness” of HOA solar installation restrictions is decided on a case-by-case basis in the courts. However, Custard explains that protective Arizona laws have made the HOA approval process very easy for Pur Solar & Electrical. 60-80% of Pur Solar’s installations involve HOAs, and they have never been rejected. He states that even when his company installed several systems near upscale private golf courses, they were able to install the panels facing the fairway for one and facing the putting green for another. The actual provisions of solar access laws vary widely by state and comprehensive information about state and local rules is available at the Database of State Incentives for Renewables and Efficiency (DSIRE). 2. Be your customer’s guide through the HOA approval process Functioning as your prospect’s expert on how to navigate their HOA’s solar stipulations and state laws from the beginning of the sales process can go a long way towards winning the deal. Find out the HOA’s rules about PV panel installation early, particularly any rules regarding design and placement. These can impact aspects of the installation process, such as system price, even if your state has solar access laws. Gauge your prospect’s level of familiarity with this topic and make sure they’re aware of their HOA’s rules, as well as their state’s laws. “Many homeowners are not aware of their rights,” says Custard. He explains that a homeowner may have just bought their house or might be new to the area.  “They may have just gotten their HOA rule book, and they’re trying to figure out what direction they can put their car or what their yard has to look like,” Custard said. “So they’re a little bit overwhelmed and gun shy.”  Victory Solar’s Busby adds that while some people know how the approval process works or are even on their HOA board, others are completely unaware of how it works. Custard explains that prospects are often concerned about what their HOA will say regarding installing solar. To help ease these concerns, his team makes sure to show the homeowner information about Arizona’s HOA solar laws through emails or printed articles.  “The prospect feels much more comfortable moving forward knowing that if they put down a deposit and get the ball rolling with solar,” Custard said. “The HOA isn’t going to be throwing speed bumps in the path.” Educating your prospect is a great way to turn them into a customer. Click the image to get The Solar Sales Follow-up Kit, to help answer all their basic solar questions. 3. Have a Streamlined HOA Application Process It helps to show your prospects that you and your team are aware of how to achieve an expedited approval process. For example, there are ways you can reassure a prospect’s HOA and address their concerns. This can be done by demonstrating how PV panels can increase property values and providing examples of successful installations you have done for similar neighborhoods and home types. Busby notes that Victory Solar has a streamlined process in place to ensure HOA solar approval given that they deal with HOAs on about 90% of their projects.  “We probably submit too much paperwork but have a 100% approval rate,” he explained. “The paperwork has got to be very detailed and ironclad. An HOA can rarely oppose that.” Busby also asserts that an important part of a smooth HOA solar approval process is having an operations team that gets paperwork together efficiently.  “You have to make the right hires within the operations group of your organization because they’re just as important as your roof crew,” he advised. “If they’re fast on the paperwork approval it flows down through every part of the operations side. As a result, we’re very quick. We install systems within 30 to 40 days while the industry average is 150 days.” Speed is key when it comes to solar sales. Click the image to see how integrated financing can help close more deals in the room. 4. Be Creative and Flexible HOA rules may require that you adjust your approach and think outside the box, even in a state with solar access laws. Victory Solar’s Busby had a couple real-world examples to help show the importance of flexibility and creativity:  Victory Solar was able to secure approval for a client with a Spanish tile roof whose HOA had already rejected ground mount system proposals from three different contractors. They did this by suggesting a ballasted ground mount system with a black mesh fence screen to obscure the system from view. It included removing the grass and putting in white rock for a flat roof commercial system on the ground and ensuring the system was below the fence line. One customer in an affluent neighborhood had an HOA that wanted the solar system to be installed out of view. Victory’s team noticed that the customer had an old unused concrete tennis court and suggested the customer repurpose the court as a solar pad for a ballasted ground mount solar system. There's no denying it: Black-on-black panels look GOOD. You may also consider adjusting the equipment you use. For example, using solid black panels.  “HOAs very much prefer a solid black panel with a black screen instead of a white paper backing with a silver frame,” Custard explained. “When we use these kinds of panels they are more receptive to the installation and are less likely to come back with any questions, even in places that have really specific, stringent rules.” 5. Educate Solar Prospects and HOAs Providing educational information to both prospects and HOAs is a great way to help improve the HOA approval process, and ultimately close more business.  Laura Ann Arnold of the Indiana Distributed Energy Alliance, a state that currently has a host of solar related HOA challenges, says that “the solar industry as a whole needs to stay vigilant on HOA solar issues and work to educate the public as more people want to go solar.” This may mean providing homeowners with information about HOA prohibitions and restrictions regarding solar in order to encourage them to ask questions before they buy a home. It may also mean seeking ways to educate HOA boards about removing outdated strictures or easing overly prohibitive rules.  Arnold describes how some boards don’t understand the impact of certain rules like limiting solar to the back of the house or away from the street when it faces north. “There is a lack of understanding about the technology and the economics.” Using these techniques when working with a customer and their Homeowner’s Association can help you offer the best customer service and increase the likelihood of closing the sale.  A common theme for all of these tips, and our final takeaway, is that coming from a position of cooperation and consensus can lead to an expedited, and ultimately successful, approval process.  As Custard explains, “As long as you’re civil with an HOA so that you don’t end up on their radar as a ‘problem person,’ they’re much more likely to help instead of hinder the process.” ### Solar 101: Solar panel roof setbacks Editor's note: This article was posted in August, 2022. For the most recent information and Aurora features, please visit our "How to Place Fire Pathways" Help Center article. Designing a solar system requires more than just jumping into some software and putting panels on a roof. Among many other things, it requires an intimate knowledge of federal, state, and local regulatory nuts and bolts. One of the most complex things to consider can be solar panel roofing setbacks. These are required under fire code, but they can differ drastically from jurisdiction to jurisdiction. This means that understanding roof setbacks is essential to delivering accurate designs to customers, avoiding change orders, and ultimately helping your business be more efficient... and profitable.  What is a solar panel roof setback? A solar panel roof setback — also called fire setbacks and jurisdiction setbacks — requires a certain amount of space between a solar panel on a roof and rooftop components (an HVAC system or vent) by federal, local, and international codes. These setbacks usually range from 18-36 inches, and allow space for firefighters to vent smoke, perform rescue operations, and keep fire from spreading to other buildings.  Most jurisdictions base their setback requirements on the recommendations of local fire marshals, and many setback rules that apply to solar installations aren’t necessarily designed for solar. But there are globally recognized fire standards that installers are required to follow as part of successful solar design projects. International Fire Code Solar roof setbacks are required under the 2018 International Fire Code Section 1204. The IFC contains regulations to protect life and property from fire and explosion, and ranges from covering general fire precautions, firefighter access, emergency planning, and more. The IFC mandates the following rules for solar roof setbacks: Residential A 36 inch pathway must be available spanning from the bottom roof edge to the ridge.Setbacks at ridge:For PV arrays taking up 33% of the roof or less: 18 inch setback on both sides of the ridge.For PV arrays taking up more than 33% of the roof: 36 inch setback on both sides of ridge.A 36 inch pathway is required directly below a roof exit or rescue opening.  Non-residential A 6 foot perimeter around the edges of the roof.Pathways at intervals no greater than 150 feet throughout the length and width of the roof.A pathway no less than 4 feet wide surrounding any roof access hatches or vents, with at least one 4 foot pathway to a parapet or roof edge.For other ventilation options, setbacks range from 8-4 feet. There’s a solar fire code for ground-mounted systems, too, so for solar installers in the business of ground-mounted systems, it’d be most wise to check out Section 1204.4 of the IFC.  The IFC is in use or adopted in 42 states, the District of Columbia, New York City, Guam, and Puerto Rico. Click here to learn more about IFC adoption by jurisdiction.  How fire setbacks affect solar design No installer can ignore solar roof setbacks and pass inspection, but uninstallable solar designs are sold to customers all the time. Ignoring fire setbacks in designs unfortunately misleads customers, causes delays, and costs money.  Accurate, built-in fire setbacks prevent change orders and help your business complete more deals. It’s best not to sacrifice due diligence when it comes to roof setbacks. Incorporating local fire setback requirements into solar plans from the start pays dividends as it helps ensure a seamless installation and satisfied solar customers in the long run. The code legally has to be met anyway, so planning it from the beginning prevents backtracking on the project and creating customer service issues. Fire code varies significantly from state-to-state, and even town-to-town. If the IFC isn’t in use across an entire service area, it’s up to the solar installer to make sure the project is in compliance with its local authority having jurisdiction (AHJ).  Keep in mind, though, that even if solar installers follow the best practices of the IFC, they still might not get a permit from their jurisdiction. For example, New York’s strict fire code makes it exceedingly difficult for the city to scale rooftop solar, and Palo Alto, CA has regulatory hurdles so cumbersome that many solar installers have packed up shop.  Though the IFC is adopted by many states and municipalities, solar fire code is still largely determined by individual towns, cities, and other local governments. Some localities don’t even have solar setback requirements.  If you work in multiple jurisdictions with different fire codes, keeping track of them can be a daunting process. What’s more, designing multiple systems across different code jurisdictions is a design error waiting to happen. See how Aurora lets you navigate this complex code ecosystem quickly and easily. How ignoring fire setbacks can lead to unhappy solar customers Acknowledging the significance of solar panel roofing setbacks for local jurisdictions is a key piece of understanding what solar sales teams need to ensure solar customer success with their prospects. It’s understandable for solar designs to try and maximize every square foot of roof space, especially to please an indecisive solar prospect. But, if solar projects are sold that don't acknowledge solar setback requirements, a solar client is likely to be disappointed. Money is lost and trust is broken if solar sales teams overpromise a solar design output at the expense of not considering solar panel roof setbacks. In the case of a solar customer being given false expectations, these clients will get the bad news of change orders, installation delays, and lower-than-advertised solar output.  Regardless of where a sales team gets solar designs, the plan that they sell to their customers must take into consideration a host of regulatory factors, including setbacks.  How can you make this happen? Here are some helpful resources: How to Place Fire PathwaysHow to add and change rooftop setbacksHow to plan for fire pathways and setbacks Juggling the confusing world of solar fire code and setback requirements is a hassle, for sure. We think our setback interface makes it pretty simple, but don't take our word for it. Get your questions together, schedule a demo, and put us to the test. ### How to use AI to speed up your solar sales, marketing, and design Do you ever feel like there are simply not enough hours in the day to run your solar business? From talking to potential customers to qualifying leads, designing systems, making sales, and actually installing new panels, there are so many facets of running a solar company that can take time out of the day and money out of your balance sheet.  Last year, the National Renewable Energy Laboratory found that the customer acquisition process accounted for roughly 20% of a residential solar business's total costs on average, nationwide. Up 18% from 2020, this presents an enormous opportunity for solar companies to find creative ways to cut costs and streamline their lead acquisition and sales processes.   So how do you make your solar business more efficient? Increasingly, the answer is AI: artificial intelligence designed specifically for the solar industry.   Using AI to accelerate solar sales Celebrating the Summer of AI at Aurora Solar, we are out on the road talking to companies across the country both in-person and online about their solar sales processes.  In a recent webinar, Aurora Solar Product Marketing Managers Sherry Huang and Stephen Gerken demonstrated exactly how AI can be used to speed up your lead management and conversion processes without sacrificing accuracy at any step.  By cutting down on the time-intensive manual processes throughout the marketing, design, sales, and contracting cycles, AI lets companies sort out unqualified leads and keep their potential customers engaged with fast and accurate system proposals.  Watch the entire webinar on-demand to get all the info. But, in the spirit of saving time, in this blog, we’ll highlight three quick ways that AI can instantly speed up your solar sales process.  Get more high-quality leads In a recent survey, we found that over a third of solar businesses use external lead services to supplement their sales pipeline. While purchasing customer information can be a great way to get more solar leads, there are also many drawbacks to this method. Drive leads right from your own website. Third-party lead services, for example, often sell their inventory to multiple companies (a.k.a. your competitors) and it can be hard to stand out when the solar installers across town have the same customer information that you do.  Even further, relying on external sources can cause your business to fall behind on its own organic lead generation process, forcing you to continue purchasing new customer contacts every time your pipeline is looking a bit scarce.  To spend less time and money talking to purchased leads, and drive more sales, you can use AI to give potential customers a personalized experience. Using Aurora Solar’s Lead Capture AI, you can embed a powerful tool directly on your website to build customer trust, engage homeowners, and capture digital leads — digital leads that you own. While nearly every solar website includes some sort of “how much you will save” feature, few widgets are as interactive, easy-to-use, and advanced as Aurora Solar’s Lead Capture AI. With nothing more than a street address and monthly bill estimate, customers using Lead Capture AI on your website can instantly generate an accurate 3D solar estimate for their specific home.  Essentially, Lead Capture AI can keep customers visually engaged with real-world imagery to instantly build confidence in your company’s services. As a part of the engaging 3D solar estimate, Lead Capture AI automatically calculates its quantified benefits to display accurate estimates of annual electricity production, energy offset, and local utility bill savings.   Instantly qualify new customers Seconds after a customer clicks through Lead Capture AI on your website, all of their lead information is sent directly to the Aurora app, or any system you want — CRM, inbox, etc. — via API. From there, you can determine whether your sales team should spend time pursuing the lead based on the information they provide.   Who can say no to savings like these? If the customer lives in your service area and has a large enough roof and electrical bill to qualify for solar savings, then it's up to you to jump into action, create a proposal, and set up a meeting with the customer.   Here, time is of the essence, as online prospects are 7x more likely to attend sales meetings if contacted within the hour, and 78% of customers are more likely to choose the solar company that contacts them first.  Learn more about how to Qualify a solar customer in 10 minutes.  No matter how your customer initially contacted you, speeding up the qualification process can help you generate more business with homeowners that are actively thinking about going solar. By using AI to cut down on the manual aspects of the qualification process, your company saves time, energy, and stress by only talking to customers who are fit for a solar energy system.  When designing your proposal prior to a meeting, or directly in front of the customer, Aurora AI can quickly and accurately determine the performance and quantified benefits of a solar energy system.  Measuring roof space: With over half a million roof models used to train the AI, Aurora Solar uses proprietary algorithms to create full 3D models in 30 seconds. While solar developers may be used to visiting homes and measuring everything manually, Aurora’s advanced LIDAR data and HD map imagery instantly produces accurate measurements of a roof’s height, pitch, and obstructions.     Accurate measurements via LIDAR save time, and money. Designing your system: Once the roof is drawn, Aurora’s irradiance data can be used to determine exactly how a system should be installed. Based on the available roof faces, pitches, trees or adjacent buildings that would cause shade, and even customer preferences, you can design a system with Aurora that will automatically estimate accurate performance data.    Energy bill savings: By combining accurate production models with real utility data, Aurora can instantly project 25 years of electricity bill spending against the cost of a solar energy system. With consistent information throughout the sales cycle, you can build customer confidence and satisfaction when actual performance matches your initial projections.  Want to show 25 years of savings? No problem. Once you’ve determined that a solar energy system will work for your customer, it’s time to stand out from the competition with a high-quality proposal that presents your company's unique selling points.  Create proposals that will sell  It is no secret that most customers receive multiple quotes before going solar, so you have to create accurate systems, quickly, to take sales across the finish line — before someone else seizes the opportunity.  While keeping customers engaged, answering questions, and making proposal changes on the fly — right in front of the customer — solar company representatives can confidently use Sales Mode to make accurate calculations on the backend, so that they can spend more time presenting and selling the value of their unique services.   Both online and in-person, you can walk your customers through their personalized proposal in Sales Mode to develop an ideal solar system, while overcoming objections in real-time with a personalized proposal based on customer feedback. No matter how minor or major the system changes are, you can build customer trust and move the conversation forward with accurate adjustments to the system price and performance.  When it comes to proposals, personalization is key. Of course, if your customer is not quite ready to go solar at the end of your presentation, there’s no sense in rushing their decision to force a hasty sale. Instead, Sales Mode allows solar companies to generate interactive proposals that customers can send to their spouses, partners, friends, or neighbors to help them make the decision on their own time.  Complete with full 3D views and detailed information about your company, the solar energy system, financing, and contracting all in one place, Sales Mode’s interactive proposals are designed to make your customers' decisions as easy and accurate as possible.  In closing...  In working with some of the best companies in the solar industry, Aurora is proud to have developed purposeful AI programs that help solar installers reduce the time, energy, and expenses that it takes to run their businesses.  Click the image to learn more about Aurora's Summer of AI. From marketing to lead qualification and sales, Lead Capture AI and Aurora AI are designed to help you work seamlessly from end to end, so that every piece of customer information remains organized, accurate, and updated instantly in live proposals. With less time spent chasing questionable leads, drawing roof faces, and designing solar energy systems, we hope that our AI solutions can help you spend more time soaking in the sun this summer, knowing that your customers and their energy systems are doing the same. Learn more about Aurora Solar’s Summer of AI. ### Can an API do that? Request an On-Demand Roof Model Roof modeling is one of the parts of the solar install process that has been changed the most by technology. What used to require several truck rolls, manual inputs, and complex tools, can now be accomplished in minutes, without visiting the site at all.  Just a few years ago, solar designers relied on multiple truck rolls and site visits to generate accurate site models for solar system designs. Advances in solar software have changed that. Our customers now use Aurora to remotely model and design installable solar systems, all from their computers.  Even more, Aurora's Expert Design Service enables growing businesses to scale more quickly and efficiently by leveraging Aurora’s team of expert designers to produce site models on demand. In fact, our Expert Design Service team produces roof models for 30-40% of all Aurora projects today. Have a difficult project? Expert Design Service can help. But really, there’s no limit to the reasons that you might request a roof to be modeled for you, rather than modeling it yourself. When it comes to Aurora customers, some of the most common reasons we hear are: The quality of the roof models matters. It’s hard to get an accurate production estimate if a system is built on an inaccurate roof model.Hiring enough designers is difficult. As a solar company scales, finding enough designers, quickly enough, to meet demand can be tough. The natural ebbs and flows of the solar business. Nobody installs the same number of roofs every month; some months are incredibly busy, making design a strain on other areas, while other months are slower, and designers might be underutilized.Turnaround time. Aurora’s default SLA is 3 hours but most roof models are completed in less than an hour (or you can use our Expedited service to get it done in 30 minutes). It's hard for internal designers to complete models that quickly. (It’s hard for our competitors, too.) Solo's proposal turnaround time, for example, is measured in days. What it comes down to is that using roof design services can help solar businesses turn around designs more quickly, while keeping costs down and accuracy high.  How to request a roof model anytime, anywhere When your company needs roof modeling services — for any reason — you can request them within Aurora with a few clicks. This blog walks through all the steps and links out to some helpful resources. But, what if you want to embed the process to request a model right into your existing systems and processes? Or even automate a request as soon as an opportunity is created? There are a number of reasons you might want to do this, but there are a couple we’ve seen a lot with Aurora customers: To operate beyond a certain scale, solar installers have to automate workflows wherever possible, including roof model buildouts.Building roof models is often done before home visits. Since all you need to create a site model is an address, many of our customers trigger Expert Design Service requests via API calls as soon as a new lead’s address is populated in their CRM. Programmatically request Aurora's Expert Design Services With Aurora’s Sync API, you can build custom workflows that fit your business needs and existing systems, ultimately helping you scale faster and smarter. Sync API includes a suite of API endpoints and webhooks that help you programmatically deliver information across systems and get notified in real-time of any updates from Aurora. In this tutorial, we’ll show you how to use our Design Requests endpoint and corresponding webhook to programmatically request a roof model for any of your existing systems, and get a notification for when that model has been completed by Aurora’s expert team of designers. To get started, you’ll need: your Aurora tenant to be on the Custom planyour Aurora bearer tokenyour Aurora tenant_idURL to deliver Aurora webhooks to You or any Administrator for your Aurora tenant can retrieve the token and tenant ID from the API Settings page. Step 1. Subscribe to a design request completion webhook event Subscribe to the design_request_completed webhook event, pointing webhooks to your application that will process them. Step 2. Create a project Create a project using an address that will be instantly filled by the mock Expert Design Service. Step 3. Make an Expert Design Service request Request a roof model to be created for the project_id returned by the request above. Step 4. Look up the design_id for the newly created design On the webhook receipt, look up the design_id for the newly created design. Get started Ready to take your workflows to the next level? If you’re not an Aurora customer, or you’re not on a Custom Aurora plan, schedule a free demo to learn more. Already an Aurora customer? Check out our technical documentation page to implement this workflow for your company today! ### Want your solar proposal to stand out? Customize it Every solar sale is a story. A big part is the story of why a customer has decided to consider solar. And every successful solar salesperson pays attention to every customer's wants and needs. But, in a market as crowded as solar sales and installation has become, you need to do everything you can to tell your story, also — to make your company stand out from the crowd. And when you’re in front of a homeowner, nothing showcases your company quite like a professional, customized, personalized proposal. We’ve all seen those generic proposals — with too much text, minimal personal details, and nothing highlighting the company. They do nothing to set you apart in the customer’s mind, and can actually turn them off. So, what can you do to make sure your proposal stands out, sticks in the customer’s mind, and highlights all the best your company has to offer? In a recent webinar, Aurora Product Marketing Manager Stephen Gerken discussed how you can customize your proposals in Sales Mode to make sure they stand out. You can watch the whole webinar here, or by clicking below. Watch the full webinar to get all the details. In this two-part series based on the webinar, we’re highlighting 10 ways you can customize your proposals using Sales Mode. First, we’ll look at 5 ways customization can help you differentiate your company and boost homeowner confidence, then in the next post we’ll investigate 5 ways to educate the homeowner and overcome potential objections. It’s important to note here, however, that you're not limited only to these 10 things! Sales Mode gives you the flexibility to build the proposal that works best for your company. The level of customization and what content you include is up to you.  Let’s get started. About Us With so much competition, you’re not just selling the customer on solar, you’re selling them on yourself. You need to be sure the customer knows what sets your company apart, whatever that is.  Sales Mode lets you create a fully customizable “About Us” page so you can do just that. Have you been in business through thick and thin? Do you have some killer customer quotes? Do you have certifications? Highlight them on this page.  This is the customer’s introduction to your company, it’s your chance to make a first impression. And we all remember what they say about first impressions, right? Not getting a second chance and all that? Make sure your first impression is exactly what you want it to be, and that it sticks with a compelling About Us section. Highlight what makes your company special with a custom "About Us" page. Testimonials The partner feature to projects is testimonials. You’ve completed all those great projects, see if your customers are willing to talk about them. This personal touch can really resonate with customers.  And, thankfully, this isn’t like online reviews where everyone can write whatever they want. Curate your best projects and customers and help them craft the perfect testimonial.  Warranties Another thing that resonates with customers? Warranties and guarantees. Remember, solar is a big, unfamiliar purchase for most of your customers. Anything you can do to set their mind at ease will help your close rates.  A comparison table that shows what your company offers compared to the competition (provided you offer more), shows in a clear way why you’re the company to go with. Your Projects One of the best ways to prove you can complete a project is showing that you’ve completed similar projects before. So, make sure you highlight your successes in a visually compelling way.  It can be a map showing your projects in the area, it can be photos of your best work, it can be a combination of both. Just make sure it stands out and showcases your company’s strengths. Highlighting your best projects can give the homeowner confidence. Partnerships & Certifications In addition to being a big purchase, solar also has the reputation of being a long process with lots of hoops to jump through — mainly because it often is. But, if you have financing partners, or have a team of NABCEP-certified professionals, or are certified by the BBB, this can help customers understand that their project will go as smoothly as possible.  Click above to watch the whole webinar. Watch the whole webinar for step-by-step instructions on how to create pages like these — and more — and see some more real-life examples. Then check out our Help Center for even more information.  Have a particular customization in mind? Schedule a *customized* demo (we walk our talk!) and we’ll walk you through it. We’ll be back soon with the 5 customizations to help educate your customers and get them ready to buy. ### Does solar increase home value? The updated data Despite a flourishing market, selling solar isn’t always easy. Prospective solar customers have concerns about everything from ROI and how to finance their system, to how it will affect the aesthetics of their house. And they’ll likely want to know what having a PV system will do to the value of their home — now and in the future if they want to sell. The more specific you and your sales team can be about the benefits of installing solar, the better. And research continues to produce compelling data about how solar can increase the value of a home. This information can go a long way towards helping a prospect feel confident about making the leap. In this blog, we’ll look at some facts about how solar affects home value — and the studies behind them — that will help you close those tough clients. Their house will sell for more Lawrence Berkeley National Laboratory (LBNL) conducted a report that definitively showed that homes with solar sold for more than houses without it. The 2015 study, Selling Into the Sun: Price Premium Analysis of a Multi-state Dataset Of Solar Homes, analyzed 22,000 home sales in 8 states, 4,000 of which included PV systems, from 2002 to 2013. The study found that each watt of solar added an average of $4 to the home’s value in California and an average of $3 per watt elsewhere. This amounted to an average increase to the home’s selling price of $20,000 in California ($4 x 5,000W for the average system size) and $15,000 outside California ($3 x 5,000W). While that study is extensive in both timeframe and number of properties, it’s also seven years old. To say the housing market has changed since then would be an understatement, and savvy customers are going to want more recent data. A Zillow study from 2019 shows that even with all the ups and downs of the housing market, buyers will still pay a premium for houses with solar. Controlling for factors like size, location, number of bedrooms and bathrooms, and age, homes with solar sold for an average of 4.1% more than those without.  For the rest of this blog, we’ll use data from both studies. Learn more about the types of solar buyers you’re likely to encounter by checking out our research on the 5 Types of Solar Buyers. Their house will sell faster A 2006 study by the National Renewable Energy Laboratory (NREL) looking at specific properties in California dubbed by their developer as “high-performance” homes — homes that are both energy efficient and generate electricity — found that houses with PV systems sold 20% faster (and for 17% more) across several subdivisions built by different California builders.  This study of several hundred home sales also revealed that if a solar system was already installed and factored into the price, buyers were more likely to choose that house over others without solar. Some other interesting findings include: the aesthetics of a PV system were not identified as an obstacle to purchasing and the resale value was not damaged by the presence of a solar system. But, again, this data is more than 15 years old, and only looks at a couple hundred data points. What do more recent numbers say? Well, there’s been surprisingly little research on this topic over the past 15 years, but what is out there supports the idea that solar does, in general, help a house sell quicker. Interestingly, further Zillow research shows that while houses with solar do sell for a premium, they tend to sell marginally slower (about 2 days on average) than those without panels. That’s not the entire story, though. As energy rates increase, and home buyers become more attuned to environmental issues, solar panels — and other “green” features like programmable thermostats and car charging stations — can increase the demand for a home. “There is increased demand for green living. More than 80% of buyers now say energy-efficient features are important in selecting their home,” Sarah Mikhitarian, a Zillow senior economist, explained to CNBC. “We are increasingly finding that these attributes are important to prospective homebuyers. This is part of the reason that there is a premium associated with it. The other piece is that there is true value provided by solar panels — namely, future energy savings.” Click above to learn more about the technologies solar installers are using to get ahead. They’ll likely recoup the cost of the system when they sell The 4.1% selling price premium the 2019 Zillow study found equals about $9,300 for a “median-valued” home in the US. (Maths review: Think of “median” like the median of the highway — half of homes are valued higher, half lower.) The average cost of a PV system is $2.77 per watt, according to EnergySage data from January 2022. This means a 6-kW system would cost about $16,600, before any incentives, and about $12,300 after the federal solar tax credit discount. Even given that these prices and the incentives offered vary wildly, a nice shorthand is that a homeowner will likely recoup most of the cost of their solar installation when they sell their home. And again, that’s before factoring in any of the savings they’ll see on their energy bill. Educating your customers on the basics is a great way to close deals. Download our Solar Sales Follow-up Kit and let it answer the questions for you. Other considerations There are many factors that could influence how much (and whether) a PV system adds value to a home. Here are a few other considerations to make your customers aware of when considering the increased home value solar may provide. Regional markets and electricity costs? They matter Location(, location, location) matters with solar payback, too. (Photo by Brandon Nelson.) One factor to keep in mind is that the largest increases to the value of a property may tend to come in regions with high electricity rates and strong solar incentive programs. High energy costs can make a home with a PV system more sellable, according to a 2015 New York Times article. For instance, Long Island’s high energy rates have been a boon for the solar market there; the area is home to about 40% of all solar systems in New York. Gerard O’Connor, a local appraiser, stated that buyers are “certainly willing to pay more” for a home where high electricity prices increase the savings from PV systems. The 2019 Zillow study shows that regional markets are still a critical factor today. For example, the premium in New Jersey is almost 10%, and big metro areas, such as San Francisco (4.4%), often check in above the national average. Higher energy costs can also mean higher value for homes with solar during the appraisal process. When appraisers consider the role of a PV system in the calculation of a home’s value, electricity produced by the system can be considered income, whether due to savings or utility production credits, as noted in appraisal guidelines for green and high-performance properties from the Appraisal Foundation (see p. 36-38). Ensuring PV is factored into home value Lenders, real estate agents, and appraisers should account for the value added by a solar system — and some may not know to do this (so your customer should point it out). The Federal Housing Authority (FHA) and Fannie Mae both have guidelines for valuing the system during appraisal. Sandia National Laboratories has a free tool designed to help real estate appraisers and others calculate the value of a new or existing PV system. Most data focuses on owned PV systems Much of the research to date, including the LBNL and Zillow studies discussed here, focus on homes where the PV system is owned by the homeowners — not third-party owned systems financed with PPAs and leases. Also, leased systems or ones paid through a PPA will not be included in an FHA or Fannie Mae appraisal. Beyond the need for more data on how third-party-owned PV systems affect home resale value, these types of systems present their own unique complexities in the home sale, such as the need to transfer a PPA or lease to the buyer. System size and age More panels generally means more $ when a house sells. PV system size can also affect a home’s resale value. While the Zillow study doesn’t break down its data by system size, other research by Berkeley Labs has shown that each additional watt of solar capacity can add $4 to a home’s value. Another influencing factor might be the age of the system when the home is sold. The LBNL study notes that the depreciation of aging solar systems may decrease the value added to the home during appraisal. However, as the study authors note, it’s unclear exactly how system age impacts the numbers because there has been little research about it given the immaturity of the American solar market. Going solar is a significant decision for any homeowner. It requires careful consideration about the pros and cons, and a good amount of trust in the contractor they work with.  So build that trust! Be prepared to provide research-backed information about the benefits of solar, including the value it can add to their home in addition to the instant utility bill savings. This will help you build trust with prospects, and keep customers — past and present —  happy that they chose to work with you. More resources Looking for more ways to help educate potential customers?  The Solar Sales Follow-up Kit explains all the basics, from how panels work to the solar incentives homeowners can take advantage of, in a handy, easy-to-read format that's perfect to give to curious customers. FAQs Does a solar system increase the value of a home? Multiple studies indicate that a solar system can increase the value of your home. Research by Berkeley Labs has shown that each additional watt of solar capacity can add $4 to a home’s value.  Does a solar system make it easier to sell a home? There is not clear evidence either way on this question. While research by Zillow shows that more than 80% of buyers say energy-efficient features are important in selecting their home, it also found that homes with solar panels sold very marginally slower (2 days on average) than houses without solar panels. Does the increase in home value vary by region? Yes. The national average, according to Zillow, is about a 4% increase in home value. But this varies widely depending on your state, energy rates, and other factors.  Are there other solar benefits to consider? Yes! All this is independent of the energy bill savings, and cost certainty, that solar delivers to most customers.   ### 3 Spring Cleaning Tips to Optimize Your Solar Sales Spring has sprung, symbolizing new beginnings and brighter days ahead. And for many of us, this season is a chance to revamp old habits and set ourselves up for success for the rest of the year. Spring cleaning is usually focused on the home — but this year, we’re looking at ways to extend this concept to your solar business. In this blog, we’ll look at three tips for how to clean-up your solar sales processes to close more sales and optimize your workflows for a more efficient sales experience. Tip #1: Clean Out Dead Leads You have made several phone calls over several weeks, left voicemails, and sent out a bunch of emails — and you’re still not hearing back from that lead you were hoping to close. It may be time to move on to bigger and better things. Letting go of a lead you have worked hard for is not an easy task. However, in some cases, cutting your losses helps you refocus on the ones that are still warm and frees up space and time to get new ones.  A personalized proposal can make all the difference with cold leads. Knowing what type of buyer they are is an important first step. Click the image to learn more. Take a good, hard look at your leads. Are you still working on leads that have set up camp in your pipeline and won’t move? If yes, create a “last chances” list and give one final push to see if they re-engage. This push can include: A custom proposal tailored to their specific needs — one that zeroes out their electric bill (if possible), shows the environmental impact of their installation, or features just how great panels could look on their homeA last-chance discount with a deadline, to give them a sense of urgencyAn article, one-pager, or video highlighting “Why you should go solar now,” or “The top 5 reasons you should consider going solar with us” Make sure you’ve exhausted your options before classifying a lead as cold. But then be prepared to move on once you do. Tip #2: Declutter Your Sales Approach Do you find yourself going back and forth between different software tools when you create and present a proposal? If yes, you know how much valuable time (and sometimes valuable information, too) can get lost in the process. Nevermind the less-than-ideal experience it provides to the homeowner. Look at your current processes and see where the inefficiency is. Are some of your software tools outdated and inflexible? Are you able to make changes in real time without having to manually edit some parts of the proposal? Do you waste valuable time and risk losing leads to your competitors?  One way to declutter your sales approach is to consolidate your sales and proposal efforts into one software solution, like Aurora’s Sales Mode, that allows you to do everything from calculating financial estimates, to creating a design and make changes in real time, and then generating a contract for the customer on the spot.  A solution that covers your entire sales process, from first touch to contract, can help you close more deals. Tip #3: Polish Up Your Pitch The solar industry is constantly evolving — and with it, its buyers. A homeowner might have a very different reason for going solar today than they did five years ago, and it’s crucial to know the motivations and hesitations of today’s solar buyers.  One thing almost all consumers have in common today is that they want a personalized proposal — one that speaks to them and their specific needs and wants. Here are a few common problems sales teams face, and how customizing your proposals can help: Are homeowners confused about something during your pitch? Include some custom pages to help educate them, like a video or diagram outlining How Solar Works, How Storage Works, or How Incentives WorkAre you frequently struggling to overcome objections? Get in front of them with custom pages that explain the process in more detail. For example, if your team is coming across objections like, "Nah the market seems a bit iffy, I don't think now is a good time for me to go solar" you can create a custom page about the benefits of going solar now, including how it increases the value of your home, lets you take advantage of the incentives while you still can, and locks in your price of energy.Are you frequently losing to competitors? Add custom pages showing what makes your company different and better than the competition, like an About Us page, Reviews & Testimonials, Awards, etc. A customized proposal can put your company over the top. These are just a few examples, but by tailoring your pitch to your audience, you’ll differentiate yourself, better educate the homeowner, upsell more easily on other products, and get in front of any objections. So instead of using another cookie-cutter proposal, you can create a unique experience for the homeowner that you can then refine and polish over time to close more deals. Learn How Sales Mode can help you deliver customer proposals that close. And how do you know what your buyer is most interested in (and what they don’t care as much about)? Check out our end-user research that identified five different types of solar buyers. Try to determine which one your next lead might be, and learn what to focus your pitch on when you go knocking on their door. Ideally, you should be taking inventory of your sales process on a regular basis — not just for spring. But there is no better time to start than today. If you go through these three steps, you are ready to set new goals and boost your conversion rate. Happy cleaning! What to read next: 3 tips for writing a winning solar proposal — make sure every proposal you send gives you the best chance to close the deal To close more solar sales, don’t just build relationships with customers – challenge them! — The Challenger Model can help you shake up those tough-to-close leads The Solar Sales Playbook for Proposals That Close — This guide tackles 5 of the most common solar objections and gets advice from solar sales professionals on how to close them. Featured image by JESHOOTS.COM. ### New grant funding for online solar permitting available for all California AHJs We all know that the volume of solar installation permit applications is causing painful bottlenecks for authorities having jurisdiction (AHJs), installers, and residents alike.  While online solar permitting has been the dream for many, very few have been able to make it a reality because it has required a lot of resources to build and maintain. Until now.  Click above to get more grant information. The California Energy Commission (CEC) recently announced a $20 million grant funding opportunity through the California Automated Permit Processing Program (CalAPP). The purpose of CalAPP is to help all AHJs in incorporated cities and counties in California “implement an online, automated permitting platform that verifies code compliance and issues permits in real time for a solar energy system.” These grants are between $19,000-$100,000, depending on the latest estimated population size, and will help ease financial concerns and “recover the cost of establishing an eligible automated, online solar permitting platform.” Many will likely use their grants to adopt SolarAPP+ — a free, web-based portal, developed by the National Renewable Energy Laboratory, that automates project plan review and produces code-compliant approvals to help building departments to quickly issue permits for residential solar energy system installations. The grants can apply to a wide range of online permitting related costs like subscriptions, staff time associated with implementation, training, essential hardware, or developing their own portal. What’s more, the application form is surprisingly easy — we checked it out ourselves. The CalAPP Program launched June 1, 2022 and is now accepting grant funding applications on a first-come, first-served basis (while funding remains available). The submission deadline is May 1, 2023, and, again, every AHJ in California is eligible. Find out more details about the program and application manual here. This is, of course, potentially a huge boon to solar installers. So, what can you do to make sure your AHJs take advantage? The best thing to do right now is to contact your AHJs and encourage them to adopt SolarAPP+ and apply for CalAPP. If you’re not sure who your AHJ is, here’s a searchable AHJ registry.  Here are some additional resources: CalAPP “How-to-Apply” — A quick Zoom replay with a how-to guide for prospective grant applicants SolarAPP+ Introduction and Technical Demonstration — A YouTube overview of SolarAPP+ The actual CalAPP application In the announcement, CEC says, “achieving 100% clean electricity in California requires an acceleration of the development of rooftop solar projects. CalAPP funding is intended to encourage cities and counties to further enhance permitting processes and accelerate processing and turnaround time, particularly regarding plan review.” We couldn’t agree more. ### 3 tips for writing a winning solar sales proposal At the heart of any solar sale is a great proposal. A compelling, personalized proposal that speaks directly to your customer’s needs gives you a real leg up on the competition. Likewise, a generic, text-heavy proposal that reads like a legal contract can put your sales team at a disadvantage. But, what makes a great proposal? We had a roundtable discussion with a group of solar experts to answer that very question. Based on their advice, we developed the Solar Sales Playbook For Proposals That Close. Click below to download the full playbook. In this blog, we’ll look at some of the highlights from the playbook to get you started. Customize your proposal Before you do anything, you need to know what type of buyer you’re dealing with. Someone who’s looking for relief from a huge electric bill will want to see different things in their proposal than a homeowner who’s looking to help cut their environmental impact.  Our research on the 5 Types of Solar Buyers is a great place to get a detailed look at the different categories of buyers that you’ll likely encounter. But, it’s tough to know exactly what any particular customer is looking for before you meet them and ask them some questions. Once you know the unique challenges they face, and goals they have, you’re in a better spot to deliver a proposal that meets their specific needs. The roundtable of solar sales experts says… Being able to deliver a customized, frictionless proposal process is as important to your prospective customer as it is for your sales reps. Equipping your sales team with smart software will empower them to: Make adjustments on the spot based on customer feedback Show the customer the cost adders, incentives, and discounts that are automatically built into the system Close with automated contract generation and integrated e-signature options Making adjustments in real-time is key to a proposal that closes. Highlight the finances While every buyer is different, one thing most people are concerned about is system cost. With so many incentives, tax breaks, and other considerations, though, financing is also one of the things customers find most confusing. Solar customers appreciate when a proposal includes information that helps them make sense of their options. You can help remove financial barriers for prospective customers by showing them federal and local incentives, as well as attractive loan options tailored to their needs.  The roundtable of solar sales experts says… Use your proposal to position yourself as an informative teacher rather than a salesperson. By empathizing with your leads and working with them on their concerns, you will win their trust and leave a positive impression. This means you’ll need to be able to answer a few questions accurately, and honestly: How much will the system cost, all in? How much will the customer save over time? What are the details on the incentive types and loan options the customer may qualify for? There's no denying it: savings rules. Be exceptional  We know, you are exceptional! Don’t be afraid to show it, and make sure you have software that lets you present your company’s differentiators in a compelling way. The roundtable of solar sales experts says… Your company’s value should be clearly spelled out in all of your solar sales proposals so that your prospective customer doesn’t have to read between the lines. Be sure to highlight: Unique customer testimonials Warranties and other concrete benefits your company offers Experience, certifications, and other expertise your team brings to the table In closing… In the end, a great sales proposal that hits on all the questions and concerns each of your customers has helps you close more deals. Period. This blog just scratched the surface of the advice our experts shared on how to deliver proposals that close. To learn more details and strategies, be sure to get your copy of the full Solar Sales Playbook today. ### 3 easy ways to qualify a solar customer in 10 minutes Click above to watch the full webinar on-demand. Unfortunately, solar doesn't work for everyone.  When trying to operate an efficient sales cycle, solar companies can’t afford to waste too much time and energy on the wrong customers. Since only about 2% of cold contacts can be expected to eventually turn into sales, every second counts when pitching and qualifying potential solar buyers.  To cut down on lost time, future change orders, truck rolls, and even cancellations, solar companies must make their customer qualification process as fast and accurate as possible.  Using technology to qualify leads quickly With the right technology and resources, it’s now possible to qualify a solar customer in 10 minutes or less, almost anywhere in the world.  In a recent webinar, Aurora Solar Senior Product Marketing Manager Katherine Burk Cheema explained that making small, subtle changes to your existing lead acquisition process can help streamline sales and avoid time wasted on unqualified contacts.  To make the process as painless as possible for everyone involved, here are three simple steps for nearly instant solar customer qualification.  1. Conduct a virtual solar assessment The first step in every solar assessment is determining whether a property and its owner are fit for a PV system. While some experts can determine a home’s solar potential from its doorstep, most companies can’t afford the time and fuel it takes to drive and inspect every property that enters their sales cycle.    Solar companies can save time and energy by allowing sales reps to fill their schedules with virtual solar assessments. Without having to travel to a customer’s home, solar providers can ask all of their most critical qualification questions online or over the phone to determine whether or not an installation is feasible.   While every company has its own set of parameters to qualify a customer, virtual solar assessments can help you gather critical information, like: The amount of sunlight the property receives The customer's current electricity consumption and expenses  And whether or not they plan to move within the next few years  A quick, accurate initial site assessment — without having to visit the site — is a key to success. And since clear communication is one of the keys to a great customer experience, initial assessments can help potential buyers understand exactly why or why not solar is a good option for their property. Once a customer is qualified, companies can then afford to allocate more time toward an on-site assessment and next steps within the sales and installation processes.  2. Quickly create an accurate site design  With the customer’s precious attention on the line, a quick, customized site design is a great way to keep a homeowner engaged during a solar presentation. And while working efficiently to qualify the property, accurate projections of a site’s solar energy potential are critical to guarantee its value. Maintaining careful attention to detail and using modern solar design techniques are the best way to guarantee accuracy during the PV planning process. Today, solar installers do not have to physically measure a customer’s roof size and pitch to qualify the property for solar. Instead, Aurora Solar’s LIDAR and irradiance features can instantly determine the amount of sunlight a property receives, making it easy to calculate its solar potential.  Keeping every variable of the project in mind, accurate site designs must also account for any dormers or roof obstructions that could prevent panel placement, as well as surrounding trees or buildings that could partially shade a solar energy system.  To qualify customers as quickly as possible, Sales Mode AI allows solar companies to generate accurate roof designs in 30 seconds or less. Packed with intelligent features, Sales Mode AI uses artificial intelligence and machine learning to continuously improve its speed and accuracy.  Sales Mode makes it easy to accurately design a system — on the spot. (Click the gif to learn more.) 3. Educate and talk to your customer  Most importantly, to fully understand whether solar will work for a customer, focus on honest education and open communication. With every qualifying question, you can build customer trust by explaining in detail what each of the answers tells you about their qualification status.  Whether it’s how their credit score affects financing options, or how their electricity habits affect the size of their PV system, an open discussion can keep you and potential customers on the same page.    This is important because fully understanding the lead’s perspective can help you avoid lost sales. So, never assume anything during a presentation, and always aim to listen and fully explain every step of the process while addressing any questions that arrive.  Sales Mode gives you the ability to present a wealth of information to potential customers. If a customer is qualified, tell them exactly why you believe this to determine whether you’ve overlooked any variables. And if a customer isn’t qualified, let them know exactly why not. By treating potential customers with honesty and respect, both qualified and unqualified homeowners will be more likely to recommend your services to others looking to go solar.   Final thoughts With the right technology, lead processes, and a keen focus on unique customer variables, solar companies can qualify homeowners in ten minutes or less. To streamline your sales processes, solar companies should consider conducting virtual assessments, finding ways to create instant site designs, and always allowing for open communication.  And while nearly every solar company prefers to visit a job site at least once before construction begins, properly vetting interested homeowners saves a significant amount of time, energy, and resources from being spent on unqualified customers.  For more information, watch the full customer qualification webinar and schedule a personalized demo to get all your specific questions answered.  ### To close more solar sales, don’t just build relationships with customers – challenge them! Click above to watch the full webinar on-demand. Today, one of the most important things in a consumer’s buying experience is personalization. This is true whether you’re selling cakes or solar panels. A big reason personalization is so important is that most prospects do their research before talking to a sales representative. One of the downsides of solar customers doing their own research, however, is that there is a lot of misinformation about solar out there.  So, it’s crucial for you as a sales rep to take control of the conversation and guide the customer with information that’s tailored to their specific needs. But how, exactly, can you do that? This was the topic of our recent webinar Solar Sales Masters: How to Overcome Objections with Real-time Personalization. In the webinar, sales experts showed how you can determine what each potential customer is interested in and how to tailor your presentation to them. The experts also use the Challenger Model for sales, which was introduced in 2011 by Matthew Dixon and Brent Adamson in their book The Challenger Sale: Taking Control of the Customer Conversation. In this blog, we’ll investigate some of the examples from the webinar, and show how to use personalization, along with the Challenger Model, to increase your close rate when selling residential solar. Challenge objections with real-time personalization Aurora recently conducted research to identify the five most common solar buyer types. After analyzing many hours of 1:1 interviews, we identified five buyer personas: The Cost Saver, the Lifelong Learner, The Cool Kid on the Block, the Green Crusader, and the Independence Seeker.  Each persona has their own motivations and reasons for wanting to go solar, and their own potential reservations. The key is to understand which buyer type you’re dealing with, use that knowledge to tailor your sales pitch, and put some gentle pressure on them.  Let’s take a look at two of the most common buyer types, Cost Saver and Green Crusader, to see how you can use the Challenger Model and real-time personalization to close them more consistently. The Cost Saver  The Cost Saver will likely be gathering proposals from several solar companies, and if your proposal isn’t the cheapest — or at least extremely cost competitive — they may be inclined to go with the competition.  A great way to use the Challenger Model in this case is to work the three T’s from Dixon and Adamson’s book: Teach, Tailor, and Take Control. Let’s look at what you can do if a competitor’s proposal is significantly cheaper than yours. In this case, asking questions to help the customer realize what’s in both proposals, and what they value most could help:  What is the system’s production in kW? (Smaller installations will cost less, but also produce less power over the life of the system.) What financing assumptions are involved? (Is it a lease, what are the loan terms, etc.)  What is most important, up-front cost or quality? (There are always ways to cut corners on quality to get a lower cost.) Then Teach, Tailor, and Take Control. Focus on the numbers right away. Talk about national and local incentives, and show them financial projections and payback estimates. Even if your estimate is more expensive upfront, you may be able to show a better payout over time. (Click here to see how Sales Mode can help with this type of personalization.) Highlighting potential savings over time is a great way to pitch to the Cost Saver. The Green Crusader  The main concern this persona has is their responsibility to the environment and their community. A common objection you might get from them is that they don’t want solar unless they can offset 100% of their electricity use.  In this case, you can attempt to reframe their expectations. The first step is informing them that most homeowners do not offset 100%. Ask questions like:  If you could go solar today and come out even instead of saving money, would that still make sense to you?  What about adding solar and making other improvements to decrease your electricity use? (A home energy audit can be very helpful here.) Then, tailor your pitch and take control of the conversation. Highlight what else they can do to benefit the environment and show them a personalized system design with their energy and savings estimates. The Green Crusader wants to make a difference. Learn more These are just two examples of how personalizing your solar sales pitch in real-time, and challenging your potential customers, can help you close more deals. To see strategies for the other personas, watch the entire webinar. If you'd like to learn more about real-time personalization and how you can use it to your advantage, here are a few more resources: The Five Solar Buyers: A Guide to Persona-based Sales Close More Deals With Research-Backed Sales Strategies Increase Your Solar Sales using the Agile Sales Method   ### Community Solar 101 — How It Works As we discussed in our previous post in this series — Community Solar 101: The Basics — while solar energy has grown dramatically in the last few years, for nearly half of all households and businesses in the U.S., installing solar is not an option. With such a huge portion of the market unable to access solar through on-site installations, other options are needed to ensure that the benefits of solar energy are broadly accessible. Community solar — also referred to as solar gardens or shared solar — addresses this challenge by providing a way for multiple customers to share the solar energy produced by a solar array. Community solar has emerged as one of the fastest-growing sectors in the solar industry, with projects in 41 states, plus Washington DC, and 4.6 gigawatts installed as of the end of 2021. Data courtesy of NREL. Click the image to see the full report. Whether you want to access clean energy for your home or business but can’t (or prefer not to) install a system on your roof, are a solar professional looking to understand emerging markets, or just want to expand access to clean energy in your area, getting familiar with community solar can can open new opportunities. In today’s installment, we'll explore the variety of ways that community solar projects can be structured, how these different models work, and some of the complexities that project developers and participants need to consider. What is Community Solar? Just to quickly review, NREL defines community solar as a solar-electric system that provides power and/or financial benefit to multiple community members. While there are a number of different models for community solar, this definition highlights its core characteristic: It provides a way for a solar project to supply energy to multiple homes and businesses, and reduce their utility bills, without being located on their premises. How Does Community Solar Work? Community solar projects come in a variety of forms and because the sector is still emerging new approaches may arise. However, a few dominant models for community solar have been developed to date. How Members Participate: Subscription vs. Ownership Models From the perspective of participant experience, it's helpful to think of community solar arrangements in two broad categories: subscription and ownership models. In an ownership model, customers buy specific panels or a share in the array to meet their desired level of energy production. In a subscription model, the project is owned by a third-party, like the local utility or a company, and community members subscribe to a portion of the energy it produces. Ownership-based community solar projects require upfront payment by participants for their portion of the project, much as if a household or business was paying cash for a solar installation on their own property. Participants then receive credit for the actual amount of energy their portion of the project produces, either as a direct credit on their utility bill or through some other arrangement. A subscription model, on the other hand, usually requires no upfront fees to join and offers immediate savings because members subscribe to purchase solar energy at a lower rate than what they would typically pay their local utility. Because there are no upfront costs, this model provides a way for low-income community members to access the benefits of solar. Who Administers Community Solar Projects? In addition to variations in how customers participate (buying in versus subscribing), there are also a variety of different models of community solar depending on what type of organization owns and/or administers the project. NREL identifies three ownership models for community solar: utility-sponsored, special-purpose entity (SPE), and nonprofit. In a utility-sponsored model, the community solar project is owned or operated by a utility company, which opens it up to voluntary participation by their customers. Depending on the project, participants may pay upfront or make subscription payments. In return, participants receive credits on their utility bills proportional to their contribution and the amount of energy the system produced. Under this approach, participants typically buy rights to the benefits of a share of the energy produced (a subscription model), but do not have an ownership stake in the project itself. Another common structure for community solar projects is to have a nonprofit administer the project on behalf of donors or members. There are multiple ways that a nonprofit could approach this: They could develop and administer the project in a way that shares the benefits with participant members. In a variation of the previous approach, the nonprofit could partner with a for-profit third party that could own the system and take advantage of tax incentives. They could also solicit donations to support the development of the project. Note: This approach is not strictly “community solar” as the donors would not directly benefit from the energy produced, but might contribute for environmental or philanthropic reasons. Finally, in a special-purpose entity (SPE) model, a community solar project is developed by a group of individuals who join together in a business enterprise. One reason for developing a shared solar project in this way is that registering as a business enterprise may make it possible to take advantage of tax incentives, like the Investment Tax Credit, that would otherwise be unavailable to tax-exempt nonprofits (and some for-profit utilities). However, in choosing this approach, those developing the project must take on the legal and financial complexities of forming a business and complying with related regulations (as discussed below). Complexities of Community Solar The development of community solar projects can be financially and legally complex because of federal and state securities laws that govern investments. Transactions involving financial investment in an enterprise with the expectation of earning profit through the efforts of someone other than the investor are considered securities and are subject to specific regulations. The process of ensuring compliance with securities regulations can add significantly to the time and cost involved in project development and failure to properly comply may subject participants to liability. For these reasons, community solar project developers typically work to ensure that the project does not meet the legal definition of a traditional, taxable investment that would be governed by securities law. This results in a variety of rules about who can participate in community solar projects and how. For instance, it is common for projects to limit participation to those within a certain geographic area, and restrict the amount of energy participants can obtain from the project to their annual energy consumption. While project developers should seek professional legal and tax advice as they develop the structure of their project, NREL’s A Guide to Community Shared Solar provides a great starting point for understanding some of the legal implications of different models. Looking to the Future: Why Community Solar Matters Because community solar can reach the half of the population that is unable to go solar via rooftop systems, it is one of the biggest growth opportunities for the solar industry. In the last few years, this option has grown from being almost non-existent to serving thousands of customers across the nation. A map of community solar projects around the country, courtesy of Community Solar Hub, a clearinghouse of information on community solar. Community solar had a record-setting 2021, with over 950 MW-dc installed for the year. And that's just the beginning, as total community solar capacity is expected to more than double through 2026 — with the potential for greater growth if new state programs are created and current programs are expanded.  Expected community solar installations through 2026. Click to see more information. Not only is community solar a huge opportunity to supply more of our electricity with sustainable, domestic energy, it also has important equity implications. By providing affordable solar energy with low or no upfront costs and no credit rating or property ownership requirements, community solar opens up clean energy to groups that have traditionally had limited access. We look forward to keeping an eye on this market—and keeping you posted—as it develops! Interested in bringing community solar to your local area? Click through to explore these resources: Community Solar Hub, a SunShot-funded clearinghouse of resources for community solar supporters The Department of Energy’s National Community Solar Partnership , which connects community solar stakeholders and compiles resources The Rocky Mountain Institute’s Shine Program, which helps co-ops and municipal utilities develop community solar projects Don't forget to check out Part 1 of this series: Community Solar 101 — The Basics. ### Give Customers Access to Lightning-Quick Financing Decisions The solar sales process has many roadblocks. One of the worst places to hit a roadblock is after you’ve already sold the customer on a system only to find out that they’ll need financing. In this micro-webinar, Brian Soares from solar financing powerhouse Mosaic shows us how the new near-instant financing integration in Aurora can massively increase your close rates with just a few clicks. Click the image to watch the full webinar on-demand. ### Solar Technology to Watch in 2022 and Beyond The theme for this year’s Earth Month is “Invest in our planet,” and whether you work in the industry or not, there’s no arguing that solar is, and will continue to be, one of the big investments we need to make to, well, keep Earth livable.  For its part, the solar industry continues to grow at an amazing pace. While the pandemic did slow solar growth over the past couple years, the residential solar market did grow by over 30% in 2021, and looks strong over the next few years — despite facing supply chain issues and materials shortages.  One of the main things that will help the industry continue to grow? As usual, it comes back to the incredible pace of solar technology.  For this blog, we’ll look at some of the technological developments we find most exciting, and how they might affect the solar market and installers. This is by no means an exhaustive list, please let us know what you’re seeing out there and how you’re adapting. New Solar Tech in 2022 Here are some solar technologies in 2022 that we’re keeping an eye on. Perovskite Cells Perovskite cells are flexible, lightweight, and low-cost solar cells made using perovskite and organic materials. Perovskite cells hold promise to enhance photovoltaic deployment in a wide range of applications, such as powering vehicles and boats. But they’ve traditionally suffered from a couple challenges: efficiency and instability.  This year has seen a few research groups from around the world make real progress on the instability front.  By adding a ferrocene layer — essentially compounds with iron at their core — researchers from City University of Hong Kong made perovskite cells more stable and more efficient. In fact, in lab tests, this ferrocene layer could boost the efficiency of perovskite devices to 25%. These devices still face some real challenges, for example, scaling them up to size that’s useful for residential purposes. Right now, “the device area was defined and characterized as 0.08 cm2 by metal shadow mask.”  So, perovskite is still more on the level of an "interesting tech to watch" right now. More Efficient Solar Modules In 2020, the National Renewable Energy Laboratory (NREL) announced that it developed a six-junction solar cell prototype that achieved an impressive 47.1% efficiency. This new technology isn’t available for consumer photovoltaic installations for a number of reasons, but that doesn’t mean we don’t continue to make great strides in solar panel efficiency. The most efficient panels available to consumers are pushing 23% efficiency now, compared to about 15% just 10 years ago. Even incremental gains mean generating more power on smaller roof areas, lowering payback times and making solar attractive to more people. Recycled Silicon While a big part of solar’s appeal to many people is its environmental benefits, what to do when panels reach the end of their life is becoming an increasingly important question. Right now, silicon-based technology represents approximately 95% of total solar production, so anything we can do to make panels more recyclable is a huge plus.  A group of German researchers recently announced the development of 19.7% efficient PERC solar cells made from 100% recycled silicon. Silicon was recovered from end-of-life silicon panels, and could be recycled regardless of panel type, make, or origin.  This is just one example of the work being done in the recycling space, but the upside of this work is potentially huge. Silicon recycling will combat waste and create new markets for end-of-life solar products, while creating new streams of raw materials for panel manufacturing.  Solar Energy Storage Solar energy storage is another area where we expect to see significant growth in 2022. For reasons from energy independence to backup power, homeowners are increasingly considering solar battery storage.  This market is driven by the continuous improvements in battery technology, including high-capacity batteries with long discharge times — up to 10 hours is on the horizon. This article shows more about what’s available in battery tech. Along with improvements in battery technology, to really sell it to potential customers, modeling software has had to improve, too. And it has. For example, Battery Storage for Aurora allows you to present a homeowner with a pre-assembled smart recommendation that can be added to your solar design within seconds. Modernized Solar Software On the ground, perhaps the technology that affects solar installers’ day-to-day life the most is the solar sales and design software you use. All the best solar technology is meaningless without a way to sell and scale it.  The pace of innovation in solar software is incredibly fast. For our part, Sales Mode gives your sales team the industry’s most powerful 3D-design tool in an interactive, iPad-friendly format. It even lets your sales reps work with the customer to make changes to their proposal in real-time. Other important improvements include steps like integrated financing. While it may not seem as exciting as the other developments on this list, having financing options directly integrated into Sales Mode lets reps streamline loan pre-approval and documentation — for themselves and customers.  Learn More... Looking to read a little more? The Big Book of Solar Software Must-Haves goes in-depth on everything you need in a solar software solution. Get a 2-minute lesson on how integrated financing can help you close more deals. Want to listen to or watch something quick? Check out this webinar on how to power your sales team with AI. See how APIs can help you reduce errors and automate your solar processes. To get all your specific questions answered, schedule quick a demo. ### The Crucial Fight for Net Energy Metering: Defining the Stakes April 25, 2022 UPDATE: While this roundtable was held more than a year ago, it still holds up as an important primer as to what exactly is at stake in the battle for NEM, and what you can do to help. We can already see the difference individual actions can make, as CPUC has delayed its vote on NEM-3 "until further notice". This post, and the free session replay, answers a number of questions, including: What fights are coming next? What else can you do? What are the basics and who are the main parties involved?  If you're looking to be inspired to action, watch the entire replay. Roughly 40 states have mandated net energy metering (NEM) programs or other methods to compensate consumers for the excess solar energy they generate. And while the benefits of net energy metering are almost too vast to count, they include: encouraging investment in solar, stimulating the economy, and paying solar owners for the energy they generate.  Yet, even though the benefits of distributed solar and NEM programs benefit everyone (not just solar owners), investor-owned utilities (IOUs) across the U.S. have been working to dismantle NEM and to stifle competition. What’s happening with NEM was the topic of one of Empower 2021’s most gripping panels, Straight Talk: State Net Energy Metering Programs. It was truly a must-see, and you can check out the replay here.  In this lively session, panelists discussed why NEM has become so contentious, what’s happening right now in a few states fighting to save rooftop solar, why dismantling net metering runs counter to public interest and various state-led efforts like clean energy targets and energy assistance programs, and ways we can help save rooftop solar’s growth and jobs. To start to answer these questions, we’re producing a blog series based on the NEM panel from Empower 2021. This first post will set the stage, defining a few key terminologies and diving into the conflict between IOUs and NEM. We’ve included timestamps after each question, so you can follow along and learn more from the session replay.  Defining the terms: NEM, investor-owned utilities (IOUs), public interest (4:20) Aurora Solar’s own Sunny Wang explains net energy metering (NEM) and investor owned utilities (IOUs).  Sunny Wang, Director, Government and Non-Profit Relations, Aurora Solar  NEM is a mechanism that allows consumers to get credited for the extra energy they produce and give to the utility. It’s not a subsidy or incentive like the ITC. Investor owned utilities are private, for profit, government sanctioned monopolies that generate and distribute power to all of us. IOUs are owned by, and accountable to, their shareholders, and they make a profit off of their investments, like transmission and distribution lines — so the powerlines that you see everywhere on the street — and not from the energy that they generate. Jean Su of the Center for Biological Diversity helps us define  public interest, what it traditionally has meant, how it relates to NEM, and why it needs to be rethought and expanded. Jean Su, Energy Justice Program and Staff Attorney, Center for Biological Diversity  What public interest means, on the books and what it should mean, are two different issues. I’m sure many people here are very aware of the mechanism that we planted ourselves in, that started in the 1900s, for monopoly utilities. But, essentially all of our IOUs are regulated by state utility commissions. And a lot of the considerations that state utility commissions do in terms of regulating IOUs is to consider whether IOU proposals are within the public’s interest or not. And, for a very long time — from the early 1900s until now — there has been a traditional narrow view of public interest: that it is solely an economic issue, a cost issue. It completely ignores the greater issues that we are dealing with today, which include the climate emergency, which include severe racial inequalities in terms of the types of energy that is put out there and available to people, and of course, public interest as it relates to NEM and what types of considerations need to be really valued in evaluating the proper NEM policies. Where does the conflict between NEM and IOUs lie? (24:25) After getting a clear idea of what these terms mean, the potential conflicts become pretty clear. Meghan Nutting of Sunnova Energy puts it into perspective.  Meghan Nutting, Executive Vice President, Policy and Communications, Sunnova Energy This is where the conflict lies right now: We have these monopoly utilities that are used to having complete control over energy provision for all of their customers and not having to deal with competition. That’s why they’re regulated, and that’s why we have regulators that oversee them.  But, there are more technologies being offered right now, there are more opportunities for people to self-generate at their homes, and there are competitive suppliers that are able to offer consumers alternatives. So we have this huge tension between this competitive market and what consumers want, and then what monopolies are used to and the status quo.  And so that’s where a lot of these fights come from … you see the monopolies wanting to try to stifle rooftop solar and the growth of batteries because they see that as an existential threat to their existence and to the entire system that they’ve built their profits on over the past century.  But, the fact is, thanks to a lot of the work that organizations like Jean’s do, that the system is being blown apart. And this is also thanks to consumer demand and what consumers are asking for.  So, it’s a fascinating time to be in energy, as we are all working to break apart this system that hasn’t worked great for people to implement a new system that works better. But we’re up against these hugely powerful and well-funded entities that have a lot of power and control even over their own regulators. ### Earth Day 2022: 4 Experts Share Their Insights on the Future of Solar Storage Starting on Earth Day 2022, and continuing through the end of Earth Month, we wanted to highlight some previous pieces that still feel especially relevant today. To start, here's a blog from early in the pandemic about the potential of solar storage. This was before the Lights Went Out in Texas, and other circumstances that drove home how valuable battery storage can be. Sunnova EVP and Chief Marketing Officer Michael Grasso's words from the panel seem prescient today: "For many of us, COVID-19 means that our homes today have become our offices and our classrooms as well as where we take care of our families. Everyone needs power during and after a hurricane, earthquake, blizzard, or power safety shutoff. Backup power is no longer just a convenience — it’s a necessity." Who knew that more than two years in, the pandemic has likely changed the way we work forever, only increasing the case for battery storage. We join the panel with the question many continue to ask about battery storage... Could selling battery storage be the key to growing your solar installation business? Several industry leaders think so. In July, 2020, Aurora hosted its first ever virtual summit dedicated to navigating the unique challenges and possible opportunities amid COVID-19. One of the most popular sessions of the summit was Charging Up Your Sales with Battery Storage. In this post we’ll go over the top takeaways that industry leaders from Panasonic, Sunnova, CALSSA, and GAF Energy shared during the session. We’ll cover: Why storage is becoming increasingly important to homeowners How to position storage to close more solar + storage deals What the future of storage looks like and how to take advantage of it Why Are Storage Battery Sales Growing So Fast? With a 2019 market size of $19 billion and a currently predicted growth of 17.6% from 2020 to 2030, the battery market is booming. Sunnova’s EVP and Chief Marketing Officer, Michael Grasso, and CALSSA’s Policy Director Brad Heavner gave two main reasons customers are looking for solar + storage: 1. Energy Resiliency Energy storage allows customer’s solar systems to provide them with electricity during power outages. Greater demand for this is driven by two factors: Increased exposure to natural disasters such as wildfires, hurricanes, and blizzards Dissatisfaction with the local utility (for example, a power utility in Northern California recently declared bankruptcy and several utilities have increased planned black- or brown-outs.) 2. Time-of-Use Energy Policies Time-of-use (TOU) energy policies make customers pay more for the electricity they use during peak demand times (such as evening hours) than for electricity used during off-peak times (late night or daylight hours.) The growing nationwide trend towards TOU policies is making it more and more expensive to use energy when people want it most. Storage batteries allow homeowners to take advantage of time-of-use rates in two ways: Customers can store the energy they get from their solar system during the day and then use it in the evening when grid energy is expensive. Via net metering, customers can get paid more for stored solar energy by feeding their extra energy back into the grid during peak demand times. As homeowners experience both less reliable and more expensive grid energy, their demand is growing for a power source they can count on: battery storage. How Can I Present the Value of Energy Storage to Customers? Many solar professionals are new to selling storage, which is why we asked Michael Grasso and Reynolds Holmes, Sr. Director at GAF Energy, to present a few ways to sell solar + storage during their portion of the virtual summit. Here’s what they recommended: 1. Energy Resiliency Matters Michael Grasso explained that, “for many of us, COVID-19 means that our homes today have become our offices and our classrooms as well as where we take care of our families. Everyone needs power during and after a hurricane, earthquake, blizzard, or power safety shutoff. Backup power is no longer just a convenience — it’s a necessity.” 2. Point Out Local Benefits It’s easy for solar installers who have worked in the industry for a while to take their knowledge for granted and forget to mention all the benefits of solar. If your area has high time-of-use rates and/or net-metering structures that pay more for solar energy at peak-demand times, make sure you take the time to let your customers know the full benefits they’ll be getting. 3. Offer Flexible Financing Options When it comes to financing, nearly all the speakers on the panel recommended that installers who don’t have access to financing options on their own should consider partnering with a company that does. A few things the panelists recommended looking for are: A variety of lease and loan options (to accommodate a variety of customer needs) 25-yr warranties (for added customer confidence) New roofing and other prerequisites for solar systems (to solve customer limitations) The increased demand for storage doesn’t come without its set of obstacles. Fortunately, offering financing options and thoroughly explaining the benefits of storage to prospects can help overcome most of these obstacles. Click above to download our guide on selling storage. What Will the Next 5 Years Hold For Energy Storage? Before committing to adding storage to their businesses, a lot of solar installers want to know what the future of storage looks like. During the battery storage session we asked the panelists how they think the battery storage market will change over the next few years. Here’s what they had to say: 1. Exponential Growth in Aggregate Storage Aggregate energy storage refers to a large battery storage system that serves several homes, or even an entire neighborhood. There are already examples of these systems being used such as with California’s SGIP program or Sunrun’s effort to aggregate neighborhood systems. Michael Grasso foresees such storage systems multiplying nationwide within the next few years. He says, “it just makes sense to have solar on your roof, store its energy, and feed it back to a local grid for added value. It’s the logical progression of the future.” What does this trend mean for solar installers? Brad Heavner, Policy Director at CALSAA, adds, “I think that in a few years, independent solar installers will be able to partner with local energy aggregators. They’ll install storage batteries and the community aggregator will power them. It’s a great market opportunity.” 2. Increased Total Solution Offerings Panasonic’s Director of Solar and Energy Storage, Mukash Sethi, believes that more manufacturers will create total solar solutions: battery + inverter + panels. Three reasons that he believes this will happen are: Each storage battery has multiple complex operations, which makes it more difficult to integrate with electronics not specifically designed for its particular make and model. Homeowners and installers prefer the convenience of buying the whole system from one source. Solar teams can more easily specialize in sales and support for one company’s products, rather than trying to handle dozens of brands. The panel concluded that since demand for battery storage will only increase, offering battery storage is a worthwhile investment for solar installers and will soon become industry-standard.   Featured image by Photo Boards. ### How to Make Your Solar Company More Profitable The continuous growth of the solar industry has allowed many companies to profit from solar energy installations, while creating a tremendous amount of value for their customers. But even with substantial market growth, unfortunately, many companies trying to survive in this extremely competitive market have been limited by inadequate business practices when trying to earn a slice of the solar pie. To help make your solar company more profitable, let’s take a look at how the industry works, some of the risks involved, and a few specific tips on how to minimize inefficiencies and generate more sales.  Why do customers go solar? Of course, to understand how to make money in the solar industry, it is important to understand why PV panels are in demand in the first place.   No matter its size or location, the value proposition of a modern solar installation is typically based on three key factors: saving money, reducing greenhouse gas emissions, and/or increasing energy independence.  There are as many reasons that people go solar as there are houses with panels. And while the net-zero carbon goals of governments, businesses, and private citizens have allowed the industry to expand in recent years, a large chunk of customers choose to go solar to save money. In locations with net metering policies in place, for example, system owners who produce more power than is consumed on the property can even be compensated for that energy surplus that is fed back into the utility grid.  Combined with the lowering costs of installation, under the right circumstances, most modern solar panels systems can “pay for themselves” in under 10 years. There’s also a group that sees solar as an alternative to traditional grid power consumption. Independent solar panel owners can invest in a system to reduce monthly utility expenses, stunt long-term energy costs, or generate off-grid electricity with battery storage.  TL;DR, while there are some common motivators, every customer is different. To help installers get a sense of what certain customers are looking for — and how to sell to them — we conducted research that identified 5 common solar buyers.  While each buyer is primed to go solar, the sales strategies they respond to are vastly different. To learn more, visit our 5 Solar Buyers page and watch to our webinar. Click above to watch the free webinar on-demand. What are the risks associated with the solar industry? Although the solar industry has seen significant growth over the past decade, this does not guarantee success. Even when companies are doing everything they can to cut costs and boost sales, outside influences can still cause local solar demand to drop.  For example, if net metering policies are unfavorably adjusted or eliminated, that can have a real effect on the local market for rooftop solar. Likewise, home and business owners are less likely to go solar if utility rates somehow become more affordable.  Of course, most studies indicate that the highly volatile price of fossil fuels will continue to increase utility rates nationwide. So, it’s up to you to show that it’s extremely likely that solar will pay for itself over time.   Make sure your customers understand the long-term benefits of solar. Then there are risks that you have more control over. Things like negative user reviews and unexpected costs are risks that can absolutely sink a solar business. In our next section we’ll look at how to minimize some of these risks, and maximize your company’s profits. Tips to Make Your Solar Company More Profitable Solar companies thrive in the same way as any other business: higher sales and lower operating costs. Here are 4 strategies to help your company succeed on both fronts.  Build and Align Your Sales Team  Without the right people, it’s impossible to scale a business. There are obviously a number of important roles in every company, but for this piece we’ll focus on your direct money generators: salespeople. And while headhunting the best people is both costly and time-consuming, you can save significant time and resources on the hiring front by doing everything possible to keep your best employees once you hire them.  You can do this in a couple ways. First is making onboarding and training as simple and painless as possible. Think about it, the longer a new salesperson spends ramping up, the longer it takes them to start making commissions. The longer that takes, the less happy they’ll be.  Second is making sure those salespeople have everything at their disposal to close deals — even after just one meeting. Every additional homeowner meeting before a contract is signed means two things: more time goes by, and the homeowner is more likely to go with someone else. Either way, this can lead to fewer sales, and unhappy salespeople. Tools like Sales Mode can help in both these areas. It’s designed with salespeople in mind, allowing them to do everything from generating proposals, to working with customers on changes, to even e-signing in the room. (Watch the video below for more information.) https://s3.amazonaws.com/assets.aurorasolar.com/2022%2F02%2FSalesMode-Features-Video-35sec-R4.mp4 Eliminate Inefficiencies More than anything, solar companies can reduce operating expenses by creating accurate site designs to eliminate follow-up visits, contract changes, and other costly project delays.     In fact, change orders are one of the largest issues that impact developers’ profit margins, and solar professionals report an average of $583 in additional project costs for new designs.   As change orders impact approximately 10 to 30% of all solar projects, developers hoping to keep expenses low must do everything in their power to accurately project every part, cost, and consideration.  With software like Aurora’s, solar companies can generate fast and accurate roof models, including bankable shade reports, to cut wasted time and money.    Market Yourself  Finally, the most important step to landing more happy customers is knowing how to successfully market your solar company.  Utilizing both online and offline marketing strategies, having your company name visible within your service area is one of the best ways to be considered for new local solar development.  After identifying your brand’s key selling points, it is then up to you to find the most effective ways to position your company’s value in front of your target audience. See what you can accomplish with Aurora, schedule a demo today. Make Leads Come to You Click above to learn more about Lead Capture AI. Solar companies are under constant pressure to develop quality leads. There are many strategies out there, from referrals to purchasing leads outright. And all these methods can be very successful if done right.  One lead generation technique that every company should have in their quiver is the ability to generate leads from their own web traffic. So, homeowners who come to your website to do research should have an easy way to raise their hand and say, “I want solar.”  Tools like Lead Capture AI can really give companies a leg up in this area. Since it’s embedded in your website, prospects don’t have to click away or send an email. They simply enter their address and an estimate of their utility bill, and Lead Capture AI shows them if solar will work on their house.  By having potential leads self-qualify, your salespeople never make a call or set an appointment until they’re sure the homeowner’s house qualifies, and they’re interested. In Closing The solar industry is thriving. But to keep your company thriving, you need to make sure you’re doing everything possible to bring in money, and reduce waste. This seems obvious, but it can be easier said than done.  This blog is just a start. Here are some other resources to help you maximize your solar company's potential. The Solar Sales Follow-Up Kit: Everything your customer needs to know to make an informed decision on solar. The Big Book of Solar Software Must Haves: Considering solar software for your business? See what the solution you choose needs to have. The Agile Sales Method: See how small businesses can capitalize on their flexibility to win a customer’s trust faster using Sales Mode in this on-demand webinar. Featured image by Kostiantyn Li. ### How to Provide a Great Solar Customer Experience and Get More Referrals Stop us if you’ve heard this before: The market for solar installations is extremely competitive. Companies in the industry have to do everything they can to get a leg up on the competition. But many installers are missing a relatively easy way to generate new business: creating the best possible customer experience. Creating this experience involves educating new prospects, setting clear expectations, and delivering promised results.  And while a great experience will certainly help close current deals, happy clients can also help generate referral business by referring new leads to your company — and these leads have a low cost of acquisition and high level of established trust.    To help your solar company generate more business and earn new referrals, this blog will cover: Why the solar customer experience is important What solar customers want in a sales scenario  How to provide exceptional service and earn referral business  Why is the solar customer experience important? The process of going solar typically involves months of planning and lead time. And despite its growing prominence around the world, most people don’t fully understand how it works.  Communication is job one in solar sales. As going solar is still a first-time endeavor for most homeowners, your reps have to educate new prospects on how they can uniquely benefit from PV energy while making the process of adoption as easy as possible.  By committing to open and honest communication, solar companies can establish a working relationship with a new customer before a contract is signed, and seamlessly guide them through the entire installation process.   By keeping communication open and real, businesses can ensure that every step of the project is completed to the client’s satisfaction and they are never left with any questions about their solar install. After all, if a customer believes in their purchase, they are much more likely to recommend it to someone else. As with any home project, customers tend to talk about their experience with friends, family, neighbors, and anyone else within earshot. So make sure that when they talk about their project they’ll include how helpful the installer was, how all their questions were answered, and how the system has delivered on the promised savings.  Not only will happy customers help generate new referrals, but always working to create a good customer experience will also help businesses avoid bad online reviews that could permanently damage your local reputation.  Get to know your prospect: What does a solar customer want? Many people these days and businesses are turning to solar energy as a long-term alternative to utility power. According to a study on the consumer perceptions of the solar industry, 78% of homeowners without solar believe it could help reduce their energy bills.  And while almost 80% of the respondents had considered going solar in the past, less than half of the interested homeowners surveyed had actually reached out and learned more from a local company.  This means that many solar customers are a clean slate. You have the opportunity to deliver a personalized solar customer experience that will build client confidence and increase the likelihood of a sale and referral.  What do solar customers really want?   While we’d all like to save the planet, if someone tells you that they are “going green” by installing solar panels, they may actually be talking about saving money.  Among those who would consider going solar, a staggering 65.8% of homeowners cite financial savings as their number one motive. In a distant second and third place, making the world cleaner (18.6%) and becoming energy independent (15.6%) follow as the next two most popular reasons for considering solar energy.  The larger takeaway is that every homeowner is different. So, the first step has to be determining what each specific customer is interested in.  Aurora recently conducted research that identified 5 main types of solar consumer, each with different wants and needs. Identifying what type of customer you’re selling to is the first part of delivering a great experience. Click above to learn more about the 5 Types of Solar Buyer. Once you know the type of customer you’re working with, you need to deliver a personalized proposal with their specific needs in mind. Tailoring your proposal to their interests, and working with them to design the perfect system for their needs leads to more happy customers, which leads to more referrals. Clearing up misconceptions Unfortunately, most people still believe that going solar is an expensive endeavor. Even worse, over 30% of the homeowners aren’t sure or don’t believe that solar companies are honest and upfront about pricing.  You can bridge this disconnect with open and honest communication to help customers adopt solar with confidence while clearing up any existing misconceptions.  A recent study on the theory of planned behavior found that most new customers actually have a low awareness of solar costs, and may not even know about the availability of incentives, rebates, and options with low or no upfront payment.  So, for example, going through the actual costs and incentives available, then discussing the customer’s utility bill data, you can help prospects think about the money they are already spending on electricity bills, and introduce solar as a cheaper alternative.  Click above to learn more about how Sales Mode can help you present electric bill savings to potential customers.  See our 3-part series for additional sales insights and more information on the social and psychological aspects of the solar customer acquisition process, 3 key ways to create a great solar customer experience Almost as much as savings, the relationship you cultivate with your prospects is a huge part of delivering a great customer experience. But how do you foster these relationships? Communicate  A - Always; B - Be; C - Communicating. Always be communicating. Above all else, you need clear and consistent communication to create the best possible solar customer experience.  While going solar may seem like a grueling undertaking to some homeowners, a company representative’s ability to simplify the process and educate their prospects will help close more deals. During a solar consultation, the floor should always remain open for questions and sales reps must be able to adapt proposals in response to individual customer concerns.  No matter what kind of solar buyer they may be, each customer has a unique set of ideas of how solar works and why or why not it would help them. With constant communication, sales reps can ensure no stone is left unturned while guiding prospects toward the finish line.   Be proactive Of course, you’re rarely the only company trying to sell solar to any given customer. To show that your company will do what it takes to earn new business, solar reps must be proactive in their approach to quality customer service.  Tied in with constant communication, proactive outreach to new customers creates an opportunity for companies to establish themselves as industry experts. Once a contract is signed, customers that receive regular updates about their installations are much more likely to have a better experience than those waiting around for the next step to be completed without a real idea of the project timeline.  Set clear expectations And lastly, setting and communicating clear project expectations is key to guaranteeing a good solar customer experience.   While anyone can make promises in a sales pitch, actually delivering on project expectations will determine whether or not a customer is satisfied enough to recommend a company’s services.  With so many moving parts involved, it is up to the solar company to effectively communicate how customers can anticipate the installation process to go, how well they can expect their system to perform, and what to do if anything goes wrong.  Once these expectations are met or exceeded, good customer experiences can then transform even the most skeptical customers into champions of your brand. Using technology to enhance the solar customer experience It’s hard for us to believe, but talking about electricity can be downright boring for some people. And if a solar installation sounds like it will take too much time and energy to consider, a lot of uninterested homeowners simply wonder, “Why bother?” To keep new prospects interested, you have to use engaging technology in your sales meetings, with workflows designed to create an enthralling solar customer experience. Lead Capture AI lets homeowners qualify themselves as leads. Earn customer trust  By leveraging today’s best technology, solar companies can instantly earn customer trust with real-world data delivered in seconds.  For example, some customers prefer to do research themselves before speaking with a company rep. This is where tools like Lead Capture AI can help you generate more leads, while making sure customers can interact with your company on their terms.   By entering just an address and an estimated bill, Lead Capture AI shows your customers what solar could look like on their home and how much they could save — all from your own website.  This means potential customers can do their research on your website and ultimately qualify themselves as leads — all while seeing your company as an educational resource that met them where they are. Streamline your sales process  From the first point of contact to signing on the bottom line, the process of adopting solar consists of many unique steps, with engineering and sales teams all working together to create a good customer experience. Leveraging accurate, built-in LIDAR maps, tools like Aurora’s Sales Mode helps sales reps confidently design a great system, without having to worry about engineers from your company coming back and climbing on the roof to obtain accurate measurements. By getting it right the first time, you can avoid change orders that would potentially drive up project costs or create a bad customer experience if you can’t meet your initial promises.  Complete with integrated financing options, dynamic contract templates, and e-signature capabilities, Sales Mode can help solar companies streamline their acquisition process with the power to close more deals on the spot.  To learn more about the platform, check out our Intro to Sales Mode webinar, which takes an in-depth look at how the software works to help close fast and accurate solar sales.   The value of post-installation solar customer service Like many other home improvements, a solar energy system is typically considered with long-term results in mind. As modern solar panels can efficiently generate electricity for 20, 25, and even 30 years, post-installation service is even more critical to overall customer satisfaction when considering the lifespan of most systems. To set yourself up for success, solar companies should always confirm that new customers fully understand how their system works, how to monitor performance, and every part of the installation that is covered in the warranties.  While solar panel installations are typically very low-maintenance, occasionally things do go wrong, and system components can malfunction and break from time to time. If a system goes offline, customers will always appreciate a solar company that can respond quickly and promptly fix an issue.  5 ways to turn happy solar customers into referrals Now that you have a satisfied client, you’ve completed the biggest hurdle in getting referrals. But, it isn’t always going to happen on its own. Even if you have a long history of satisfied clients, top-notch customer service, and high-quality work alone are simply not enough to achieve consistent word-of-mouth business.  So how do you consistently get solid customer referrals? Well, every customer is different, but here are 5 key things to remember when generating peer-to-peer leads.  Create easy ways for customers to talk about your service The best thing you can do to get a customer to recommend your business is to simply make it easy for them to do so. Begin by providing a template for customers to share their experience with their peers that is easy to implement and duplicate.  This could include a link to share their proposal directly with friends and family, or suggestions on where and how to post 5-star reviews on social media and around the web.   Ask first, then follow-up quickly  To increase the likelihood of potential referrals, a lot of the time, you simply just have to ask. While maintaining a relationship with a customer in the final stages of an installation, scheduled checks on project status and system performance can often be complemented with a referral inquiry.  Studies show that closing a new solar sale is more likely with a fast lead follow-up time, so contacting customers directly after their referrer has gone solar can help you capitalize on the moment when interest in a new installation is at its highest.   Experiment with timing and phrasing  Although it can be a bit awkward to ask for the names and contact information of people in a customer’s life, this should not stop solar companies from trying to generate new referrals.  While happy customers can certainly provide a company’s contact information to their friends, family, and neighbors, walking away from a conversation with a tangible lead significantly increases the chances to get in touch with new prospects.  When asking for referrals, try to guide the conversation towards the question naturally, and present it as a no-obligation opportunity for customers to help others benefit from solar as well.    If a customer is drawing a blank or does not feel comfortable referring anyone personally, this is obviously not the end of the world. Simply document what you learn, share your experience with your team, and continue to experiment with how and when to ask for new customer referrals.  When in doubt, money talks. Provide incentives for new referrals Of course, no matter how much they enjoyed their experience, most customers are more likely to help you drum up new business if an incentive is available for providing new referrals.   In addition to direct cash payments, solar companies can get creative when developing referral programs with incentives like gift cards or discounted services designed to encourage participation. And don’t forget the value of two-way incentives — giving cash to both the person who does the referring, and the person who is referred to you. In addition to direct peer-to-peer referrals, you can also give incentives to customers who choose to share their good experiences on social media or an online review platform.  Don’t give up too soon  And last but not least, companies should not give up too soon on solar leads or referrals.  Solar systems protect homeowners against rising utility rates for years, so some solar customers may even become even more satisfied with their purchase over time and will recommend a company years after an installation is complete.  By consistently following up with existing customers and new leads alike, solar companies implementing a successful outreach program with phone calls, emails, or texts are more likely to generate new business so long as they stay in contact with happy customers and interested prospects. In Closing… In conclusion, knowing what solar customers want and always providing consistent, honest communication can help companies fortify relationships, close deals, and generate new referrals.   By using today’s best technology to always deliver a great experience, solar companies can comfortably approach new sales scenarios and make going solar as easy and valuable as possible for their customers.  Want to improve your solar customer experience? Take a tour of the all Aurora Solar has to offer to see how we can help.  Featured image by Sasun Bughdaryan. ### Sunrise Sessions: Uniting Solar Design and Sales In solar energy development, every detail matters, and that is why accuracy has always been a cornerstone of the Aurora platform.  After years of working with designers to create hyper-accurate proposals, we recognized that today’s solar companies also need speed and precision at every step of the sales process to close deals and create the best possible customer experience. To seamlessly meet the demands of both design and sales teams all over the world, Aurora’s software is built to empower solar companies from lead to final inspection in one simple platform.  During the inaugural Sunrise Demo Day, Aurora Solar’s expert panelists guided attendees through seven unique sessions to showcase new software integrations that help you earn customer confidence and drive more business.  To kick off the half-day event, VP of Product Justin Durack explained why accuracy at every step is critical to integrating solar design and sales.  As he put it, “If you’re going to build a model for a solar system in software, you want to trust that it's going to behave the same way when it's installed in the physical world.” Click above to watch the entire session. With inaccurate site models, solar companies are forced to make design adjustments and risk spending extra time and money on additional property visits and change order requests.  Even worse, if projected system performance does not match reality after installation, unhappy customers can ruin a company's reputation and ability to earn more business.   For the most accurate designs possible, Aurora uses up-to-date mapping, LIDAR, and shading tools to quickly calculate system performance, energy offsets, and cost-benefit projections.  Easy Design and Sales Integration  In the growing solar industry, modern sales teams can stay ahead of the competition with dynamic tools to adjust proposals on the spot. Instead of patching together multiple technologies to unite engineering and sales, Sales Mode brings highly accurate design software into a customer-facing platform. Designed to be simple to use and make employee onboarding easier, Sales Mode can eliminate inefficiencies and accelerate project turnaround times to create a better overall experience for everyone involved. As an end-to-end platform with easy API integration, Sales Mode provides a backbone to unify the sales and design process, with automated workflows built to suit the unique demands of any solar business.    Lead Capture AI  While home and business owners are shopping for the best solar company, Lead Capture AI can instantly build trust with a new potential customer. Easily integrated into any website, Lead Capture AI allows customers to begin their solar journey with an accurate, interactive site design — prequalifying themselves as a lead before you ever pick up a phone. In the live demonstration, Justin showed exactly how simple the tool makes it for customers to consider going solar after inputting only a few pieces of information. “Homeowners can go to your website, put in their home address and their average monthly bill, and see their real home in 3D in just a few seconds. They can see the actual system that will be installed, the offset, what they’re going to save — all completely automated and simple.” And while an inflated projection of cost savings could certainly generate more leads, Aurora’s modeling and design software is built to provide accurate projections to maintain realistic customer expectations.   Web Proposals & Contract Manager    When you’ve done everything you can to sell your services, our interactive web proposals put the purchasing power into the hands of the customer.  Controlled on the backend with Sales Mode’s Contract Manager, each unique proposal lives online for the customer to review and share with family, friends, and stakeholders. If any proposal adjustments are necessary, every update entered into Sales Mode will be reflected in the contract, pre-populating without any room for error.   Mobile-friendly and complete with e-signature integration, Aurora Solar’s live web proposals can provide everything necessary to propel any sale over the finish line.  Sales Mode AI Essentially a “super-charged” version of the software, Sales Mode AI makes it even easier to sell solar on the spot, without any prior design work. With a few simple clicks in the customer-facing platform, home and business owners can see an accurate 3D image of their property generated right before their eyes.  As Justin explained:  “You can open up Sales Mode, put in an address, then automatically our technology can create the entire site design. Sales Mode AI will build a 3D structure, find the obstructions, place the panels, simulate the whole thing, and use LIDAR to find the exact shading where the system will perform best.” With uninterrupted design and conversational flow, solar sales reps can create a completely custom-tailored sales experience for potential buyers, without having to worry about inaccuracies or waiting for other team members.  Click above to learn more about Sales Mode AI. Final Thoughts We’re constantly evolving our software to help companies lower operating costs, make fewer mistakes, achieve faster turnaround times, and deliver a better overall experience for those on both sides of the deal.  Our mission is to “create a future of solar energy for all,” so design and sales team unification is simply one step in our ongoing commitment to fast, easy, and accurate solar development. Stay tuned for more updates to come. Want to learn more? Watch Justin’s opening remarks or relive all of the expert advice shared during Aurora Solar’s Sunrise Demo Day. ### Should You Add Solar to Your Roofing Business? Resources to Help Table of Contents Is it profitable to start a solar business? Why should you add solar to your business? Challenges facing new installers How to market your new solar business Introduction The solar installation market is thriving. We’ve already seen incredible solar adoption and job growth for years, and that growth is expected to skyrocket. There are many reasons for this growth, from rapid decarbonization of the world’s energy and its ecological benefits, to the simple fact that it saves homeowners money.  The fact that solar panels can last up to 35 years gives roofing businesses an additional leg up — before a home or business can install rooftop solar, the roof may need to be replaced.  Bundling solar and roofing into one package saves customers money, and gives you a lucrative new income stream. As a roofer, your tools, knowledge, and connections set you up for a logical — and lucrative — jump into solar installation.  In this blog, we’ll look at some of the common questions and concerns roofing businesses have when looking at adding solar — and how you can overcome them.  Is it profitable to start a solar business? The sun’s energy is inexhaustible, totally renewable, and pollution-free. And unlike fossil fuels and nuclear, it’s totally free. Helping people transform sunshine into energy has become a profitable business for many installers, and with more people realizing its many benefits, the outlook appears bright for decades to come.  Now, a typical solar installation can have a payback period of less than 10 years. And that time continues to come down as technology improves, so as long as the sun keeps shining, there’s going to be a place for solar panels.  And a place for you to install them.  Why should you add solar to your business? Even during the pandemic, solar has been breaking records, both in terms of deployment and affordability. Plummeting solar prices have made it competitive and even more affordable than fossil fuels. That, combined with policy changes and renewable energy standards being adopted by states and countries, means solar is here to stay. It’s no longer a question of if solar will supplant fossil fuels, but when.  We are on the cusp of the greatest energy transition in history, and solar will lead the charge. For those wanting to add solar installations to their roofing business, there’s no better time than the present. Consider the following: 20 percent of residential solar installations don’t go through because a new roof is needed at the time of installation As a roofing contractor, you have the tools and training to bundle roof replacement with solar installation You can cut out the middleman and wait times homeowners associate with hiring more than one contractor Three quarters of U.S. roofs are asphalt shingles with a life expectancy of 15-20 years. Because so many of these roofs will require new shingles prior to installing solar, many solar-only installers will need to provide the customer with the bad news that the job will require more money and time than initially planned for. You can cut this out of the equation by bundling roof replacement and a solar install to save the customer time and money.  Challenges facing new installers The photovoltaic industry is among the fastest evolving industries in the world. This means nearly limitless growth potential, but it comes with challenges. Here are three important ones to keep in mind: Ever-changing solar policy, incentives, and regulations It’s essential that you know the ins and outs of how local utilities operate in your area. Do they have requirements for plugging in solar to their grid? What are their requirements that might affect installation? What are the net metering policies? Next, familiarize yourself with local building and zoning requirements, such as: Required construction and zoning permits Inspections HOA rules Lastly, be the go-to source for available local, state, and federal incentives as well as manufacturer rebates. This not only helps make solar more affordable for your customers, but sets you apart as an expert people can trust.  Getting the right licenses and certifications Licensure and certifications vary by state, but most require at least a roofer’s and/or building license to install solar. Others require electrician licenses, or a combination of the three. Research your state’s specific requirements and get certified by a respected organization like NABCEP. Having the right proposal and design tools Prompt proposals and designs mean more contracts signed. Moreover, having your proposals and designs accurate from the get-go means less change orders for system redesign, saving you and your customer time and money.  The quicker a salesperson can deliver a preliminary design proposal — even working with the customer to come up with the best option on the spot — and the more accurate that proposal is, the more likely you are to both make the sale, and make a profit on the project. Aurora Solar offers permit-ready designs for installers, helping you avoid change orders and deliver the most efficient system possible. Click above to see how Sales Mode can help you get started selling solar. Needing better generation integration and management Decentralized renewable energy like rooftop solar is fundamentally changing the way we produce energy. The current energy infrastructure is designed to deliver electricity on-demand from a central source, but renewables don’t work that way: They only produce energy when the sun is shining or the wind is blowing. Therefore, we need better ways to integrate, manage, transfer, and distribute multiple forms of generation.  Solar generation at-scale will create a grid with complex interactions between electricity generators and consumers. Some generators — be they households or utilities — may have a surplus they need to transfer where needed, otherwise store the energy in batteries. Others — such as homes equipped with rooftop solar — will need their electricity demands met during the night when the sun isn’t shining.  How to market your new solar business As a roofer, you already have a huge advantage for starting your new solar business: You have a reputation and established client base that trusts you.  If you’re incorporating solar as an ad-on to your existing roofing business, all you need to do is pitch to clients a solar install with a new roof. The average cost to replace a roof is about $8,000 (depending greatly on the size of the home, the roofing material, and other factors). The average cost of a 10 kW new solar installation is $27,700, or $2.77 per watt, (this also varies greatly by state, and other factors) before the homeowner accounts for the federal solar tax credit and other rebates and incentives can further defray solar costs.  Bundling a new roof and solar install can potentially save prospective customers serious money, and if you can do both, you have a high chance of tantalizing customers with a new roof/solar combo.   Start by simply asking your roofing customers if they’ve ever considered solar. If they’re interested, you have a few options: You can sell their info as a lead to someone who installs solar  You can sell a solar system yourself, then team with a dedicated solar installation partner that will take it from there  You can sell and install the system yourself  You can use the connections and referral networks you have now to search for interested solar customers. Let them know how much they can save on a new roof/solar bundle and all the benefits both will provide.  Here are a couple solar marketing resources: The Beginner's Guide to Solar Marketing The Ultimate Guide to Generating Solar Leads Solar-related Keywords: Understanding What Solar Customers Want Regardless of your plan, here are some more tips on how to market a solar business.  Know your customer — who are you selling to? Customers want to go solar for many reasons, including everything from reducing their carbon footprint, to saving energy, to increasing the value of their homes.  Do your best to ascertain your prospects’ values and aspirations, and how solar fits into them. What are their motivations for going solar? Environmental, energy independence, financial, or all three? Knowing the limitations and motivations of your potential customers will help you better tailor your sales pitch to meet their needs.  There are resources out there to help you. For example, our research shows that there are 5 main types of solar buyers, each with their own motivations and requirements. Knowing which type of buyer you’re dealing with, and following the strategies included in our guide on how to sell to them, will give you a leg up on the competition. Click above to watch a free webinar on the types of solar buyers. Get licensed and certified If you’re installing solar, you’ll likely need a builder’s license, electrician’s license, or both. Check with state and local rules to determine what licensing you need to get started in solar.  Solar-specific certifications also provide valuable training and knowledge that you’ll need in planning and on the job. They’re an important way to promote customer confidence, and can allow you to charge a premium for your services. In addition, it may enable you to operate in more than one municipality or state, increasing your competitiveness. The North American Board of Certified Energy Practitioners (NABCEP) offers an array of certifications, including some that can be completed in as little as two months. Have the best tools (again) You need the right software to accurately model and visualize solar systems for your clients. Being able to do things like modify designs in front of customers, right on the spot, and then have a contract ready to e-sign can help you sign customers more quickly, with fewer follow-ups.  Follow up! Time is of the essence in solar sales. The faster you respond to customer questions, the more likely you are to get a sale. But, it’s more than just responding to the customer, you have to be proactive.  If you’re not able to achieve that elusive one-knock close, thoughtful and helpful follow-up communication can set your company apart. Here are some resources where you can learn more: The Ultimate Solar Sales Follow Up Kit How to Effectively Engage & Communicate With Your Leads 4 Ways to Increase Solar Sales Close Rates and Reduce Cancellations Click above to download the Solar Sales Follow Up Kit. Know your competitors The market for solar installations is competitive, to say the very least. Just look around your neighborhood: you’ll likely see lawn signs for several companies. You’ll be competing with all of them, so you have to do your homework. There’s too much to list here, but to start, you should be able to: Compare your quote with that of your competitors.  Know the difference between a competitor's offering and yours.  Justify your price when you’re the more expensive option, with clear and enticing value propositions.  Assure the customer that you’re delivering the best service and product when you’re the least expensive option. Here are some other resources to help you tune in with what your competitors are doing and set your company apart: How to Effectively Address the Competition in Your Solar Sales How to Set Your Company Apart From the Competition How to Handle the “We Need Another Quote” Objection 3 Ways the Agile Sales method Can Help Your Solar Company Compete In closing… There will always be roofs. And the way the solar industry is going, rooftop solar will be a common consideration for many homeowners looking to replace their roofs. As a roofer, you’re poised to double-dip in both industries, making significant profits and helping the world become a better place... one roof at a time.  ### Ready to Scale Your Solar Company? Start Here With over 13,000 photovoltaic (PV) installation companies nationwide, the US solar industry is incredibly competitive. In this already crowded market, growing and scaling your company is crucial for survival, and long-term success requires converting more customers using fewer resources.  But with so much to do just to keep your company running as is, you probably don’t have a lot of time to seek out and implement best practices to improve and grow. Fortunately, you don’t need a large budget, a ton of time, or national reach to remain competitive.  This blog features some quick strategies, complete with additional resource links, on how to add value for employees and customers, generate more sales, and scale your solar business.  Recruit and Retain Top Talent You simply can’t scale without hiring and keeping the best people. (We’ve published a comprehensive resource for Recruiting Top Solar Talent.) But simply attracting knowledgeable and enthusiastic employees isn’t enough if you truly want to grow. You also need to maintain that talent. Otherwise, you’ll be faced with unnecessary turnover costs as you try to recruit and train replacement staff.  Common strategies for retaining high-performing employees include: Decrease onboarding time. This is made much easier with the software solutions on the market. With features that reduce errors, and let reps design proposals in front of the customer, the right software can reduce training time and increase close rates, both keys to keeping the best employees.  Offering competitive pay. The ability to generate more sales using fewer resources allows you to provide employees with attractive salaries, healthcare benefits, paid time off, and other perks. Making the job easier. Providing your team with the right solar design tools can make their jobs much easier. And they’ll be far less likely to leave — especially if the competition still makes their employees use outdated technology, like spreadsheets and CRM solutions that can’t talk to each other.  Expand Your Customer Outreach Efforts The goal with all customer outreach is to widen the sales funnel as much as possible — using things like social media, paid advertising, direct mail, and content marketing. But in an increasingly saturated market, standing out from the crowd can be difficult.  We have an exhaustive resource on How to Launch a Solar Outreach Campaign. But before you start marketing to potential users, it’s important to develop personas for your ideal customers. Understanding their pain points is imperative when crafting a message that resonates with their needs. If you don’t know a lot about your ideal customer yet, that’s okay. By overcoming the next several scaling challenges, you’ll soon have a growing pool of satisfied users. And you can then use their valuable input to further refine your messaging and scale your outreach efforts. Learn more about solar customers with our Guide to the 5 Solar Buyers. Streamline Your Sales Process Turning as many of those leads into customers, as quickly as possible, is an obvious key to scaling your solar business. But knowing this and accomplishing it are two very different things.  The typical solar sales engagement involves numerous meetings, where customer information is incrementally used to design the perfect system. Along the way, sales reps need to learn and adapt their proposals to the customer’s unique property, electricity demand, monthly energy expenses, and more.      Having solar software that covers every part of the sales process, from lead to design to signature, sales reps can save a significant amount of time with an efficient end-to-end platform designed to increase close rates. Deliver a Compelling Proposal Converting customers is the most important step of the entire sales process. It can involve a lot of negotiation and multiple proposals. And we all know that even a tiny change can mean going back to the drawing board and starting over. However, as with any project, the right tools can make all the difference.  First, you have to make your proposals compelling, easy to understand, and changeable. Tools like Web Proposal, for example, allow reps to send personalized proposals to customers over email. If the customer wants to make changes, reps simply edit the proposal, then generate and send a new link. That’s it.  Make Financing Easy  While the idea of installing solar panels is always exciting, the moment real dollars come into play can be very intimidating for homeowners. To make the sales process as easy and unintimidating as possible, Sales Mode's Integrated Financing makes it so customers can see their design, contract, and savings, and even apply for financing all in one place —  instead of fumbling with papers or working across multiple platforms.  Remove the Pain From Contracts  When customers are ready to move forward, the contract process often adds a lot of error-prone, labor intensive work — manually writing in and changing information, terms, and so on.  Tools like Contract Manager automate all these tasks. By populating all of the dynamic information about the customer directly into a contract, customers never have to wait when they’re ready to commit. And with e-signature capabilities, they can sign right on your tablet. Speed Up Permits and Incentives Permitting is often the longest phase of the solar installation process, with approvals sometimes taking many months to come through. In addition, permitting can add a significant amount of direct and indirect costs. Fortunately, these delays and costs are improving as more cities move their solar permitting applications online. You can further reduce delays by using resources like Orange Button, which is a crowdsourced database of local solar permitting requirements for every city in the country. Just type in your client’s address, and Orange Button instantly provides you with: The local authority having jurisdiction (AHJ) Relevant building, fire, and electrical codes The property’s longitude and latitude Using this free database won’t necessarily make the approval process go faster. But correctly identifying the right AHJ and local codes can help you avoid unnecessary delays. We also recommend closely following SolarAPP, a joint initiative among the Solar Energy Industries Association (SEIA), National Renewable Energy Laboratory (NREL), Interstate Renewable Energy Council (IREC), and Solar Foundation. Once launched, their Solar Automated Permit Processing will help standardize permitting nationwide using rules-based automation. SolarAPP will also make it possible for non-complex PV installations to instantly qualify for permit approvals.  However, permitting is not the only administrative aspect that can slow down the installation process. Many state-level solar rebate programs, for example, require that applicants submit detailed shading analysis. If conducting these analyses with Aurora, your team can automatically export shading reports using the formatting and layouts required by the state agencies that oversee these incentives. Automate PV System Design  Delays in design turnaround can completely derail an appointment. Sales reps need the ability to generate a design in front of a customer quickly, and adapt it to best suit their property, and their needs.   You can use tools like Sales Mode, with its customer-friendly features, to deploy an agile sales method. By tweaking the design on-the-spot, you can answer many customer questions and concerns, so they’re less likely to look for that information elsewhere (re: your competitors).  For example, when sales reps can make system changes in real time, it eliminates design bottlenecks, and empowers your team members to increase their closing rates without worrying about inaccurate proposals. Add Supply Chain Redundancy Despite all the technical complexities involved, the actual installation itself is often the most straightforward part of the job. As we've seen, using technology to make sure you have all the right measurements, components, and approvals already in place can help make the job go even smoother. However, adding more supply chain redundancy to your operations can also give your company a leg up. Doing so reduces your exposure to potential solar component shortages resulting from supply chain disruptions. Aligning with more suppliers is a good idea for installers of all sizes. But building these relationships can really help your long-term growth potential. Happy customers with the right incentives, like these 2, are more likely to give you a referral. Build Customer Loyalty & Generate Referrals  Happy customers are an extremely valuable part of any solar panel sales strategy. So, encouraging satisfied customers to recommend your services can help establish a good reputation and will often lead to new business.   To promote loyalty, you can create an incentive program for current customers to refer your solar company to their neighbors, friends, and family. If a customer is satisfied with their panels, the people that they refer are more likely to trust your business to provide another great experience. This means that when a project is complete, your job isn't done. You should continue to follow up with customers to ensure the system is working well, give them information relevant to their install... and to ask if they’re interested in referring new business.   Consider Complementary Products or Services Finally, adding complementary products or services is an excellent way to finalize new solar sales and create more value for your customers. Whether it be roofing services, extended warranties, or ongoing solar panel cleanings, new customers are more likely to choose a company that can meet all their needs.   Today, more and more companies offer solar storage to help customers have peace of mind. With smart recommendations provided instantly, Aurora’s solar configuration page can help automatically analyze load offset, calculate system price, and make battery sizing recommendations.  Ready to Scale Your Solar Company?  The PV installation industry is already competitive. And with nearly 1 million new solar jobs projected over the next decade, the space will only become more crowded. But as the world rapidly switches to sustainable energy sources, there will also be unprecedented demand for the very services your solar installation business offers. To discover how Aurora Solar can help your business scale and satisfy this growing demand, request a free demo of our AI-powered solar design platform today.   Featured image by FutUndBeidl. ### Sunrise Sessions: 3 Ways to Power Your Solar Sales Team with AI To earn new business, solar companies have to balance speed and accuracy.  Of course, sales teams have to produce proposals quickly to get a jump on competitors. At the same time, as sales reps work on their feet to close new deals, inaccuracies in proposals can lead to change orders, additional project costs, bad customer experiences, and even cancellations.  So with the clock ticking, modern solar companies are constantly looking for ways to streamline their sales and design process to quickly create accurate proposals — and eliminate the worry about potential problems with the project’s design, logistics, or performance.  During the inaugural Sunrise Demo Day, Product Marketing Manager Stephen Gerken ​​explained how Aurora Sales Mode AI can help solar companies close more deals with intelligent software designed to generate new business.   Below, we’ll look at three key ways Sales Mode AI can help you create fast and accurate proposals, build customer trust, and streamline the sales and design process.  Create an Instant Site Design Click above to watch the full session. Instead of waiting for a designer back at the office to generate a site design, what if you could create an accurate home model in less than a minute during a solar consultation? With Sales Mode AI, you can work in real-time with homeowners during the design process as their unique property comes to life with up-to-date imagery using just a few simple clicks.  As Stephen explained, “Sales Mode AI is an upgraded version of Sales Mode that allows you to create full 3D models at the tap of a button, in less than a minute, on both a tablet in a home or on the computer during a virtual consultation.“ While Aurora’s mission has always been for solar companies to have access to fast and accurate site designs, Sales Mode AI integrates modern artificial intelligence and machine learning to accelerate the modeling process, without sacrificing attention to detail.  Including LIDAR coverage for over 93% of the US population, Sales Mode AI instantly detects an accurate size, height, and pitch for customers’ roof faces, and automatically marks any vents or obstructions that may prohibit panel placement.  By taking the guesswork out of the design process, solar companies can save time, money, and energy on property visits and site assessments. What about Lead Gen? AI technology isn’t just good for design, it can help deliver qualified leads, as well. When you embed Lead Capture AI on a webpage, potential customer can self-qualify as leads just by entering their address and average electric bill.  When they enter that info, Lead Capture AI shows what solar could look like on their home and how much they could save — all from your own website.  Follow the Sun (with Real-World Data) After the site model is generated, calculations quickly and accurately calculate system performance based on sun exposure and estimated energy production.  While most solar companies will include some sort of irradiance analysis in their proposal, Aurora Sales Mode AI makes it easy for reps to create and customize precise shading reports in seconds.  During the live demo, Stephen illustrated that, “When you run a shading analysis in Aurora Solar, this will calculate the irradiance for your customer’s home based on the LIDAR of the surrounding buildings and trees for every hour, day, and month of the year, so you’re not just guessing the shading of a roof based on static data.” So instead of taking time to manually qualify customer rooftops, Aurora’s constantly updating software can be used to quickly generate bankable shading reports for small and large homes alike.  With accurate documents created in one simple click, exact irradiance and performance can be calculated for any PV design, instantly updated with every design change implemented throughout the sales process.  To top it all off, the algorithm is constantly "learning" from patterns with the designs it creates. So every time it’s run, it tests and measures performance and uses that to improve. The more it’s run, the better it gets. At the same time, our engineers are also constantly looking for ways to improve the software, which means performance estimates will only become more accurate over time.  Seamlessly Flow from Design to Sales Without having to worry about design inaccuracies, companies can rely on Sales Mode AI to move customer conversations forward with confidence.  As every adjustment to the proposal is automatically reflected in system performance and project costs, Sales Mode AI eliminates room for error in developing accurate customer contracts.  Describing it as an “end-to-end platform,” Stephen explained that, “With Sales Mode AI, you can sell customers on the value of solar with accurate production estimates, then apply for financing directly within the app, and close customers on the spot with automatic contract generation and e-signatures.”  Using templates and unique APIs to automate your workflow, Aurora’s intuitive platform seamlessly integrates the sales and design process to simplify onboarding for your sales team and enable them to sign more deals on the spot. Complete with integrated financing and e-signature capabilities, solar companies no longer have to draft labor-intensive contracts, as Sales Mode automatically pulls all of the relevant information directly into the final project documents.  See what your sales team can do with Aurora Solar For more information about how solar companies can save time and energy using Aurora's AI-powered platform, feel free to revisit any of the Sunrise Demo Day sessions or request a live demo today.  Click above to watch the full session. ### Sunrise Sessions: 4 Simple Steps to Reimagine Solar Sales In this series, we’re highlighting some of the themes from our Sunrise Demo Day. In this installment, we'll investigate how Sales Mode and Contract Manager can help you reimagine how you sell solar — closing more deals, faster. Selling solar can be complicated. Just think of all the factors that play a role in a successful sales proposal alone.  A solid proposal doesn’t just involve the number of panels and where to place them on the home for optimal energy production. It also needs to include accurate pricing and usage estimates, any rebates available for the homeowner, and financing options. You might have experienced this yourself: Closing the deal with a potential customer sometimes only happens after numerous back-and-forth conversations with ongoing changes, which means you constantly recreate new proposals and contracts to include every new amendment. All this extra time spent on adjusting details and fixing errors can lead to you having to cover the costs — or to the customer choosing a competitor in the meantime. A major focus of Sunrise demo day was finding ways to make your solar sales processes more efficient. Below are four steps that will help you reimagine the way you sell solar — save time, streamline the selling process, and close more sales, faster. STEP 1: Deliver Detailed Accuracy Obviously, incorrect or inaccurate information in a proposal is completely unacceptable — to the potential customer or you. The devil is in the details, though, and not being able to explain and show factors like accurate monthly payments, monthly and annual savings, and potential financing options can be detrimental to your sales pitch. To make sure you make the most of your contact with your potential customer, the more detail you can show on the spot, the better. For example, to fully explain system costs and savings to your customer, show them the details that impact those variables: Where each panel will be placed on their home, where heavily shaded areas are, and even how the movement of the sun throughout the day, months, and year will affect their energy production. The key is, though, you have to use a tool that lets you demonstrate these factors clearly, and in real-time so you can tweak and polish the proposal with your customer right there — and start to close the window on competitors. That's just one of the benefits of using Sales Mode. Over the rest of this blog, we'll show more ways Sales Mode can help you reinvent the way you sell solar. STEP 2: Offer On-Site Pre-Approval for Financing One fact all sales representatives know is that you have to strike while the iron is hot. Getting a proposal the homeowner loves, but having to slow the process down to figure out financing and approval can give competitors a chance to strike. Imagine this: You’ve gone through all the details with your potential customer, you’ve provided accurate estimates, and you’ve presented all the information they need. They like what they hear and are ready to go solar. Instead of dragging out the process while waiting for financing — and hoping they don’t lose interest — you can keep the customer engaged by going over financing options and getting them pre-approved on the spot. Aurora's Integrated Financing, with Mosaic as a partner, offers just this functionality. And with an on-site pre-approval, you’re one step closer to closing the deal. STEP 3: Personalize and Digitize Buying solar is a significant investment and therefore a big step for most people. It is important to acknowledge the benefits a project like solar has for a homeowner, and you can do so by personalizing their proposal and making it interactive. For example, you’ve shown the customer that going solar will be financially beneficial for them, and they have agreed to receive a proposal from you. You send them a digital proposal with a personal login. The proposal looks exactly like what you showed them, including all the possible details they might want to revisit before signing. They can see their home, the placement of the panels, go over all the numbers, apply for financing, and get in contact with you at the click of a button. Seamless, engaging, and personalized. STEP 4: Automatically Generate Contracts  Of course, the ultimate goal is to close the deal on the spot. We’ve stressed that every minute with your potential customer counts and one of the most common obstacles for closing the deal fast is the hassle of creating contract documents. This is where Contract Manager comes in. The traditional contract process requires switching software to manually fill out a contract, printing it out, and sending it to the customer later for signing. This frequently introduces errors, and stops the deal in its tracks.  Contract Manager pulls in all the data needed from the proposal automatically, and if any changes need to be made to the proposal, they can also automatically be pulled over to the contract in real-time, eliminating any last obstacles and increasing your chances of conversion. When the contract is ready, the customer can e-sign right on your tablet, so you can close the deal on-site.  Since customers generally get multiple quotes before choosing who to work with, if something drags out the process with your proposal, there is a real risk that the customer will go to a competitor instead. Likewise, if you can present a seamless, painless contract you’ll have a leg up. In Closing... Solar sales is hard enough. Make it easier — for you and your customers — by using the right technology. Using Sales Mode and Contract Manager you'll present more accurate, more compelling proposals that are ready for customers to sign now. Learn more about all the features Sales Mode and Contract Manager offer by watching the full webinars below. Then, schedule a demo to get all your questions answered.             ### Sunrise Sessions: Reduce Errors and Automate Your Solar Processes With APIs In this series, we’re highlighting some of the themes from our Sunrise Demo Day. First up, using APIs to streamline your processes, eliminate errors, and make your solar business more efficient. Most solar systems are sold and designed using a combination of different components and software.  This can make the full solar lifecycle time-consuming and difficult to standardize and scale. This is especially true when the sales and design teams work in separate silos — relaying questions, tweaks, and approvals back and forth throughout the development and installation process. Don't rely on email and Post-it Notes, please. There is a range of tools designed to help improve these processes. For example, many solar sales teams and installers use popular CRM tools like Salesforce or HubSpot. Others have a CRM system that’s at the center of a web of other technology solutions. Still others manage their systems manually using a patchwork of emails, Post-it notes, and spreadsheets.  However, no matter how you manage your business, very few tools can successfully bridge the gap between sales and design. As a result, changes on the sales side aren’t always reflected on the design side, and vice-versa. And, given the fact that every solar installation is unique, there can be many changes before a PV system goes live. The question is, then, how do you most effectively — and efficiently — get all aspects of your business on the same page, eliminate the costly errors that can come with managing separate, disconnected systems, and as Bill Belichick might say, put your business in a position to succeed.  Using Automation to Integrate Sales and Design Together Click above to watch the session. At Aurora Solar, our AI-powered sales and design software comes with application programming interfaces (APIs) that allows you to automate more of the solar process by seamlessly integrating Aurora’s workflows directly into the tools you already use to power your operations. With this integration, for example, sales teams can add new leads into their CRM or ERP, and automatically sync lead information, including address and consumption data, to Aurora at the click of a button. Any changes on one side are instantly reflected on the other, eliminating unnecessary data entry and back-and-forth communication. This cloud-based, real-time data syncing continues as your design and sales teams input additional project information over time — from CAD assets to system specifications to financial projections. And that’s just one workflow you can streamline and scale with Aurora's APIs. But, a big benefit of our robust APIs is that the sky’s the limit. Other common use cases with Salesforce include: Automatically assigning projects in Aurora to the account owner in CRM Syncing design assets directly from Aurora to whatever CRM or customer-facing solution you use Syncing homeowner consumption profiles between platforms to maintain accuracy of design Using Aurora Solar’s API — Intuitive, Powerful, and Mobile We know: Mobile is key. Most PV installers don’t have a lot of in-house IT support. And we designed our API with that in mind — it’s complete with clear documentation and sandbox access so you can test different configurations before making anything live. If you ever get stuck, we can walk you through the integration and testing process as well. We also know that most PV installers rely heavily on their smart devices when in the field. We keep this in mind in our API development, so that everything is as mobile-friendly as possible — even when you're using a mobile phone on a 3G connection. We’re also continuously evolving our APIs — with an average of 2 backwards-compatible updates a month — to ensure you always have the latest tools and features. Integrate Your Solar Design and Sales Teams Now Because of the accuracy and speed of our AI-powered solar proposal platform, many installers use our software out-of-the-box — with virtually zero customization. But for those looking to expand this functionality, our API makes it possible to automate even more aspects of the design and sales process. In addition to saving you valuable time, this integration can also help you scale, allowing you to serve more customers using fewer resources.  To learn how Aurora Solar’s API can help close the gap between your design and sales teams, watch the Webinar below or request a free demo today.   Learn more about Aurora's latest product updates on our Sunrise Demo Day Home Page.   Featured image by zenad nabil. ### UPDATED — The ultimate guide to NEM 2.0: non-bypassable charges explained April, 2023 UPDATE The Net Billing Tariff — commonly known as NEM 3.0 — has taken effect. Please visit our NEM 3.0 resource page all the latest information. Here are some quick links for further reading: How to sell solar in 2023 despite NEM 3.0 California Net Billing Tariff (NEM 3.0): frequently asked questions Should your PV systems face west with California's Net Billing Tariff? Explaining and modeling California's Net Billing Tariff (NEM 3.0) Click above to learn how to sell solar in a NEM 3.0 world. Original post from March, 2022, starts below Net Energy Metering (NEM) has become the standard policy in the United States for compensating solar customers for the energy they contribute to the grid—and it’s a key reason for the dramatic growth of solar energy, particularly in California. With the fight over NEM 3.0 — or “net billing tariff — in full swing, we thought it would be a good time to check back in with NEM 2.0.  This article reviews the impact and changes that took from NEM 1.0 to NEM 2.0, and delves into how California’s NEM 2.0 policy works and what it means for a solar customer’s bill. Our white paper covers the topic in much more depth, including offering insight into design changes you can make to maximize solar savings under NEM 2.0. Background Under NEM policies, each kilowatt-hour (kWh) a solar customer produces is valued at the same market rate as kilowatt-hours the customer purchases from the utility. This means a solar customer can produce excess energy during the day, receive a credit for sending it to the grid, and then use that credit to pay for the energy they purchase at night. Valuing electricity sold to the grid at the market rate has been a huge boon for solar. Formally known as the “NEM Successor Tariff”, NEM 2.0 is a policy created by the California Public Utility Commission which provides a framework for extending the capacity for solar PV projects connected to the grid in California.  NEM 2.0 — What changed? NEM 2.0 brought a few big changes: A small portion of the electricity charges that a NEM 2.0 customer incurs for buying electricity can not be reversed by future production. A NEM 2.0 customer is compensated at a slightly lower rate for the energy they sell to the grid. All new NEM customers must enroll in a TOU rate if one is available. There is a small one-time interconnection fee (around $150) for new installations. The primary change from NEM 1.0 to NEM 2.0 is that a small portion of the electric bill can no longer be offset by excess production. This component of the total rate is referred to as “non-bypassable charges.” The portion of the bill that can’t be reversed and the amount the compensation is reduced by, comprise what are called non-bypassable charges. What are non-bypassable charges? Non-bypassable charges (NBCs) are just components of the total electric rate, which are separated under NEM 2.0. If you look through a utility rate schedule such as PG&E’s TOU-A, you will see the total electric rate broken down into a number of different types of charges, as follows: Generation $0.18232 / kWh Distribution $0.10183 / kWh Transmission $0.02536 / kWh Public Purpose Programs* $0.01501 / kWh Nuclear Decommissioning* $0.00149 / kWh Competition Transition Charges* $0.00130 / kWh DWR Bond* $0.00549 / kWh Total Electricity Rate $0.39336 / kWh Table 1: Partial list of the unbundled rate components that make up the total electric rate. Source: PG&E Electric Schedule E-TOU Option A - Summer Peak Rate, Effective March 1 2017 There are a few more small line items and the table above is for illustrative purposes. The items marked with a (*) are components of NBCs, and total $0.023/kWh for the current utility rate. The other components of the rate are energy charges. How are NBCs billed? For an NEM 2.0 customer, energy charges and NBCs are tabulated separately. When they buy from the grid, they are billed at the energy rate plus the NBC rate, but when they export to the grid they are compensated at only the energy rate. For residential NEM 2.0 customers, NBCs are assessed on the hourly net energy consumption. One way of understanding the difference in how NEM 2.0 customers are billed compared to NEM 1.0 customers is to think of a customer’s energy bill as a bucket of charges that fills over time as they consume energy from the grid. For solar customers with net metering, you can think of this bucket as having a drain; when they feed excess solar energy onto the grid, they offset some of their charges, and the billable amount decreases. For NEM 2.0 customers, although the cost of energy they consume from the grid is the same, it is split into two buckets of charges: energy charges and NBCs. The energy charge bucket still has a drain, allowing them to offset their charges with solar energy production. The NBC bucket, however, does not. For each kilowatt-hour of energy they consume, 2-3 cents of charges are added to the NBC bucket and these charges can’t be offset. At the end of the billing period, the NEM 2.0 customer’s total bill will be the sum of the charges in both buckets. When NEM 2.0 customers buy from the grid, they are billed at the sum of the energy rate and the NBC rate, but when they export to the grid they are only compensated at the energy rate. Figure 1: Graphical representation of the differences between NEM 1.0 and NEM 2.0, where the customer’s bill is represented by buckets of charges.  By the Numbers: NEM 2.0 vs. NEM 1.0 To explore this scenario in greater detail, let’s put values to these customers’ bills. For this example, let’s assume that the electric rate is $0.284/kWh and that the NBCs total up to $0.023/kWh (for the sake of simplicity, we won’t consider Time of Use rates in this example). Let’s say a NEM 1.0 customer purchased 100 kWh of electricity in week 1 and then exports 110 kWh of electricity the next week. After week 1, they have an accumulated energy charge of $28.40. Their credits in week 2 are worth $31.24, which offsets the $28.40 charge leaving a $2.84 credit that they can apply to future consumption. The NEM 2.0 customer does the same thing: they have a net consumption of 100 kWh in week 1, and a net production of 110 kWh in week 2. In week 1, they end up with energy charges of $26.10 and NBC charges of $2.30. The total charge is no different than the NEM 1.0 customer. In week 2, the NEM 2.0 customer exports 110 kWh, but they are only compensated at the energy charge rate, so they have a $28.71 credit. This offsets the $26.10 giving them an energy credit of $2.61 that can be applied to future energy charges, but they also have a $2.30 NBC charge that they can not offset. Week 1 Energy Charge Week 1 NBCs Week 1 Total Charge Week 2 Energy Credits Excess Credits After Offsetting Charges NEM 1.0 $28.40 N/A $28.40 $31.24 $2.84 (free to offset future bills) NEM 2.0 $26.10 $2.30 $28.40 $28.71 $2.61 (these credits can’t offset NBCs) Over the course of the year a customer can accrue substantial NBCs, averaging around $150 annually. Why It Matters A strong understanding of how NEM 2.0 operates allows you to accurately communicate the savings your customers will see from solar — and address any concerns or misconceptions. And even if you don’t operate in California, it’s a good idea to keep tabs on how California’s NEM 3.0 policy develops, and to be aware of what has come before (with 1.0). Having reached higher levels of renewable energy than other states, California is pioneering policy approaches that may inform how other states address solar compensation in the future. Understanding non-bypassable charges and the billing changes discussed in today’s article will give you a good sense of the changes going into effect.  Again, if you’d like to learn more about the most recent NEM update you can learn all about it in our article on changes to NEM: What You Need to Know About CPUC’s Proposed Changes to NEM  NEM 2.0 Key Takeaways NEM 2.0 extended the capacity for solar PV projects connected to the grid in California; without NEM 2.0, new customers would not be able to get market-rate compensation for energy sent to the grid. The main change from NEM 1.0 to NEM 2.0 was that a small portion of the electric bill cannot be reversed by excess production. This component of the total rate is referred to as “non-bypassable charges.” With NEM 2.0, NEM 1.0, and non-NEM customers on the same rate schedule pay the same amount for electricity consumed from the grid. NEM 2.0 customers received slightly less compensation than NEM 1.0 customers for energy exported to the grid. NEM 2.0 preserved most of the value of exporting energy to the grid while maintaining revenue for state programs. Existing NEM 1.0 customers remain on NEM 1.0 for 20 years. ### 2-Minute Lesson: Close Solar Deals Quicker With Integrated Financing Sales is all about converting leads into paying customers, and doing it quickly. This is especially true in a competitive market like solar, where even the smallest delay can mean losing the sale to a more flexible competitor.  At the same time, solar is an especially tough business to close deals quickly. Solar sales reps generally need to guide homeowners through a bunch of steps, using a bunch of different software systems.  So how can you cut down all this software bloat and streamline the process, making it less confusing for customers, and enabling your reps to close more deals?  Since speed is of the essence in sales, this blog will give you one big way to streamline your sales process in less than two-minutes of reading time. The Financing Problem Financing is one of the most complex things about a solar sale. If you’re like most installers you’ve dealt with it in one of two ways: You’ve used Aurora, but you and your homeowners have had to jump through many hoops to finance the system by using and signing into multiple accounts and portals You’ve tried to solve the problem by turning to less accurate Aurora competitors that having financing integrated into their product Integrated Financing! Well, say goodbye to this Sophie’s choice.  Aurora now has financing options directly integrated into Sales Mode, with Mosaic as a partner. This lets reps streamline loan pre-approval and documentation — for themselves and customers. How? We’re approaching a minute, so we’ll keep it quick. With Aurora’s Integrated Financing, your reps can: Share side-by-side bill comparisons and apply for financing directly in Aurora, with the customer right there Close deals faster by cutting down on the number of systems needed for customers to apply for financing Reduce change orders and cancellations by getting rid of the error-prone manual data entry contracts usually require (and often has to be entered multiple times into multiple systems) Get that one-call close by reviewing multiple pay-off scenarios in real-time with accurate, updated loan information Close customers on the spot with automated document generation and integrated e-signature options This, of course, just scratches the surface of how Integrated Financing can help your reps simplify the customer experience, achieve higher close rates, and ultimately generate more revenue. But, we promised you a two-minute read, so we’ll just answer the final question:  How do you get Integrated Financing? Integrated Financing is included in every New Aurora and Sales Mode contract or subscription — all customers based in the US doing residential projects have access to it.  You can also use Integrated Financing with with some of our other solutions: Web Proposal: This free feature lets you accurately show customers their loan and loan terms in their web proposal; this way, the customer can review the loan terms on their time while they consider the contract Contract Manager: Automatically add financing terms directly to the contract, and then close the deal on the spot with e-signature capabilities (premium)  To learn how to configure your Integrated Financing, see these (brief) step-by-step instructions. Current Aurora customers can activate Integrated Financing by going to the Integrations page in your Aurora settings. We’re at the end of our time, but to learn more, watch our Sales Mode and Contract Manager webinar, visit our Sales Mode site, and then get in touch for a quick demo.  We really think Integrated Financing will streamline your sales processes and ultimately lead to your reps closing more deals, more quickly. Give it a try and let us know if we’re right. ### Solar Power Production Guarantees | The Complete Guide Potential solar power customers are becoming more savvy every day. They do their research, get multiple estimates, and make sure they compare apples-to-apples with all those estimates.   In a market like this, separating your offer from the others can be difficult. One strategy companies are turning to — and customers are increasingly asking about — is production guarantees. In this blog we’ll take a look at production guarantees, why you should offer them, the potential risk factors, and what you need to make sure you meet them. What are solar power production guarantees?  As the name indicates, with a production guarantee (PG), the solar installer guarantees the homeowner that the installed system will produce a certain amount of energy over a certain amount of time.  Since solar panels are generally a long-term investment, production guarantees are commonly offered for 10-to-30 years. Guarantees often step down over time, for example guaranteeing 90% of a certain production amount at 10 years and 80% at 20 years. While the specifics of plans vary, if there's a difference between the actual production and quoted production, the installer generally reimburses the homeowner in some way.  This may come in the form of making tweaks to or repairing the system, and/or paying the homeowner for the difference. The range of what installers offer is wide — with some offering to pay double the difference between the guarantee and actual production, for example — but generally include: A guarantee that the system will meet a certain percentage of guaranteed output A cash payment for any performance under the guarantee System maintenance to resolve the problem Making the solar energy production guarantee model work For new renewable energy systems, production modeling is extremely important to decision making: accurate projections can clearly illustrate the power production expectations for the duration of the equipment’s lifespan.  When comparing their options, solar customers look for the system that will generate the most energy. To make their investment more of a sure thing, buyers are more likely to choose a provider with energy guarantees set over a long period of time. To generate accurate production guarantees, modern installers must use qualified development tools designed specifically to accurately calculate solar output. While considering the system size, efficiency, location, sun irradiance, and more, today’s advanced solar software platforms can instantly project decades worth of solar production and cost savings against local utility power. What’s the difference between production guarantees and warranties? Production guarantees cover power production, not the physical assets involved in solar production. Most solar installers also offer equipment warranties of up to 25 years on parts like panels, inverters, and racking systems.  While production guarantees are often referred to as “production warranties,” as the name implies, they cover the actual production of a customer’s system, not the physical materials. It’s important to note that battery storage is usually not covered in a production guarantee. Instead, it generally comes with a manufacturer’s warranty. Why you should offer production guarantees For installers, production guarantees can help sales in a couple ways. First, they give homeowners peace of mind that, even if the system doesn’t deliver as promised, they won’t be on the hook with higher energy costs.  Companies can also use production guarantees as a way to differentiate themselves from competitors. “Choose us, we’ll guarantee your energy cost savings,” can be a compelling closing pitch, especially if competitors aren’t offering them. If competitors are offering them, finding a way to improve your guarantees can also give you a leg up. Designing a system that can meet production guarantees Of course, for production guarantees to be cost effective, any system you install needs to live up to those guarantees. Paying customers for energy your installation didn’t produce is a good way to lose money.  The good news is that it’s very possible to design production guarantees that are both good sales tools and realistic to meet. For example, using a blend of solar design software and know-how Altair Solar hits virtually 100% of their production guarantees. So, how can you put yourself in the best position to consistently meet the PGs you offer to customers? Let’s look at some tools and techniques that will get you started on the right track. Solar system design software Let's start with the obvious: No software solution can guarantee that you'll meet production guarantees. Solar design software can, however, help you get started on the right foot. After all, the first prereq of meeting solar production guarantees is accurately designing the system in the first place. If you design a 5kW system and make a PG against that number, but your layout doesn’t correctly account for shading, or the exact angle of the sun, you’re in the hole before a panel ever hits the roof. Let's look at some features that help. Bankable shade reports Shading is the bane of any solar installation. Shade from nearby obstructions can affect performance, so it’s important that you can model panel shading as accurately as possible. Software that offers bankable reports that have been validated by NREL and other authorities is the best bet for making sure the shade analysis for any site is accurate. A LIDAR rendering for solar design. HD Imagery & LIDAR Remote site design saves time and money. Full stop. To make sure those designs are as accurate as possible, however, you need the clearest possible images of the site, including roof features and obstructions.  Thankfully, most solar software now offers HD imagery, but to help meet those PGs, there’s one more level to look at: the HD package has to be updated regularly and hyper-accurate. For these reasons, software that has multiple image sources, like Google HD and NearMap, is the best bet. LIDAR also adds to the accuracy of designs by providing pinpoint, 3-dimensional information about a site, including building and tree heights, other obstructions, and even roof slopes. A solution that has both LIDAR and HD imagery helps you produce accurate power estimates, without ever getting up on a roof.   Accurate irradiance mapping Irradiance and performance simulations help test your designs against real-world data. Irradiance maps, in particular, show where on the roof gets the most sun, and can identify how obstructions and the specifics of a roof will affect how much light the panels get.  Software that lets you easily update your simulations can help you identify the ideal amount of panels for a project, and translate that into accurate power production potential estimates. It also helps consultants easily explain to homeowners why they’re placing panels in certain areas for maximum energy output, and not in others. On-demand modeling services A big part of using production guarantees is to help you sell. And a big part of selling is making sure the customer understands exactly what they’re getting.  Even the best solar designers can use a hand. Whether it’s a particularly complicated project, or your business is too busy to quickly turn around accurate designs, or you want your designers to be able to help out more with all aspects of a proposal, or any number of other reasons, sometimes you need some help.  On-demand design services, like Aurora’s 3D Modeling Service (3DMS), can help you deliver dead-on accurate 3-dimensional models in less than three hours — with an average time of about an hour (contact us to see about plans that guarantee 30-minute turnaround times). You send the specs, one of Aurora’s designers takes on the project, and a 3-D model comes back that’s ready to go. And since experts create the models, you can feel confident that they’ll be accurate. For more information on important solar software features, check out our Big Book of Solar Software Must-Haves. A note on weather To be extra careful with your production guarantees, consider consulting historical weather data for variances. The weather data used for simulations in Aurora is a Typical Meteorological Year (TMY) format, meaning that it represents an average year. While areas with steady climates may not vary too much year-to-year from that average value, some regions can see substantial dips in production in years with more storms or clouds. You may also want to have a disaster clause to handle disruptive global events like the 1991 eruption of Mount Pinatubo, which is estimated to have blocked 10% of the sunlight for the year. Factors that can affect system performance IRL You know this, but let’s put it out there: Your job isn’t done when the system is installed. While an accurately designed, properly installed system is crucial, that's just the start of potentially 25+ years of power generation. Every site has its own personality and unique issues, so you can't overlook system maintenance. In our series on PV system losses, we identified a few common categories that can cause a system to underperform: Nameplate, mismatch, and LID losses: These are factors that reduce the amount of direct current (DC) energy produced by the solar panels before that energy is converted into alternating current (AC) by the inverter for use in the home and on the electric grid. Wiring, connections, and system availability: These refer to factors like how the system is wired, resistance due to wiring and connectors, and system down time.  Soiling, snow, and system degradation: This captures the amount of sunlight that is blocked by dirt and debris that accumulate on solar panels over time.  Tilt & Orientation, Incident Angle Modifier, Environmental Conditions, and Inverter Losses & Clipping: This catch-all group involves some values that are usually automatically calculated by your solar software, but can have an effect on an installation’s efficiency if they aren’t accurate. A lot of these factors can be addressed at the time of system design — for example, making sure your system wiring is designed correctly and shading is calculated accurately — with the right solar software. There are others, like system outages and soiling, that installers can actively mitigate after the install.  A solar panel that desperately needs cleaning. System maintenance Panels that aren’t operating efficiently can quickly get an installation behind a production guarantee percentage. One way to make sure a customer’s panels keep working like new for as long as possible is by providing ongoing maintenance — often referred to as O&M (operations and maintenance). What’s involved in O&M for solar? It’s generally a combination of preventative and corrective maintenance, offered either by the installer themselves, or through a subcontractor. The services can include tasks like solar panel cleaning and regularly checking components to ensure that the system is operating efficiently. As an added bonus, O&M is a great way to keep in touch with customers, make sure everything is going smoothly, and be the first to know about any additional work they’re considering. It’s also a great way to show value and stay top-of-mind for referral leads for new customers. Tracking production In addition to performing maintenance on installations, tracking system performance can help to nip any potential under-performance problems in the bud. This is where system monitoring is crucial. Just as it’s important that customers find out there’s a problem with their panels before they’re surprised with a high electric bill, installers don’t want any surprises when it comes to production guarantees. Therefore, close monitoring of each customer’s system to identify issues before they become problems is a must. There are many monitoring options out there, just make sure you’re using one that identifies problems quickly and alerts you automatically. And make sure you have a system in place so that alerts get escalated to the right people quickly, so small hiccups don't become problems that cost you money down the road. Note that this monitoring can be a selling point in itself. Certain solar consumers are interested in the “plug-and-play” model — they want the savings of solar, but don’t want to think about it. Selling these customers on your ability to root out problems quickly and efficiently can be a real differentiator. Likewise, as solar has gained popularity, there has also been a rise in solar "nerds" [raises hand], who are interested in closely watching their system's production. A robust user interface that provides insights into their system can be a selling point, not to mention the fact that these customers can be good self-reporters on any issues that may be affecting performance.  The solar industry is tough, and companies need every strategy at their disposal to get ahead. Production guarantees can be a valuable tool in your belt — both for sales and keeping an ongoing relationship with customers — provided you take the necessary steps to be as sure as possible that you meet them. Solar power production guarantees are a great way to help close and maintain new client relationships. They let customers know that you stand by the quality of your products and services, and that they’re designed for decades of efficient use.  The key is: They have to be accurate. If they aren’t, not only will your customers lose confidence in your company — hurting potential referral business — but you’ll be left holding the bag to cover the shortfalls. Featured image by Mika Baumeister ### Raising a Series D to Gear Up For Solar’s Extraordinary Growth We’re excited to announce we’ve raised a $200 million Series D funding to accelerate our mission of creating a future of solar energy for all. This round was co-led by current investors Coatue and Energize Ventures with participation from Fifth Wall, ICONIQ, and new investors, Lux Capital and Emerson Collective. Hot off the heels of our $250 million Series C last May, this is a major milestone for our rapidly growing team and a sign of the solar industry’s extraordinary growth. To learn more about what we're doing with our funding, we invite you to join us at our free Sunrise Demo Day, on March 2nd, where we’ll be sharing a first look at some of Aurora’s most anticipated new features. What’s Next This decade is going to be pivotal for solar, and we’re excited to work even harder and faster to help our customers keep up with demand and guide them through their digital transformation.  With this additional capital, we’ll look to accelerate our product development and extend Aurora’s platform to every member of a solar organization. Our goal is for sales, marketing, operations, designers, and beyond to be able to work seamlessly from Aurora — because they all play a critical part in putting solar within reach for more people.  What does that look like in practice? We’ve recently released a number of products to help our customers tackle some of the industry’s biggest challenges and make the entire solar sales process — from the first customer interaction to when they sign on the dotted line — easier for the whole team: Lead Capture AI (LCAI): A lead engagement product that allows you to capture, educate, and engage leads that come to your website. LCAI uses Artificial Intelligence to automatically design a preliminary solar system for a homeowner.  Sales Mode AI (SMAI): Sales reps can now quote, sell, and close deals in real-time, right on their tablet. These products contain exciting features to make finding and closing customers faster and better than before: Using AI, 3D solar designs can be created in less than 30 seconds with just the click of a button   Personalized, interactive proposals that keep customers engaged after the initial consultation Integrated financing and e-signature capabilities so sales reps can make a one call close, without having to manage multiple software applications These are just a few of the exciting things we’ve been working on. And we have a whole lot more heading your way soon.  Thank You We want to send a special thank you to you for helping communities around the world transition from fossil fuels to solar, and for trusting us to help power your business every day. From day one, we’ve been working on reimagining the solar design and sales processes for you — and with you in mind. We’re committed to listening and delivering features that support your needs.  Join Us To make a future powered by solar energy a reality, we’re going to need all the help we can get. If you share our vision for the future, want to work at the intersection of technology and solar energy, and want to take on a global challenge, we invite you to join our team! ### Qualify a Solar Customer in 10 Minutes Many small solar businesses who are competing with big-name companies waste a lot of time on “tire-kickers” and homeowners who simply aren’t a good fit for solar. In this micro-webinar, we’ll show you how to do a virtual site assessment to qualify customers quickly and speed up your sales cycle. In just 10 minutes, we’ll show you how to generate shade reports, model irradiance, and determine whether to pursue a lead or move on to better opportunities. How to quickly do a virtual site assessment to qualify a customer How to get shade reports and model irradiance in under 2 minutes How to avoid long sales cycles, expensive truck rolls, and costly change orders       ### Create an Automated Process for Your Sales Team In this micro-webinar, we’ll show you how to create useful automations, limitations, and processes in Aurora to help enable your sales team. We’ll also share real world examples of how other companies have supercharged their sales process to give you ideas on how you can improve yours too. We'll show you: How companies have reduced their lead to proposal time by 90% How to create presets that can save thousands of hours of your sales team’s time How to set limitations that will prevent change orders and cancellations       ### Solar Sales Masters: The “We’d Rather Use the Money for Other Investments” Objection We know solar can be a great investment for homeowners looking to reduce their short-term and long-term energy costs. However, there’s a lot of competition out there for a customer’s investment dollars, including home improvements, stocks, cryptocurrencies, and so on.   How can you help homeowners see that solar is an investment with returns that rival other investments? That’s the subject of the final homeowner concern of our Solar Sales Objections Handbook.  Click the image above to download the Solar Sales Objections Handbook. The Objection: I’d Rather Use the Money for Other Investments “Solar is an okay investment, but I would rather use that money for my other investments right now.”  Replace an Existing Bill with No Upfront Costs So how can solar help a customer instantly start saving more money for other investments?  In the right circumstances, a qualified customer can finance a solar energy system to reduce monthly utility payments with no upfront costs. With a zero down, no money upfront program to replace their electricity bill with a financed solar system, customers can cut their monthly energy expenses, freeing up money for investments.  Knowing programs like this are available, Lily Valdez, Co-Founder of Women United by Solar is quick to dismiss the idea that solar and and other investments will not work side by side.  “To me, this isn’t a real objection. It's a smokescreen for another objection behind it: They just think solar is expensive.” Tools like Sales Mode can help you present these savings to homeowners clearly and concisely. This person will have $108.32 more to invest each month. More Money for Other Investments To begin, it’s critical to get potential customers to understand that existing investments and going solar are not mutually exclusive.  As Jake Hess, Founder of The Solar Academy put it: “Nobody wants to keep you away from the things that you love. You probably love investing, it’s probably giving you lots of money, so keep doing that. But right now, a portion of the money that you could be investing is going to your utility company.” James Ramos, Founder of Solar YOUniversity, uses this objection as an opportunity to let the homeowner know you understand investment strategy. “With solar, you can diversify your portfolio without having to make any sacrifices. Why not do both?”  To move the conversation forward, Lily uses empathy (remember?) to understand the customer’s needs, and build a relationship. “I’ll say: ‘I’m interested in investing, myself. What are you currently holding?’ Then I’ll get to know them and say that I’m also saving $80 per month with the solar on my house.”  Sales mode can show homeowners that solar is a good investment. Guaranteed ROI and Utility Bill Price Protection  Finally, one last way to compete with other investments is to talk about how solar energy can be a safe investment with virtually guaranteed returns. Positioning solar as the safe investment to complement other riskier investments can appeal to someone who understands investments and cares about a balanced portfolio. James explains: “The great thing about solar is that it is stable. You’re going to know exactly what you’re paying for. And while your other investments can go up and down, solar can help put your money to work.”  In a scenario where a customer would sell their investments to pay for a cash installation, Solar Joe further emphasizes the stability of solar.    “If it's about cash that needs to be spent one way or another, solar is better as a guaranteed ROI as opposed to other investments, which are more of a gamble. ”  Once you have a homeowner thinking about their electricity bills, you’ve got an argument you’re used to facing down: Over time, the costs of solar remain fixed and energy produced by the system protect a property owner from increasing electricity rates.    To tie it all together, Lily summarized:  “All we're doing is price protecting you right now so that you can keep more money in your pocket to do whatever you’d like. Crypto, real estate, buy a new car, whatever you want to do, solar can help you get there.”   In Closing… Homeowners have many reasons to love solar just as much, if not more, than their other investments. Without sacrificing any of the funds allocated for other interests, solar loans can stabilize electricity costs with no money down.  If it’s a “one or other” scenario, you can sell solar as a much safer alternative to crypto, stocks, and other volatile investments. With electricity bills always going up, solar has a guaranteed ROI — savings will only increase over time.  To get all the details on how to deal with this objection, download watch The Solar Sales Objections Handbook. Then come back and explore the other posts in this series:   We Need Another Quote We’re Retired and On a Budget We're Concerned About Damage to the Roof We’re Planning to Move Soon  We're Using the Money on Other Investments Featured image by Kostiantyn Li. ### Solar Sales Masters: The “We're Planning to Move Soon” Objection If a potential customer is thinking about moving in the next few years, selling them on going solar can be challenging.  After all, modern solar panels generate electricity for over 30 years, and making a long-term investment isn’t something most people are considering when they are also considering a move within a fraction of a system’s lifespan.  Plus, coordinating, financing, and transferring the ownership of an installation takes time and effort, which many people would rather avoid than add to their to-do list. Thankfully, solar is often such a good investment, with relatively short payback periods and even options for zero cash out of pocket, even homeowners only planning to stay at a property for a short period of time can still reap the many benefits of going solar. In the Solar Sales Objections Handbook, we get the inside scoop from industry experts on what to do when a homeowner is interested in solar but not yet in their “forever home.”  Click above to download the Solar Sales Objections Handbook and get the scoop on how to deal with the most common sales objections.  The Objection: We’re planning to move soon “We’re only planning on being at this house for a few (5-7) years, so I don't think solar will be worth the investment.” While plans to move may be a valid reason not to upgrade a property, with a timeline of just 5-to-7 years, every panelist agreed that this objection should not be a stopping point in the conversation.  Homes with Solar Sell Faster and For More Money  While home buyers are used to seeing panels around town, and usually understand that they lower monthly utility bills, they often have misconceptions about how difficult and expensive installing a solar system is.  Lily Valdez, the co-founder of Women United by Solar, likes to set the stage by addressing these issues.  “I always start with easing their concerns. If the customer is thinking that in 5-to-7 years they’ll be left with a large loan, that can be a big concern. But what you’re actually doing by going solar is saving monthly and adding value to your home (especially in California).”  Then Lily explains a benefit that many solar customers aren’t aware of. “If you don’t have solar, you may be at a disadvantage because people are looking at the total cost of the home. They are looking at mortgage and other monthly payments, and when your payments are zero or a fixed low price, whose house do you think will sell faster?”  Of course, many homeowners won’t just take your word for it, so come with facts to back up these claims. Lily usually points to two trusted sources: A study from Zillow that shows solar adds more than 4% to a home’s sale price. Research from Berkeley Labs that indicates home buyers are willing to pay a premium of almost $4 per watt of solar capacity installed on a home— which is more than $15,000 on an average install. Do the Math for A Wise Investment “Solar Joe” Mousakheel, CRO of The Solar Academy, leans into the numbers to address these concerns. “This is my favorite objection in the world. Because, at the end of the day, it’s just math… The value of your solar system is based on what utility rates are, and the more expensive those rates are the faster your ROI is. I’m working in the PG&E area, so for the homeowners that I work with, it only takes 5-to-7 years to have the whole system paid off given how much money they’re paying to the utility.”  Solar Joe then supports his claim with a real-time calculation of the cost of solar against estimated monthly payments with the local utility — being sure to highlight the increasing cost of electricity. (This is also a great way to get the homeowner to share their utility bill.) Tools like Sales Mode can help with both calculating savings, and presenting it to the customer in a compelling way. Once he completes the calculations, he drives the point home.  “Looking back at the end of 5-to-7 years, what would be the best decision? To have your highest bill ever with the utility, or have free electricity in your house for the next 30-40 years?” When you “do the math,” James Ramos, founder of Solar YOUniversity, highlights the idea that 5-to-7 years is, in reality, a significant amount of time compared to shorter stays.    “Hey, that’s great. If you told me that you were going to move out within 12 months, then this would not work for you. But since you’ll be living in the house for 5-to-7 years, then you can really benefit from solar.” Tools like Sales Mode can help you accurately determine the payback time for potential solar systems, and present that data to a customer in clear, easy to understand terms. Consider a PPA if Available  If a homeowner is planning on leaving in a shorter time window, that doesn’t necessarily mean solar isn’t a good option. In these cases, a power purchase agreement (PPA) may provide a lot of benefit for homeowners, essentially allowing them to “lease” solar panels.  As Jake Hess, founder of The Solar Academy, explained:  “We can talk about loans, cash, and increasing property values. I’m going to cheat a little bit and suggest a PPA on this objection for markets where it’s available.” PPAs allow the homeowner to lease panels if a homeowner doesn’t want a longer-term investment, providing monthly savings without any money out of pocket. “The fact is, when purchasing solar, money is leaving your bank account. Are you going to be getting your money back in 5-to-7 years? Who knows? This is why I think a PPA is probably best for you because you don’t put any money down and you’re not trying to recoup funds.” Click here to learn more about the pros and cons of PPAs, and other solar financing methods. In Closing… Homeowners moving in as little as 5 years can still benefit from an investment in solar. With increased property value and lowered, fixed utility bills for decades to come, most modern home buyers recognize the advantages of solar, and homes with panels can sell both more quickly and for a higher asking price.  Download the Solar Sales Objections Handbook to learn more details about dealing with all of the most common solar sales objections, including the “We’re moving soon” objection. Then click below to read even more on each one:  We Need Another Quote We’re Retired and On a Budget We're Concerned About Roof Damage We're Planning to Move Soon We’d Rather Use the Money for Other Investments  Click above to download the full Solar Sales Objections Handbook. Featured image by Klára Vernarcová. ### Solar-Related Keywords: Understanding What Solar Customers Want Table of Contents Introduction What Are The Leading Topics of Interest in Solar Energy? Cost General Information Benefits and Drawbacks DIY Viability Best Of Key Takeaways Introduction Solar energy is one of the fastest growing sectors of the economy, and its popularity in online searches is growing right along with it.  By 2021, solar energy grew to represent 54% of all new grid capacity added in the US, up from just 4% in 2010. Likewise, “solar” keyword searches have skyrocketed as more and more customers turn to Google to learn more.  With competition growing each day, understanding how customers search — specifically the keywords they search for — is quickly becoming a key way for solar installers to generate leads in this accelerating market. But, the ins and outs of targeting keywords can be mystifying. To help you get started, we’ve sifted through the research and cut out the fluff to identify the top keywords you need to know to get your business in front of eager potential customers. In this article, we'll cover everything you need to know for solar-related keywords and search engine optimization (SEO) — from the top questions and leading drivers of your solar-seeking customers, to how you can best target those questions and drivers for maximum engagement through your website. What Are The Leading Topics of Interest in Solar Energy? It would be a monumental task to break down every potential solar technology topic customers are interested in, but what we can do is look at the leading Google searches around solar-elated terms.  This gives us a look at what we call search intent, or the purpose behind people's searching in the first place. It shows us the major areas of interest your potential customers are moving towards so we can know exactly which keywords to use to best reach them where they’re at naturally.  Based on our research, the best topics to focus on for your solar SEO efforts fit into the following 5 categories: Cost How much do solar panels cost? How long will it take me to see a return on my investment, or break even? Are solar panels worth it? General Information How do solar panels work? How long do solar panels last? How do you clean solar panels? Benefits and Drawbacks What are the advantages of solar panels? What are the disadvantages? How are solar panels better for the environment? DIY Viability How do you install solar panels? Can you build your own? Where can I find a solar panel kit? Best Of What are the best solar companies near me? What is the best solar company in my specific area? In this article, we’ll investigate some of the top keywords for each of these topics so that you can help potential customers find your brand online while they’re searching.  We'll focus mostly on the actual keywords and ideas around content that can help address them. Here are a few resources to help you get started learning more about how to develop your specific marketing strategy — around keywords, search engine optimization, and other channels: Beginner’s Guide to Solar Marketing: 4 Strategies to Jumpstart Your Marketing Solar Marketing: From Blog Post to Proposal — Strategies to Drive Storage Sales Solar Marketing: Using the Internet to Grow Your Brand Solar Marketing: How to Win Over Prospects With Informative Solar Content Cost One of the largest concerns (if not the largest) for customers considering the switch to solar energy is cost. After all, depending on how customers finance it, solar can be a large investment.  However, you can turn this concern into a great opportunity to educate potential customers on the costs associated with a solar installation, the types of savings they can expect, and how you can work with them to keep costs as low as possible — and even guarantee production. Here are some of the top keywords related to the cost of solar. (Note: The number in parenthesis is the monthly search volume [MSV]. This simply means the number of times a certain term gets searched per month. It’s important because, if a term has 10,000 MSV and you’re in one of the top positions on the results page, you could receive 10,000 new visitors to your site.) cost of solar panels (10,000)  are solar panels worth it (6,000) cost to install solar panels (2,200) average cost of solar panels (1,500) how much are solar panels for a house? (1,000) Targeting these solar-related keywords with your content will help drive potential customers to your website, and give you the chance to show them how an investment in solar can pay off.  General Information A critical truth to remember is that the general public’s knowledge about solar energy and technology is still pretty limited. For every solar-savvy person out there, there are far more who know little to nothing about it — from the associated costs, to how it works, how it's maintained, what the installation process looks like, and even the very basics of why they should want solar in the first place.  This also presents the perfect opportunity to both educate visitors to your website, and turn them into customers. By posting engaging, educational content you show expertise, build authority, and enhance your reputation. This improves your chances of converting those clicks into sales opportunities.  Here are some of the top keywords related to solar energy and general solar information, along with their monthly search volumes: how do solar panels work (9,600) how many solar panels do i need (7,100) how long do solar panels last (5,300) how to clean solar panels (3,300) types of solar panels (2,000) Establishing yourself as a reliable and thorough source of information at the beginning of a customer's solar journey is a great opportunity to be their go-to for all things solar, including purchase and installation, and even maintenance.  Benefits and Drawbacks As with anything, many customers are curious about the benefits and drawbacks a solar installation provides. Saving on utility bills and helping the environment are some clear advantages potential customers may think they already know about, but what are they missing?  There must be some kind of hidden drawback among all the headlines like “Lower Your Utility Bill” and “Cut Your Carbon Footprint,” right? When you target these kinds of searches, you can help present the information in the most convincing way possible, highlighting the benefits of your specific services. Pros and cons are popular search topics for notable products, especially when customers and the market are both new. This presents a fantastic opportunity for you to become an authority and educator. After all, who doesn’t prefer doing business with a brand that’s honest about the risks or drawbacks of a certain investment, and who went through the effort to help educate their audience. Here are some top driving keywords for the benefits and drawbacks of solar power: pros and cons of solar panels (1,200) solar panel benefits (250) disadvantages of solar panels (200) leasing solar panels pros and cons (200) benefits of solar panel of roof (150) By establishing your company as a trusted source of information, you can be first in line for those that are convinced to buy — and be a resource they refer to friends and family down the road. DIY Viability From bargain hunters, to hobbyists, to people that just like to work outside with their hands, some potential customers are likely to be interested in the DIY side of solar technology.  But, many people who search DIY solar topics will likely find it’s too difficult, or time-consuming — or both — and decide to go with a solar installer instead. Wouldn’t it be nice if they were on your website when they made that decision? Whatever the case, the DIY crowd shouldn’t be ignored. Here are some of the top driving solar related terms and keywords related to DIY: diy solar panels (8,000) how to install solar panels (1,700) solar panel kits (1,200) how to make solar panels (1,000) how to wire solar panels (350) If you can provide relevant information for the DIY crowd on the pros and cons of installing their own system you may just happen to convince them how much faster and simpler it would be for them to have an installer do the job. Best Of Sometimes what pushes consumers over the line is knowing that something is the best. Everyone enjoys a good “best of” list that’s done all the work for them. While “best” is obviously subjective, what isn’t subjective is the clear and widespread search intent of answering this question.  Many customers will search for the best of a product without actually knowing anything about it, however. This gives you the chance to drive customer interest and engagement while building your brand’s and site’s reputation. Not only does this give you an opportunity to establish yourself as the best provider or installer of solar panels, but comparison and list-style articles are very popular in search — this can help drive consumers who are Googling the “best of” solar energy solutions towards you and your related solar content.  On that note, here are some of the best performing “best of” keywords for solar energy: best solar panels (14,000) best solar companies (3,800) most efficient solar panels (3,500) best portable solar panels (1,100) best place to buy solar panels (350) Focusing some of your content around keywords like these can encourage many new visitors to your website — giving you the chance to inform them about some of the best solar options available and establishing your authority in the options you offer.  Key Takeaways Now that you know some of the top driving solar-related keywords for different search intents, you can begin naturally attracting more traffic and engagement.  But before you do, here are a few key takeaways to consider while implementing these bits of solar SEO into your sales and marketing strategy. Solar SEO Tips: Make sure you understand search intent when you build out your content. Use the right keywords to match the reader's intent. Try to diversify, with original pieces focusing on different intents. Know your target audience: Try to pick a content focus that will appeal to them the most! Further Reading: Beginner’s Guide to Solar Marketing: 4 Strategies to Jumpstart Your Marketing Solar Marketing: From Blog Post to Proposal — Strategies to Drive Storage Sales Solar Marketing: Using the Internet to Grow Your Brand Solar Marketing: How to Win Over Prospects With Informative Solar Content   Featured image by NisonCo PR and SEO. ### Should I Point My Solar Panels West to Optimize for Afternoon Peak TOU Rates? March 23, 2023: We have a new post that looks at this question using the new NEM 3.0/Net Billing Tariff rules. Click here to go to that post. Here at Aurora, we like to tackle hard questions. One question we see often is: “Given that electricity rates are higher from 4 - 9 pm in California, should I place my solar panels facing west instead of south to maximize savings?” In this post we will dive into why west-facing panels might be more advantageous than south-facing ones, and provide recommendations based on your location and how your peak time-of-use (TOU) rate works. Why is it Important to Orient Solar Panels Correctly? By pointing panels west, we're looking to: Save money: Optimize system design and components for efficient power production and project ROI.  Minimize the impact of high time of use (TOU) rates: Use more of your own electricity during peak utility billing periods with panels oriented to generate power in the afternoon sun. Before we get into the specifics of orienting panels to the west, here is some background on why the orientation of the panels matters in general, how time of use rates (TOU) can change the math, and other factors that go into the decision on how to orient panels. Understanding System Losses: Tilt, Orientation, and More How Time of Use Rates Work How Solar Can Benefit Utility Customers on Tiered Rates Context: Moving West in California Aggregate Demand and the Duck Curve The three main investor-owned utilities in California have been utilizing peak TOU rates 4 - 9 pm since late 2017; customers are charged more for the electricity they use during the late afternoon and evening hours. Prior to this, peak hours in the middle of the day—between 11 am and 6 pm—were most common. The peak hours shift was driven by aggregate demand on California’s grid. Prior to the early 2010s, homeowners and businesses used the most energy in the middle of the day and early evening. Midday peak-pricing provided the financial incentive to reduce energy usage or shift loads to non-peak hours. Since then, the falling cost of solar has drastically shifted the total demand on the grid as seen in the infamous duck curve, pushing the peak demand, and moving peak-pricing to early evenings. Source: CAISO. California’s “Duck Curve” shows the low mid-day net demand on the California electricity grid after solar and wind generation is accounted for. The low mid-day trough and steep afternoon ramp are part of why time-of-use rates have peak pricing between 4pm and 9pm.  Directional Variation Taking a look at the energy production of a south-facing system in the Los Angeles area, about 87% of its summer energy is produced during off-peak hours and 13% is during peak hours. Chart showing a PV production curve for a south-facing system; only 12.6% of energy is produced during peak TOU hours. If we take the same system and rotate it to face a different direction, we estimate that you can get up to 20% of that system’s energy produced during peak hours, but the total production (yield) from the system is lower. The tradeoff is having more peak-hour energy at the expense of having less total energy; the peak yield of a system in this location at an azimuth of 190, just slightly west of south. Chart showing energy yield (kWh produced per W per year) and the percent of production that’s during peak hours. Maximum energy yield is around an azimuth of 190 degrees. The most on-peak kWh production occurs facing west, but the overall yield is substantially lower. Net Metering Valuation In standard net metering policies, energy production from the PV system can be assigned a dollar value based on the utility rate at that time*. For example, producing 2 kWh in an hour with a rate of $0.15/kWh provides a credit of $0.30, and producing 2 kWh in an hour with a rate of $0.35/kWh is valued at $0.70. It’s important to understand the time-dependent production profile of a PV system, not just daily total yields. Taking our south-facing production curve from above, about 12.6% of energy is produced during peak hours, but that energy is valued at nearly double that of off-peak energy. As a result, 21.2% of the value of the energy from the PV system comes from on-peak production. Chart showing how the on-peak energy produces a greater value to the homeowner than off-peak energy, thanks to the peak TOU rate. Back when the evening-peak rates were newly implemented, we reviewed several hundred San Diego projects that had been designed in Aurora and found that the rate change would substantially increase bills for customers who were still large net-consumers after going solar, but that solar was still a solid investment even with the less favorable TOU periods. Is It Worth Pointing Panels to the West? After simulating production profiles for systems with various orientations and combining it with residential TOU rates, we created an “energy value” of the PV systems. We calculated energy value by taking the kWh created by a system during each hour of the year and multiplying it by the current retail rate, and then tabulating the sum of all hours. The data is presented in gauge charts below. The wheel color indicates the system yield similar to the irradiance maps in Aurora. The sunshine icon indicates the optimal azimuth with the maximum energy production, and the needle showing which orientation achieves the most “energy value” throughout the course of the year. The example below is for a customer in Southern California Edison territory near Los Angeles, using the TOU-D-4-9-PM rate. The ideal orientation for energy production is around 190 degrees azimuth, and because of the late peak hours, the ideal orientation for solar value is slightly further west at 200 degrees azimuth. In other locations, this trend still holds true. The optimal orientation for system production value is slightly west of the optimal orientation for overall energy production, but not substantially so. Nearly all sites studied (see below) have an optimal orientation of 190 or 200 degrees azimuth, just slightly west of south. The rate that favors the furthest west-facing panels is San Diego Gas & Electric’s TOU-DR-SES for solar energy systems, which features an extraordinarily high peak price and lower off-peak rates. What Happens If… In the previous scenarios, there aren’t strong arguments to face your panels west when you have a choice to point them south. However, west-facing panels might be the way to go in some situations, e.g., a return to 3 - 8 pm peak pricing or a higher on-peak price. We will look at a couple of these what-if cases next. Higher Peak Pricing In some of the current TOU rates, the peak rate is roughly double that of the off-peak rate ($0.16 vs $0.31 per kWh in the SCE example). Adjusting this ratio from 2:1 to 3:1 or 4:1 by either increasing the peak rate or reducing the off-peak rate will provide more relative values to the on-peak energy production. We tested this out with the SCE rate, and got the following results:Increasing the difference between on-peak and off-peak prices to such an extreme level is not expected, but doing so would favor southwest-facing systems. The energy production (color scale) remains the same, but the needle shifts west indicating that there’s an advantage for southwest-facing systems when there is an extreme difference between on-peak and off-peak pricing. We don’t expect rates like this to show up frequently, but an off-peak to on-peak price difference of $0.15 vs $0.45 would be enough to favor systems that face more west. Earlier Peak Pricing Hours For most PV systems, whether they face south or west, there is more energy production between 3 - 4 pm than 4 - 5 pm. What if peak TOU hours began at 3 pm, would there be an advantage to face further west? Yes, if the rate is E-TOU-A in PG&E territory, which has a 3 - 8 pm peak pricing period. E-TOU-B is similar to E-TOU-A, but features a 4 - 9 pm peak rate. Shown side-by-side here, there’s no change in the optimal orientation. Non-Standard NEM Scenarios The above analysis applies to utilities that have standard NEM policies, or have export rules that are still very close to retail rate. In markets such as Nevada or Hawaii, in which the gap between the purchase rate and the credit for excess energy is substantial,, there is additional value in designing PV production to coincide with home loads (i.e., self-consumed energy offsets the bill at the retail rate while exported energy is credited at a lower amount, or not at all). To correctly model these scenarios, it’s important to have a good measure of the customer’s home energy usage (such as Green Button Data) and to make sure your modeling tools support advanced NEM rules. Conclusions If you are planning a ground-mount system or have a flat roof surface, you might be able to boost the value of your solar PV system by pointing it slightly to the west. If your roof is south-facing, the actual difference in produced energy value between due south and the optimal azimuth was between 0.3% and 0.7% in all the cases we looked at. Other factors, such as shade on the site, which roof surfaces are available for solar, and even the efficiency of the inverter, can have a much larger impact on the value of the system than picking between south and slightly southwest. A choice with greater consequence is picking between a southeast-facing (135 degrees azimuth) and a southwest-facing (215 degrees azimuth) roof face. The southwest-facing surfaces typically have about 99% of the maximum energy value while southeast surfaces were around 95% across the board. Both are great, but if all other aspects were equal, the southwest surface would be the better choice. Note Our data models here ignore non-bypassable charges, which are 1.5-3 cents per kWh depending on the utility company and rate. Models also simplify non-peak costs to be an average of off-peak and shoulder-peak prices, since these typically only differ by a few cents. We used 4pm-9pm hours for TOU, and used May, June, July, and August as the summer-pricing months. Production profiles were simulated using unshaded panels sloped at 20 degrees. Actual energy yield and optimal orientation will depend on site conditions including shading, and the actual optimal-value orientation may vary by tilt, shade conditions, and the customer’s load profile. You can complete a more in-depth analysis of system performance and utility bill savings using Aurora’s tools. ### 4 Ways to Increase Solar Sales Close Rates and Reduce Cancellations Even with all its benefits, going solar can still be intimidating for homeowners. It requires permits, documentation, and even changes to the physical appearance of their house. Sure, it’s old hat to us, but to someone going through it for the first (and maybe only) time, it can be pretty confusing. It’s no surprise, then, that obtaining a signed commitment remains one of the toughest hurdles that solar salespeople have to overcome. So what can we do to increase the likelihood that the customer will sign on the dotted line? That’s what Aurora Product Marketing Manager Stephen Gerken discussed in a recent webinar.  In this blog we’ll dig into four key strategies that can help you get more customers to move from, “Yes, I’m interested,” to, “Where do I sign?” Adjust Proposals In Front of the Customer With any home improvement, customers will choose to work with a company that caters to the unique challenges of their home. So, being able to adjust a proposal on the fly is an absolute must have.  “You have to be able to easily adapt your proposal to the customer's needs and design a solution that works best for them,” Stephen explained. “That’s really important to improving the overall customer experience.”   This is where software like Sales Mode can be a huge help. While traditionally, a proposed design change could require work by different teams, introduce errors, and often take significant time, Sales Mode eliminates waiting time and reduces the possibility for error. If a system needs an adjustment during a customer meeting? “You can make those changes in real-time and won’t need to worry about manually entering in a bunch of information, which can lead to errors, change orders, and even cancellations down the line,” Stephen said.      Have Documentation Ready to Go  When moving a conversation forward, having every bit of documentation ready for the customer will also help keep a sale on the right track. And although most people appreciate being walked through the entire process, significant chunks of time dedicated to drafting paperwork can negatively impact sales momentum. For example, with Contract Manager sales reps can come prepared with custom templates that instantly adapt to create new proposals.  “The coolest part about Contract Manager is that all of the project details from Sales Mode are automatically pulled into the contract for you.” Stephen explained. “So, you don’t have to manually enter any of that information yourself. This makes it so that when you have your documents configured, setting up a contract is just as easy as a couple of clicks.” Taking the next step, simplifying documentation for the whole sales team really sets company reps up for success.  “These templates can be uploaded and configured by a systems admin on your account, and you can have as many templates as you want,” Stephen said. “The beauty of this is that you can have full control over the documents you send out, and if you need to make changes to your template, a system admin can simply go in and make those changes, and they’ll be reflected across your entire team.”  Get the Signature On the Spot You’ve heard the expression, “You can bring a horse to water but you can’t make it drink”?   This sentiment is also true in solar sales. In reality, companies can only do so much before ultimately leaving it up to the customer to sign on the dotted line.  Knowing that half of homeowners receive quotes from three or more solar companies, it can be difficult to differentiate yourself from the crowd, and locking in a contract quickly is a great way to earn new business. So, it’s critical to eliminate any last-minute variables, and get firm, on-the-spot commitments whenever possible. This is where Contract Manager’s e-signature integration can make a sale.  “Whether you are in the home or doing this remotely, you can just fire off all of the documents that you need the customer to sign, and get that firm commitment right on the spot,” Stephen said.  By walking through the proposal, answering questions, and putting a contract directly in front of the customer, a solar sales rep has then done everything they can to try and sell a system.  And while some homeowners may still want to shop around for another deal, a company that has earned a customer’s trust will have an easier time asking for a commitment during a sales meeting.   “If they’re ready to go, getting that signature on the spot will ultimately lead to higher closing rates because it eliminates potential hesitation,” Stephen said.    Keep Customers Engaged After Your Meeting If a meeting ends without a signature, it doesn’t need to be the end of the sales process. Whether they’re looking at other quotes or simply mulling it over, keeping a customer engaged with a proposal is the best way to stay in their mind.  By implementing continued communication, solar companies can separate themselves from the rest of the pack who fail to follow up.  “Today we are in a digital-focused world where there are so many things competing for people's attention,” Stephen explained. “The longer that you can keep the customer actively engaged with what you’re offering, the more likely they are to choose you and sign the deal later on.”  Knowing this, creating interactive project proposals, built to be as engaging and informative as possible, can set your company apart.  “Sales Mode’s proposal isn’t just a screenshot, the customer can pan around and zoom in on their own home’s 3D model with solar on it, and that’s pretty cool. They can’t edit the system design itself unless they consult with you first, but they can click on icons to show the irradiance map, the LIDAR map, and the sun path animation,” Stephen explained. “You're not just leaving them with something to glance over, it's something that they can use to educate themselves, educate their spouse, or just play around with.” With a live link, an interactive proposal allows a customer to learn at their own pace and share the information with others to review. After deciding to move forward, Sales Mode even allows a customer to close the deal themselves with a few simple clicks and an online signature.  Close It Keeping customers engaged both during and after a meeting is a critical part of closing more solar deals. Features like live proposal changes, auto-filled contracts, interactive proposals, and an e-signature integration can keep those customers engaged, and lead to more closed deals — either in the room or at a later time. See Contract Manager and Sales Mode in action during our Sunrise demo event.  ### Top 10 Things You Didn't Know Aurora Can Do: #1 — Expert Design Service When you have house projects to take care of, there’s always the question of whether to do them yourself or hire an expert.  The choice you make comes down to a few factors: How difficult is the job? You’re probably more likely to hire an expert to replace your furnace than you are to replace a lightbulb. How time-sensitive is it? You’re more likely to call a plumber to replace a broken hot water heater than you are to fix a slowly dripping faucet. How many other things do you have going on? If you have 15 other projects that need to get done, you’re more likely to hire an expert to complete some of them. How visible is it? You might want an expert to paint your house, but be willing to paint a wall in the basement yourself. Solar installers face similar decisions with every system design.  Why Expert Design Service is Important For solar installers, completing the maximum number of projects possible is critical to survival, and growth. But, you also have to make sure that you’re doing things accurately to avoid costly change orders and to make sure you meet your power production guarantees and other metrics. Even the best solar designers can use a hand. Whether it’s a particularly complicated project, or your business is too busy to quickly turn around accurate designs, or you want your designers to be able to help out more with all aspects of a proposal, or any number of other reasons, sometimes you need help.  So, for our #1 Thing You Didn’t Know Aurora Can Do, we wanted to highlight a way Aurora can take some of the solar system design burden off your plate. How Aurora Helps Aurora’s Expert Design Service can help you deliver dead-on accurate 3-dimensional models in less than three hours — with an average time of about an hour (contact us to see about plans that guarantee 30-minute turnaround times).  You send the specs, one of Aurora’s designers takes on the project, and a 3D model comes back that’s ready to go. And since experts create the models, you can feel confident that they’ll be accurate. How to Use Expert Design Service Since the whole point of Expert Design Service is making your life easier, getting started and using it is just a matter of a few clicks. Each design costs just $14.99, or you can get 10 for $99.99. Click here for more info on how to order. (A quick note: Some of these pages refer to “Expert Design Service” as “3D Modeling Service (3DMS)”. They are the same thing.) Once you’ve created a new project, you simply create a new design and then click the “Make a Request” button that pops up.    Then, just drag the green icon over the property and click the green “Request” button.   That’s it. Designs are ready in 3 hours (or less). You can check the progress of your designs either within the project, or in the Projects tab. And, unlike home remodeling projects, if a design isn’t up to your expectations, you can request a redesign or refund with a simple click. (Wish we could do that with our home-repairs contractor!) You can see more details about the process here. And that completes our series on the Top 10 Things You Didn’t Know Aurora Can Do. Thanks so much for reading, we hope you’ve learned a couple tricks to help each install become a little bit simpler, quicker, and more accurate.  Be sure to check out our dedicated 10 Things You Didn’t Know Aurora Can Do homepage to learn about the other things we’ve featured so far. Then schedule a live demo to learn more about how these features can help you produce more accurate solar designs.  ​​Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### 3 Ways to Close More Commercial Solar Deals With HelioScope Pro In today’s competitive marketplace, solar providers can’t afford any delays when going from first point of contact to getting that signature to start a project.  Yet, all over the world, commercial solar sales are held back by things like high turnaround times, slow communication among design and sales teams, and the inability for sales teams to quickly react to customer feedback. A lot of these problems stem from using multiple tools and outdated software, which can then cause a lack of continuity and inefficient processes. HelioScope Pro can help you revamp those ineffective workflows that cost your team time and money — and generate those 4 Ibuprofen headaches — and empower commercial sales teams to minimize inefficiencies, improve proposal accuracy, and ultimately close more deals.    Introducing HelioScope Pro HelioScope Pro is designed to deliver an all-in-one commercial solar sales experience.  HelioScope main screen with commercial design. “HelioScope software has been instrumental in the sales and marketing of our projects at the commercial level,” said Ra’Ed Arab of Quadra Solar. “The simulation part allowed us to expedite the design process to minutes instead of hours. With the new reporting tool, it closed the circle for both engineering and sales.” During a recent webinar, Aurora Solar Customer Success Manager Desmond Pressey detailed how HelioScope can help improve your commercial solar sales processes. In this blog we’ll look at three particularly impactful ways HelioScope Pro can help your sales teams close more deals right now.  Fully Integrated Lead to Close Experience From the initial contact to the final signature, HelioScope Pro packages the entire customer experience into one simple platform. This puts an end to disjointed workflows from having to switch between different software — design, CRM, Excel, etc. — for commercial projects.  HelioScope Pro lets you create and edit solar designs, and also build and customize financial templates, utility and incentive libraries, and sales proposals — you can go from site design and production simulation, to financial analysis and proposals all in one seamless process. HelioScope consumption and financial information. For example, HelioScope allows you to effortlessly compare between different designs and financial variables so you can come up with the best solution for each customer. This way you can compare and contrast different options with your customers, collaborating with them to come up with what works for them.  When weighing these design and financing options, HelioScope’s software combines bankable production simulations with financial analysis tools like a utility rate library, to ensure all calculations are as accurate as possible.    Sales teams can then visualize energy graphs and cash flow tables in real-time to help customers understand a potential system’s internal rate of return, net present value, levelized cost of energy, and more. And it can all be easily updated to integrate any customer feedback for design configuration or financing terms.  Beyond just finances, sales teams also have the option to highlight the environmental impact of a proposed design. This can be particularly important if a customer is specifically looking to meet emissions or sustainability goals.  Accelerated Design Optimizations What if, for example, a customer needs more energy production to meet their sustainability goals? These types of changes are no longer a serious engineering endeavor. When a design adjustment is necessary, HelioScope Pro allows sales teams to control every aspect of a proposed solar system directly in front of the customer — they can add new elements to a system with a few simple clicks.  Let’s take the example of trying to generate more electricity from a system by adding a new feature — a carport in this case.  This would traditionally require new schematics and financial calculations. But, HelioScope Pro makes it as simple as drawing an outline, adding the carport racking into the design, and adding variable costs for engineering and construction to the financial model. Everything is then automatically updated within the software.  The original design from above, with carports added to parking lot and panels removed from top roof. “The consumption, financials, and details of the projects are all right there, available in the proposal,” Desmond explained. “You don’t have to do any manual edits, and it’s all templated so that it updates automatically if anything in the design or analysis is altered.”  This means there’s a much lower likelihood of errors when changing a proposal, which empowers sales teams to confidently show how a different design or equipment options can change production, construction costs, and payback periods of a proposed system.  To seal the deal, an additional terms and conditions sheet can be added to the fully customizable proposal template to help customers move forward with a commitment without ever having to leave the platform.  Reduced Training Times   A big barrier for new sales reps in commercial solar sales is coming up to speed on all the different tools they need to do their job: design, financing, and lead management, just to name a few. HelioScope Pro puts all these areas — and more — in one package, so users can quickly become sales-ready. Of course, this doesn’t just help reduce training times while onboarding new employees, it empowers existing team members to close more deals. Now, when they’re in the field talking to prospective clients, sales teams have everything they need to meet and exceed customer expectations.   Want to learn more about Heliscope Pro?  Watch the entire webinar, check out another HelioScope webinar, sign up for a HelioScope trial, or reach out to our support team support@helioscope.com. ### Think You Can Sell Solar to Anyone? Read This. For the record, we are 100% pro Hawaiian pizza. No two customers are exactly the same. Whether you’re selling pizza or houses, what appeals to one person (Hawaiian pizza? Yum!) can be a real turn-off to another (Hot fruit on pizza? Disgusting!).  This is especially true for solar. What interests to one person doesn’t necessarily appeal to everyone. Cost savings, sticking it to the utility companies, looking for energy independence — these are all reasons that customers may want to go solar. To learn more about what makes solar customers tick, Aurora conducted on-on-one interviews with solar purchasers across the US. We found that while no two people or houses are the same, there are some common concerns and needs that potential customers have. We were able to group these customers into 5 categories based on how they view solar and why they purchased it:  The Lifelong Learner The Cost Saver The Cool Kid on the Block The Green Crusader The Independence Seeker Explore the full 5 Solar Buyers Experience here. Now, the names alone likely give you a hint of what each group is looking for, but it’s important to craft a pitch that will resonate with each.  Here are five strategies — one for each group — for making your pitch hit home with your buyer. To get more information, and learn more specifics, click here to visit our 5 Solar Buyers page. Lifelong Learner Lifelong Learners are genuinely curious about how things work. They want to look under the hood and understand the how and why behind their installation.  Pro Tip: Let them in Don’t just give them a complete, “perfect” design and expect them to sign. Instead, show them the performance simulations, shade reports, and irradiance modeling you’re running. Take them behind the curtain and let them see how you came to that design. Ask them questions, let them ask you questions. They’ll appreciate the transparency and will feel more like a teammate and co-designer than simply a customer you’re looking to sell to and move on. Cost Saver Well, this one is pretty straightforward… The cost saver is into solar to save money above all else. Sure, the environmental benefits are nice, but you’re going to have to prove real ROI to get these consumers on board. Pro Tip: Show them the monthly The total costs of a solar installation can seem a bit daunting. We know it all works out in the end, but seeing a $10,000 bill all at once can scare a Cost Saver away. It can be helpful, then, to focus on “cost per month” instead of lifetime costs. With monthly subscriptions for everything from streaming services to meal boxes, customers are used to looking at finances on a monthly basis. Showing them how much a solar system can knock off their monthly electric bill — or even zero it out in some months — shows immediate value and helps avoid the dreaded “sticker shock”. (The screenshot below is from Sales Mode's monthly bill estimate functionality.) The Cool Kid on the Block Cool Kids on the Block want their house to exude style. These homeowners are concerned about the overall aesthetics of their home, and solar needs to fit that aesthetic.  Pro Tip: Looks are everything To the Cool Kid, the specifics matter. Where will the panels be placed on their roof? Are the panels black or blueish?  For example, one person in our research said, “The expectation I had was the panels were going to have that rainbow reflective sheen, but they did a good job installing the panels so that you can't see them from the ground at all.” Let the Cool Kid work with you to determine where panels will look best, and consider focusing on higher end solar panels that have a modern feel. Tools like Sales Mode — which lets you do things like add and remove panels right in front of the customer— enable you to work together with the customer, in real-time, to determine what looks best to them. Green Crusader Green Crusaders have the environment in their mind with most decisions they make. They care about improving the planet and making a difference more than other factors. Pro Tip: Don’t focus on price You read that right, don’t focus on price. Of course, cost is always a consideration, but with the Green Crusader, solar is about more than cost and payback. So, focus less on payback periods and financial modeling, and more on the environmental benefits and energy offset. They’ll want the receipts, too. So, quantify their impact by showing them exactly how much they’ll be helping the planet by going solar by using Sales Mode’s environmental calculations page. Independence Seeker What about people that aren’t necessarily driven by the environment or cost savings? Introducing: Independence Seekers. These customers are looking for energy independence and security over other factors. Pro Tip: Speak their language A main driver for Independence Seekers considering solar, and likely storage, is to help them on their path towards energy independence. They’re interested in how solar can help them reach their independence goals, and are willing to spend the money if it means peace of mind. To help them on this path, and increase your chances of closing the deal, keep their independence in mind — using terms like, “Days you can go without power” and “the amount of hours you’ll be okay in the event of a power outage.” Independence also means storage, and accurate modeling of how it works. To avoid the potential sticker shock, be sure to frame the added cost in monthly terms. These pro tips are a great start towards tailoring your pitch to what individual customers are looking for.  To learn more, be sure to visit the full 5 Solar Buyers experience. Beyond these strategies, it provides visual mapping of each customer’s motivations, more pro tips and sales tactics, plus a complete guide to each buyer and their needs.  Pizza photo by Fernando Andrade. ### Solar Sales Masters: The "We're Concerned About Roof Damage" Objection Any time you get work done on your house, there’s a chance something will go wrong. It’s rare, but it’s just a fact of life — whether you’re getting new floors or, yes, getting a solar system installed. So, however uncommon it may be, some potential customers will have heard at least one solar panel horror story. Knowing this, salespeople have to come prepared with a plan for dealing with homeowners who have this concern.  For the Solar Sales Objections Handbook, we asked five industry experts what they do when faced with this sales objection. They emphasized things like weather resistance, minimally invasive racking techniques, and your company's reputation can help. Add that professionally installed solar panels rarely cause damage, and in the unlikely event of an accident, roof penetration warranties can fill the gap.  Click above to download the full Solar Sales Objections Handbook. The Objection: We’re Concerned about Roof Damage “I just put a new roof on the house, so I don’t want to void my roof warranty. I understand you offer a warranty too, but it doesn’t cover as much as what my current one does.”  Address the System and Roof Penetration Warranty  Many homeowners are concerned that installing solar panels can void their roof warranty. Thankfully, much like how solar energy supplements utility electricity, a solar system’s warranty can also work alongside an existing roof guarantee.  To address the idea of roof warranties, “Solar Joe” Mousakheel, CRO of The Solar Academy, emphasized the need to assure the homeowner that their assets will be protected.   “If a homeowner is bringing this objection up, there's a reason for it: They must really love their new roof. A roof is the last project a homeowner usually wants to do on their house, so once they put it on there, they want to take care of it. So it’s really important to help them understand that the roof will still be protected afterward.” Nearly every panelist introduced the idea of a roof penetration warranty. If a roof’s warranty is voided, a roof penetration warranty will cover any damages where the solar energy system punctures or pierces the roof.   Lily Valdez, co-founder of Women United by Solar, favored a direct, simple approach:  “Your new roof has its warranty as is. And where we put the solar, my company provides a 30-year warranty for parts, labor, shipping, and roof penetrations.”  While every solar company can’t offer a 30-year performance and workmanship warranty, 10, 20, and 25-year periods are very common in the industry. Knowing this, Ashleigh Tatarcyk, owner of Urban Sol Energy, explains to the customer that a solar energy system’s guarantee will likely outlive the protection period on a new roof. “You’re correct, most roof warranties will void where we are touching on the roof, but the really great thing about working with us is that we've got a 25-year penetration warranty. Most roof warranty contracts are about 5 years, so we’re actually going to extend that warranty. Anywhere that we’re touching on your roof, you’re being covered for longer than where we don’t touch.” Explain your racking process in as much detail as the customer needs. Explain Your Racking Method In-Depth Even if a homeowner’s new roof is covered by a penetration warranty, they can still have concerns about possible damage and headaches that could have been avoided by not getting solar.  Modern racking methods are so good, though, that they generally make these concerns obsolete. The key is making sure you educate the customer. Jake Hess, founder of The Solar Academy, explained that most homeowners are simply afraid of the unknown.  “Homeowners usually aren’t roofers, and they don’t know everything about it, but they do have the fear that holes are going in their roof. So I try to help them understand a little more about what the mounting process looks like.”  By explaining a racking method in-depth, potential customers are more likely to feel at ease with an expert installation. Here, Lily turns to video to give the homeowner a comprehensive look at how the solar will be installed.   “We don’t drill directly into your home, we actually use flashings. We have a little video here to show you exactly how that’s done.” After giving his detailed explanation of the minimally invasive racking system and waterproofing process, Jake says that it’s important to let the homeowner know what’s at stake for your solar company if something were to go wrong: If there’s damage to a homeowner’s roof, there’s likely at least as much damage to the installer’s reputation.   “What we installers have to lose is our entire reputation, for everyone in this city, if your roof leaks. Everybody looks at reviews, so if they see that your roof leaks after you’ve told the world you’re using our company to go solar, that’s going to hurt our business a lot.” Remember: Solar Panels Actually Protect Roofs One thing that can often get lost among the warranties and company guarantees is that solar panels actually provide physical protection for roofs. Solar Joe described it like this: “Solar panels are also a roof shield. This installation is going to protect your new roof in the future, it’ll protect it from sunshine, rain, hail, and will help your roof last even longer.”  Ashleigh drove home the point.      “The panels are actually acting as a protector. Instead of hail, or wind, or snow, or heat touching your roof, it's now touching your panels, which have gone through rigorous weather testing.”  Emphasize that Now is the Best Time to Install Solar Finally, for anyone interested in solar energy, right after installing a new roof is the perfect time. When panels are installed midway through the lifespan of a roof, there may be extra work required if the roof needs to be replaced.   As Solar Joe put it:  “Some homeowners wish they had a new roof to put solar on. That’s actually the best time to put solar on, when you have a new roof.” With the original objection now turned on its head, James Ramos, founder of the Solar YOUniversity, circles back to savings can help close the deal. This is where solutions like Sales Mode can help drive these savings home. In Closing… In the end, a homeowner concerned about voided warranties or roof damages can represent more of a green light than a stopping point.   With added weather resistance, minimally invasive racking techniques, and a company’s reputation on the line, professionally installed solar panels will very rarely cause damages or leaks. And in the unlikely event of an accident, homeowners can rest easy knowing their investment is protected by a roof penetration warranty.  See what the experts have to say on other common solar objections: We Need Another Quote We’re Retired and On a Budget We’re Concerned About Damage to the Roof We're Planning to Move Soon We’d Rather Use the Money for Other Investments   Want to learn more? Check out the Solar Sales Objections Handbook. Click above to download the full Solar Sales Objections Handbook. Featured image by Verstappen Photography. ### Solar Sales Masters: The "We’re Retired and on a Budget" Objection If you have ever been in solar sales, then you’ve probably met a few retired homeowners. A common trope is that many retirees aren’t keen on the idea of solar because it’s a long-term investment. But, this isn’t necessarily the case. People of retirement age are just like anyone else — they’re interested in learning new things, helping the environment, and, yes, saving money. So, how do you explain to a person or couple how and why solar energy can be a good option for them?  To explore how to best sell to retirees, let’s take some lessons from the Solar Sales Objections Handbook. The Handbook features five industry sales experts dismantling a handful of common solar sales objections.  Click above to download the full Solar Sales Objections Handbook. Using their expert advice, this blog will outline the best things to say when working with a retired homeowner on a tight budget.  The Objection: We’re Retired and on a Budget “We’re on a tight budget now that we’re retired, plus I don’t think we’ll even be alive anymore by the time the solar is paid off.” Obviously, whenever any investment is put in the context of life or death, it can quickly become a sensitive issue. Thankfully, if a homeowner has expressed interest in solar energy, they still may be able to reap its benefits, regardless of their age and income.  Save Now With Financed Solar Systems Calculating savings per month can be a powerful selling point. To kick things off, James Ramos, the founder of Solar Youniversity, addressed the misconception that solar can only work as a long-term purchase. With no money down, a financed solar energy system may actually provide financial relief for homeowners because they are able to lock in low, fixed rates.     “If you’re looking to save money now, this is actually a great way to do it.”  Addressing the uncertainty that surrounds the utility bills, Lily Valdez, the co-founder of Women United by Solar, shared a similar sentiment.  “Well, that’s why solar makes even more sense for you. As you said, you’re retired and you’re on a fixed budget. You want your bills to be the same every month, right?”  A good way to overcome this objection is by showing the stability of solar against existing monthly energy costs and rising electricity rates, Lily explained.  “All we're doing is taking a bill that you are already paying every single month — and goes up on average 4-5% per year — and giving you a fixed price point that will never go up with zero money down out of pocket.”  “Solar Joe” Mousakheel, CRO of The Solar Academy, presented a great way to explain the short-term benefits of fixed monthly costs.  “If the electric company were to call you right now and say, ‘You have been such amazing clients for the last 20-30 years, we decided to lock in your current rates for the rest of your life.’ What would you do? And they always say, ‘Yeah, why wouldn’t I do that?’” Tools like Sales Mode can help you present this information to homeowners in a way that anyone can easily understand, and lets you adjust on the fly if they change their mind. Sell Solar As an Asset Present solar as the asset that it is. In addition to locked-in electricity rates, looking at a solar energy system as an asset is another important financial incentive to present. If an interested homeowner is worried about the solar panels outliving themselves, then you can start a conversation about their post mortem plans for the property.  James explained how to present solar as an asset to someone later in life:  “Most of the time, the kids will inherit the property. So you can say, ‘Hey, well that’s great. You’re actually also increasing the value of your home.’”  Although it’s not always a guarantee, homes with solar energy tend to sell both faster and for more money. By increasing the home’s value, property heirs can then choose to live in a home with fixed electricity bills or sell it at a higher price.  To put it simply, Solar Joe explained that as an asset, solar savings will only continue to increase for future owners of the property.  “Don’t think of this as a liability, think of this as an asset. Our goal is to save you money on day one and save you more and more going into the future, adding another asset to your home. And remember, electricity rates are not going down.” No One Can Predict the Future Remind homeowners why they wanted to go solar in the first place. Solar Joe acknowledges that retired individuals have experienced a lot and may be quick to dismiss anyone that tries the hard sell on them. Instead, he relies on empathy (which you can read more about in part 1 of this series, “We need to get another quote”) to bring the conversation to a personal note. “You or I may not be alive in a few years, then what’s gonna happen? Your spouse is going to be protected. You’re helping them, you’re saving them so that if something does happen now you can feel good knowing that they’re protected into the future." Or, Pivot to Referral Sales  Lastly, there are plenty of retired people that can’t financially benefit from a new solar energy installation. Even if a house has perfect sun positioning and electricity rates in the area are high, retirees are less likely to qualify for income tax credits designed to lower solar adoption costs.   When solar just won’t work, Ashleigh Tatarcyk, Owner of Urban Sol Energy, explained that anyone interested in the technology may know someone who can reap its benefits.  “If somebody is 85 years old and they are not paying any federal taxes, when solar will add 20 or 30 dollars to their bill I will be honest. ‘I don’t think solar is a good fit for you right now, but I do think it's really great for your friends and family.’”  By enrolling retirees into an ambassador program, you can still help those late in life earn cash for every person they refer to your company that decides to go solar.  Click above to download the full Solar Sales Objections Handbook. In Closing… In the end, it’s up to you to assess the situation and do what’s right for the homeowner and their property.  Solar can present an opportunity to combat rising utility costs and replace variable bills with locked-in monthly payments. It can also increase the value of their property for the next generation — or themselves. And if they aren’t great candidates for solar? Remember, a good experience and honest assessment can lead to referrals for years to come.   See what the experts have to say on other common solar objections: We Need Another Quote We’re Retired and On a Budget We're Concerned About Damage to the Roof Planning to Move Soon We’d Rather Use the Money for Other Investments   Want to learn more? Check out the full Solar Sales Objections Handbook. Featured image by Photo by Ryan Quintal. ### California’s New Smart Inverter Requirements: What “Rule 21” Means for Solar Design Editor’s note: This article was updated in January 2022, and originally published in September 2019, to reflect California’s passage of SB100 which sets a target of sourcing 100% of the state’s electricity from clean energy by 2045. In the fall of 2017, California became the first U.S. state to require the use of advanced, or “smart,” inverters in solar projects (and other forms of distributed electricity generation). These changes, implemented through updates to “Rule 21,” require that inverters have certain capabilities to help ensure proper operation of the electric grid as more and more renewables are connected. While these requirements are specific to California for now, the changes are representative of approaches other states are likely to consider in the future. So, if you’re a solar professional, it’s a good idea to get familiar with these changes no matter where you’re based. In today’s post, we explain the new inverter requirements under Rule 21 and what they mean. What are Smart Inverters? The inverter converts direct current into alternating current and is what allows the energy generated by the photovoltaic installation to be used. It monitors the performance of the solar modules, values, ​​and important parameters of the network and thus guarantees high performance and the safety of the photovoltaic installation. Smart inverters are the ideal complement to smart homes, and their power backup feature allows them to remain self-sufficient, even in the event of a power failure. This technology embodies sustainability in its inverters, which are manufactured with the highest levels of responsibility and environmental awareness. Why Are These Changes Being Implemented? The significant expansion of solar and other renewable energy sources is a huge opportunity — for tackling climate change, improving public health, delivering cost savings to consumers, and much more. However, it also presents new challenges for the management of the electric grid, which was originally built for one-way flows of power from power plants to the grid and then to consumers. Customer-sited “distributed energy resources” (DERs) — like solar — introduce two-way power flow, as systems feed excess energy back to the grid.  “The variable nature of energy sources like wind and solar, which fluctuate depending on weather conditions, adds additional complications for grid managers.” California has led the nation in the deployment of solar and is likely to continue as the state works toward achieving its target of sourcing 100% of its electricity from renewable sources by 2045. As the proportion of renewables reaches unprecedented levels, there is a need for grid operators to have additional tools at their disposal to manage these resources and keep the grid running smoothly. As the “brains” of solar projects, inverters can support grid management, but to date regulations have prevented the use of the full range of inverter capabilities. Smart inverters, now mandated under California’s Rule 21, can help support management of the electric grid. Beginning a few years ago, California utilities warned that advanced inverter capabilities would be needed to avoid potential grid disruptions. With more nuanced capabilities for determining when and how solar systems disconnect from and reconnect to the grid in the case of a power outage or other disturbance, smart inverters can help ensure that solar and other DER systems don’t make grid disturbances worse. For instance, during and after a disruption on the grid, variations in voltage and frequency may occur. Historically, PV systems have been required to immediately disconnect when these conditions are detected; however, if a large amount of DER capacity disconnects at once this could further destabilize the grid. Similarly, the grid could be stressed if many solar installations reconnect to the grid at once after an outage, or increase their power output at too steep a rate. Smart inverter functions allow systems to remain connected to the grid under a wider range of voltage and frequency levels. Value of Requiring Rule 21 Changes Requiring these changes now also has cost-saving benefits, because they may prevent the need for costly retrofits to the inverter fleet. These issues — both grid instability and the need for expensive inverter retrofits — occurred in Germany, where solar capacity expanded very rapidly over the span of ten years. Beyond preventing grid disruptions, the use of advanced inverter functions has the potential to improve the stability of the grid. For example, dynamic volt/var operations (also called dynamic reactive power compensation) of smart inverters allow systems to help counteract voltage deviations on the grid. Furthermore, eventually, remote communication capabilities will be rolled out that allow grid operators to remotely adjust the operation of inverters to support the grid. The Smart Electric Power Association and the Electric Power Research Institute note that smart inverters may be one of the most cost-effective mechanisms for addressing many grid management challenges, and in some cases, “could help defer or avoid certain distribution, transmission, and electric supply upgrades.” Craig Lewis, Executive Director of the Clean Coalition, a nonprofit that works to accelerate the transition to renewable energy and a modern grid, notes that “enabling the full suite of advanced inverter functionality is essential to bring high-levels of distributed generation online quickly and cost-effectively–in California and every other leading market around the world.” On September 9, 2017, new requirements for inverters used in solar projects came into effect in California. These changes were implemented by the California Public Utilities Commission through significant updates to its Electric Tariff Rule 21 (or “Rule 21”), a set of existing interconnection requirements. What’s Changing Under Rule 21? The revisions to Rule 21 are being implemented in three phases. Phase One, which went into effect on September 9, 2017, requires that any solar project which applies for interconnection to the grid must use an advanced inverter capable of performing seven autonomous grid support functions. Inverters that are eligible for use under Rule 21 are those that have been tested and certified under the new UL testing protocol known as UL 1741 Supplement A (SA). A complete list of eligible inverters can be found on the California Energy Commission (CEC) website. The list — which is updated monthly — contains over 3,200 eligible inverters. One of the main changes under UL 1741-SA is that inverters are now allowed to operate under a wider range of voltage and frequency levels. As Solar Power World explains, under the previous testing protocol, UL 1741, “the old interconnection requirements only allowed inverters to operate within a narrow range of… frequency and voltage requirements.” This meant that the use of many commercially available inverter functions, including those that offer grid support benefits, was prevented. Phase Two establishes communication requirements for inverters, setting standards for how inverters communicate with each other and utility systems. This is important for enabling grid managers to eventually make remote adjustments to inverter operations to keep the grid running smoothly. Phase Two requires that inverters have the capacity to communicate over the internet. (However, internet connections for solar systems are not required at this stage, because it has not yet been determined whether utilities or solar customers will be responsible for paying for internet connections.) Phase Two went into effect in June of 2020, as well as part of Phase Three, so be on the lookout for the communication requirements that come with that. Finally, Phase Three requires additional advanced inverter functions, “like data monitoring, remote connection and disconnection, and maximum power controls.” The specific requirements and timing of this phase have not yet been implemented. How to Comply with Rule 21 To comply with the current phase of Rule 21, the main thing you need to know is that the inverter you select for your solar design must be one that has been certified under UL 1741-SA; consult the CEC database to be sure. After choosing a certified inverter, some setup may be required to ensure that the inverter operates under the default parameters of Rule 21. As Solar Power World explains, the necessary settings can be determined during the interconnection process with the local utility and set up either remotely or through the inverter interface. Coming Soon to a State Near You? While California is the first state to take these steps, as a solar contractor it’s a good idea to be aware of these changes wherever you work, because other states are likely to be considering similar moves in the future. Hawaii, Nevada, Arizona, Vermont, and Massachusetts are among states that may soon follow California’s lead. Quoted in Solar Power World, John Drummond, applications engineer at inverter company Chint Power Systems, says his company “expect[s] these kinds of advanced inverter functions to be required in the entire country in the next few years.” As we work towards a future where clean, renewable energy is the norm, smart inverters will play an important role in managing the modern grid. We hope this article has given you a better understanding of how regulations are changing to manage rising levels of renewable energy and the details of Rule 21’s relatively new inverter requirements for solar systems in California. What Should Contractors Do to Keep Up with Rule 21? We recommend looking into the details of Rule 21 with your engineering team and other company stakeholders to make sure that you comply with the phases that are already in effect and those that are coming into effect in the coming years.  Here are some great resources for you to review: The CPUC’s (California public utilities commission) official documentation for Rule 21 BayWa r.e. has a great guide on Rule 21 and outlines when IEEE standards are expected to be adopted by other states  An interesting article from CALSSA (California solar storage association) on how the proposed NEM-3 decision would affect solar and battery storage in California (Note: This blog has more information on how you can help fight for solar in California.) Rule 21 is an added piece that the solar industry hasn’t had to manage before. But, it makes sense, will help with changes to the grid, and is a positive sign that residential solar energy will continue to mature as part of the regional and national energy networks. ### Top 10 Things You Didn't Know Aurora Can Do: #3 — Compare Production Between Aurora and PVWatts When you’re making a big decision, an important part of the process is getting a second opinion. Whether it’s making a healthcare decision or buying a car, having as much information as possible is key to making an informed choice. This is especially true when designing a solar installation.  Depending on the simulation engine you use, a solar installation’s estimated output can change by 5-10% — based on things like assumptions on system losses, to the weather data files they use.  So, while one model may show results that are marginal for solar, another might give it a 10% bump, making the install a no-brainer. Likewise, if one model’s estimate seems especially high, another may be 10% lower. In Aurora, you can model using our own simulation engine or PVWatts.  Why Being Able to Compare Aurora and PVWatts is Important PVWatts is more than just another modeling tool, of course. It is developed by the National Renewable Energy Laboratory (NREL), available for free online, and aimed at homeowners. It’s also the first organic search result in Google for terms like “solar energy calculator”. All of this means that it’s likely that educated customers will have entered their info into the calculator before meeting with any installer, and a likely objection you’ll hear is, “This estimate doesn’t match up with my research.”   You’d better be ready to address this objection. That’s where Aurora comes in. How Aurora Helps By default, Aurora creates performance simulations through Aurora's simulation engine. But, to get that second opinion, you can easily change your settings to create a simulation using PVWatts.  You don’t have to completely re-do your model, you don’t have to try some hasty calculations on the back of an envelope. How to Compare Production With PVWatts in Aurora From the main Aurora design, simply click the gear icon in the upper right corner (in the red rectangle in the screenshot below). You’ll then be shown a page that lets you select either Aurora or PVWatts as the simulation engine. Click "Done" and then “Simulate” (in the top right corner of the first screenshot) and you’re done. If you want to go back to the Aurora values, just repeat the process and select “Aurora” from the drop down. Now you’re ready for any production questions that the consumer may have.  (A quick note: You probably noticed the “Auto” option from the simulation dropdown. Auto is simply the default simulation engine. If a user uses modules and inverter[s] it defaults to Aurora’s engine, but if they use only modules it defaults to PVWatts’. You can learn more here.) Click the links to learn more about Aurora’s simulation engine, and PVWatts. We hope you’ve had a great start to 2022. We’ll be back next week with feature #2. In the meantime, be sure to check out our dedicated 10 Things You Didn’t Know Aurora Can Do homepage to learn about the other things we’ve featured so far. Then schedule a live demo to learn more about how these features can help you produce more accurate solar designs.  ​​Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### California Solar Storage Incentives For 2022 and Beyond If you live in California and are thinking about adding an energy storage system to your home or business, you’re in luck. The state is home to one of the few (and longest-running) energy storage incentive programs in the country.  Whether you’re looking for peace of mind, to lower your monthly utility bill, or something else, there are two primary storage incentives that can help make installing batteries more affordable: the Self-Generation Incentive Program (SGIP) and the Federal Solar Investment Tax Credit (ITC). Let’s look at how these energy storage incentives work, who is eligible, and more. California’s Self-Generation Incentive Program The California Self-Generation Incentive Program is recognized as one of the best incentives for solar storage. It offers financial incentives to support the installation of existing and emerging clean technologies, including energy storage, waste heat to power technologies, and microturbines. SGIP was created through Assembly Bill 970 in response to the state’s energy crisis back in 2001. Since then, the program has undergone many modifications and extensions, with the most recent change under Senate Bill 700 in 2018. The California Public Utilities Commission (CPUC) officially administers the program, with a budget that has been expanded to $800 million through 2024 (bringing the grand total up to $1 billion in available funding). The bulk of this money is allocated to the newly created Equity and Equity Resiliency budgets, with about $60 million dedicated to general residential energy storage projects. Who Is Eligible for SGIP? SGIP is funded by and available to ratepayers of Pacific Gas & Electric (PGE), San Diego Gas & Electric (SDGE), Southern California Gas Company (SoCalGas), and Southern California Edison (SCE). The program has three separate eligibility tiers (general market, equity, and equity resiliency), and each tier has its own eligibility requirements. General Market Tier The general market tier is based on storage system size and works on a graduated schedule, i.e. the rebate amount will depend on the size of the storage system and when the rebate is submitted. As the kilowatt-hour (kWh) capacity of the battery increases, so too does the rebate amount. Currently, there are two remaining levels (Steps 6 and 7) for small-scale residential storage projects. Utilities at Step 6 are offering $200 per kWh of rebate funding per battery. When all four utilities move to Step 7, the general market tier rebate will drop to $150 per kWh. Equity Tier This category was created to help make energy storage solutions more affordable for low-income, indigenous, and underrepresented communities. Under this tier, eligible SGIP applicants qualify for an $850/kWh rebate. For a $10,000, 10 kWh residential storage system, the equity rebate could cover as much as 85% of cost, bringing the new total closer to $1,500. Equity Resiliency Tier The equity resiliency category was designed for those who might be directly impacted by California’s worsening wildfires. More specifically, this tier is targeted towards homeowners who are classified as “medically vulnerable,” live in “fire danger zones,” or have experienced 2+ utility-scale Public Safety Power Shutoffs (PSPS). (Click here for more information.) Eligible applicants for this tier qualify for up to $1,000/kWh in rebates. For a $10,000, 10 kWh storage system, it could cover the entire cost. To see the most recent incentive rates offered by your local utility provider, visit SGIP’s official Program Metrics page. How to Apply for California’s Self-Generation Incentive Program SGIP is designed as a reimbursement, with homeowners and businesses required to cover the full cost of their energy storage systems upfront before applying for the program. Many installers help customers navigate the paperwork, and may even cover the upfront cost of these installations for their customers and recoup these expenses once the SGIP rebate goes through. To get more details or double check the program status, check with your local utility, and talk with your installer.  The Federal Investment Tax Credit If you’re installing solar and storage at the same time, you can take advantage of the Federal Investment Tax Credit (ITC). Under the ITC, you can recoup 26% of the total cost of your clean energy investment (panels and storage included) through a deduction in your federal taxes (tax liability). This means that if your solar and storage system combined cost $20,000, you qualify for a $5,200 credit that you can use to pay off your next tax bill. Learn more about how to use the ITC for storage here. The ITC has a step down schedule that was extended in late 2020. It keeps the residential system credit at 26% through 2022 before stepping down to 22% in 2023.  The bottom line? The ITC can be combined with SGIP to deliver some truly massive savings for anyone interested in going solar with storage. Want to learn more? Check out our Beginner's Guide to Solar Financial Incentives.  If you're an installer, download The Pocket Guide to Selling Storage to get tips on how to add storage to your pitch.     ### Solar Policy, Sales, and Basics: 15 Resources to Get 2022 Started Right Congratulations, we made it: We're (finally) putting 2021 in our rearview. To get ready for 2022, we pulled together 15 quick resources to help get the year off to a quick start. From policy, to sales, to the basics, these resources will help you come out of the holiday break refreshed, and ready to install even more solar this year. Solar Policy One of the biggest things the solar industry is facing in 2022, and beyond, will be the final decision from the California Public Utility Commission (CPUC) on the new net energy metering (NEM) rules for California. The whole country will be watching, and the first proposal was… less than ideal for installers and consumers alike. So, for early 2022, it’s important to not just sit on the sidelines. Get involved and make sure this doesn’t stand. If you read one thing today, make it this summary of CPUC’s initial NEM-3 — AKA “Net Billing tariff” — proposal. It lays out what the proposal entails, what it means for the California solar market, and what you can do to show your support for solar. Staying in the Golden State, here are 7 California Solar Incentives You Need to Know in 2021 — and Beyond. For a frank, passionate, extremely informative discussion of just what’s at stake, check out The Crucial Fight for NEM: Defining the Stakes, and watch the accompanying video. And here are some other NEM and policy resources to review so you’re ready for 2022. Finally, we’re almost at the one-year anniversary of the Texas storm and blackout disaster. It’s important that we don’t forget how this happened, and learn how the solar industry can help prevent future events like this. Bonus: Learn more about how California NEM changes could affect your business. Solar Sales The new year is a great time to make sure your sales game is on point. Whether you’re just getting started, or you have an established business and are looking to close more deals, updating your sales processes and techniques — from pitch to proposal — is an important way to stay competitive. Handling customer objections is a key part of selling anything, especially solar. Get some tips on turning objections to your advantage with these 4 Homeowner Questions (and Answers) to Help You Close More Solar Deals. Next, dive deep into perhaps the most common objection, cost, with Sticker Shock: Resources to Help Prospects Navigate One of the Biggest Solar Adoption Barriers. Of course, solar sales isn’t all about the out-front pitch. There’s a lot you can do behind the scenes to improve your close rate. Improving and automating your sales workflows is a great place to start.  Finally, to get ahead in this increasingly competitive market, it’s critical that you use all the best tools available. Check out how Sales Mode can help you close more sales, more quickly. Bonus: Level up your remote sales program and get tips and tricks on selling storage with our Ultimate Solar Sales Bundle. Solar Basics New to solar? Just looking to brush up? To close out this blog, here are five resources from 2021 to help you get up to speed, or stay in the fast lane. First, you need to know the concepts, like key solar energy measurement terms, and what AC and DC disconnects are and why you need to use them.  Then, review the difference between kilowatts and kilowatt-hours in a way that your customers can easily understand. Of course, at the heart of solar energy generation is the solar panel. Refresh your knowledge with this guide to solar panel efficiency, then check out everything you need to know about PERC solar cells. Bonus: Learn what you need when you’re choosing a solar software solution for your business. With that, here's to a sunny 2022. We look forward to helping you get more panels on roofs (and in other places) in the coming year.  Featured image by Derek Sutton. ### UPDATED — Where net energy metering stands: NEM resources & updates April, 2023 UPDATE The Net Billing Tariff — commonly known as NEM 3.0 — has taken effect. Please visit our NEM 3.0 resource page all the latest information. Here are some quick links for further reading: How to sell solar in 2023 despite NEM 3.0 California Net Billing Tariff (NEM 3.0): frequently asked questions Should your PV systems face west with California's Net Billing Tariff? Explaining and modeling California's Net Billing Tariff (NEM 3.0) Contact us to quickly run through any additional questions Click above to learn more about selling solar under NEM 3.0. Original blog below Despite its many benefits, net energy metering (NEM) programs have become a battleground issue in many states. When the California Public Utilities Commission (CPUC) released its proposal for modifying net metering in California, the so-called "Net Billing Tariff", to say it favors the utility companies at the expense of  solar consumers — especially working- and middle-class customers — would've been an understatement.  We posted a blog with more of the details and some things you can do to help make sure this proposal doesn't become the law. These Aurora resources explore what changes to NEM have occurred in a few states, why dismantling NEM runs counter to public interest, and other state-led energy assistance programs to assist in the continued adoption of solar power.  The Crucial Fight for Net Energy Metering: Defining the Stakes Roughly 40 states have mandated net energy metering (NEM) programs or other methods to compensate consumers for the excess solar energy they generate. And while the benefits of net energy metering are almost too vast to count, investor-owned utilities (IOUs) across the U.S. have been working to dismantle NEM and to stifle competition. In this article, we work to answer why NEM has become so contentious, and ways we can help save solar’s growth and jobs. Read on.  How Virtual Net Metering Opens New Markets of Solar Customers Residential solar has grown dramatically over the last decade, making the benefits of lower electric bills and cleaner energy significantly more accessible. In fact, the annual growth in residential solar installations has averaged 68% over the last 10 years according to the Interstate Renewable Energy Council (IREC). In addition to the falling cost of solar components, this growth has to a large extent been driven by the development of policies and financing approaches that enable cost-effective projects. To date, however, policies for residential solar, like net metering, have predominantly focused on supporting solar for homeowners, leaving renters and other potential solar customers limited options for accessing the benefits of solar energy. And for solar contractors, this means a large portion of the potential market has been closed. Virtual net metering, which extends net metering to customers who do not share the same meter as a solar installation, has great potential to make cost-effective solar energy accessible to other portions of the residential market. Read more to learn how virtual net metering (VNEM) works and the potential for this emerging market.  Solar Export Credits in Utah: What the Changes Mean for Installers Rocky Mountain Power in Utah is one of the utilities that offers a NEM alternative in their transitional tariff. Rather than compensating solar production at the full retail rate (typically 8.8 – 11 cents per kWh for residential customers), owners would get paid a flat 9.2 cents per kWh for their exports. This was a fair deal for a while as it was pretty close to the retail rate. At the end of October 2020, Utah’s Public Service Commission (PSC) granted a Rocky Mountain Power request to reduce that export credit from 9.2 cents per kWh down to 5.6-5.9 cents per kWh, seasonally adjusted. This change is applied to new customers going forward – those with existing systems will still continue to enjoy a fair export rate. In this article, we’ll crunch the numbers to see if solar is still feasible in the beehive state. DTE’s Net Metering in Michigan & Design Tips to Maximize Solar Value This article quantifies the impacts of Michigan’s 2019 DTE net metering replacement policy. We’ll use a case study of a typical home and analyze DTE’s impacts for customers at different levels of energy usage and solar offset. This article also includes some solar design guidance to help you maximize the value for your solar customers in DTE territory. Read more.  ### Top 10 Things You Didn't Know Aurora Can Do: #4 — Export DXF Files Finding ways to streamline and improve your processes is a key way to help your solar business grow efficiently. And we all know there are plenty of processes in a solar project that can be improved and automated. One great approach for streamlining your project workflows — as they move from an initial sales engineer’s design, to a final, permit-ready plan — is making sure that your products play nicely with each other. And a key element of that is making sure that your design programs can export DXF files. As solar industry vets know, by exporting preliminary designs as DXF files, a designer can make any needed tweaks in AutoCAD (or another CAD program) and get to a final design quickly and easily. As a bonus, a DXF just needs a few additional touch-ups (i.e. a title block and some annotation) to be turned into a site plan for a permit set.  So, DXF files not only help you streamline your design workflow, but also your permitting process.  Why Being Able to Export DXF Files is Important It’s pretty simple: Since DXF files are so critical in helping design engineers complete projects and get them permitted, you also need an easy way to quickly generate DXF files and get them in designers’ hands.  How Aurora Helps Aurora provides an easy-to-use interface that lets sales engineers export their designs as DXF files with the click of a button. Then, design engineers can simply import them from there into whatever CAD program they use. How to Export DXF Files in Aurora To export DXF files from Aurora, you just click the “Export” button in the upper right of the screen, and choose “DXF”. That’s it. Check out our help center to learn more about exporting and importing DXF files. Want to see exporting DXF files in action? Click here for a demo We’ll be back next year with features 3 through 1. In the meantime, have a happy New Year, and be sure to check out our dedicated 10 Things You Didn’t Know Aurora Can Do homepage to learn about the other things we’ve featured so far. Then schedule a live demo to learn more about how these features can help you produce more accurate solar designs.    ​​Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### How to Close More Solar Sales — More Quickly — With Sales Mode When selling solar, an educated, engaged homeowner is one of your best weapons. A salesperson that can provide a detailed, yet easy-to-understand proposal — tailored for that specific customer — is more likely to close, and close quickly. “The customer experience is really important when it comes to solar sales, it is what separates a good or a great solar company from a not so great solar company,” Bogdan Zlatkov, Content Marketing Manager of Aurora Solar, said in a recent webinar. “And it tends to matter a lot more than we think it does.” After all, by providing a great experience, a company is less likely to collect unfavorable reviews and more likely to be recommended by the customer to a friend. This is incredibly critical for growing a solar business, especially as, according to a survey by Green Tech Media, 80% of solar buyers go on to make referrals after purchasing solar.  With traditional tools, this is easier said than done. This is where Sales Mode comes in. Sales Mode lets sales teams deliver customizable, customer-friendly proposals to homeowners, while the rep is in the room.   In this blog, we’ll highlight how Sales Mode can help reps educate the customer, address their objections, and achieve that elusive one-call close. Click above to watch the webinar. Address Homeowner Objections in Real-Time Of course, while walking potential customers towards a solar purchase, most homeowners are likely to ask questions and object to things that seem unclear. We know that a sales rep’s ability to confidently and correctly answer customer questions and objections is critical to closing a deal. In fact, data from the Modernize Home Services Survey tells us that the top 3 reasons homeowners hesitate before purchasing with a solar company are: Lack of communication (23%) Lack of expertise (21%) Unclear and confusing quotes (20%) Sales Mode allows solar reps to demonstrate their expertise with a clear run-through of every aspect of the system before laying out all of the details in an easy-to-understand quote.  Answers to Common Objections  There are a couple very common objections that come up in most solar sales that Sales mode can help answer. Like with many large purchases, price always tends to be one of the biggest obstacles between homeowners and solar energy systems. If price is the issue, Sales Mode’s live proposal changes make it easy to add in holiday, military, senior, or any other types of authorized discounts you may have up your sleeve. And while one-call-closes are always ideal, if a customer says that they simply need more time before a purchase, Sales Mode allows the customer to share a live proposal with partners, family, and friends before ultimately deciding whether or not to move forward.   Achieving the “One-Call Close”  A few years ago, an Aurora survey found that change orders affect 47% of installers on 10-30% of their projects. And while it’s obvious that change orders can dramatically slow down the sales process, they may also lead to a bad customer experience, which can reduce the likelihood of both a close or referral.  This is why Sales Mode is built with the one-call-close in mind. From any tablet or laptop, a sales rep can add electricity usage, estimate bills based on local utility rates, and create a fast, accurate home and system design. The rep can then auto-generate a roof design in real-time.  A customer’s local utility and building code information can also be pre-populated on a roof to instantly create the best solar energy system for the location. Beyond just the panel placement, Sales Mode can also be used to toggle between inverters and microinverters or even add a battery to a system to see the real-time impact on costs and savings.  Once the system has been perfected — right in front of the customer — Sales Mode lets homeowners instantly compare financing options, with the ability to show various payment models with the click of a button. With electricity bill savings calculated as accurately as possible, the rep can walk potential customers through their future electricity expenses with a solar energy system before signing on the dotted line.   Sales Mode makes it easy to estimate energy costs pre- and post-solar. Get Professional Help With Your Modeling Aurora’s Expedited Modeling Service, can help you deliver accurate 3-dimensional models in less than three hours — with an average time of about an hour (contact us to see about plans that guarantee 30-minute turnaround times). You send the specs, one of Aurora’s designers takes on the project, and a 3-D model comes back that’s ready to go. And since experts create the models, you can feel confident that they’ll be accurate. All the Tools, Right at Your Fingertips All in all, Sales Mode is designed from the ground up to make sure your sales team can:   Adapt to individual customer needs  Make changes in real-time Show multiple options to help close the deal  Whether you use it on a tablet or computer, Sales Mode helps demonstrate your company’s expertise and value in real-time. From inputting current electricity usage, to system design, environmental impact, and financing information, Sales Mode’s intelligent features can help your customers understand their solar energy system, with complete customization and control for solar sales reps, in homes and on the go.  ### 4 Homeowner Questions (and Answers) to Help You Close More Solar Deals Solar is a big commitment. When we’re making a sales pitch to a homeowner, we’re also asking them to invest thousands of dollars and alter the look of their house, among other things.  Of course, solar has huge benefits to homeowners. Benefits that cover that investment many times over, both in actual cash and in doing social good. So, when we engage a potential customer it’s important that they understand all aspects of going solar, from how a system works all the way to how they’ll save money.  To keep customers engaged, and make sure they’re not overwhelmed by the process, follow-up is a key step. With that in mind, here are 4 common questions that your follow-up materials should answer to make sure that customer understands their options, the process, and how much they can save. To help you answer these questions, and more, we’ve developed The Solar Sales Follow-up Kit. Check it out and give it to potential customers as a leave behind to help them learn more — and remember your business. How much will they save? We all know that the savings solar can provide are truly exceptional. At the same time, it seems as if utilities go out of their way to make electric bills confusing, masking what customers are truly paying now, and what their savings are once they install solar. To overcome this, it’s critical that customers actually know how to read their electric bill. This is especially true if they are under TOU rates and have multiple line items for different times of the day.   They should also know how to read the bills they’ll get after panels are on the roof. This proactive step can eliminate some support calls and emails after an install is complete, as well as letting the customer know what to expect. Check out The Solar Sales Follow-up Kit for some examples of how complex electric bills can be. What’s involved in their install? We take the solar panel installation process for granted, often completing multiple installs per week. But, this is likely the one, and only, solar install a homeowner will ever experience. And most have never even heard of an inverter.  You can help put their mind at ease by educating them on what’s actually involved in the process, step-by-step.  For example, many homeowners envision a painful, days-long process [Editor: raises hand], when in reality, many installers are on the roof for just a single day.  In fact, in our homeowner research, Decoding the Solar Buyer, we found that many homeowners expect to see a detailed breakdown of the components and costs of their system, similar to how they would when getting a car or house repair. The Solar Sales Follow-up Kit describes the individual parts of a solar system, how it’s designed, and how it goes up on the roof. This information can set customers’ minds at ease and eliminate one potential pain point of closing the sale. Do they need storage? Solar + storage is gaining in popularity, with more than 70% of installers offering it as an option for customers. Customers, on the other hand, may not have realistic expectations of what it is and what it can provide.  Right now, the biggest selling points are around energy resiliency, i.e. being able to power your home (or at least crucial parts of it) during those times when the power is out.  The Solar Sales Follow-up Kit has the information potential customers need on what storage is (and isn’t), its pricing, and how it fits into a solar install. What’s their payback period? The payback period is what a large majority of customers want to know. They’re making a big investment, and want to know when they’ll start generating returns.  This is also an opportunity to educate customers on just what exactly goes into the costs of their system, including things like permitting and taxes.  This is perhaps the most effective way to sell a system. When you can detail for a customer (or the customer can easily figure out for themself) that, for example, their $10,000 investment in solar today will pay for itself in less than 7 years, and produce over $27,000 in savings over the lifetime of the system, the sale becomes that much easier. The Solar Sales Follow-up Kit provides that information, including two key equations that every homeowner should understand: simple payback period and net revenue. The Solar Sales Follow-up Kit The Solar Sales Follow-up Kit can help you answer these questions — and many more — for your potential customers. This easy-to-share PDF is the perfect addition to your homeowner follow-up efforts. By becoming a trusted advisor, not just one more estimate they have to go through, you’ll put yourself in position to close more deals. Featured image by Van Tay Media. ### Top 10 Things You Didn't Know Aurora Can Do: #5 — Bankable Shade Reports Solar power is all about getting sunlight on panels. It’s not surprising, then, that good solar software has many features that help calculate how much shading we can expect to obscure that light.  So far, we’ve looked at horizon shading and fitting trees to LIDAR. Today, we continue this shading series-within-a-series, with another way Aurora can help efficiently deal with the effects of shade: Bankable Shade Reports. Why Bankable Shade Reports Are Important Once you’ve conducted a shading analysis on your site and generated your model and system design, the next step is generating a shade report.  Installers know, few things are more frustrating than having to re-do your energy estimates because of an inaccurate shading analysis. While most solar software provides shading analysis of some kind, doing it with precision is what lets you provide bankable shade reports for financing, and it can help speed up the entire sales and approval process. How Aurora’s Bankable Shade Reports Help Bankable Shade Reports mean exactly what you’d think: Aurora’s Shade Analysis has been validated by NREL, so you save the time, cost, and hassle of a truck roll with every project you design. Basically, Aurora’s software is equivalent to actual on-site measurements. But there’s one more step: the actual report. And it’s another way Aurora can save you time and hassle. Aurora’s shade reports are in a format that’s officially accepted by financiers and incentive providers, including New York State Energy Research and Development Authority (NYSERDA), Massachusetts Clean Energy Center (MassCEC), New Jersey Clean Energy Fund, Oncor, Sunnova, and more.  All this means that once you’ve designed a system, you can get to approval with zero truck rolls, and fewer change orders. How Bankable Shade Reports Work In this case, a video is truly worth 1,000 words... Basically with a few clicks from the Documents section of your project you can generate a report like the one below. You can see it includes critical information like Annual TOF (1), Solar Access (2), and TSRF (3). For a more complete explanation of what these terms mean, and why they’re important, check out the Bankable Shade Reports help site. We’ll be back next week with feature #4. In the meantime, check out our dedicated 10 Things You Didn’t Know Aurora Can Do homepage to learn about the other things we’ve featured so far. Then schedule a live demo to learn more about how these features can help you produce more accurate solar designs.  Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### Sticker Shock: Resources to Help Prospects Navigate One of the Biggest Solar Adoption Barriers Solar is a big investment, and that can make it difficult for some homeowners to get to “yes”. But, there are a number of financing options available for customers who are looking to install solar without breaking the bank. Making sure they’re aware of everything out there is a great way to get that contract signed. Last week, we covered some of the most popular incentives and rebates available for homeowners interested in going solar. This week, we’ll navigate through some of Aurora’s popular financing articles so that you can educate your prospective customers on the financing options available for their solar installation.  How Green Bank Programs Make Solar Financing More Accessible Green banks represent an important tool for driving growth in clean energy markets. As more and more states eye options to meet climate change commitments, it’s likely that green banks will play an increasing role around the country. If there’s a green bank in your state, city, or country, get familiar with its programs and the benefits they can offer to prospective clients. Learn more about how green bank programs can help you close a sale.  Solar Financing Options: Factors for Your Customer to Consider Being able to detail the benefits and limitations of the solar financing options currently available can make the difference in closing a sale.  This article walks you through some important financing considerations so that you can help your prospective customer find one that best suits their needs. Read more.  Quantifying the Value of Installing Solar: Some Helpful Metrics When communicating with prospective clients about installing solar, it’s likely that they will have questions about the value of your design relative to other proposals they receive.  Being able to provide metrics that communicate what the solar installation will be worth over its lifetime will help them more easily understand the value your company is offering and know that they’re making a smart choice.  In this article, we’ve compiled some of the most common metrics for quantifying a solar project’s value, how they are calculated, and what purpose they serve. Read more. The Solar Sales Follow Up Kit Purchasing solar can be an overwhelming experience for homeowners who aren’t familiar with the basic process, equipment, and tech involved. In this toolkit, you’ll find four guides that you can use to help educate a homeowner about the basics of solar and make them feel confident about making their buying decision with you. This kit includes guides on: How to read an electricity bill The basic principles that guide solar system costs How a solar installation works How solar energy storage works Download the free, helpful sales kit here. That’s it for this week. Stay tuned for next week when we’ll look at some NEM resources. In the meantime, as always, subscribe to The Current. ### The Key Differences Between Residential and Commercial Solar What are the core differences in serving residential and commercial and industrial (C&I) solar markets as a solar contractor? If you’ve ever thought about expanding your residential solar contracting work to serve commercial customers as well, you might find it helpful to understand what these sectors have in common and where they diverge. What is the Difference Between Residential and Commercial Solar? To get the lowdown on some of the key differences in solar contracting for residential and C&I solar projects, we spoke with Barry Durand, Director Commercial Sales, and Yashwanth (Yash) Ganti, Design Engineering Manager, at Green Solar Technologies. Green Solar Technologies expanded into commercial solar several years ago, after nearly a decade serving residential solar customers–so Durand and Ganti were well positioned to highlight the important differences between the two sectors. Our conversation highlighted several notable differences between C&I and residential solar contracting, including differences in the length and complexity of projects, communication with customers, project costs, and financing. Read on to learn more! 1. C&I solar projects take longer, partially because of permitting complexity. As Durand explained, “Residential [solar] is a quicker process. As far as determining the size of the system, calculating the [financial] benefits, and actually getting it installed, it typically takes from 4 weeks to 12 weeks. Commercial, not so much. It's a lot longer process for people involved with it; it could take anywhere from six months to a year before the project gets done.” A big part of this is the permitting process, which Durand noted “is quite a bit different, and quite a bit longer.” Ganti reiterated this point, noting that “There's a lot more review involved from the local jurisdictions.” “For example, here in the city of Los Angeles, when it's a residential job under 10 kW, you can apply for permitting approval online and you don't even have to turn in a plan set. But when it comes to commercial, anything bigger than 10kW, there is a more detailed review process.” Ganti explains that after turning in plan sets to the local permitting office, “they'll give you a time frame to review the entire plan set, which could be up to two weeks. From there, there can be multiple revisions, if they want you to add more detail.” Durand also noted that these time frame differences affect the sales process. Companies considering expanding their work into C&I solar need to be aware that the commercial solar sales process is longer (a theme that also came up in our interview with the Community Purchasing Alliance). 2. Commercial projects are more technical. Increased technical complexity is another important factor that differentiates commercial solar contracting. As Ganti explains, “From my perspective when it comes to designing a residential and a commercial job, residential is fairly straightforward. It's on a smaller scale so you're easily able to identify any technical issues and suggest a cost-effective solution for them right away.” “But when it comes to commercial, there are much more technical concepts involved. For example, you may be dealing with electrical equipment at a higher rating, such as 2000 or even 3000 ampere (amp) switchgears. You have to understand whether you may need transformer upgrades based on whether the local lines can handle the solar backfeed. Basically, all of the technical considerations get more complex when you transition from residential to commercial.” Because of this, Durand emphasized that it’s very important for companies considering making this transition to ensure “they have a quality engineering firm or a really good in-house designer that's very familiar with commercial [projects] to help streamline the process.” Beyond ensuring technical competence, this can help speed up the permitting process by reducing the need for revisions. Durand explained that an experienced engineering firm or in-house engineer, can “make sure that you've got [the permit application] done as well as you can the first time. That means a very good site survey and making sure you've accurately answered every question.” “Once you do that, [the permitting process is] going to be a lot more streamlined. Yes, it will still take two to six months to get to the point where the system is ready to be installed–but if you don't start with that it could take a year.” 3. Communication with customers differs from residential solar projects. Communication with customers is also somewhat different for C&I solar contracting compared to residential. Because commercial projects span over a much longer time, it’s important to establish clear expectations at the outset for the length of time the project will take. “The difference is all about length of time,” says Durand. “With a homeowner, the minute you sign an agreement with them, they want solar on [their house] tomorrow... You have to communicate with them every few days... it's a totally different animal.” “With commercial, we manage those expectations a certain way,” letting them know “it's going to take six months to a year." Because of that, the frequency of communication may be less than with a homeowner (though of course clarity in communication and regular updates are important in all solar projects). 4. Commercial projects have higher costs, but lower cost per watt. Another key difference between residential and commercial solar projects is in the costs. While it’s intuitive that the price tag of a large C&I project will be greater than for a small residential solar system, Ganti and Durand highlighted some particular aspects of C&I projects that come with much higher costs. “For example,” Ganti noted, “if you have to upgrade an electrical panel, it will probably cost you about $2,000 in a residential job. When it comes to commercial, you're actually looking at upgrading the local transformer, which could cost from $4,000 to $20,000 or more depending on the local transformer and other technical factors.” Despite this, because of the economies of scale at play in commercial projects, the cost per watt of commercial projects tends to be lower. “A contractor can end up saving money on a cost per watt basis for a [commercial] installation due to the fact that some of these costs are set, whether residential or commercial.” He cited the cost of truck rolls to bring staff to a project site as an example. Additional savings come from buying hardware components in bulk. For these reasons, for contractors that are prepared to manage the complexity of C&I solar projects, it can be a very lucrative sector. 5. Financing for commercial solar projects is less accessible. A final important difference between residential and C&I solar relates to financing. Durand notes that “it's a lot easier access to financing for the residential market, than for commercial,” a factor that has held back the growth of the C&I sector. Durand notes that in residential solar, financing options have been more developed, whereas the C&I sector is somewhat new territory. Despite that, he observes “there are more and more ways to start financing your commercial projects; not everybody wants to pay cash.” He recommends that for businesses that have a relationship with their own bank, that can be a great place to start when seeking a solar loan. Although commercial and residential solar contracting diverge in a number of respects, a final takeaway from our conversation with Durand and Ganti was that, ultimately, the two sectors are not so different. “As long as [contractors]... hire the right engineering firm, have the right equipment, and the skills to do the installation, it's the same process,” says Durand. “[Commercial solar is] not that difficult, it’s just a matter of having all of your ducks in a row when you start.” ### Intro to Sales Mode: The Best Solar Sales Tool & How It Works Not too long ago, sales reps were climbing on roofs, getting headaches from change order after change order, and traveling from site to site to deal with unhappy customers. Over the years, the solar sales process has gotten incrementally better, but today, it’s going to make a giant leap forward. In this webinar see how Sales Mode, the most innovative and intuitive sales tool, is about to take your solar sales wishlist from dream to reality. How Sales Mode can help you achieve the “one-call close” How to use Sales Mode to address homeowner objections in real-time The new features that you’ll have access at no additional cost         ### Solar Rebates & Incentives: Resources to Aid & Inform Your Prospects To encourage a greater adoption of solar, the federal government, a number of states, and even some utilities offer incentives to make solar more affordable. Common incentives include solar rebates, tax benefits, and performance-based incentives. These offerings can significantly reduce the cost of a solar system, and can help convert even the most hesitant or frugal homeowners. We’ve compiled some Aurora resources below to help you educate your solar prospects on some of the federal and local offerings currently available.  What You Need to Know About the Solar ITC Extension The Federal Investment Tax Credit (ITC) gives back 26% of what a homeowner paid for solar in their taxes. Instead of a deduction, which reduces taxable income, the ITC directly offsets what would otherwise be owed in taxes, and can even come back as a refund.  The ITC extension will provide an extra incentive until 2023. Installers will continue to have this useful tool to convince even the most frugal prospects to go solar. Here’s a quick breakdown of how installers and homeowners can benefit. The Power of SRECs in Your Solar Sales Discussions Some states offer additional tax credits for homeowners interested in going solar. When state tax credits are paired with the federal ITC, the savings on installing a solar system can really add up! Many states now have renewable portfolio standards (RPS), which require utilities to procure or generate a certain percentage of electricity from renewable resources. If your prospect lives in an RPS state, their solar panels will create solar renewable energy certificates (SRECs) for the amount of electricity produced by your solar panel systems. SRECs significantly increase the return on investment for homeowners, and should be an integral part of your sales conversations.  Selling SRECs can result in hundreds (or even thousands) of dollars more per year in income for a homeowner, depending on the SREC market in their state. This article explores a number of SREC benefits you’ll want to bring to a prospect’s attention. 7 California Solar Incentives You Need to Know California offers quite a few solar incentives and savings benefits, including property-assessed clean energy (PACE), property tax exemption for PV systems, and net energy metering (NEM). With incentives like these, going solar can be both financially feasible and beneficial, even for the most hesitant prospect. Read more about the California incentives here. Financial Incentives for Installing Solar This article offers a sweeping overview of common solar incentives so that you can educate your customers on the benefits available to them. It's important to note that these policies benefit customers who purchase their solar installation and are not available to customers who finance their system with leases or PPAs. Read more. This month in The Current, we'll be exploring more resources to help your solar business educate homeowners — and hopefully turn them into customers. Stay tuned for next week when we'll dive into financing options. In the meantime, subscribe to The Current to get this information delivered to your inbox. ### Top 10 Things You Didn’t Know Aurora Can Do: #6 — Fit Trees to LIDAR One of the biggest factors in whether a site is suitable for solar — and how much energy it will produce — is trees. They’re beautiful, we all love them, but having a big tree shading a roof can be an impediment to generating solar energy. It follows, then, that being able to accurately represent trees, both the size and shape, in your solar design is critical. Yet, many solutions rely solely on you to estimate the height and breadth of a tree that could impact a site’s potential by kilowatts.  Why Sizing Trees Accurately is Important In our last entry, Using AutoDesigner to Size a System Correctly, we dove into the pitfalls of an incorrectly sized system. Long story, short: An incorrectly sized installation — whether it produces less energy or more energy than expected — can lead to unhappy customers and/or unprofitable systems.  When it comes to trees, this can mean a couple things. The most obvious is that on a heavily wooded property, the size and shape of trees can literally be the difference between a site being viable or not. In the sales process, it's also important to remember: Homeowners often over-estimate the impact of a tree. So, a homeowner objection might be something like, "No, we can't go solar, because of that big palm tree there". With Fit Trees to LIDAR, though, a good solar sales rep can say, "Actually, let's model it quickly, the shade impact might not be as big as you think". How Aurora’s Fit Trees to LIDAR Helps Fit Trees to LIDAR eliminates guesswork and saves you time when adding trees to your project by intelligently adjusting the height trees to match Aurora's LIDAR data. When you add a new tree to a project, Aurora will automatically look for LIDAR data points in that location and adjust the Tree Height and Crown Height accordingly. This helps ensure that your designs are as accurate as possible, and saves time by intelligently adjusting those tree features, rather than you having to estimate them, redraw them, and possibly visit the site again to accurately measure.  Imagine you're designing a site with dozens of trees on the property. Instead of manually adjusting each of the trees one-by-one, all you need to do is draw the tree out initially and it will adjust to the correct height. This cuts the time it takes to design trees dramatically. Then, think about how much time that could save when designing tens or hundreds of homes How Fitting Trees to LIDAR Works Using this feature couldn’t be easier. When you add a new tree, Aurora will automatically look for LIDAR data points in that location and adjust the Tree Height and Crown Height. As you can see in the GIF below, it just happens. If LIDAR hasn’t finished downloading or isn’t available for that site, you’ll still have to manually adjust the height of the trees, or click the "Fit to LIDAR" button in the Tree Inspector once it finishes downloading. You can override the Fit to LIDAR values by adjusting the tree’s height, or changing the tree’s shape (cone to sphere, sphere to cone). See Aurora's Help page for more information. And that’s it. No more guesswork, no more back-and-forth. We’ll be back next week with feature #5. In the meantime, check out our dedicated 10 Things You Didn’t Know Aurora Can Do homepage to learn about the other things we’ve featured so far. Then schedule a live demo to learn more about how these features can help you produce more accurate solar designs.  ​​Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### 3 Ways the Agile Sales Method Can Help Your Solar Business Compete Click the image above to watch the full webinar. As the solar industry continues to consolidate into fewer, larger companies, small solar businesses around the world are constantly looking for new ways to compete with the big names. And with roughly 20,000 solar companies in the United States market, many small businesses are seeing an increase in competition in their local areas, as “everyone wants a slice of the pie.” While national brands may have the marketing budgets to get in the door of more homeowners looking to go solar, there are also many advantages that small companies can use to leverage sales, close deals, and earn more business.  Strategic Differences Between Small and Large Solar Companies To begin a recent webinar hosted by Aurora Solar's Aateeb Khan and Katy Burk-Cheema, an audience of solar professionals was polled about their sales methodologies. The results showed that most solar providers are meeting with individual homeowners multiple times, but only “occasionally or rarely” changing the designs in front of a potential customer.  As small, independent businesses compete with the big brands, time is money, and having to revisit a property because you didn’t walk in the door with the best PV design possible for that specific customer should not be an obstacle in closing a sale. While larger companies may be able to afford lower closing rates, we know that every lead matters when operating as a small solar business.  With a focus on flexibility, the Agile Sales Method can be defined by the ability to:  Adapt to individual customer needs Make changes in real-time And show multiple options to close the deal    In this blog, we’ll highlight 3 key takeaways from the webinar that show how small and mid-sized solar providers can deploy the Agile Sales Method to compete in today’s market: Increase sales for solar panel systems  Achieve one-call closes without being “pushy”  And create more five-star customer experiences to generate referrals    Adapt Proposals to Individual Customer Needs   First, small businesses have the advantage of providing a personal touch on their solar proposals, with the ability to adapt as necessary to meet and exceed customer needs. Here, the key to success is remaining as flexible as possible and considering all of the unique variables of every customer’s potential solar energy system.    Katy explains that small business owners can “be more flexible and more personalized with how [they] sell.”    When setting up a proposal, Aateeb reminds us, “one of the most important pieces of information you can gather in order to ensure success as part of your deal is the customer’s energy consumption.” And while this data is collected by almost every solar provider, small companies meeting directly with customers should strive to collect as much unique information as possible. Beyond the customer’s monthly electricity usage and energy load profile, solar proposals should always be adapted to match the size of the homeowner’s roof as well as the property’s specific sunlight conditions. Showing an actual model of the customer’s home, accounting for any unique conditions, will instantly demonstrate that your proposal is not a cookie-cutter design.  Make Changes in Real-Time  Second, the Agile Sale Method is centered around the ability to make changes in real-time. While many salespeople are used to calling their engineers for design changes, Sales Mode is optimized for ease of use, homeowner friendliness, agility, and customization, to make simple, real-time adjustments to solar proposals and close deals on the spot.  Let’s say, for example, that during a meeting with a homeowner, you learn that they are planning to purchase an electric vehicle or air conditioning system that may drastically increase their future electricity bills. A flexible solar company should be able to adjust instantly by adding panels to the design and seeing the impact on bill savings in real-time.  Likewise, unforeseen circumstances may necessitate design changes in ways beyond simply electricity use. Aateeb explains that, “If, for example, the HOA indicates that you can’t place panels on the south-facing roof (or street side) — as we see in some HOAs — or we know that [the customer’s] neighbor isn’t the biggest fan of solar panels, we can quickly run a separate analysis where we turn off these panels” to fit customer personal preference.  Show Multiple Options to Close the Deal Finally, one of the best ways to close the deal on a solar energy system is by presenting multiple options in a visual and easy-to-understand way. After working with the customer to meet their personal preferences, solar companies can present multiple options for various financing methods and cash prices to incentivize a sale.  Below, you can see the drop-down menu on the right-hand side of the System Summary page in Sales Mode. Here, the interface allows you to quickly toggle between financing options for customers to compare monthly payments, payback periods, and more.     And while we all dream of instantly closing every sales opportunity on our calendar, it doesn’t take long in the solar business to realize that is simply impossible to achieve. If you’re worried about being “too pushy,” Aateeb reminds us that it's always possible to give a potential buyer everything that they need to make a decision with a bit more time.  He explains that if the customer “needs a bit of time to make a decision, you can go ahead and click on the navigation button and actually send them a live link to a proposal that will be able to be reviewed with their partner, with their neighbors, with their friends, with whomever, so that when they are ready to contact you, all the customer has to do is review this proposal and reach out to you with any further questions.” Conclusion In summary, while it can be intimidating or disheartening to go up against large solar companies in the marketplace, smaller and sales-only businesses can deploy an agile sales method to use their flexibility as an advantage. Sales Mode is designed to help small solar business owners make changes in real-time and dynamically adjust all of the aspects of a proposal to close more sales and exceed customer expectations.  To see a full walkthrough of the software in a typical residential solar sales scenario, watch the Agile Sales Method webinar.  Click the image above to watch the full webinar. For more product updates and solar sales tips, subscribe to the Aurora Solar blog.   Featured image by Christian Stahl.   ### Introducing Sales Mode: A Better Way to Sell Solar The residential solar market in the US is growing at an unprecedented rate. After taking 40 years to reach the first million solar installations, we installed our second million in just 3 years.  But while the demand for solar has grown, solar sales tools haven’t kept up. Most software products on the market force a sales rep to choose between speed and accuracy. In other words, installers historically have had to choose between selling and closing a deal quickly or creating an in-depth, accurate design that takes more time.  And just as the residential market has evolved, so too has consumer purchasing behavior. Today’s solar buyer wants a buying experience that’s dynamic, fast, and personalized. In 2021, Aurora conducted a research study to better understand what today’s solar buyers are looking for. In this study, we found that homeowners, in addition to a competitive cost, put a high value on aesthetics, and on having multiple options to choose from. These insights are backed up from other industry studies as well. In fact, the Modernize Homeowner Sentiment Report 2020 found that on average: 23% of homeowners found their quote to be unclear or confusing 21% of homeowners felt a lack of communication from their solar sales rep 20% said they felt their solar sales rep lacked expertise  With these pain points in mind, we set out to create a new solar sales software experience built on one principle: to make solar sales interactive and easy for both the homeowner and the sales rep. Today we’re excited to announce the arrival of Sales Mode! Pairing the technical accuracy that Aurora is known for with the speed and ease of a tablet-friendly workflow created specifically for the solar sales rep, Sales Mode is Aurora reimagined for your sales team.  With Sales Mode you can: Adapt to individual customer needs to create a customized buying experience Incorporate customer feedback in real-time to close in one meeting Sell more deals, faster, through a streamlined workflow and intuitive interface It’s also built with guardrails in place to help reduce any manual errors throughout the sales process. When designing, sales reps can create a max-fit design and simply toggle the panels on or off. Using this feature, reps can easily click to turn a single panel or an entire array on or off with the tap of a finger. Likewise when quoting, Aurora’s customizable adders and discounts database make it easy for reps to select from built-in values and plug them into a customer quote.  Send Your Homeowner a Digital Proposal They’ll Love Homeowners today spend more time on their devices than ever before and want a digital proposal that’s easily accessible on their phone, iPad, or computer. While printed proposals have been king in the solar sales industry, digital proposals are quickly becoming the gold standard.  Using Aurora’s Web Proposal you can send your customer a customized proposal that they can engage with on any device. This customized link also has charts, graphs, and a proposed site model with which the customer can interact. In addition to Sales Mode and Web Proposal, there are two other products available at an additional premium: Sales Mode AI and Contract Manager. Introducing Sales Mode AI: Intelligent Site Design in 30 Seconds  Delays in design turnaround can completely derail an appointment. Sales reps need the ability to generate a design to get in front of the customer quickly.  At an additional premium, you can get access to Sales Mode AI to instantly generate a 3D model of your customer's home, in 30 seconds or less. All you need is an address and one month's utility bill to turn around their solar site design. Close the Deal Effortlessly with Contract Manager Sales Mode allows you to make design adjustments on the fly, and respond to customer change requests before even leaving the home. With Contract Manager, you can make sure that you don’t leave the home without a signed deal in hand.  You can use Contract Manager to automatically pull in a customer’s project details into your agreements, and collect signatures through Aurora’s fully integrated e-signature system. You can also receive email alerts when the customer has signed the contract, and track the status in real-time within Sales Mode, so you can stay in the loop even when you’re working on other deals.  Ready to Supercharge Your Solar Sales?  If you’d like to see these new products in action, you can request a demo here. ### The Top 10 Things You Didn't Know Aurora Can Do: All In One Place As the solar industry grows, installers face an ever-changing and extremely competitive environment, not to mention a complex web of regulations and incentives. To thrive in this challenging, but fulfilling industry, you have to be able to solve potential problems and respond to customer requests quickly, efficiently, and accurately. Using all the features of your solar design and sales software is a key part of this equation. You’re paying for it anyway, right? You may as well get the absolute most you can out of it. Of course, it can be difficult to know everything software like Aurora’s can do, and in the heat of the moment it can be tempting to just do things manually. In this series, we’re counting down the top 10 things installers don’t know Aurora can do. In each installment we highlight a feature that can save you significant time and money, can make your proposals more compelling, or a combination of all three. We investigate the issues they can help solve, and include instructions — complete with step-by-step screenshots and GIFs — and links so you can take action immediately. We’ll be revealing a new feature each week as we count down from #10 (Code and Setback Requirements) to #1 (?), so check back often! 10. Code and Setback Requirements 9. Horizon Shading 8. Energy Storage 7. AutoDesigner 6. Fit Trees to LIDAR 5. Bankable Shade Reports 4. Export DXF Files 3. Compare Production Between Aurora and PV Watts 2. Advanced User Roles & Permissions 1. Expert Design Service! ### Solar Marketing: From Blog Post to Proposal — Strategies to Drive Storage Sales While the demand for solar + storage is on the rise, and according to Aurora’s 2020 Solar Technology Benchmark Survey, 70% of solar installers are already offering solar storage options. Yet, many installers have yet to refine their storage sales process and are missing out on potential sales.  Last week, we covered how offering your prospective customers informative solar content can lead to increased brand perception and quicker conversions. In this final article of our four-part solar marketing series, we’ll explore how to create useful content and effective storage proposals your prospects will love. 3 Ways to Market and Sell Solar Storage More Successfully  Many solar installers don’t have a clear process for how to quote and sell storage, and often miss out on the sale. In this post, we cover how to position storage to prospective customers.  Smart Software Features for More Storage Sales To sell storage effectively, installers need a tool that: Adds storage instantly to any existing solar project or proposal Shows the financial breakdown of the battery system and the overall system cost Shows the backup duration as hours, days, or a percentage Take a look at this article to learn how Aurora’s storage features can help you close more storage sales. Solar Storage and Home Batteries: What’s Driving People to Buy?  Why is the demand for storage rising? Take a look at this article to explore what is driving the demand for solar storage and how to take advantage of these trends. The Grow your Solar Business Bundle Learn how to position your products and services to sell more solar. This bundle includes: Money on the Table: Expanding Your Business Through New Products How to Grow Your Solar Business with Storage (Backed by Data) How to Upgrade Your Lead Generation Program for the Post-COVID Era And The Pocket Guide to Selling Storage Download this free resource to get industry expert advice and resources that will help expand your solar business.  That's it for Solar Marketing Month, check out the other blogs to up your marketing game: How to Win Over Prospects With Informative Solar Content Brand Positioning 101: How to Set Your Company Apart From the Competition Using the Internet to Grow Your Brand We'll be back in December with another topic that's critical for solar installers: Regulations and Incentives. Until then, subscribe to The Current to get all the solar info that's fit to print. ### Top 10 Things You Didn't Know Aurora Can Do: #7 — AutoDesigner Deciding how to size a solar installation can be one of those design issues that takes more time than expected. If you have a specific offset in mind, it can involve seemingly endless tweaking to your design to get the exact right production.   This means added time to your design process, for sure. But it can also mean that the system won’t meet customer expectations or be as efficient as it could be.  What if you could accurately size a system with just a few clicks, in just a few seconds?  Why sizing a system correctly is important An incorrectly sized system may not produce the amount of energy the homeowner was expecting, leading to unhappy customers and/or unprofitable systems. For example, customers that were expecting to cover their entire electric bill, and maybe even sell some energy back to the power company through NEM, will be pretty disappointed if they consistently receive bills after panels are installed. On the other hand, a system that is too large will generate excess energy, making the solar array less financially attractive for the homeowner.  But, sizing the system correctly isn’t the only consideration: You have to get the production you want in the most efficient way possible. When you’re tweaking a design to try to meet a certain production number, you might not add and remove panels in the most efficient way. So, a system could meet the target production, but might place panels in less-than-ideal locations and leave better (sunnier) areas of the roof bare.  How Aurora AutoDesigner helps Aurora’s AutoDesigner tool can automatically generate the perfectly sized solar system based on your customer’s electricity use.  With just a few inputs from you, AutoDesigner creates the majority of the system — in a matter of seconds. And you can still modify the design to meet any other specifications a customer might have. This not only speeds up your workflows, but makes your designs more accurate and less prone to error. How Aurora AutoDesigner works Maybe the most difficult part of using AutoDesigner is finding it in your design. It’s the little magic wand in the upper right of the design screen. Once you click it, you’re just a few inputs away from a design. When you click the wand, it brings up the above screen. You simply select how you want to calculate production — in this example it’s “Energy”, but you could also choose “Savings”. Then enter your target kWh per year and the offset percentage, and select your components. Using the Advanced Options, you can also determine the orientation of the panels, and choose from pricing options. If you select “Savings” mode the choices are similar, but you enter a target of $ per month, and set the post-solar rate.  Aurora does the rest. Whether you use Energy or Savings mode, in a few seconds the customer’s roof is designed to meet those exact specifications. Check out the docs for Energy mode or Savings mode to learn more. We’re taking next week off for Thanksgiving, but will be back in December with feature #6. In the meantime, check out our Aurora Top 10: All In One Place page to see all the other features highlighted in this series and look at the schedule for the remaining posts. Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### Solar Marketing: How to Win Over Prospects With Informative Solar Content Solar pros can help their prospects better understand what is involved in the solar buying and installation process by using educational blog posts and guides. This fosters a trusting relationship with potential customers and dramatically increases the likelihood of them making a purchase. Offering informative solar content controls the entire funnel from top to bottom without any off-putting, sales-heavy marketing tactics to deter a lead’s interest.  This month, we’re investigating the marketing strategies you can use to close more sales. Last week, we covered basic brand positioning tactics to set your solar business apart from the competition. This week, we’ll explore how you can generate an effective content strategy to win the trust of your prospects and close more sales.  4 Ways to Get More Solar Leads Without Increasing Budgets  With digital marketing becoming increasingly expensive and the cost to purchase leads continuing to rise, solar installers need to think about marketing smarter, not harder. To get some ideas on how solar installers can improve their lead generation, we invited four lead-gen experts to share their insights. The Solar Sales Follow Up Kit Become the trusted solar resource your leads have been looking for. This sales kit provides you with 4 informational guides that you can share with your prospective customers to answer all of their solar questions.  The kit will help earn your leads’ confidence and business, so be sure to add it to your educational marketing strategy! Decoding the Solar Buyer: Insights from Aurora’s 2021 Homeowner Research This webinar sheds light on common buyer frustrations, hesitations, and what your prospects need to hear to invest in solar energy. Watch this short, pre-recorded webinar to gain insights into the solar buyer’s mind so that you can create highly curated content.  By addressing your leads’ concerns early through easy-to-digest articles and guides, you’ll quickly move them further down your sales funnel to a sale. Common Residential Solar Myths and How to Overcome Them Every solar installer is faced with customer objections on the way to closing the deal. Knowing how to address common objections — even if they’re not based in fact — can turn a “no” into a “yes”.  Creating content that addresses these common objections will meet your prospects out in front of the problem, easing their concerns and making them more likely to say yes to your proposal. That’s it for this week. Be sure to check our next edition, and subscribe to The Current, where we’ll be looking at more ways to market solar — from social media to proposal. Featured image by Kimberly Farmer. ### Top 10 Things You Didn’t Know Aurora Can Do: #8 - Energy Storage Many homeowners are now considering energy storage as a way to keep the lights (and other things) on when the power goes out. So, when you’re engaging a homeowner on a solar system, making sure they’re informed about solar storage options can be a great way to increase the value of your sale. More than that, it’s becoming a required box to check if you want to keep up with the competition. According to Aurora’s 2020 Solar Technology Benchmark Survey, 70% of solar installers are already offering solar storage options. It’s safe to say that number has only grown in the past year or so. And that 70% shouldn’t be surprising. In February, Global Market Insights estimated the market for battery storage was $23 billion with a predicted CAGR of 25.1% from 2021 to 2030. With so much potential upside — and so much to lose to the competition — the question becomes: Are you doing enough to present storage options that might work for your customers? Why Energy Storage is Important Despite the strong growth projections for storage, and the high number of installers offering it, we’ve heard a common complaint: Solar + storage tools haven’t really kept up with that demand. The installers that participated in our research, for example, said they were using multiple tools, accounts, and subscriptions just to close a single deal. While installers already have very refined processes for solar sales, when it comes to selling storage, back-of-the-envelope guesswork or using Excel for calculations is still the norm. In other words, installers are using a number of unscalable processes that don’t fit well, or at all, with their solar sales process. How Aurora’s Energy Storage Features Help To sell storage effectively, installers need a sales proposal that’s compelling and understandable for homeowners. Aurora’s battery storage proposal compiles the data that customers need to make a buying decision, in an easy-to-understand format, and lets you add a pre-assembled smart recommendation to your solar design within seconds. While we won’t get into every feature in this post, but here are a few highlights: Add storage to any existing solar project in Aurora and instantly upgrade your proposals to include solar + storage. Show the financial breakdown of the battery system or overall system cost. Showcase backup duration as hours, days, or a percentage. The sizing tool comes with three pre-assembled smart recommendations: Saver, Average, and Power. Each provides battery sizing suggestions while taking daily storage capacity, backup load percentage, and backup duration into account. A few highlights of the recommendation engine are: It’s Fast: It takes less than 10 minutes to develop custom proposals for your customer based on how much backup capacity they desire, and zero time configuring since smart recommendations are pre-loaded in your account. It’s Simple: Explaining battery backup can be technical and tedious. Aurora’s smart recommendations provide an easy-to-understand format so you can clearly explain the setup to the homeowner. It’s Scalable: Battery Storage for Aurora is easily added to any existing (or new) solar project you have in your account. It’s Customizable: The Storage Configuration page is flexible so that you can make dynamic changes to your designs in real time. How Aurora Battery Storage Works When you go into the storage module, it’ll look like this: You can see that it pre-populates different storage package options (1, 2, 3 above), and even the daily average load (4) and energy production (5). Once you choose a package, you can fine tune your system to whatever each particular customer needs in a few key ways, including Backup Load (1 below), Backup Duration (2), Quantity (3) and Model (4) of Batteries, Storage Inverter (5), and Pricing (6). To make things even easier, you (or your account admin) can designate a default battery and storage inverter to be used in all your designs by going to the Settings menu under your name in the upper-right of the app, and then to the Storage tab on the left. To get more details on what we’ve discussed here, and learn more about you can do with Aurora Energy Storage, and how, check out the documentation. And that’s it. No more guesswork, no more Excel spreadsheets. Storage is automatically included in your proposals in a way that makes it a compelling option for homeowners. We’ll be back next week with #7. In the meantime, check out our Aurora Top 10: All In One Place page to see all the other features highlighted in this series and look at the schedule for the remaining posts. Then schedule a live demo to learn more about how these features can help you produce more accurate solar designs.  ​​Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### Understanding the California Duck Curve for Daily Load Projections California’s electricity is supplied from a variety of energy sources, including natural gas, solar, hydro, geothermal, wind, and nuclear. The California Independent System Operator (CAISO) manages the operation of the state’s electricity grid, making sure that the total energy demand on any given day matches the total energy supply from the various sources. In order to continuously balance the grid, CAISO needs to be able to track and predict the volume of energy coming from all the state’s sources. What is the Solar Duck Curve? In response to an ever-increasing volume of intermittent renewable energy—predominantly solar—being installed and added onto the grid, CAISO began preparing for the impacts it will have on net load (or the forecasted electric load minus the expected solar and wind supply). In a 2013 report, CAISO shared a chart that predicted these impacts from 2012 through 2020 that quickly became known as the “Duck Curve” because of its vague resemblance to a duck. The duck curve (shown below) is a snapshot of a 24-hour period in California on March 31. The graph starts with the actual net load profile from March 31, 2012, and March 31, 2013, followed by predictions through 2020 as the amount of renewable energy on the grid increases. The most notable features of the chart are the mid-day drop in net load, then the increase between 3 and 7 pm. There’s a dip mid-day because that’s when the sun is strongest and we get a high volume of energy from solar, and there’s a peak into the evening because solar is no longer a source of energy and there’s an increase in energy demand. The original Duck Curve chart. Source: CAISO Why the Duck Curve is Important CAISO noted that with the anticipated large-scale deployment of solar, the net load’s mid-day dip and evening peak will become sharper and pose challenges to grid management. To reduce the increasing evening peak when energy demand is high, as the chart shows, the solution will require adding other sources of energy to the grid to replace solar, but only during the peak hours. The Impact of the Duck Curve Since the duck curve’s introduction in 2013, it has been used to influence decisions, such as the shift of peak time-of-use pricing in the evening to provide a pricing signal for customers to reduce their electricity consumption during those hours. There have also been additional investments in grid-connected storage, allowing some of the mid-day solar energy to be stored and used later in the day. How Accurate Is the Duck Curve? CAISO’s 2013 duck curve chart used data from March 31st and predicted the net load through 2020. Now that March 2020 is in the books, we can figure out how accurate CAISO’s predictions were. We pulled the hourly load data from CAISO’s website from late March and early April of each year, and compared it against CAISO’s predictions. Note: CAISO did not provide the original methodology to create the duck curve, but we know March 31st fell on a weekend in 2012 and 2013, and it was clear skies for solar and fairly average temperatures across the state. Our comparison will look at days with the same clear-sky characteristics, but not necessarily the 31st of March for each year. Predictions in the Duck Curve Are Really Close When we compare actual net load (color) against the original duck curve (black), we can see that CAISO’s 2013 predictions were very close to actual net load profiles all the way through 2020. The mid-day minimum of net load has fallen lower and lower as California installed solar on over a million rooftops and added over 27 GW of solar energy to the grid. There is a notable morning mini-peak that appears around 7 am starting in 2016, but this is a result of using weekday instead of weekend dates to match the same clear-sky characteristics from 2013 and 2014. But If You Dig in Deeper... Expanding the data and taking a closer look, we do see some changing patterns in the net load profiles. When we plot the actual net load (color) for each day between March 15 and April 15 and compare it against CAISO’s predictions (black), the actual load starts to dip lower than CAISO’s predictions starting in 2017. This means that CAISO’s analysis in 2013 underpredicted the magnitude of the mid-day dip that we are seeing on the grid. Additionally, the duck curve has morphed to include a morning tail bump as well, further complicating CAISO’s grid operations strategy. Final Thoughts on the Duck Curve CAISO’s duck curve proved to be fairly accurate, and although the rate of solar installations slightly outpaced the predictions, the operator has been able to keep California’s grid stable even through challenging times like COVID-19. As California continues to lead the country in installing renewables, we will keep a careful eye on how the duck curve continues to evolve. The original graph was traced to extract the data, so small errors may be present. Data source: https://www.caiso.com/market/Pages/ReportsBulletins/RenewablesReporting.aspx ### Solar Marketing: Using the Internet to Grow Your Brand November is solar marketing month here on the blog and in The Current. As the solar industry gets more and more competitive, making the most of your marketing and brand management resources can set your company apart.  In this four-part email/blog series, we’ll investigate ways that you can use strategic marketing and communications to help grow your solar business. In our first installment, we’ll look at some solar marketing and brand management basics, and see how you can use the internet to your advantage. The Importance of Branding Your brand is the collective perception of your business, and the sum of both your digital and in-person interactions. It consists of everything from your company name and logo, to your communication strategy and messaging. Building and managing your brand is incredibly important, especially in the competitive world of solar.  In this article, marketing expert Katherine Glass shares how solar companies can strategically build and manage their company’s solar brand. Beginner’s Guide to Solar Marketing: 4 Strategies to Jumpstart Your Marketing What are the best ways to position your business for growth in a crowded market? The four marketing strategies covered in this article offer solar companies the foundations they’ll need to jumpstart their marketing program. It offers actionable strategies for marketing and building out your brand to attract more customers.  Brand Communication & Positioning — 5 Ways to Grow Your Solar Business with Facebook Facebook, or “Meta,” I guess, has been in the news a lot lately. While the platform is currently undergoing some changes, having a sound Facebook strategy has long been a tried and true way to showcase your services and communicate with prospective customers.  How To Secure Online Reviews For Your Solar Business Lastly, securing online reviews has always been a key part of any successful solar business strategy. So… how can you develop a sustainable (and positive) review acquisition strategy? Take a look at this article to see how nurturing strong relationships can showcase the value of your solar services.  That’s it for our marketing and brand management primer. We’ll have another solar market focused blog and email next week. In the meantime, be sure to subscribe to our weekly newsletter, The Current, to stay up to date on solar strategy, tech, events, and news. ### Top 10 Things You Didn’t Know Aurora Can Do: #9 - Horizon Shading When you mention shading in the context of a solar installation, most people think of big trees casting shadows down on a homeowner’s panels. While this is, of course, a major aspect of shading, it’s not the only thing installers have to consider. Things like hills and mountains that affect the house’s horizon can also affect a site’s solar profile significantly and must be accounted for. This brings us to the next feature in our series on the Top 10 Things You Didn’t Know Aurora Can Do… Feature #9: Horizon Shading Chances are, when you design a system, you’re mapping all the trees and other obstructions around the house that affect irradiance. But, are you taking that next step and factoring in nearby hills and mountains? Why Horizon Shading is Important  Just like nearby trees and other obstructions, the shade losses from hills and mountains can sap (pun intended) a system’s energy production. What’s more, the shade losses from these horizon effects tend to occur during the “edges” of the day — early morning and late afternoon and evening.  This timing is important for a couple reasons: Evening is generally a peak time for those with time-of-use rates, and morning and evening also happen to be the times of day homeowners tend to check their system’s performance. So, there’s not only very real performance loss, but it’s performance loss that’s especially likely to set off alarm bells with customers. How Aurora’s Horizon Shading Helps Without automatic horizon shading, solar designers have to take some complex steps to account for horizon shading loss. Many solar modeling solutions assume that a project site is surrounded by a flat landscape. To get an accurate measure of horizon shading, then, requires an extra trip to the site to take readings — i.e. pictures. There are tools that help you do this and then output a Horizon File that can be uploaded into design software programs, including HelioScope.  Other options include resorting to creating polygonal structures around a site to model the terrain. Again, this requires an additional site visit to document horizon obstructions, and added design work.  Aurora automates this process. No extra site visits, no uploading files from one system to another, no attempting to draw structures like you’re designing a 1980s video game. How Horizon Shading Works When you generate an irradiance map or run a performance simulation in Aurora, the system  collects over 1 million elevation measurements from the nearby area to create a profile of the surrounding terrain. The resulting 360-degree elevation map is called a horizon profile. You'll still want to model nearby objects using LIDAR or Designer, of course, to capture partial-shading and mismatch calculations. The horizon profile (green) and sun path (yellow) throughout the year for a building with a large hill to the southwest. Then, when Aurora is calculating irradiance, it makes a couple of adjustments: If the sun is below the horizon profile, the beam component of irradiance is blocked.  At all hours, the amount of diffuse light is reduced because some of it is blocked by the horizon. The potential loss from horizon shading is then accounted for and shown in the system losses diagram. A typical loss diagram showing a horizon shading loss of 0.9%. So, instead of added truck rolls and design time, in Aurora, horizon shading just… happens. No step-by-step instructions required for this week’s feature. If you'd like to see it in action, click below to sign up for a demo. We’ll be back next week with #8. In the meantime, check out our Aurora Top 10: All In One Place page to see all the other features highlighted in this series and look at the schedule for the remaining posts.  ​​Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### Top 10 Things You Didn’t Know Aurora Can Do: #10 - Code and Setback Requirements Editor's note: This article was posted in October, 2021. For the most recent information and Aurora features, please visit our "How to Place Fire Pathways" Help Center article. As the solar industry grows, installers face an ever-changing and extremely competitive environment, not to mention a complex web of regulations and incentives. To succeed and grow in this challenging, but fulfilling industry, you have to be able to solve potential problems and respond to customer requests quickly, efficiently, and accurately. Using all the features of your solar design and sales software is a key part of this equation. Of course, it can be difficult to know everything it can do, and in the heat of the moment it can be tempting to just do things manually.  In this series, we’ll count down the top 10 things installers don’t know Aurora can do, and the issues they can help solve once and for all — complete with step-by-step screenshots and GIFs so you can take action immediately.  Feature #10: Code and Setback Requirements Fire setbacks (or, specifically, lack thereof) are the most telltale sign of a novice solar designer. Neglecting to factor them in can result in an overly aggressive design, change orders, and a disappointed customer.  Why They’re Important Sometimes it can seem like every town has its own special requirements when it comes to setbacks for fire codes and other issues. That’s because in many cases it’s true.  Ignoring these requirements or getting them wrong can lead to inaccurate proposals that require change orders, re-work, and even production issues.  Additionally, training every employee on every different code and setback requirement is extremely time consuming, and doesn’t remove the possibility of error. Having to remember this step and account for it in every design is inviting mistakes. And we all know, getting a setback wrong in a design is a surefire ticket to change orders, extra truck rolls, and ultimately delays and added costs. How Aurora’s Jurisdiction Setbacks Help Aurora lets you input setback requirements by jurisdiction into your database, and they’ll be displayed as your employees design individual projects. You can even add extra padding to the dimensions to be 100% confident your designs will work even if the satellite image is slightly off. As an added layer of certainty, the Validation Report will alert the designer if any modules violate those parameters. This not only eliminates a potentially confusing part of employee training, but also eliminates the possibility of manual errors creeping into designs. How Jurisdiction Setbacks Work When you start doing business in a new jurisdiction, simply enter the setback requirements into the interface: Then, when you’re designing a system, the fire code setbacks are clearly displayed: Finally, if an error still sneaks through, you’ll be alerted in the Validation Report: Using these simple steps in Aurora, you start using Jurisdiction Setbacks to eliminate an extremely manual, error-prone process, and change it into something that designers don’t need to think twice about. And with the double-check at the validation phase, you can be sure one more potential cause of change orders is eliminated. If you'd like to learn more about the details, click below to sign up for a demo. This is the first post in our countdown of the Top 10 Things You Didn’t Know Aurora Can Do (and how they can help solve common issues). Check out our Aurora Top 10: All In One Place page to see all the other features highlighted in this series and look at the schedule for the remaining posts. Do you have suggestions for an issue or feature you’d like to see covered? We’ll have some Aurora gifts for any ideas we use. Email us here. ### Solar Business Operations: Emerging Solar Markets The idea of an untapped market sector for solar is a very attractive one these days. Market saturation, fierce competition, and recent unfriendly government policies have put pressure on solar contractors to find innovative ways to maintain growth and differentiate themselves.  Broadening and diversifying your company could give you a long-term competitive advantage, whether from a marketing, financial, or mission-driven perspective. In our final post in our Biz-Ops series, we'll look at resources to help you determine if these markets are right for you.  Making Sense of Commercial Solar: What You Need to Know About C&I For a variety of reasons, commercial solar has been slow to take off, but there are signs that this sector is poised for significant growth. And for those who learn to navigate the complexity of commercial projects, the rewards can be big. A Solar Market Niche You May Have Overlooked: Low- and Moderate-Income (LMI) There’s a growing trend in the solar market that many solar contractors have overlooked: moderate and low-income households as solar customers. As the cost of solar has gone down and financing options have expanded, these communities are becoming a viable niche for forward-thinking solar contractors. Solar for New Construction: Solutions to Enter a Key Emerging Market This article highlights the ways that solar design for new construction differs from traditional solar design. We’ll share real strategies and tools for designing and selling stunning solar arrays for new buildings — whether residential or commercial — so you can confidently pursue opportunities in this market. The Pocket Guide to Selling Solar Storage While most installers offer storage as part of their solar solutions, many don’t have a clear process for how to quote and sell storage to customers. This comprehensive guide covers the strategies you’ll need to position and sell storage more effectively. A Unique Group Purchasing Program Connecting Nonprofits with Solar Customer acquisition is a persistent challenge for solar contractors. Solar group purchasing programs present a unique opportunity for many solar installers to compete for a large collection of solar projects. These programs bring together groups of customers that have decided to go solar, and solicit proposals from contractors to install the PV systems for them. Learn more to see if group purchasing programs would be of interest to your solar company.  This concludes our business operations reading series! Here are the links to each blog in the Solar Business Operations series: The Strategic Solar Pro — Aligning Your Team’s Efforts with Solar TechSolar The Solar Dream Team — Resources for Recruiting Top Solar Talent Permitting Solutions — Tools to Expedite the Installation Process Safeguard Your Business — Navigating Insurance & NEM Updates to Mitigate Business Risk In November, we’ll explore solar marketing tactics to help your solar business identify, nurture, and retain more leads.   In the meantime, check out our Grow Your Solar Business Bundle to learn more tactics for expanding your solar business. ### Solar Business Operations: The Strategic Solar Pro — Aligning Your Team’s Efforts with Solar Tech You’re constantly adapting your solar business to the ever-changing solar market. That means much of your operations probably revolve around enhancing your tech to stay competitive and developing new strategies to meet your customers’ needs.  In our previous biz-ops article, we explored some tools you can use to recruit top solar talent for your company. In this blog, we’ll dive deeper to highlight the Aurora resources that can help you align your team’s efforts with your tech to deliver more optimal solar systems and more happy customers.  Scale Your Solar Organization Seamlessly With APIs As an organization scales, bespoke, cross-team communications become a major choke point. To remedy the workflow issues, many installers turn to CRM and ERP platforms to streamline their communications. But using a mix of management tools, each with their own rules and protocols, can make sharing real-time information between them challenging. That’s where APIs come in. Read more...  3 New Tools to Help You Design Solar More Efficiently To compete in today’s market, solar installers need to improve their operational efficiency or they could get left behind by their competition. Luckily, new tools are rapidly being developed to help both the solar sales rep and the solar designer. This article covers three solar tools that make designing an optimal solar installation faster and easier than ever before. How Solar Irradiance Is Calculated — and How We Made It 30 Times Faster When you sit down to design a solar system, one of the first things you’ll consider is irradiance. This article covers the principles of calculating solar irradiance and reviews some of the computational approaches Aurora takes to make this critical process faster for you. 4 Ways a Solar Design Service Can Boost Solar Sales According to NREL, remote solar design software can reduce solar costs by up to $0.17/W — that’s $850 for a 5 kW system. However, remotely designing a PV system requires a reliable 3D model to provide an accurate calculation of the system’s potential energy production. Fortunately, you don’t have to do this on your own — or even with just your small (and already busy) team. Learn four benefits (aside from time saved) you can experience by supplementing your 3D modeling with a solar design service.  Adopting robust solar technology and integrating automations into your workflow will boost customer satisfaction and empower your team to work smarter, not harder, on future solar installation projects. Using the strategies highlighted above will help your business stay competitive in the ever-evolving world of solar sales. To conclude our business operations reading series, next week we’ll be covering emerging markets and new opportunities for solar business growth. In the meantime, remember to subscribe to The Current, Aurora’s weekly newsletter, to get updates on Aurora articles and events. ### Solar Business Operations: Permitting Solutions — Tools to Expedite the Installation Process As a solar contractor, contending with the complicated and costly permitting process is part of doing business.  Needless to say, the process can be a frustrating obstacle, but is necessary to getting a job completed. Collecting and reporting permit-related project data contributes as much as 30% to overall solar project costs, not to mention the time solar installers have to spend tracking down local jurisdictions and their contact information.  The first blog in our Solar Operations Series reviewed solar insurance options and potentially applicable energy policies to protect your business and mitigate risk. In this installment we’ll explore permitting solutions that can help lower costs and expedite the solar installation process.  SolarAPP: The Solar Permitting Solution You’ve Been Waiting For? Solar Energy Industries Association (SEIA) and The Solar Foundation unveiled the Solar Automated Permit Processing (SolarAPP) initiative which seeks to expedite and lower the cost of solar permitting. In this article, we explore some of the problems caused by the current permitting process and discuss the SolarAPP initiative and what it may mean for the U.S. solar industry. Is Permitting Killing Your Solar Business? Help May Be An Orange Button Away Sunspec Alliance’s Orange Button Project aims to lower the costs of procuring installation permits and simplify the notoriously long and complicated process — for free. Read more to see how you can use the Orange Button Project to streamline and simplify your next project permit.  This solar business operations series has been created in conjunction with The Current, our weekly solar newsletter. Our next article will cover the resources solar employers can use to recruit the best talent for their teams and ensure an inclusive work environment with plenty of advancement.  In the meantime, be sure to subscribe to our newsletter to have blogs and Aurora webinars that will help you stay one step ahead delivered to you once a week (we promise).  ### Scale Your Solar Organization Seamlessly With APIs Andriy Mysyk is the Senior Technical Product Manager at Aurora Solar. He has over 10 years of experience developing new products. His goal is to evolve and ship products that are both valuable (customers choose to buy and use them) and viable (the solutions work within numerous business constraints). At Aurora Solar, we’ve seen a pattern among many of our fastest-growing customers. As an organization scales, bespoke cross-team communications become a major choke point. In addition to being slow, error-prone, and redundant, these manual touchpoints also result in unnecessary spending and lost sales. In the words of one solar executive: “Things work well when our solar sales team is in control of its workflow. That’s why we try to minimize out-of-band interactions between a salesperson and support teams like our in-house design team. Communications just don’t scale as well across cross-functional teams.” Many installers turn to customer relationship management (CRM) or enterprise resource planning (ERP) platforms to optimize their workflows and streamline communications. For example, tools like Salesforce can automatically track and tag prospects throughout the solar buying cycle. But even with the best CRM suites in the world, limitations still exist: Cross-team communication isn’t always supported Your CRM might not work with the other software you (or other teams) use Sales data often lives in different silos — requiring manual data entry A proven way to replace communications that don’t scale is by integrating your CRM with third-party APIs. What Is an API? Most businesses use a mix of bespoke and off-the-shelf software tools to manage their operations. But because each platform is written in a different language, with its own rules and protocols, sharing real-time information between them can be challenging. In fact, “integration” is often done by a person: literally copying and pasting data from one silo to another. A Google Earth image of what would be a very challenging PV system design - Rideau Hall in Ottawa, Canada. An API (or Application Programming Interface) is a software intermediary that allows two applications to talk to each other. For example, many of the more popular solar design and CRM tools use: Weather.com’s API to access real-time and historic meteorological data Google Earth’s API to pull in satellite imagery and maps for each solar prospect’s home address Of course, these are just two examples.  True integration involves connecting all the moving parts together to automate as much of your operations as possible. Let’s say you use Salesforce and would like to automate a workflow that includes building a system design in advance of home visits. Proper API integration would allow the following to happen behind-the-scenes, instantly and automatically: Once on your site, a homeowner fills out a lead form and submits their most recent utility bill statement. Your CRM tags this prospect as a “warm” lead and instructs your CAD software to generate a 3D rendering of a potential installation — based on variables like location, satellite imagery, and insolation. Based on the user’s energy consumption and the PV system’s generation potential, your solar proposal software automatically calculates costs, savings, payback periods, and returns. The homeowner receives a detailed solar proposal via email — complete with an invitation to schedule a free property inspection. This workflow is significantly cheaper since your sales and design teams are only activated when a homeowner books an appointment. Integration is also more profitable since you can easily scale as you convert more customers using fewer resources. In the above scenario, the only true chokepoint is how many Web visitors you can get to fill out your lead form. So why doesn’t every solar installer use APIs? Solar CRM Integration the Hard Way Integrating your CRM with third-party software is often harder than it might appear. For starters, not every platform has an API that you can use. And of the ones that do, integration isn’t necessarily guaranteed: Interoperability issues could make integration impossible Future updates and patches could break legacy code API documentation might be confusing (or absent) You may lack sufficient in-house technical skills These challenges only compound as you expand the number of integrations. With more moving parts, there are more things that can break. One way to resolve this involves centralizing your integrations as much as possible. At the time of this writing, for example, Aurora Solar offers 29 separate APIs for its customers — all under a single roof. Our Approach to Solar Software Integration At Aurora, we specialize in solar design and proposal software to streamline the sales process for our PV installation customers. Our core platform can handle the vast majority of residential and commercial installation needs out-of-the-box, with minimal customization.  However, based on our experience with medium- to large-size solar installers, we’ve developed a set of APIs to sync Aurora with your internal workflow orchestration software, which is often your CRM or ERP. We call this family of 29 separate APIs “Sync API,” and together, it allows you to seamlessly integrate whatever tools you’re already using.  A 3D site model based on a roof plan. With our APIs, for example, your Salesforce account can instruct Aurora to create a project as soon as an opportunity record with a customer’s address is captured. Further, Salesforce can automatically: Request a site model to be built by an Aurora expert Retrieve a design summary when the deal is sold Sync API offers a number of ways to automate many of the most time-consuming aspects of your operations. Imagine having a customer’s project instantly created in your Aurora Solar account every time a prospect fills out a lead form or schedules an appointment. In addition to saving time, automation also helps to reduce errors and redundancies. And it can do this all while providing your teams with visibility into what’s happening in Aurora through deep links in Salesforce. Better still, setting up this type of integration is intuitive — by design: We’ve studied developers’ experiences using Aurora with CRMs and fine-tuned our APIs for speed of development and quality.  Our latest API specification is publicly available at docs.aurorasolar.com.  We mindfully chose to adopt a style of APIs that is easy to use and will likely be familiar to your developers already.   We provide sandbox support so that your developers can both sample and test our APIs using the “Try It” features on docs.aurorasolar.com.  “I feel pretty comfortable in my ability to use Aurora API after reading the docs.” Because of their intuitive design, our APIs let developers design custom CRM integrations with Aurora Solar in days — rather than weeks or months. This speed allows you to quickly automate your address-to-design workflow — saving both money and time.  Below is a diagram of a typical integration that would allow your sales team to do its work with minimal bespoke communications with other teams.  The best part? You can use this same integration for 10s, 100s, or 1,000s of users — making the process truly scalable.  Conclusion Aurora Solar’s API integration capabilities allow you to automate communications between your sales team and the rest of your organization in a streamlined and predictable way. This reduces the number of bespoke communications your sales team has to engage in, allowing them to do what they do best — i.e. sell. If you feel like your existing workflow inhibits scaling your solar organization, consider integrating your own CRM with Aurora. To get started, either visit docs.aurorosalar.com or reach out to your Aurora Account Executive for guidance on what might work best for you.   Featured image by JJ Ying.   ### UPDATED — Solar Business Operations: Safeguard Your Business — Navigating Insurance & NEM Updates to Mitigate Business Risk April, 2023 UPDATE The Net Billing Tariff — commonly known as NEM 3.0 — has taken effect. Please visit our NEM 3.0 resource page all the latest information. Here are some quick links for further reading: How to sell solar in 2023 despite NEM 3.0 California Net Billing Tariff (NEM 3.0): frequently asked questions Should your PV systems face west with California's Net Billing Tariff? Explaining and modeling California's Net Billing Tariff (NEM 3.0) Contact us to quickly run through any additional questions Click above to learn more about selling solar under NEM 3.0. Original blog below How might NEM 3.0 and solar tariffs impact your business? What are some of the important insurance coverages you should consider? In this post we'll explore some of the critical factors that affect your solar operations and how to best mitigate potential business risks and liabilities.  This month, in conjunction with The Current, Aurora’s weekly newsletter, we’ll be covering solar business operations strategies that can help streamline your processes and performance. In this blog we’ll touch on the importance of insurance before diving into what’s happening with NEM.  The Peace of Mind Every Solar Contractor Needs: Having the Right Insurance As a solar contractor, you know better than anyone that your business is vulnerable to a range of possible risks; from residence damages to worker injuries, to even a truck running off the road. This article discusses important insurance considerations for solar contractors and specific coverage types to protect your business. Module-Level Rapid Shutdown: New Requirements for Fire Safety You’ve likely heard about rapid shutdown requirements. But what are they and do you know how to comply? In this article, we tackle what you need to know to design safe and legal PV systems in areas with these requirements.  Leading Through Turbulence and IRA Opportunities With NEM-3 finalized, it's time to look forward. Check out this webinar to see how you can take advantage of the IRA, and keep your company strong during uncertain economic times. That’s it for this week. In our next article, we’ll examine some resources that can help you recruit the best talent for your teams, keep that talent around for the long haul, and ensure an inclusive work environment with plenty of advancement.  ### Solar Sales: From Pitch to Proposal — Strategies to Improve Your Lead-to-Win Rate This month on the Aurora blog and in our newsletter The Current, we focused on all aspects of solar sales. The techniques covered in this series are intended to improve your proposals, make your sales techniques more effective, and help lower your customer acquisition costs. Here are the links to each blog in the Solar Sales series: Game Changing Tech — The Ultimate Toolkit for Streamlining Solar Sales Communication Is Key — How to Lower Your Customer Acquisition Costs How to Effectively Engage & Communicate with Your Leads In this bonus final edition, we’ll explore ways you can reframe your sales pitch to address your leads’ hesitations and write winning proposals specifically tailored to their needs.  The 3 Questions Your Solar Sales Pitch Needs to Answer Certain factors can curb your leads' solar enthusiasm unless the advantages and specific selling points are well laid out beforehand. If you focus on key upsides early on, you’re more likely to win the customer’s business.  How to Handle the “Now is Not a Good Time” Objection in 3 Steps In this article, we'll review common objections and techniques for working with the homeowner on their hesitations to instill customer confidence in solar. What Makes a Solar Sales Proposal Successful? 5 Tips for Proposals that Close After you’ve designed and compiled the solar proposal, your customer sits down to choose between you and your competitor. So what does your proposal say about you — and what can you do to make it as strong as possible? Get our 5 tips for creating a winning sales proposal. Practical Strategies for Closing More Residential Solar Sales In this webinar, you’ll learn how to reframe the sales conversation to highlight the key benefits for your customer. Find out how to make your sales “stickier” and reduce the likelihood of cancellations.  That wraps up our Solar Sales series. Make sure to check back soon, and subscribe to The Current, for our next monthly series: improving your business operations strategies to reduce risk and improve efficiency. ### How to Estimate a Homeowner’s Energy Load Profile An energy load profile, or consumption profile, is essential to determining the value that a solar installation will provide—and thus to effectively selling solar to potential customers. We discuss what an energy load profile is, why it influences financial returns for solar, and how to model one. When communicating the value of a solar installation to a potential customer, showing them accurate financial returns is extremely important.  In order to accurately forecast the financial return of a solar system, you need to know exactly how much energy the customer uses. What is an Energy Load Profile? An Energy Load Profile is a graph of your customer’s electricity usage on a daily and/or seasonal basis. It will display the variation in a customer’s electrical load versus time. The graph varies as we use energy more at on-peak times versus off-peak times of day (mainly when we are home using energy or away from home/sleeping). Same with seasons — we use more energy during the summer and winter to cool and heat versus the more pleasant spring and fall.  Why Load Profiling Can Be Difficult In certain parts of the world, the process of determining a solar project’s financial return is simple and separate from the customer’s energy consumption. Many countries use Feed in Tariffs which pay the owners of solar systems a set amount for each unit of energy produced. Net Energy Metering But in the US, the majority of residential solar installations are on a Net Energy Metering regime, which means that their utility bill is adjusted based on the energy the solar installation produces. Another way of looking at it is that their utility meter turns forward when energy is used, and backward when excess solar energy is sent to the grid. Time of Use Rates This structure is further complicated by the fact that in many cases — especially for commercial customers—the price of energy differs based on when you use it (these are called Time of Use Rates). Utilities also charge customers different rates for electricity based on how much they use (Tiered Rates). Figure 1: An example of Time of Use rates, showing higher energy prices at times of higher energy demand. Why Do You Need a Load Profile? Because of these variations in the cost of energy at different times and different levels of consumption, just knowing a potential solar customer’s bill before they install solar is not enough to enable an accurate assessment of how much money they could save with solar.  You also have to know when the customer was using electricity, and how much electricity they were using. You need to know this for every hour of the day, and every day of the year. This information makes up their energy load profile. Figure 2: An example of an estimated energy load profile in summer for a residential house in Stanford, California with air conditioning, electric heat, and LED lighting. Once you have this data showing energy consumption for each time of the day, you will need to determine how much energy your PV system will produce for those same hours and days of the year (which Aurora’s industry-leading performance simulation engine can determine for you).  By subtracting the amount of energy produced by the solar installation from the amount of energy consumed by the household, you can determine how much, and when, the customer will actually need to purchase from the utility. This time-varying consumption profile will form the backbone of the financial analysis of the value your solar design will provide. Being able to show a customer the detail behind this analysis will help them understand—and be confident in—the financial savings solar can provide. How Is an Energy Load Profile Determined? Determining a customer’s energy use across each hour and day of the year and organizing it in an easily interpretable format is not easy. That is why Aurora developed its interactive Consumption Profile tool. One of the best ways to determine a customer’s load profile is to upload their “Green Button data.”  What is Green Button Data? Green Button data is a way that utilities provide customers with detailed information documenting their energy consumption at set (typically 15-minute) intervals throughout the day. Green Button data provides the customer’s actual load profile for a period of time in the past (for however long you have data).  If you have Green Button data, Aurora’s Consumption Profile tool imports and sorts it for you with the click of a button. Manual Load Profile Estimates If you don’t have Green Button data, our tool can quickly and easily estimate a load profile with the entry of some additional details.  While it is possible to manually estimate a load profile, it is a challenging and time-consuming process—and without a deep knowledge of the process, there is a lot of potential for mistakes.  With Aurora’s Consumption Profile tool you can automate this process, increasing accuracy and saving a considerable amount of time. What Makes up a Load Profile?  To understand the variables that go into estimating an energy load profile, let’s review some of the different factors that influence a customer’s energy consumption at different times. What Variables Affect a Load Profile? There are a wide number of factors that affect how much energy a home uses and when that energy is consumed. Without Green Button data, a load profile must be estimated based on the building’s characteristics.  In order to create an energy load profile that is accurate—and thus provide accurate financial analysis to your customers—it is essential that all of these factors be taken into account in a systematic way. Utility Bill A utility bill from the client is an important starting point in developing an energy load profile because it can provide the first data points for how much energy they are using, and what rate they are billed at by their utility.  In Aurora, you can enter data from one month’s bill (bill amount or total amount of energy used), or as many months as you have from the customer, and Aurora will use that to extrapolate estimated energy use for other months. Figure 3: Aurora’s Consumption Profile tool uses bill amount or total energy consumption for one month, or as many months as you have data for, to estimate energy consumption throughout the year. This is supplemented by additional information about the building for increased accuracy (as we will discuss below). Location The location of the building is one important factor because the local climate will influence the demand for heat or air conditioning at the site, and the amount of daylight at different times of the year will impact the demand for electric lighting.  Whether the building has air conditioning, and what type of heat it has (electric or other) will influence how much much energy the customer uses at different times of the year. Take for example the case depicted in Figure 2 below, which shows the different estimated consumption profiles for the same house in Stanford, California with gas or other non-electric heat (top) versus if it has electric heat (bottom).  The orange section in the image on the right shows the proportion of electricity consumption that heating comprises. As you would expect, electric heat contributes significantly to electricity consumption. Figure 4: Estimated annual load profile for the same house in Stanford, California with gas or other non-electric heat (left), or with electric heat (right). Lighting Other factors that impact an energy load profile include the type of lighting (incandescent, fluorescent, or LED) and type of hot water heating.  Less Common Factors Additionally, two less common factors that have a very big impact on energy consumption are whether the customer has a pool (pools use a surprising amount of energy, partially because of the energy needed to pump and filter the water) and whether they have an electric vehicle. Figures 5 – 7 illustrate the impacts of some of these factors on load profile. Figure 5 compares the load profiles of incandescent lighting versus more efficient LED lighting (top and bottom respectively), and Figures 6 and 7 show the impacts of an electric vehicle and pool respectively on load profile if the house has LED lighting. Figure 5: Estimated annual load profile for the same house in Stanford, California with incandescent lighting (top), or with more efficient LED lighting (bottom). Figure 6: The load profile of the same house with an electric vehicle with no air conditioning, non-electric heat, and LED lighting. Figure 7: The load profile of the same house with a pool, with no air conditioning, non-electric heat, and LED lighting. How Getting a Load Profile Right the First Time Can Increase Your Sales When you’re able to accurately forecast your customer’s energy usage through their load profile, you’ll show them the value in solar installation. When the load profile turns out to be accurate, it builds trust with your customers and helps them make more efficient use of their energy. They’ll know the value of solar because they can see it with real data. This leads to more sales. How to Estimate a Load Profile? It’s Complicated. As you can see, a home’s load profile can vary significantly depending on the characteristics of the home. As a result, when estimating a load profile it is important to enter as much information as possible to maximize accuracy or use Green Button data.  It should be noted that an estimated load profile cannot account for future changes in the homeowner’s behavior—like upgrading to more energy-efficient appliances or setting the air conditioning to a lower temperature—that may affect how much energy they use. However, it can provide a strong, data-backed estimate based on their current behaviors and home energy demands. Let Aurora Do the Work for You Aurora has made it easier to ensure that your estimated energy load profile reflects actual consumption patterns, by incorporating robust data about how different home characteristics (air conditioning, lighting, electric vehicles, etc.) typically affect energy consumption at different times of the day.  This typical load profile is then tailored to account for average local weather patterns and the home’s total monthly energy consumption (based on their utility bill). With an accurate energy load profile, you can precisely assess the financial benefits that adopting solar will provide to a homeowner. Key takeaways An energy load profile shows how much energy a building uses at each time of day across each day of the year. Financial savings are a major motivator for many people who consider going solar. With an accurate energy load profile, you will be able to quantify the real savings that your solar design will provide to a customer. A customer’s consumption profile can be obtained using their Green Button data (a log of their energy consumption over specific, typically 15-minute, intervals). If you do not have Green Button data, you can create an estimated load profile with electricity bills and information about the characteristics of the site (whether they have air conditioning, what type of heat and lighting they have, etc.). Aurora’s load profile tool automates this process, making the development of a load profile faster and more accurate. ~~~ Want to be in the loop on our latest articles? Click here to subscribe to our blog! ### Solar Sales: Game Changing Tech — The Ultimate Toolkit for Streamlining Solar Sales The solar industry runs on technology, whether it’s the panels you're putting on roofs or the solutions you’re using to sell and design PV systems. The technology that helps power the solar industry is changing quickly, and the processes that worked for your sales team three years ago may no longer compete in today’s market. This month on the blog and in The Current, we’re focusing on all aspects of solar sales, which technology is certainly a big part of. So far, we’ve taken a deep dive into types of consumer behaviors and how to tailor sales tactics based on them and explored how to avoid common (and costly) mistakes with leads and referrals by using different communication techniques.  To conclude our solar sales month series, in this post we’ll be exploring best practices for teams looking to streamline their sales process and scale in the age of remote and hybrid sales. As part of it, we’ll highlight the best solar software features businesses need to stay ahead of the curve.  How to Optimize Your Solar Sales with Proposal Templates You know it’s critical that your solar sales proposals are compelling. After all, they’re the tangible communication of why a customer should choose your company instead of your competitors. But it’s not enough just to know what makes a proposal effective — you also need an efficient process for developing them.  In this article, we share some of the ways you can use templates to make creating the perfect proposal a seamless process. 14x Revenue Growth in Solar? Start by Improving and Automating Your Workflows Inefficiencies cost the average solar project $7,000. Read on to see how you can scale faster and eliminate costly inefficiencies from your sales process. A Resource Guide to Remote Solar Sales From essential technologies to creating an effective lead generation strategy, this guide covers all the basics you need to make your remote solar sales process a success. The Big Book of Solar Software Must-Haves Choosing your solar software is one of the most important decisions you’ll make for your business. In many cases, choosing the wrong software can stifle your business, while choosing right can help you scale beyond your expectations. In this guide, we break down the solar software features that work best for sales professionals, plus 13 bonus features that can accelerate your business with smart automations.  What Technology Are Solar Installers Using To Win in 2021? To discover how solar installers are adapting to the new economy, we launched our Solar Technology Benchmark Survey. After hearing from over 600 installers about what technology solar installers are using, we decided to write an article highlighting the best technology solar pros should use to boost sales.  Be sure to subscribe to The Current, Aurora’s Friday newsletter, so that you can receive all of our best resources, events, and solar updates straight to your inbox. And stay tuned to find out what our theme will be for next month! Here are the links to each blog in the Solar Sales series: Communication Is Key — How to Lower Your Customer Acquisition Costs How to Effectively Engage & Communicate with Your Leads From Pitch to Proposal — Strategies to Improve Your Lead-to-Win Rate Questions about our series or suggestions for what you’d like to see? Drop us an email and let us know.   Featured image by rupixen.com. ### Solar Sales: Communication Is Key — How to Lower Your Customer Acquisition Costs According to SEIA, nine out of ten Americans support the growth of solar and a majority favor renewable energy over fossil fuels. Yet that support doesn’t always translate into action. So how do we communicate to prospective solar buyers in a way that drives sales? This month on the blog and in The Current, we’re focusing on all aspects of solar sales: from knowing your customers, to sales techniques, to tools to help you do the job. Last week, in our first post, we took a deep dive into types of consumer behavior and how to tailor sales tactics based on them.  This week, we take the next step and look at different ways to engage potential customers. We’ll explore how to avoid common (and costly) mistakes with leads and referrals by utilizing powerful communication techniques to lower your overall customer acquisition costs.  Turning Solar Support Into Solar Sales: 5 Tactics for Effective Communication Try incorporating these 5 key strategies into your solar sales efforts to connect with new audiences and convert more prospects into customers.  Engage Solar Leads with the Right Use of Choices You know well that too many choices can actually be harmful when selling solar. Here’s how you can avoid offering too many choices while giving your customer a comprehensive and thoughtful number of options.  How to Effectively Address the Competition in Your Solar Sales When discussing options with your leads, it is important to know how to address your competition. This article contains common mistakes to avoid and helpful communication tips you can use when discussing your competitors with your leads.  Boost Your Solar Sales Success with Faster Lead Follow up Customer acquisition is one of the biggest challenges for solar companies and one of their most significant costs. This means that when you connect with a prospective customer it’s critical to avoid mistakes that could cost you the sale.  Avoid Lost Solar Sales by Understanding Leads’ Perspectives Another way to avoid a lost sale is by better understanding your leads. The increasing competition and market saturation in the solar industry means that sales pros need to use their most effective strategies when trying to win prospective customers. This article explores the problems associated with assuming prospective customers share your opinion about solar and how to understand their needs to close the sale.  Why and How to Keep in Touch with Past Solar Customers Since leads are such a valuable commodity for solar contractors, it is vital to avoid the mistake of losing contact with past customers, particularly ones who have had their system for a long time. Keeping in touch with previous customers can also help you acquire new referrals, and boost your company’s reputation in the market.  Stop Missing Out on Solar Customer Referrals According to Nielsen, 83% of surveyed consumers say recommendations from people they know are their most trusted source of information. Get the referrals you need and lower your customer acquisition cost by using these techniques.  Don’t Give Up Too Soon on Solar Leads or Referrals You know that sometimes your quality leads are interested in solar but aren’t in the place to buy just yet. Timing is everything. In a two-year study about customer acquisition in the solar industry, the National Renewable Energy Laboratory (NREL) found that it is common for solar contractors to give up too soon on referrals from past customers, as well as some of their leads, whereas persistence and follow-up can generate additional sales.  The final article of our communication series, then, covers the benefits of strategic outreach to leads and referrals over the long term.  Next week, for our final sales series post, we’ll examine how to transform your team’s efficiency and optimize your sales funnel with solar software. You’ll get solar software pointers, and learn remote sales strategies to help your team identify qualified leads faster and reach them when they’re ready to buy.  In the meantime, to get more information about what’s going on in the solar industry, subscribe to The Current.  Here are the links to each blog in the Solar Sales series: Game Changing Tech — The Ultimate Toolkit for Streamlining Solar Sales How to Effectively Engage & Communicate with Your Leads From Pitch to Proposal — Strategies to Improve Your Lead-to-Win Rate Questions about our series or suggestions for what you’d like to see? Drop us an email and let us know. Featured image by Possessed Photography. ### Solar Sales: How to Effectively Engage & Communicate with Your Leads Solar businesses spend so much time and effort generating leads, that when you get them you have to make sure you convert them to sales. Using techniques like engaging them effectively and communicating with them clearly can help you turn more of your leads into satisfied customers. In conjunction with The Current, our weekly solar newsletter, we’re dedicating September to helping you boost your solar sales. We’ll have insights and recommendations from industry experts, and each week, we’ll post resources that offer actionable advice to help lower your customer acquisition costs and improve your lead-to-sale process.  This week, we’ll explore ways to lower your customer acquisition costs with behavioral insights and effective communication techniques.  Increase Solar Sales Success with the Diffusion of Innovations Theory According to the Diffusion of Innovations Theory, the consumer’s process for adopting an innovation occurs in five stages as a result of media communication and peer interactions. Find out where your lead is in the adoption stage and how you can best emphasize solar’s advantages — no matter where they are on that path. Solar Sales Insights from the Theory of Planned Behavior Next, see how strategies like educating consumers by making them more aware of incentives like rebates, declining prices, and lease options, and using positive peer pressure can help convince them to adopt solar. Solar and the Environment: Surprises from the Value-Belief-Norm Theory The value-belief-norm theory (VBN) argues that pro-environmental behavior is driven by values — social altruism, concern for other humans, biospheric altruism (concern about other species and earth’s biosphere), and more. For many solar contractors, this is not news. However, there are nuances to this connection. Being aware of the various factors at play and how they influence your prospects can help you make your sales and marketing efforts more effective and avoid the pitfalls of assumptions about what prospects value. Check out the whole article to learn more.   Common Residential Solar Myths and How to Overcome Them Every solar installer is faced with customer objections on the way to closing that deal. Knowing how to address common objections — even if they’re not based in fact — can turn a “no” into a “yes”. See some common myths that solar customers have, and how you can use facts to turn them around. Next up in our series, we’ll look at how to tailor your communications to ensure you aren’t missing out on referrals or interested leads. The techniques covered in this series will help you improve your proposals, make your sales techniques more effective, and lower your customer acquisition costs. In the meantime, to get more information about what’s going on in the solar industry, subscribe to The Current.  Here are the links to each blog in the Solar Sales series: Game Changing Tech — The Ultimate Toolkit for Streamlining Solar Sales Communication Is Key — How to Lower Your Customer Acquisition Costs From Pitch to Proposal — Strategies to Improve Your Lead-to-Win Rate Questions about our series or suggestions for what you’d like to see? Drop us an email and let us know. ### Solar CEOs Speak: Solar Sales Lessons for 2021 and Beyond COVID-19 impacted nearly every sector of industry and business, with solar being no exception. The pandemic forced many photovoltaic (PV) installers to re-envision how they operated, and led them to think about how the industry as a whole could change for the better. Now, with some restrictions easing [fingers crossed], installers have started to envision what their slice of the solar industry might look like in a truly post-COVID world. But, before we move on, it’s important to see what we can learn from these past 18 months (and counting).  These lessons were one of the topics of conversation at Aurora Solar’s Empower Virtual Summit. During the course of the View From the Top: What Industry Leaders Are Doing In 2021 and Beyond's Q&A, the panelists had some especially keen insights into how to improve solar for everyone going forward. You can watch the whole session by clicking above. In this post, we'll drop in on their discussion to investigate a few of the major lessons installers have learned about solar sales — specifically lessons that were highlighted by the pandemic — that will inform their processes moving forward. (Responses have been lightly edited for length and clarity.) Lesson 1: Customer education is key The first issue many CEOs mentioned was continuing to educate customers on the benefits of solar. While experienced installers realize this is by no means a new issue, or exclusive to selling during the pandemic, there are still misconceptions out there.  Logan Landry, CEO, Sigora Solar  There are still far too many misconceptions. People think that they can’t afford solar, that it’s expensive, that it’s not as efficient as it could be…  We could have spent all the money we liked on generating digital leads. But if those misconceptions were there, those folks were not necessarily going to click on any of those ads. From a grassroots level, what has been most successful for us, and as well as many other companies across the country, is door-to-door. You’re getting in front of people and having the ability to explain to them why solar will work for them… Door-to-door sales is still, obviously, a huge part of the solar sales process. These days it’s also critical to make the most of your remote sales opportunities to dispel some of these myths. Lesson 2: Set expectations and simplify the process While customer education is a high hurdle, Atul Raj of V3 Electric also pinpoints that solar projects can be slow going, even after the customer signs on the dotted line. This means that setting clear expectations is important to keeping customers satisfied, and that we all need to do more to streamline the solar process. Atul Raj, President & COO, V3 Electric  It’s critical that expectations are clear to the customer, and that you communicate and make sure the customer is getting accurate, timely information about their project. It’s faster to buy a house than it is to get a solar project done on your house… You can buy a house from start to finish in 30 days, but in most parts of the country you can’t get a solar project done in 30 days. … We have to figure out how to get the process down to 15 days from the sales process to install. The industry has to simplify the experience from sales to permission to operate — especially for residential customers. [Right now], it’s long, it’s cumbersome, there are a lot of loopholes and obstacles.  Lesson 3: Use technology to help At its best, technology helps us automate many of the most time-consuming and expensive aspects of business. This has been especially true as salespeople and others have been forced to upend their usual processes and rely on technology more than ever. Yan Purba, CEO of Infinity Energy believes that the industry’s future will be powered by emerging technologies including AI, machine learning, and a growing suite of digital tools that are purpose-built for solar installers.  Yan Purba, CEO, Infinity Energy [Solar] is a complex process. Something I’ve learned about is the 45-plus steps to get to PTO and interconnect. We’ve really broken those down and looked at what’s taking the most time, and at the waste inside of those processes. Then we look at, “How can technology automate some of those things?” For example, with Aurora, our design process went from 25-30 minutes down to 10 minutes. And we’re doing that with the help of labor distribution.  In the end, for 2021, I think the theme of efficiency — and “waste management” if you will — will end up becoming a better customer experience, a better rep experience, and even employee experience. When we can do things efficiently, work smarter not harder, everyone wins. Lesson 4: Don’t forget empathy Gilbert Campbell, CEO of Volt Energy, makes an important point that we can all tend to forget as we go about our daily lives: We’re all people. It’s been a rough year, so taking a step back for a minute can really help us be prepared to step forward. Gilbert Campbell, CEO, Volt Energy There’s so much that happened in 2020; it was just a heavy year. How do we navigate through that… I had to sharpen a toolset, which is empathy.  You have to make sure your employees are safe, their families are safe. For your clients — we’re in the midst of a pandemic, we don’t know what’s going to be open, how people are going to handle their kids. It’s not the appropriate time to [hard] sell potential customers on solar from a certain perspective. It took organizations a while to get their footing, to make sure their employees were safe, what their protocols were going to be. I think during that period, just having empathy and understanding of what everyone was dealing with worldwide was the most important thing. Business is important, but family and health takes precedence over anything else. What will solar sales look like moving forward? This was just a small part of the conversation the panel had at Empower. To learn more strategies and technology that can help installers improve their business going forward — and see one of the CEOs get put on the spot to do a sales pitch of his own — check out the full session replay.    Featured image by Jeremy Zero. ### Understanding PV System Losses, Part 4: Solar Panel Tilt, Solar Incidence Angle, and More Being able to give your solar customers accurate estimates of how much their solar installation will produce is essential. But there are many factors that impact how much the PV system will produce–from physical characteristics of the components and design to environmental factors like shade and dust. In order to deliver accurate production estimates, it is crucial to understand what factors reduce the energy production of your installation (PV system losses)–and by how much. In today’s article, the latest installment of Aurora’s PV System Losses Series–in which we explain specific causes of energy production loss in solar PV systems–we explore losses from tilt and orientation, incident angle modifier, environmental conditions, and inverter clipping. Unlike the previous three articles, these values are automatically computed rather than manually entered, but we will discuss methods to mitigate them. About This Series In this series, we provide an overview of various causes of energy production loss in solar PV systems. Each article will explain specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discuss why they affect system performance.   For Aurora users, this series will provide tips for improving the accuracy of your performance simulations by sharing research-backed recommendations for what values to input in your Simulation Settings for different loss types. While Aurora provides default values for these fields that fit most use cases, this series will also highlight cases in which you might want to use different values depending on the specifics of your design. (For a quick summary of system losses, and how to configure your account settings in Aurora, see the Aurora Help Center.) This guide for picking better loss values will help you give your customers the most accurate estimate of how much their system will produce and how much they can save by going solar. Click above to download our full guide to PV system losses. Solar Panel Tilt & Orientation The placement angle of the solar panels impacts the amount of total irradiance received on the system over the course of a year. Ideal Solar Panel Tilt As a rule of thumb, placing panels at a tilt equal to the latitude of the installation and facing towards the equator will maximize the amount of incident irradiance on the panels over the course of the year. How do we know this? Aurora keeps track of the optimal tilt and orientation for each weather station, and we've based our advice on this data. Looking at the charts below, the maximum output is strongly centered at equator-facing and there is a linear fit between optimal tilt and latitude. The optimal tilt is typically a few degrees less than the station latitude. However, the difference between these values increases at higher latitudes so installers at latitudes above 45 degrees latitude won’t be able to use that rule of thumb as effectively. Optimal azimuth of projects at different latitudes (frequency refers to the distribution of projects within each latitude, based on the latitude of the local weather station).  There is a relatively linear relationship between station latitude and the optimal tilt for solar panels to reduce tilt and orientation losses. Blue dots are projects in the southern hemisphere and green are projects in the northern hemisphere. Takeaway: Where the conditions of the project site allow, setting the tilt of panels close to the latitude of the installation and facing towards the equator helps maximize the incident irradiance, though it’s best to use a modeling software that will allow you to precisely quantify these differences and weigh them against other design considerations and what is practical at the site. Solar Incidence Angle In the solar world, an incidence angle refers to the angle of the panel’s surface compared to the sun’s rays. Understanding solar incidence angles is important in getting high output from your PV system, as the angle can impact the amount of sunlight that gets through the glass front of your panels. Incident Angle Modifier Incident Angle Modifier (IAM) loss accounts for lower transmission of light through the glass front of a solar panel when the sunlight enters at an angle. Aurora models the Incident Angle for all hours of the year, using the position of the sun and the orientation of each individual module. We use the De Soto model to determine how much of the sunlight hitting the front face of the panel makes it through the glass. Based on the aggregate performance simulations, the typical IAM loss is between 3% and 4.5%, but rarely greater or lower. IAM losses generally increase when tilt and orientation losses increase. In most cases, IAM losses range from 2-4%. IAM losses and Tilt and Orientation Losses are correlated. Takeaway: Where possible, tilt your modules at a little less than latitude, and orient them towards the equator to reduce Incident Angle Modifier losses (as with Tilt and Orientation losses). However, this may not be practical on residential rooftops. Environmental Conditions Environmental conditions loss encompasses a range of losses related to the irradiance and temperature on modules. Two major ones are shading mismatch between modules, where fully-exposed modules are hindered by partially shaded modules on the same string, and cell temperature losses where higher operating temperatures can lead to lower panel performance. Shade Mismatch — an Example Consider a case of a home that has space for modules on two parts of its roof, one which is fully sun-exposed and one which is fully sun-exposed most of the time, but has some shading during part of the year or during late afternoon hours. If modules are placed on these two sections and placed on the same string, the partially shaded modules will not only lose some production to the shade, they will reduce the production from the fully-exposed modules. An example of a solar project site with six modules on one roof face, which receive full sun, and 3 panels on another roof face that are partially shaded. This setup will have shade mismatch if all the panels are on the same string. How to Solve Shade Mismatch There are a few ways to isolate the effects of shade mismatch: adding DC optimizers to the system, using microinverters, or putting the modules onto a different MPPT on your string inverter. In this example house, adding DC optimizers to the string decreased the environmental loss from 11.2% to 5.7%. Monthly production values for systems that experience partial shade, with avoidable shade losses noted in the gray and green striped section. Takeaway: It’s important to use a PV production modeling program that assesses the hour-by-hour shading on solar panels in order to accurately account for irradiance mismatch between panels on the same string. Create the perfect PV system design for your client in 3 hours or less. Schedule a demo to see how. Temperature Coefficients The hotter a solar panel gets, the less efficient it becomes. The causes are grounded in physics, with a detailed explanation available here. In short, higher cell temperatures reduce the amount of available energy from absorbed photons as they flow through the solar panel. Each model of solar panel is tested to obtain temperature coefficients that describe how its efficiency declines as temperature increases. Most silicon crystalline modules have a power coefficient between -0.30% to -0.45% per degree Celsius increase in cell temperature. We took aggregate data from Aurora’s performance simulations and examined the trend of environmental loss (including temperature losses and other factors) against the mean temperature during daylight hours. The chart below shows the mean loss for solar panels having a coefficient of -0.30% ± 0.05% and -0.45% ± 0.05% respectively, along with the standard deviation. The gap between these two types of modules is around 2% in cooler weather, but grows to about 4% at higher temperatures. Mean losses for solar panels having a temperature loss coefficient of -0.30% ± 0.05% (blue) and -0.45% ± 0.05% (orange) respectively at different temperatures. Brackets denote the standard deviation. Takeaway: If you’re looking to improve system performance in a warm climate, consider using modules that have a lower temperature loss coefficient, or try increasing the amount of space for airflow. Inverter Losses & Clipping Inverter Losses Inverter efficiency describes how well a solar inverter converts DC energy into AC energy. Most inverter spec sheets have a few numbers–a maximum efficiency, and a weighted efficiency value (established by the California Energy Commission or a European agency) that is indicative of how well an inverter performs over a range of inputs. Inverters have a variable efficiency based on what amount of capacity they are carrying, often peaking around 20% and falling slightly as the load reaches the maximum input rating. Your exact inverter efficiency will change based on the PV system–for example, a system with an oversized inverter will operate at higher efficiencies more often than the same set of panels with a smaller inverter–but the variation is small. Takeaway: If you’re worried about inverter losses, consider selecting a device with a higher maximum efficiency and you’ll be set. Inverter Clipping We previously discussed inverter clipping in depth in another Aurora blog post, but as a refresher, when the output from the direct current (DC) solar panels at their maximum power output (or maximum power point) is greater than the amount of DC power the inverter can convert, the inverter will operate at a non-optimal point on the I-V power curve so that it only outputs its rated maximum power. The amount of kWh production lost (or “clipped”) compared to what the system would have produced had it not been limited by the inverter rating is called inverter clipping. (Aurora tabulates these losses in the “Inverter Clipping Loss” section of its system loss diagrams.) Inverter clipping is not a constant value across the day–clipping losses tend to occur only when the sun is high in the sky (reducing IAM losses), and on sunny days (less shading from clouds). Our Findings We analyzed the amount of clipping loss as a function of the DC-to-AC ratio for a variety of commercial systems designed in Aurora, with grouping based on the amount of sunlight on modules throughout the year–that is, the amount of sunlight reaching panels after tilt, orientation, shading, snow, and soiling losses are accounted for. The chart below shows that systems receiving more irradiance (sunnier climates, low shade) start experiencing clipping around a 1.25 DC-to-AC ratio, while systems in cloudier climates, non-ideal orientations, or with shade don’t see as much clipping until about a ratio of 1.35. The percentage of inverter clipping at different DC-to-AC ratios, depending on the annual irradiance at the project site (denoted by the different colored lines). Takeaway: While there are scenarios in which inverter clipping is acceptable (including trying to increase energy output during morning and afternoon hours, reducing inverter costs, or providing a more level energy output during intermittent clouds), if you are trying to design a system to minimize inverter clipping it’s important to understand the conditions at your site and adjust accordingly. Aurora’s quick PV simulations and loss diagram can help you achieve that target faster. Key Takeaways Where the conditions of the project site allow, set the tilt of panels close to the latitude of the installation and face towards the equator. Understand the conditions at your site and adjust accordingly to prevent inverter clipping. In a warm climate, use modules that have a lower temperature loss coefficient, or increase the amount of space for airflow. Use a PV production modeling program that assesses the hour-by-hour shading on solar panels. We hope this synopsis of some important causes of reduced energy production from your solar PV systems–tilt and orientation, incident angle modifier, environmental conditions, and inverter clipping–helps you maximize the output of your systems. About Our PV System Losses Series This article is part of Aurora’s PV System Losses Series. Each article explains specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discusses why they affect system performance. Understanding PV System Losses, Part 1: Nameplate, Mismatch, and LID Losses Understanding PV System Losses, Part 2: Wiring, Connections, and System Availability Understanding PV System Losses, Part 3: Soiling, Snow, System Degradation Understanding PV System Losses, Part 4: Tilt & Orientation, Incident Angle Modifier, Environmental Conditions, and Inverter Losses & Clipping Want all this info in one handy package? Download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. ### Solar Fundamentals: Making Sense of Kilowatts and Kilowatt Hours There are many things to understand when you're considering going solar. In fact, some of the most basic concepts around the electricity panels generate, and we use, are often the most misunderstood.  When you get a solar estimate, or you read a story about a new plant coming online, the system size is generally listed in kW. When you see your electric bill, the power you’ve used is usually stated in kWh.  As with terms like AC and DC (alternating current and direct current), these acronyms get thrown around a lot, but the homeowner often doesn’t quite understand what they mean [raises hand]. So, following our AC/DC explainer, we thought an introduction to kW and kWh could help further reduce some of the mystery of solar installations. How do we get to these terms, and what do they mean?  Measuring Energy: Watts, Amps, Volts Watts are how we measure electrical power. Electrical power, of course, is what we use to run all those devices we use. It’s also what the panels on your roof, or in that field by the highway, generate  In the simplest terms, one watt is one unit of electrical energy or power, whether you’re using it or producing it. The equation used to determine power is: Power (Watts) = Current (Amps) x Flow (Volts) Visualizing Watts, Amps, and Volts  A common analogy that can help make this a bit more understandable is to think of electrical potential like water in a tank, as shown in the diagram below. Source: Wilderness Labs Having a higher water level is like having higher voltage — there is more potential for something to happen. Electric current (measured in amperes, or amps) is defined as the rate at which the charge is flowing. In our example above, the water flowing out of the tank through the pipe is comparable to the current in an electrical circuit. A wider pipe, like the one on the right, allows more water to flow, just like a higher amperage allows for more power at the same voltage. Power (P), then, is the rate at which energy is transferred. As our equation above states, it's equivalent to voltage times current and is measured in watts (W). And, as shown in the diagram, the rate is proportional: If you cut the voltage in half, but double the amperage, it’s the same amount of power. (For a more in-depth explanation, check out our post on solar panel wiring basics.) Standard Voltage and Amperage In the U.S. and Canada, the standard voltage for your outlets is 120 volts. The power enters your home at 240 volts, and is then split at your main circuit breaker into two 120-volt feeds which are then routed to your outlets. Most homes in the U.S. are wired with a combination of 15-amp and 20-amp, 120-volt circuits. A typical home circuit board. (Source: Wikimedia Commons) Fifteen-amp receptacles can be used with 20-amp circuits, so most outlets you see in your house are the standard 15-amp variety — two slots and a U-shaped grounding hole. This provides enough power, in watts, to run most of your appliances. Larger items, like washer/dryers and air conditioning units, require 240 volts and higher amperage. To accommodate them, specialized individual circuits are wired into your house. You can see them in your main board as the big, “double” breakers. The amperage of each is printed somewhere on each switch, as shown in the photo to the right. What Is a Kilowatt? Basically, everything with a plug has some sort of wattage (power) that it pulls when it’s being used. You can probably think of things that have more intense electrical use (dishwashers, vacuums, hair dryers, etc.) vs. those that use a more modest amount (LED screens and bulbs, toasters).  For example, a 75-watt incandescent lightbulb needs an electrical flow of 75 watts to light up a room. A 13-watt LED bulb only needs a flow of 13 watts to do the same job. On the higher side, a typical dishwasher pulls over 1,000 watts; an electric clothes dryer, more than 2,000 watts. As you’ve probably figured by now, a kilowatt is simply 1,000 watts. A 1,500-watt dishwasher pulls 1.5 kilowatts when it’s in use. What Are Kilowatt Hours? Take the dishwasher that’s rated at 1,500 watts. As we said above, this means that the appliance uses (or draws) 1,500 watts, or 1.5 kilowatts. Getting from kilowatts to kilowatt hours is simply a matter of how much a certain item is used.  If your typical dishwasher cycle is 1 hour, then each cycle uses, you guessed it, 1.5 kilowatt hours. A 2,000-watt clothes dryer with a 90-minute cycle uses 3 kilowatt hours every time. In contrast, you’d have to keep that 13-watt bulb turned on for 100 hours to use 1.3 kilowatt hours. For More Information Now that we know the basics, we’re ready to understand a lot more about the process of going solar. Here are a few more resources as you continue your journey.   You can’t fully understand the benefits of a PV installation if you don’t know how to read an electricity bill. Check out these posts to see what all those numbers mean: Reading Your Electricity Bill: A Beginner’s Guide How to Size a PV System From an Electricity Bill Two things that affect your electric bill and how much return you get from a solar system are time-of-use rates (TOU) and net energy metering (NEM). Here are a couple resources to help you understand both concepts (check back frequently, these things change!): How Solar Customers Save Money: A Beginner’s Guide to Net Energy Metering What are Time-Of-Use Rates? Your TOU Guide Finally, if you think you might want to store some of your solar energy, check out our pieces on solar storage: Storing Solar Energy: Everything You Need to Know How to Choose the Best Solar Battery for Your Needs Are there any other terms you’d like to see a blog on? Let us know.  Special thanks to Zia Swim for the technical consultation. Featured image by Jon Moore. ### Better Together: Aurora Solar Welcomes Folsom Labs From the beginning, Aurora’s mission has been to create a future of solar energy for all by enabling solar professionals to design and sell solar at scale. On our journey, we had the opportunity to connect with Folsom Labs and realized that we shared the same vision for the solar industry. Ultimately, we decided we’re better together than apart, so today we’re happy to announce that Aurora has completed the acquisition of Folsom Labs, the makers of HelioScope solar design software.   As pioneers in solar software, both Aurora Solar and Folsom Labs have helped propel the solar industry’s growth by providing software that enables solar contractors — from the largest national providers to the thousands of smaller, local solar installers — to accurately design and sell solar projects from anywhere. To date, thousands of organizations around the world have designed millions of residential and commercial solar projects using Aurora and HelioScope — but this is just the beginning.  By joining forces with the Folsom Labs team, we hope to accelerate our ability to accomplish our common goal of lowering solar project soft costs and support the demands of even more solar organizations across more applications. We both have innovative, accurate, user-friendly technology, deep knowledge of and passion for the solar industry, and commitment to delighting our growing base of customers. We couldn't be more excited about what this means for the users of Aurora and HelioScope, and look forward to continuing to build an amazing software experience for the entire solar community. You can check out the press release for more details, and we’ll continue to keep you updated with new information as we move forward. For more on what this news means to the Helioscope community of users and partners, you can read Folsom’s blog here.  ### How Solar Irradiance Is Calculated–and How We Made It 30 Times Faster When you sit down to design a solar installation for a prospective customer, probably one of the first things you consider is how much solar energy (irradiance) is available in different locations.  In today’s blog post, we explain the principles of calculating solar irradiance and discuss some of the computation approaches we employed to make this critical process faster for you. We’ll also talk about why an efficient solar irradiance calculation can save solar installers over $800 per system. If you’re using remote solar design software, rather than relying on manual measurements at the project, all you have to do is click a button and the software generates an irradiance map showing the solar irradiance at every point on the roof of your site model. But what’s happening behind the scenes in your solar software to deliver that irradiance map? Do you understand the diverse components that go into the calculation of solar irradiance? While one of the benefits of solar software is that you don’t need to think too much about these calculations, it can be helpful to have an understanding of how solar irradiance is calculated to answer customer questions. Here at Aurora, we think about these calculations a lot, and recently our engineers have been working hard on updates that increased the speed of irradiance calculations by 30 times! An example of a solar irradiance map generated by Aurora solar software. What is Solar Irradiance? Irradiance is a measure of solar power. Because power refers to the rate of energy transfer over time (not the total amount of energy delivered), another way of thinking of irradiance is that it quantifies the amount of solar energy that arrives in a particular area in a given moment [Watt/m2]. When that value is converted to express the total amount of energy the area receives over a certain interval of time, say one hour, it is communicated in Watt hours (Wh) or, depending on quantity, kilowatt hours (kWh) per unit of area [(k)Wh/m2]. This is a measure of insolation. In Aurora, we use the term irradiance interchangeably with insolation and communicate the value in kWh/M2/yr. This provides a helpful way of conceiving of the amount of solar energy that will be available to your solar installation over the course of the year, given any shade that is present as well as the local weather patterns. To learn more, check out our blog on Key Solar Energy Terms. Solar Irradiance Maps When you’re selling solar to clients, it can be helpful to know how their areas are affected by their location in reference to the sun. However, as we’ll get to in the next section, the calculations themselves can be very intricate.  As a help, we’ve gathered links to some excellent resources for solar irradiance maps that you can find here: NREL’s (National Renewable Energy Laboratory) Global Horizontal Irradiance Map Global Solar Atlas Map Solargis Solar Resource Maps of the World Solcast Solar Irradiance Maps The Basics of Irradiance Calculations While you might think solar irradiance is solely based on the rays of sunlight that directly reach a surface, there are actually several sources of irradiance that go into the calculation. A simple formula for solar irradiance is not as effective, then, since you’ll need to take these sources into account for an accurate calculation. The first of these is that direct “beam” irradiance that you might intuitively associate with irradiance. This involves determining whether there are any objects that would block rays of the sun from reaching the solar panel (i.e., cause shading), in order to determine if this component should be included in the total irradiance. In addition to this, there are two types of “diffuse” or indirect irradiance that need to be accounted for: sky diffuse irradiance — the light reflected from the atmosphere, separate from direct rays of sunlight that fall on the panel, and ground-reflected diffuse irradiance, light that is reflected back up from the ground. In order to calculate these three broad types of irradiance, it’s also necessary to take into account the angle of the array and the direction to the sun relative to the panel. There are three broad types of solar irradiance that must be included in calculations of the irradiance on a particular surface; these include direct irradiance from beams of the sun, as well as diffuse irradiance from both the sky and the ground. Of these calculations, determining whether or not direct beams from the sun can reach the panel requires the most processing power. This is because shading from surrounding objects must be calculated based on the location of the sun at every daylight hour of the year — these calculations can quickly add up!  Determining Sunbeam Intersection In order to determine whether the rays of the sun will directly hit a particular surface, one must first have an accurate understanding of the surroundings — including objects like trees, surrounding buildings and roof planes, and obstructions like skylights, vents, and chimneys. This is why the starting point for creating a solar design in Aurora is to construct a 3D model of the project site. Aurora’s irradiance engine translates the fully modeled project site into simpler shapes, which are more conducive to computational processes by computers. Aurora translates the 3D model of the project sites into simpler shapes. Aurora then computes whether any of these component shapes will block the rays of the sun during each daylight hour of the year, one key component of calculating solar irradiance. From there, Aurora’s irradiance engine computes the location of the sun, relative to the panel, for every daylight hour of the year; for each hour, it tests whether a beam from the sun to the panel hits any object in the scene.  If the beam intersects with an object, that means it cannot reach that point on the surface and the direct beam irradiance component should not be included in the irradiance calculation (in other words, that location is shaded at that hour of the day). To generate an irradiance map, Aurora intelligently samples different points on the roof. For performance simulations, Aurora computes the irradiance at specific points on each panel or cell string. Aurora solar software calculates whether any objects at the solar project site would block the rays of the sun at any given hour. Making Our Irradiance Calculations 30 Times Faster Because a project site can contain thousands of objects, and intersections with solar rays have to be calculated for every daylight hour of the year, the number of calculations that need to be computed can be significant. There are generally over 5,000 daylight hours for a given location. This means that, for each point on the roof, over 5,000 potential sun locations must be simulated, and a complex project site could require irradiance calculations for as many as 100,000 to 500,000 points! So, as you can imagine, running these processes one at a time could sometimes be a lengthy process — especially for very large or complicated sites.  Computing whether rays of the sun (direct beam irradiance) will reach a given point requires significant processing power, especially for complex sites like this one. By computing the many component processes in parallel (i.e., at the same time) Aurora solar software was able to deliver 30x improvements in the speed of irradiance map generation. That’s why Aurora’s computation team set about developing an approach to enable Aurora to run many of these computations at the same time. This was done by utilizing Graphics Processing Units (GPUs). In contrast to Central Processing Units, or CPUs, which you might be familiar with as the devices that perform most of the computing processes in your computer, GPUs are much better at performing thousands of calculation-heavy operations in parallel. This made it possible to dramatically speed up shading calculations. By computing the intersections of the sun’s rays with thousands of objects in the scene in parallel (at the same time) rather than sequentially (one after the other), Aurora has been able to deliver 30x speed increases!  To put this in context, irradiance for a large commercial project site of a 7 MW PV system can now typically be calculated in under 20 seconds. And, of course, this is done while still maintaining the high shading accuracy that Aurora is known for. Why Solar Irradiance Calculation Matters to Solar Contractors Aurora’s advanced solar design software has made it significantly easier for solar contractors and designers to determine how much solar energy is available to the solar arrays they design.  Instead of having to visit the home or business of every prospective customer and take manual measurements from the roof or ground where the array would be located, this can now be done accurately with the click of a button. The National Renewable Energy Lab calculates this could save solar installers over $800 per system. The next time you press “simulate” in Aurora, not only will you notice that the irradiance map generates much faster than you might expect, you’ll also have a better sense of what’s going on “under-the-hood” in the software. As we discussed in a recent post, being able to explain the power of your solar software tools is one way to help prospective customers understand the quality of your solar design processes — and feel more confident choosing your company for their solar installation. Want to see it in action? Schedule a demo today! ### Understanding PV System Losses, Part 3: Soiling, Snow, System Degradation Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what to expect for the rest of 2024, to how AI is affecting the industry, and more. Register Now Being able to give your solar customers accurate estimates of how much their solar installation will produce is essential. But there are many factors that impact how much the PV system will produce – from physical characteristics of the components and design to environmental factors like shade and dust. In order to deliver accurate production estimates, it is crucial to understand what factors reduce the energy production of your installation (PV system losses) – and by how much. In today’s article, the latest installment of Aurora’s PV System Losses Series in which we explain specific causes of solar production loss, we explore soiling, snow, and system degradation losses. About This Series In this series, we provide an overview of various causes of energy production loss in solar PV systems. Each article will explain specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discuss why they affect system performance.   For Aurora users, this series will provide tips for improving the accuracy of your performance simulations by sharing research-backed recommendations for what values to input in your Simulation Settings for different loss types. While Aurora provides default values for these fields that fit most use cases, this series will also highlight cases in which you might want to use different values depending on the specifics of your design. (For a quick summary of system losses, and how to configure your account settings in Aurora, see the Aurora Help Center.) This guide for picking better loss values will help you give your customers the most accurate estimate of how much their system will produce and how much they can save by going solar. Want all this info in one handy package? Download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. Environmental Losses: Soiling Suggested Values: 5% for regions with long dry seasons Add 1-2% if region experiences frequent dust deposits Add 1% if near major vehicular traffic areas Remove 0.5% if the system will be cleaned in the summer 2% for regions with year-round rain Commercial installers may want to consult with ground monitoring companies to create an on-site estimation of soiling, since O&M costs are in part dictated by the frequency of cleaning required. What is PV Soil Loss? Soiling loss is when dust and grime accumulate on solar panels and other PV surfaces over time, lowering the sunlight that reaches the solar panels. Since a PV system’s performance is directly tied to how much sunlight can be transformed into electric energy, soil loss is a large aspect of calculating PV system losses.   Soiling losses capture the amount of sunlight that is blocked by dirt and debris that accumulate on solar panels over time. Just like a car’s windshield, small amounts of dust and dirt can accumulate and scatter light. Soiling differs drastically based on the region that a system is located – everything from the amount of wind, exposed dirt, and local traffic, to the frequency and strength of rain and the number of birds in an area can have an effect. Soiling Loss Percentages Let’s start with the industry standard for PV losses, NREL’s Performance Parameters Paper. The document suggests a 5% typical soiling loss, but has a range of 2% to 25% which is incredibly wide. Let’s dig into why there’s such a large range: Variation Across the United States An ongoing study from the National Center for Photovoltaics tracks a number of systems across the United States with estimated soiling values. Some notable findings are that the systems scattered across central California see 4-5% loss compared with Texas plains around 1%. Rainfall As a Major Factor Locus Energy has a disaggregation algorithm that lets them estimate soiling losses based on production data, and they found that areas around Southern California saw very high soiling losses during summer months with a drop off in the winter. Additionally, areas in the Northeast maintained a very low soiling rate year-round. They attributed the seasonal variation in California and the consistent low soiling in the Northeast to rainfall keeping panels clean. A Note on Birds Bird droppings are typically counted under soiling losses since they represent a temporary environmental blockage in the panel, but they have some distinct behavior. First off, rain is often not sufficient to wash away the mess, and it requires manual cleaning. Unlike dirt particulate matter, it only affects one or two cells at a time but the cells it does impact are substantially blocked. Due to the series connection of cells within a panel, the one impacted cell could knock out the cell string or the entire module if bypass diodes are not present. The best advice is to clean off the panel quickly.  Removing Soiling Loss Percentages Dust does not build up all at once – it accumulates over time, ranging from 0.01%/day up to 0.5%/day in extremely dusty areas. This means that panels should be washed periodically to prevent excessive buildup.  An NREL model that uses a steady soiling increase found that, for a system that would build up soil that blocks 1.9% of sunlight over the course of a year, having one annual cleaning would maintain the loss around 1.5%, two cleanings per year could drop the average loss to 1.3%, and three cleanings per year would reduce that further to 1.2% average annual loss. Expert Tips for Reducing Soiling Losses If you live in a drier climate, use spare water to gently clean panels between rainfall.  If you’re living in a rainier climate, don’t be too worried. Rain will handle most dirt.  Bird droppings will have to be cleaned manually and should be addressed quickly since just a little shade can knock out an entire string. Resources for Further Reading PV Soiling Rate Variation over Long Periods: Reports a soiling loss of about 0.5%/day in a desert environment. Time Series Analysis of Photovoltaic Soiling Station Data: Version 1.0, August 2017: Reviews soiling at various U.S. locations, finding that these values range 0.03 to 0.15%/day. Impact & Consequences of Soiling and Cleaning of PV Modules: Finds soiling losses are highly dependent on the local environment and explores the impact of a variety of cleaning methods.  Environmental Losses: Snow Loss Suggested Values: Snow loss is tricky since it is very dependent on the site. We suggest using monthly snow loss factors rather than annual. Snow loss can reach upward of 20% in some regions during winter months. An NREL study that quantified snow losses with a snow-removal model calculated losses ranging from 10-30% for fixed-tilt systems. For location-specific guidance on loss values in the U.S. see our related article Your Guide to Monthly Snow Loss Values from NREL. What is Snow Loss? Snow cover blocks sunlight from reaching the solar panels. In snowy climates, the amount of snow loss will be dependent on several factors, including the tilt of the panels, duration and intensity of snowfall, ambient temperature, and possibly wind.  Similar to how inverter shutdowns will entirely shut down a system (as discussed in Part 2), snow cover will block production until it either slides off the panels or melts away. How to Solve PV Snow Loss NREL studies suggest that sliding is the primary mechanism for snow clearing, although the application of this also requires some knowledge of how the panels will be spaced relative to the roof and whether there will be space for the snow to fall. For details on how snow loss is modeled, and specific guidance on loss values for different locations in the U.S., see our blog post on snow loss values. Time Losses: System Degradation Suggested Values: 0.3%/year for high-end modules 0.5%/year for monocrystalline 0.6%/year for polycrystalline You can also use manufacturer production guarantees for a conservative estimate – for example, if a manufacturer guarantees that their panels will have 80% production after 25 years, that is 20%/25 years = 0.8%/year degradation. What is System Degradation As with anything technical, the materials in solar cells lose efficiency over time. This is known as system degradation. A standard silicon solar panel consists of silicon wafers, connecting busbars, encapsulant material, glass, and polymer backing sheets, and other electrical connection components. Over time, these components will be worn down and damaged by the effects of thermal expansion and contraction, UV light, and damage from windblown particles. Weaker electrical connections cause resistive losses within a cell, decreased shunt resistance allows current to “leak” within a cell instead of being used to power loads, and discoloration and damage to the layers in front of the cells reduces the available light. Studies on this topic are numerous since the lifetime degradation of a module and an array determines how profitable a project can be. Degradation of silicon panels depends on the type of wafer (monocrystalline or polycrystalline), the temperature of the installation site, and the materials used in the construction of the panels. Individual manufacturers also recommend certain settings for their own products.To account for this, Aurora models the reduced power output over time when analyzing the lifetime value of a project. Resources for Further Reading Photovoltaic Degradation Rates–An Analytical Review Potential-induced Degradation in Photovoltaic Modules: A Critical Review Note: In Aurora, system degradation losses are accounted for at the financing stage (under Systems and Maintenance, as shown below), rather than under Performance Settings as for other loss types. In Aurora, system degradation losses are accounted for at the financing stage. To see how to add a financing option to your project, see this video (0:58 shows the system degradation setting). About Our PV System Losses Series This article is part of Aurora’s PV System Losses Series. Each article explains specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discusses why they affect system performance. Understanding PV System Losses, Part 1: Nameplate, Mismatch, and LID Losses Understanding PV System Losses, Part 2: Wiring, Connections, and System Availability Understanding PV System Losses, Part 3: Soiling, Snow, System Degradation Understanding PV System Losses, Part 4: Tilt & Orientation, Incident Angle Modifier, Environmental Conditions, and Inverter Losses & Clipping Want all this info in one handy package? Download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. ### Understanding PV System Losses, Part 2: Wiring, Connections, and System Availability Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what to expect for the rest of 2024, to how AI is affecting the industry, and more. Register Now As a solar contractor, one of the key promises you need to deliver on for your customers is that your solar installation will produce the amount of energy forecasted. Yet there are a wide number of factors that impact how much your system will produce–from the physical characteristics of your chosen components to system design and installation decisions. Understanding factors that can reduce the energy production of your solar installation, and the extent of their impact, is key to arriving at an accurate production estimate. In today’s article we explore wiring, connection, and system availability losses. About This Series In this series, we provide an overview of various causes of energy production loss in solar PV systems. Each article will explain specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discuss why they affect system performance.   For Aurora users, this series will provide tips for improving the accuracy of your performance simulations by sharing research-backed recommendations for what values to input in your Simulation Settings for different loss types. While Aurora provides default values for these fields that fit most use cases, this series will also highlight cases in which you might want to use different values depending on the specifics of your design. (For a quick summary of system losses, and how to configure your account settings in Aurora, see the Aurora Help Center.) This guide for picking better loss values will help you give your customers the most accurate estimate of how much their system will produce and how much they can save by going solar. Want all this info in one handy package? Download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. Solar PV System Wiring Losses Suggested Values: 2% for most systems 1% if using thicker wires or very short runs To understand wiring losses, let’s first review simple circuits.  How PV Circuits Work PV modules act as a voltage source that raises the DC voltage across its two terminals.  Stringing PV modules in series adds the voltages, bringing the system up to a higher voltage, which is usually capped at 600 V in the United States and 1000 V in the EU. When the system is connected to an inverter, current begins to flow thanks to the voltage difference across the system. What Causes PV Wiring Losses In circuits, several components can cause a voltage drop, including resistors. Wires themselves have a small amount of internal resistance, the amount of which will be based on the gauge (thickness) of wire as well as its length. Installers can weigh the tradeoff between a thicker gauge of wire, which reduces resistive losses, with the increased cost. The National Electric Code (NEC) specifies a minimum gauge for the wires based on the voltage and current involved in order to prevent electrical fires.  However, the NEC does not dictate limits on wire losses. NREL’s study “Performance Parameters for Grid-Connected Systems” is a widely cited source of loss factors, and they suggest a 2% loss for DC wiring. Systems with shorter wire runs between the modules and inverter, or with thicker wire, may see a loss closer to 1%. PV Connection Losses Suggested Value: 0.5% What is a PV Connector? PV connectors have multiple uses in a PV system. They predominantly help connect modules on series strings. They also connect modules to module-level devices on systems using microinverters. What Causes PV Connection Losses? Connection losses capture resistive losses across wiring connectors and diodes. Most solar panels contain bypass diodes, which let other modules on a string circumvent a panel that is shaded or otherwise poorly performing.  These components have a small voltage drop, caused by the internal resistance of the material and imperfections in the contact surface. An NREL study found a value of 0.5% loss for these components.  Note that while adding DC optimizers to an array will double the number of connections, the extra connective losses are captured in the DC Optimizer component losses.  PV System Availability Suggested Values: 3% for most systems As low as 0.5% if alert system or O&M are expected to prevent down time “System availability” is a generic loss value. It is meant to capture events that knock out the system entirely – including inverter shutdowns or failures, grid outages, or other actions that disconnect the PV system and prevent it from producing electricity for the home. The exact timing and duration of such outages is unpredictable, so the industry approach is to model these as a flat percentage loss spread out across the entire set of hours. How Aurora Deals with System Availability Aurora sets a default value of 3%, which is the same used by PVWatts. In cases where there is an operations and maintenance or fault alert system set up, the availability loss can be as low as 0.5%. Using Solar Software to Model PV Wiring and Connection Losses Software like Aurora, that simulates electrical behavior within the circuits of your solar PV installation, offers a significant advantage for accurately estimating your customer’s solar energy production. However, understanding system loss factors, so you can tailor these percentage losses to the specifics of your design, offers an additional layer of precision. In future articles, we will explain other PV system loss types, including soiling, snow, and degradation due to age. Having trouble accurately estimating system losses? Aurora can help. Sign up for our free demo to learn more. About Our PV System Losses Series This article is part of Aurora’s PV System Losses Series. Each article explains specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discusses why they affect system performance. Understanding PV System Losses, Part 1: Nameplate, Mismatch, and LID Losses Understanding PV System Losses, Part 2: Wiring, Connections, and System Availability Understanding PV System Losses, Part 3: Soiling, Snow, System Degradation Understanding PV System Losses, Part 4: Tilt & Orientation, Incident Angle Modifier, Environmental Conditions, and Inverter Losses & Clipping To get all this information in one place, download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. ### Solar Storage and Home Batteries: What's Driving People to Buy? One of the major trends in solar is the increase in storage adoption. As storage becomes more mainstream, organizations in the solar industry have had to update their business models to account for the demand.  Why is the demand for storage rising? The answer is complex and involves many different factors. First, let's take a step back and think about why people go solar in the first place. The reasons include everything from saving money, to resiliency and energy independence. Adding storage further helps with self reliance and energy independence. Then there are natural events — like February’s storm in Texas, California wildfires, and others — that highlight our heavy dependence on the grid. Even COVID highlighted household energy use as more people spent time at home. At the same time, battery technology continues to improve and battery prices continue to fall, and there are even incentives that can help offset the cost. With these factors, and others, it makes even more sense why people want solar + storage. All together, the result has been consumers pushing solar installers to offer storage options. It’s no surprise, then, that storage has been a common point of discussion during the 2020 and 2021 Empower virtual summits. This year, a couple Empower sessions looked at storage trends in detail and provided perspective on major questions facing the solar industry. In this blog, we’ll highlight how panelists answered two of the most pressing storage questions.  The first is a little more theoretical: How does crisis play a role in storage purchases? The second, a bit more practical: What has been your experience adding storage to your solar business? To hear everything the experts had to say, listen to the full session replays: Money on the Table: Expanding Your Business Through New Products Finding Their “Yes”: What Really Drives a Homeowner’s Decision to Buy From You Now let’s get to the questions. (Some responses have been lightly edited for length and clarity.) How does crisis play a role in storage purchases? With the tragic situation in Texas this past February serving as a recent example, not to mention the COVID-19 pandemic, the role of crisis in driving storage purchases has taken center stage. Scott Nguyen and Varun Rai both provide insight into how crises affect consumers. Scott Nguyen, Co-founder & CEO, Bodhi We went through what we now call the “Texas Blackout”. I had no power and no heat for over 40-something hours, same with many of the folks in our area, and it got cold. What that translated to is a lot of interest here in Texas in energy storage, for batteries. A lot of the storage being sold previously was on-demand response, load shedding, and things like that. But when you talk about consumers right now, the interest they have is more for security, for independence, appealing to that innate desire for independence. So, I think that has changed quite a bit here in Texas. Varun Rai, Director, The Energy Institute at the University of Texas at Austin Crises raise the salience of issues because otherwise, these issues that are very important don’t get the attention they necessarily deserve.  So, in raising the salience of these crises, beliefs can change. This gives us a reason to go back and re-evaluate, which can bring about behavior change. It depends on the intensity of the crises — it’s easier to change behavior when it requires less capital and effort.  What has been your experience adding storage to your solar business? Now let’s see how installers view the storage market. What’s on the minds of their customers, what storage needs do they have, and why are they adding battery storage? At Empower we had installers from many different regions of the US, here are their observations. Rebecca Carpenter, Founder, Fingerlakes Renewables Solar Energy Talking to people here in upstate New York, where I live, most of the storage systems I put in have been about security: heat security, meat storage, and things like that. Hunting for food is big up here, and people actually have thousands of dollars of food in their freezers. They also have very small blower fans on their wood or propane stoves.  And, on top of that, we have very expensive electricity. I get very fascinated watching some of the changes in Texas, and what people are looking for, not having any real sense of the security issue because there hadn’t been a major event here. Up here, we’re pretty accustomed to major winter events and weather through them fairly well.  Fortunat Mueller, President & Co-founder, Revision Energy  We serve the Northeast: Maine, New Hampshire, Vermont, and Massachusetts, and the customer motivation for storage differs in different markets. For example, in Massachusetts and Vermont, there are some utility programs which make storage cost-effective for customers on the grid. In Maine and New Hampshire, primarily the motivation for storage is resiliency: We’re in a rural area, heavily wooded, with severe winter weather, and some long-term power outages. So we’ve seen over the last couple years, as storage has become cheaper, an increasing faction of our solar customers are choosing to add storage — even in the absence of utility programs that make it cost-effective — really strictly for the resiliency benefit. And if there is an on-grid peak shaving benefit or other program, that’s sort-of gravy. The majority of our customers outside of Massachusetts are doing it essentially as a generator replacement.  And it’s now close to a quarter of all our solar customers doing that. Clayton Anderson, President, Elevation Solutions We operate in eight different states [Arizona, California, Florida, Nevada, Texas, Utah, North Carolina, and South Carolina]. We see that the appetite for batteries is very much geographic — it’s unique to each geography, each market. A lot of our business is done in markets where there are time-of-use rate plans, but also demand-based rate plans, where rates are based on demand. So, batteries historically in those markets have been somewhat cost prohibitive, but the costs are coming down. So, batteries, or demand managers, are something that our customers are really trying to ask a lot of questions about because they’re faced with these new rate plans that they frankly don’t understand, they just know that they’re going to be charged a lot more at certain times and a lot more if they do things that they don’t really know that they’re doing. So, batteries are becoming a very relevant part of the conversation every time we talk to customers. So, we can see, the reasons consumers are choosing solar storage are truly varied, from wanting independence from high energy costs and demand shifting, to generator replacement and energy independence. Whatever the reasons, wherever you’re located, one thing is clear: storage is quickly becoming a “must have” for installers across the country.  Cole Norton, Solar Sales Director, Rexel USA As a distributor, we’re one step removed from the homeowner … [But,] certainly as part of the supply chain, we’re seeing astronomical growth within energy storage. We …  got serious about it last year, and it’s not just something that’s a nice to have, it’s quickly becoming a must have.  If you’re servicing solar installers and you do not have this — specifically in California where our market is — the attachment rate is on the rise so quickly that if you’re not able to provide these solutions, you’re not going to be able to give even a very basic install. [We’re not talking about] even necessarily a super forward looking installer … pretty much everybody is going to be incorporating this into their business in some form.   There’s no denying it: Storage is going to be an important aspect of solar sales in the future. And those installers that understand it will have a leg up on the competition. For a more in-depth look at strategies you can employ today to help level up your storage sales, check out The Pocket Guide to Selling Solar Storage, and stay tuned for more updates and information in the future. Until then, happy selling!  Featured image by Dorin Vancea ### Understanding PV System Losses, Part 1: Nameplate, Mismatch, and LID Losses Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what to expect for the rest of 2024, to how AI is affecting the industry, and more. Register Now There are many factors that impact the energy production of a solar installation. These range from the characteristics of the modules themselves, to the way the system is designed and installed (tilt, orientation, stringing configuration, etc.). Environmental factors like shade, soiling, and snow also play a role. An accurate estimate of how much energy your PV system design will produce is essential to ensuring the system meets your customer’s needs. But without a strong understanding of the factors that can reduce system output, arriving at an accurate estimate can be challenging — even with the help of software applications that simulate system performance. About this series In this series, we'll provide an overview of various causes of energy production loss in solar PV systems. Each article will explain specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discuss why they affect system performance.   For Aurora users, this series will provide tips for improving the accuracy of your performance simulations by sharing research-backed recommendations for what values to input in your Simulation Settings for different loss types. While Aurora provides default values for these fields that fit most use cases, this series will also highlight cases in which you might want to use different values depending on the specifics of your design. (For a quick summary of system losses, and how to configure your account settings in Aurora, see the Aurora Help Center.) This guide for picking better loss values will help you give your customers the most accurate estimate of how much their system will produce and how much they can save by going solar. What are PV system losses? System losses refer to effects that simulation engines do not explicitly model; these linear loss factors are applied as percentage reductions to the estimated system production calculated by the simulation engine. (For the purposes of this article, we assume the simulations are run using the Aurora Simulation Engine; however, PVWatts will also use these settings if selected.) Want all this info in one handy package? Download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. Common DC losses: nameplate, mismatch, and light-induced degradation In today’s article we'll cover three common types of DC losses: nameplate, mismatch, and light-induced degradation. What is DC loss? By DC losses we mean factors that reduce the amount of direct current (DC) energy that is produced by the solar panels before that energy is converted into alternating current (AC) by the inverter for use in the home and on the electric grid. These are all applied as fixed-percentage DC-side losses to the system, meaning that the output of the PV modules will be reduced by these percentage values. Aurora allows admins to customize the default system losses for their organization. This makes it possible to ensure your default system losses accurately reflect the characteristics of your designs. Module nameplate rating loss Suggested Values: 0% for modern modules Lower Tolerance Pmax,STC  / Pmax,STC   for conservative production estimate Module nameplate rating loss accounts for the difference in the stated power of the module from a datasheet compared with how it actually performs at Standard Test Conditions (1000 W/m2 and 25o C). Most modern modules will have datasheets that accurately reflect module operation at STC, so the default value for this loss is 0%. Some older modules, particularly when some manufacturers did not “bin” modules into 5W or 10W increments, may need a small loss in this field. (Binning refers to grouping modules based on their power rating because the manufacturing process results in slight variations between modules). Additionally, if a module has an error range on the wattage rating, such as “250W +/- 2.5W,"  you can enter a 1% loss (2.5/250) to ensure that your simulation provides a conservative estimate of power production. Today, most solar modules perform consistent with their nameplate rating under standard test conditions; however, historically there were sometimes slight discrepancies between what a module's datasheet indicated and actual performance.  Mismatch Loss Suggested Values: 2% for most modules and systems with long strings 1% for modules that have tight wattage tolerances 0% is automatically used on modules with DC optimizers or microinverters Mismatch loss refers to losses caused by slight differences in the electrical characteristics of the installed modules, applied as fixed percentage reduction of the system’s DC power output. These losses will be higher for systems that have a wider error range on rated power. Industry research has shown mismatch values range from 0.01% up to 3%, depending on the setup of the system and the length of strings. Aurora uses a default value of 2% based on past industry consensus. It should be noted that in some PV modeling tools, mismatch loss includes differences in string lengths, cloud shading, and edge effects, in addition to the module electrical characteristics. How Aurora handles mismatch situations Aurora’s simulation engine calculates string length differences from the PV module layout so that the user is not required to estimate a loss from unequal string lengths. Aurora also sets the mismatch between modules to 0% if DC optimizers or microinverters are used. This is because these module-level power electronics perform maximum power point tracking for each module to which they are connected. Some installers will use a combination of modules with and without a module-level maximum power point tracker. For example, modules on a shaded portion of the house may have an optimizer while unshaded ones do not; in this case, the modules with MPPTs will be evaluated with 0% mismatch losses while other modules will use the provided loss percentage. Resources for further reading: Effects of Mismatch Losses in Photovoltaic Arrays  Mismatch Loss Reduction in Photovoltaic Arrays as a Result of Sorting Photovoltaic Modules by Max-Power Parameters   Sources of Mismatch in Unshaded Photovoltaic Commercial Arrays (PDF)   Mismatch losses refer to losses resulting from slight differences in the electrical characteristics of different solar modules.  Light-induced degradation Suggested Values: 1.5% for most crystalline solar modules 0.5% for most multi-crystalline solar modules 0% for n-type modules, including SunPower - check with the manufacturer for more info Light-induced degradation (LID) is a less-well-known phenomenon that impacts a large segment of the crystalline-silicon cell market. In short, it is degradation that occurs in a solar cell over the first few days after installation as a result of exposure to sunlight. This can lead to losses of 0.5% - 1.5%. Importantly, LID impacts some module types but not others. To understand the causes of LID, and why certain types of modules are affected, one must first understand two factors that differentiate solar cells: their crystal structure (monocrystalline or multicrystalline) and their electrical properties (P-type or N-type). Solar cell crystal structure Crystal structure refers to differences in the structure of a solar cell resulting from how it is produced: Monocrystalline - solar cells that are grown using a process (the Czochralski process) that produces a uniform crystal structure that is sliced to make solar cells. These tend to have better electrical properties. They also tend to have somewhat higher oxygen concentrations, which is important for LID. Multicrystalline - solar cells that are produced by some form of vapor deposition, which grows silicon onto a substrate. These will have many crystalline sections, which show up as different reflective edges in a solar cell. These are less efficient at producing electricity compared to an equivalently-sized monocrystalline cell, but are cheaper and faster to produce. They also have less oxygen present in the material. Silicon wafer electrical properties Electrical properties refer to properties of silicon wafers (which make up a solar cell) that are needed to create a voltage difference in the cell when exposed to sunlight: P-type: a p-type silicon wafer contains a controlled quantity of impurities, referred to as doping elements, that accept electrons more readily and let a PV module create a voltage difference to produce power under sunlight. Most p-type cells use boron as the doping element, while some others use gallium. Boron plays an important role in LID. N-type: these silicon wafers contain impurities that have the opposite effect; they release, rather than accept, electrons. N-type silicon wafers do not exhibit LID. LID is typically caused by the formation of boron-oxygen compounds in the silicon wafers that make up the solar cell. This means that monocrystalline solar cells that are p-type with boron will exhibit the most LID, and p-type multicrystalline cells will also exhibit LID, but to a lesser extent due to a smaller oxygen concentration. The LID process is usually not accounted for in lab testing of modules, so it won’t be included in the PV module datasheet. Aurora uses a default 1.5% loss. Some manufacturers use n-type silicon—including SunPower in nearly all of their modules, and LG in some of their newer ones—which is not subject to LID because no boron is present in the material. In this case, the LID loss should be set to 0% instead of the default.  Resources for further reading: Understanding Light-Induced Degradation of c-Si Solar Cells Boron-Oxygen Defect Formation Rates and Activity at Elevated Temperatures SunPower Module Degradation Rate  Ironically, some solar panels experience degradation when first exposed to sunlight, which can reduce system losses. This is referred to as light-induced degradation.  Why PV system losses matter in solar sales By understanding these system losses—nameplate, mismatch, and light-induced degradation—and the recommended percentage loss to apply for each in different scenarios, you can ensure that your estimates of system performance are accurate. Your customers will be happy when their installed system produces the energy they were promised! In subsequent installments of this series, we will explore other types of system losses, such as Tilt/Orientation, Wiring, DC-AC Conversion, and others. About Our PV System Losses Series This article is part of Aurora’s PV System Losses Series. Each article explains specific types of system losses, drawing from Aurora’s Performance Simulation Settings, and discusses why they affect system performance. Part 1: Nameplate, Mismatch, and LID Losses Part 2: Wiring, Connections, and System Availability Part 3: Soiling, Snow, System Degradation Part 4: Tilt & Orientation, Incident Angle Modifier, Environmental Conditions, and Inverter Losses & Clipping To get all this information in one handy package, download The Ultimate Guide to PV System Losses. Click above to download our full guide to PV system losses. ### Making Sense of Commercial Solar: What You Need to Know About C&I Commercial solar is something of an enigma. Falling between the better-known residential and utility-scale solar industry sectors, commercial solar — or C&I solar as it’s often called, referring to commercial and industrial scale — encompasses a wide variety of customer types, solar designs, and project sizes. It also differs from residential solar in some key ways. As Ian Clover, Manager of Corporate Communications for Hanwha Q Cells explains, “In the jargon-heavy world of solar-speak, C&I handily condenses Commercial and Industrial into a snackable sub-section of the PV industry. But as subsections go, the C&I space has perhaps the greatest scope for flexibility, offering a raft of possibilities from ground-mount through to ingenious use of rooftop space.” What This Article Covers For a variety of reasons we’ll touch upon in this article, commercial solar has been slow to take off, but there are signs that this sector is poised for significant growth. And, for those who learn to navigate the complexity of these projects, the rewards can be big. This article is part of a series, in which we delve into a variety of aspects of commercial solar to help solar professionals understand the dynamics of this unique sector. In today’s article, we offer a brief intro on what commercial solar is, the scale of this sector, and some of the factors that have constrained its expansion, as well as forecasts for future growth.  In other articles, we discuss the different players involved in commercial solar projects, how to sell a commercial solar project, and what financing for these projects may look like. An example of a large, multi-megawatt commercial solar project design in Aurora. What Is Commercial Solar? Commercial solar may seem straightforward — solar for businesses as opposed to residential solar for homes. However, commercial solar encompasses a variety of different types of customers and projects. In addition to businesses of different sizes, from large corporations to local small businesses, “commercial” solar customers can also include governments, schools and universities, and even nonprofits. Commercial solar projects may take the form of rooftop arrays on buildings or ground mounts, and can range widely in size from kilowatts to megawatts. According to Joe Naroditsky, Director, Solar & Operations at the Community Purchasing Alliance (CPA), an organization that connects nonprofits with solar bids, the C&I solar projects his organization facilitates can range in size from 50 kilowatts (kW) for small churches and synagogues to 300-400 kW for large schools. And that’s just the tip of the iceberg. Commercial Solar Opportunity With the help of Aurora solar software, researchers at UC Davis have examined the real-world solar potential of some of the largest commercial buildings in the United States.  Their review of the largest commercial building in the U.S., a Texas-based aerospace company with 770,000 square meters of rooftop, found that it could generate 88 million kilowatt hours (kWh) of clean energy! As explained in the Washington Post, “That’s enough to power nearly 5,200 homes for a year, offset 47,800 metric tons of CO2, and spare up to 388 acres of land.” Obviously, this is the extreme end of the spectrum, where building rooftops rival the scale of utility-scale projects, and this site has not been developed with solar. However, it serves to illustrate the variation in potential project sizes in a sector where the buildings and customers differ widely. Constraints on the Commercial Solar Market As you begin to read up on the commercial solar sector, one of the common refrains you’ll see is that this market has not grown nearly as rapidly as residential or utility-scale solar. As noted in PV Magazine, “The commercial and industrial (C&I) solar markets have been a relative challenge for solar developers to exploit.” Cost of Commercial Electricity vs Residential There are a number of factors that have contributed to C&I lagging behind residential solar. For one, commercial electricity prices are historically lower, which can make the economics of solar a little trickier.  As Mark Berger explains in PV Magazine: “The C&I sector has trouble competing against an average 15% or more lower price per kilowatt-hour rate than residential electricity prices, according to the U.S. Energy Information Agency. ” According to the U.S. Energy Information Administration, in February of 2021 the average cost of electricity for U.S. residential customers was 13.3 cents per kilowatt hour (kWh), while the cost for commercial customers was 11.9 cents per kWh. Convincing building owners to purchase Another barrier relates to the fact that in many commercial buildings the occupant is not the building owner. This “split incentive” means that the building owners who would make the decision to install solar are often not the ones paying the utility bills, making solar energy savings less of an incentive for them. Complex commercial financing Financing is also more complex in the C&I solar space, and according to some contractors we’ve spoken with, less accessible. That is beginning to change, however, as financing mechanisms for this space become better understood by financial actors and there are more successful projects for financiers to look at to assess risk. Financial viability is the first major hurdle in solar sales, as any solar installer knows. Commercial solar systems can therefore be a trickier sell.  However, as explained in Solar Power World, “Commercial solar and now community solar are advancing beyond bureaucratic budgetary boundaries by systemizing structures for the private sector, consumers and third parties to partner and invest in energy infrastructure assets.” One of the major things easing financing is the introduction of power purchase agreements (or PPAs). PPAs have allowed investors to take on the pressure of large upfront commercial solar costs, with the consumers paying off the system a little bit at a time. Other barriers Other barriers include, “contracting challenges, the mismatch in building lease and PV financing terms, and high transaction costs relative to project sizes,” according to a National Renewable Energy Laboratory (NREL) report. Solutions to Commercial Solar Barriers Many of the challenges in this sector are already being surmounted. A white paper by the Solar Energy Industries Association (SEIA) and SolarKal highlights the fact that commercial solar projects can be structured in a variety of ways that split the costs and benefits across building owners and tenants to meet different criteria. They also emphasize the variety of financing structures available to fit the needs of the parties involved, and the fact that solar is cost-competitive with utility energy. As discussed above, commercial PPAs are a great option for small businesses and nonprofits that want the benefits of solar but are unable to cover the upfront costs — despite the fact that the upfront cost is often almost negligible considering the offset of reduced energy bills.  Schedule a demo to learn more about Aurora's commercial solar capabilities. Commercial Solar’s Current Scale According to a Solar Energy Industries Association report, 1,286 megawatts (MW) of commercial solar were deployed in 2019, with two-thirds of all corporate capacity installed just since 2015.  The report now tracks more than 8,300 megawatts (MW) of commercial solar projects in the U.S. — over 38,00 projects across 43 states — representing approximately 70% of all installed commercial capacity. Put another way, there is enough installed commercial solar to power 1.6 million homes.  Still, commercial trails behind the residential market, despite larger project sizes, and is even far behind the utility-scale market. As of 2016, NREL reported that non-residential solar (another term often used for this market) comprised 24% of the total installed capacity in the U.S.  In March 2021, SEIA reported that the 2020 pandemic affected commercial more than residential solar installs, with the numbers coming in at 4% less than in 2019.  Installed PV capacity in the U.S. by sector through 2020, according to SEIA. Despite this relatively slow start, there are a number of indications that this market is poised to take off. Potential for Growth in Commercial Solar Given the scale of many of the buildings in this sector, you can imagine that as barriers are knocked down, the potential for installed commercial capacity is significant. In a 2016 report, NREL examined the potential size of the C&I solar sector if certain challenges were overcome. They concluded that, at the U.S Department of Energy’s “SunShot 2020 targets,” the “techno-economic” potential for offices was 54 GW, for hotels 16 GW, and for warehouses 34 GW for a combined potential across these building types of 104 GW in the U.S.!1 For context, at the end of 2017, the DOE reported that the combined capacity of all installed solar PV and wind power in the country was 144 GW. Commercial Solar Benefits Commercial solar can offer many benefits — to building owners, commercial tenants, financiers, installers, and the environment.  For building owners, benefits include increased operating income and cash flow and longer lease terms, as the SEIA/SolarKal white paper notes.  For tenants, reduced operating costs through utility bill savings are an obvious, and very real, benefit. Of course, there are also benefits for solar contractors that successfully navigate this sector. Commercial solar projects are often a tough sell, but they can have a great impact on overall numbers for solar companies. The economies of scale at play in these larger projects can make them more lucrative, and that’s on top of the significantly larger total project price tags compared to residential projects. Be sure to check out the other articles in this series to learn more about the ins and outs of the C&I space. Whether you’re already actively involved in commercial solar, interested in transitioning into this space, or just want to increase your understanding of the industry, our goal with this series is to provide helpful perspectives on how the commercial solar sector works.  In our other posts, we delve into the various players involved in commercial projects, how to sell C&I solar projects, and some of the financing structures for commercial solar projects. We’re excited for the potential of C&I solar as another key pillar in the growth of solar energy more broadly and hope you are too! 1 – For context, DOE’s Sunshot Initiative was established with the goal of driving down the cost of solar energy. Its solar cost targets for 2020 were: “$0.10 per kilowatt hour for residential solar, $0.08 per kilowatt hour for commercial solar, and $0.06 per kilowatt hour for utility-scale solar.” Sunshot’s target for utility-scale was reached in 2017. A Q1 2018 analysis by NREL reported that commercial solar cost per kWh in the U.S. had fallen to 91% of the 2020 target, so the conditions upon which these estimates are based are not far from reality. ### Buying solar software is hard, here are 3 questions that make it easier When you’re selling solar, there are many boxes that need to be checked before you can even present a proposal to your client. Design, permitting, contracting, financing, it can start to feel overwhelming for your operations — and it can be a real drag on your business and its growth. There are many tools available to help with these tasks, and choosing one that fulfills your specific needs can help streamline operations. In this blog post, we’ll look at three critical questions from our new resource, The Big Book of Solar Software Must-Haves. Companies looking to improve their operations and increase their team’s capacity should ask these questions (and more) — and pay close attention to the answers.  Does your software integrate with what I’m already using? Having to manually enter all your data into several software solutions leads to lots of time wasted. For example, your team may be spending unnecessary time cross-checking data and switching between software programs because your solar software doesn’t sync with other systems. And anything done manually comes with a risk of inaccuracies, which can result in even more time wasted and incorrect contracts and proposals being produced. One of the best ways to streamline your internal operations is to make sure the solar software you choose lets you easily integrate with any existing tools you already use, such as CRM, contract management software, and so on. So, ask the question, “Does your software integrate with all my tools?” and make sure they provide evidence that it does. With the ability to sync all your data across your in-house tools, you can better streamline internal operations, avoid human errors, save valuable time, and thereby improve your business. Does your software cover the entire design to sales process? As we discussed above, going back and forth between different software solutions can be time consuming and inefficient. When you’ve found your lead, you want to act fast, not waste precious time preparing their proposal.  But, with all the steps necessary to create a permit-ready solar design, many companies turn to several software solutions for different needs. For example, your team might be using one solution to measure your lead’s energy consumption and another to build out the design. The reasons for this can range from pricing, to old habits, or simply because you haven’t yet found a software stack that offers all the things you need in one place.  Every week of delay on a solar project correlates to a 5-10% cancellation rate, according to SEIA and the Solar Foundation. Reducing your time from lead to design, therefore, increases the chances that leads will become customers. This is where a solar software solution that has several tools built-in that can handle all the steps from energy consumption estimates, to design, financing, and sales can really help your business take that next step.  An important question to ask here is, “Does your software cover the entire design to sales process?” Make sure the answer to this question meets your current needs, but think ahead as well. If you invest in software that offers room for growth, you can streamline your current workflows, as well as future ones as your company grows. What automatic design features does your software have? The design phase of a solar project can often become a complicated affair and slow down your team’s time to proposal. This is especially true if the software you use doesn’t have components that can automate tasks such as determining the heights of buildings, sizing a system, and predicting weather patterns.  When you’re looking through the different solar software options available, then, ask the vendor specific questions. In this case, you need to know if and how their solution can automatically determine important data that’ll help speed up your team’s workflows.  For example, you might want to ask: “Does the software do automatic system sizing or system stringing?” or “Does it have predictive weather data and irradiance modeling?” That way, you’ll know exactly how the solar software can speed up your workflows, empower your sales team, and even accelerate the onboarding of new employees. These three questions are a good start when you’re looking for your next solar software. But, there are many other questions and features to consider when you’re optimizing your internal operations to power your company’s growth. To learn more must-ask questions, and must-have features, check out The Big Book of Solar Software Must-Haves.  Different companies have different challenges. Part 1 of this series investigated 3 solar software must-haves for growing small businesses.  Download The Big Book of Solar Software Must-Haves here. ### 14x Revenue Growth in Solar? Start by Improving and Automating Your Workflows If you had to guess how much money inefficient processes cost the average solar project, what would you say? $100? $500? $1,000? Nope. Inefficiencies cost the average solar project $7,000. That’s $7,000 that could go to expanding your business, or to making a more competitive proposal, or growing your sales team, or… you get the point. But, it’s one thing to recognize that inefficiencies exist, and another to eliminate them. Where do you even start? We recently invited the operations and sales experts from Infinity Energy to show us their workflows. While Infinity was trying to grow their business, they were being held back by some recurring issues, including slow lead-to-sale times, inefficient and inaccurate design processes, high change order rates, and unacceptable soft costs.  Sound familiar? Infinity Energy has achieved impressive results by improving and automating some of their important workflows. The company is growing at two-to-three times the average industry rate, and continues to search for and fix inefficient processes, wherever they are in the business. Let’s look at three areas that have been particularly impactful. Cut design time Efficient, accurate designs are at the heart of any successful solar project. But, slow processes and design bottlenecks were slowing Infinity’s sales process down. Too often, the company had to get someone on the roof to take measurements by hand. All told, the average design was taking the company about 90 minutes. To remove this bottleneck, Infinity looked at ways to create a more automated process. A LIDAR rendering for solar design. Infinity now sends the site information to Aurora’s 3D Modeling Service (3DMS), which generates the site design in 20 minutes. The design is automatically checked for accuracy by LIDAR, then fed into Infinity Energy’s system via API. You can see how this process works in the recorded demonstration they showed here. Result: Reduced design time from 1.5 hours to 20 minutes Decrease change orders and redesigns  Change orders are the bane of solar installers’ existence. Each time a change is needed, it’s money out of your pocket. Infinity Energy faced change orders or redesign requirements in about 10% of their projects, and the costs were adding up. Infinity again turned to software tools and automation to solve the problem. The company uses HD imagery, checks it with LIDAR, then checks it even further with irradiance modeling and sun path modeling. The design is then stress tested with a performance simulation to make sure it delivers what Infinity is promising the customer. This hyper focus on accuracy has paid off in spades, reducing change orders significantly. Result: Reduced change order and redesign rate by 46%, from 9.78% to 4.49% Speed time to proposal In solar, speed is key. According to SEIA and the Solar Foundation, every week of delay correlates to a 5-10% cancellation rate. Put another way, cutting wasted time leads directly to more completed projects.  Infinity found that the time to proposal was one area where they could also eliminate precious hours from the equation. They now directly export permit-ready DXF files, and they automatically generate multiple payback and financing options for customers, based on their specific site, utility rates, and usage. They then automatically embed these designs and charts into their proposals. This has not only reduced time to proposal, but it’s let the sales team do other things like engage over the phone or virtually rather than meeting onsite. All told, Infinity has cut their sales cycle by days. Result: Reduced time to proposal by 75%, from 60 minutes to 15 minutes; cut sales cycle time by days Get the details To learn more about how Infinity accomplished these goals, and see them walk through their processes in detail, check out the full webinar with Infinity’s Austin Seawright (VP of Design & Engineering), Jordan Wise (VP of Inside Sales), and Bill Kennedy (Sr. Technology Manager).  Learn more about improving your business with automation in the webinar. Featured image by FutUndBeidl. ### 3 Solar Software Must-Haves For Growing Small Businesses Running a business is hard, and for small businesses, there is a range of unique challenges that come with the territory. Any small business owner knows that there is very little margin for error if you want to grow your business. Anywhere you can reduce costs and increase efficiency can impact your profits and growth potential.  This is especially true for solar installers, who need to accurately estimate jobs, create up-to-code designs and compelling proposals, and keep an eye on the latest incentives and rates — all while making sure the business runs smoothly.  One thing that can help small businesses be more efficient and competitive is the right solar software solution. Yet, it can be difficult to navigate the ever-expanding sea of solar software. What features do you absolutely need when choosing a solution? What features will help you grow your business? To help answer questions like these, we created The Big Book of Solar Software Must-Haves. In it, we highlight the features every solar installer should look for when choosing their solar software, plus some automation features that can give you a helping hand in your business. In this post we’ll focus on three solar software must-haves small business owners should look for when choosing a solar software platform. All-In-One As a small company owner, keeping costs in check is important, so when it comes to your solar software, it can be tempting to choose the cheapest solution available. But, prioritizing initial cost over longer-term efficiency can result in a lot of wasted time and lost productivity, which in turn makes it difficult to grow your business. For example, you may lose valuable time due to bad onboarding and see lost productivity because of change orders. And if your solution doesn’t handle all aspects of your business — design, financing, sales, etc. — you may find yourself wasting even more time switching between apps, and risk information not getting copied between systems correctly. While initial cost is certainly a factor, software that streamlines and automates the entire process, from design to sales, can actually have a lower total cost of ownership. This helps your company grow smoothly and efficiently — and ensures that you don’t need to acquire a new solution down the road. Bankable Shading Analysis Few things are more frustrating than having to re-do your energy estimates because of an inaccurate shading analysis. While most solar software provides shading analysis of some kind, doing it with precision is what lets you provide bankable shade reports for financing, and it can help speed up the entire sales and approval process. To ensure you’re getting the most accurate analysis, make sure the software is validated by the National Renewable Energy Laboratory and is equivalent to actual on-site shade measurements.  To be sure, ask the vendor about their shading analysis performance before buying. Questions like, “How accurate is your software compared to on-site visits? Down to what percentage?” cut right to the chase. As for their answer? The best software performs within 3-5% of site visit accuracy. Pre-Qualifying Tools Another aspect that will save you a lot of time and headaches is the ability to pre-qualify your customer before you start designing their solution. This includes making sure their home is suitable for solar and that you get a precise estimate of their energy consumption.  A tool that lets you complete fully remote site assessments, with no truck roll needed, frees up valuable resources and shortens the sales cycle. This can mean the difference between multiple trips to the site and qualifying customers from the comfort of your home, only visiting the house once you know they're ready to buy. These three features are just the beginning. As anyone who’s looked into solar software knows, it can be difficult to determine exactly what a solution offers, and what you need. With must-haves and special features for design, financing, and sales, The Big Book of Solar Software Must-Haves can help you sort out what you need, and make sure the software you choose sets you up for success.  Learn more about software features and questions to ask in The Big Book of Solar Software Must-Haves. (Top photo by Michael Wilson) ### Want to sell more solar? Include utility rates in your pitch Get more solar selling tips by subscribing to our blog. A lot of homeowners think that sunny weather is the most important factor when it comes to getting the most out of a solar system. They assume that less sun equals less savings on their electricity bill. As a result, many installers have to fight an uphill battle of convincing the homeowner a solar system is worthwhile. The easy way to win this battle is to talk about utility rates. While it’s true that solar panels produce more energy in places with a lot of sunshine, as most installers know, living in a less sunny state doesn’t mean you can’t save money by going solar. The real question is: How can we convince the homeowner of this without confusing them? One key metric to focus on when selling solar to a homeowner is the utility rate. In general, the rule is: The higher the utility rate, the bigger the potential savings. Here's an example: California is a sunny state with an average solar radiation of 5.62 kWh/m^2/day. This means that anyone who has solar panels in California can expect high electricity production from their solar panels. In contrast, if we look at a state like Massachusetts, the average solar radiation is lower (4.59 kWh/m^2/day), which means production may not be as high. If this were all we looked at, we would assume that California is a better sell, but this isn’t true. Because utility rates in Massachusetts ($0.23/kWh) are higher than in California ($0.18/kWh), the overall savings in Massachusetts are actually higher. Source: https://www.energysage.com/solar/101/impact-of-electricity-rates/ Why it’s important to use utility rates to sell solar One of the main reasons for homeowners to go solar is to save money on their utility bill. A solar system is a big investment and if the customer doesn’t know how much they can expect to save – and how fast the system will be paid off with those savings – it can be a very hard sell. Electricity rates vary from state to state – and even from provider to provider – so it can be difficult to provide an accurate forecast with utility rates constantly changing. The good news is that in most cases the rates are increasingly growing – and they have been for the last decade. Source: statista.com Using this fact to sell solar can be highly effective, but you still need accurate data to make a compelling case. Without an up-to-date rate engine to pull rates from we’re simply guessing what the savings will be. And, if we guess incorrectly, we risk a lot of customers canceling their installations because of inaccuracies in the calculations or because they don’t have a clear ROI. Thousands of new utility rates give you the most accurate data To take the guesswork out of utility rates, Aurora has added thousands of utility rates to its database. The new built-in rate engine helps you get quick access to accurate utility rate information right inside the Aurora platform. All you have to do is select the utility plan your customer uses and the on-demand rate engine then pulls up the most current data. This allows you to show your potential customers exactly how much they can expect to save with a solar system.  This is just one of many tools that make Aurora the most accurate solar design platform on the market. Try the new feature for yourself and say goodbye to change orders for good. Learn more solar selling techniques with the Pocket Guide to Selling Solar. (Photo by israel palacio) ### The 2021 Empower Virtual Summit: Moving Solar Forward Register for Empower 2021 FREE It’s been a year. From the switch to virtual and hybrid sales models, to trying to manage supply chain disruptions, the solar community had to get extra creative.  But, with those challenges came opportunities and the solar industry continued to grow at a rapid pace. Now that 2020 is (finally) in the rearview, we can start to look forward to applying the lessons that we learned to create new opportunities. To help with that transition, we’re excited to announce that our flagship event, the Empower Virtual Summit, is returning on June 8-9. This year’s theme is Moving Solar Forward, and we’ll bring together solar industry leaders, professionals, policy insiders, and growth experts to share their knowledge, expertise, and insights on the unique challenges and opportunities solar faces as we (gently) move into the post-COVID world. The confirmed sessions (so far) include:  How CEOs of leading solar installers are taking what they learned in 2020 to thrive going forward Getting inside the mind of potential solar customers Making remote and hybrid selling work for you Key software tools to level up your operations Expanding your business with new products Making sense of all things NEM   We’re also excited to welcome John Berger, CEO and founder of Sunnova, as our first keynote speaker!  You can register for free here. We look forward to seeing you June 8-9. To get a peek at what the conference is all about, check out this flashback to Empower 2020. https://vimeo.com/537548897 ### How to Make a Breakthrough in your Solar Career Through NABCEP Getting NABCEP certified is a great way to grow your career in the solar industry. Whether you are new to solar or an established pro looking to improve your professional reputation, NABCEP offers accreditations to help you gain knowledge and skills. Many people think getting a professional solar certification takes years of study, but that’s not necessarily the case. With NABCEP’s Associate Certification you can become certified in as little as 2 months. One of Aurora’s account executives, Morgan Altizer, recently went through the NABCEP program and earned her certification. She said, “The idea of getting certified was intimidating at first, but once I started studying it was so much easier than I thought.” Morgan made the decision to get certified for several reasons. Although she had been in the industry for four years, she knew as a young professional that there was more to learn about the technical aspects of our industry. She also wanted to set herself apart and establish her credibility as a subject matter expert, which the NABCEP certification helped her accomplish. In this post, Morgan will share what the NABCEP Associate experience is like, what you can expect from it, and how the certification can help you accelerate your career in the solar industry, regardless of your experience level. Take it away Morgan! What is NABCEP? The North American Board of Certified Energy Practitioners® (NABCEP) is a nonprofit professional certification board and credentialing organization. It offers solar installers, salespeople, and designers the opportunity to achieve the highest level of solar education and experience. The main benefit of getting NABCEP certified is that your customers will have higher confidence in your work. This is because NABCEP guarantees that board-certified members have met minimum levels of classroom instruction, passed a rigorous competency exam, and abide by a code of ethics. NABCEP has several programs, including an Associate-level program, which is intended for individuals early in their energy career or seeking employment in the industry. Eligibility: 3 Ways to Get NABCEP Certified The NABCEP Associate Certification has three potential tracks: Professionals with at least 6 months of work experience in the solar industry can take the certification exam. Former NABCEP Entry-level recipients can complete 12 hours of continuing education credits in order to convert their Entry-level status to the Associate level. Anyone can complete a training course with a registered provider in order to qualify for the Associate Exam. You can prepare for the certification exam online with one of several NABCEP Registered Training providers. I used Heatspring’s Solar PV Boot Camp + NABCEP PV Associate Exam Prep course, taught by Instructor Sean White. This course has a 97% pass rate on the Associate Exam and covers six modules of fundamental solar knowledge. The modules include 40 hours of self-paced videos, quizzes, and collaborative discussion boards. The course is designed to prepare students for NABCEP’s “job task analysis” based on the five performance domains: Application Sales and Economics Design Installation Maintenance For me, the most valuable aspect of the course was getting comfortable with the language and structure of the exam questions. While I was preparing for the Associate Exam, I was also working full-time at Aurora as an Account Executive so the self-paced feature was great to have. It also gave me the advantage of replaying or pausing video material so I could focus on complex electrical concepts and solar design variations. The Benefits of Being NABCEP Certified In my current role, I work with Aurora customers across the country who have varying degrees of expertise. The Associate-level Certification prepared me to handle the more complex technical questions, discuss the details of solar installations, and connect with my clients and customers in a much better way. Some of my customers have even asked about my experience becoming NABCEP certified and whether they should also try to get certified. I easily recommended it because it would allow them to use the NABCEP watermark on job applications or on company branding. This is a quick way to boost their professional reputation and demonstrates a commitment to high-quality work. What Was Most Difficult? Although the Associate Certification is designed for entry-level positions, there are still some technical elements that may challenge people. Not coming from a STEM background, I found the Associate-level content to be pretty challenging, but still approachable with a bit of extra studying. One advantage I did have was that there’s a great deal of overlap between the material covered in the Associate Exam and the design workflows in Aurora. Even though I’ve become an expert in designing with Aurora, many of the tasks, such as irradiance modeling and string sizing, are modeled automatically in Aurora. The course challenged me to understand the fundamentals behind these automatic calculations. I now have a deeper appreciation for Aurora’s amazing software because of how seamlessly it automates all of these complexities. Final Thoughts & Resources I’m excited to work for such a supportive organization and I’m proud to be a female certified NABCEP PV Associate. I applaud the women who set themselves apart as change-makers and disruptors in science, business, and politics. And those whose achievements and boldness paved the way for me to become professionally certified in this industry. This experience has helped me to understand my clients better and be more connected to the solar industry as a whole. I’m excited to continue my solar education through the NABCEP organization and grow my career in the solar industry even further. For more information about NABCEP’s Associate Program, visit their website at https://www.nabcep.org/certifications/associate-program/ Learn more about the fundamentals of solar by subscribing to our blog. ### What Technology Are Solar Installers Using To Win in 2021? Throughout the past tough year, solar installers have proven their resilience and agility more than ever. To discover how they’re adapting to the new economy, we recently launched our Solar Technology Benchmark Survey. After hearing from over 600 installers about what technology solar installers are using, we came away with many insights. While the full report is available here, this post introduces some of our major findings: The Biggest Risk and the Biggest Opportunity #1 Risk: Customers Delaying Or Cancelling Payment  27% of respondents said that the biggest risk to their businesses would be customers delaying or canceling their payments. This risk was shared most among small solar companies with 32% listing it as a big concern, while enterprise companies listed it only half as often. #1 Opportunity: Sell Remotely/Virtually Fortunately, installers have found success through new ways of doing business. For example, 30% of installers think that doing solar sales remotely presents the biggest opportunity. The CEO of Zenernet, J.P. Gerken, notes, “We’ve seen remote sales result in significantly lower cancellation rates than in-person solar sales.”   As they’ve adapted to the social distancing era, many solar installers have already incorporated remote sales processes. How to Sell Remotely To take advantage of remote solar sales opportunities, installers need to implement a strategy that generates and nurtures high-quality leads. A major difference from traditional sales is that building a relationship with each client — including meetings about site assessments, models, designs, and proposals — will usually happen via video calls instead of in-person. This difference in format affects how to approach each step of the sales cycle, from the, “we’re just thinking about solar” phase to project completion. For example, successful video meetings require a bit more preparation than in-person meetings. Extra steps include choosing an easy-to-use video conferencing platform and asking for pictures of the customer’s electric bills and electrical panel beforehand. Similarly, you should try to use easily shareable site design tools and auto-signature apps to make your proposals easier to understand and sign. Below are a few resources that will show you how to create an effective remote sales funnel and/or strengthen the one you already have: Why You Need a Remote Solar Sales Process and How to Build One Getting Started with Remote Solar Sales Unlocking the Remote Sales Opportunity – Empower 2020 Virtual Summit by Aurora Solar Opportunity #2: Cut Soft Costs by Streamlining Processes Managing time efficiently was the second biggest opportunity for improvement that solar installers saw for the near future. Nearly a quarter (23%) of solar companies consider “streamlining internal operations” a major priority for 2021. How to Reduce Solar Soft Costs According to SEIA, while the total cost of residential systems has declined by more than 65% over the last decade, the majority of these cost reductions were in hard costs such as panels, inverters, and hardware. In contrast, the relative soft cost of a system has actually risen: from 58% of a total system’s cost (2014) to 65% (2020). These increased soft costs are partly due to lack of efficient processes. For example, permitting issues and delays are the third most common risk installers mentioned with over 20% of installers citing them. And permit issues are just one of the many process-related bottlenecks that prevent solar teams from closing more deals and finishing more projects. One way to speed up your permitting process is by using a tool like the Orange Button initiative, which is a free resource of continually updated open-source permit information. How to Streamline: Invest in Time-saving Technology For local installers, the biggest improvement area that Aurora’s survey revealed was using a CRM (Customer Response Management) system. Solar businesses with more than 25 employees are doing well in this respect as 83% of them use a CRM system. In contrast, however, only 43% of smaller solar businesses use a CRM. Lacking a CRM system can prevent your business from optimizing your processes and could hurt your business’s growth. Several other digital technologies, including proposal, design, and financing software, are allowing solar installers to accelerate both their deal and their project cycles. The most effective solutions allow everything to be done in one place: for example, Aurora’s software contains site analysis, design, and proposal capabilities. Check out Aurora’s report for the full list of technology types and how these platforms are used by installers. Outsourcing: When It Helps And When It Doesn’t  Outsourced services such as permitting, design, and modeling allow installers to scale up and down quickly. This agility helps their operating capacity keep pace with fluctuating demand throughout the economic recovery. But these convenient options only help if you keep tight quality controls. That includes the solar installer’s perennial favorite outsourced item: lead lists. Why You Shouldn’t Depend on Outsourced Lead Lists It’s easy, tempting, and popular to outsource leads. In fact, over 33% of solar installers rely on purchasing their leads from 3rd party providers to augment their own lead-generation efforts. But it’s not always worth the cost. Since 3rd party leads are often sold to multiple installers, these leads are less likely to result in deals for your business. While it’s possible to buy unique leads (which are more likely to result in deals for your business) these are usually more expensive. The best solution is to prioritize your in-house solar lead generation, viewing third-party leads as complementary to that main effort. For tips on how to do so, listen to Aurora’s free recorded webinar How to Upgrade your Lead-Generation Program for the Post-Covid Era. Conclusion If you haven’t yet upgraded to many of these technologies, services, and strategies, now’s the perfect time to examine your processes with the help of the Benchmark Report and expert’s insights on it. Integrating technology as a solar installer could give your business the edge it needs to flourish in 2021 and beyond. ### MPPT - Everything You Need to Know About Maximum Power Point Tracking When modeling how much energy a solar design will produce, there are many features of the components that must be taken into account to ensure an accurate estimate. One important factor that modeling software must account for in order to avoid over or under-estimating the system’s energy production is whether or not the inverter(s) used are capable of “global maximum power point tracking.” In this post, we will examine what global maximum power point tracking means — and why accounting for it is so important. What is Maximum Power Point Tracking? Maximum power point tracking refers to the combination of PV solar and wind turbines to create the maximum power generation no matter the weather conditions. Understanding Current-Voltage and Power-Voltage Curves The datasheet of a solar panel includes a variety of data that allow one to understand the basic parameters of the device and to mathematically model its behavior within an electrical circuit. Typically, this will include graphs that illustrate the panel’s “current-voltage curve” — also known as an IV curve, for the standard abbreviations for current (I) and voltage (V) in mathematical equations — and “power-voltage curve.” Looking at the power-voltage curve allows us to see the point (or points) at which the panel’s power output is maximized. These graphs illustrate the relationships between three electrical characteristics: current, voltage, and power. Power — which we intuitively understand as the energy produced by the panels — is defined as the rate, per unit time, at which electrical energy is transferred by an electric circuit. Current (I) is the rate at which charge is flowing through the circuit, while voltage (V) is the difference in electric potential energy between two points (e.g., the output wires of a solar panel) per unit electrical charge. A common example used to explain these principles is to think of electricity like water in a tank; the pressure in the tank is analogous to the voltage, while current would be the flow of water out of the tank (Figure 1). The IV curve shows how the panel output current varies with the panel output voltage. The power-voltage curve shows how panel output power (the product of the output current and output voltage) varies with panel output voltage. Figure 1: The concepts of voltage and current as illustrated by the example of water in a tank. Looking at the power-voltage curve allows us to determine the point (or points) at which the panel’s power output is maximized. On the IV curve, two values that are often indicated are “Vmp” and “Imp” — which indicate the levels of voltage and current at which the solar panel’s output power is maximized under standard test conditions (STC). Nothing about the panel itself dictates it must operate at maximum power, however; any point along the IV curve is a valid operating point. In designs using string inverters, it is the inverters that “choose” the operating point. The ability of the inverters to locate the operating point of a solar array at which output power is maximized is referred to as maximum power point tracking (MPPT). If the solar array comprises identical solar panels operating under the same irradiance and at the same temperature — such that each constituent module has the same IV curve and maximum power point — the net IV curve of the entire array (which takes into account the IV curves of each individual module) will have a shape like the blue curve in the left half of Figure 2 below. The green curve shows the output power of the array as a function of output voltage; note that there is a single peak in power, occurring at the “knee” of the IV curve. The inverter will seek out this one point at which array power is maximized. Accounting for Shade: The Role of Bypass Diodes When parts of the array are shaded, however, the IV curve is much more complicated. The IV curves of the shaded modules are different than those of the unshaded modules, especially in regard to how much current the shaded modules can output. When the amount of irradiance on a module is low, the power of the entire string connected to the module can drop. This is due to the fact that the current through the string can only be as high as the current through the most shaded module. Because bypass diodes allow the inverter to “skip over” shaded panels instead of operating at their lower current, the IV curve of an array that is partially shaded will look different than that of an unshaded array. To help mitigate these effects, manufacturers integrate bypass diodes into their modules. A bypass diode can be thought of as an on/off switch, which conducts any amount of current when it is “on” and, conversely, cannot conduct current when it is “off.” When the diode is turned on, it effectively shorts out the shaded module by routing the string current through the diode (and around the module) rather than through the shaded solar cells. Because bypass diodes allow the inverter to “skip over” shaded panels instead of operating at their lower current, the IV curve of an array that is partially shaded will look different than that of an unshaded array. The resulting IV curve may look like the blue curve on the right in Figure 2, with a corresponding power-voltage curve shown in green. As you can see, there are two distinct operating points at which power is “maximized” — a global maximum where the array operates at a higher current and lower voltage, and a local maximum where the array operates at a lower current and higher voltage. The global maximum occurs when the shaded modules are bypassed, and the local maximum occurs when the shaded modules are not bypassed. Figure 2: (left) Current-voltage (blue) and power-voltage (green) curve of a solar array with no shading; (right) current-voltage (blue) and power-voltage (green) curve of a solar array with shading, where the activation of bypass diodes results in multiple possible maximum power points. Global MPPT refers to the ability of an inverter to sweep the IV curve of the solar array (within the operating voltage limits of the inverter) and find the array voltage at which the global maximum power point occurs. How often the inverter sweeps the curve, and the resolution at which it does so, is generally manufacturer- and model-specific. Importantly, not all inverters perform global MPPT. Some inverters are limited to only search for the maximum power point in a local region where it “usually” lies, a high voltage solution where no modules are bypassed. This can be beneficial for sites where there is no shading, because whenever the inverter is sweeping the IV curve searching for the maximum power point it is not actually operating at the maximum power point, and thus not producing as much energy as it could. If the maximum power point is not going to vary much because there is no shade and no reason to activate bypass diodes, then there is no reason to sweep the entire IV curve. Most modern residential inverters are capable of global maximum power point tracking because shading due to trees and obstructions is common and expected. Large commercial inverters and central inverters, however, may not have this functionality because it is generally assumed there will not be much shading. Importantly, not all inverters perform global maximum power point tracking. Some inverters are limited to only search for the maximum power point in a local region where it “usually” lies, a high voltage solution where no modules are bypassed. Modeling Global Maximum Power Point Tracking If your design includes a string inverter with global MPPT functionality, it is critical that the simulation tool you use to model the system accurately represents that behavior. Consider the residential design in Figure 3, which includes two parallel strings connected to an input of an inverter and a third string connected to another input. The irradiance map (left) and 3D model (right) clearly show the effects of shade on this site. Of particular concern is the chimney on the southeast-facing roof plane and the large tree to the west of the house, both of which cast shade on several panels in the design at various times throughout the year. If we simulate this design without global MPPT, the annual production is 5.94 MWh. However, if the inverter actually does perform global MPPT, and we simulate it accordingly, the production estimate increases to 6.25 MWh (Table 1). Figure 3: 2D view and irradiance map (left) and 3D view (right) of a residential design with shading from a chimney and tree, produced by Aurora Solar's software. Annual Production Without Global MPPT Annual Production With Global MPPT Percent Difference 5.94 MWh 6.25 MWh 5.09% Table 1: Annual energy production for a residential design with and without global maximum power point tracking. Given the results shown in Table 1, it is clear that knowing when to model global MPPT is just as important as being able to model it at all. Assuming every inverter has this functionality is dangerous because it could lead to severely underperforming systems post-install. Assuming no inverter has this functionality can be a costly mistake as well, because it may lead the designer to install a larger system size than necessary. This is why Aurora has contacted leading inverter manufacturers to confirm exactly which inverter models perform global MPPT. If a design includes an inverter with this functionality, Aurora will automatically model it. Aurora will even model global MPPT and bypass diodes down to the cell string-level, including the power losses in the diodes themselves. If Aurora has not confirmed the inverter has global MPPT, or that the inverter only performs local tracking, this behavior will not be modeled. The performance simulation logs will indicate whether or not the simulation applied global MPPT. In this way, designers can be sure they are getting simulation results that are as accurate as possible given what is known about the equipment in their designs. Key Takeaways Global MPPT allows an inverter to sweep the IV curve of a solar array to find the point at which output power is maximized, even under partial shading. We found a difference of over 5% in annual production when simulating a design with an inverter that has global MPPT versus one without it. Aurora has worked with leading inverter manufacturers to confirm which models apply global MPPT and automatically simulates this behavior for those inverters. Learn more about the fundamentals of solar by subscribing to our blog. Cover photo credit: NREL/DOE ### What You Need to Know About the 2021 Solar ITC Extension Solar installers across the U.S. were excited on Dec 28, 2020, when the federal solar investment tax credit (ITC) was extended. The ITC, which was initially going to begin phasing out at the end of 2020, received a much-needed two year extension. The extension will provide an extra incentive for going solar until 2023. After overcoming a tough year, solar installers now have another useful tool to convince frugal prospects that going solar is financially feasible.  Here’s a quick breakdown of how installers and homeowners can benefit: What Is the ITC? Here are a few core points you should know about the Investment Tax Credit (ITC):  The ITC is the federal policy which allows solar system owners to deduct some of their solar installation’s cost from their taxes.  The solar ITC is the primary financial incentive to go solar in the U.S.  It has helped the solar industry grow by over 10,000% since 2005. In some cases, it can be used for battery storage as well. Updated Extension Plan The original plan for the ITC looked like this: According to this plan, owners of solar projects which began construction between Dec. 31, 2020 and Dec. 31, 2021 would have only received 22% back in federal tax credits. After Jan. 1, 2022, residential solar systems would have become ineligible and commercial systems would have only gotten back a 10% federal tax credit.  Fortunately for the solar industry, the extension gives everyone more time: 2022 Instead of dropping to 22% at the end of 2020, the tax credit has been frozen at 26% for all solar projects which commence construction between Jan. 1, 2021 and Dec. 31, 2022. This extension includes residential, commercial, industrial, and utility-scale arrays. 2023 The current plan mandates that in 2023, the tax credit for all solar projects will drop to 22%.  2024 and Beyond Beginning in 2024, residential projects will no longer receive a tax credit. However, commercial and utility solar projects will retain a permanent 10% credit. How Can Solar Installers Take Advantage of the ITC Extension?  The ITC extension gives solar installers several opportunities. The primary benefit lies in the fact that in a still-recovering economy, prospects are more money-conscious than ever. These frugal leads will be more willing to go solar if assured of a larger tax credit, so make sure they know about it. Incorporate education on the ITC extension into your solar sales strategy; for example, have your marketing team develop ITC-focused content and ads, and have sales consultants explain the extension to their prospects individually. Installation teams can also benefit from the extension. Previously, the looming deadline for construction commencement could have resulted in a bottlenecked glut of new projects in mid/late 2021. But now, since projects begun in 2022 will receive the same tax break, buyers and teams are no longer harried by the knowledge that time is running out. According to Wood-Mackenzie, installation teams will no longer feel the pressure to commence construction on an overwhelming number of projects at one time. This allows them to make extra sure (as always) that their solar installations are known for sturdiness and safety above all else.  The ITC Extension: a New Opportunity For motivated solar installers, the ITC extension gives a welcome chance to reach prospects with the message that these next two years are the time to go solar. And for the economy as a whole, it’s a much-needed shot in the arm.  All in all, it’s great news for the solar industry. If you're looking to take advantage of this opportunity, one great place to start is by watching Kenneth Williams’ free walkthrough on his how to sell storage using a consultative approach. By leveling up your sales skills for these and other ITC-eligible projects, you’ll have the tools to grow your business in 2021 and beyond.  ### Comprehensive Guide to Solar Panel Types Want to learn more about the solar industry? Join us for Empower 2024 on June 5-6! You'll hear from industry experts on everything from what to expect for the rest of 2024, to how AI is affecting the industry, and more. Register Now The push for renewable energy sources has led to a surge in solar energy use. In the past decade alone, the solar industry grew by almost 50%, buoyed by federal support such as the Solar Investment Tax Credit and strong commercial and industrial demand for clean energy.  As the solar sector continues to rise, it’s worth studying the backbone of the solar industry: solar panels. This guide will illustrate the different types of solar panels available on the market today, their strengths and weaknesses, and which is best suited for specific use cases. What is a Solar Panel? Solar panels are used to collect solar energy from the sun and convert it into electricity. The typical solar panel is composed of individual solar cells, each of which is made from layers of silicon, boron and phosphorus. The boron layer provides the positive charge, the phosphorus layer provides the negative charge, and the silicon wafer acts as the semiconductor.  When the sun’s photons strike the surface of the panel, it knocks out electrons from the silicon “sandwich” and into the electric field generated by the solar cells. This results in a directional current, which is then harnessed into usable power.  The entire process is called the photovoltaic effect, which is why solar panels are also known as photovoltaic panels or PV panels. A typical solar panel contains 60, 72, or 90 individual solar cells. The 4 Main Types of Solar Panels There are 4 major types of solar panels available on the market today: monocrystalline, polycrystalline, PERC, and thin-film panels. Monocrystalline solar panels Also known as single-crystal panels, these are made from a single pure silicon crystal that is cut into several wafers. Since they are made from pure silicon, they can be readily identified by their dark black color. The use of pure silicon also makes monocrystalline panels the most space-efficient and longest-lasting among all three solar panel types. However, this comes at a cost -- a lot of silicon is wasted to produce one monocrystalline cell, sometimes reaching over 50%. This results in a hefty price tag. Polycrystalline solar panels As the name implies, these come from different silicon crystals instead of one. The silicon fragments are melted and poured into a square mold. This makes polycrystalline cells much more affordable since there is hardly any wastage, and gives them that characteristic square shape. However, this also makes them less efficient in terms of energy conversion and space, since their silicon purity and construction are lower than monocrystalline panels. They also have lower heat tolerance, which means they are less efficient in high-temperature environments. Passivated Emitter and Rear Cell (PERC) panels PERC solar panels are an improvement of the traditional monocrystalline cell. This relatively new technology adds a passivation layer in the rear surface of the cell that enhances efficiency in several ways: It reflects light back into the cell, increasing the amount of solar radiation that gets absorbed. It reduces the natural tendency of electrons to recombine and inhibit the flow of electrons in the system. It allows greater wavelengths of light to be reflected. Light waves over 1,180nm can’t be absorbed by silicon wafers and simply pass through, so they end up heating the cell’s metal back sheet and reduce its efficiency. The passivation layer reflects these higher wavelengths and stops them from heating up the back sheet. PERC panels allow greater solar energy collection in a smaller physical footprint, which makes them ideal for limited spaces.  They are only slightly more expensive to produce than traditional panels, due to the added materials needed, but they can be manufactured on the same equipment, and can end up having a lower average cost per watt due to their efficiency. To get a better feel for the benefits of PERC panels, check out our blog 5 Important Benefits of PERC Solar Panels You Need to Know. Thin-film solar panels Thin-film panels are characterized by very fine layers that are thin enough to be flexible. Each panel does not require a frame backing, making them lighter and easier to install. Unlike crystalline silicon panels that come in standardized sizes of 60, 72, and 96-cell counts, thin-film panels can come in different sizes to suit specific needs. However, they are less efficient than typical silicon solar panels. Thin-Film Solar Panel Variations Unlike crystalline panels that use silicon, thin-film solar panels are made from different materials. These are: Cadmium telluride (CdTe) Amorphous silicon (a-Si) Copper indium gallium selenide (CIGS)  Cadmium telluride (CdTe) CdTe has the same low-cost advantage as polycrystalline cells while possessing the lowest carbon footprint, water requirement, and energy payback time of all solar panels types. However, the toxic nature of cadmium makes recycling more expensive than other materials. Amorphous silicon (a-Si) Amorphous silicon panels (A-Si) derive their name from their shapeless nature. Unlike mono-and polycrystalline solar cells, the silicon is not structured on the molecular level.  On average, an a-Si cell requires only a fraction of the silicon needed to produce typical silicon cells. This allows them to have the lowest production cost, at the expense of efficiency. This is why a-Si panels are suited for applications that require very little power, such as pocket calculators. Copper indium gallium selenide (CIGS)  CIGS panels use a thin layer of copper, indium, gallium, and selenium deposited on a glass or plastic backing. The combination of these elements results in the highest efficiency among thin-panel types, though still not as efficient as crystalline silicon panels. Solar Panel Types by Efficiency Among all panel types, crystalline solar panels have the highest efficiency. Monocrystalline panels have an efficiency rating over 20%. PERC panels add an extra 5% efficiency thanks to their passivation layer.  Polycrystalline panels hover somewhere between 15-17%. In contrast, thin-film panels are usually 2-3% less efficient than crystalline silicon. On average: CIGS panels have an efficiency range of 13-15%. CdTe ranges between 9-11%. a-Si have the lowest efficiency at 6-8%. Panel type Efficiency PERC Highest (5% more than monocrystalline) Monocrystalline 20% and up Polycrystalline 15-17% Copper indium gallium selenide (CIGS)  13-15% Cadmium telluride (CdTe) 9-11% Amorphous silicon (a-Si) 6-8% Solar Panel Types by Power Capacity Monocrystalline cells have the highest power capacity, thanks to their single-crystal construction that allows a higher output rating in a smaller package. Most monocrystalline panels can generate up to 300w of power capacity. Recent advances in solar technology have allowed polycrystalline panels to bridge the gap. A standard 60-cell polycrystalline panel is now capable of producing between 240-300w. However, monocrystalline panels still beat polycrystalline in terms of power capacity per cell. Because thin-film panels don’t come in uniform sizes, there is no standard measure of power capacity, and the capacity of one thin-film panel will differ from another based on its physical size. In general, given the same physical footprint, conventional crystalline panels output more power than a thin-film panel of the same size. Solar Panel Types by Cost Monocrystalline panels (or modules as they are technically known) carry a hefty price tag, due to its energy-intensive and inefficient manufacturing process with only a 50% yield for every silicon crystal.  Polycrystalline modules are cheaper because they make use of the crystal fragments leftover from monocrystalline production, which results in a simpler manufacturing process and lower production costs. Among thin-film solar panels, CIGS is the most expensive, followed by CdTe and amorphous silicon. Apart from the lower acquisition cost, thin-film modules can be easier to install thanks to their lighter weight and flexibility, which lowers the cost of labor. While the total cost of residential systems has declined by more than 65% over the last decade, the soft cost of a system has actually risen from 58% of total system cost in 2014 to 65% in 2020. For more information about soft costs, check out our article on the soft costs in the solar industry, and what’s being done to reduce them. Panel (Module) type Average Cost per Watt PERC $0.32-$0.65 Monocrystalline $1 - $1.50 Polycrystalline $0.70 - $1 Copper indium gallium selenide (CIGS)  $0.60 - $0.70 Cadmium telluride (CdTe) $0.50 - $0.60 Amorphous silicon (a-Si) $0.43 - $0.50 Note that these figures don’t include the cost of installation and labor. With labor and other overhead factors, the total can rise to $2.50 to $3.50 per watt. Other Factors to Consider Temperature The temperature of a solar panel can affect its ability to generate energy. This loss of output is reflected through the temperature coefficient, which is a measure of the panel’s decrease in power output for every 1°C rise over 25°C (77°F).  Monocrystalline and polycrystalline panels have a temperature coefficient between -0.3% / °C to -0.5% / °C, while thin-film panels are closer to -0.2% / °C. This means that thin-film panels can be a good option for hotter environments or places that experience more sunlight throughout the year. Fire rating The updated International Building Code of 2012 requires solar panels to match the fire rating of the roof where they are installed. This is to ensure that the modules do not accelerate the spread of flames in the event of a fire. (California goes one step further by requiring the whole PV system, which includes the racking system, to have the same fire rating). As such, solar panels now carry the same classification rating as roofs: Class A effective against severe fire test exposure flame spread should not exceed 6 feet required for wildland-urban interface areas, or areas with high fire severity and wildfire risk Class B effective against moderate fire test exposure flame spread should not exceed 8 feet Class C effective against light fire test exposure flame spread should not go beyond 13 feet Hail rating Solar panels are also tested for hail impacts.  UL 1703 and UL 61703 standards address hail storms, by dropping 2-inch solid steel spheres on solar panels from a height of 51 inches, and by firing 1-inch ice balls on PV panels with a pneumatic cannon to simulate hail impacts. Because of their thicker construction, crystalline panels can withstand hail hitting at speeds of up to 50mph, while thin-film solar panels carry a lower rating due to their thin and flexible nature. Hurricane rating While there is no formal solar classification rating for hurricanes, the Department of Energy recently expanded its recommended design specifications for solar panels to safeguard against severe weather. The new recommendations include:  Modules with the highest ASTM E1830-15 rating for snow and wind loading in both the front and back. Fasteners with true locking capability based on DIN 65151 standard The use of through-bolting modules with locking fasteners instead of clamping fasteners The use of 3-frame rail systems for improved rigidity and support against twisting Tubular frames over open-shaped C channels  Perimeter fencing around PV systems to slow down wind forces  Light-Induced Degradation (LID) LID is a performance loss commonly seen in crystalline panels during the first few hours of sun exposure. This happens when sunlight reacts with oxygen traces left over from the manufacturing process, which affects the silicon lattice structure. The LID loss is directly tied to the manufacturing quality and can range from 1-3%. Summary: Solar Panel Types Compared PERC Monocrystalline Polycrystalline Thin-film Initial Cost Highest High Middle Highest to lowest:CIGSCdTe a-Si Efficiency Highest (5% more than monocrystalline) 20% and up 15-17% CIGS: 13-15%CdTe: 9-11%a-Si: 6-8% Appearance Black with rounded edges Black with rounded edges Blue with square edges Depends on the thin-film variant Advantages Requires least spaceMost efficientHighest power capacity Less expensive alternative to PERC panels without the passivating layer Middle option in terms of cost, efficiency and power capacity Lowest costEasier to install Disadvantages Most expensive initiallySome earlier panels suffered from light and elevated temperature induced degradation High initial costLow yield in the manufacturing process  Low heat tolerance, not suitable in hot environments Shorter lifespan than crystalline panels requires more spaceLeast efficient So, Which Solar Panel Type Should You Use? As crystalline and thin-film panels have their own pros and cons, the choice of solar panel ultimately comes down to your specific property and condition settings.  Limited Space Those living in a dense area with limited space should opt for highly efficient monocrystalline modules to make the most of the physical space and maximize utility savings. If budget permits, going for PERC panels can lower energy generation costs even more in the long run. Large Properties Those with a sufficiently larger property can save on upfront costs by using polycrystalline solar panels, where a bigger panel footprint can offset the lower panel efficiency. However, a larger footprint could also mean added labor costs, so it’s not necessarily cheaper to get a higher quantity of less expensive panels. While the initial cost may be low, it may eventually be offset by reduced efficiency and higher operating expenses in the long term. As for thin-film solar panels, these are best suited for locations where the heavy and labor-intensive installation of crystalline silicon is not feasible. Such locations can include commercial buildings with tight spaces or thin roofs; compact spaces such as recreational vehicles and watercraft; and areas that require flexible installation instead of rigid paneling.  Keep in mind that solar panels are designed for long-term installation, which can be as long as 25 years. So whatever type you choose to go with, make sure to do your homework to ensure that it’s the best option for your needs. To learn more about solar fundamentals subscribe to our blog. ### How Solar Energy Storage Works Solar energy storage works by adding a battery to the solar system installed on the home. There are two primary reasons homeowners want solar energy storage: To have backup power when the grid goes down To take advantage of Time-Of-Use rates to lower their electricity bill Using Solar Energy Storage for Emergency Backup Many homeowners purchase energy storage simply as a backup in case the power from the grid goes out. With wildfires, thunderstorms, hurricanes, and other natural disasters becoming more frequent in recent years, many homeowners are looking to storage as a peace-of-mind purchase. What many solar homeowners don’t realize is that if the grid goes out during the day their solar panels will no longer work. This is because their solar panels are tied to the grid and they will turn themselves off if they no longer detect power coming from the grid as a safety precaution. A storage battery, however, can continue working in these cases, which is why it’s a good way to prepare for emergencies. Using Solar Energy Storage for Electricity Bill Savings The second most common reason homeowners get solar energy storage is to take advantage of time-of-use (TOU) rates. A time-of-use rate is when a utility company charges higher rates at a certain time of the day and lower rates at other times. The utility companies do this when there is higher demand on the grid, in the evenings when everyone is at home using power for instance. A battery can get around TOU rates by charging itself during the day, either from the cheaper grid energy or from the solar panels, and then discharge that power during the evening. This allows the homeowner to capture any extra energy their solar panels generate and use it later once the sun has gone down, thereby reducing their utility bill. Required Components for Solar Energy Storage Solar + storage systems require a number of additional components to make them work. While there are many variations that you can use, the basic components for any solar + storage system are: Solar Panels Solar panels allow you to charge your battery with clean renewable energy. You can have an energy storage system without solar panels, but having solar panels is preferable. The four most common types of solar panels are: Monocrystalline, Polycrystalline, PERC, and Thin Film. Batteries The battery is the center of your energy storage system. The two most common types of batteries are Lithium-Iron-Phosphate (LFP) and Lithium-Nickel-Manganese-Cobalt (NMC). Go here to learn more about home battery storage. Inverters Inverters are a device that converts energy from AC to DC and vice versa. Inverters are needed to convert the DC energy from your solar panels and batteries into AC energy that is used in the home. Some batteries and solar panels now include a built-in inverter into their components. Critical Load Subpanel A critical load subpanel is a device that determines what will get powered if the grid goes out. Most batteries can’t power an entire home for very long. To extend the amount of time your battery lasts during an outage, you can choose to power only a few critical appliances in your home (such as the refrigerator and lights). The critical load subpanel allows you to choose those critical loads and it’s very important that solar installers sets this up correctly for your battery’s capacity. Other Components There are many smaller components needed to make a solar + storage system work such as AC & DC disconnects, fuses, circuit breakers, switchgear, cables, electrical conduit, mounting hardware, battery enclosures, and safety equipment. Some modern solar storage systems even include software and mobile apps to give even more control to the homeowner. Solar Battery Terms There are a few key terms that are specific to solar battery storage. Knowing these terms is helpful when comparing types of solar batteries and understanding their advantages. Cycles A single “cycle” of a battery is a single discharge and recharge. Life-cycles refers to the number of times a battery can be charged and discharged before it needs to be replaced. Although all batteries can be discharged to 100%, many battery types should only be discharged to 70-90% of their total capacity. This is called the “depth of discharge.” Cycles are also important because some manufacturers use number of cycles for warranty tracking. Depth of Discharge The depth of discharge refers to how much of a battery’s energy is discharged before it’s charged back up again. Many types of batteries shouldn’t be discharged completely because it can lower the lifespan of the battery. Lithium batteries, for instance, should only be discharged 90% before they should be charged back up again. Life-span The estimated life-span of a battery is how long the battery will last before it should be replaced. Lifespan can either be measured in number of years or number of cycles. A lithium battery, for example, has an estimated lifespan of 13-18 years or around 6,000-10,000 cycles. Types of Solar Batteries There are three main types of solar batteries: Lithium-ion, lead-acid, and flow. The most commonly used type of solar battery is Lithium-ion, of which there are two main types. Lithium-Ion Batteries For Solar Lithium-ion batteries are the same type of batteries found in your cellphone, laptop, and other electronics. They have become preferred in the solar industry because they can discharge deeper and have more lifecycles than traditional lead-acid batteries. A typical lithium-ion battery will give you around 6,000-10,000 cycles at 90% discharge – so they will have a lifespan of roughly 13-18 years. The two most common types of lithium-ion batteries are Lithium-Iron-Phosphate (LFP) and Lithium-Nickel-Manganese-Cobalt (NMC). NMC are the most widely used, but LFP batteries are gaining in popularity and will soon be the dominant battery in the market. LFP batteries are preferred for their stability, durability, and performance. They are less prone to thermal runaway, also known as exploding, so they are generally the safer option. NMC batteries  are preferred for their high energy density, lower cost, and long cycle life. Many companies that already produce batteries for other applications, such as Tesla, prefer NMC batteries because they already have the infrastructure to produce them. Lead-Acid Batteries for Solar Lead-acid batteries are the same type of battery used in your car. They are an older technology that is mostly used for off-the-grid and DIY applications. Lead-acid batteries are a very well tested technology, but they lack the energy density of their Lithium-ion competition. This means that you’ll need a lot more lead-acid batteries for the same amount of energy storage as a lithium-ion setup. The other drawback to lead-acid batteries is that they have a lower discharge capacity and number of lifecycles. Most lead-acid batteries have a recommended discharge of 60%, meaning you shouldn’t discharge them lower than 60% or you’ll reduce their lifespan. They also have a lower cycle life of about 1000-3000 cycles before they need to be replaced. Flow Batteries for Solar The newest battery technology is what’s known as a flow battery. A flow battery uses a water-based liquid (Zinc Bromide) that flows between two tanks.  The two main advantages of a flow battery are its discharge capacity and its safety. Flow batteries can be discharged to 100% of their capacity and won’t lose any of their lifespan as a result. They are also safer because the liquid mixture inside is a natural fire-retardant so there isn’t any risk of thermal runaway (explosions). We have an entire post on best solar batteries for your needs. If you need more clarification, check it out! Energy Storage Placement There are two broad types of solar energy systems: DC-coupled and AC-coupled. Solar panels and battery storage equipment typically use direct current (DC). The grid and the outlets in a home, however, use alternating current (AC).  To make a solar panel and battery system work with the grid, the system’s DC power must be converted to AC power. This is done using a device called an inverter. Advantages of DC-Coupled Batteries A battery can be installed into a system either on the DC or AC side. The benefits of installing a battery on the DC side is that the battery and solar panels can both use the same inverter, which saves money on equipment and labor costs. DC-coupled systems also tend to be more energy-efficient and have better energy controls. Advantages of AC-Coupled Batteries There are some cases where you may want to install the battery on the AC side. If a solar panel system has already been installed on a home, you may want to use an AC-coupled battery so that you don’t have to rewire the existing solar system. AC-coupled systems are also easier to add to in the future and provide more control since the battery uses its own inverter. Should You Install Solar Energy Storage on your Home? There are a lot of variables that will determine whether an energy storage system is a good fit for your home. The two main variables to consider are energy reliability and cost. The Cost of Energy Storage While prices have been steadily decreasing over the last several years, energy storage systems are still fairly expensive. The typical system on a 10kW home can range from $5,000 to backup just a portion of the home’s energy, to upwards of $50,000 to backup the whole home’s energy consumption. While there are new tax credits and incentives that lower the cost of energy storage, the price of energy storage is a tough obstacle to overcome. One way to overcome this obstacle is by modeling out several energy storage options using the storage feature in Aurora. Aurora can model your current energy consumption and automatically provides smart recommendations that you can also customize to your exact needs. Another way to determine if storage is right for your home is by modeling out your time-of-use rates. If you live in an area with a high time-of-use rate, you may want to get a battery storage system to use during those high time-of-use periods. Energy Reliability and Storage Selling storage on cost-savings can be tough, which is why a majority of installers sell battery storage on peace-of-mind. With natural disasters growing in frequency, many homeowners simply want the energy reliability that comes with a battery storage system. Making storage a peace-of-mind rather than a return-on-investment purchase is highly recommended when the circumstances allow for it. If you want to learn more about how to best position storage, you can read our Pocket Guide to Selling Storage where we share positioning tactics, common objections, and even some marketing examples. ### What to Know About the Solar ITC Step Down Whether you’ve been working in the U.S. solar industry for a decade or a week, chances are you’re familiar with the solar Investment Tax Credit (ITC), one of the most important incentives for solar customers. This federal policy, which allows owners to deduct 30% of the cost of a solar installation from their taxes, has been a cornerstone in the growth of the solar industry. Stakeholders breathed a sigh of relief in December 2015 when the solar ITC–previously set to expire at the end of 2016–was extended for an additional five years. But starting in 2020, the value of the tax credit dropped to 26% of the system cost as part of a multi-year phase-out. In this article, we break down what solar contractors need to know to understand whether the full 30% ITC will apply to their customer's project depending on the timeline for the project's completion. Clarity on this point is essential to accurate modeling of the finances of the project and setting the right expectations for your customer. [Note: This blog post is provided for informational purposes only and does not constitute legal advice. Consult an attorney for guidance on your particular situation.] The solar ITC will begin to be phased out starting in 2020. The phase-out will end in 2022 when the ITC drops to zero for residential projects and a permanent 10% for commercial projects.  Differences the ITC Step Down Between Residential and Commercial Projects It is important to understand that there are differences in the cut-off for when residential solar projects and commercial solar projects may claim the full solar ITC (as the Solar Energy Industries Association, SEIA, explains here).  This is because the tax credits for these two types of projects are designated in different parts of the U.S. tax code. Although both residential and commercial PV systems have been eligible for the 30% solar ITC, the tax credit for businesses who invest in solar energy systems credits is established in Section 48. The residential solar energy credit for individuals who purchase a solar energy system is found in Section 25D. A major difference between the residential and commercial solar ITC is that commercial projects that "commence construction" before the ITC step down date of January 1, 2020 and are completed before 2024 can still receive the full 30% tax credit. In contrast, residential systems do not have this "safe harbor" period. They must have been completed (that is "placed in service") before January 1, 2020, or else the lower 26% tax credit will apply.  Understanding the Solar ITC Step Down for Residential Projects As SEIA explains, "To receive the full 30% residential solar tax credit, the system must be 'placed in service; before the end of the day December 31, 2019. It is not enough to have signed a contract, or to have made a down payment, or even to have begun construction. There is no bright-line test from the IRS on what constitutes 'placed in service,' but the IRS has equated this with completed installation in a Private Letter Ruling." In the case of newly built homes with solar PV systems, where the customer is the owner of the PV system, SEIA clarifies that eligibility for the solar ITC is established based on when the customer moves into the home. This is only the case for solar installation purchased in connection with the construction of a new home. In the case of solar installations on existing homes, eligibility is based on the time of completion of the PV system. Understanding the Solar ITC Step Down for Commercial Projects Solar ITC eligibility is a little less black and white for commercial solar projects. If construction on the project has not started before January 1, 2020, the lower tax credit will apply. But what qualifies as starting construction? Solar contractors need to have a firm grasp on the “commence construction” policy to know whether a commercial project that may extend into 2020 will qualify for the 30% ITC. In June 2018, the IRS released guidance that answers the question. Understanding the “Commence Construction” Clause According to the IRS, there are two ways to establish that construction on a commercial solar project has started for the purposes of claiming the solar ITC: passing the “Physical Work Test” by starting “physical work of a significant nature,” or passing the “Five Percent Safe Harbor test” by “spending five percent or more of the total cost of the facility in the year that construction begins.” In either case, the system owner will need to show continuous progress on the project after that point in order (the “Continuity Requirement”) in order to qualify. Let’s delve into each of these cases a little more closely: The Physical Work Test The physical work test establishes that construction has commenced on a project when “physical work of a significant nature” has begun on the project. The IRS states that whether the work is considered “significant” is based on the nature of the work, rather than the amount or cost of that work. In the case of a solar installation, one example of qualifying work that the IRS provides in their guidance document is the installation of racking to affix solar panels to a site.  A PV system owner can establish the start of a project for the purpose of claiming the solar ITC by starting physical work of a significant nature (what the IRS calls "the Physical Work Test").  The qualifying work may be undertaken by the taxpayer (i.e., the PV system owner) or a contractor working under binding written contract entered into prior to the start of work (i.e., your solar installation company). Technically, this work may take place on-site or off-site, however, in the case of a residential or commercial solar PV installation off-site work is less likely to apply. Off-site work does not include work “to produce components of energy property that are either in existing inventory or are normally held in inventory by a vendor”–as would typically be the case for solar equipment. “Preliminary activities” do not qualify for the Physical Work Test. Some examples of preliminary activities include planning or designing the project, securing financing, researching, obtaining permits and licenses, clearing a site, or removing existing solar panels or other components that will no longer be part of the energy property. Again, once construction has commenced on the project for the purposes of qualifying for the solar ITC, continuous work must be done on the project until it is completed. The Five Percent Safe Harbor Test An alternative way that a solar system owner may establish that construction has started on a project for the sake of qualifying for the 30% ITC prior to the end of 2019, is by having paid or incurred five percent or more of the total cost of the energy property. In the case of a solar PV installation, this refers to the cost of the PV system. This does not include the cost of land or any property not integral to the energy system.  A PV system owner can also establish the start of a project for the purpose of claiming the solar ITC by incurring five percent or more of the cost of the project (what the IRS calls the "Five Percent Safe Harbor Test"). There is an important caveat to this method of establishing the start of the project. If the project cost exceeds what was anticipated, so that the amount the system owner paid to satisfy the five percent Safe Harbor later falls short of five percent of the total cost, they will be found not to have met the requirement. As with the physical work test, the system owner must also show continuous progress after this point in order to continue to qualify for the Safe Harbor. The IRS notes that this could include “(a) paying or incurring additional amounts included in the total cost of the energy property; (b) entering into binding written contracts for the manufacture, construction, or production of components of property or for future work to construct the energy property; (c) obtaining necessary permits; and (d) performing physical work of a significant nature.” Combination of Methods If a PV system owner meets both methods of establishing the commencement of construction, whichever method occurs first will be used as the date in which construction began for the purposes of the solar ITC. Guidance from the IRS provides solar customers, contractors, project developers, and others the clarity they need to determine whether and at what level the solar ITC will apply to a given project. With this information, your solar company can better advise prospective customers on how this key federal incentive will reduce the cost of their project. At the time of writing SEIA is working hard to build support for an extension of the solar ITC. You can find out how to get involved in this initiative here. Editor's Note: A version of this article was originally published on July 25, 2018. It was updated and republished on January 6, 2021 to clarify how the step down of the ITC applies to residential projects and reflect that the commence construction clause applies only to commercial projects. ### What Our $50M Raise Means for Solar We’re excited to share that Aurora Solar recently raised $50 million in Series B financing led by ICONIQ Capital, a leading software investment firm. We are delighted that existing investors Energize Ventures, Fifth Wall, and Pear VC also joined the round. Not only is this a big moment for our team, but also for our customers—the thousands of solar companies that trust us to power their businesses every day. Thank you for your partnership in this journey to bring solar energy to communities all around the world. This is also a momentous milestone for the solar industry. For a long time, solar has been considered a niche industry and this investment demonstrates that those times are over. It is a testament to all the hard work that the industry has put in over the last few decades to create a future that is powered by affordable, abundant solar energy.    Times of Change This year’s pandemic accelerated trends that were already reshaping the solar industry, specifically solar businesses transitioning from on-site visits and door-to-door sales to remote site assessments and selling solar online. As a result of this shift, solar businesses were able to keep their doors open and the residential solar market was less severely impacted by the pandemic than initially forecasted.  We were glad that we can support the industry in this transition. There are many benefits to running your business on a software like Aurora—significantly reducing site-visits, change orders, costs, and time spent per installation project, increasing accuracy, and meeting your customer’s expectations. Consumers today are more comfortable buying big ticket items online and they’re more likely to shop around online, requiring quick response times and more customization throughout the entire “going solar” process. Making this shift might seem daunting, but it is critical that we make it—and we’re here to help.   A Full Year 2020 was a full year for us. In early March, our software was the first to be approved by the California Energy Commission (CEC) to demonstrate compliance with the new California solar mandate. In July, we launched our first (virtual) solar summit bringing together policy and industry experts to share insights to help businesses through the pandemic and an economic downturn. We also listened to our customers and added storage design features to Aurora, allowing our customers to confidently quote solar plus storage systems. Then in October, we surpassed 4 million solar projects designed in Aurora, with the last million added in a record time of 6 months. And just earlier this month we received the Rising Star Company award at the 22nd annual S&P Global Platts Global Energy Awards.   We’re Just Getting Started We are beyond thankful for all the solar advocates around the world and our customers who have been on this journey with us. Ultimately, our successes are your successes. We’re all in this together, and we’re just getting started! Aurora Solar’s mission is to create a future of solar energy for all. In order for this to happen, we need to lower the soft costs of installing solar so that solar energy becomes increasingly affordable and cost competitive with fossil fuels. Hardware costs over the last decade have decreased significantly, making soft costs the last frontier to make solar widely affordable. Software solutions, like Aurora, are key to lowering solar’s soft costs, and the faster we can transition away from fossil fuels, the faster we can create a future powered by clean energy.   Join the Movement Our Series B funding gives us the resources to make a future powered by solar energy a reality. We are planning to expand all our teams—engineering, marketing, customer success, and product—and we need all the help we can get.  If you share our vision of the future, want to help slow global warming, work at the intersection of solar energy and technology, and work on something challenging, we invite you to join our team! To keep up with the latest solar news, subscribe to our blog. ### Top 10 Solar Articles of 2020 from the Aurora Blog 2020 has been a year like no other. The pandemic and stay-at-home orders posed a unique risk to the industry. However, the solar installation community, which is well-known for its grit and resilience, adapted quickly and increased its adoption of remote sales, operational tools and outside services.  When we looked back at the most read blog posts from the Aurora blog this year, we saw several trends that reflect these changes. For starters, we saw a growing interest from installers in topics that help them deal with change, such as How to Handle the “Now is Not a Good Time” Objection and Getting Started with Remote Solar Sales. We also saw an interest in looking towards the future of the solar industry as a whole, such as The Duck Curve: A Review of California’s Daily Load Predictions and Is Permitting Killing Your Solar Business? Help May Be An Orange Button Away. Lastly, we noticed that even in the midst of an uncertain year, solar installers were still eager to learn about the latest technologies and policies, such as 5 Important Benefits of PERC Solar Panels and Module-Level Rapid Shutdown: New Requirements for Fire Safety.   Here are the top 10 Solar Blog Posts of 2020 (in order of recency): Is Permitting Killing Your Solar Business? Help May Be An Orange Button Away. What are AC and DC Disconnects and Why Do You Need to Use Them? 7 California Solar Incentives you Need to Know 5 Important Benefits of PERC Solar Panels You Need to Know (+Infographic) What You Need to Know About PERC Solar Cells How to Handle the “Now is Not a Good Time” Objection in 3 Steps The Duck Curve: A Review of California’s Daily Load Predictions Getting Started with Remote Solar Sales How to Read a Solar Panel Specification Sheet Module-Level Rapid Shutdown: New Requirements for Fire Safety   Here's a breakdown of each blog post and what you'll find inside: Is Permitting Killing Your Solar Business? Help May Be An Orange Button Away. Collecting and reporting permit-related project data contributes as much as 30% to overall solar project costs, not to mention the time solar installers must spend tracking down local jurisdictions and their contact information. Sunspec Alliance’s Orange Button Project aims to lower these costs and simplify the permit process — for free.    What are AC and DC Disconnects and Why Do You Need to Use Them? AC and DC disconnects are essential components necessary for placing a solar panel system on your roof and connecting it to your home. Plus, the majority of building codes across the United States require these disconnect switches to be in place, so it’s important to understand how they work and why they’re needed.   7 California Solar Incentives you Need to Know With California’s year-round sunny skies, ambitious climate change goals, and a selection of solar incentives to choose from, going solar might be more affordable than your customers think. Here’s a compilation of the Golden state’s top solar incentives that you can share with your prospective residential customers to help them go solar.   5 Important Benefits of PERC Solar Panels You Need to Know (+Infographic) A few years ago PERC solar panels were just another option in a solar installers toolbox. Today, however, PERC panels are becoming the dominant panel in the industry, and rightfully so. If you’re interested in learning the benefits of PERC solar panels, without all the technical jargon, this post is for you.     What You Need to Know About PERC Solar Cells For a more in-depth look at how PERC solar panels work and some of their other advantages, here’s a more technically-minded post. We’ll review some common inefficiencies found in standard solar panels and then dive into the pros and cons of choosing PERC over traditional panels.   How to Handle the “Now is Not a Good Time” Objection in 3 Steps “It’s just not a good time right now.” This all-too-common sales objection conjures up images of front doors slamming shut, phones clicking off, and chat windows closing out. Objections about timing certainly aren’t new, but if you’re working in sales today you may be hearing them now more than ever. Here’s how to handle this objection with the current economic climate in mind.   The Duck Curve: A Review of California’s Daily Load Predictions In order to continuously balance the grid, CAISO needs to be able to track and predict the volume of energy coming from all the state’s sources. CAISO began preparing for the impacts that an increasing volume of intermittent renewable energy—predominantly solar— will have on the net load of the grid. This prediction became known as the “Duck Curve” because of its vague resemblance to a duck. In this post we’ll see how accurate the prediction is and what it means for the grid.   Getting Started with Remote Solar Sales Making the transition from meeting your customers in-person to conducting your solar sales 100% remote for the first time can seem daunting, but it can be done. Some of the most successful and fastest growing solar companies have already adopted remote sales processes. Several advantages of remote selling include increased territories, lower customer acquisition costs, zero travel, and increased appointment bookings.   How to Read a Solar Panel Specification Sheet A solar panel spec sheet provides valuable information about the operating parameters of a panel, and can help designers, engineers, and installers determine how to configure a solar PV system. In this post we’ll go over how to read a solar panel spec sheet and some of the more important areas you should pay attention to.   Module-Level Rapid Shutdown: New Requirements for Fire Safety Several states, including California, have adopted newer rapid shutdown requirements starting in 2020, and many others have already adopted them. In this post, we’ll discuss what these requirements mean for your business as well as what you need to know to design safe and legal PV systems in areas with these requirements.    ### Could Community Solar Bring Clean Energy To All? “If I don’t own a roof, I can’t go solar.”  Nearly 33% of Americans rent their living space. Whether they live in an apartment, condo, co-op, or townhome -- millions of solar prospects are held back by the common misconception that solar is only for homeowners. What most don’t know, is that with the advent of community solar farms, that’s not the case any more.  Community solar farms, which are large-scale solar installations, allow almost anyone in that solar farm’s jurisdiction to save 5-30% of their electric bill, even if they don’t own a roof.  In this post we’ll explain how community solar works and how one woman is leveraging it to bring energy equality to underserved communities.   How Community Solar Works Community solar farms are large-scale panel installations that produce large amounts of solar energy. These projects connect to the local utility grid, which enables them to deliver cheap solar energy to local participants.  Since solar energy is usually cheaper than fossil fuel energy, community solar participants pay up to 25-30% less for the same amount of electricity. This lower cost is reflected in their monthly electric bill in the form of “solar credits.”  If customers don’t use all their allotted solar energy within a billing cycle, their unused solar credits roll over to the next month. Since participants don’t have to install any equipment at their residence, community solar allows almost anyone to cut down their electric bill with clean solar energy.   WeSolar: Connecting Prospects to Local Solar Farms Despite community solar’s benefits, it’s still relatively unknown simply because people don’t know that community solar is an option for them.  Moreover, some solar farm developers’ participation requirements are difficult for historically overlooked communities to achieve.  “That’s why I got into solar,” WeSolar founder Kristal Hansley explains. “When I first started in the solar industry, there wasn’t a contract that allowed low/moderate income communities into such programs. You had to have a 680 credit score, two forms of payment, and sign a 20-year contract.  For members of communities that have historically been exploited by energy companies falsely promising them savings, a 20-yr contract is a big turn-off.” But when new solar-friendly laws passed in her home state of Maryland, Kristal saw how community solar could now give low and moderate-income residents a way to save. To help bring under-resourced communities affordable access to community solar farms, Kristal founded WeSolar, becoming the first black woman CEO in the U.S. solar industry.  “I was determined to make WeSolar a different kind of energy company: one dedicated to giving people control over their expenditures on electricity, and to offering them better value,” she says.  How WeSolar works:  Interested residents sign up at the WeSolar website. WeSolar connects their residence to a solar farm within their utility provider’s territory. Each territory often has several community solar options, so WeSolar advisors work to find the best fit for each client’s needs.  Participants keep their existing utility accounts and providers. WeSolar simply replaces a portion of their electricity with a less expensive source: solar power.  Savings are similar to rooftop savings: 5-30% off a current utility bill. With WeSolar, households of 4 making under $80,000/yr, automatically qualify for 25% off their energy bill. WeSolar (and community solar in general) is no cost to the participant and requires no upfront or installation fees.  WeSolar’s Results Maryland cities, including Baltimore and Camden, have benefited significantly from participating in WeSolar.   “Baltimore and Camden are neighborhoods that have historically been under-resourced, and certainly left out of the green energy movement,” says Hansley.  “But now, by signing up for WeSolar, the average household there saves $250 a year and $6,000 over the course of 20 years (the average life of solar panels).  Especially in this current moment, with a pandemic-induced recession, these farms help to create economic resilience.” Building on these successes, Kristal has begun to implement WeSolar in New Jersey as well. Ultimately, she plans to roll out the WeSolar program throughout the mid-Atlantic states.   Kristal Hansley’s Community Solar Takeaways  Asked what solar installers should know about community solar, Kristal had several points:  Community solar exists -- and connecting to it is very straightforward with the help of organizations like WeSolar.  Large-scale solar farms open up the market by 80%, because so many people interested in saving on energy don’t have a rooftop to install panels on. While most solar rooftop owners are 55+ homeowners, community solar gives access to an entirely new generation (Millennials, who often don’t own a house) as well as low/moderate income families.  Finally, the benefits aren’t just for those who participate: solar farms stimulate the entire local economy by creating more green jobs.  To find out more about Kristal Hansley and WeSolar, see her interviews with Vogue “Born for This”: Meet the First Black Woman to Launch a Community Solar Company and Black Enterprise.    ### New Solar Export Credits in Utah: What the Changes Mean for Installers Net metering (NEM) policies, which provide customers with credits for excess electricity produced from their home’s solar panels, have been important in spurring the adoption of PV systems. Recently, however, some utilities have begun removing or changing NEM policies, either by modifying the credits provided or by trying to remove net metering altogether. Rocky Mountain Power in Utah is one of the utilities that offers a NEM alternative in their transitional tariff. Rather than compensating solar production at the full retail rate (typically 8.8 - 11 cents per kWh for residential customers), owners would get paid a flat 9.2 cents per kWh for their exports. This was a fair deal for a while as it was pretty close to the retail rate. At the end of October 2020, Utah’s Public Service Commission (PSC) granted a Rocky Mountain Power request to reduce that export credit from 9.2 cents per kWh down to 5.6-5.9 cents per kWh, seasonally adjusted. This change is applied to new customers going forward - those with existing systems will still continue to enjoy a fair export rate. In this blog post, we crunch the numbers to see if solar is still feasible in the beehive state. Quick Takeaways: Residential solar is still viable in Utah, but the value has been substantially reduced. The best customer value may no longer be at 100% energy offset, but closer to 60%. This isn’t great for company bottom lines The low export rate makes selling excess PV energy less beneficial to the financial bottom line. Understanding your customer’s actual load profile and increasing self-consumption will give better outcomes. What has Changed after the Rocky Mountain Power Credit Cut? The biggest change to the net metering tariff in Rocky Mountain Power territory is that excess solar energy exported to the grid - shown in yellow in the chart below - receives lower compensation than before. A homeowner’s bill can be divided into three parts. First is the sum of all the charges they accrue (blue). From this we can subtract the credits they receive for any excess energy their solar panels produce (yellow). The green section is energy that the solar system produces during the day and offsets any energy being consumed at that time.  The yellow export section used to be valued at 9.2 cents per kWh, and now it’s down to 5.9 cents in the summer, 5.6 in the winter. Customers who export energy will see less credits for that portion of power, and therefore reduced bill savings. We’ve estimated that a PV system which offsets 100% of the homeowner’s energy usage will still end up exporting 50-70% of those kWh to the grid during the day, and the house will buy that energy back during the off hours. Example: 10,000 kWh household If you take an average house using 10,000 kWh per year that has a 100% energy offset for the year and has 40% self-consumption, then 6,000 kWh will be exported to the grid. Under the previous export rate, the homeowner would receive $550 in bill credits for that energy, but under the new export rate, they would only receive about $350. They would have to pay $200 more annually than before.  What are the Financial Impacts? Going beyond our simple example above, we took a look at how this will change customers’ bills going forward (for those who are not grandfathered in), using the same parametric study we used in our whitepapers. One of the graphs we used in our whitepaper is an annual bill vs energy offset chart. We modeled a few different levels of energy consumption to see how the savings stack up for different cases. For example, a customer with 12,000 kWh annual household usage (orange) with a solar PV system that offsets 90% of their household energy usage, would have paid about $250/year in utility bills. We show the range of typical bills for customers under the old 9.2 cent export rate in dashed lines, and the range of bills for customers under the new 5.6-5.9 cent export rate in a shaded band. Especially at the higher levels of energy offset, when customers are exporting more energy to the grid during the day, the bills under the new policy can be several hundred dollars more over the course of the year. Customers with relatively small PV systems - closer to 20% offset - rarely overproduce during the day so they are unaffected by the policy change. Is solar still a good investment? One metric of a PV system’s value is the net present value (NPV) - the value of the bill savings over the lifetime of the panels, minus the upfront costs. In the chart below, we can see that the ideal system size has been reduced because of the new credit changes. Whereas in the past you’d ideally want to offset 100% of your energy use, now the best option seems to be about 60-70% of energy use. This is because that last 30-40% of energy you produce will end up going straight to the grid and you won’t get much credit for it. Assumptions: a customer pays cash for a $3/W system, gets the 26% ITC, and has a modest 3% utility escalation rate and 2% discount rate Should you get a battery? One way to get around utility modifications to NEM programs is to purchase a home battery. This allows you to store your extra solar energy and use it later, instead of putting it back into the grid. While this can make financial sense in some cases, in the Rocky Mountain Power case the price difference is only 3-5 cents per kWh, and the current battery costs may not justify purchasing a unit solely to increase self consumption (energy arbitrage). There are still many benefits to purchasing home storage though! How to Model the Reduced Export Rate in Aurora In the Utility Bill Savings section of Aurora, you can specify a fixed export rate of 0.058/kWh (an average between summer and winter months) to model the new export rules. Please make sure to specify an annual true up period of March for the Rocky Mountain Power territory, since this does offer credit benefits during the winter. ### Is Permitting Killing Your Solar Business? Help May Be An Orange Button Away. Every solar installation requires fire, building, and electrical permits. Unfortunately, procuring these permits is often a long, complicated, and expensive process. Collecting and reporting permit-related project data contributes as much as 30% to overall solar project costs, not to mention the time solar installers must spend tracking down local jurisdictions and their contact information.   Sunspec Alliance’s Orange Button Project aims to lower these costs and simplify the permit process -- for free. In Sunspec’s recent webinar, “Standardized Solar Data at the Tipping Point,” both creators and users of Orange Button explained why the solar permit process is so challenging and how Orange Button helps to solve those challenges. Why Getting Authority-Having-Jurisdiction (AHJ) Data is So Challenging The Authority-Having-Jurisdiction (AHJ) is the civic authority for a town or county. To install solar on a given site, solar installers must receive permission from the location’s AHJ. This permission depends on the installer’s adherence to the building, electric, and fire regulations mandated by the AHJ for that exact location. This means that the first challenge of solar permitting is verifying the AHJ of a specific location. During the webinar, Aaron Casillas from Titan Solar Power explained how challenging this can be: “Solar builders need to know the exact boundaries of county lines with such precision. Even just half a block down from a given address, you could be in a completely different jurisdiction with completely different permitting requirements.” The lack of a national database for AHJ locations and requirements has made figuring out AHJ boundaries difficult. Aaron spoke for many solar installers when he noted: “It’s tiresome to not have a single permit information database. We’d spend so much time pulling bits of information from all the county assessors, with no way to quickly tell what the AHJ and regulations were for a given project. And mistakes in the permitting process are costly: applying just one wrong fire code in a design can create a host of problems that result in delays, more paperwork, redesign, impatient customers, and even cancellation.” In response to this industry-wide challenge, Sunspec created a database known as “Orange Button.” What Orange Button Is & How It Helps Orange Button is the first free, searchable, crowdsourced online database for the AHJ registry. Officially defined as an open data exchange standard for the distributed solar PV industry, it makes finding the AHJ and regulations for a site easier and faster. All an installer needs to do is type an address into the search bar and they’ll get the location’s: AHJ and its contact information Fire, building, and electric code regulations Latitude and longitude When Aaron used the Orange Button tool at Titan Solar he said: “Integrating our system with Orange Button’s AHJ registry has significantly reduced the time spent verifying our information. We’ve also been able to cut down on employee training time and costs, since our employees don’t have to search far and wide for permit information any more. They can just learn one system, then pull data from one source.” Orange Button has an open API so that any company can build it into their website, product, and/or services. How Orange Button’s Crowdsourced Database Stays Accurate As Solar App and NREL move through their data processes, they will most likely remain the largest contributors of Orange Button’s ever-expanding database. But the database’s crowdsourced nature means that anyone can submit AHJ data for any U.S. location. The Orange Button team always verifies this information by asking the location’s AHJ for confirmation of that data. Only upon receiving the AHJ’s confirmation do they add that information to the database. The result of this verification process is Orange Button’s 98.5% accuracy -- far higher than similar human data entry efforts. Orange Button: An Effective Tool to Decrease Permit-Related Costs In the webinar, Jan Rippingale (CEO of Blu Banyan) and Aaron Casillas agreed that Orange Button has cut down permitting time, soft costs, and cancellations for their companies. This free and simple database has increased both project efficiency and customer satisfaction, and even includes permit submission support for installers who use it. Andrew Spalding (Account Executive at AuroraSolar) concluded the webinar with Aurora’s support for Orange Button: “Aurora’s core value is to empower our customers. We heard again and again our customers say, “The permit process is really challenging us.” So we are contributing vast amounts of our data to help expand Orange Button’s AHJ database.” Aurora already simplifies installers’ permitting processes by allowing them to automatically create permit-ready designs with its fully NREL-certified software, so participating in the Orange Button project was a natural fit. If you’d like to find out more about Orange Button and how it can help your business, you can listen to the full Orange Button webinar recording here. ### 3 Surprising Ways Solar CEOs Navigate Uncertainty The unpredictability of the future can seem daunting. And, it’s in uncertain times like these, that we typically look to the leaders in our industry for guidance. That’s why, a few months ago, we brought together three leaders of national solar companies and asked them to share some of the guiding principles they are currently following. In the session, Leading Through Change: How CEOs of Leading Solar Companies Outmaneuver Uncertainty, the CEOs of Vinyasun, Palmetto, and Blue Raven Solar shared how they’ve each navigated major solar businesses through the pandemic by following the “Three C’s:” Culture Care Confidence In this post we’ll take a look at the main strategies they shared that can help any solar business navigate the current environment. You can also listen to their full discussion on-demand at EMPOWER2020.   1. Culture: Listen To Your Team Ben Peterson (CEO of Blue Raven Solar) and Chris Kemper (CEO of Palmetto) kept their companies operating at full speed throughout quarantine by following two sources of tried-and-true professional advice. Take the Advice of Your C-Suite “2-3 months before COVID-19 shutdowns began, our Blue Raven COO warned us that COVID would impact our business,” says Ben Peterson. “To us in January, it was just a far-off virus. But he insisted on helping us develop a detailed framework, with different response levels, more than two months before our state shut down on March 12th. Because of that head start, all of our employees were working remotely just four days after shutdown. We wouldn't have been able to get back to work so fast if our COO hadn’t had the courage to warn us, long before most people realized the threat.” While most businesses have a framework for pandemic-era operations by now, the future remains unpredictable. So as you plan your business’s next moves, show your C-suite that you welcome their input and observations. If they know you’ll seriously consider their advice, they’ll feel more confident sharing it. Bringing In an Outside Expert Can Be Worth It Thanks to an economist, Chris Kemper began COVID-19 preparations at Palmetto even earlier than Ben — in fact, before COVID-19 even existed in humans. “In fall 2019, we brought in an outside economist to help us anticipate the market through 2020,” says Chris. “COVID-19 wasn’t around back then, but the economist used other factors to predict a recession in 2020. So by the end of 2019, we’d made a 5-point plan to take as much financial risk off the table as possible. Although we didn’t anticipate COVID-19, our long-term outlook for Palmetto helped us create a good financial position to respond quickly when it came.” Ben and Chris give the same simple piece of advice to other solar leaders: “Surround yourself with a great team and then listen to them.” 2. Care: Prioritize Employees’ Well-Being All three solar leaders unanimously agreed that employees’ health is the biggest priority and that it’s also essential to the welfare of their companies. Justin Hoysradt (CEO of Vinyasun) explained that employee-friendly policies help achieve greater productivity and low turnover. “Major tech companies like Google and Apple have significant paid time off, but their employees ultimately stay for the positive culture, support, freedom, and inclusivity of team members,” he says. “While unlimited paid time off is unaffordable for small companies, everyone can afford to uphold those four values. In addition, support employees’ physical health as much as you can. For example, Vinyasun’s premium health benefits package seemed costly when we chose it -- but it’s paying huge dividends now. Vinyasun team members work better because they’re less stressed by health-related concerns. They know that if they get sick or lose a family member, they won’t end up in bankruptcy court; we’re behind them all the way, especially during this pandemic.” At Palmetto, Chris also saw the positive effect of prioritizing employees’ health. “Our teams have performed well this year because we transitioned into fully remote work early for their safety, even before many governors started shutdowns. As a result, we’ve seen our metrics spike in several ways -- even during quarantine. Because of our employee-centered culture, we didn’t miss a beat.” All three panelists encouraged solar leaders to make their employees’ health the #1 goal. 3. Confidence: Follow the 4 Work/Life Balance Basics One of the most important things business leaders need to do right now is deal with the stress that comes from months of uncertainty. Managing the welfare of their business and the well-being of their employees, all while trying to maintain a confident front, can be overwhelming. Ben shared that practicing the 4 Work/Life Balance Basics has helped him sustain confidence and productivity: 1. Exercise Just 10-15 minutes of exercise can boost work productivity by giving stressed-out minds a major endorphin and blood-flow boost. Although most gyms are closed, you can still exercise outdoors or seek out online in-home programs. Even if you don’t have much equipment, you can start an effective routine with just bodyweight exercises. 2. Sleep We all know we should get 7-9 hours nightly, but increased responsibility and pandemic stress make it more challenging than usual. Ben recommends using a sleep-tracking app, which takes a metrics-based approach to help you improve your sleep quality. 3. Family  Your loved ones need you, and you need them. Quality time with your closest people is healing, but don’t make the mistake of assuming that if you live with them, it’ll “just happen.” Instead, purposefully schedule it. Ben recounted that a friend’s six-year-old son, Seth, told his friend that, “you don’t have time to play games with me because even when you’re here at home, you’re on your phone all the time.” Ben’s friend now schedules “Seth/Daddy Special Time” with Seth, which he writes down in his calendar. 4. Faith Both religious and non-religious people can benefit from connecting to something bigger than themselves. Many find fulfillment by serving their communities, so seek out opportunities to volunteer for worthy causes (often remote options are available). Following these 4 work-life basics will help you perform your best, sustain a work-life balance, and keep a confident perspective even in the midst of 2020 chaos. Conclusion: Reasons for Optimism Recent statistics show hopeful trends for solar businesses. According to Solar Power World, “solar-generated electricity expanded by 22.2% (compared to the same period in 2019) and provided nearly 3.4% of the nation’s total.” In addition, PV Tech discovered that “solar PV accounted for more than a third (37%) of new power generation capacity energised in the US throughout H1 2020. Texas and Florida, in particular, added more than 900MW each of distributed and utility-scale solar in Q2 alone.” The solar market is growing, despite the recession, so to position your company to take advantage of these upcoming opportunities, remember to follow the solar leaders’ 3 C’s: Culture: listen to your team’s advice Care: prioritize your employees’ well-being Confidence: Practicing the 4 Work/Life Balance Basics Thanks to Ben, Chris, and Justin for their openness about what they did to guide their company successfully through this difficult year. You can also listen to their full discussion on-demand at EMPOWER2020. ### 4 Ways to Get More Solar Leads Without Increasing Budgets In 2020, the average cost-per-click for a Facebook ad was $1.72 across all industries. In the home improvement industry, however, the average cost-per-click was nearly double at $2.93. With digital marketing becoming increasingly expensive and the cost to purchase leads continuing to rise, solar installers need to think about how to do marketing smarter, not harder. To get some ideas on how solar installers can improve their lead generation, we invited four lead-gen experts to share their insights at our EMPOWER2020 summit. You can watch their full discussion on-demand here, Lead Generation: From Door Knocking to Digital, but here is a summary of the 4 main lead-building practices from the session: 1. Optimize Local Solar SEO First Many homeowners begin their solar journey by typing “solar installers near me” into Google. If your website has strong local SEO, you’ll be one of the first installers to catch their eye: Create helpful, informative web content.  Tor “Solar Fred” Valenza recommended that solar installers create not only a solar F.A.Q. page for their website, but also blog posts that answer each question in further detail. Since Google rewards clear and thorough answers to common questions, these pages can climb up to the first few search results for solar-seeking homeowners. And, unlike digital ads that you have to keep putting money into, a blog post will keep attracting prospects well into the future. This means that, if you’re not a writer, hiring a blog writer or content marketer could be a worthwhile investment. Claim your Google My Business and Yelp pages, and nurture past customers for positive online reviews.  93% of customers say that online reviews influence their buying decisions. Here are 3 steps you can take to increase the number of positive online reviews you get: Offer excellent service (naturally!) One month after you’ve installed a customer’s solar panels, send a “solar anniversary” card with their current estimated solar savings -- and a request for an online review. Send an annual “solar anniversary” gift (wine, cake, olive oil, etc.) to all former customers, with a note on how much money the customer has saved with solar to date. And if you haven’t yet gotten a review from a previous customer, feel free to ask again along with the gift. As you gather a growing number of reviews, Google will boost your search standing.    2. Personalize Your Solar Marketing It’s so easy to quickly churn out content with faceless voiceover videos and glossy stock images of happy families. But Tor warns against that temptation. Your solar leads, he points out, want to see “real people.” These include both your previous customers and the people they’ll be working with (you and your team). His advice for keeping it real in solar marketing: Take photos and videos featuring you and your team’s faces, and show interviews with your own satisfied customers. Create your own introduction video for your Google ads’ landing page. Integrate casual video messaging into text threads. For example: “Hi (James), this is (Tor) from (Tor Solar). I know you’re busy, so whenever you’d like to see how much you can save with solar, just send over your utility bill and I’ll do the rest.” Taking these small steps will help online solar leads realize that you and your team are real people, serving real local homeowners just like them.     3. Make Your Customer Journey Easy And Personal Going solar can seem intimidating to homeowners, so the most successful solar businesses try to make every step along the way as easy as possible. This means adapting your company’s approach to each individual customer: Use each individual customer’s preferred communication channel. While text is quickly becoming the dominant communication method, some may prefer Facebook Messenger, phone, or email. Ask about how they’re doing in this public health crisis. Hayley Sonntag said that a solar installer she knows asks all his prospects this question. One prospect replied that he was indeed struggling, but appreciated that the installer cared enough to ask how he was doing. This prospect added that once his business picked up, this caring installer would be the first he called. Include a link to your calendar in your texts or SMS. This makes it easy for customers to schedule a video consultation at their convenience. Don’t overwhelm customers with all the steps to going solar at once. There’s no need to make going solar seem like a bigger decision than it already is. Start by just asking for a utility bill first. Then move on to a consultation, and so forth. These approaches meet each customer where they’re at, making it easy for them to say yes to the next step.     4. Lead Generation Tech Recommendations If all of these steps seem overwhelming, don’t worry, there are tools that can help! Here are some of the tools the solar lead-gen experts recommended during their session: Podium helps businesses efficiently manage incoming messages and conversations. Hubspot is a robust CRM for lead nurturing, lead scoring, as well as a sales platform. It also offers solid (sometimes free) content marketing programs. Clickfunnels allows you to create a cost-effective campaign that gently steers homeowners into and through your sales funnel. Aurora, according to James Ramos, has “great sales presentations, clear design, and the most well-structured, conversational blog in the industry.” During his session, James recommended diving into the Aurora blog, particularly its sales section (thanks James!). What Comes Next?  During the session we asked, “what lead generation trends should solar installers look for in the coming year?” Here’s what the experts had to say: Hayley Sonntag summed it up with: “Convenience. Make every step of the journey easy for your customers, from finding your business and connecting with you all the way to giving you a glowing review and referrals.” Tor Valenza predicted the development of more video communication tools. “My clients have generated a lot of interest in their leads with good, informative, fun videos that reflect local homeowners’ concerns. As the tools for making these videos become more straightforward and accessible, solar professionals won’t have to make that home visit for the sale.” James Ramos followed up with advice for camera-shy solar professionals: “This is a fantastic opportunity to develop your authentic personal brand with video marketing content. Don’t be afraid to press “record!” For more lead-generating tips from these solar experts, listen to the full recording of this panel discussion at Lead Generation: From Door Knocking to Digital* - Empower 2020 Virtual Summit by Aurora Solar. ### Introducing Battery Storage for Aurora: Sell Storage with Confidence In the past decade the solar + storage market has seen incredible growth. Decreasing costs, along with favorable incentives, have contributed to a swell in demand. In fact, according to a recent Aurora Solar survey of installers, over 70% of respondents currently offer storage today. Participants in the survey said that the rise in interest for backup storage is largely being driven by a desire for peace of mind, usually in response to rolling blackouts, natural disasters and emergencies. But while the demand for storage has grown, solar + storage tools haven’t really kept up. The installers we spoke with, for example, said they were using multiple tools, accounts and subscriptions just to close a single deal. While installers already have very refined processes for solar sales, when it comes to selling storage, most installers are still doing back-of-the-envelope guesswork or using Excel for calculations. In other words, installers are using a number of unscalable processes that don’t fit well, or at all, with their solar sales process. With this feedback in mind, we knew it would be important for Aurora’s new battery storage solution to serve as a seamless workflow for all solar + storage scenarios. And today we’re excited to announce the arrival of Battery Storage for Aurora! Our tool was designed and developed based on feedback and research from our customers and our community.  With the new battery storage tool an installer can: Analyze load offset Calculate system price Make battery sizing recommendations The new tool also includes one of the industry’s most comprehensive databases of inverters and batteries for projects. “Our new battery storage functionality will significantly reduce the time needed to design the appropriate storage backup system for the customer.” Christopher Hopper - Aurora Solar CEO and Co-Founder Introducing: Smart Recommendations  Battery Storage for Aurora allows you to present a homeowner with a pre-assembled smart recommendation that can be added to your solar design within seconds. The new tool comes with 3 pre-assembled smart recommendations: Saver, Average and Power. Each smart recommendation will give you battery sizing suggestions while taking daily storage capacity, backup load percentage, and backup duration into account. A few highlights of the recommendation engine are: Fast: It takes less than 10 minutes to develop custom proposals for your customer based on how much backup capacity they desire, and zero time configuring since smart recommendations are pre-loaded in your account. Simple: Explaining battery backup can be technical and tedious. Aurora’s smart recommendations provide an easy-to-understand format so you can clearly explain the setup to the homeowner. Scalable: Battery Storage for Aurora is easily added to any existing (or new) solar project you have in your account. Send Your Customers Human-Friendly Battery Storage Proposals  In order to sell storage effectively, every installer needs a sales proposal that is simple enough for a homeowner to understand. Our new battery storage proposal compiles the most compelling data that your customer needs to make a buying decision. Here are just a few things you can do with the battery storage proposal, inspired by our early beta customers: Add storage to any existing solar project in Aurora and instantly upgrade your proposals to include solar + storage. Show the financial breakdown of the battery system or overall system cost. Showcase backup duration as hours, days, or a percentage. Unlock Sales with Customized Storage Configuration Every consultative solar sale should be built around a customer’s wants and needs. With this in mind, we built our Storage Configuration Page to be flexible so that you can make dynamic changes to your design in real time. Here’s how some of our early beta participants have used the flexibility of Aurora’s Storage Configuration page and how you can use it to close more deals: First you can kick off the sales consultation using one of Aurora’s smart recommendations based on your customer’s backup requirements. If a customer decides that the price point is too high, or that they require less backup, you can use the Backup Percentage and Backup Load toggle fields to increase or decrease these values. This will dynamically change the system price in real time. Finally, you can put the finishing touches by changing the battery and inverter combinations based on your customer’s needs and preferred price point. “We found that installers are looking for an easy way to assess battery capacity, select the best battery configuration for their customers, and include it in the costs. Using Aurora, installers will be able to do just that. They won’t need to stitch together and pay for different tools to include storage in their design or sales proposals anymore.” Justin Durack - Vice President of Product Ready to Supercharge Your Solar + Storage Sales?  If you’d like to see the new feature in action, you can request a demo here, or you can learn more about the feature in one of our live Product Training sessions. ### 3 Ways to Market and Sell Solar Storage More Successfully Battery storage is becoming increasingly popular, and while most installers offer storage as part of their solar solutions, many don’t have a clear process for how to quote and sell storage. In Greentech Media’s recent webinar, “How to Grow Your Solar Business with Storage (Backed by Data),” solar experts from Generac and Aurora Solar shared their tips on how installers can successfully pitch storage to bring in more revenue. In this post, we’ll cover the three key steps that were discussed in the webinar and show you how to position storage to prospective customers. You can also watch the full storage webinar on-demand here. Step #1: Sell Peace of Mind According to Aurora’s research, the primary motivator for purchasing battery storage is “peace of mind.” However, what we’ve found is that “peace of mind” means different things to different buyers. That’s why it’s crucial to identify exactly what your specific customer needs before you try to sell them on storage as a solution. There are three main motivating factors that equal “peace of mind:” Energy Resilience Personal Safety and Wellbeing Local Emergencies and Disasters It’s important to tailor your messaging to whichever of these three motivating factors resonates with your specific customer. Here’s how: Energy Resilience Many homeowners today work from home due to COVID-19. In fact, 42% of the US labor force now work from home full time. This trend has effectively made our homes into offices, schools, and daycare centers. As a result, we rely on our home’s power now more than ever before. Leading solar installers are using this trend to pitch storage as a way to boost energy resilience. Here’s an example of how Sunrun positions their solution in their marketing accordingly: Personal Safety and Wellbeing For some people, having access to power can be a matter of life and death. Today, many Americans need electricity for medical reasons, and having storage can make those homeowners feel safe by taking away the worry of a potential outage. Here is an example from SunPower in which they position solar storage as a safety purchase: Local Emergencies and Disasters One of the most common reasons people buy storage is to protect themselves from disasters. Homeowners are increasingly becoming at risk for blackouts due to natural disasters. In those cases, battery storage can provide a sense of security knowing that should the grid go down, they’ll still have access to power. An example of a well-positioned storage message is by Ipsun Solar. In the marketing message, the solar company references local storms going on in the area and leads with the headline “Severe Thunderstorms? Get some peace of mind with Tesla Powerwall.” Step 2: Know Your Offering When it comes to selling storage, it is crucial to be well prepared. Jeff McAndrew, Director of Sales from Generac, shared some advice during the webinar on how to confidently pitch storage to homeowners and not be caught off guard when they ask questions about the product. He suggests doing your research not just on the product – its features, advantages, and benefits – but also on the prospect. If, for example, the customer has mentioned that they want a reliable manufacturer, bringing up the history of the company, the number of homes this brand is backing up across the country as well as any awards or accolades can be highly beneficial. Emphasizing this, in addition to local rebates and incentives, will usually build the trust needed to close the sale. Step 3: Streamline Your Sales Process Despite the increase in demand for storage, many installers are still struggling to find an efficient process for selling solar + storage. There’s no standard approach in the industry today, and installers often have to use multiple tools to create a single proposal, sometimes even having to pay for additional software just to close a sale. As a response to these challenges that installers face, Aurora has added a dedicated battery storage feature to their platform. The new storage feature allows users to analyze load offset, calculate the overall system price (solar + storage), and make battery sizing recommendations from one of the largest battery and inverter databases in the industry. The tool also makes it easy to create a custom proposal with accurate backup sizing based on what the customer needs. It has a built-in backup calculator that shows you – in real time – the battery system price and size of batteries needed for the customer, allowing you to scale up and down for the client based on what they prefer and what their budget is. ### How to Unlock More Remote Sales Opportunities According to Remote Sales Expert J.P. Gerken COVID-19 public health precautions have limited the door knocking and home sales presentations that many solar companies relied on until 2020. The good news is that, although many customers’ doors have (literally) closed to in-person visits, remote solar sales technology has opened a lucrative window for installers. Remote sales is a relatively new area for many installers, so we decided to bring in J.P. Gerken, founder of the remote sales giant Zenernet Solar, to answer some of your most common questions. Here are the biggest takeaways that he’s learned from the past 20+ years doing remote solar sales. You can also watch his full session, “Unlocking the Remote Sales Opportunity,” from Aurora’s Empower2020 Virtual Summit: How And Why Have Remote Solar Sales Grown?  There are three major reasons that remote solar sales have exploded in the last year. Firstly, many customers now prefer remote meetings to in-person presentations simply for the safety aspect of remote meetings during the pandemic. The pandemic has also made the general public more comfortable with video conferencing than before. For example, Zoom now has nearly 175 million monthly users (up from only 14 million in April 2020). Lastly, installers who are trying remote sales for the first time are finding that remote customers may actually be more dependable than in-person customers. J.P. said that he’s seen remote sales processes result in significantly lower cancellation rates than in-person solar sales. How is the remote solar sales process different from in-person sales? J.P. said that installers should expect a longer sales cycle for remote sales. Unlike an in-person presentation, energy consultants usually won’t close the sale on the first Zoom call with a customer. This is partly because most remote customers have already done solar research and want detailed answers to their questions – more than can take place in a single online meeting. This desire to explore their options also means that, unlike most in-person buyers, remote customers comparison-shop by seeking multiple solar quotes. Since these customers are more informed than in-person customers, they benefit from a slightly different approach. To learn more on how to reach and nurture these digitally informed customers, you can watch Hayley Sonntag’s advice from the Empower2020 session “Lead Generation: From Door Knocking to Digital”. How can I build an effective remote solar sales process? Since remote sales is new to many solar installers, J.P. gave four main tips on how to create and refine a successful sales process: 1. “Speed to Lead” Matters J.P. noted that Zenernet Solar has closed with many remote customers simply because it’s been the first company to get in contact and provide them with a detailed proposal and quote. He attributes this to Zenernet’s investments in technology, such as Aurora Solar’s solar design and financial software, that allows energy consultants to contact, quote, and educate customers before their competitors do. 2. Focus on High-Intent Customers For more value per lead, reach out to prospects who have already expressed interest in solar. A strong inbound marketing strategy will go far in attracting the right remote customers. 3. Educate Them These customers are eager to learn about their options. Encourage your team to give them the detailed information they seek, both about going solar in general and about the reasons behind your proposal for their specific home. 4. Get the Right People on Your Team. Remote sales requires people that can quickly build meaningful, authentic connections with strangers over the internet. J.P highly recommends investing the time to not only find and hire sales people, but also training these people for remote sales. These investments will help ensure that all your remote customers enjoy a consistent, high-quality customer experience and provide you with future referrals. Done right, remote sales can boost a solar installation company’s growth tremendously. To learn more from J.P.’s 20+ years of high-performing remote sales, listen to his full Empower2020 session here: Unlocking the Remote Sales Opportunity. ### 3 New Tools to Help You Design Solar More Efficiently One of the challenges of the current economic climate is that solar installers have to do more with less. In the past, a solar sales rep could be responsible solely for door-to-door knocking. Once they secured a lead, they could then set an appointment for the solar designer to visit the home to design the appropriate system. In today’s solar industry, however, things are moving much faster. In order to compete in today’s market, solar installers need to improve their operational efficiency or they could get left behind by their competition. Luckily, new tools are rapidly being developed to help both the solar sales rep and the solar designer (who, let’s face it, are sometimes the same person). In this post we’ll cover three new tools that we’ve developed to help make designing a solar installation faster.   1. Battery Storage According to Aurora’s Technology Benchmark Survey, over 70% of solar installers are selling storage today. While solar + storage is a great way to boost solar sales, it also presents a lot of headaches for solar sales reps. According to the survey, 92% of installers currently use design, site assessment or shading analysis software, however, most installers don’t have a designated tool to use for backup calculation and sizing recommendations. Many solar installers make highly generalized sales recommendations because they are unable to confidently calculate sizing based on the backup capacity that the homeowner wants. Aurora’s new battery storage feature will be a game changer for the industry as it’s the only tool on the market that can calculate backup requirements and provide battery storage sizing recommendations. Simply plug in how much backup capacity your customer wants, and Aurora will give you the most compelling backup sizing recommendation. Once the feature launches you'll be able to take your battery storage deal from backup calculation to sales proposal in 10 minutes or less. You can watch a sneak peek video of the solar storage tool in action here as well as sign up for early access.   2. Fit Trees to LIDAR One of the most difficult pieces of designing a solar system is making sure you account for shading. Most shading analysis tools can do a good job of modeling shading with the correct inputs. The tricky part is getting those inputs right. One of the most difficult inputs for installers are trees. Aurora’s latest feature, Fit Trees to LIDAR, helps solar designers model trees by automatically modeling the tree height using LIDAR data. All a designer has to do is pick the location and type of tree (conical or round), and the Aurora engine will automatically model the height and crown height. This helps designers cut down project design times so they can spend more of their time on the most important task, designing a great pv system.   3. Irradiance on Panels Experienced solar installers know that a solar system is only as good as its weakest link. Solar power functions like a system of pipes, if there’s a clog in one pipe it affects the flow of other pipes around it. For example, if one solar panel is covered by shade, it can affect the power generation of the panels around it. Many solar tools use irradiance mapping to give a general idea of what the power generation will be on the face of a roof. What those tools don’t account for is how much irradiance each panel will experience once placed on the roof. Aurora’s new Irradiance on Panels feature takes into account shading from obstructions, trees, and nearby panels (also known as inter-row shading). This allows sales reps and designers to quickly and confidently troubleshoot a design and present an efficient design that reduces shading on the system. You can watch videos and learn more about each of the features mentioned above at the following links: Solar Storage Feature Fit Trees to LIDAR Feature Irradiance on Panels Feature   ### How to Turn 3 Pandemic-Era Solar Challenges into Opportunities Solar business owners have had a rough time leading their teams through this pandemic year. In addition to managing their current projects and staff (often from a distance), they’ve also been tasked to keep their business above water despite: Their teams’ reduced ability to generate leads, assess sites, and close sales Newly changing solar policies and delayed permitting processes An unpredictably fluctuating economy that affects financing for solar projects The good news is that these challenges also present new opportunities to practice new strategies. And these strategies, if implemented correctly, might actually help your business not only weather this economic storm, but have you come out of it stronger and busier than ever. To help share these strategies with the solar community, we’ve put together EMPOWER 2020, a virtual summit that gathers together acclaimed solar industry leaders to share their advice on some of today’s most pivotal questions, including: 1. How Can I Finance Solar Projects in This Economy? By May 2020, the renewables industry has shrunk by 620,000 clean energy jobs. While solar workers are now returning as shutdowns lift, demand for solar has shrunk because of the diminished work hours, furloughs, or unemployment in many households. It’s easy to feel down from these sobering statistics, but it’s important to remember that solar demand will rise again. Our industry has a strong foundation to build on: In Q1 2020, the solar industry was one of the fastest-growing segments in the nation, growing by 10.4% since March 2019 to almost 3.4 million jobs. Also in Q1, the U.S. installed more solar than in any previous quarter (3.6 GW). But while we wait for the economy to recover, how can solar installers finance their current projects during this economic downturn? A good first step is to look into installer-focused initiatives such as: Mosaic’s Solar Financing Sustainable Capital Finance’s Commercial Solar Program KwH’s Solar Risk Management And Energize Ventures. Speakers from each of these companies will be addressing solar installers’ financial questions at EMPOWER2020. You can sign up for their talk Show Me the Money: Solar Project Financing in a Downturn. 2. How Do I Get New Leads & Grow Sales Without In-Person Meetings? Due to the need for social distancing, in-person solar meetings and presentations have been almost non-existent. Now that most solar sales teams are remote, many of them are left asking: how can you open a conversation and close a sale with a prospect you can't meet in person? Fortunately, with today’s technology you can easily nurture solar leads from start to finish if you have a solid remote sales process. With the right tools and techniques, solar teams can boost sales even during a pandemic, especially for emerging growth areas such as energy storage, which represents both a brand new solution as well as a significant retrofit installation opportunity For most solar sellers, creating a remote sales process is a fairly new skill. A good place to start your education is by learning effective digital marketing and sales methods from the most successful in the industry. Solar marketing experts, such as Tor “Solar Fred” Valenza, will share their own methods for cultivating high-quality leads through digital channels at the following EMPOWER 2020 talks: Charging Up Your Solar Sales with Battery Storage Lead Generation: From Doorknock to Digital Unlocking the Remote Sales Opportunity The talks will feature digital marketing and sales best practices that are specific to the solar industry so that you can increase conversions, not only during social distancing, but long after the world returns to normal. 3. How Do I Get Permits During Social Distancing? Another 2020-specific worry for installers is the reduced access to in-person permitting because of the need to socially distance. Each region has responded differently to this limitation, with some municipalities even resorting to sliding solar applications and permits under doors. Thankfully, this isn’t necessary for all solar business owners. No-touch permits provide a streamlined way to get approval for solar projects without risk of infection or breaking social distance guidelines. Since multiple states are changing their permission policies to accommodate no-touch online solar permits, it’s essential to keep up with your state’s requirements and abilities. To help you quickly update yourself on current no-touch permit policies we’re bringing together four solar industry leaders at the EMPOWER2020 session, “Pushing the Industry Forward: Local Policies, Permitting, and Advocacy.” Watch EMPOWER 2020 On-Demand If you’re interested in learning real-world pandemic strategies with experienced solar industry leaders, you’ll find Empower 2020 to be just what you’re looking for. With 20+ experts across 7 sessions, the virtual summit has something for everyone. The live event was a huge hit, so we decided to share the replays with those who couldn't attend. You can watch the replays on-demand here: empower.aurorasolar.com  We look forward to seeing you next year! ### 5 Solar Roofing Best Practices That Will Help You Get Referrals You’ve probably encountered prospects who are excited to go solar...until they start to worry about someone drilling holes in their roof. They get nervous about possible damages, leaks, or their roof not holding up under the weight of the solar panels. It doesn’t help when they inevitably go to Google and scroll through a few horror stories of what happened to other roofs of unsuspecting solar customers. Believe it or not, this is where your solar company can actually stand out from competitors. By making sure you’re using proper installation practices, you can build a strong reputation for high-quality, reliable, leak-free installations and increase your solar referrals. Here are the 5 questions that you can ask to avoid common mistakes and create happy customers and enthusiastic referrals: 1. Is the Roof Ready for Solar? Solar installation best practices begin well before anyone sets foot on the roof — especially if that roof needs more preparation before going solar. It’s important that you never risk your company’s good reputation by agreeing to install solar on a damaged or unsuitable roof. To assess if the roof is ready for solar, here are a few questions you should get answers to: How much longer will the roof last? (Since solar panels last 25+ years, ideally the roof will too.) Does the roof leak? Can the roof carry the added weight of a solar panel system? Is the roof in a condition to bear regular solar panel maintenance? If it turns out that the roof needs to be replaced, that doesn’t mean you’ve lost the sale. Discovering this information for your potential customer will help you build valuable trust with your prospects. They’ll likely appreciate your honesty and keep you at the top of the list to use your services once their roof is ready. 2. Am I Using the Correct Roof Materials? It’s important to match each roof to the best installation materials possible. Beyond the usual considerations, such as solar panels, racking, ballast, and other materials, it’s good to look at the type of roof you’re installing these components to. Here are a couple of roof types that require some additional equipment: Tile Roofs Although concrete tile roofs are usually ready for solar, installers occasionally run across an older version, known as the clay tile roof. Since clay tiles are too brittle to bear solar panels, a solar installation on that roof will require what’s called a “comp-out process.” This involves replacing some tiles with shingles and then installing the panels on top of the shingles. This process requires not only extra shingles, but also extra tiles that match those on the original roof, which will replace any tiles that are still visible after the solar installation. Pro Tip: If you’re remotely designing a system for a tile roof, try to find out the tile material before sending a quote. Many installers will price themselves out of an installation because they assume the tile roof is made of clay tiles. If you find out that the roof uses concrete tiles, you can provide a much more competitive quote since you know you won’t need a comp-out process. Flat Roofs Most solar installers love installing on flat roofs since there’s usually no need to drill holes. However, flat  roofs do require the following: Additional brackets: to tilt solar panels at 10-25 degrees A roof pad: to prevent the heavy ballasted system from perforating the roof membrane Cold-resistant concrete ballast: to improve longevity as some concrete ballast breaks down if exposed to repeated below-freezing temperatures 3. Am I Using the Right Design for This Roof? What works perfectly on a particular shingle roof (such as rail-less mounting) may be a disaster on a tile roof, and vice versa. While most common roof types work well with solar, each type has unique installation needs. Moreover, each individual roof always differs in its size, water flow, available space, obstructions, etc. When designing a solar panel system, you should take into account: Type (tile, shingle, or tin) Slope (or, with flat roofs, lack thereof) Available space Sun exposure Direction Obstructions Necessary walkways Water Flow If this sounds like a lot of variables, that’s because it is. But thankfully, you don’t have to crunch all the numbers yourself. A top-notch 3D solar design program, like Aurora, will give you the best-fit and most productive roof design based on your parameters. Aurora’s Smart Roof feature can automatically take into account most of these considerations. And if you’re really pressed for time, you can use the built-in solar design service, which will have a professional designer create and deliver the perfect design for your project within three hours. 4. Am I Using Good Installation Habits? Even the best solar system designs and materials are only as good as the team who installs them. While it can be tempting to finish up a job quickly, a dissatisfied customer with a leaking roof will not only cost you a good review, but possibly dozens of potential referrals. Here are a few common bad habits when it comes to solar installations and how to avoid them: Surround roof penetrations, especially lag bolts, with flashing. Flashing is a metal or plastic shield with an additional tar or rubber seal around it, which also has a final waterproofing sealant. Clean up all debris and ballast material after installation. Extra debris can often get caught in pipes and clog up the house’s water system. Don’t leave heavy tools lying on rooftops, even for a short time. The weight can often weaken or even puncture the roof membrane and cause unnecessary leaks. Don’t drag solar panels or racks across rooftops. Their weight can also cause leaks and their edges can scratch roof materials and membranes. To create a leak-free PV system, you need to have the right design and the right installation practices. Following these simple best practices doesn’t cost much, but it will make sure that you secure those positive reviews that are crucial for your business. 5. Do I Offer a Solar Maintenance Plan? Offering a solar maintenance plan is not only a great way to increase long-term revenue, but also a great way to continue receiving positive referrals from happy customers. Even though a solar panel system is relatively low-maintenance, both it and its roof need some TLC once in a while to keep them performing at their best. Here are a couple of easy ways you can help customers maintain their solar system: Recommend the customer installs screens and squirrel guards to protect the roof from animal activity. The spaces beneath solar panels can encourage animals to nest or chew on wires, so preventing them from getting on the roof in the first place is recommended. Offer to inspect the solar pv system annually. Maintaining a clean PV system can prevent energy loss due to soiling and other roof-related issues. These practices will ensure that your customers enjoy a long and satisfied experience with their high-performing solar PV system — and make them far more likely to send positive referrals and reviews your way. ### Should We Add Solar to the National Anthem? In our Solar Landmarks series, we “travel” to famous landmarks and investigate their potential for solar energy generation. Two years ago, in honor of Independence Day, we went on a virtual visit to Independence Hall in Philadelphia. This year, we’re visiting Fort McHenry to see what it would take for the fort and its visitor and education center to be powered 100% by solar. What is Fort McHenry? Chances are that, even if you’re not a history buff, you’ve probably unknowingly retold the story about Fort McHenry, you might have even sang about it. Fort McHenry is actually the stage for the United States’ national anthem, The Star Spangled Banner. Francis Scott Key, an American poet, was at Fort McHenry during the War of 1812. Despite being heavily bombed, the Maryland fort was successfully defended to everyone’s surprise. After the smoke cleared at dawn, and seeing that the American flag was still flying, Francis Scott Key wrote a few lines in tribute to what he witnessed. "O say can you see, by the dawn's early light...that our flag was still there..." The full poem was originally titled Defence of Fort M'Henry, and was later modified and became commonly known as The Star Spangled Banner. Today, Fort McHenry is a national monument and the flag that inspired the national anthem is permanently displayed at the National Museum of American History. Estimating Fort McHenry’s Annual Energy Consumption The fort doesn’t use a lot of electricity, and the electricity needed to illuminate the flag is actually already sourced by a small set of solar panels that was installed in 2009. The visitor and education center was completed in 2011, and was awarded LEED Gold Certification by the U.S. Green Building Council because of its sustainable design and efficient usage of energy. Since we don’t have data on the actual energy usage of the 17,500 square-foot building, we will need to estimate the energy use. We can estimate the usage using what’s called energy usage intensity (EUI), which is 15 kBtu/sqft/year. This converts to about 77.6 MWh annually, which is equivalent to around eight houses in Baltimore. Assuming the center’s electricity usage for the year is 77.6 MWh, Aurora’s consumption profile tool estimates that the National Park Service pays about $8,400 a year in electricity costs to operate the center. Constructing the Site Model Modeling the site can be fairly easy by using Aurora’s SmartRoof and Roof Face tools. We modeled the outerworks with a single SmartRoof object by tracing the outline, and used Roof Faces for the buildings because it can easily detect clerestory windows (i.e., windows in the high-section of the walls). Next, we started adding panels to the outerworks of the fort and found that a 61 kW installation would meet the needs of the center. Anticipating that we probably wouldn’t be able to place panels on a historic building, we checked to see if a 61 kW installation will fit on the visitor center by creating a new design in the project. We easily got to 56 kW by placing panels just on the top roof face alone. We could have fit more panels on the sides, but when we looked at the built-in irradiance map, we found that the lowest roof face is subject to a lot of shadows. Here is what the model looks like with the panels placed: Is Solar a Worthwhile Investment? Since the National Park Service has a limited budget, it’s important to show them what the financing aspect of the project would look like. Using Aurora’s financing tool, we can see that an additional PV system provide a monthly average savings of $668 with 95% of their electricity bill offset – well worthwhile. Next, we calculated the net savings and the payback period of the PV system. Using a commercial system cost of $2.80/W, and assuming the National Park Service can use the current 26% federal incentive tax credit and depreciate the cost of the system, we’re looking at a net savings of $53,000 over the life of the system. With the fairly low cost of electricity, the payback period is 10 years. Besides saving Fort McHenry money, the PV installation would also offset substantial carbon dioxide emissions. The overall carbon emissions that would be removed are equivalent to burning 60,000 pounds of coal or 6,000 gallons of gasoline each year! If you're interested in learning more about solar from experts across the industry, join our FREE conference on July 23rd here.   Is there a landmark you’d love to see a solar design for? Let us know in the comments below or email us at hello@aurorasolar.com! ### 4 Ways a Solar Design Service Can Boost Solar Sales Even before social distancing drastically expanded remote work, remote PV system design was a smart choice. According to NREL, remote solar design software can reduce solar costs by up to $0.17/W. However, remotely designing a PV system requires a reliable 3D model to provide an accurate calculation of the system’s potential energy production. Fortunately, you don’t have to do this on your own — or even with just your small (and already busy) team. Today you can instantly expand your design team at any time by using a 3D modeling service with just a click of a button. Using Aurora’s 3D modeling service, you can get an accurate PV system model that shows: Detailed 3D image of the potential system Shading analysis for each hour of the year Sun-path simulation Energy production estimate Customer savings estimate And the best part? Aurora’s modeling service is built right into the platform. So, if you start a design and get stuck, you can quickly get help with it from a designer who will have your design ready in as little as 3 hours! But, the benefits of using 3D modeling services go far beyond just saving time. Here are 4 additional benefits to supplementing your 3D modeling: 1. Scale Quickly We all know that solar system demand fluctuates seasonally. This can make hiring enough full-time designers to handle peak demand difficult for solar installers. Solar contractors often face a double-edged sword when it comes to staffing. While a larger design team may seem overstaffed during the slower seasons, a leaner design team may struggle to keep up with peak seasonal demand. A 3D modeling service fills this gap by allowing businesses to instantly flex their team’s capacity to meet seasonal demand fluctuations.   2. Enhance Your Customer Experience Solar buyers appreciate quick service — as long as it’s quality service too. A solar modeling service provides both. Taking advantage of a short 3 hour turnaround time, a solar consultant can impress a buyer with a realistic 3D system model the same day that they pitch them. And, more importantly, the model can also provide an accurate, detailed estimate of the customer's potential savings, helping close the deal right then and there. Additionally, in a post pandemic world, many customers may be wary of inviting others (such as solar sales consultants) into their homes. Fortunately, solar sales reps can use the solar design service to get around this limitation while still providing the same high level of accuracy and detail as they would with an in-person meeting.   3. Save Your Sales Team’s Time In many solar businesses, sales reps often have to spend time learning about 3D modeling to create them for customers. That’s time they could have spent closing more sales instead. Using a 3D modeling service enables these businesses to free up their sales teams’ time. Andrew Spalding, a sales rep at Aurora,  has noticed an additional benefit for his customers as well: “By using a 3D modeling service, solar installers don’t need to train new salespeople to design systems. This allows them to scale up their sales team much faster and with minimal training.”   4. Ensure Accuracy & Reduce Cancellations If there’s one thing solar customers want from a company, it’s reliability. At the prospect stage, this includes an accurate and realistic estimate of their roof’s solar energy potential. A common problem sales reps face is when a proposed solar system design doesn’t actually match up with the home’s structure. When this happens, the solar sales rep has to come back to the customer to make the necessary changes and many customers simply cancel their order instead of dealing with the hassle. Using Nearmap imagery, along with LIDAR, shading and irradiance engines, Aurora’s 3D modeling provides the most accurate design on the market. An added benefit is that once these parameters have been finalized by the designer, they can be locked so that they aren’t modified and don’t lose their accuracy. Since design services allow businesses to provide accurate estimates even for challenging locations, solar customers can feel confident that they’re receiving a reliable PV model and energy savings estimate. Takeaways and Next Steps Solar design services allow solar companies to: Scale instantly Enhance the customer’s experience Optimize their sales team’s work time Ensure accurate estimates Reduce cancellations Whether you’ve been in the solar business for years or are just starting out, giving a 3D modeling service a try is a great way to see how it works and whether it can help scale your business. Seneca Schachter, a Senior Account Executive at Aurora, sums it up perfectly when he says, “3D modeling services help small and medium sized solar businesses because they can quickly produce professional, accurate designs and quotes for faster lead conversions.” With a fluctuating economy, fluctuating your solar design resources becomes an incredibly valuable tool in any business’s toolkit. If you’d like to see how our 3D modeling service works, you can schedule a free demo using the Demo button above.   ### 5 Important Benefits of PERC Solar Panels You Need to Know A few years ago PERC solar panels were just another option in a solar installers toolbox. Today, however, PERC panels are becoming the dominant panel in the industry, and rightfully so. We’ve written about how PERC panels work, but if you’re interested in learning the benefits of PERC solar panels, without all the technical jargon, this post is for you. The benefits of PERC panels can be broken down into 5 key components: Increased Energy Production On average a PERC solar panel is about 1% more efficient than a traditional panel. Although this gain seems small on its own, on a full PV system this can add up to 5% more energy production. Increased Low-light and High-heat Performance PERC solar panels excel particularly well in both high-heat environments and low-light environments, with about a 3% increase in efficiency. Smaller Roof Footprint Because PERC panels are more efficient, solar designers and installers need fewer of them to create the same power as traditional panels. This means a solar panel system using PERC panels can fit onto smaller roofs. Reduced BOS and Soft Costs An often overlooked advantage to PERC solar panels is the reduction in soft costs. Since installers need fewer panels to achieve the same output, they can save on both labor costs as well as inverters, disconnects, and other balance of system (BOS) costs. Same Manufacturing Costs One of the main reasons PERC has grown in popularity, and will continue to grow, is because they cost the same amount to manufacture as traditional panels. All these reasons point to the rise of PERC panels becoming the industry standard. Solar installers who offer PERC solar panels today, can get ahead of the competition and provide their customers with a top of the line product for very little extra cost. So, what’s the downside? Today, PERC panels are still slightly more expensive than traditional panels, but the benefits far outweigh the added costs. Below we’ve summarized some of these benefits in a handy infographic that you can use to help explain the benefits of PERC solar panels to your team and your customers. If you’d like to dive deeper into the benefits of PERC, you can watch our full webinar on the topic, featuring PERC manufacturer LONGi Solar. You can also model a complete PERC solar system in Aurora Solar and even do a comparison of output, cost, and financing between PERC and a traditional system. If you'd like to learn more about other types of solar panels, check out our Comprehensive Solar Panel Guide. ### How to Handle the “Now is Not a Good Time” Objection in 3 Steps How many times have you heard these responses? “I'll get back to you at a better time.” “I'll have to talk to my wife/husband/partner.” “We'll have to think about it.” “...It's just not a good time right now.” “It’s just not a good time right now.” This all-too-common sales objection conjures up images of front doors slamming shut, phones clicking off, and chat windows closing out. Objections about timing certainly aren’t new, but if you’re working in sales today you may be hearing them now more than ever. As a sales person, you likely have your own specialized set of skills for responding to this objection, but you may not know how to respond during these uncertain times. As a result of COVID-19, customers today are worried about their health, jobs and the economy. But there’s good news too. As homeowners spend more and more time at home, they may be paying greater attention to their growing utility bills, and be more open to a conversation about how solar could help control household expenses or support utility resilience. And, in many cases, both decision makers are at home now which could lead to a quicker sale. The case for solar is as strong as ever, but to close a deal in the era of COVID-19, it’s critical to instill customer confidence. Here’s how: STEP 1: Get Ahead of the Objections Try putting yourself in the shoes of your prospective customers and carefully consider why they might think that now is not a good time to install solar. Are there any external factors that might be weighing on your prospects (i.e. major layoffs in your area, school closures, etc.)? Another way to prepare for potential objections is to consult your family and friends and ask why they would or wouldn’t go solar at this time. Below are some common objections to solar that you may hear in the era of social distancing: “I am concerned about the state of the economy.” “I am worried about me or my significant other losing employment.” “I am concerned I won’t get a quality remote site assessment or solar installation in this current climate.” “If I have to move, I do not know what I would do with my solar installation.” “Too much change is happening right now, and I am weary of making any big decisions or purchases.” If you are using a CRM like Salesforce or Zoho, you could also review data on your recent lost opportunities and ask yourself: why didn’t these deals close? Now that you have some data, you can probably see some patterns and can prepare appropriate responses to the most common objections. Aurora Solar’s Mid-Market Executive, Elliot Goldstein, who has over 6 years of remote selling experience, also recommends leaning into objections immediately–never wait until the end of your conversation. Objection handling continues the conversation and more importantly keeps your customer talking. Here are a few questions you can use to get ahead of potential objections: “How would you finance your solar system?” “Would you take your solar installation with you if you moved?” “Are you concerned about job security in the future?” STEP 2: Validate Uncertainty When interacting with customers it’s important to acknowledge and validate their uncertainties. Rather than trying to create a rebuttal to their concerns, let them know that the feeling of uncertainty is perfectly normal. Here’s an example objection and response: Objection: “Thanks for calling, but we're not going to make any further investments to our home right now. We’ve got two kids at home from school, I’m swamped with work and given the state of the economy we are in savings mode. Solar is just a really big financial decision. The last thing I need is another thing to worry about.” Response: “I totally hear you, I can relate to that myself. We’ve got kids at home from school and my wife and I are both working from our home office. We’re all in the same boat. I get that- solar is a big decision. So tell me–what about right now makes solar seem like an unlikely decision?” Try to relate to your own experience or perhaps even share what you are hearing from other customers or prospects. Validating uncertainty shows empathy and gets your prospect talking. STEP 3: Follow Up Often Providing educational content to customers who can’t make a decision right now is a great way to move the sales process forward in a non-pushy way, and set yourself up as a trusted ally. The market is changing, and that means the sales pitch has to change too. Make sure to update your sales messaging to reflect the impact of COVID-19 and the future of the solar market. You can look through Aurora’s remote sales resource center for some ideas on how to make changes to your own materials. By providing helpful resources, you'll establish trust and credibility, and be the first on their list when they are finally ready to go solar. Even if sales are slowing down right now, it's a perfect time to plant some seeds now that will ensure a healthy sales season in the future. ### Quick Guide to Smart Modules While solar softwares can help design the optimal PV system, the components you select will also make a difference in achieving the desired energy production. One particular component type—the smart module—has been increasing in popularity because of its benefits compared to traditional modules. If you haven’t considered smart modules (also known as DC-optimized modules) they’re worth a look. What Is a Smart Solar Module? A smart module is a solar panel with an integrated DC power optimizer. Smart modules will have the power optimizers pre-attached to them, and the optimizers help each panel operate at its maximum power level regardless of how the other panels on the same string are performing. This allows for more energy to be harvested from the smart module PV systems. The tradeoff of using smart modules comes down primarily to cost. The price tag might be higher, but the benefits from smart solar modules may be more attractive depending on the situation. Top 3 Benefits of Smart Modules Increased energy production: As mentioned earlier, a PV system using smart modules can produce more energy compared to a traditional system. With the embedded DC optimizers, each module is able to correct for its “mismatch” and function independently from one another, resulting in more energy production. Lower soft costs: Smart modules can help streamline purchasing processes and reduce installation time. Instead of having to source a vendor for both panels and DC optimizers and order them, you only need to do it for one hardware. Also, installers won’t need to carry multiple hardwares up to the roof, install and connect them. Faster installation times can lower labor costs, and the savings could be passed down the end customer. Faster troubleshooting: Since smart modules operate independently of one another, you can monitor the performance of each module. If maintenance is required or the system is underperforming, you’ll have a much easier time identifying which panel(s) need attention. When to Use Smart Modules Smart modules (or adding power optimizers to your PV system) are typically ideal for situations where shading is a problem or if the PV system will be installed on multiple roof surfaces. For systems on a roof surface with no shade throughout the day, in an area with great weather almost year round (like Southern California), a traditional system may be the ideal choice. Before selecting which components to use, it’s important to have a full understanding of each component and what your options are, and know how much solar energy (or irradiance) is available at the project site. Depending on the situation and what you’re trying to solve for, smart modules may be the best option or there might be another suitable solution at a lower price point. ### COVID-19 Shutdown Impacts on the Grid COVID-19 Impacts on the California Grid In an effort to slow down the rapid spread of COVID-19, states across the U.S. have issued stay-at-home orders and social distancing guidelines (with exceptions for essential services). California was the first to issue a stay-at-home order on March 19, 2020, and now at least 41 states have followed suit. With most non-essential businesses and operations temporarily closed and workers shifting to working from home in California, there’s been a marked reduction in the state’s energy usage. Looking at the total energy demand on the grid (or how much energy the state used) during normal business hours on the weekdays from March 16 to April 3, 2020, we can see a significant drop in mid-day demand, as well as reduced morning demand compared to the same time period last year. During the first seven days after the stay-at-home order was issued, there was a 10% reduction in mid-day energy demand. By March 30, 2020, it dropped even further to a 20% reduction. The reduced mid-day energy demand coupled with the large amount of solar on California’s grid has raised some concerns (PDF) about solar overgeneration, best exemplified in the infamous “duck curve”. So far, the California Independent System Operator (CAISO)—the state’s grid operator—has not had to further reduce their output of renewable energy beyond the normal operation. Instead, CAISO is reducing energy imports from other grid regions and generation from wind and small hydro systems in the middle of the day. In a sense, the total load on the grid is not much different from a typical weekend, which CAISO is well equipped to handle. Stay tuned for updates on COVID-19’s impact on California’s grid, and a deeper analysis of the duck curve this week! ### COVID-19 Stimulus Package: Where Does the Solar Industry Fit In? On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act—also known as the CARES Act—was signed into law. This $2 trillion stimulus package is the largest emergency aid passed in U.S. history, and though there are indirect benefits for the solar industry, it’s not enough. COVID-19’s Impact on the Solar Industry Due to the coronavirus, the solar industry faces the possibility of losing half its employees, impacting 125,000 families, said the Solar Energy Industries Association (SEIA). That’s tough on the U.S. economy, given that the solar energy industry has been a major economic driver for the U.S., said Mona Dajani, a lawyer on the board of the American Council of Renewable Energy (ACORE) and the energy and infrastructure projects team lead for PillsburyWinthrop Shaw Pittman in an interview with Aurora Solar. “With over $50 billion in annual investment over each of the past five years, the solar energy sector is one of the nation’s most important economic drivers—but that growth is placed at risk by a range of COVID-19 related impacts,” she said. The CARES Act’s Benefits (Or Lack Of) Solar companies will be able to benefit from the CARES Act’s long-term unemployment insurance, business loans and provisions that support employee retention and other employee protections, said SEIA. Ashley Eusey, PE, a sustainability specialist at Hoefer Wysocki, an architecture, planning and design firm, told Aurora Solar, “Any relief specifically to solar companies will likely be due to the ripple effect of being a small business that is eligible for funding or to individuals in the solar industry that are laid off and can collect on the relief package’s unemployment offerings.” One provision of the CARES Act includes $350 billion allocated for federally guaranteed loans to help keep payroll going for small businesses. Those that are able to continue paying their employees during the entire COVID-19 crisis would be granted loan forgiveness. This is good news for the solar industry.. According to the 2019 Solar Jobs Census Survey, 96% of solar companies are considered small business, and are eligible for these loans. Unfortunately, the Act did not provide direct relief for the solar industry. Dajani shared that the industry’s most important concerns are supply chain disruptions that have the potential to delay construction timetables and undermine the ability of solar developers to qualify for time-sensitive tax credits. She also mentioned that another challenge is a sudden reduction in the availability of tax equity, which is crucial to monetizing tax credits and financing clean energy projects of all types. The impacts have already been felt among businesses of all sizes. In an ongoing industry survey conducted by SEIA, as of March 16, 16% responded that they have had to let workers go due to the impacts of COVID-19. What the Solar Industry Needs The industry had hoped—and still hopes—that the federal government will ensure that the impacts on the supply chain and associated delays don’t impact the availability of the federal Investment Tax Credit (ITC), said Sam Kamyans, partner at the law firm Akin Gump Strauss Hauer & Feld in an interview with Aurora Solar. Second, the industry wants a system that provides a refundable tax credit for the ITC. That means that if taxpayers are eligible for an ITC in excess of their tax liability, they get a cash payment from the Internal Revenue Service (IRS) equal to the excess of the ITC over their tax liability. On March 23, more than 550 solar companies asked Congress to support solar workers as part of any stimulus package, said SEIA in a statement. The companies asked for paid sick leave, small business support, and changes to the administration of the ITC for faster cash relief. The Importance of the ITC to the Solar Industry The ITC, the largest source of savings for solar installation, is now ramping down, meaning timing is critical for existing and future projects. This year the solar ITC dropped from 30% to 26%, and is scheduled to drop to 22% in 2021, and 0% for residential and 10% for commercial in 2022, according to SEIA. “As a result, even short delays of weeks or months in 2020 has the likelihood of pushing renewable energy projects into a lower, 2021 ITC tier, with significant economic impact. This likelihood is compounded by the expected disruptions in the financial and tax equity markets renewable energy projects rely on to meet project and ITC deadlines, and forecasted manufacturing and supply chain disruptions,” said Geoffery Underwood, founding partner at renewable energy developer Glidepath Ventures in an interview with Aurora Solar. Meeting ITC Deadlines Will Be Tough In order for a project to be considered for inclusion in a particular year’s ITC deadline, the project must either have (1) started physical work of a significant nature or (2) met the so-called Five Percent Safe Harbor Test, which is paying or incurring five percent or more of the total cost of the facility in the year that construction begins. “Given the multiple uncertainties in the market...it will be extremely difficult for renewable energy project owners to allocate the significant resources or contractual commitments required to safe harbor current ITC values. As a result, a significant number of projects will be cancelled,” said Underwood. A Fourth Phase of the Stimulus Package May Include Renewable Energy Support This bill is the third aid package from Congress to help individuals and businesses stay afloat and to stimulate the economy. According to Underwood, phase four efforts are expected to be addressed in three to six weeks and may include ITC or other renewable industry support, but competition for government money will be fierce, with industries ranging from restaurants to movie theaters to airlines all requesting help. "To ensure that we do not lose years of progress on clean energy and the source of employment for tens of thousands of renewable energy workers, Congress should look to previous relief packages as an example for how to support this sector and the broader American economy," said Dajani, quoting a letter from ACORE to Congress. “There is precedent for this kind of action to support major U.S. infrastructure. The 2009 American Recovery and Reinvestment Act included "over $90 billion in funding for clean energy and grid modernization,” she said. ### Getting Started with Remote Solar Sales Making the transition from meeting your customers in-person to conducting your solar sales 100% remote for the first time can seem daunting, but it can be done. Some of the most successful and fastest growing solar companies have already adopted remote sales processes. Several advantages of remote selling include increased territories, lower customer acquisition costs, zero travel, and increased appointment bookings. To help conceptualize what it would take to make this transition, we paired Aurora Solar’s Account Executive Elliot Goldstein with Baker Electric Home Energy’s Senior Solar Energy Consultant Meital Stotland in a webinar with PV Magazine. You can tune into their discussion here, where they highlight four themes to keep in mind about remote solar sales, or continue reading for the key takeaways (and don't miss out the infographic at the end of this article). Set up a Sales Process for Remote Selling There are some in-person sales processes that also apply to remote selling, e.g., having a strong inbound lead funnel and a system that allows you to quickly respond to leads and book appointments. The key difference with remote sales is that you’re selling without any physical presence. The first process to set up is what you’ll be using to replace your physical presence in a customer’s home. The best solution is video conferencing with the ability to share your computer screen. After you’ve selected a platform you’re most comfortable with, Meital Stotland recommended as practice, to find the least tech savvy person you know and walk them through how to set it up over the phone. Once a remote appointment is booked, Meital says “preparation is vital,” just like when you’re on the ground doing field consultations, but a little different. For remote sales, before the first consultation call, here are a few good practices: Get a copy of their electricity bill Ask for pictures of their electrical panel to have on hand; don’t forget to share what specifically you’re looking for Send an email with instructions on how to set up and use the video conference platform, and what the backup plan is if it doesn’t work Essential Technologies In addition to using a video conference platform, there are a couple very helpful technologies to consider for remote sales. Meital mentioned that Baker Electric Home Energy has been using Aurora for sometime now, and “it's a great tool to have when you're designing and selling remotely.” Meital shares her screen with her prospects while logged into Aurora, and co-designs their PV system with them, just as she would at the kitchen table. Elliot pointed out that having the ability to show customers Aurora’s capabilities, such as up to date imagery with NearMap, LIDAR, and energy production estimates, can help build credibility and trust with customers. Another technology that is very useful for remote sales is an electronic signature tool. The one Baker Electric Home Energy uses is DocuSign, and Meital shared that you can easily review the agreement with customers, answer their questions, and show them where to sign remotely. Adjustments to Your Sales Pitch Elliot and Meital provided a number of tips on how to adjust your sales pitch for remote sales. For starters, since you won’t be physically present, your tone of voice will be key to conveying your energy and confidence. Make sure to use the camera. Building trust will be a little more challenging with remote sales, and allowing your customer to see you will help. Second, write a skeleton outline of your solar consultation to help you stay focused. Take advantage of now having the ability to have notes next to you during an appointment. Elliot suggests that if you’re a sales leader, it’s a great opportunity to shadow your team members, record and share the calls that went well to help the team grow. Lastly, with current events and stay at home orders, not everything will be perfect. It’s okay to share that you’re working from home and might get interrupted. It’s okay to be human, “give yourself a break, but still be professional, make sure you address all of their motivations and all of their objections” says Meital. Elliot added that the key here is “empathizing with the moment, people really have a lot of uncertainty that we're all processing.” Closing the Sale Avoid the temptation to end your call with “okay, I’ll check in with you next week.” Ask for the sale. There’s no downsides to asking for the business. You’ll either get the sale or find out the reasons for their hesitations and know what is needed to close the sale. It’s best not to assume that during these difficult times people don’t want to go solar. Let them make this decision. Some may have been putting off this purchase decision until they have more time to think about it and many may now just be considering it with their rising electricity bill. Something else to keep in mind: be ready with a payment plan. Consider switching from cash to to loan or lease option plans. “I think a lot of us in the solar industry have been selling cash; the last couple of years, it's been a wonderful land of cash,” said Meital. “And now I think we need to remember what it was like to sell during the recession.” If after addressing all their concerns, and they’re still not ready to buy, you can always ask them “how would you like me to follow up?” Meital suggested it’s a good idea to have a methodology of how you’re going to follow up, because unless they say “don’t call me, I’m not interested,” you should. This is one of a series of activities Aurora is putting together to help share insights on the topic of remote sales. To find a wealth of resources, click here. ### Highlights of SEIA Webinar Coronavirus — Implications for the U.S. Solar Industry On Friday March 20th, SEIA representatives hosted an online meeting for solar professionals with updates on: (1) possible implications of COVID-19 for the solar industry; (2) actions SEIA is currently taking on behalf of the solar industry and its workers; and (3) resources for solar professionals to help their businesses and employees. Here’s a summary highlighting the main points addressed in each section of the webinar: 1. Keeping People Safe “It’s really important that we keep the health of our workers at the forefront of our thoughts,” president and CEO of SEIA Abby Hopper stated. She stressed the need to obey all public health orders and mandates during this time of emergency so that solar workers and the general public can remain as safe and healthy as possible. What You Can Do Follow OSHA’s COVID-19 workplace instructions Read SEIA’s 2-page resource guide for solar installers during the COVID-19 crisis SEIA’s next priority is advocating to protect solar workers’ businesses and livelihoods at both the state and federal level. “We understand that this is critically important to you as business owners, not just as people in the solar industry,” said Erin Duncan, Vice President of Congressional Affairs. 2. Advocating for Solar: Federal Update SEIA’s next priority is advocating to protect solar workers’ businesses and livelihoods at both the state and federal level. “We understand that this is critically important to you as business owners, not just as people in the solar industry,” said Erin Duncan, Vice President of Congressional Affairs. Short-Term Federal Advocacy Erin Duncan, Vice President of Congressional Affairs, and Jeremy Woodrum, Director of Congressional Affairs, summarized the federal actions taken as of March 21, 2020: The President has signed two stimulus packages; both are largely focused on immediate public health concerns. The Families-First Coronavirus Recovery Act includes early relief measures for small businesses. Congress is currently negotiating a third relief package with more economic stimulus measures expected. While solar businesses have not been specifically named in these packages, SEIA has supported early small business relief measures included in the Families-First Coronavirus Recovery Act such as small business loans and government-subsidized paid leave. “Since 75% of solar businesses are considered small businesses (under 500 employees), we support all broad-based proposals that will help small businesses,” explained Jeremy Woodrum. What You Can Do Read SEIA’s summary of paid leave provisions in the Families First Coronavirus Protection Act See if you qualify for a federal loan at the Small Business Administration’s Coronavirus (COVID-19): Small Business Guidance & Loan Resources Fill out SEIA’s Solar Industry COVID-19 Survey on how COVID-19 has impacted your business. This survey provides SEIA with invaluable data to help convince members of Congress that action is needed specifically for members of the solar industry. Long-Term Federal Advocacy: SEIA’s 3 Main Asks “Due to the disruption of work time and supply chains, many solar companies will not be able to take full advantage of the 26% ITC credit this year,” said Jeremy Woodrum. “One of our top priorities is extending the ITC so that solar companies can make up for that lost opportunity.” Specifically, SEIA’s three main federal policy proposals are: 1. Launch a program to provide a choice of existing ITC or direct cash payments in lieu of the ITC for all qualified solar energy projects for the length of the ITC period. 2. Pass a multi-year extension of the solar ITC and postpone the corresponding placed-in-service deadlines. 3. Extend the Safe Harbor agreement to accommodate all equipment delivered by the end of 2020 and 2021. What You Can Do Sign SEIA’s letter to Congress with these three policy proposals. Call your representatives and senators and ask them to approve these policies. Fill out SEIA’s COVID-19 impact survey. 3. Advocating for Solar: State Affairs Update Sean Gallagher, SEIA’s Vice President of State Affairs, presented a summary of COVID-19’s impact on solar at the state level: Most state legislatures have suspended operations until further notice. Most regulatory agencies are operating virtually (work-from-home). See SEIA’s guide to, and examples of, virtual solar permitting processes. Most state actions are currently focused on public health rather than economic recovery. SEIA is currently advocating for inclusion of solar businesses in defined groups for relief and special access to financing. The National Conference of State Legislatures provides daily updates on state-level COVID-19 containment measures—check it regularly for all states in which your business operates. Solar + State Shelter-In-Place Orders More states are moving towards shelter-in-place mandates, which allow only essential services to continue in-person. SEIA is working with state legislators to see if solar projects can be included in essential services. Check SEIA’s page for regular updates on each state-mandated business closure, and how each mandate affects solar business activities in that state. SEIA is currently developing guidance around such orders as they affect non-essential businesses (for example, how to move more solar activities online or over the phone). Currently, SEIA continues to analyze the DHS COVID-19 recommendations (upon which most state orders are based, such as California) before finalizing guidance. The details of shelter-in-place orders vary from state to state, so carefully review those for each state in which you operate. 4. Tax and Legal Implications of Supply Disruptions John Marciano, partner of Akin Gump Strauss Hauer and Feld LLP, addressed some concerns about the effects of supply disruption on solar projects and contracts. His response to the main question, “Are disruptions to continuity from COVID-19 covered under the majority of solar contracts?” was a qualified yes. “Most current solar projects were begun before Dec. 31, 2019, far before the global impact of coronavirus could possibly be predicted by most people,” he explained, “But review the Force Majeure clauses in your solar contracts. In most cases, epidemics such as COVID-19 will be covered, but it’s best to be sure. Also, remember that all solar projects finished before 2024 still count for the ITC credit.” He pointed out that to be covered by most contracts, the only gap in service must be caused by COVID-19 effects. Long-Term Optimism for Solar Industry Solar has become one of the strongest industries in the nation within the last decade, and SEIA is working to keep it strong. Jeremy Woodrum stated, “SEIA, with the help of our survey, will continue to tell the positive story of solar in this country: that strong, clean renewable energy is supported by 90% of Americans, and we have the workforce to show for it. We will keep advocating for the solar industry to recover, maintain, and grow.” ### Want to Boost Your Solar Sales in 2020? You Better Learn to TALC If you have been selling residential solar for the past few years, you have probably been taught that uncovering a customer’s pain points is the key to closing the deal. Specifically, you have likely mastered the art of turning a homeowner’s sticker shock over their utility bills and fear of losing control over the cost of their electricity, into a case for going solar. It was a simple and effective tactic: all you had to do was convince the homeowner that solar would make the pain go away, and you would walk out with your signed contract in hand. In many cases, this message still works: Homeowners still often face the pain of high electric bills, and if you are selling solar plus storage in the right regions, they may still be reeling from the pain of persistent power outages. However, if you find that selling based on pain is no longer as effective as it used to be, you are not alone, and you should keep reading. Solar buyers today are more savvy and more cost-conscious than ever before. “It has turned into a mature business” says Trevor Wright, Director of Sales at Semper Solaris, a SPW 2019 top 10 residential solar contractor. “For the most part [prospects] know what solar is, [and] you’ve got a much smarter buyer now. The low hanging fruit [...] most of them have already bought.” This is a new solar market, and the competition for customers is brutal. If you manage a large team of sales reps, things are even worse - because of high employee turnover and an increasingly competitive job market for the best reps, it’s a constant struggle to keep your team happy. This is one of the reasons why sales reps are among the hardest roles to fill in the solar industry. Source: 2019 National Solar Jobs Census. So what do you do if you are a successful closer who is looking to maintain your edge and elevate your solar sales to the next level in 2020? Or what if you are a sales leader, trying to grow your company from tens to hundreds of millions of dollars in revenue? From my conversations with some of the most successful sales organizations in solar, to thrive in this environment, I suggest that you ditch a sales strategy based on buyer pain, and learn instead to adopt a strategy of TALC - Teach, Ask, Listen and, of course, Close your leads. Learn How Semper Solaris Uses Aurora to Grow & Drive Profitability. Watch our Webinar: Unlocking Modern Solar Sales: How Top Teams Use Software to Win TEACH Assuming you already have a qualified lead, the best first step in the sales process is to teach the homeowner about what solar means for their home. I’m not talking about rattling off generic facts about modules - they already have that information from Google (and from your competitors). I’m talking about building an engaging, interactive, educational experience - one that is tailored just for your homeowner. At Aurora, we have built a number of tools to help you deliver this experience. My personal favorites are: the Consumption Profile tool, which makes it easy to explain complex concepts like time-of-use rates, and the solar Sun Path, which helps to show which roof surfaces are getting the most sunlight. Whether you do this at the kitchen table or over the Internet, having an interactive, visual experience will make you stand out from the competitor who just sent the customer a page with some poorly placed panels and pricing. With the Aurora Consumption Profile tool, you can create an accurate electric consumption based on your customer's electricity bill and location, then show them the impact of their pool, lighting or even their EV.  ASK Now that you have established yourself as a trusted advisor, don’t be afraid to ask open-ended questions to get the customer talking about themselves, their hopes in going solar, and their concerns. Start off by asking the gentler “pronoun” questions - these are questions that start with “What” or “Who”, and as you build trust, move towards the harder, interrogative questions, “Why”, “When”, or “Where”. The best sales reps ask about a customer’s objections to surface them at the beginning so they can listen to the response and address the customer’s concerns and provide satisfactory answers. Elliot Goldstein, an Account Executive used this technique to consistently top the leaderboard at a leading solar installation company. “The goal here is to get the customer to reinforce the reasons they are making this decision (without you having to bring up pain)”, says Elliot. “For example, ask if they would be okay with the look of solar on the front of their house. What is the possibility of moving? Lean into hard questions to distinguish yourself as a trusted advisor.” Again, it is critical that you have an interactive process in case they ask you questions that you hadn’t fully prepared for. A classic example is “I don’t like the panels on the front of the house”. An in-app simulation makes it easy to show the customer the economic effect of that decision. Aurora's energy performance simulation makes it easy to show the customer in real-time the economic effect of any decision, such as placing panels on the front of the house. LISTEN When asking your questions, actively listen to what your customer is telling you. The best sales reps will pick up on pitch, tone and other cues that indicate if the customer fully understands the value solar provides, or if instead they need more time to make a big decision. How do they react when you tell them the price? Or when you ask them to compare the pros and cons of buying with cash vs. loan or lease? Make sure you truly understand all of their questions and that you answer them adequately - it costs too much money for you to get this far without you feeling confident that they are definitely buying from you. CLOSE An experienced solar sales rep also knows that just getting the homeowner to sign is not the finish line. After all, if you have Taught, Asked and Listened like you should have, you would think that it’s just a formality to get them to Close right there and then. However, due to the industry’s high project cancellation rates and change orders, many solar sales reps still don’t earn their commission until the system is installed and the customer is satisfied. In my experience, the best way to avoid cancellations or change orders is to make sure that you sell to the homeowner something that they want, and something that your company can actually deliver on. This means that the homeowner feels as good about their decision after you leave as they did while you were in the home or on the call. It also means that you haven’t created a bad design which your operations department or installer will kick back. Common mistakes sales reps make include placing solar panels over fire code setbacks, chimneys, and other design errors. Fortunately, Aurora Secure Mode makes it possible to foolproof your sales process and reduce the risk of design errors while simultaneously enabling the sales person to personalize the site design. (Quick aside - when I talk to sales leaders about giving everyone access to Aurora, I get a combination of delight and fear: everyone loves what we have built, but many are also worried about what could happen if they let their sales team access the project site models. We have you covered—our new feature, Secure Mode, lets you restrict your team from altering trees, buildings or other aspects of the site model). Learn How to Put Secure Mode to Work for Your Organization. CONCLUSION 2020 promises to be one of the most competitive years for solar yet. Your buyer has more information than ever before, including already knowing that solar will reduce their bills. The major question in their mind is why should they go with you. To close them, I suggest you start to TALC. It is the secret to some of the fastest growing, profitable companies in solar today, and will help you take your sales to the next level. ### Common Residential Solar Myths and How to Overcome Them As a solar professional, you know that many homeowners in your area can benefit from a solar system. Sadly, often they don’t know that. And it’s not only lack of solar knowledge that keeps them from contacting you, responding to your outreach, or going solar. It’s often one or more solar “facts” they assume are true: “I can’t afford to go solar.” “It’ll be harder to sell my home if it has solar panels.” “The installers will drill holes in my roof—you can’t tell me that won’t damage it!” “Sure, solar panels might start out productive, but they’ll get less efficient and need too much maintenance over time.” “My area’s too cloudy/cold/snowy/dark for solar panels.” Heard any of these before? We thought so. Of course, you already know that none of these so-called “facts” are true. On the contrary, going solar is one of the best financial moves many homeowners can make. But it can be difficult to reassure prospective solar customers of that. After all, they’re rightfully concerned about making such a major decision for themselves and their house. So we created this guide for solar installers to educate solar prospects on the truth behind five of the most common and harmful solar myths. Being prepared to address these misconceptions will help you allay leads’ unfounded concerns respectfully and convincingly, earning their trust and helping them to understand the many benefits of going solar. 1. Myth: “I can’t afford to go solar.” Fact: Solar prices have dropped 70% since 2010. This is probably the most common myth solar installers hear from concerned homeowners. And just ten years ago, those homeowners were probably right; residential solar was often prohibitively expensive until the 2010s. But today, solar costs are lower than most people think (having dropped by 70% just since 2010). Even though solar is much more affordable today, prospects may have heard stories of unscrupulous solar companies that have presented misleading numbers and pressured people into solar purchases that didn’t make sense for their personal financial situations. So don’t judge solar prospects for being wary of solar’s financial benefits. Instead, inform them about how technological innovations over the past decade have enabled reductions in both hard costs—like PV module prices—and soft costs, like solar design and installation. And don’t just inform them. Show them, with an individualized presentation, that not only are installation costs lower but also incentives (including new state-level clean energy policies) and diverse financing options can help them go solar in a way that works for their budget: Use a highly accurate solar design program to easily create and present a realistic system’s energy production on your prospect’s individual rooftop. Estimate how much solar will save your prospect with a thorough, powerful financial modeling tool—one that takes into account how much current solar incentives and net metering policies will save them over the system’s lifetime. Discuss their financial options: up-front (cash) payment, solar loans, leases, and power purchase agreements. Most homeowners don’t have to pay the entire up-front cost, and can see their systems pay for themselves within 6-9 years. Remind them that through 2020 they can save 26% on their solar costs with the Solar Investment Tax Credit (ITC), but that the residential ITC is scheduled to phase out by 2022. Finally, don’t just depend on your own testimony—gather and showcase enthusiastic online reviews of your former customers who are thrilled with their solar savings. Once you’ve clarified the current costs and savings of going solar with such detail, your newly well-informed prospects will be much more comfortable making this major decision. Extra Solar Myth-busting: Should I Wait? Myth: “If solar panels are always getting cheaper, shouldn’t I wait until their price bottoms out?” Fact: Solar hard costs have already dropped as much as they’re going to with current technology, especially considering the ongoing ITC phase-out. 2. Myth: “It’ll be harder to sell my home with solar panels.” Fact: Homes with solar panels tend to sell faster and for 4% more. Residential solar prospects sometimes worry that the appearance or cost of solar panels could lead to trouble selling their house down the road. You can alleviate these worries by showing them this 2019 study by leading real estate marketplace Zillow, which revealed that solar homes in the U.S. sell for an average of 4.1% more than their non-solar counterparts. Even back in 2015, when solar costs weren’t as low as they are now, a study by the U.S. Dept. of Energy revealed that solar systems increased home sale prices by an average of $15,000 for a 3.6 kW system (about $24,000 for a 5-6 kW system.) Show concerned homeowners this study and note its further conclusion that solar homes sold more quickly than comparable non-solar homes. This trustworthy data will help your prospects see that when they’re ready to sell their home, solar panels can make it more convenient as well as more profitable. Pro Tip: When presenting this information, remember to inform prospects that different financing options may impact the ease of their solar home’s sales process. If they’re considering an option other than cash financing, remind them to ask their financing provider about their policies for transferring the loan, lease, or PPA to a subsequent buyer. 3. Myth: “A solar system would damage my roof.” (Or “My friend’s cousin’s roof started leaking after they got solar panels!”) Fact: With proper installation procedures and precautions, solar roofs remain safe and sound. The idea of holes being drilled into their roof—on purpose—understandably spooks some solar prospects. Perhaps they know someone whose roof started leaking or letting in drafts after they went solar, and are wary of installers who assure that it won’t happen to their roof. Of course, flat roofs require no holes to be drilled at all. And if penetration-free solar systems are a good fit for a particular prospect’s property, let them know if you offer relevant options such as ground mounts or ballasted racking. But traditional roof solar panels still present the best option for many homeowners, so here’s how to help them realize that: First, ensure that you and your team are indeed providing the best services. This includes not installing solar on old roofs, damaged roofs, or other poor roof fits. Recommend that prospects complete any needed roof repair or replacement before installing solar panels. Explain the process (simply) to your customers. Once they understand the basics of a proper roof-drilling procedure, they’ll be reassured that the process will keep their roofs safe from damage and leaks. As with Myth #1, third-party social proof goes a long way towards allaying prospects’ anxieties. Positive reviews and glowing testimonials from your happy rooftop customers will let homeowners know that their roof is in good hands. This establishes trust by showing them that you’re not rushing them towards a decision—you’re genuinely concerned about their long-term benefit. 4. Myth: “As my solar panels age, they’ll get less efficient and need too much maintenance.” Fact: Solar panels require very little maintenance and stay productive for decades. Since solar PV systems are unfamiliar to many people, homeowners often assume that they malfunction easily, need frequent maintenance, and lose significant efficiency over their lifespan—thus leaving solar customers with more expenses and larger electric bills. Fortunately for you and your prospects, these are all misunderstandings. Just as fortunately, you can easily explain the reason in a single sentence: Solar panels have no moving parts. With no moving parts to malfunction or get worn out, solar systems are not only low-maintenance (probably more so than your prospects’ HVAC systems or cell phones) but also very long-lived. Share these facts with customers: Your solar panel suppliers’ warranty (Most solar panels are warrantied to produce at over 80% efficiency for 20+ years) Efficiency reductions from solar panel degradation are less significant than they may expect. Current solar panels will maintain near-consistent energy production for decades. Even less advanced solar panels installed in the 1980s still produce significant energy today. Solar panel maintenance is minimal, typically requiring only that panels remain unshaded. Usually, prospects will just need to keep their panels clean of dust, leaves, or heavy snow (depending on your area) and trim shading branches. 5. Myth: “Solar energy is unreliable—my area’s too dark/cold/cloudy/rainy/snowy/shady/etc.” Fact: Solar panels still produce electricity in cloudy weather and long, snowy winters. As always, be honest with your prospects: solar systems won’t produce as much energy on a cloudy day, in shade, or in winter. (And none at night.) But honesty includes letting them know that modern solar panels are 50-80% productive even under clouds and rain, and are worth the investment even in snowy climates. (For example, solar is growing exponentially in Germany, the upper Midwest, and New England.) Of course, the irradiance of every individual house is affected by a unique combination of different factors—sun exposure, climate, shade, and more. So the best way to convince individual homeowners that solar is worth it for them, in particular, is to create an accurate 3D model of their property to determine its irradiance. This model must account for all possible factors that will affect their system’s energy production; the right design program will make this much easier (and 30x) faster than you might think. Extra Solar Myth-busting: Solar Grid Connection Myths:“Will I have to go off grid with solar?” “Won’t I be able to go off-grid with solar?” “Won’t my solar system will give me power during a blackout?” Fact: No to all three questions, unless your prospects are willing to buy batteries (energy storage). Homeowners may choose to add a battery backup to their solar system to keep the lights on during a blackout, but let them know that battery systems can cost between $5,000 and $15,000. How to Inform Prospects Now that you have all the resources to dispel these solar myths, it’s time to share the realities of going solar with your prospects. But as always, effective communication isn’t just about what you say—it’s how and when you say it. Here’s a quick guide to sharing these solar facts: 1. Be Proactive Don’t wait for prospects to ask about these myths before sharing the truth. Some homeowners may be too shy to ask, or be driven away by false solar beliefs even before they contact you. So instead of letting them take the lead, take it yourself: 2. Share Online Homeowners almost always research solar energy and local installers online. Don’t let this opportunity go to waste—you can reach thousands of prospects with website articles, FAQ pages, and social media posts that debunk solar myths. 3. Show Evidence Don’t just assume that prospects will take you at your word. After all, you are selling solar, and they know you’re an interested party. Instead, make sure to back up your claims by sharing the trustworthy resources and research, such as those we’ve linked to in this article. Even better, showing how and why you’re making certain recommendations and estimates can help build trust. 4. Respect Their Concerns As a solar professional, you’re intimately familiar with the facts behind these five myths. It might get tiring to explain them over and over again, but remember that prospects don’t realize you’re doing that—to them, these worries are always brand-new. So never condescend, no matter how obvious the answers seem to you. Treat their objections seriously and patiently—they’re right to ask questions about solar’s long-term effects on their finances and home. 5. Create an Accurate Solar Model—and Tailored Proposal—for Their Property General solar knowledge and statistics are a great start. But in the end, each homeowner’s main question is, “How will solar help me, in particular?” The most convincing answer is a clear, detailed presentation that showcases accurate, individualized physical and financial models for your prospect’s home and lifestyle. If these design and financial models clearly account for everything that might influence a particular solar system’s potential, they will do more than anything else to show your prospect the concrete, tangible benefits of going solar. ### Module-Level Rapid Shutdown: New Requirements for Fire Safety Working in the solar industry, you’ve likely heard about rapid shutdown requirements. But what are they, do they apply to you, and do you know how to comply? Several states including California adopted newer rapid shutdown requirements starting in 2020, and many others had already adopted them prior to that point, so it’s important to understand what these requirements mean for your business. In this article, we tackle this topic and what you need to know to design safe and legal PV systems in areas with these requirements. Specifically, we look at the requirements for module-level rapid shutdown in the U.S. What Is Rapid Shutdown? With the increased popularity of solar PV—especially on homes—the National Fire Protection Association (NFPA) wanted to find a way to ensure firefighters could be safer when responding to fires on buildings with solar PV. In response, the NFPA, which publishes the National Electric Code (NEC)—standards for electrical wiring that are adopted by states and municipalities in the U.S., introduced rapid shutdown. Rapid shutdown requirements aim to provide a simple method for firefighters to de-energize the DC conductors in a solar system and ensure safe conditions on a roof if there’s a fire, explained Edward Harner, Chief Operating Officer of Green Solar Technologies. In the 2017 NEC, NEC Section 690.12 was updated to reflect new rapid shutdown rules. The update calls for module-level rapid shutdown instead of the array-level rapid shutdown required in the NEC 2014 code. States and municipalities adopt different versions of the NEC over time, but as of January 1, 2020, the NFPA reports that 31 states have adopted the 2017 NEC. To meet these module-level regulations, smart modules, microinverters, or other module-level power electronics are needed. Protecting Firefighters From Live Wires “On a typical string inverter system, even after the inverter is switched off, the DC conductors remain live as long as the sun is shining. To protect our firefighters from hacking any live wires while ventilating the roof during a fire, rapid shutdown was introduced to kill any power in the system conductors,” Harner said. Rapid shutdown devices are designed to lower the voltage in the DC system conductors to 30 volts within 10 seconds after the inverter is disconnected, he said. For standard string inverter systems, the NEC requirements also call for a rapid shutdown device for every section of the conduit run that is more than one foot from the array, he said. MLPE Needed That means that all buildings subject to the NEC 2014 or 2017 codes will need module-level power electronics (MLPE) such as microinverters and optimizers to enable the rapid shutdown, said Sean White, the author of several books about solar energy and the 2014 Interstate Renewable Energy Council Trainer of the Year. One of the drawbacks of requiring module-level rapid shutdown—as opposed to array-level shutdown—can be the additional cost, said Harner. Considerations for Systems with MLPE Another consideration to be aware of is the maintenance required for MLPE. “You need things to be replaced more often,” said White, who has solar PV on his roof at home. “I have 53 microinverters on my roof. There’s almost always one I need to replace. The microinverters have a monitoring system and tell me when they need to be replaced,” he said. In addition, the rapid shutdown requirements limit a designer’s product choices. Before the rapid shutdown requirement, designers could wire modules and put control devices outside the arrays, which was easy to do. The only way to meet the new requirement is to install an electronic device at each module, and there are limited options for achieving this goal. One way to avoid installing electronic devices at each module is to use smart modules, such as those from SolarEdge or Enphase, which have rapid shutdown equipment built into their systems. While solar systems with these kinds of components don’t require additional gear, most others do—with a few exceptions, White noted. Wildfires Boost Need for Rapid Shutdown The need for rapid shutdown has increased because wildfires are being sparked more often by climate change, especially in California and Australia. Without the rapid shutdown requirements, firefighting in the age of wildfires and climate change would be more complex—and dangerous to firefighters who are already grappling with the challenges of bigger and more frequent fires, said Harner. Supporting Firefighter Safety “There have been many reports in the news about firefighters needing to change their tactics at the last minute when, upon arrival to the scene, they find solar on a building,” he said. Firefighters are safer due to rapid shutdown requirements. More and more, they’re also safer because they’re taking precautionary steps such as maintaining a database of buildings with solar. And fire officials are providing special training on fighting fires in buildings with solar. For example, the city of Portland, Oregon is providing training to firefighters about how to respond to fires in buildings that have microgrids consisting of solar and storage. “Structures with solar only add more complexity to the challenge of firefighting,” said Harner. “We want our firefighters to be safe, and we want to also promote and accelerate the adoption of solar technology.” ### How Solar Easements Provide PV Peace of Mind A solar installation is a significant investment for your customers—and the last thing they want is to have that investment threatened. However, in some cases, future changes on surrounding property—such as a new building on their neighbor’s property or the growth of vegetation on adjacent land—could jeopardize the amount of irradiance their PV system receives, and thus how much energy it produces. There are options for solar customers to avoid these kinds of unpleasant surprises, however. Solar easements give solar system owners the right to negotiate with neighbors for access to unobstructed sunlight on their solar systems, according to the Solar Energy Industries Association (SEIA). In today’s article, we delve into what solar easements are, how they work, and some of the considerations that solar customers should be aware of if they are interested in pursuing easements. If this question comes up, whether in the sales process or in your post-sale relationship with customers, you’ll be well prepared to help. Protecting Against Shading of Solar Systems “Solar easements are important in ensuring that a homeowner’s solar panel system is producing optimal levels of electricity. Shade plays a large role in solar electricity production, and easements protect [homeowners] against that happening,” says Ken Pedotto, CEO of Solar Simplified. Specifically, solar easements restrict what your neighbors can build or grow on their property; they prevent neighbors from blocking sunlight to your solar panels, he says. Solar Access Laws vs. Solar Easements Easements differ from solar access laws. Solar access laws limit private restrictions on solar energy projects, says SEIA. For example, rules from homeowners’ associations are a common challenge that restrict how solar systems on homes or businesses are installed. Such rules are generally created to uphold a community’s aesthetic standard. When a solar system owner is grappling with solar access challenges from neighbors or homeowners’ associations, it’s important to ensure that the owner’s rights are protected. “To put it simply, a solar easement allows homeowners to legally protect their access to sunlight,” says Pedotto. There are two types of easements: affirmative easements, the right to use land owned by another entity; or a negative easement, which restricts a property owner’s use of land. A solar easement is viewed as a negative easement because it prohibits property owners from using their property in a way that prevents sun from reaching a solar energy system on a neighboring property. Potential Challenges of Obtaining Solar Easements It’s not necessarily easy to obtain a solar easement. That’s because the easement must be granted by a neighboring property owner—and the property owner can refuse to negotiate or grant the easement. It’s also important to recognize that negotiating easements can sometimes be costly. “Legal costs could exceed the cost savings of the system if neighbors are not willing to grant the easement for free,” says EPIC. “Depending on the density of houses in a neighborhood, a prospective solar energy system owner might have to negotiate with several neighbors to ensure access to sunlight.” Different states have different policies and protections regarding solar easements. For instance, the California Solar Rights Act gives local governments the ability to require solar easements in subdivision developments under certain circumstances, according to the Energy Policy Initiatives Center (EPIC). We delve into a few key state-level policies below. New York State and Montana Laws New York State is one of many states that protect a solar system owner’s right to ensure enough sun reaches the system. The state’s law states that solar easements should be created in writing. The document should include vertical and horizontal angles, provided in degrees, that identify the area that is the subject of the easement. In addition, the law calls for terms and conditions under which the easement would be granted or terminated. New York State also expects the document to include any provisions for compensating the solar system owner if the other party interferes with access to solar. Montana's law is similar to New York State’s, calling for a written document that includes the location of the easement. California Solar Protection Laws In California, two laws protect solar system owners: The Solar Rights Act and the Solar Shade Act, according to Go Solar. The Solar Rights Act, AB 3250, passed in 1978, includes measures giving consumers access to sunlight and preventing shading. It also restricts efforts by homeowner associations and local governments to prevent solar system installations. The act gives citizens a legal right to a solar easement. “Even though the law is more than 30 years old, the Solar Rights Act contributes significantly to California's strong policy commitment to solar energy, and the policy rationale for the Act is relevant today and continues to support California's solar energy policy initiatives,” says Go Solar. California’s Solar Shade Act While the Solar Shade Act (AB 2321) doesn’t create solar easements, it does provide some protection to solar system owners from shade created by trees on neighboring properties. When trying to decide whether it makes sense to pursue a solar easement, it’s a good idea to look to the court system to uncover how such laws are implemented. For example, one California court, in an unpublished portion of its opinion, held that a solar easement is only enforceable if it is in writing, according to EPIC. A document that creates a solar easement should identify the location of the easement in “measurable terms,” the court said. It should also include “restrictions that would impair or obstruct the passage of sunlight through the easement” as well as “the terms or conditions, if any, under which the easement may be revised or terminated,” according to EPIC. Local Governments in California Can Establish Solar Protection Ordinances An ordinance could establish solar easements designed to ensure that each parcel has access to sunlight, especially across adjacent parcels or units in a subdivision. In most cases, it’s critical that the parties create a written document. In the unpublished portion of its opinion in the Zipperer v. County of Santa Clara (California) case, the court specifically discusses the need for written documentation of solar easements, says EPIC. “The Zipperers built a home with solar heating and cooling systems in the mid-1980s. In 1991, the County of Santa Clara purchased an adjacent property containing a small grove of trees,” says EPIC. The trees grew “significantly,” and began to shade the Zipperer home, which hurt the solar system’s output. “In 1997, the Zipperers requested that the County trim or remove the offending shading trees.The County did not respond to the Zipperer’s request, and instead passed an ordinance exempting itself from California’s Solar Shade Control Act.” The Zipperers sued the county, arguing a breach of contract associated with an “implicit” right to a solar easement. The Zipperers argued that the county had implicitly entered into a contract to provide a solar easement because the county allowed the homeowners to build a home according to county requirements. However, the court said that a written, not “implicit” solar easement was needed. “Therefore, because the Zipperers did not have an express, written instrument, the court held that no solar easement existed.” The Zipperer case highlights how important it is that a solar easement be in writing. Deciding If a Solar Easement Makes Sense A written solar easement can offer assurance that a solar installation will continue to produce electricity at its full potential—particularly valuable in cases where there is potential for changes on surrounding property that could affect the system’s irradiance. However, the ease of getting one of these agreements in place is an important consideration. As Pedotto says, “Not only can solar easements be costly, but they can cause conflict with neighbors.” Pedotto suggests that an alternative to pursuing a solar easement in these cases is for homeowners consider community solar projects, which help bring neighbors together with shared access to local solar farms. ### The Aurora Blog’s Top 10 Articles of 2019 As we kick off 2020, maybe you’re thinking about how you can set your solar company (or personal solar career) up for success in the year ahead. At the Aurora Blog, we too are thinking about the year ahead and what topics we can tackle to provide the greatest value to you in your work. As part of that, we took a look back at the topics and articles Aurora Blog readers couldn’t get enough of in 2019. These ten articles were the most-read posts we published last year and are a great starting point for brushing up on key issues in the industry. We start with number 10 and count down to our #1 blog post of 2019! #10: Boost Your Solar Sales Success With Faster Lead Follow Up Customer acquisition is one of the biggest challenges for solar companies and one of their most significant costs. This means that when you connect with a prospective customer it’s critical to avoid mistakes that could cost you the sale. The National Renewable Energy Laboratory (NREL) conducted a two-year study that identified common mistakes in the solar sales process that can cost you the sale. “Our goal in this project was to understand better the decision making of potential customers that are considering adopting solar for their home, in order to be able to help solar developers and other industry stakeholders identify pathways to reducing customer acquisition costs,” says Ben Sigrin, one of the studies authors. In this article, the first in a series exploring findings from the study, we examine why fast follow up with leads is essential. You might be surprised to learn that many leads don’t get a quick response—and just how costly that can be! #9. How to Get HOA Solar Approval: Tips for Success In some areas, Homeowners Associations (HOAs) can present significant barriers to homeowners’ ability to install solar. As a solar contractor, the extent to which HOAs impact your business is dependent on your state’s laws and the HOA bylaws in the neighborhoods you target. However, there are a number of strategies you can employ to help ensure HOA approval for your customers’ PV solar systems, regardless of where you do business. In this article, we share best practices from interviews with solar contractors with extensive experience working with HOAs to help ensure successful outcomes on projects in HOA communities—and guide your prospective customer through the process as well. #8: How Gippsland Solar Won a Unique New Construction Solar Deal Designing solar for a building that hasn’t been built yet presents many unique challenges, but the right tools can help your solar company overcome them and win more business. Gippsland Solar won a unique and high-profile solar project for the globally recognized Penguin Parade Visitor Centre in Australia using Aurora solar software to design the PV system—before the Centre’s new building was constructed. Although they had only the architectural plans to work from, Aurora gave Gippsland Solar the tools to precisely calculate how many panels would fit, how much energy they would produce, and present the designs in a compelling way for the buyer. Andy McCarthy, Gippsland Solar founder, shares the process and insights on how you too can put in place a winning system for designing solar for new buildings. #7. How to Sell Commercial Solar: 3 Strategies for Success There is a lot of complexity that comes with selling commercial and industrial (C&I) scale solar, including many factors that differentiate it from residential solar sales. Your commercial client’s motivations for considering solar differ from residential customers, as do the ways they evaluate your proposal and the processes by which they make their decisions. To understand some of the important factors in a successful commercial solar sales process, we spoke with professionals with extensive C&I solar sales experience. In our conversations, some essential elements of a successful commercial solar sales process emerged: asking the right questions during the sales process, understanding the landscape of other energy and building upgrades your commercial client may be considering, and selecting the right tools and technologies (including the right proposal and design tools to close the sale). In this article, Part 3 in our Unlocking Commercial Solar series, we delve into each of these topics and how to tackle them intelligently to improve your chances of closing the commercial solar sale. #6: Making Sense of Commercial Solar: What You Need to Know About C&I Falling between the better-known residential and utility-scale solar industry sectors, commercial (C&I) solar encompasses a wide variety of customer types and project sizes. It also differs from residential solar in some key ways. Commercial solar has been slower to take off than the residential sector, but there are signs that this sector is poised for significant growth. And, for those who learn to navigate the complexity of these projects, the rewards can be big. In this article, we delve into a variety of aspects of commercial solar to help solar professionals understand the dynamics of this unique sector—including a brief primer on what commercial solar is, the scale of this sector and some of the factors that have constrained its expansion, and forecasts for future growth. #5: What Solar Contractors Should Know About O&M Over the lifetime of a PV system, operations and maintenance (O&M) can be important in ensuring that the system achieves optimal power production. As the solar industry has matured, O&M as a service offering has evolved along with it, growing from simple service offered by EPCs to a dedicated market segment comprised of independent service providers and robust branches of solar contracting companies. A solar contracting company evaluating where O&M fits in relation to its services has a number of factors to consider, particularly regarding whether to offer O&M in-house or outsource it. In this article, we explore what solar O&M involves, considerations for solar contractors regarding offering O&M services or working with other companies specializing in this space, and some criteria for evaluating potential solar O&M partners. #4: Your Guide to Monthly Snow Loss Values from NREL Snow on solar panels can decrease the amount of energy they produce throughout the year. Yet determining the appropriate loss factor to account for energy production lost as a result of snow on the customer’s solar panels is particularly tricky. Not only does the amount of snow vary widely between different locations, the design of the solar installation–particularly the tilt of the panels–can play an important role as well. Thankfully, NREL has developed recommended snow loss values for different types of solar designs in different areas. In this article, we discuss this snow loss model and provide an interactive map to help you easily determine NREL’s recommended snow loss percentages for PV systems at different tilts and different locations. With this local, you can ensure your solar production estimates capture the effects of snow as accurately as possible! #3: The Key Differences Between Residential and Commercial Solar There are a number of important differences between residential solar and commercial solar projects for contractors. Whether you're considering adding commercial solar to your contracting business or want to understand how different sectors compare. To get the lowdown on some of the key differences in solar contracting for residential and C&I solar projects, we spoke experienced solar professionals in this area. Our conversation highlighted five notable differences between C&I and residential solar contracting, including differences in the length and complexity of projects, communication with customers, project costs, and financing. Read the full article to learn more! #2: The 3 Questions Your Solar Sales Pitch Needs to Answer Selling solar isn’t always an easy task—but the right framework can make it easier. This can help you effectively address the prospect’s concerns and communicate the value of a solar installation from your company. Drawing from the key insights shared by Aurora staff members Elliot Goldstein and Kenneth Williams in a popular 2019 webinar we hosted with Greentech Media, we share practical strategies for improving your residential solar sales. Based on their personal experiences selling millions of dollars in solar installations for leading U.S. solar companies, Elliot and Kenneth also explain the three questions your sales conversation should answer for every prospective customer. Read on to learn what they are and how to tackle each of these topics for maximum success! #1: Solar Panel Wiring Basics: An Intro to How to String Solar Panels Solar panel wiring (stringing) is a fundamental topic for any solar installer, but it can certainly be complex! An appropriate stringing configuration is essential to ensuring that your solar installation performs optimally. If the voltage of your array exceeds the inverter’s maximum, production will be limited by what the inverter can output. If the array voltage is too low for the inverter you’ve chosen, the system will also underproduce because the inverter will not operate until its “start voltage” has been reached. In our most popular article of 2019, we provide a primer on how to string solar panels. We review the basic principles of stringing in systems with a string inverter, including how to determine how many panels to have on a string and options such as stringing solar panels in series or in parallel. We hope you enjoy these popular posts and thank you for your readership of the Aurora Blog! Did you have other favorites that didn’t make this list? We’d love to hear about what topics you loved in 2019—and which you want to hear more about in 2020—in the comments below! ### Key State Policy Changes in the Second Half of 2019 In our latest state policy round-up, we highlight the key changes relevant to solar energy in states around the U.S. that have occurred in the second half of 2019 (building upon our round-up for the first half of 2019 and our 2018 round-up). The most exciting news (perhaps maybe even for the entire year) comes from New York! In one bill, New York committed to 100% carbon-free energy and set impressive targets for solar and wind development, renewable energy sources, emissions reduction, storage, and mandatory fund allocation for disadvantaged communities. Three other states joined New York in committing to 100% carbon-free energy; Connecticut, Virginia, and Wisconsin all did so with an executive order. This brings the collective total of U.S. states and territories who have formally committed to 100% clean or renewable energy targets to 16! California, Delaware, New Hampshire, and Oregon also passed solar-friendly bills, with wins for storage, tax and rebate incentives, and low- and moderate-income communities. Not all developments were positive though. Louisiana rolled back net metering, and in one bill, Ohio reduced its renewable portfolio standards, abandoned its energy efficiency programs, and bailed out multiple coal and nuclear power plants. These solar policy developments close out 2019, but we’re looking forward to what comes next in 2020. California In addition to California’s commitment to 100% clean energy and requiring all new homes to have rooftop solar starting January 1, 2020, the state also extended the prohibition of taxing energy generated by rooftop solar panels for another seven years with AB 1208. Back in 2013, AB 792 clarified and provided tax certainty for Californians going solar through third-party power purchase agreements (PPA) or any other financial model. The bill specified that all site-generated electricity is exempt from local “utility user’s tax,” and it was set to expire at the end of this year. Connecticut Connecticut joins a growing list of states that have committed to 100% clean energy with Governor Ned Lamont’s Executive Order No. 3. Among other climate change matters, the order directs the Department of Energy and Environmental Protection to “analyze pathways and recommend strategies for achieving a 100% zero carbon target for the electric sector by 2040.” Additionally, An Act Concerning a Green Economy and Environmental Protection (HB 5002) extends net metering for two years (halting the dismantling of net metering from the passage of SB 9 last year, which we covered last year, and absorbing a related bill—HB 7251), expands commercial and residential solar incentive programs, increases virtual net metering caps from $10M to $20M, and allows electric utilities to own energy storage and recover the cost from ratepayers. Delaware In August, Delaware Governor John Carney signed HB 65 that amends Title 25 of the Delaware Code to bar unreasonable restrictions on residential property owners from installing rooftop solar, changes the 2/3 vote to a majority vote required to amend existing restrictions by homeowners associations (HOAs) or maintenance corporations, and provides legal funds for the prevailing party should litigation arise over HB 65’s language. (For related coverage on solar and HOAs, including some of the protected rights homeowners have to solar, see this blog post.) Louisiana Louisiana rolled back net metering for new systems starting January 2020. In September, the Louisiana Public Service Commission made changes to net metering (R-33929) requiring rooftop solar customers to “buy-all, sell-all”—purchase all their electricity consumption at retail price, and be credited at the avoided cost rate for all electricity fed back to the grid. There is a 15-year grandfathering period for all systems connected before the end of this year to continue receiving the full retail rate. The thin silver lining to R-33929 is the elimination of how many customers can participate in net metering. New Hampshire Governor Chris Sununu signed into law the Low Moderate Income Community Net Energy Metering Act (SB 165) in July, requiring utilities to build at least two new community solar projects each year in low to moderate income communities with favorable net metering rates for residents starting January 2020. The bill also provides an additional incentive payment of 3 cents per kWh from July 1, 2019 through July 1, 2021, then drops to 2.5 cents per kWh. On the storage front, local municipalities are now allowed to extend property tax breaks for solar storage systems with the passage of HB 464. New York The New York Climate Leadership and Community Protection Act (SB 6599), also referred to as the CLCPA, is one of the most ambitious pieces of clean energy legislation passed in the U.S. Its major provisions include 100% carbon-free energy by 2040 (excluding new hydropower) with 70% from renewable energy sources by 2030, net zero emissions by 2025, ambitious offshore wind and solar energy development targets, as well as 3,000 MW of energy storage capacity installed by 2030. The CLCPA creates two groups: the Climate Action Council and the Climate Justice Working Group. The Climate Action Council will be responsible for creating a scoping plan with recommendations to reduce emissions with consultation from various groups. The Climate Justice Working Group will define “disadvantaged communities” and be a representative voice for these communities to the Climate Action Council. SB 6599 also mandates 35-40% of all state climate and clean energy spending funds (plus any future related initiatives) go to disadvantaged communities. The amount allocated to disadvantaged communities can increase over time as more funds are provided, i.e., this isn’t a one-time contribution. Ohio The contentious HB 6 was signed by Governor Mike DeWine back in July. In one bill, Ohio guts its renewable portfolio standards (RPS), allows utilities to abandon its energy efficiency programs, and bails out two of FirstEnergy Solutions’ nuclear plants and two coal plants owned by Ohio Valley Electric Corporation through ratepayer surcharges. HB 6 reduces Ohio’s current RPS from 12.5% by 2027 to 8.5% by 2026, then waives the standard after 2026. Instead of the existing goal of reducing customers’ energy use by 22% from 2008 levels by 2027 through energy efficiency programs, utilities are allowed to abandon those programs after achieving a 17.5% reduction. Roughly $1B will be paid out to FirstEnergy over a span of seven years from the $0.85 surcharge on utility customers’ bills, with an additional $2.50 monthly surcharge to be redirected to the Ohio Valley Electric Corporation. An effort to overturn the bill through a voter referendum for next year’s ballot has gone through a District Court and the Ohio Supreme Court; the Supreme Court declined to hear the case. Oregon In early August, Governor Kate Brown signed HB 2618 creating a new solar plus storage rebate program with a budget of $2M. The bill allocates at least 25% of the rebate budget for low- and moderate-income households and low-income service providers, along with a higher net cost coverage of up to 60%. Virginia Virginia joins a growing list of states that have committed to 100% carbon-free or renewable energy with Executive Order 43. Governor Ralph Northam set a goal of 100% carbon-free by 2050, with a goal of producing 30% of its electricity from renewable sources by 2030. This is in addition to other efforts aimed to support Virginia’s clean energy transition, help climate change mitigation, and reduce the burden on low-income communities. Wisconsin Wisconsin also committed to 100% carbon-free energy by 2050 through an executive order—#38. The newly created Office of Sustainability and Clean Energy will lead this effort. It will ensure that the state fulfills the 2015 Paris Climate Accord carbon reduction goals, develop a plan to help with climate change adaptation and mitigation, promote clean energy workforce training, and create various standards for existing and future state buildings. Despite some setbacks for solar in Louisiana and Ohio, there were many positive state actions in the second half of 2019. In this round of policy updates, we see several more states join the commitment to transition to clean energy—a sign that states are recognizing the importance of the clean energy transition and how clean energy sources like solar benefit their residents, the economy, and the environment. States have also included storage, friendly solar tax and/or rebate incentives, and low- and moderate-income communities in their legislation. Many of these commitments will help counteract changes like the step-down of the federal Investment Tax Credit starting in 2020.   ### What Is the Cost of Section 201 Solar Tariffs? New Data from SEIA In a young industry like solar, policies can have a critical impact on growth. Those impacts may be positive—for example, net metering has been a key policy for making solar cost-competitive in the U.S. (as have feed-in tariffs in other areas)—but that's certainly not always the case. Over the last couple of years, one of the biggest policy shake-ups in the U.S. market has been the imposition of Section 201 solar tariffs on imported solar cells and modules. The solar tariffs made imported modules more expensive, counteracting years of dramatic cost declines. New research from the Solar Energy Industries Association (SEIA) quantifies the impact of the Section 201 solar tariffs. The report, The Adverse Impacts of Section 201 Tariffs, assesses the market impacts from 2017 (when the solar tariffs came under consideration) through 2021. SEIA finds that the solar tariffs, which have made U.S. solar module prices among the highest in the world, significantly slowed the pace of solar adoption—costing $19 billion in private sector investment, 10.5 GW of solar capacity, and 62,000 jobs! While broader market reports are optimistic for the future of our industry—projecting that total installed PV capacity in the U.S. will more than double over the next five years—these striking numbers underscore how much faster solar industry growth could have been. In today’s article, we take a look at the details of SEIA’s analysis. Section 201 Solar Tariff Background In January 2018, the U.S. government imposed a 30% tariff on all imported crystalline silicon PV (c-Si PV) modules, under Section 201 of the Trade Act of 1974. This followed significant industry uncertainty starting in early 2017 as a result of the pending trade case brought by two module manufacturers. The tariff which started at 30% in 2018, gradually drops down by 5% per year, dropping to 15% in 2021. These solar tariffs resulted in prices “43 - 57% higher than the global average, leading to higher prices for customers and reducing overall demand,” reports SEIA. A comparison of U.S. (blue) vs. global prices (red) for monocrystalline and polycrystalline silicon modules. Source: SEIA, The Adverse Impacts of Section 201 Tariffs. Higher Prices, Slower Market Growth One of the key findings in the new data from SEIA is how these higher prices have impacted solar adoption. One of the easiest ways of understanding this is to look at how the solar tariffs have changed the Levelized Cost of Energy (LCOE) of solar. If you’re not familiar with LCOE, it is a common metric used to compare the per-unit cost of different types of energy. Solar competes against other energy types; higher component prices “reduce the size of the addressable market by pushing economics in favor of substitutes (existing generation, gas and wind) in marginal markets.” In areas where there is a thin margin of price difference between solar and other energy types, these price increases can make the difference in whether a solar purchase makes economic sense, as illustrated in the chart below. “LCOE by Installed PV Price and Residential Hurdle Rate for Select Cities and Installed Costs.” The two curved lines represent different LCOE values. The vertical position of the horizontal lines indicate the LCOE that a solar installation would need to be below in order to be installed in different cities, and the horizontal distance of these lines represents the range of possible energy yields in that location. Points on horizontal lines that are above the LCOE Curve are financially feasible projects. As you can see, in some areas the price increases from the solar tariffs may push the cost of solar out of reach. Source: SEIA, The Adverse Impacts of Section 201 Tariffs. Ultimately, as a result of these tariff effects, the market for new projects between 2019 and 2021 has been reduced by 7.5 GW and, in total, more than 10.5 GW of solar installations will not be deployed. SEIA reports that this translates to enough electricity to power 1.8 million homes. A comparison of estimated solar deployment levels in the U.S. between 2017 and 2021 with and without the impacts of Section 201 solar tariffs. Source: SEIA, The Adverse Impacts of Section 201 Tariffs. Lost Jobs As a result of this decreased solar demand, SEIA estimates that between 2017 and 2021 there will be 62,000 fewer solar jobs than under a business-as-usual scenario. A comparison of estimated solar jobs in the U.S. with and without the impacts of Section 201 solar tariffs. Source: SEIA, The Adverse Impacts of Section 201 Tariffs. Lost Investments Similarly, cost increases from the Section 201 solar tariffs resulted in reduced investment in the solar industry. In total, SEIA estimates that $19 billion in investment opportunities was lost as a result of the policy changes. Annual investment in the solar industry and estimated lost investments resulting from the Section 201 solar tariffs. Source: SEIA, The Adverse Impacts of Section 201 Tariffs. The solar tariffs applied under Section 201 could have been worse; the industry has continued to make progress and forecasts point to a bright future ahead. (Stay tuned next week for a round-up of new state policy developments, many of which are positive for solar.) However, these figures put into context the impacts of this national policy change on our industry at a macro level. Beyond the economic impacts, the slowed pace of solar growth had other significant effects as well. SEIA reports that CO2 emissions will increase by more than 26 million metric tons, equal to emissions from 5.5 million cars or 7 coal plants. As a solar contractor, you’re on the front lines of bringing about a new, cleaner energy future. We’re thankful for the work you’re doing and aim to give you the tools to succeed—from lowering soft costs to sharing solar sales tips and interviews with industry leaders. Let us know in the comments below what new articles would help you, or how your company has coped with the ups and downs of the industry! ### Is Solar a Good Fit for This Bavarian Castle? In our Solar Landmarks series, we explore solar designs for landmarks around the world—from Buckingham Palace to Independence Hall—all from the comfort of the Aurora office. In our latest installment, we took a look at one of the most fanciful sites yet: Neuschwanstein Castle. Neuschwanstein Castle was built in the late 1880s and sits on rugged terrain near the German-Austrian border overlooking the town of Hohenschwangau. The famous castle attracts hundreds of thousands of visitors annually—and even served as inspiration for Walt Disney’s castle designs. Although we wouldn't expect to see solar added to this site anytime soon, given its historical significance, analyzing the solar potential of Neuschwanstein Castle presented a good challenge for Aurora’s design tools and irradiance engine. Not only does this location provide a chance to utilize Aurora’s expanded international LIDAR data, but its mountainous location also provides a perfect venue to put Aurora’s new horizon shading functionality—which accounts for the shading impacts of surrounding terrain—to the test. Let’s take a look at what we found in our remote site assessment for Neuschwanstein Castle. Could onsite solar be a good choice for meeting the castle’s energy needs? Modeling the Castle To understand whether a solar installation was feasible for this site, we began by creating an accurate 3D model of the castle. A 3D model makes it possible to precisely determine shading at the project site, determine where it is possible to place solar panels (and ultimately how much energy could be produced if solar were installed). Understanding the Site: Global Google HD and LIDAR Precisely modeling this complex site was made easier by the presence of robust LIDAR— a form of 3D data—at this location. LIDAR makes it easy to determine the heights and slopes of roofs, towers, and trees so that we can ensure our remote analysis is accurate. Thanks to our partnership with Google, users can access LIDAR and crisp images worldwide. Learn more about this partnership and the coverage area here. LIDAR data, available through a partnership with Google, provides a detailed view of the building, terrain, and trees at Neuschwanstein Castle. This allowed us to be confident in the accuracy of our site model and shading analysis, without physically visiting the site. Creating an Accurate 3D Model with SmartRoof Modeling a complicated structure like Neuschwanstein Castle can be managed by combining several smaller roof sections, similar to how we modeled San Francisco City Hall. We began by outlining the main rectangular sections of the roof using Aurora’s SmartRoof tool and then applied a steep pitch to the two sides. To ensure the pitch was correct, we used Aurora’s “Fit to LIDAR” option, to match the pitch of the roof faces to the actual conditions at the site. The spires were modeled by creating a tall circular obstruction (again Fit to LIDAR helped to accurately model the height). From there, to create their conical roofs, we traced the perimeter to create the outline of the roof. If all the edge lengths are similar, the resulting structure will closely resemble a cone. Adding dormers to the top of the castle was a breeze. We placed one using Aurora’s dormer tool, edited the edges, and then cloned it across the roof. And there you have it—the completed castle: A 3D model of Neuschwanstein Castle, created in Aurora solar software.  Assessing Irradiance The next step of our remote site assessment to determine the feasibility of a solar for Neuschwanstein Castle was to calculate the irradiance at the site. With the design completed, we pressed the irradiance button to run an irradiance analysis of the site. Aurora then calculated the irradiance on each roof face at the site, by simulating the position of the sun for every daylight hour of the year at this location, in addition to accounting for other factors like diffuse irradiance. A color-coded irradiance map showing the irradiance on the roof faces of Neuschwanstein Castle, generated by Aurora. The values in the bottom right corner show the irradiance where the user's cursor is on the roof; the values shown are for a less sunny area on the north face of the roof but Aurora users can mouse over their designs to see irradiance in different areas.  As you can see in the resulting, color-coded irradiance map, the solar access at this site is not optimal. Many of the lower roof surfaces are shaded by towers and parapets. Additionally, the spires and many of the roof faces have such steep slopes that their available sunlight is quite low on the year because of poor tilt and orientation factor (TOF) values. (As we explain in this blog post, the tilt and orientation of a roof have a big impact on how much sunlight reaches the surface). A 3D view of our model of Neuschwanstein Castle, showing the irradiance on the roof. The dark colors indicate lower irradiance that is not optimal for solar.  On the north face of the main roof, the solar access is as low as 45% in some areas; even on the more optimal south face, solar access varies widely due to shading from dormers and towers. In the sunniest locations on this roof face, the Total Solar Resource Fraction never exceeds 87%. How Does Horizon Shading Impact This Roof? In addition to poor TOF and shading from the castle’s many ornate architectural features, there’s another big factor at play in the poor irradiance levels we find at this site: horizon shading. As we mentioned earlier, Neuschwanstein Castle is in the southern area of Germany, right up against the Bavarian Alps. The photo below shows some of the large peaks to the east and south of the castle. As you might guess, these have a noticeable impact on the sunlight this site receives at certain times of the day and year. With Aurora’s new horizon shading feature, we can determine exactly how that impacts irradiance. A photo of Neuschwanstein Castle, showing some of the tall mountains that surround this site and contribute to horizon shading.  Aurora’s horizon shading feature takes the surrounding terrain data and scans it to create an elevation profile, like the one shown below. This reflects how much of the sky is blocked by surrounding land features. (This is influenced both by the height of a given terrain feature and how close it is.) Here you can see the closer eastern and southern peaks show up as high elevation points, while the more distant mountains shown in the cover image at the top of this article show up as only around 5 degrees of elevation. Horizon profiles, like this one for Neuschwanstein Castle, underpin Aurora's horizon shading analyses.  Using the horizon profile, Aurora calculates the times when the direct rays of the sun are blocked, as well as how the overall diffuse irradiance at the site is reduced by the mountains. If you look at the monthly Solar Access charts Aurora provides, you can see that the winter months are more heavily affected by the horizon shading; a larger percentage of those hours have the sun blocked by the mountains. Overall, solar access at this site is reduced by 10% as a result of the surrounding mountains! Failure to account for this source of shading, which would be easy to do without automated horizon shading analysis, would result in a significant overestimate of the solar access of this location—as we can see in the comparison below of the monthly solar access with (right) and without (left) horizon shading. Monthly solar access without accounting for horizon shading (left) compared to solar access when the impacts of horizon shading are calculated (right)—a 10% decrease. Site Assessment Conclusions Given the poor irradiance at this site—not to mention the strikingly steep pitch of the roof faces on this seventeen-story castle—we conclude that installing solar onsite at Neuschwanstein is not a great fit. (We imagine the Bavarian Palace Administration, which maintains this historic site, would agree!) Perhaps a community solar array in the surrounding lowlands could be a better fit for reducing the presumably hefty electricity bills of this building. While not an ideal site for solar, Neuschwanstein Castle provides an excellent illustration of how horizon shading can have a significant impact on the amount of solar energy available at certain sites with steep surrounding terrain. Aurora is the only solar design software that automatically pulls in terrain data and accounts for its impacts on shading by default. This, combined with robust international LIDAR data, allowed us to get a precise understanding of the actual irradiance levels at this site in Germany, without ever leaving our California office. Incorporating this kind of remote site assessment for solar prospects can help your solar company save on site visits and close more solar sales. ### Why You Need a Remote Solar Sales Process and How to Build One In the solar industry, it pays to move fast if you want to close a sale with a potential customer. In fact, sales research has found that how quickly a lead is called after expressing interest is the most significant driver of conversion rates. For that reason, it’s worth taking a close look at selling solar remotely—using screen sharing tools and remote solar design software—if you’re not already. A well-executed remote sales strategy can help you follow up with leads faster and reach them while they are most ready to buy. It can also return valuable hours to your sales team, allowing your company to follow up on more leads and sell more solar installations instead of driving from home to home. Additionally, online sales calls may better suit the preferences of modern consumers who prefer to make purchasing decisions online rather than have a salesperson visit their home. Finally, this approach can significantly reduce soft costs for your company by allowing you to limit costly site visits to just the customers you’ve already closed. Mike Wiegel at Solarponics, a California solar installer, experienced this firsthand:  “[Remote selling with] Aurora has given us the ability to do accurate site designs while reducing pre-sale site visits—saving us $500 per lead." In today’s article, we break down what you need to put in place a strong system for selling solar remotely. What Does a Remote Solar Sales Process Look Like? When we talk about selling solar remotely, what are we referring to? A remote solar sales process involves selling solar to the customer from your desk rather than in the home or office. The use of conferencing software that enables you to share a view of your computer screen lets the prospect follow along with any visuals, such as slides, your solar proposal, and even your solar design software. This allows you to showcase the design and effectively communicate the information the prospect needs to be confident in the decision to buy solar from your company. This system is one that Aurora Solar Account Executive Elliot Goldstein used often in his previous role selling solar. Prior to joining Aurora, Elliot worked for a leading national solar installation company, where he sold millions of dollars of residential solar deals and helped lead an inside sales team that operated in 16 different states. Elliot explains that this process worked particularly well because it allowed him and his team to get an accurate design and real numbers to the prospect in under one hour. His typical sales call would start off by talking through a slide deck that covered things like the homeowner’s current electricity bills, an introduction to solar, how net metering works, and the value the company offers (e.g., hardware details, quality of install, etc.). From there he would walk through the custom solar design for the prospect's home and ensure approval before getting into the financials of the project. [To learn more about best practices for a successful solar sales pitch, see our related blog post—which also includes insights from Elliot.] Likely most or all of your existing sales pitch can be retained when selling remotely, you just need the right setup to support a remote sale. Let’s dig into that below. Setting Up a Remote Solar Sales Model: 3 Key Elements Many solar companies have found great success selling solar remotely. If saving time and money while connecting with leads faster sounds like something your company is interested in, where do you start? There are a few elements to a remote sales strategy that works seamlessly: an inbound lead funnel (or other pipeline of qualified leads), a system for quickly responding to leads and booking appointments, and the right software tools to make the whole process work. Let’s take a look at each: 1) Create a lead funnel based on a strong online presence A remote solar sales approach can benefit significantly from an inbound marketing and sales strategy—in which interested customers come to you. Even if your company already has an outbound sales approach of door-knocking or reaching out to purchased leads, adding an inbound strategy can help you tap the pipeline of customers that are already looking for a qualified solar installer. Many teams function with a hybrid inside-outside sales approach. To build a funnel of inbound leads, you’ll want to invest in your website and build strong reviews on third-party platforms such as Google and Yelp by following up with customers. Having a strong online presence will make a difference to modern solar shoppers who are likely to do their own web research before moving forward in the solar sales process. 2) Create a system for booking appointments—with rapid response times It’s critical that you have an internal system that allows you to respond and book appointments with prospects as fast as possible. A major benefit of an inside sales approach is that you can pitch and close the homeowner that same day—within the same hour even—of when they request the quote. Research supports that the time when a homeowner is requesting the quote they are most likely to buy and you’re more likely to connect with them then. In fact, one study of 3.5 million leads, found that calling within the first minute of lead generation can increase your likelihood of conversion by nearly 400%. To support lead generation, your website needs to be set up with a way to identify prospects and gather their contact information so you can follow up quickly. Options include: a pop-up form that allows them to enter their phone and email (this can be especially effective if you offer something of value, such as a solar factsheet) or a chatbot. However you structure it, you’ll want to make sure that your team is prepared to immediately follow up with the prospect as soon as they enter their contact information. Elliot has seen success having a dedicated person or people who are responsible for quickly calling new leads to book an appointment, while their interest in solar is still top of mind. Depending on the size of your team, this could also be the salesperson themself. It’s a best practice to gather the information needed for a solar quote in this first appointment-setting call—particularly information on their utility bill and the address where solar would be installed. That way you can have a compelling and personalized quote ready to present during the sales call. This also allows your team to identify early on if a prospect is not a good candidate for solar (for instance, their property is too shaded), before investing a lot of time. 3) Get the right software tools to support great, remote, sales calls Of course, if you’re going to start selling solar remotely, you need tools to support remote sales calls and remote solar designs. Solar design software is a critical part of a workflow to get an accurate quote to a homeowner within one hour of the lead’s request. Aurora Solar enables accurate shade assessments, solar designs, and financial modeling without leaving your office through the use of satellite and other imagery, local weather data, and other advanced tools. This allows solar contractors to quickly determine shading at the site and create a professional sales proposal. Says Hans Frederickson of Cascadia Solar in Washington state, “What we can do now with the remote assessment [tools from Aurora] is put some nice graphics and financial information in front of a customer within an hour from talking with them on the phone.” Software that ensures accurate remote solar design is the backbone of a remote solar sales strategy. Without software that allows you to be confident in the accuracy of your designs, change orders resulting from inaccurate design assumptions can cut into your margins—or cost you the sale entirely. Aurora was built to ensure design accuracy without site visits, and its shading accuracy has been validated by NREL as statistically equivalent to onsite shade measurements. Other features, like measurements powered by computer vision, LIDAR, multiple imagery sources like Google, Bing, Nearmap, Google HD help ensure you can get a clear view of the site. With a robust software that ensures the quality of your remote designs, you can save the site visits (to ensure structural integrity) to after the sale has been closed, and limit costly pre-sale site visits to rare instances. For Hans and Cascadia Solar, this change enabled them to double solar sales month over month and more than double sales year over year! In addition to solar design and sales software, a video conferencing platform that supports screen sharing (such as Zoom, JoinMe, Clearslide, or others) allows you to walk through your slide deck and other information effectively with the customer. This will enable you to showcase the PV system you’ve designed and effectively answer customer questions. For example, with Aurora, you can show the color-coded irradiance map of the customer’s roof so they understand why you recommend placing panels in certain areas and not others. You could even show an animation of the sun’s actual path through the sky at different times of the year and how the shadows move across their property or show what the irradiance would be like if a tree removed. You could also consult with the customer on things like how their energy usage (and bills) might change if they got an electric vehicle, using Aurora’s consumption portal. Taking this kind of educational role, and using interactive visuals, can help build trust. This is particularly important for a purchase as significant, and often unfamiliar, as a solar PV system. You can round out your system with a tool like DocuSign or PandaDoc that makes it easy to send and get a signature on your contract, digitally. Implementing a system to sell solar remotely lets your sales team respond as fast as possible to inquiries from prospects, allowing you to connect with them when they are most interested. It returns valuable time to your team by reducing time spent driving to potentially faraway sites—giving them more hours to respond to do what they do best, sell. Offering a solar consultation over the phone or computer takes the pressure off the homeowner, offering an easier option for the client. Finally, the soft cost savings from reduced site visits can be significant, helping to make solar deployment less costly. ### What Is Horizon Shading and Why Is It Important for Solar? When forecasting how much energy your solar PV system will generate for a customer, accuracy is paramount. If your modeling software overlooks something important, like the stringing configuration of your system or shading from a nearby tree or other obstruction, it could result in errors and an unhappy customer. Advances in solar software have given solar contractors the tools to confidently design PV systems and accurately model their economics and energy production without physically taking measurements at the project site. Horizon shading, the latest addition to Aurora’s suite of modeling tools (released last week), adds an additional degree of accuracy for solar production estimates. It is also the first time that this functionality has been automated by a solar software (no need to import terrain data!), ensuring time savings for solar companies who want accuracy they can stand behind. What’s Changing? Aurora’s irradiance maps and performance simulations have been a huge part of its success as a tool for remote site analysis. However, their benefit hinges on the ability to accurately model the physical characteristics of the site. For select sites where hills or mountains could cause shading, the need to model the terrain around a project could present a challenge. Prior to the release of this feature, Aurora assumed that a flat landscape surrounded a project site. Objects and obstructions such as trees and surrounding buildings were manually added by designers, which worked well when modeling “near-shading” at the site, but the modeling of “far-shading” from surrounding hills and distant mountains was more difficult. A workaround employed by some users was to create polygon obstructions to model terrain. However, this proved time-consuming and error-prone. To make modeling this type of far-shading much easier for users, we decided to develop a feature called horizon shading. An example of terrain that would have been labor-intensive to model for shading purposes, prior to the release of Aurora’s new horizon shading feature. What Is Horizon Shading? Horizon shading enables the automatic modeling of shade due to the terrain surrounding a site, to support more accurate assessment of shading and improved solar production estimates. When an irradiance map is generated or a performance simulation is run, Aurora collects over 1 million elevation measurements from the nearby area and uses them to create a profile of the surrounding terrain. The resulting 360-degree elevation map is known as a horizon profile. A diagram showing the sun path (yellow) throughout the year and the horizon profile (green) of the terrain for a building with a large hill to the southwest. The sun follows the top of the sun path from east to west in the summer and the bottom in the winter. When calculating irradiance, Aurora checks to see if the sun is below the horizon profile. If that’s the case, the beam component of irradiance is blocked. Additionally, at all hours, the amount of diffuse light is reduced because some of it is blocked by the horizon. Horizon shading is enabled by default for all new irradiance maps and performance simulations in Aurora. Learn more here. Where Does Horizon Shading Matter Most? In many cases the horizon blocks less than 1% of available light, but the effect can be much more drastic in hilly regions. Houses in valleys, canyons, or even those situated on the side of a hill can all experience varying degrees of shading from the land. The effect of horizon shading on utility bill savings can also be amplified by time of use (TOU) rates. In the example profile above, a large hill sits to the west of the site, which would reduce production during peak-pricing hours in the afternoon according to California’s current TOU schedules. The distance between a site and prominent terrain also influences the impact of horizon shading. The example below illustrates horizon profiles for four sites situated at various distances from Japan’s Mount Fuji. The mountain obscures more of the sky at the site that is only 10 km from the peak, compared to the site that’s 16 km away. Horizon profiles for four sites situated north of Mt. Fuji at different distances. Note that the sites that are further away also have other, closer hills to the north. The automatic calculation of horizon shading represents a major step forward in the accuracy of remote shade assessment and solar production modeling with solar software. The automation of this functionality—a first in solar design software—is another way that Aurora is working to help solar contractors save time and money by getting the most accurate assessments with fewer site visits. For an example of an extreme case of horizon shading, check out our related Solar Landmark article! ### What to Know About the Solar ITC Step Down Whether you’ve been working in the U.S. solar industry for a decade or a week, chances are you’re familiar with the solar Investment Tax Credit (ITC), one of the most important incentives for solar customers. This federal policy, which allows owners to deduct 30% of the cost of a solar installation from their taxes, has been a cornerstone in the growth of the solar industry. Stakeholders breathed a sigh of relief in December 2015 when the solar ITC–previously set to expire at the end of 2016–was extended for an additional five years. But starting in 2020, the value of the tax credit will drop down to 26% of the system cost as part of a multi-year phase-out. In this article, we break down what solar contractors need to know to understand whether the full 30% ITC will apply to their customer's project depending on the timeline for the project's completion. Clarity on this point is essential to accurate modeling of the finances of the project and setting the right expectations for your customer. [Note: This blog post is provided for informational purposes only and does not constitute legal advice. Consult an attorney for guidance on your particular situation.] The solar ITC will begin to be phased out starting in 2020. The phase-out will end in 2022 when the ITC drops to zero for residential projects and a permanent 10% for commercial projects.  Differences the ITC Step Down Between Residential and Commercial Projects  It is important to understand that there are differences in the cut-off for when residential solar projects and commercial solar projects may claim the full 30% solar ITC (as the Solar Energy Industries Association, SEIA, explains here).  This is because the tax credits for these two types of projects are designated in different parts of the U.S. tax code. Although both residential and commercial PV systems have been eligible for the 30% solar ITC, the tax credit for businesses who invest in solar energy systems credits is established in Section 48. The residential solar energy credit for individuals who purchase a solar energy system is found in Section 25D. A major difference between the residential and commercial solar ITC is that commercial projects that "commence construction" before the ITC step down date of January 1, 2020 and are completed before 2024 can still receive the full 30% tax credit. In contrast, residential systems do not have this "safe harbor" period. They must be completed (that is "placed in service") before January 1, 2020 or else the lower 26% tax credit will apply.  Understanding the Solar ITC Step Down for Residential Projects As SEIA explains, "To receive the full 30% residential solar tax credit, the system must be 'placed in service; before the end of the day December 31, 2019. It is not enough to have signed a contract, or to have made a down payment or even to have begun construction. There is no bright-line test from the IRS on what constitutes 'placed in service,' but the IRS has equated this with completed installation in a Private Letter Ruling." In the case of newly built homes with solar PV systems, where the customer is the owner of the PV system, SEIA clarifies that eligibility for the solar ITC is established based on when the customer moves into the home. This is only the case for solar installation purchased in connection with the construction of a new home. In the case of solar installations on existing homes, eligibility is based on the time of completion of the PV system. Understanding the Solar ITC Step Down for Commercial Projects Solar ITC eligibility is a little less black and white for commercial solar projects. If construction on the project has not started before January 1, 2020, the lower tax credit will apply. But what qualifies as starting construction? Solar contractors need to have a firm grasp on the “commence construction” policy to know whether a commercial project that may extend into 2020 will qualify for the 30% ITC. In June 2018, the IRS released guidance which answers this question. Understanding the “Commence Construction” Clause According to the IRS, there are two ways to establish that construction on a commercial solar project has started for the purposes of claiming the solar ITC: passing the “Physical Work Test” by starting “physical work of a significant nature,” or passing the “Five Percent Safe Harbor test” by “spending five percent or more of the total cost of the facility in the year that construction begins.” In either case, the system owner will need to show continuous progress on the project after that point in order (the “Continuity Requirement”) in order to qualify. Let’s delve into each of these cases a little more closely: The Physical Work Test The physical work test establishes that construction has commenced on a project when “physical work of a significant nature” has begun on the project. The IRS states that whether the work is considered “significant” is based on the nature of the work, rather than the amount or cost of that work. In the case of a solar installation, one example of qualifying work that the IRS provides in their guidance document is the installation of racking to affix solar panels to a site.  A PV system owner can establish the start of a project for the purpose of claiming the solar ITC by starting physical work of a significant nature (what the IRS calls "the Physical Work Test").  The qualifying work may be undertaken by the taxpayer (i.e., the PV system owner) or a contractor working under binding written contract entered into prior to the start of work (i.e., your solar installation company). Technically, this work may take place on-site or off-site, however, in the case of a residential or commercial solar PV installation off-site work is less likely to apply. Off-site work does not include work “to produce components of energy property that are either in existing inventory or are normally held in inventory by a vendor”–as would typically be the case for solar equipment. “Preliminary activities” do not qualify for the Physical Work Test. Some examples of preliminary activities include planning or designing the project, securing financing, researching, obtaining permits and licenses, clearing a site, or removing existing solar panels or other components that will no longer be part of the energy property. Again, once construction has commenced on the project for the purposes of qualifying for the solar ITC, continuous work must be done on the project until it is completed. The Five Percent Safe Harbor Test An alternative way that a solar system owner may establish that construction has started on a project for the sake of qualifying for the 30% ITC prior to the end of 2019, is by having paid or incurred five percent or more of the total cost of the energy property. In the case of a solar PV installation, this refers to the cost of the PV system. This does not include the cost of land or any property not integral to the energy system.  A PV system owner can also establish the start of a project for the purpose of claiming the solar ITC by incurring five percent or more of the cost of the project (what the IRS calls the "Five Percent Safe Harbor Test"). There is an important caveat to this method of establishing the start of the project. If the project cost exceeds what was anticipated, so that the amount the system owner paid to satisfy the five percent Safe Harbor later falls short of five percent of the total cost, they will be found not to have met the requirement. As with the physical work test, the system owner must also show continuous progress after this point in order to continue to qualify for the Safe Harbor. The IRS notes that this could include “(a) paying or incurring additional amounts included in the total cost of the energy property; (b) entering into binding written contracts for the manufacture, construction, or production of components of property or for future work to construct the energy property; (c) obtaining necessary permits; and (d) performing physical work of a significant nature.” Combination of Methods If a PV system owner meets both methods of establishing the commencement of construction, whichever method occurs first will be used as the date in which construction began for the purposes of the solar ITC. Guidance from the IRS provides solar customers, contractors, project developers and others the clarity they need to determine whether and at what level the solar ITC will apply to a given project. With this information, your solar company can better advise prospective customers on how this key federal incentive will reduce the cost of their project. At the time of writing SEIA is working hard to build support for an extension of the solar ITC. You can find out how to get involved in this initiative here. Editor's Note: A version of this article was originally published on July 25, 2018. It was updated and republished on October 16, 2019 to clarify how the step down of the ITC applies to residential projects and reflect that the commence construction clause applies only to commercial projects. ### How Gippsland Solar Won a Unique New Construction Solar Deal For Andy McCarthy, founder of Gippsland Solar, integrating 666 solar panels into the design for the Penguin Parade Visitor Centre in Australia posed a big challenge. That’s because at the time Gippsland Solar was bidding for the project, the Centre’s new building had not yet been built! The new building, which houses 1,800 square meters of interpretation and public spaces, replaced an existing building and featured an unusual roof shape for the internationally renowned center. Using functionality in Aurora Solar software, Gippsland solar won the project. In this article, McCarthy shares the process and insights on how you too can put in place a winning system for designing solar for new buildings. Gippsland Solar’s PV design for the Penguin Parade Visitor Centre in Australia as the building neared completion. Photo Credit: Kane Construction, courtesy of Gippsland Solar. The Challenge of Designing Solar for a Building Not Yet Built The challenge: All Gippsland Solar had to work with were the architectural plans. Because the building did not yet exist, it wasn’t possible to physically measure the roof and calculate how many panels would be required, or to measure irradiance to determine how it would affect solar production and where best to place panels. What’s more, it was difficult to communicate to the client what the building would look like once the solar panels were added. With a building as high-profile as the Penguin Parade Visitors Centre, aesthetics were an important issue. “It was an interesting project because of the Centre’s global recognition,” says McCarthy. In addition, without a physical building, it wasn’t easy to calculate how nearby trees or other buildings would shade the roof throughout the year. In the case of the visitor center, the challenge was more difficult than most new construction solar projects. A Unique Roof for an Internationally Recognized Visitor Center “The roof almost looks like shards of glass cut in different angles; it’s spectacular,” says McCarthy. “The building has lots of innovation and design and has won sustainability awards.” Viewed from above, the building’s shape is similar to an unwieldy star, with many different roof points and angles. “Due to the architecture of the building, it was a very complex roof to work with,” McCarthy says. At first, McCarthy and his associates tried adding solar panels to the architectural plans. “It didn’t look good,” he says. It was back to the drawing board. McCarthy needed a tool that would communicate to the potential client exactly how the building would look with solar panels. Finding a Solution to Design Solar for New Construction: Aurora Solar Software Next, Gippsland Solar turned to Aurora Solar’s solar software and tried the design again. “We took the electronic version of the building plans and uploaded them into Aurora,” he explains. They took the measurement of the longest section of the roof from the architectural plans, then manually entered that measurement into Aurora program. The software is smart enough to take that information and calculate the rest of the dimensions of the roof, McCarthy explains. In fact, from that information, Aurora’s SmartRoof technology created a 3-D model of the roof. Next, based on the information in the roof plans, McCarthy and associates increased the roof pitch to 11 degrees. “That was the pitch of the roof,” he explains. “We didn’t see any financial benefit in using tilt frames to adjust the pitch, and the architects were very clear that they didn’t want the solar array to have a visual impact on the building itself,” he says. What happened next surprised them. In the model, it looked like the building was being built. “I had never seen anything like that,” he says. “It almost looked like paper mache. In the model you see the building rise up.” The model allowed for a 360-degree view of the building. It took about half an hour to build the model using the software, McCarthy says. He’s sure that using the program helped his company get the job. A top-down view of Gippsland Solar’s PV design for the Penguin Parade Visitor Centre in Australia. Photo Credit: Kane Construction, courtesy of Gippsland Solar. New Buildings Pose Challenges, Opportunities for Solar Designing solar for new buildings like the Penguin Parade Visitors Centre poses challenges, and more and more solar companies are grappling with this challenge. But it’s not necessarily bad news. Because states and cities are calling for solar panels in new construction, the market for solar is increasing. For example, beginning in 2020, California mandates solar panels on all new homes under the state building code. As a result, solar demand is expected to jump by more than 800 MW between 2020 and 2023. Under the new California solar mandate, builders must either build homes with solar panels, or build a shared solar power system that provides solar energy to a group of homes. Additionally, cities all over the U.S. are calling for solar on new buildings. Watertown, Massachusetts now requires solar on new commercial buildings larger than 10,000 square feet and on all new residential buildings with ten or more units. With the market increasing for new construction solar, it’s a good idea to have a tool that speeds up the process. 3 Simple Steps to Designing Solar for New Construction (Buildings Not Yet Built) 1. Begin by Uploading Roof Plans When designing a solar installation for a new (not yet constructed) building using Aurora software, the most important step is to upload the roof plans. With that as your starting point, outline the perimeter of the roof—just as you would draw over a satellite or aerial image when using Aurora to design solar for an existing building. You’ll need to include a measure for at least one section of the roof as indicated in the plans. This data allows Aurora to correctly scale the 3D model and ensure accurate measurements for the remaining sections. It’s also important to indicate the pitch of different roof planes according to the architects’ plans, since there will not be 3D LIDAR data for Aurora to match the roof to if the building is not yet constructed. From there, Aurora’s SmartRoof technology will extrapolate the 3D structure of the rest of the building. If your designers need to make tweaks the building model, the program will respond by re-calculating and re-modeling, McCarthy explains. 2. Simulate Shading During Different Times of Day, Year Another important feature of the Aurora software is the Sun Path simulation, which can do an interactive shade simulation. “When you play the simulation, you can see how certain parts of the roof will be shaded during certain times of day and can play with the design and move panels to less shady areas,” McCarthy explains. With a colorful irradiance map, the software will tell you how much irradiance will reach the panels at any given point on the roof. Adding trees to see how they will shade the roof of new buildings is also important, he says. By creating multiple versions of your design with different tree heights you can virtually “grow” young trees to see how they will shade the roof as they mature. How Will Other Buildings Affect Shading? Along with modeling the effect of trees, designers should simulate how nearby buildings affect shading, McCarthy says. For example, in another new construction solar project, Gippsland Solar added solar to a school that was built in two stages. To do this, the company used Aurora to model the second section of the building and see how it would affect the first section—and vice versa. Company designers did all the modeling before designing the first building. “We ran a shade analysis of both the old and new buildings,” he says. 3. Close the Sale with Stunning Visuals Such modeling saves time, impresses clients, and also saves money, says McCarthy. It makes sense to avoid trying to overlay solar panels on architectural designs--and to choose instead design software. “Aurora is a fraction of the cost of 3-D simulations with architects’ software,” he says. “People need to build this into their sales pitches. It helped us get the job.” As the market for solar on new construction grows, so too will the need for scalable, accurate solutions for designing solar for buildings that have not yet been built if your company wants to tap into this market. ### SEIA's 10-Year Roadmap for U.S. Solar: What You Need to Know This past week, the Aurora team had the pleasure of exhibiting at Solar Power International (SPI), which brought more than 19,000 professionals to Salt Lake City—making it the largest energy event in North America! SPI provided a powerful platform for companies (including Aurora) to showcase their latest innovations and for the industry to collaborate on important issues and unite around a common vision. Beyond individual company achievements, perhaps the most pivotal outcome of SPI 2019 was the announcement of a new 10-year strategic plan from the Solar Energy Industries Association (SEIA). Although the solar industry has grown by leaps and bounds, achieving exponential growth in installed capacity and formidable reductions in costs, today solar energy still makes up only 2.4% of the total U.S. electricity mix. Looking toward the future, SEIA has set the ambitious goal of making solar account for 20 percent of all U.S. electricity generation by 2030. Ambitious, yet achievable. SEIA’s new roadmap—The Solar+ Decade: Roadmap for Building the Solar+ Economy—lays out an action plan for how this target can be reached, highlighting four pillars for achieving the radical market transformation that will be necessary. In today’s article, we dig into the action plan SEIA has articulated for the U.S. solar industry to reach 20% of electricity by 2030, what will be involved, and what all of this means for your solar company. Why Does This Matter? To start, what are the implications of realizing this 10-year industry strategy? As SEIA President and CEO Abby Hopper explains, “If we achieve 20 percent solar by 2030, the potential payoff to our economy would be enormous.” “Picture this: solar could add more than $345 billion to the U.S. economy over the next ten years, reaching $53 billion annually. The solar workforce would grow to 600,000 professionals and Americans would enjoy greater energy choice, lower utility bills, and cleaner air. Moreover, our success could prove that climate solutions don’t hurt the economy, but instead, are some of the strongest economic growth engines we’ve seen in decades.” Clearly, achieving this target would transform not only our industry, but would bring about considerable positive benefits for the U.S. economy and the world. Yet there are many challenges that will need to be overcome to make this vision a reality. As SEIA worked to develop its plan for achieving these goals, Hopper testified before the House Science Committee Subcommittee on Energy. She notes that she “felt it was important to share industry pain points with the subcommittee—like permitting and interconnection, workforce diversity and preparedness, grid modernization and resilience, advanced manufacturing, and energy storage integration—and begin advocating for a stronger solar future today.” Addressing these pain points will be critical to success. Annual solar installations required (GWh) for solar energy to reach 20% of U.S. electricity generation by 2030, according to SEIA’s 10-year roadmap, The Solar+ Decade: Roadmap for Building the Solar+ Economy. How Will Solar Reach 20% of Generation by 2030? SEIA’s roadmap is built around four pillars. These are: aggressive collaboration, capitalizing on market accelerators, using market levers and policy drivers, and responsibly managing our growth as an industry. Let’s take a closer look at each. 1. Collaborating Aggressively SEIA emphasizes that for solar to supply 20% of our country’s electricity, our work can’t be done alone. That means within our industry diverse sectors need to work together, and we must be united in our messages to build public and political support. It also means reaching beyond the boundaries of our own industry to collaborate with other stakeholders and renewable energy sectors. That includes working “closely with the wind and storage industries and related technologies to create a comprehensive renewable mindset in this country,” as well as other stakeholders like utilities, climate advocates, corporate buyers, and federal and governments. (See page 9 of the full roadmap for specific action items SEIA has identified related to collaboration.) 2. Capturing the Benefits of Market Accelerators SEIA identifies “a number of market accelerators that can increase solar energy adoption.” Specifically, it identifies energy storage, carbon reduction goals, and electrification as key levers for enabling this level of solar growth. Storage will make it easier to incorporate high levels of solar energy on the grid, help customers manage moves to time of use rates, and the two technologies create new business opportunities for each other. Climate policies, and related moves to electrify much of our energy use—from homes to vehicles, will create significant market opportunities for solar. We are already seeing the benefits of these kinds of policies at the state and local level, such as California’s (and other state and local) commitment to sourcing 100% of electricity from clean energy, and its mandate of solar on all new homes starting next year. (See pages 10-12 of the full roadmap for specific action items SEIA has identified related to these market accelerators.) 3. Using Market Levers and Policy Drivers A third and critical pillar of SEIA’s roadmap is the use of market levers and policy drivers. As the roadmap asserts, “The 20% goal is not achievable under business-as-usual growth projections. To put the industry on a path to deeper levels of penetration, we must drive down costs, develop new financing mechanisms, and build stronger federal and state policy.” The roadmap identifies several specific areas of focus including climate policy, extension of the Investment Tax Credit—which is slated to begin stepping down at the end of this year, state net energy metering policies, building codes, renewable portfolio standards, regional energy market rules, and access to financing. It also highlights opportunities to further reduce costs, such as by streamlining permitting costs. (See pages 14, 15, 17, and 19 of the full roadmap for specific action items SEIA has identified related to these market levers and policy drivers.) Estimated U.S. Solar Generation (GWh) Across Policy Scenarios & Targets, according to SEIA’s 10-year roadmap, The Solar+ Decade: Roadmap for Building the Solar+ Economy. 4. Managing Growth The final pillar of this 10-year roadmap deals with how the industry will manage this unprecedented level of growth in a responsible way. “Whether it is gaining a social license to operate by being good stewards of the land, proactively addressing recycling, modernizing the grid to allow for more solar deployment, protecting customers, or ensuring a diverse customer base and workforce, we have to show that we are growing in a responsible way,” asserts SEIA. In addition to environmental responsibility on issues like recycling and land use, a key focus in this area is ensuring that the diversity of the industry reflects the diversity of the nation - both in terms of our employees and customers, as Hopper and other panelists discussed in the Opening Session at SPI. (See pages 20 - 27 of the full roadmap for specific action items SEIA has identified related to managing growth.) Estimates for solar industry workforce by year on its path to 20% by 2030, according to SEIA’s 10-year roadmap, The Solar+ Decade: Roadmap for Building the Solar+ Economy. What Does This Mean for You? This roadmap gives members of the U.S. solar industry transparency into the priorities of its national trade association, including what SEIA will be advocating for on your behalf with federal and local governments. The report includes specific action items and priorities for the short-term, mid-term, and long-term. In the short-term, over the next two years, priorities include the extension of the Solar Investment Tax Credit (ITC). At SPI, SEIA presented estimates that a 10-year extension of the ITC would lead to $87 billion in new private sector investment and an additional 113,000 American jobs over baseline estimates by 2030. Other priorities include reducing trade barriers, increasing state-level coordination, and strengthening its technical capacity to engage in regulatory proceedings. Over the next three to five years, goals include achieving adoption of its SolarAPP program to reduce permitting complexity, building a national PV Recycling Network, increasing diversity in the industry, and positioning solar + storage as the best, cheapest and most capable generation resource in state and utility resource planning (among other goals). SEIA sets other ambitious goals for the final five years of this ten-year plan. We encourage you to check out the full roadmap for all of the details and think about how you can get involved! As Abby Hopper explains, “If the solar industry fails to meet our ambitious goals for U.S. electricity generation, it will be because we fail in the next couple of years lay the necessary groundwork. While it won’t be easy, it’s up to us to shape our future and create a new story for solar in the United States.” ### How to Pay for Commercial Solar: A Financing Guide for Contractors Financing options for solar projects can be complicated, and that is particularly true for commercial and industrial (C&I) solar projects. Yet understanding the available financing tools is essential for solar contractors operating in this space. After all, determining how to pay for a solar project of this size is a critical first step to getting the project off the ground. In this article, Part 4 of our Unlocking Commercial Solar series, we provide an introduction to some of the common commercial solar financing options—including considerations for determining which may make sense in different instances. While the complexity of these financing mechanisms means that a deep exploration of each is beyond the scope of this article, we’ll get you familiar with the basics and include links to other sources where you can learn more. (Looking for a more introductory overview of solar finance for both residential and commercial projects? Check out our  Solar Finance Primer!) We spoke with practitioners in the field to get real-world perspectives on these commercial solar financing mechanisms and what you should know about them. We talked with Dan Holloway, VP Origination & Acquisitions at Sustainable Capital Finance, a financier that provides commercial solar PPAs, and Conrad Chase, CEO of Point Load Power, an emerging cleantech company whose flagship technology, PV Booster rooftop solar trackers, is tailored to commercial and industrial building owners. Holloway is responsible for building and managing relationships with all of SCF’s Developer and EPC Partners. He previously worked at Cobalt Power, a large EPC in Mountain View, California, where he was involved in the origination, development, construction and financing of over 200 solar projects. Chase as well has worked with many commercial clients to help them navigate the commercial solar financing process. In the commercial solar sector, there are a variety of different ways that a project can be financed, but some of the most common are: solar power purchase agreements (PPAs), solar leases, energy services agreements, tax equity financing structures such as sale leasebacks and partnership flips, and cash or loan purchases of the system. Let’s take a closer look at each. We’ll start off with PPAs and leases, two of the most prevalent options for financing C&I solar projects. As we explain in our primer on solar financing options, under both PPAs and leases, the PV system is owned by a third-party financier—rather than the solar developer or the customer who will use the power it produces. The third-party owner will receive any tax incentives from the system, such as the 30% Federal Investment Tax Credit (ITC) and depreciation. They can pass those savings on to the customer in the rates they offer, making this a preferred option for customers with low or no tax liability (i.e. taxes owed)—such as nonprofits. However, in both leases and PPAs, the commercial customer may be given the option to buy the PV system at certain points during or at the end of the contract. PPAs Under the terms of a PPA, the solar customer agrees to purchase the power the solar energy that is produced by the PV system from the system owner at a certain price over a set number of years. The term length of a PPA typically ranges from 10 to 25 years. A solar power purchase agreement or PPA has historically been one of the dominant ways that commercial solar projects are financed. Holloway notes that, in the commercial and industrial sector, PPAs are “still the primary funding source that I'm aware of.” And as noted above, the ability for customers without high tax bills to indirectly benefit from another entity taking tax incentives on their behalf is also a big contributor to the popularity of PPAs. “Nonprofits, and other organizations that do not have the ability to take advantage of the Investment Tax Credit—think schools, municipalities, churches, and charities like Boys and Girls Clubs—is in a position where there's no other way that they can take advantage of the ITC; they need someone to do that on their behalf. And [one of] the only financing vehicle[s] they can use to do that would be a PPA.” PPAs are popular for other reasons as well. One is that they can be structured so that there is no upfront payment (no money down) required from the customer. Additionally, the long-term nature of some PPAs (e.g. 25 years) can allow for lower payments. PPAs may also be structured with an escalator—meaning that the price the customer pays for the energy they purchase will increase at a certain rate over time. For customers looking to maximize their savings at the outset, escalators provide a mechanism for lower costs at the start of the contract. PPA Considerations If there is an escalator in the agreement, customers should look closely to see how the rate of increase compares to historic rate increases from their utility. While no one can read the future and know exactly how a utility’s rates will increase, it’s important that the escalator is based on reasonable assumptions of future utility rate increases. This minimizes the risk that the customer someday ends up paying more for solar energy than they would have buying power from the grid. (You can also learn more about our partnership with SCF in this blog post.) Leases Leases are another common way of financing commercial solar properties, and they share a number of similarities with PPAs. As with PPAs, the PV system is owned by a third-party financier and the deal can be structured so that there is no upfront payment. However, instead of purchasing the actual power produced by the system at a per-kWh price as would be the case in a PPA, under a lease the customer pays a fixed rate over a set number of years. While this fixed rate is based on the estimated production of the system and it’s assumed value, the cost that the customer pays is not directly tied to system production. Whereas under a PPA, the customer’s solar bill will fluctuate seasonally with lower charges when the system produces less, a customer will a solar lease knows that their payments will always be the same. On the one hand, this provides consistency and the ability to plan costs; on the other, if production is lower than anticipated for reasons other than a problem with the system—for instance, during an unusually rainy year—the customers bill will not be proportionally reduced. Similarly, due to the fixed nature of lease payments, leases do not include escalators as many PPAs do. Types of Leases: Operating vs. Capital Leases There are two types of solar leases, with different accounting implications for companies: capital leases and operating leases. While an exploration of the full accounting implications of operating versus capital leases is beyond the scope of this article, a primary difference between the two is that operating leases are not held on the balance sheet of the company, while capital leases are. As Holloway explains, “Most companies primarily use operating leases in the [C&I solar] space, as capital leases end up on your balance sheet. Most companies prefer to keep as much of their financing off balance sheet as possible for the simple reason that it decreases the amount that they can borrow.” In essence, an operating lease acts more like renting equipment, whereas a capital lease acts more like a loan and includes some of the benefits and risks of ownership. Lease Term Length The length of a solar lease can vary widely, from as few as seven years to as many as 25. However, commercial solar leases are often shorter than commercial solar PPAs. “While it's possible to offer longer term Operating Leases, this is not currently the industry norm,” says Holloway. “In my experience, the vast majority of operating leases still fall into the 7-10 year term length category.” The length of the lease will impact how much the customer pays. As Holloway explains, “If you only have seven or 10 years to amortize those payments, those payments are going to be considerably higher” than a longer-term agreement. Energy Service Agreements Another type of commercial solar financing that is similar to an operating lease is an Energy Service Agreement. As the American Council for an Energy Efficient Economy explains, “Under an ESA, a service provider delivers energy-saving services using equipment it owns and operates.” Like an operating lease, this is a type of off-balance sheet financing, making it popular with businesses. While legally distinct from leases, in practice, ESAs are similar to operating leases in that the customer pays a fixed rate for the “service” of solar energy (though ESAs can also be used to finance a variety of other building energy upgrades). In many cases, the ESA provider guarantees a certain level of energy savings. Chase explains that many companies—especially ones with multiple sites or portfolios of properties—“often use energy service agreements as a no-risk way to finance a number of energy improvements, and essentially receive a guarantee of savings.” Tax Equity Project Financing: Sale Leasebacks and Partnership Flips As you can probably tell from our coverage of leases and PPAs above, the “tax equity” of a solar project—or the ability to reduce taxes owed by taking advantage of certain policy incentives like the ITC—is a valuable commodity for entities with high enough tax bills to make use of it. While tax equity is important in many types of solar financing like PPAs and leases, there are other types of financing agreements that have been developed specifically for the purpose of allowing certain groups with high tax bills (tax equity investors) to utilize the tax equity of a project in exchange for investment. These tax equity deals are a special category of solar project finance. They include partnership flips and sale leasebacks, among other structures. While these arrangements are too complex to cover fully in this article, we’ll provide a brief introduction to them and the basics of how they work. Partnership Flips In a partnership flip, a deal is structured so that the tax equity investor receives the majority (e.g. 99%) of income allocation of the project for a certain duration of time—specifically until the ITC recapture period has elapsed.. Following that point, the contract specifies that their allocation “flips” such that they can be bought out, or stay in the partnership while being allocated a minority (e.g. 1%) of the project’s income & cash allocations, with the majority then being allocated to the project sponsor. As Holloway explains, “The tax equity partner’s goal is to monetize virtually all of the tax benefits. Their goal is not to own the asset for the long term... [just to] be a partner in the deal until the benefits of the tax equity—the ITC, depreciation, etc.—have been monetized.” “At that point the tax equity partner “flips” out of the deal; they go from being [for example] a 99% income allocation partner to 1%. Then the sponsor has a 99% allocation, and they are in it for the long haul.” A partnership flip is one of the most common forms of tax equity financing in solar. Sale Leasebacks In a sale leaseback, the tax equity investor purchases the PV system from the project sponsor. They then lease the system back to the project sponsor who retains the right to use and operate the system and receive revenue through its operation. The sponsor has the option to purchase the system at some point. Transaction Costs Impact the Use of These Financing Options Solar project finance deals like these bring together several parties with different interests and goals in a project. Negotiating legal terms that are acceptable to all can be costly. As Chase explains, “because there are so many parties involved, there are high transaction costs to securing this type of finance.” These high costs typically mean that such deals only make sense for large projects above a certain value. In addition to the large commercial sector, these types of finance structures are well established in utility scale; however, they are impractical for many smaller commercial projects. Debt Financing (Loans) In addition to the variety of financing options discussed above, in which ownership of the PV system is held by someone other than the user of the solar energy (at least for a period of time), a commercial solar customer can choose to purchase their PV system—outright (cash) or through a loan. In these cases, the tax benefits go to the customer. Since cash deals are straightforward, we’ll restrict our discussion to loans. Solar loans are similar in many ways to other types of loans that you may be familiar with in your daily life. Types of Debt Financing There are multiple types of loans, including secured loans, which are “secured” by the lessee’s assets, and unsecured loans, which are not. For customers comfortable using their assets—like their real estate property—as collateral, secured loans can enable customers to get a better rate or to get a loan that they might not otherwise qualify for. To do that, the customer must own their building. Additionally, another form of debt financing that has emerged in some areas is Property Assessed Clean Energy (PACE) financing. In PACE financing, the loan for the solar installation (or other property improvements, like energy efficiency upgrades) are repaid in the property taxes of the project site. PACE is only available in areas that have enabling legislation, but can be another good option of financing solar—particularly since in some cases the loan can be repaid over as many as 30 years. Debt Financing Considerations A key limitation when comes to solar loans is whether the project owner (commercial customer) has strong enough credit to get a rate that makes this option financially feasible—or to get a loan at all. For large companies this may be straightforward, but for others, especially small businesses, it can be a challenge. Chase explains why asset-backed lending can be a good option for some customers. “Say your commercial solar customer is a building owner—a family business that's been around for 20 years and they don't have investment grade credit. They still may qualify for a loan, but they may have to have a very high interest rate. Ultimately, they may determine it's not worth it, depending on how much they're saving.” “The benefit of PACE or a real estate loan is that their credit rating is not an issue because the loan is backed by the actual asset value of the property. That directly opens up project financing for solar and other energy upgrades to a whole group of customers that didn't have access before.” Of course, whether this option is a fit depends on the goals of the commercial property owner. For instance, the lower borrowing rates of a real estate-backed loan may be appealing companies that plan to own the project site for the long-term—particularly if the solar project increases the value of their property. However, it would make less sense for a customer interested in selling their property. As you can likely tell, commercial solar finance can be complex! In this article we’ve only scratched the surface of the details of each of these common solar financing methods: solar PPAs, solar leases, energy service agreements, tax equity financing structures including but not limited to sale leasebacks and partnership flips, and debt financing. Depending on the role your solar company takes in C&I solar projects, you don’t need to be an expert in these kinds of solar financing mechanisms. However, it is important to understand the diverse financing options available and their implications. This will let you guide your commercial customer in understanding what options may be available to them and what questions they may want to ask. Determining how to pay for the system is a critical first step to closing the sale, so the more you can do to help your commercial customer navigate this (sometimes daunting) process, the more likely you’ll be able win commercial solar business. ### How Community Choice Aggregation (CCA) Growth Can Boost Solar Community Choice Aggregation (CCA) can create demand for renewable energy, presenting opportunities for solar developers. We explore what CCAs are, how they’re growing, and what that might mean for solar companies. What Are CCAs and How Does Solar Fit In? Community Choice Aggregation (CCA), also called Community Choice Energy, provides customers with an alternative power provider than traditional utilities. The presence of CCAs is growing, especially in California, and—because they often offer more renewable energy than the incumbent utility, according to a National Renewable Energy Laboratory (NREL) report—CCAs present opportunities for solar developers to help provide that power. How Do CCAs Work? Generally administered by local governments—cities or counties—or sometimes third parties, CCAs acquire electricity for retail customers in a specific geographic area. CCAs partner with local investor-owned utilities that provide billing, transmission, and distribution of the electricity the CCA provides. They can aggregate fairly large groups of customers, which provides economies of scale. Scale (and Potential) of the CCA Market About 750 CCAs acquired 42 million MWh of electricity for 5 million customers in 2017 in eight states where legislation allows for their existence—California, Illinois, Massachusetts, New Jersey, New York, Ohio, Rhode Island, and Virginia, said the NREL report. Additional states are expected to pass legislation that allows for CAAs, according to NREL. In addition to the eight states that have CCAs, at least seven states have considered allowing CCAs—Colorado, Connecticut, New Hampshire, New Mexico, Nevada, Oregon, and Utah, said NREL. Other states with restructured electricity markets could pass legislation allowing for CCAs. California and New York CCAs Focus on Renewable Energy California and New York are two states where CCAs currently source a lot of their energy from renewable sources. California CCAs concentrate on acquiring in-state renewable energy more than other CCAs. In California, CCAs in 2017 offered electricity with renewable energy content ranging from 37 percent to 100 percent, with an average of 52 percent. Their rates are generally .1 percent to 2.1 percent lower than the incumbent utility’s rates. In New York, about half the sales of the active CCAs are “voluntary” green power programs, which go above and beyond state renewable energy mandates. In these cases, the CCA offers green power to willing customers. CCAs Present Opportunities for New Solar Development Although, as of 2017, CCAs had largely acquired renewable energy from existing generators, that’s beginning to change as CCAs grow in numbers and size, presenting new business opportunities for solar developers. One recent example is a 3-MW solar array in Napa County, California which solar developer Renewable Properties broke ground on in April 2019. The state’s first CCA, Marin Clean Energy (MCE), will purchase the power from the project through a 20-year power purchase contract. MCE’s feed-in tariff, called FIT Plus Projects, offers $80 per MWh for peak, baseload, and intermittent energy. NREL’s report highlights the potential for CCAs to increase the supply of renewable energy from new projects. In regulated or partially restructured markets, CCAs may be required to acquire renewable energy from new projects, NREL said, adding that more research is needed about this topic. Projects such a Renewable Properties’ solar plant are expected to become more common because CCAs generally have significantly higher percentages of renewable energy in their mix. With higher renewable energy content and typically lower prices, CCAs are here to stay. For solar developers, that offers opportunities to provide the energy that CCA customers are demanding from these new, green alternatives to utilities. ### 4 Ways for Solar Leads to Share the Utility Bill Data You Need Accurate information about how much electricity a prospective solar customer is using—and when—is essential to creating an accurate solar design and quote to close the sale. It’s also key to building the case for why solar can help them. But getting this data is often one of the first barriers you’ll confront in the solar sales process. To increase the likelihood of getting the data you need in a timely fashion, it’s good to give the customer a few different options for how they can provide their utility bill information. (It also helps to be familiar with the utility’s bill format and how energy usage data can be accessed—as we discuss here.) Elliot Goldstein encountered this challenge often in his time at a leading residential solar company where he managed an inside sales team that sold to 16 U.S. states. In the process, he learned a lot about how to efficiently get the utility bill data needed to create an accurate solar quote. We sat down with Goldstein, currently a member of the sales team here at Aurora, to learn some best practices for effectively overcoming this solar sales barrier. Whether you’re new to selling solar or looking to improve your process, we hope these recommendations help you work more efficiently when it comes to getting electricity usage data from your solar leads. Approaches for Obtaining Utility Bill Data from Solar Leads There are a number of different ways and formats to collect the utility bill data you need, depending on how tech-savvy the prospective customer is and what’s available from their utility company. In general, it’s better to get a copy (or picture) of the customer’s actual bill or bills when possible, as this will provide more information than just their total kilowatt hour consumption or bill amount in a recent month. It will also allow you to ensure the accuracy of the information. However, you’ll likely need to be flexible depending on what the customer is most comfortable with or can do easily. Here are a few options: 1. Download a Copy of the Bill from Their Utility Website One of the best options for getting the customer’s electricity usage data is to have them login to their utility account online, download their electricity bill, and email it to you. You quickly get the information you need in a convenient format, and the customer may be more easily able to provide multiple months of utility data since all of their bills can be found in their account. This is a great option for customers that are relatively tech-savvy and already manage their utility accounts online. You’ll want to be prepared to walk the customer through this process if they would find it helpful. As we discussed in a previous article, for this reason it’s important to be familiar with the utility company’s website and where to find the information you need. Goldstein cautions that forgotten passwords are a common barrier to this approach. “Small things, like having a process in place so you’re prepared to walk them through resetting their password, can help streamline the process.” 2. Download Interval Data (If the Utility Offers It) Another option for customers that are comfortable accessing their utility account online, is to walk them through the process of downloading interval data if their utility company offers it. Interval data, which indicates how much electricity the customer used in different (usually 1-hour or 15-minute) intervals throughout each day in the month. It is typically offered in XML or CSV format.  For contractors that use UtilityAPI, a service that provides a fast way of requesting customer utility bills interval data, you can download the resulting data and easily upload it into your Aurora solar design software. For solar contractors that use solar software that accepts interval data, this offers advantages for solar design compared to just getting copies of past bills. You’ll be better able to understand the customer’s load profile, which is particularly important for customers in areas with time of use rates. With this data, you may be able to design a better solar installation for their needs. Again, as discussed in our previous article on this topic, you’ll need to be familiar enough with the utility company to know if this is something they offer, as well as where and how this data can be accessed. 3) Take a Picture or Make a Copy Another great option is to have the prospect take a picture or their electricity bill and send it to you. This can be particularly good if they are less tech-savvy or having trouble remembering their login to their online account, but have a paper copy of their bill on hand. Scanning or copying it also works, depending on what’s easiest for the individual. As Goldstein explains, “If you can have them take a picture of the bill with their smartphone and text or email it to you, that's often a good practice if they’re not as comfortable going on the website.” You’ll want to ensure that they send pictures of all pages of the bill to make sure you’re not missing important information. And again, if you can get pictures of multiple months’ bills, that’s even better. 4) Authorize the Utility to Share Information Directly Finally, in some cases, it’s possible to get the information you need for a great solar design directly from the customer’s utility. Where available, this is an excellent option since it doesn’t involve much time on the part of the customer. Plus, you can be confident you’re getting the right information since you’re getting it straight from the utility. Typically, the customer will have to authorize the company to share that data on their behalf so you should be prepared to walk them through that process, which may involve submitting a form. Your company may also need to register with the utility as an authorized third party that can access this information. If the utility company has one, you may be able to call a solar hotline to get their monthly kilowatt hours. Alternatively, some utility companies will share interval data (how much energy the customer used at specific, e.g. 1-hour, intervals throughout the billing period). This can be incredibly valuable in building an accurate load profile for the customer. You may also be able to access it through other third party companies that specialize in making this kind of data accessible. PG&E in California allows customers to release their electricity usage data to third parties, which can be very useful for solar contractors.  Build Efficient Processes to Get Utility Data Early Whatever method the customer finds most convenient for sharing their data, it’s a good idea for your solar company to put in place processes to facilitate getting this information early so it can be taken into account in the solar quote you provide. Exactly what that looks like will depend on your company’s structure and workflow. This might involve the salesperson making a pre-qualification call to confirm the interest of a particular lead and get electricity bill data as a first step before a formal consultation. Or, if your company has a dedicated role that helps qualify solar leads or book appointments, that person might take the lead on getting bill information at that stage. Does your company also offer other services, like roofing, energy efficiency, or HVAC? If a customer expresses interest in getting solar in the course of getting other services, perhaps it makes sense to coach those team members to ask for the electricity bill at that point, so you can streamline the follow up process. Electricity usage and utility bill data is a crucial first step to giving a solar lead an accurate solar quote and an appropriate solar design. While getting this information is a common initial barrier in the solar sales process, giving your prospect convenient options and putting in place an efficient process can help considerably. Following up quickly is crucial in closing solar sales so find the strategy that works best for them and you! Has your company found other ways to efficiently get prospective customers bill data? Share your tips and tricks in the comments below! ### What Solar Contractors Should Know About Customers’ Utility Bills Utility bill information is a prerequisite for building an accurate solar design and quote for a prospective customer. If at all possible, you want to have this information before you meet with the customer so that you can have an accurate and compelling proposal and be able to sell more effectively. As a solar contractor, you’ll likely need to walk the customer through the information they need to provide, so it’s important that you’re well versed in the data available from the customer’s electric utility company. That includes knowing what the company’s bills look like and how to read them, how to navigate the utility’s website to access billing information, and what types of utility rates the company offers. This will help avoid getting inaccurate numbers or having to go back to the customer for additional information because you didn’t get what you needed the first time. In today’s article, we explore some key things to make sure you know about the customer’s utility bill and the practices of their utility company to ensure you’re getting the bill data you need. In a subsequent article, we highlight different options and formats for getting customers’ utility bill data—since getting that information is a common initial barrier in the solar sales process. Where Can You Find the Customer’s Total Monthly kWh Usage? Once you get your prospective solar customers’ electricity bill, you need to know what you're looking at. A critical piece of data you’ll be looking for is how many kilowatt hours the customer used in a given month and where this data is located on the bill. This is key because it will enable you to appropriately size the PV system for the customer’s needs and accurately estimate how much the customer will save with your solar design. Often finding the total kilowatt hour consumption is straightforward, but other times it may require a little more work. Aurora Solar team member Elliot Goldstein encountered this firsthand in his prior role as Sales Team Lead for a leading residential solar company that sold to 16 U.S. He explains, “Some utilities give you a 30 day historical average. You’ll then need to multiply that to get a monthly total. Others, like LADWP, give you the total kilowatt hour usage for every two months. So you literally need to divide in two. It really depends on the utility; you need to be familiar with the billing practices of the customer’s specific utility to avoid being tripped up by these kinds of nuances.” Does the Electricity Bill Include Historical Data? If So, Where? Many, though not all, electricity bills include historical data showing how much electricity the customer has used in past months throughout the year. This is highly valuable data as it allows you to more accurately model the customer’s energy consumption. If your customer’s utility doesn’t include historical data, you may want to consider asking for their energy usage in more than one month. Software like Aurora, which accepts a variety of utility data formats and offers tools for estimating energy consumption in months you don’t have data for, can make your work easier. But like all modeling tools, the data you enter must be accurate in order to get accurate results. And the more months of data you can include, the more finely tuned your results will be.   It would be easy to overlook the historical electricity usage data (circled) on this sample bill from National Grid in Massachusetts. Being well versed with where to find what you need on the customer’s bill will help you get them the most accurate solar proposal. Is the Bill Only for Electricity or Are Other Utilities Included? Another key thing to know is whether the utility company that serves this particular customer only provides them with electricity or whether they provide other services like gas, water, and sewer. If those services are listed on the same utility bill, that’s important to know and be able to point out to your customer to ensure you’re getting accurate information. Many people don’t pay much attention to the specifics of their utility bill. If, for instance, they gave you their total charges for the month but that amount also included natural gas charges, your estimations of their electricity consumption and the size of PV system they need could be very off. This is also a reason why it’s better to get a copy (or picture) of the customer’s actual bill, where possible, as it allows you to verify the accuracy of the information they’re providing. An example utility bill from Fort Collins Utilities that includes both electricity and water charges. What Types of Rates Does the Utility Commonly Offer? Is the Customer on a Tiered or Time of Use Rate? Another thing that can trip you up if you’re new to the industry is atypical electricity rates like tiered rates, which charge different prices for energy depending on how much the customer has used, or time of use rates, which charge different rates per kWh depending on the time of day it is used. If you were to assume that they paid the same price for every kWh and attempt to work backwards from their bill cost when they are actually on one of these variable price plans you’d wind up with inaccurate energy consumption data. Again, getting the actual electricity bill from the customer, rather than just a total number is helpful. If that’s not forthcoming, you’ll want to at least get confirmation of what rate plan they are on to avoid any incorrect assumptions. An example electricity bill from Sacramento Municipal Utility (SMUD) for a customer on a time of use rate (indicated in sections 4 and 6). Be Familiar with Downloading Usage and Bill Information from the Utility Website In addition to understanding what information can be found on the bills of the particular utility company and what types of rates are common, you’ll want to be familiar with how to navigate the website to download one’s bill and energy consumption data. You’ll want to know how things look from the customer’s end and how they can view their account so that you can walk them through downloading the necessary information if needed. Does the Utility Have a Solar Hotline? Can the Customer Authorize Third Parties to Access Their Energy Usage Data? Another good thing to know is whether the utility has a solar or renewable energy hotline or whether it has an option that allows the customer to authorize them to release electricity usage data to you or another third-party entity directly. Some utilities—like PG&E in California, or Alliant Energy in Iowa and Wisconsin—provide phone numbers that can be called to access historical energy consumption data for a customer. “For example,” says Goldstein, “PG&E has a specific solar hotline. You can call this number with the account number of your homeowner and the line will read off their kilowatt hour usage over the last year.” Alliant Energy provides a hotline for electricity usage data of solar customers and an option for customers to authorize the release of their data. Similarly, a number of utilities allow customers to grant permission for the release of their data to you, or other parties, directly. This can be especially valuable as you may be able to get more detailed data about how much energy they use at specific intervals throughout the day (“interval data” often referred to as Green Button Data). Additionally, some companies, like Utility API, specialize in providing customer’s energy consumption data for utilities that support this kind of data release. An example of how customers of Southern California Edison can authorize the utility to release their data to third parties, such as solar contractors. This kind of direct access can make your life easier since you don’t need to wait on the customer to send you the data—though you will need them to grant you access. If you’re using a solar design software like Aurora that allows you to upload interval data, this will enable to you to get a much deeper understanding of the customer’s actual energy usage. This allows for the most accurate model of their pre- and post-solar utility bills. Understanding these nuances of your customer’s utility company, its website, bills, and billing practices is an essential first step to ensure you get the right data from the customer and can design an accurate and compelling solar proposal. It can be challenging to know all of these variations if your solar company covers a large area with many different utilities; in that case you may want to consider having different staff specialize in different utilities or have a designated person whose job it is to stay up to speed on this information. Of course, knowing what data you’re looking for and where the customer can find that information is just the first step. It’s also good to have processes in place to make it as easy as possible to get that information from the customer, including providing a few different options. In a subsequent article, we’ll highlight different ways customers can provide you with the energy consumption data you need. ### SF Commercial Clean Energy Requirement Is a Boon for Solar San Francisco—the first major city in the nation to require solar panels on the roofs of new buildings—now is requiring large commercial building owners to source 100 percent of their electricity from renewable energy by 2030. That’s expected to be good news for solar contractors because it will expand the use of solar in the city and possibly nationally. The San Francisco plan will be implemented in phases, requiring owners of the biggest buildings—500,000 square feet or larger—to take action first, by 2022. Buildings between 250,000 and 499,000 square feet must switch by 2024, and structures 50,000 square feet to 250,000 must source 100 percent renewable energy by 2030. Other Cities Expected to Follow, Increasing Solar Demand Nationally The solar industry nationwide is sure to get a boost from the initiative, said Tony Clifford, chief development officer, Standard Solar, and a member of the Solar Energy Industries Association (SEIA)’s executive board. “Such mandates are becoming ever-more common across the country, and we believe San Francisco will set the standard for commercial solar expansion that other cities will soon follow,” he said. Sean White, a certified solar PV master trainer and the author of several books about solar, said that in San Francisco, there isn’t enough roof space on most commercial buildings to offset 100 percent of their usage. “They will need to purchase clean electricity through their Community Choice Aggregation (CCA) program or utility for a good part of their energy,” he said. This will create opportunities for solar contractors to help meet the growing demand for solar in San Francisco, however. Much of the demand will be met with utility-scale projects, said White. Expect an uptick in projects from Pacific Gas and Electric Co.’s (PG&E) Solar Choice options, which are available to the large building owners. Under the program, part of a statewide initiative, investor-owned utilities must procure their renewable energy following guidelines from the California Public Utilities Commission. PG&E provides details on its website about how it sources renewable energy for the program. The city of San Francisco also gives businesses and residents the option of buying "SuperGreen" power. San Francisco Aims to be Carbon Neutral The initiative for large buildings is part of the city’s effort to use only renewable electricity by 2030 across the city and to become carbon neutral by 2050. About 44 percent of San Francisco’s greenhouse gas emissions are released by buildings, and about 50 percent come from commercial structures. While the transportation sector produces higher amounts of greenhouse gases, it’s expected that it will be easier to focus first on buildings, because owners can switch to their utility’s green power options. As Clifford says, with such efforts to reduce cities’ carbon footprints becoming more commonplace across the country, the solar industry is sure to benefit. “The opportunity for the solar community – from contractors to financiers – is immense and it is up to them to meet this challenge head-on to build and fund these new projects,” he said.   ### How to Sell Commercial Solar: 3 Strategies for Success There is a lot of complexity that comes with selling commercial and industrial (C&I) scale solar, including many factors that differentiate it from residential solar sales. Your commercial client’s motivations for considering solar differ from residential customers, as do the ways they evaluate your proposal and the processes by which they make their decisions. To understand some of the important factors in a successful C&I sales process, we spoke with professionals with extensive C&I solar sales experience, including Conrad Chase, CEO of Point Load Power, manufacturer of PV Booster rooftop solar trackers for commercial and industrial rooftops. We also spoke with Nico Johnson, host of SunCast, a podcast that shares the experiences of clean energy entrepreneurs, with over a decade of experience in the solar industry. In our conversations with Chase and Johnson, some essential elements of a successful commercial solar sales process emerged: asking the right questions during the sales process, understanding the landscape of other energy and building upgrades your commercial client may be considering and selecting the right tools and technologies (including the right proposal and design tools to close the sale). In this article, Part 3 in our Unlocking Commercial Solar series, we’ll delve into each of these topics and how to tackle them intelligently to improve your chances of closing the commercial sale. 1. Ask the Right Questions to Tailor Your Commercial Solar Sales Pitch One of the fundamental errors of commercial solar sales that came up in our conversations with both Chase and Johnson was the failure to ask the right questions. “Asking the right questions is so important in this category. And what we found over talking to hundreds of installers is that they’re flat out missing the mark,” said Chase. As Chase explained, asking the right questions is important because it lets you make the right proposal for your customer's needs. This can allow you to deliver a more compelling deal and increase your chances of winning the sale. Johnson also emphasized the importance of asking the right questions in allowing you to connect with the right decision-maker in the organization who can actually get the project approved. Let’s take a look at a few of the key questions you should be asking. Understand the Lease Structure and Owner-Occupant Relationship A fundamental category of questions that Chase highlighted relates to understanding the relationship between the building owner and tenants (if any). As discussed in our earlier articles in this series (Key Players in a Commercial Solar Project and Making Sense of Commercial Solar), one of the factors that makes commercial solar projects more complicated is that the owner of the building with the authority to approve a solar purchase is often not the occupant of the building who will benefit from lower utility bills. Questions about the lease structure and the relationship between the building owner and tenant (if any) allow you to understand these complexities at the outset. This can help you determine whether the prospect is worth pursuing and, if so, how to tailor your solar design and proposal appropriately. While there are many types of commercial projects and lease structures, Chase highlighted three common lease / building-tenant arrangements that Point Load Power often sees. From least to most complex, these are: owner-occupied buildings, buildings with a single tenant in a triple net lease (a type of lease in which the building owner provides the building as-is and the tenant is responsible for any building repairs, upgrades, utility costs, property taxes, etc.), and multi-tenant buildings (which may have different lease types including triple net or gross leases). Owner-occupied buildings make for the most straightforward commercial solar projects because the building occupant who benefits from energy savings and the owner who can make solar purchasing decisions are one and the same. Particularly if you’re just getting started it may make sense to focus your energy on projects that are less complex in terms of the lease and tenant situation. If the building has lease, some of the lease-related questions to ask include: What type of lease is in place and what is the tenant-owner relationship? Who's the tenant? Who is the owner? How long is the lease? How long is left in the lease? Who has responsibility for the roof? Understand the Financial Objectives and Considerations of the Parties Involved It is also essential to understand the financial objectives of the parties involved— particularly the building owner and the entity that will own the solar installation (in many cases these will be the same, though not if a third-party-owned financing option is selected). You’ll also want to understand the motivations of the tenant(s) if there are any. Chase highlighted the importance of understanding the objective of the building owner related to the ownership of the building. “For example, is this property going to be flipped and sold to some bigger company? Is the property owned by some individual that has a long term buy and hold strategy?” With regard to single-tenant buildings with a triple net lease, he noted that a significant financial consideration for building owners is how likely their tenant is to renew their lease and at what cost. “The building owner wants longer-term leases, with higher lease rents. And they want that to be as secure as possible, because the more secure that their income is for the building, the easier it is that they get bank financing.” Reduced utility bills through a commercial solar installation can be a significant motivator for the tenant to renew their lease and can be a means for the building owner to obtain higher rents. Additionally, the revenue from a solar installation may enable the building owner to offer incentives that increase the appeal of a lease for a new or renewing tenant. This scenario is exemplified in a large commercial project that Point Load Power developed for building owner Harry Ross Industries, whose prospective tenant, Chiquita Brands International, was enticed by utility bill savings solar would provide on their refrigerated warehouse. Meanwhile, you’ll also want to understand the considerations of the tenant(s) involved. As Chase explains, “It actually depends very much on the tenant, but in general, they're already in or signing up for a lease, they certainly don't want their power bill to go up. And some may have some requirements around, you know, flexibility up on the roof, you know, if they want to put something up there, like an HVAC unit or some other piece of gear, you know, there might be some actual structural consideration that they need to they need to be aware of.” Finally, you’ll also need to ask questions to understand the financial objectives of the entity that will own the solar installation. In particular, it can be helpful to understand the organization’s tax situation as this will influence whether they can benefit from tax credits for solar. “Knowing these nuances will shape how the installer makes their pitch and what types of things they pitch” says Chase. Find the Real Decision-maker Another essential element of asking the right questions is to ask questions to identify the individual or individuals who actually have the authority to sign off on a solar purchase. Unlike a residential sale which has fewer decision-makers involved, commercial solar projects involve many stakeholders and its up to the sales person to identify who has the authority to move the project forward. This is a common C&I sales pitfall according to Johnson. Often “[contractors] get their foot in the door, they've done a great job prospecting, they've got the tools, maybe they've got a good layout and energy analysis—but they're just plain talking to their own person.” In many cases, he says “the only person they've been able to get open the door is the facilities manager. Well, in very rare cases is the facilities manager actually making the decision. But if you recognize that the facilities manager is your champion, and you understand large account management, and your sales team trained right, then you’ll be able to get to the decision-makers—the board of directors or whoever is going to actually stroke the check—in an efficient process. Identify the economic versus the technical buyer.” Make sure you ask the questions necessary to understand find the real decision-maker. 2. Understand the “Ecosystem” of Other Energy and Building Upgrades Competing for the Same Budget Another important element of a successful C&I sales process according to Chase is to understand the variety of other options that are competing for the same part of your commercial client’s budget. He says that often solar contractors assume that their main competition is other solar proposals. In fact, there are many other energy and building upgrade options and technologies competing for the same dollars available for a solar purchase. These include things like energy-efficient windows, roof replacements, new HVAC units, and many other potential investments. In some cases, these investments may have shorter payback periods than solar. But pairing solar with these other upgrades may yield a more compelling proposal for the client—particularly if the other technologies are eligible for rebates or other incentives. It’s also crucial to understand that some of these investments may be things that the client needs to undertake to maintain their building. Chase gave the example of a university that Point Load Power worked with. The building in question needed a new roof, as well as to upgrade very old HVAC units that were at risk of breaking, as well as several other changes. By asking questions to understand the other building initiatives the client was undertaking, the team was able to learn that after the other improvements were done, the load profile of the building would be drastically different. Because of the improved energy efficiency of the building, its energy consumption would be drastically less. With this knowledge, the team proposed a smaller, 400kW PV system that better matched the actual future needs of their prospect, compared to megawatt-scale projects proposed by competitors. “In summary,” Chase explains, “understanding the ecosystem of solutions is critical because it allows installers to make the right proposal.” 3. Use the Right Tools and Technologies A final critical element of a successful commercial solar sales approach is to use the right tools and technologies. This includes both the technologies that you propose in your commercial solar project, as well as the design and proposal tools—particularly software—that you use. Both Chase and Johnson highlighted the importance of robust solar software tools to successfully closing a C&I deal. “The right proposal and design tools are critical,” says Chase. “Software that allows an installer to look at a bunch of different scenarios, factoring the other technologies that are in play and may result in a new load profile—to run those scenarios quickly, is important.” Johnson added, “I see a lot of folks that try to scale in the C&I not investing in the software upfront. And so they try to do the hard math, hoping that they'll do they'll close a deal that'll justify the software expense, rather than justifying the software expense because it'll help you close a hard deal.” Choosing the right technologies to include in your solar design is also essential in delivering the proposal that will be most compelling to the client. “In the story of the university, they did not want to put carport solar, because it was really expensive,” explains Chase. And because they were already replacing the roof, they were interested in adding rooftop solar at the same time. In that case, Point Load Power’s proposal of an efficient option that offered higher production with fewer modules appealed to the client’s desire to minimize the amount of equipment on their new roof. Commercial solar sales are complex. That’s particularly true if you’re new to the sector—for instance if you’re transitioning into commercial solar from residential. Bearing these best practices in mind—asking the right questions, understanding the landscape of competing technologies and building upgrades, and using the right tools and technologies—gives you a better chance of closing the deal. What else have you found to be critical to a successful commercial solar sales process? Let us know in the comments below! ### How to Optimize Your Solar Designs for New Net Metering Rules If you’re a solar salesperson or contractor in the U.S., you know that net energy metering (NEM) policies—which traditionally pay solar system owners the retail electricity rate for the solar energy they produce—play a key role in providing a strong return on a solar investment. But you may also have observed the trend of utilities around the country, modifying and scaling back their net metering rules. We took a close look at this a phenomenon in our recent white paper, Analysis of U.S. Net Metering Policy Changes in the United States, so we could tell you the impact of specific policy changes and how to adapt to them. In our previous article, we shared our findings on how some of these common net metering changes impact solar customers’ solar savings and utility bills. This follow-up blog post provides a quick visual summary of how those rules result in new design rules of thumb to maximize your customers’ solar savings. (In our white paper we provide more detailed recommendations for maximizing NPV under specific utility's policies.) Designing Around Export Rules NEM rules that reduce the value of exported solar energy will impact all customers who export energy to the grid. One bright side is that customers who self-consume all of the energy their PV system produces won’t be bothered by the change. Here’s a convenient way to look at the customer’s annual utility bill against their energy offset level, for a household with moderate energy consumption: The important points on this graph are where the chart “bottoms out”—this represents where a customer’s bill is comprised only of minimum or fixed charges. Adding more PV panels after this point won’t increase the customer’s solar savings any further. While some customers might see a small amount of cash credit from net surplus compensation, it doesn’t justify the additional cost to increase the system size. A second important takeaway is that the reduction in exported value—whether it be from a non-bypassable charge, fixed export rate, or percentage reduction—results in needing a larger system (read: greater energy offset) to reach that level. If we look at the Net Present Value of a PV system (essentially the equivalent cash value of all of the costs and savings for the project) it tends to get maximized at the point which the customer’s bill is minimized. Looking at the curves, it’s clear that these value-reduction rules reduce NPV; however, in many cases, they also move the peak of that curve further to the right: customers need a larger system to maximize their NPV. Installers could use this to try to upsize systems creating a win-win for both themselves and customers, but they should also be careful to not exceed sizing limitations of the customer’s utility. For example, NV Energy has a fairly strict 100% offset limit which puts the target 105% out of reach, but other areas do offer the option to go larger. Finding the Best Payback Period The payback period of the system is how long it takes for a customer to recoup their investment, in terms of nominal dollars. An interesting case with a tiered rate structure is that a partial-offset system, say around 50%, might offer the minimum payback period because it offsets the more expensive energy in higher price tiers. Adding on more PV after this point is still advantageous in terms of NPV, but it will increase the payback period by a few months to a year. However, in the case of utilities that have implemented a flat export rate for solar customers instead of pricing their exported energy based on their current usage tier, you lose this effect. There’s no longer an incentive to sit at the midpoint of energy offset to reduce payback time. Sizing Guidelines Under Disadvantageous Expiration Policies There are several states and utilities that have established expiration times for accrued solar energy credits that are disadvantageous for the solar customer. The seasonal nature of solar makes it so that a credit expiration cycle at the end of summer or early winter forces the homeowner to buy energy in the winter months without the option to offset these costs with credits from their prior solar energy production. We found that customers whose utilities do not allow them to carry net metering credits from one month to the next (or who only get wholesale avoided cost compensation) will start to lose credits if their system offset is greater than 70%. That might be a reasonable threshold to target when designing in regions that have this ruleset. For customers with a specified annual credit expiration cycle, the decision is a little more complex. Customers with an expiration month in June, July, and August will often see credit loss above a 75% offset threshold. If the cycle ends in April, May, September, or October the threshold is around 85%, and November, December, and January expirations might see losses at a threshold of 90%. February and March expiration months are almost equivalent to a utility policy where the credits aren’t reset every year. Finding the optimal solar design for your customer can be challenging and utility changes to net metering rules add additional complexity. However, having a solid grounding in these best practices can help. To see our full findings on this topic, including specific recommendations for how much of your customer’s energy consumption to offset in different utility regions, download the complete white paper. ### Changing the Game of Commercial Solar Finance—A New Partnership Commercial solar can be a lucrative sector for solar companies, but access to financing can be a significant challenge. Obtaining the necessary capital can be particularly difficult for certain classes of customers and projects—like nonprofits and small projects below a certain kW size. This barrier is one of the reasons that the commercial solar sector has been slow to take off; despite significantly larger projects, the installed capacity of commercial (C&I) solar is currently far less than residential PV in the U.S. Aurora Solar’s new partnership with Sustainable Capital Finance aims to tackle this challenge and make commercial solar financing more accessible in the industry. Through this partnership, Aurora customers can view live PPA rates and apply for commercial solar PPA financing for projects over 100kW located in the U.S.—without leaving their Aurora solar sales and design platform. There are several key benefits this offers to solar contractors: 1. Increased transparency about financing rates One key benefit of Aurora and SCF’s Financing Integration is increased access to information on financing rates for solar contractors, through our Quick Quote functionality. Quick Quote allows you to view real, actionable solar PPA financing rates that SCF is offering for your project. As you explore different financing options for your commercial project using Aurora’s financial analysis tools, you can add “PPA Finance by Sustainable Capital Finance” and a PPA rate will be instantly generated for your project. This allows you to set clear expectations for your customers about what rates they may be able to access. This can be particularly helpful for customers who are concerned about the availability of financing options for them. Additionally, because you’re presenting rates that you know are available to qualifying customers, there is a lower likelihood that the actual rate is significantly different than the assumptions you presented—thus reducing the likelihood that the sale falls through. Quick Quote, one part of Aurora Solar’s partnership with Sustainable Capital Finance, makes it possible to immediately view real commercial solar PPA rates that SCF is offering. 2. Improved access to capital—particularly for projects and customers that have a harder time accessing financing Another key advantage of our financing integration with SCF is increased access to capital. Rather than searching for financing partners that serve projects like yours, you have one at your fingertips. Further, solar PPA financing from SCF is notable in that it is accessible to customers and projects that have traditionally had a harder time accessing capital: nonprofits and small commercial projects. As Dan Holloway, VP Origination & Acquisitions at SCF explains, “most companies that offer PPA financing do not offer financing for projects smaller than 1 MW, and almost none that will go below 500 kW. Sustainable Capital (SCF) believes that this is a vast and very under-supported part of the overall solar PV market. We offer PPA financing for projects as small as 100 kW and happily support nonprofit organizations.” At Aurora, our mission is to create a future of solar energy for all; increasing the accessibility of financing through this partnership directly supports that goal. Aurora users can now submit an application for commercial solar financing from SCF without leaving the Aurora software. All of your relevant project information will be automatically transferred to SCF for review, saving you time and effort. 3. Access capital faster to close more sales An additional significant benefit resulting from this financing integration is the ability to reduce the time it takes to finance your commercial solar project. Not only can you see live commercial solar PPA rates with Quick Quote, as an Aurora customer you can directly apply for solar PPA financing without interrupting your solar design and sales workflow. Instead of spending time rounding up the documentation and production data needed for a financing application, you can automatically transfer all of your design information from Aurora to SCF. This Aurora information also helps allow SCF to efficiently process financing applications because they can be confident in the energy production data and other solar design information you are submitting. Aurora’s remote shade analysis has been validated by the National Renewable Energy Laboratory (NREL) as statistically equivalent to onsite shade measurements and our shade reports are accepted as bankable by financing and rebate authorities across the U.S.—including NYSERDA, CT Green Bank, and the Energy Trust of Oregon. As a result of software tools like this, SCF is able to price and underwrite projects in hours instead of days, allowing you to respond faster to your leads. Faster turnaround time has significant sales benefits—allowing you to respond to inquiries while the lead is hot or apply to RFPs more quickly and accurately. Whether you’re new to commercial solar or have hundreds of commercial projects under your belt, it is our hope that this new partnership, and the resulting commercial solar financing options, give you additional resources to close more sales. We’re particularly excited that this partnership makes solar PPA financing accessible to smaller projects and customers like nonprofits that have historically had a harder time getting financing. At a macro level, this new partnership aims to make commercial solar PPA financing more accessible and more transparent. (That’s something solar finance expert David Arfin highlighted as a key opportunity when we interviewed him in 2017!) This is an important step to advancing the growth of the commercial solar market. Though commercial solar has grown more slowly than the residential or utility-scale sectors, it’s a market with great potential. In fact, NREL has estimated that commercial solar on offices, hotels, and warehouses has the potential to reach 104 GW in the U.S. if current barriers are addressed! We consider this partnership one way of chipping away at those barriers to help commercial solar grow. ### Solar Policy Round-up: 9 Wins in the First Half of 2019 There have been a number of positive developments for the solar industry in the U.S. in 2019 to date. The biggest news so far has to be the movement toward 100% renewable energy. Maine, Maryland, Nevada, New Mexico, Puerto Rico, Washington, and Washington, D.C. all codified their commitment to 100% renewable energy earlier this year—that’s a total of seven states and U.S. territories! They join California, Hawaii, New Jersey, Wisconsin, and Minnesota which have also formally committed to 100% clean or renewable energy targets. Two other big wins are community solar and residential net metering. Colorado and Maine enabled larger-scale community solar projects, and South Carolina provided pathways for community solar to grow; Maryland extended their pilot program through 2022. Maine restored their residential net metering that the previous administration rolled back, and South Carolina eliminated net metering caps while extending existing rates for two years. In addition to committing to 100% renewable energy, Puerto Rico also protected net metering for five years in the same bill. There is a lot of work still to be done for solar in the U.S., but with many of the solar policy development highlights from 2019 being positive, a quick celebration for these wins is in order! Colorado Earlier this year Colorado Governor Jared Polis signed a flurry of climate and renewable energy bills, seven to be exact! Among them is the Community Solar Gardens Modernization Act (HB 19-1003) which increases the maximum size of community solar projects from 2 MW to 5 MW, with the cap eventually increasing to 10 MW. Polis also unveiled a roadmap that would take Colorado to 100% renewable energy by 2040. [Fun Fact: The Coyote Ridge Community Solar Farm in Fort Collins, Colorado is the largest low-income community solar project in the U.S. at 1.95 MW.] Maine Maine is also having a great year in solar friendly bills. Governor Janet Mills signed three big solar energy wins—committing the state to 100% renewable energy by 2050, reducing barriers to access clean and affordable solar power, and restoring net metering. An Act To Reform Maine’s Renewable Portfolio Standard (LD 1494) increases the state’s Renewable Portfolio Standard (RPS) from 40% today to 80% by 2030, with a goal of 100% by 2050. Among many other benefits, An Act to Promote Solar Energy Projects & Distributed Generation Resources (LD 1711) will create new jobs, create a grant program to support the installation of over 375 MW of distributed solar, and enable larger-scale community solar projects. Additionally, An Act to Eliminate Gross Metering (LD 91) restored residential net metering in Maine. Maine for many years had net metering, but it was rolled back during the administration of former Maine Governor Paul LePage. Now, residents who own their systems will again receive a one-to-one credit for supplying excess energy back to the grid—a huge win for solar customers in the state! Maryland Maryland’s Clean Energy Jobs Act (SB 516) became law without Governor Larry Hogan’s signature, and commits the state to 100% renewable energy by 2040, with an interim goal of 50% by 2030. This bill also increases the requirement for 2.5% in-state produced solar to 14.5%, provides funding for clean energy workforce development, and requires utilities in the state to subsidize solar and wind. The in-state solar requirement is especially noteworthy because it’s one of the most aggressive (if not the most) of any state RPS policy. Community solar also got a win in Maryland with the enactment of Extension of Community Solar pilot (HB 683), which extended the state’s community solar pilot program through 2022. The bill also removed the cap on the number of subscribers per project and increased the allowable generating capacity per system. Nevada On Earth Day, Nevada Governor Steve Sisolak signed SB 358 and raised the state’s RPS to 50% by 2030 and committed the state to 100% clean energy by 2050. This legislation sped up what Nevada voters approved last year—to include an increase to the state’s RPS in their constitution; the state now does not need to hold the second vote required to approve constitutional change. New Mexico In March, New Mexico officially committed to 100% renewable energy by 2045, with interim targets of 50% by 2030 and 80% by 2040 when Governor Michelle Lujan Grisham signed the Energy Transition Act (SB 489). The state’s largest utility, Public Service Company of New Mexico (PNM), also supports the bill. PNM had already filed plans to shut down its coal assets, and SB 489 provides a system to help ease the closure of San Juan Generating Station. It establishes a financing system to make up for revenue lost, a $20 million fund to aid displaced coal workers, and job training programs for the renewable energy industry. Puerto Rico On April 11th, Puerto Rico Governor Ricardo Rossello signed the Puerto Rico Public Policy Act (SB 1121) committing 100% renewable energy bill by 2050 with interim goals of 40% by 2025 and 50% by 2040. This bill also requires a complete transition away from coal by 2028; there is only one coal plant on the island. Additionally, it protects net metering for five years, mandates automatic interconnection for systems under 25 KW, and reduces approval time to 90 days for commercial and industrial solar projects. Puerto Rico's Electric Power Authority is planning to rebuild the island’s grid into eight mini-grids. South Carolina In South Carolina, net metering caps were eliminated and existing residential solar rates were extended for two years with Governor Henry McMaster’s signature for The Energy Freedom Act (HB 3659 / SB 332). This bill also provides pathways for community solar to grow and removes restrictions to expansion of affordable solar options. Washington Washington not only committed to 100% renewable energy by 2045 with Governor Jay Inslee’s signature on the 100% Clean Electricity bill (SB 5116 / HB 1211), the bill also requires the state’s utilities to ramp off of coal power completely by 2025 and to be 100% carbon-neutral by 2030. Washington, D.C. In January, Governor Muriel Bowser signed the Clean Energy DC Omnibus Amendment Act of 2018 (B22-0904) setting a goal of 100% renewable energy by 2032. This bill is by far the most ambitious in terms of target date for all electricity sold to come from renewable sources. Among other action items, this bill will double the District’s required amount of solar energy, provide energy bill assistance to low- and moderate-income residents, and fund the DC Green Bank to attract clean energy projects. These state actions in the first half of 2019 paint a positive picture for the future of the solar industry and are great news for solar contractors. What other policy developments are you excited about? Let us know in the comments below! ### Improving Access to 3D Data for Better Solar Design: Aurora and Google Remote solar design would not be possible without good map data. Map data helps answer basic questions like how many panels can fit on a roof, as well as more complex issues like which areas of the roof are shaded and at what time of day. Aurora has always tried to give our users access to the best possible data, including HD Imagery from Nearmap and our repository of LIDAR data. In that spirit, Aurora recently announced that we are partnering with Google's Project Sunroof to bring better 3D and imagery data to our users. This partnership will get high quality map data into the hands of more solar installers so that designing solar becomes faster, easier, and more accurate in many regions across the US and even across the globe. Project Sunroof uses Google's huge repository of 3D map data to analyze the solar potential of millions of roofs. Their data covers over half of US households, and many cities across the world. Curious homeowners can go to the Project Sunroof website and check the solar potential of their roofs. Local governments can also use their data explorer to look at solar potential on a city scale so they can plan for things like grid management and incentives. This partnership will get high quality map data into the hands of more solar installers so that designing solar becomes faster, easier, and more accurate in many regions across the US and even across the globe. An estimate of solar capacity in Manhattan, courtesy of Project Sunroof. With this new partnership, installers will be able to combine Google's 3D map data with Aurora's CAD, shading, performance simulation and financial analysis engine. This will combine the global reach of Google's data with the accuracy of designing a solar installation in Aurora. This will make installers' jobs easier, and in turn help bring solar to more homes across the country. A sample of the Google 3D data available in Aurora. Aurora users can continue to access our wide coverage of LIDAR in the US, but will now also get access to 3D data through Project Sunroof in new locations such as Reno, Phoenix, California's Central Valley, and Chicago—as well as worldwide locations such as Paris, London, Tokyo, and Berlin. How Google Captures Data Using Photogrammetry You may be wondering where all of this data comes from. Google uses planes equipped with custom cameras to fly over cities and capture images from many different angles. The planes capture images from 5 different angles: straight down, forward, back, right, and left. Then proprietary algorithms combine all of these images together into a 3D model. This process is called photogrammetry, from the word photograph and the suffix -ometry, meaning to measure. An illustration of how multiple camera angles can be used to locate points in 3D. These photogrammetry algorithms work by looking for similar points across multiple images, for example the peak of a roof, or the end of a driveway. By combining the location of the airplane when it took the picture and where the point appears in the photo, you can figure out the actual location of the point in 3D. Doing these calculations for a single point requires just some basic algebra. Doing it for millions of points and thousands of images across a city, on the other hand, requires sophisticated algorithms and a substantial amount of computing power. When the processing is finished, you get a full city-scale 3D model. The final step is to add color. Fortunately, since the 3D model was generated from photos, you can get pixel-perfect alignment of the photo to the 3D scan, and you can “paint” the 3D model patch by patch with color data taken from the images, producing the full-color 3D scans that you can see in Google Maps, Google Earth, and now Aurora. A 3D model of Aurora's neighborhood of San Francisco, courtesy of Google Maps. Photogrammetry differs from LIDAR data in several key ways, including offering a number of advantages. Photogrammetry often allows you to see smaller details because pixels are closer together than points are in a LIDAR point cloud. Additionally, photogrammetry camera equipment is cheaper than LIDAR sensors. And even if you have existing LIDAR data, for purposes like solar design, imagery is still needed on top of it, which adds to the cost. When you are trying to operate at a global scale, these cost savings add up and make it easier to expand into more markets. Furthermore, advances in photogrammetry tend to come from algorithms while advances in LIDAR tend to come from better sensors. This fits in well with the philosophy of running smart algorithms on cheap hardware that Google used to be famous for. However, LIDAR still has some advantages. The 3D measurements taken from LIDAR data are more accurate because the distance from the airplane is physically measured instead of inferred. It often takes less computational power to process as well because the data starts out in 3D, closer to the final format. Fortunately at Aurora, there is no need to pick which technique is better—both data sources will exist side by side in our software. Aurora users can continue to access our wide coverage of LIDAR in the US, but will now also get access to 3D data through Project Sunroof in new locations such as Reno, Phoenix, California's Central Valley, and Chicago—as well as worldwide locations such as Paris, London, Tokyo, and Berlin. ### How To Secure Online Reviews For Your Solar Business Online reviews are a key part of a successful solar contracting business, given the fact that many consumers look to them as a trusted source of information. Jon Eyre, director of content at customer interaction software provider Podium, told Solar Power World (SPW) that “sometimes customers [are] your best salespeople. No matter how much you train your staff, people are more apt to listen to someone that doesn’t work for your business.” Many solar contractors strive to offer the best customer service, something that can often lead to more positive online reviews. However, securing reviews can be a challenge. Only one in ten people writes reviews all of the time though half of adults under 50 consult reviews before making a purchasing decision. This article discusses ways a solar contractor can develop an effective review acquisition strategy. In addition to related research, Aurora spoke with Danny O'Malley, Client Engagement Manager for Utah-based solar contractor Auric Energy. Auric has a well-developed strategy for securing online reviews; they are the most positively reviewed solar provider in the U.S on SolarReviews.com. Why Online Reviews? One of your best sources of leads is online reviews. They are an effective referral device and referrals convert at three to five times the rate of other channels, have a higher lifetime value, and are more profitable reports SPW. A 2016 survey by marketing company BrightLocal found that 84% of customers trust online reviews as much as personal recommendations from family and friends. A Podium survey found that 93% of respondents said online reviews impacted purchase decisions and 82% said the content of a review convinced them to make a purchase. Online reviews play an important role in business success. Auric’s O’Malley states that being the most positively reviewed solar company in the country on SolarReviews has been quite instrumental in his company’s success. Making your business stand out online with positive reviews on your website and various third-party sites allows prospects to research your company’s reputation and compare it to other providers. Effective Places to Have Reviews An obvious place to include reviews is on your company website. You can place them on your home page, sprinkle them throughout your site, and include them on a dedicated review page. Reviews can take a number of forms, from short quotes, articles about customer success stories, or even videos. Videos can be particularly effective for reaching prospects: 55% of U.S. adults say that they have watched product review videos online. Auric Energy uses video testimonials because of the popularity of this medium. O’Malley explains that they incorporate videos in a number of places, like on social media platforms. O’Malley also recommends looking to interview customers that “are real characters” in order to distinguish your company. He adds that Auric interviewed one of their customers who had legally changed his name to Santa Clause, asking “if you can get a video interview of a Santa Claus promoting your company, why not do it?” Aside from featuring customer reviews on your website, it is important to have a presence on at least a few third-party review sites. In a 2018 Online Reviews Survey by ReviewTrackers, over 60% of consumers said that they are likely to check online reviews on Google before making a purchase, with Yelp ranking second at 45%, and Facebook ranking third. Industry-specific sites that cater to solar are also helpful like Angie’s List or SolarReviews. SolarReviews, a solar business reviews site offers solar reviews categorized by product and service. O’Malley says that, aside from Google, “anybody who is a serious solar contractor should definitely have a profile on SolarReviews and should direct their customers there. Another strong candidate is Energy Sage, if the contractor feels like branching out.” Best Practices for Securing Online Reviews There are a number of strategies to keep in mind when seeking to increase your number of online solar reviews. Find the Frequency and Timing That Works Best For Your Business Test things out to find the ideal frequency for outreach to customers about solar reviews. O’Malley describes how his company recently adopted an email marketing tool that helps them track outreach efforts and gather data on what yields the best results. He notes that his team expects to touch base with customers at least a few times in the first year after system activation, probably at the ninety-day, six-month, and one-year marks. Since one of Auric’s offerings is a production guarantee, their customer service agents contact customers to discuss production numbers and ask for a solar review at the same time. It also helps to contact customers when they are happiest about going solar says SPW. Perhaps this is after a week with the finished system or after their first year with solar. Experiment to see what works best. “We usually ask for a review after they’ve received their first bill, usually about 30-45 days after their solar system is fully activated, because that's when the rubber actually meets the road,” says O’Malley. Use the Optimal Combination of Contact Methods Contact customers in a way that works best for your business and your particular customer profile. Text messages or phone calls can be effective as they are harder to ignore. Collect emails so that you can conduct a post-install email drip campaign that includes review requests. Marketing site HubSpot found that simple, brief, text-only emails have a better conversion rate for review collection than slick, graphic-heavy ones. O’Malley describes how his team uses texts, emails and phone calls. First, they send a text asking for a solar review, followed by a phone call regarding the fact that they are sending over warranty paperwork and the owner’s guide with a request about leaving a review. They continue contact with periodic emails. You can also leave review request cards in person, keeping the language simple and direct with clear link information and instructions. Make It Easy for Customers to Review Make it as easy as possible for customers to review you; part of that is keeping the idea of reviewing your company top of mind. Place the request throughout your website like at the bottom of blog posts, in company emails signatures, on print marketing materials, or on the back of business cards. Download icons like the “Find us on Yelp” banner to use on both print and online marketing materials. Send people straight into the review process rather than having them navigate multiple pages. For example, direct them right to your Google Places page or your website’s reviews page. The faster and easier it is for customers to leave a solar review, particularly on a third-party site, the more likely it will be that they will take the time to give one. It can also be helpful to let customers know what to expect and what topics are helpful to focus on in their solar review. Asking for feedback on a specific aspect of your business can help improve the content of your online reviews. Communicate the Importance of Reviews to Your Business Make sure your customers know how much positive reviews matter to your company. “One of the things that's made it easier for us is priming the customer from the get-go by talking about how important word of mouth is to us and how important the reviews are. So that asking them for it later is not so much of a surprise or difficult ask,” remarks O’Malley. Auric sends customers a survey after their first consultation with a project manager asking how it went and if they would be willing to recommend the company in the future. Get Creative With How You Ask It can be effective to think outside the box when asking customers for reviews. Encourage customers to share positive reviews on social media. This is a popular option for consumers, 39% of U.S. adults say they have shared their experiences or feelings about companies or products on social media sites like Facebook or Twitter. Highly visual platforms like Facebook, Twitter, and Instagram present good opportunities for customers to share solar system photos. You may consider supplying them with high-quality photos of their own system during and after the install so they can share about the process. You may run an ad on Google or Facebook specifically asking for reviews from customers, targeting them by uploading your customer email addresses to Google or Facebook when running the ad. Dokmee used a playful image on Twitter to request reviews. O’Malley notes that Auric only uses social media for brand awareness, not to get new reviews. He states this is because, with platforms like Facebook and Google, anybody can leave a review, not necessarily just actual customers. If you do choose to pursue solar reviews on social media you can set up Google Alert using your business name to catch reviews that show up on blogs, social media, or forums—allowing you to quickly respond to both negative and positive ones. You can include review requests on your hold message when people call. Another option is to offer incentives like a simple reward. This could be a gift card, or an offer to donate to a nonprofit that you partner with. Make sure that customers disclose they are receiving an incentive and check the rules of a third-party review site as they make have restrictions regarding incentives. You do want to be careful not to look like you are buying reviews. You can help avoid this by specifying that you are not just asking for positive reviews or by doing something like randomly picking a reviewer each month for a special giveaway. Handle Negative Reviews Professionally More Americans report being influenced by highly negative reviews than by highly positive ones. Therefore, it is important to handle your negative reviews quickly and in a way that does not damage your business’s reputation. O’Malley recommends that companies avoid overreacting to negative reviews and respond professionally. “This means not turning it into a blame game. I've always tried to turn it into a platform where you’re showing the individual customer that you're going to do the best to help them.” He goes on to say that negative reviews can be an opportunity to show prospects that your company knows how to handle difficulties and “did their best to leave the person better than they found them.” Marketer Neil Patel has the following recommendations for handling negative reviews: pay attention to what is said, acknowledge their comments and let them know you’re doing something about it, and don’t argue or get defensive even if you disagree. It may be helpful to dedicate review monitoring to a specific employee, particularly with regards to responding to negative reviews. A Sunrun response to a negative review acknowledges the customer’s feelings and offers ways to remedy the situation. An effective online review presence can certainly help bolster your business growth by convincing more prospects to become customers. However, reviews and review sites can do more than function as marketing tools. They can allow you to connect with satisfied and dissatisfied customers and get real-time feedback on how to improve your business and the customer experience. Have you found success with other strategies for getting online solar reviews? Let us know in the comments below! ### Who Are the Key Players In a Commercial Solar Project? Compared to residential solar projects, commercial solar projects involve a considerable degree of complexity. Part of that has to do with the number of players involved. In a commercial project, you will likely have to coordinate with many more organizations and individuals. These include the building owner and tenant(s), an engineering firm (if you don’t do all the engineering in-house), local permitting agencies, financing partners, and third-party organizations that commission the system. The roles that solar companies take in commercial projects also vary. It’s common in commercial solar for several different firms to manage different aspects of the work. Depending on the skills of your solar company and the scale of the project, you may be involved in only the project design or installation, or oversee the entire process. In this article, Part Two in our Unlocking Commercial Solar series which delves into a variety of aspects of commercial solar, we discuss the different actors involved in commercial solar projects. If C&I solar is new to you, we hope this article (and series) help you get the lay of the land! Who’s Involved in a Commercial Solar Project? Let’s take a look at some of the different actors that play a role in a C&I solar project, including the customer(s), the organizations that facilitate different parts of the project, the external organizations whose approval is needed for the project to proceed and operate, and the financing providers. We’ll discuss how each of these entities fits in and what they do. The Customer It goes without saying that you’ll be working closely with the organization choosing to install solar, but what that looks like in the commercial sector may be less straightforward than a residential project. For one thing, the commercial building owner—who makes the decision to install solar—may not be the same as the organization occupying the building. Depending on the project you may also need to coordinate with the building occupant; they may even be an integral player in the process. The Property Owner The key stakeholder you’ll be coordinating with during the sales process and throughout the project is the owner of the property where solar will be installed. They will be the ones to decide if the solar project is worth investing in. As we discussed in Part One of this series, the type of customer can vary widely—from a local “mom and pop” shop to a major corporation. And, despite the name “commercial solar,” government entities, schools, and even non-profit customers are also included in this sector. The type of customer and project site that you’re working with will play a major role shaping the sales, financing, and project development process. We’ll delve into the commercial solar sales process in more depth in a future article, but it’s crucial to understand the goals and concerns of the building owner to close the sale. For instance, if the company that owns the project site leases it to a tenant and doesn’t pay utility bills for the property, then energy savings won’t be enticing to them. But highlighting other solar benefits—like tax savings, increased property values, or the ability to get longer leases from tenants could be what closes the sale. The Building Tenant (sometimes) If the building owner is not the occupant, you may also need to coordinate with the tenant of the building. For instance, you might need to coordinate with them during the installation of the project to ensure roof access. In some cases, the tenant may be a core stakeholder helping to drive the development of the project. For example, as we’ll discuss in a future article in this series on C&I solar financing, in some cases the project financing can involve a lease agreement between the building owner and the tenant in which the tenant agrees to purchase the resulting solar power from the building owner. In this case, the tenant company may be actively involved in the sales and project development processes. Parties Involved in Implementing the Solar Project As noted above, the process of designing and installing a commercial solar project and obtaining the necessary approvals for the system to operate involves many different players managing different aspects of the project. In fact, as noted in our profile of a commercial solar project designed in Aurora for the International Brotherhood of Electrical Workers, this is one of the reasons for the greater complexity in the sector. Not only are there more actors who need to coordinate, this division of responsibilities between companies can make it “challenging for electrical contractors who want to transition into a leading role to gain familiarity with the full range of project requirements.” Here we detail the different organizations involved in a commercial solar project and what they do. Prime Contractor / EPC Companies experienced with this kind of project development often serve as the lead and manage all aspects of the project from start to finish—either doing all parts themselves or coordinating with subcontractors. These companies are often referred to as EPCs (short for Engineering, Procurement, and Construction). The EPC will be the customer’s point of contact, and may retain other subcontractors for specific roles. The exact arrangement varies by project. This Solar Power World article explains what an EPC does and highlights some of the different ways that project responsibilities can be structured. Solar Engineering The engineering requirements of a C&I solar project are significantly more complicated than for a residential project, as we discuss in our primer on some of the key differences between residential and commercial solar. As a result, it often makes sense to retain a firm that specializes in this area to ensure that the project is up to code. A key part of this is reviewing the electrical engineering of the project and ensuring the system will function safely and effectively. In many cases, civil and structural considerations must also be evaluated, for instance to ensure that the roof can support the weight of the project and that the project can withstand wind and weather it will face. The engineering firm will ensure that the project can pass permitting requirements, and will also typically manage the process of getting permitting approval. Solar Design Designing the solar installation is another key part of the process. This includes the selection of system components like panels and inverter(s), decisions about row spacing and panel tilt and orientation, and what kind of stringing configuration will be used. In commercial solar designs, factors like walkway requirements must also be considered. Sometimes the installation company will do the design, in other cases the engineering firm will design the system. A robust solar design software program can be extremely valuable in streamlining this process and ensuring a quality design from the outset, particularly for very large projects. For example, Aurora provides solar designers with tools for automatically detecting similar roof obstructions so that they don’t have to model hundreds of skylights or vents by hand. It also offers automated stringing, precise simulation of energy production and how much the customer will save given applicable utility rates. A large, multi-megawatt commercial solar project design in Aurora. Tools like automatic detection and modeling of all obstructions (skylights, HVAC units, etc.) on the roof and automated stringing made the design process considerably easier and reduced opportunities for human error. Solar Installation / Construction Installation is of course a key element as well. Sometimes the construction and installation of the project may be done by a subcontractor, or it may be implemented the same firm that did the design (and sometimes engineering). Installation expertise and attention to detail are essential to ensuring a quality system that will pass the commissioning process, which we’ll discuss in the next section. Project Approval There are several other entities involved in providing the necessary approvals for a commercial solar project. These include the utility, which provides the interconnection approval and permission to operate necessary for grid-connected PV systems, the local government permitting office, and (sometimes) a third-party organization that conducts project commissioning. Local Permitting Office / Authority Having Jurisdiction (AHJ) The local government in the area where the commercial solar project will be constructed will have specific permitting requirements to ensure that the project meets all applicable codes and standards, including local and state requirements. Much of the information necessary for the permitting process will come from the engineering firm, which will often manage the permitting application. Permitting approval will come from the local “Authority Having Jurisdiction” or AHJ. Typically this is the local building department, but multiple agencies may be involved depending on the project. Among the code requirements that the project will be reviewed for are fire codes, building codes, and the National Electric Code. An inspection of the installation will be conducted by the AHJ prior to permit approval. Permitting is widely acknowledged to be a significant pain point in the solar development process (for both residential and commercial projects. This is because permitting requirements vary so significantly, making it near impossible for developers to standardize their application processes, and due to the significant amount of time this process often takes. The Electric Utility The utility is also a critical player in a commercial solar project (assuming it is not a freestanding off-grid system). Because a grid-connected PV system will be feeding electricity back to the electric grid the local utility must grant permission for the project to connect to the grid. Before the installation process begins—and typically before any financing agreement is approved—interconnection permission must be granted by the utility. To obtain this, an interconnection application is submitted with information about the system design, the property, and historic energy consumption at the site. Typically the installation company manages this application. For commercial projects, it is sometimes necessary to upgrade transmission equipment to ensure that the grid can handle the volume of electricity that the system may send to the grid. These upgrades will also be reviewed by the utility in its consideration of the project. Later, once the PV system is completed, utility approval is required again to give the system “Permission to Operate” (PTO). This often involves a site visit from a utility representative to inspect the system and ensure everything meets their requirements. Commissioning Firm After the installation and interconnection of the solar project, commissioning is an important final step in the process to ensure that the completed project is up to standards and will meet the needs of the client. As a report by the U.S. Department of Energy’s Better Buildings Alliance program explains, this process is often done by an independent third party to avoid conflicts of interest, though the design and/or installation firm may also conduct this process. As the Better Buildings Alliance report explains, “The commissioning process is intended to identify [potential] failures and align the system with expected performance. Commissioning also serves as a quality and safety control process. This is the time when the contractor’s workmanship and adherence to safety requirements, manufacturer’s specifications, and engineering designs should be closely scrutinized.” Solar design and engineering firm SepiSolar describes the commissioning process in detail in their case study of a 409 kW commercial rooftop system they were hired to evaluate before the asset owner purchased the system from a project developer. They highlight their review process and some installation errors that they flagged for correction before the deal was completed. Financing Partners Last but certainly not least, other key players are the financing institutions involved in funding the project. These may include banks or financing firms that specialize in solar and clean energy financing. On the other hand, if the company installing solar has the capital available, they may consider paying for the project outright and not involving external financiers. Because there are a wide array of ways that commercial solar projects can be financed with a variety of different actors, we’ll delve into financing in greater depth in a subsequent article in this series. As you can see, part of the complexity of commercial solar projects stems from the many different actors and organizations that are involved in projects. Although there is a lot of variation in the structure of different commercial projects, having a clear understanding of the typical players in a commercial project and their respective roles will help you grasp what’s involved in this sector. Stay tuned for subsequent articles in this series that will explore other aspects of commercial solar projects, including important considerations for how to sell a C&I project and financing structures for commercial projects and considerations for which financing options make sense in different situations. ### White Paper: Analysis of U.S. Net Metering Policy Changes Examining the Impact of Utility Rate Trends on Solar Savings and Design Best Practices Net energy metering (NEM) policies have played a crucial role in making residential solar installations a good investment for homeowners in the United States. However, as installed solar capacity has increased, many utility companies have introduced changes to their NEM programs that reduce the value of distributed solar. Using Aurora's proprietary solar financial analysis tools, we conducted a large parametric study that analyzed over 45 million scenarios to determine how these new programs impact solar customers’ savings across the United States. The study analyzes the financial impacts of specific billing mechanisms, as well as the cumulative impacts of different combinations of these mechanisms as implemented by utilities in different states. The policies evaluated slightly diminish the financial value of installed solar but also promote larger system designs in certain circumstances. Click here to download our full findings! Please note: When you click the link, a pop-up should appear allowing you to enter your contact information to download the report. If this does not occur it may be a result of a pop-up blocker. In this case, we recommend opening this page in the Incognito or Privacy Mode of your browser, which will prevent any conflicts with your cache, cookies, or any browser extensions. ### What Net Metering Policy Changes Mean for Solar Savings Net energy metering (NEM) policies play a crucial role in making residential solar installations a good investment for homeowners in the United States, so it’s important that solar contractors have a clear understanding of them. This is particularly true now, as many electric utilities have begun introducing changes to their NEM programs that reduce the value of distributed solar. We’ve previously written about changes to net energy metering policies but we’ve been hard at work conducting research to determine exactly how different policy changes affect customers’ utility bills and solar savings. In fact, we’ve recently completed an extensive study with over 30 pages of detailed analysis on the financial and design implications of NEM changes around the country! In this article, we are excited to explain how some of the common utility revisions to net metering impact solar customers’ savings and bills. In a subsequent article, we delve into how some of these policies result in new solar design best practices in order to maximize your customers’ solar savings. Standard Net Metering Standard net metering rules have a straightforward theme - every kilowatt-hour (kWh) of excess solar energy sold to the grid is valued the same as every kWh of energy purchased from the grid to use in the house. Tiered and time-of-use rates complicate the math slightly but, for any given hour, a solar homeowner who exports 10 kWh would receive the same dollar amount of credits as they would have been charged by the utility if they had consumed that amount of energy from the grid. However, the closure of initial net metering programs, whether due to the utility reaching a specified installation capacity limit or as a result of a legislative change, has brought about a variety of new policies that chip away at some of the traditional net metering rules. These include: Non-Bypassable Charges California’s NEM 2.0 program features non-bypassable charges, a portion of the electric rate that customers with solar pay for but cannot offset with solar energy production. These charges both add to the customer’s bill by virtue of being non-bypassable and slightly devalue their exported solar energy. Percentage Reduction of Exported Value Some utilities such as NV Energy have instituted a percentage-based reduction in the value of solar energy exported to the grid. Under these policies, customers lose a percentage of their credit for excess energy. For example, under a 10% reduction, if the rate schedule specified $0.20/kWh electricity price, then the customer would receive only $0.18/kWh exported to the grid. The exact percentage reduction depends on the terms in place when they interconnect to the grid. Flat Export Rates Rather than tying the value of exported kWh to the retail electric rate, some utilities have implemented a flat export schedule similar to a Feed-In-Tariff (FIT) or Buy-All, Sell-All policy. The difference between FIT compensation schemes and NEM with a flat export rate is that customers on flat export rates net up their energy first (offsetting regular-rate usage from the grid) before exporting their excess energy, rather than selling all energy to the grid at a flat rate. Not All PV Production Is Reduced in Value If we look at an overlay graph of household energy consumption and PV production, there are three distinct regions: Consumption from Grid Consumption from PV Excess PV Production Typical energy consumption vs. solar production. Customers are charged for the kWh area in blue and receive no charge for the kWh area in green. The kWh area in yellow indicates excess PV production that is exported to the grid, and the hourly rules listed above only change the credit rate for the yellow region. Customers who can align their production and consumption levels will be less impacted by the rate changes. We’ve found that anywhere from 20% to 60% of the energy produced by a PV system is in excess of concurrent consumption. House Size Matters Households with larger energy consumption and a larger PV array have production and consumption curves with similar characteristics to smaller buildings, simply scaled up. However, this means that the number of kWh exported under reduced credit rate is higher for higher-consuming locations. As a result, if a household consumes 18,000 kWh per year and offsets 90% of their energy from solar, they will lose more credits to these new policies than a household that consumes 9,000 kWh per year with a PV system that offsets 90% of their energy. Credit Expiration While NEM customers can typically take excess production credits from summer months and apply them to energy charges in winter months, most NEM programs stipulate that credits earned from excess production can’t be carried over indefinitely. A few examples of these rules are as follows: PacifiCorp in Utah has the most common setup, where customers pay each month for any net energy consumption and excess NEM credits are expired once a year at the end of a specified month — March in this case. Other utilities stipulate other times of the year which are less advantageous; December expiration means that customers might have to pay a bill in January and February, and an expiration in October would mean that the customer has to pay most of their bills for the entire winter season. Some Investor-Owned Utilities, such as Pacific Gas & Electric in California, stipulate that excess credits are expired at the anniversary of when their PV system received permission to operate (PTO), or every 12 months. These NEM customers are billed only once per year (paying only for their net consumption after all credits are applied), however, so the end result is similar to customers who have indefinite credit holding. Other utilities don’t let customers carry credits from one month to the next at all, and instead pay for excess any kWh credits remaining at the end of the month at a much lower, close-to-wholesale rate (this is typically called net surplus compensation). The rate is usually based on the utility’s generation costs and is about a third or less of the overall electric rate. Here’s a visual example of how the different credit expiration rules play out given the provided charges and credits built up over a year, ignoring fixed and minimum charges. (It should be noted that these examples represent PV systems in the Northern Hemisphere; in the Southern Hemisphere the same principles apply but the months in which systems produce more or less energy will be different due to differences in seasons.) How different net metering credit expiration policies affect bills. The net value of all the charges and credits amounts to $10 over the whole year, which is the lowest a solar customer could pay. The customer with an annual billing cycle pays only $10, since their excess credits can be applied to all other months. The customer with credits expiring in December can build up a surplus set of credits from April to August when their PV system is likely to be receiving more sun and producing excess energy, and then use these credits to offset their energy use in September through December when their PV system is likely to be producing less. However, they lose their credits at the end of December, so they still have to pay for electricity charges in January, February, and March, which amount to $90. The customer with credits expiring in February gets to use their surplus credits in January and February as well, which cuts their bill paid down to $20, almost as good as the customer with the annual billing cycle. If a customer doesn’t have credit carryover, they end up paying for net usage in any month that they build up charges, amounting to $195 in our example. As a solar contractor, it is important to be wary of the NEM rules in the customer’s local area to ensure that you accurately portray customers’ solar savings. Software like Aurora, which has tools for modeling utility rates and conducting financial analysis, makes this easy. Additional Resources for Understanding These Rate Changes In today’s article, we’ve covered some of the key ways that NEM programs are being revised and what they mean for solar customer’s bills. In a subsequent article, we’ll delve into the new solar design rules-of-thumb that we have identified to maximize customers’ solar savings under different NEM policy types. We’ll also investigate how future updates could impact some of the trends we’ve found. In the meantime, if you’re looking to deepen your expertise in this area, you can check out the full findings of Aurora’s extensive research on this topic (we analyzed over 45 million scenarios!) in our white paper. We also invite you to tune in to our upcoming webinar on June 27 (link below!) where we will discuss these new policies, who they impact, and new PV design considerations from these policies. ### Solar and the Environment: Surprises from the Value-Belief-Norm Theory The connection between Americans’ concern for the environment and solar adoption is clear. In a 2016 Pew Research Center survey, 55% of homeowners under age 50 in the United States said they had given serious thought to installing solar or had already installed solar panels. The second most common reason why? Environmental concerns. For many solar contractors, this is not news. However, there are nuances to this connection. Whether pro-environment or not, consumers’ feelings about the environment are impacted by other beliefs and social factors that can influence their decision making process about adopting solar. Being aware of these related factors and how they influence prospects can help you make your sales and marketing efforts more effective and avoid the pitfalls of assumptions about what prospects value. The National Renewable Energy Laboratory (NREL) conducted a study to explore the social and psychological factors influencing homeowners considering adopting solar. This final article in our series about this study looks at some of its conclusions and how they can bolster your solar sales and marketing strategies.   This Blog Series and the NREL Study In this blog series, we take a closer look at insights from a 2016 NREL-funded study, Explaining interest in adopting residential solar photovoltaic systems in the United States: Toward an integration of behavioral theories. The study’s researchers surveyed 904 homeowners from four U.S. states who did not adopt solar in order to understand how psychological and social factors affect consumer interest in residential solar. The factors were drawn from three behavioral theories that shed light on the decision making process of prospects, and from conversations with solar industry professionals. Each article in our series examines one of the behavioral theories used in the study, exploring insights it offers for the process of solar customer acquisition. Where applicable we also add information from related research. In this final article in the series, we examine what the “value-belief-norm theory”—which offers an explanation for individual environmental decision making—tells us about the decision making process for homeowners considering solar. In the previous two articles, we looked at insights from a theory that views solar as a new innovation and a theory that focused on purchasing behavior in a rational decision making process. Value-Belief-Norm Theory The value-belief-norm theory (VBN) argues that pro-environmental behavior is value driven. The most important of these values are social altruism, concern for other humans, and biospheric altruism, concern about other species and earth’s biosphere. Additional values shaping a person’s environmental related behavior are self-interest, openness to change, and feelings about tradition. VBN asserts that these values have an impact on a person’s general beliefs about the human-environmental relationship and their sense of responsibility or moral obligation to take particular actions. Source: Kimberly S. Wolske, Paul C. Stern, Thomas Dietz, “Explaining interest in adopting residential solar photovoltaic systems in the United States: Toward an integration of behavioral theories,” Energy Research & Social Science, Volume 25, 2017. Impact of VBN Factors on Solar Adoption The study’s researchers found that VBN variables accounted for 11% of the variation in interest in solar adoption after they accounted for other household characteristics (demographics, financial status, etc.). The study’s conclusion was that these values have a variable impact on how prospects perceive solar. Both types of altruism made prospects more liable to be open to considering solar since they identified solar as a technology that would reduce the stress on the environment. However, this impact was mediated by their views on climate change, sense of obligation to address it, and their awareness of the effect of humans’ actions on the environment. These factors made them either more or less willing to consider solar. Self-interest helped reduce interest in solar by lessening a prospect’s concern about the environment while their personal perception of the economic benefits of solar increased their interest. Additionally, while an openness to change helped promote curiosity about solar, traditionalism provoked skepticism. How These Findings Can Help with Solar Customer Acquisition Understanding how these value-belief-norm variables shape a homeowner’s decision making process can offer valuable insights to bolster your sales conversations and marketing messaging. Address Concerns That Can Eclipse Prospects’ Pro-Environmental Feelings The study revealed that there are VBN values that do predispose certain people to take pro-environmental action, something that can help you identify homeowners who may be more inclined to adopt solar. However, the impact of these values is shaped by behavior-specific beliefs and attitudes. One such factor is a prospect’s personal norms, or expectations they may have about themselves and their behavior in relation to the environment. This could include be whether or not they feel guilt when they waste energy or feel obligated to take action about the future use of renewable energy. It could also be related to their feelings about the kind of social support they think they would receive for the choice they make about going solar. Personal norms have such a significant impact on a prospect’s perception of solar’s benefits that it can even eclipse their pro-environmental values. It may be helpful to keep this in mind when shaping your marketing messaging and engaging in sales conversations. You might look to strike a balance between emphasizing the environmental benefits and discussing the other advantages of solar adoption, particularly when moving past the initial stages of the conversation with a prospect. You may also help your sales teams avoid assumptions about a prospect’s feelings about renewable energy and have them be on the lookout for how a prospect factors in the opinions of others when it comes to making a decision about something like solar. Avoid Assumptions About a Prospect’s Opinions About Change and the Environment Past studies show evidence of the strong link between pro-environmental values and residential solar adoption. The 2016 Pew Research Center survey found that 87% of the surveyed consumers who installed solar or seriously considered it did so to help the environment. A 2011 survey of Dutch consumers found environmental concern to be the most important driver of a household's intention to generate its own power. However, the NREL study concluded that the impact of pro-environmental sentiments can be moderated by factors like doubts about climate change or traditionalism. Given this, you may consider creating marketing materials that account for the varying beliefs of your prospects. One strategy is to create several different buyer personas, or mock profiles of your company’s ideal customers, in order to speak to their specific opinions and needs. You can use digital marketing tools like emails, blog posts, videos and webinars to offer valuable content for each specific buyer persona you want to approach. Additionally, members of your sales team may seek to find out where a prospect stands on issues like climate change or changes to the status quo early on in a sales conversation. Capitalize on Green Business Values On the commercial side of your business, you may consider appealing to a company’s stance on sustainability in your marketing efforts. Discuss the benefits of solar in differentiating their company and impacting customers’ perceptions, particularly for companies that know many of their customers and shareholders have pro-environmental views. Business owners and CEOs set business strategy so you may try to help them understand how going solar can demonstrate their companies’ values in relation to the environment. SunPower points out the relationship between sustainable business practices and brand reputation. They highlight four ways a sustainable business practice like going solar can bolster a company’s reputation: 1) “Follow the lead of environmentally-conscious Fortune 500 companies, 2) Position yourself to consumers and investors as a forward-thinking company, 3) Initiate a “green marketing” strategy, 4) Highlight your ability to align sustainability in business with profitability.” You may also choose to appeal to prospects’ VBN related values and profitability on the commercial side of your business in this way. Accounting for the psychological and social variables that shape a prospect’s decision-making process in sales conversations and marketing materials can improve your solar contracting company’s ability to effectively engage consumers. Insights from the value-belief-norm theory can be particularly useful, given the close relationship between solar adoption and pro-environmental behavior. Because there are a number of beliefs and social factors that impact a person’s feelings about the environment and how they view solar, it is helpful to consider VBN variables in relation to the behaviors addressed by the two other theories used in the NREL study: the diffusion of innovation and the theory of planned behavior, which we covered earlier in this series. This synthesis of three distinct theories about consumer behavior allows contractors to gain a more robust understanding of what ultimately drives homeowners to adopt solar. About This Series: Solar Sales Tips from 3 Theories of Solar Adoption In 2016 the National Renewable Energy Laboratory (NREL) conducted a study that examined the decision making process of residential solar prospects through the lens of three behavioral theories. They sought to provide solar industry professionals with insights about the social and psychological factors influencing homeowners when they considered whether or not to adopt PV solar, in order to help increase the solar adoption rate. In this three-part series, we look at each of these theories and discuss the key variables explored in the study and in related research. The series seeks to provide contractors information that can enhance their sales and marketing efforts. Part 1. Increase Solar Sales Success with the Diffusion of Innovations Theory Part 2. Solar Sales Insights from the Theory of Planned Behavior Part 3. Solar and the Environment: Surprises from the Value-Belief-Norm Theory ### Solar Sales Insights from the Theory of Planned Behavior Residential solar customer acquisition can be an expensive process. In 2017 GTM estimated that the average cost of getting new solar customers was 17% of the total residential system cost and set to grow to 20%. Therefore, making your sales and marketing process as effective and targeted as possible is important. There are many factors that influence consumer behavior. The more you understand the various factors at play when a prospect considers adopting solar, the better equipped you are to speak to their specific concerns and present them with the most engaging information. NREL funded a study to shed light on the social and psychological factors influencing homeowners when they consider solar PV. This second article in our three-part series on this study looks at some of its findings and how they can support your solar sales and marketing process. Understanding your prospect's decision making process for buying solar can help you improve your solar sales conversation.   This Series and the NREL Study In this Aurora blog series, we examine the insights of a 2016 NREL-funded study, Explaining interest in adopting residential solar photovoltaic systems in the United States: Toward an integration of behavioral theories. Researchers from several universities surveyed 904 homeowners from four U.S. states who had not already adopted solar to understand the impact of certain psychological and social factors on consumer interest in residential solar. These factors were selected based on three behavioral theories that offer insights about prospects’ decision making processes, as well as input from professionals in the solar industry. Each article in our series looks at one of the behavioral theories included in the study, examining insights it offers for the solar customer acquisition process. Where applicable we also pull in other related research. In this article, we consider what the “theory of planned behavior” has to reveal about the adoption of solar as a consumer good. In the first article, we looked at insights from a theory viewing solar as a new innovation and in the final article, we’ll highlight findings from a theory related to environmentalism. The Theory of Planned Behavior The theory of planned behavior (TPB) asserts that the intention to perform a behavior comes from a rational decision making process involving the consideration of three things: 1) one’s attitudes toward the behavior, 2) subjective norms or one’s perceived social pressure to engage in the behavior, and 3) perceived behavioral control (perception of one’s ability to perform that behavior). Source: Kimberly S. Wolske, Paul C. Stern, Thomas Dietz, “Explaining interest in adopting residential solar photovoltaic systems in the United States: Toward an integration of behavioral theories,” Energy Research & Social Science, Volume 25, 2017. According to TPB, during the purchasing process, all three of these factors are impacted by the value a consumer expects to gain from the purchase and their beliefs about the purchase’s consequences. As applied to residential solar, this might be the fact that a solar system is a relatively expensive consumer good that requires some significant alterations to their home. Therefore, the solar decision making process can be partially explained by the weighing costs and benefits, such as the impact on one’s home and finances. TPB Factors and What They Mean for Contractors The study found a number of TPB variables related to consumer beliefs that influence attitudes toward residential solar. The researchers found that these factors accounted for 29% of the variation in interest in solar adoption, after accounting for other household constraints. Understanding how these variables impact the prospect’s decision making process can offer valuable insights to improve your marketing materials and sales conversations with homeowners. Inform Consumers About the Feasibility of Solar Strategically counteracting negative perceptions about solar can help increase solar sales success. Prevalent positive ideas about the benefits of solar were found to include: belief in solar’s ability to protect against rising electricity costs, improvement in home value, and reductions in environmental pollution. The perception that had the strongest direct effect on those considering solar was the belief that they would personally benefit, followed by the idea that it could address environmental problems. However, drawbacks that could potentially interfere with these perceptions about solar’s benefits were misconceptions about maintenance costs, unreliability, and the risks involved with altering one’s house. Researchers found that a particular barrier was worry about the price of the installation and maintenance, particularly given that solar’s price and operating costs are generally less well-known when compared to other large consumer purchases like cars or appliances. There was also the common idea that, given fears about potential risks, it was better to wait until the quality and cost-effectiveness of solar improved, particularly since some prospects knew that panel costs had been going down in recent years. It may be important to clarify solar’s current—and potentially quite affordable—installation and maintenance costs since many prospects simply don’t have information about them. Help your customer understand some of the financing options and incentives that can put solar within their budget; many assume that solar is not feasible for them without knowing the actual cost. A 2015 Texas study using TPB to examine prospect decision making found a “low awareness of solar costs” among respondents. The researchers found that many said they would install solar if they could afford it and felt there would be only low financial returns, despite the existence of federal and local incentives and leasing options. In light of this, researchers suggested that solar companies work to educate consumers about solar by making them more aware of incentives like rebates, declining prices, and lease options. They also advised that education about incentives is more effective if it includes information that clearly enables prospects to assess how incentives actually impact key criteria like affordability. Therefore, it may be effective to not only educate about the typical price of installation and maintenance but also present information about incentives in a way that is particularly attractive and relevant to a prospect’s particular set of criteria. Aurora’s financial analysis tools can be particularly helpful here—because you can model the cost of the customer’s system given any applicable incentives. You can also how financial metrics and cash flows differ under different financing options. Aurora's financial analysis tools can help you illustrate the finances of a solar purchase, including the impact of relevant incentives. Create Positive Social Pressure: Connect Prospects with Neighbors Who Have Gone Solar Find opportunities to encourage interactions between homeowners considering solar and others in their area who are happy solar customers. The study found that a belief in peer support (or lack of it) was the second most impactful variable when it came to solar adoption. This is based on the idea that a large number of prospects view group approval or disapproval as important. Researchers found that the feeling that friends and neighbors supported solar adoption often counteracted their concerns about the perceived risks. Peer-to-peer marketing is one way you can encourage sharing about the benefits of solar. Inc.com states that “as a marketing decision...getting some early adaptors to tell their friends is more efficient and more effective than just about anything else you can do.” If your company has successfully installed the first system in a particular neighborhood, you may look to capitalize on this through localized marketing efforts. Some of our team members who have previously sold solar for leading installation companies suggest that one way to do this is to use Aurora to create custom solar designs for neighboring houses, and distribute them on the day of the install. Securing positive online reviews, requesting referrals, or creating high quality, engaging content that is easily shareable in person or online. Finding ways to encourage interactions with others nearby who have installed solar can help prospects feel that they have peer support for a solar purchase. Help Prospects Feel They Can Go Solar By Addressing Their Concerns The results of the study showed that even peer influence can be overridden by a homeowner’s belief that they are not able to adopt solar. Given this, it is helpful to explicitly identify a prospect’s concerns and address them in the sales conversation. Typical reasons customers believe solar is not feasible for them were found to be: concerns about local climate, exposure to sunlight on their property, and expectations about having to move soon. Concerns About Shade The study stated that “homeowners may quickly dismiss [residential PV] if they believe their homes or locations unsuitable” because of things like inadequate sunlight due to the local climate or the shadiness of their property. Interestingly, however, researchers found that this particular concern made a prospect more likely to want to talk to a contractor, reflecting a genuine interest in confirming whether their property was truly unsuitable for solar. This is something you may wish to use to shape your initial messaging or early stages of sales conversations. Aurora users can also take advantage of the irradiance map feature, which helps you show a prospect how much shade and solar access a home has, to address these concerns. Aurora's irradiance map tool is one way to educate prospective solar customers about how much solar energy reaches their roof and if they are a good candidate for solar. Concerns About Moving Another common concern brought up by prospects was that “I may not be in my home long enough to get the benefits of investing in solar.” You may consider addressing this by offering information about solar’s impact on their home’s value during your sales conversations. There are a number of studies that demonstrate that U.S. houses with solar sell faster and for more money. A 2015 Lawrence Berkeley National Lab study examined sales data for 23,000 homes in eight states from 2002 to 2013, 4,000 of which had a solar system. The study found that buyers were willing to pay a premium of $15,000 for a home with an average-sized solar PV system, compared to a similar home without one. You can leverage these social and psychological factors that shape prospects’ perceptions about solar and its suitability to effectively target your solar sales and marketing efforts. These findings based on the theory of planned behavior highlight how to engage homeowners and address their specific concerns. In the next and final article of this series, we’ll look at findings from a behavioral theory related to environmentalism and examine how they can assist in the solar customer acquisition process. About This Series: Solar Sales Tips from 3 Theories of Solar Adoption In 2016 the National Renewable Energy Laboratory (NREL) conducted a study that examined the decision making process of residential solar prospects through the lens of three behavioral theories. They sought to provide solar industry professionals with insights about the social and psychological factors influencing homeowners when they considered whether or not to adopt PV solar, in order to help increase the solar adoption rate. In this three-part series, we look at each of these theories and discuss the key variables explored in the study and in related research. The series seeks to provide contractors information that can enhance their sales and marketing efforts. Part 1. Increase Solar Sales Success with the Diffusion of Innovations Theory Part 2. Solar Sales Insights from the Theory of Planned Behavior Part 3. Solar and the Environment: Surprises from the Value-Belief-Norm Theory ### Increase Solar Sales Success with the Diffusion of Innovations Theory Getting new customers is a persistent challenge in the residential solar industry. In fact, while other components of the cost of solar have fallen over time, in 2017 GTM reported that the cost to acquire a residential solar customer had actually gone up! But what if you could have a better sense of what factors influence whether a potential residential solar customer will be interested in taking the first step of talking with a solar contractor? Could you more precisely target prospects who are more likely to install solar? Could you better tailor your solar sales and marketing messages to address the considerations that play the biggest role in their decision-making process? With that in mind, NREL funded a study with exactly that focus. This article, the first in a series of three, examines some of the findings of that study and what they mean for your solar sales and marketing strategy.   About This Series and the NREL Study The three articles in this Aurora Blog series explore the insights of a 2016 NREL-funded study entitled Explaining interest in adopting residential solar photovoltaic systems in the United States: Toward an integration of behavioral theories. Through a large survey of homeowners who had not already installed solar, researchers from several universities examined the impact of different psychological and social factors on individuals’ interest in residential solar. The factors were drawn from three behavioral theories that offer potential explanations for why people decide to pursue solar. The study used survey data from 904 homeowners who had not already installed solar in four U.S. states: Arizona, California, New Jersey, and New York. The content of the surveys was built from each of the three theories and conversations with leaders in the residential solar industry. Our series examines the findings of this NREL study, and other related research. Each article explores one of the behavioral theories considered in the study, highlighting what insights it offers for solar customer acquisition. In this article, we share takeaways from “diffusion of innovations” theory that explains solar adoption through the lens of how people perceive and adopt new innovations. In future articles, we’ll highlight findings from the other theories considered. The Diffusion of Innovations Theory The diffusion of innovations theory (DOI) describes the process by which an innovation diffuses through society as a result of media communication and person-to-person interaction. Source: Kimberly S. Wolske, Paul C. Stern, Thomas Dietz, “Explaining interest in adopting residential solar photovoltaic systems in the United States: Toward an integration of behavioral theories,” Energy Research & Social Science, Volume 25, 2017. According to the DOI theory, a consumer’s process for adopting an innovation occurs in five stages: 1) their knowledge or awareness about it, 2) persuasion or the formation of their attitude about it, 3) their decision about whether to adopt the innovation, and if so, 4) implementation and 5) confirmation (deciding whether or not to continue using it. There are a number of factors that impact the speed at which the individual moves through these five stages. One is the “innovativeness” of the potential adopter—the earliest adopters tend to be innovators who actively seek information about technology to assess its benefits. Five additional factors about the way an individual perceives an innovation like solar influence their likelihood of adopting it and how quickly they decide to adopt it: Relative advantage: whether solar is perceived to improve a person’s status financially, environmentally, or socially Perceived compatibility with the individual’s existing values, needs, and practices Perceived complexity, such as whether the individual feels it will require a lot of effort to learn about solar Observability: whether consumers are able to observe that technology in use Trialability: the ability to test an innovation before committing (The researchers note that residential solar’s lack of trialability is one potential barrier to adoption. This is one reason you may want to capitalize on the other factors above in your messaging.) The study survey included questions related to each of these variables drawn from DOI theory to assess how they impacted a prospect’s decision-making process. These factors offer some valuable insights into how you may want to frame your marketing messages and sales conversations. How DOI Factors Affect Solar Adoption The researchers found that DOI variables accounted for a full 31% of the variation in individuals’ responses to survey questions. In particular, the study found that a prospect’s perception of the relative advantages of going solar was the most significant indicator of their interest in talking with a solar contractor. Having observed solar (such as seeing solar on a neighbor’s house) helped increase their sense of relative advantage and reduce their perceived sense of solar’s riskiness. Observing solar, including conversations with peers with solar, was one important factor in prospects' interest in talking to a solar contractor.  Additionally, prospects’ interest in seeking out new technologies (a measure of their “innovativeness”) had a strong positive impact on their interest in contacting a solar installer. Implications for Improving Solar Customer Acquisition There are a number of practical implications of the study’s findings based on diffusion of innovations theory. Contractors and their sales and marketing teams can keep these insights in mind when shaping their messaging and considering how to approach sales conversations. Emphasize Solar’s Relative Advantage and Compatibility with Customers’ Values and Lifestyle Consider framing your marketing and sales messages in ways that emphasize the advantages of solar compared to the customer’s status quo. For instance, you may want to highlight the savings and greater control it offers over utility bills or increased home value. Although the study focused on prospects’ existing perceptions of solar, this was one of the most important factors in study participants’ interest in solar. And, since compatibility with the customer’s lifestyle and whether the process is perceived as simple or complex are also important factors, you want to ensure that you make the process as simple as possible, Early Adopters of Other Innovative Technologies May Be Good Solar Prospects Because “innovativeness,” or a person’s eagerness to adopt new technologies, is a strong indicator of their interest in talking to a solar contractor, one customer acquisition strategy may be to target your marketing and sales outreach toward those who have adopted other innovative technologies. Many contractors currently target consumers who are early adopters of other environmental technologies like hybrid and electric vehicles. The NREL researchers suggest also approaching consumers of other innovations such as “smart home” technologies, like smart thermostats. They point to the fact that homeowners who use home automation may be attracted to an online solar platform that allows them to monitor their energy usage and generation. The Importance of Trust and Overcoming Prospects’ Sense of Risk Finding ways to connect your customer with trusted sources of information about residential solar can help with sales success. The researchers state that “potential adopters need assurance from trusted sources of the personal benefits of RPV.” These can be neighbors with solar or neutral, third-party sources like government agencies or nonprofit organizations. This kind of information impacts a prospect’s curiosity about solar as well as their willingness to talk to a contractor. The researchers also suggest offering contractual guarantees of system performance to increase consumer confidence. Aurora users could also highlight the NREL validation of the accuracy of their solar software. Observability and the Power of Peer Influence Because observability plays such a big role in customers’ decision-making, it may be helpful to think about creating opportunities for interactions between homeowners that help share the benefits of solar. Other studies have documented this, such as a 2012 California study that found the more common solar was in a zip code, the greater the likelihood of another household adopting it. A 2015 study of Texas solar adopters found that the decision-making process is significantly shortened when homeowners see PV panels in their neighborhood or talk to neighbors who have solar. It found that the presence of PV system owners in a neighborhood had a significant impact—both passively, when consumers witnessed PV systems in their neighborhood, and actively, via peer-to-peer communication. Contact with neighbors who had installed solar before an installation was the single most effective strategy for speeding decision times as it increased confidence, a sense of trust, and an understanding about solar’s convenience and relevance. The Texas study suggested that contractors design incentive structures and communication platforms that facilitate peer-to-peer interactions, such as online social platforms or referral programs, because they have the potential to decrease individual decision-making time by over six months. You might also want to target your marketing and sales outreach to neighborhoods where solar is already present, since neighbors of current solar customers will likely feel more comfortable with solar. Understanding the psychological and social factors that impact the decision making process of homeowners considering solar can help contracting companies frame their marketing and sales communications. Findings from this study based on diffusion of innovations theory, offer insights into effective ways of engaging prospects and increasing solar sales success. In subsequent articles, we’ll discuss findings from two other behavioral theories that offer implications for solar customer acquisition.   About This Series: Solar Sales Tips from 3 Theories of Solar Adoption In 2016 the National Renewable Energy Laboratory (NREL) conducted a study that examined the decision making process of residential solar prospects through the lens of three behavioral theories. They sought to provide solar industry professionals with insights about the social and psychological factors influencing homeowners when they considered whether or not to adopt PV solar, in order to help increase the solar adoption rate. In this three-part series, we look at each of these theories and discuss the key variables explored in the study and in related research. The series seeks to provide contractors information that can enhance their sales and marketing efforts. Part 1. Increase Solar Sales Success with the Diffusion of Innovations Theory Part 2. Solar Sales Insights from the Theory of Planned Behavior Part 3. Solar and the Environment: Surprises from the Value-Belief-Norm Theory ### Lessons From Down Under: Ways to Lower PV Solar Soft Costs In recent years, costs for solar in the United States have come down, largely due to decreasing solar PV module costs. However, soft costs—including customer acquisition and the cost of services like installation, interconnection and permitting—have remained high, now making up approximately 64% of the total cost of a new solar system. If those costs were reduced it would help make solar more widely accessible in the U.S. Australia’s thriving solar market offers a number of lessons about how contractors can reduce soft costs. Solar contractors there have focused on creating more efficient processes, resulting in increased profit due to more installations in less time. This article explores the findings of a 2014 report on Australia’s solar market from the Rocky Mountain Institute (RMI) and the Georgia Tech Research Institute (GTRI) entitled Lessons From Australia - Reducing Solar PV Costs Through Installation Labor Efficiency. Background on Australia’s Solar Industry Australia has a booming solar industry. Currently, 20% of Australian households have rooftop solar. Clean Energy Regulator General Manager Michelle Crosbie states, “Australia has the largest uptake of household solar installations and capacity per capita in the world.” The Australian solar industry has experienced significant growth in the past few years. Electricity generated by new rooftop solar was 86% higher than the average annual growth during the previous three years, and utility-scale PV output is projected to reach more than 1 TWh in 2019. And the number of small business solar installations grew from over 9,663 in 2017 to 16,596 in 2018. There are several reasons why the country’s rooftop solar market is doing so well. There is considerable policy support from federal and state governments for PV systems less than 10kW, and residential electricity prices are very high compared to those of other countries. Both the sunny climate and the fact that a large percentage of Australia’s houses are stand-alone structures with large roof spaces make it a region conducive to solar. Finally, prices are low for solar, with the typical system cost averaging about $7,000 compared to $16,000 in the U.S. While many of these differences are beyond the control of solar contractors, when it comes to this final difference, the cost of solar installations, Australia may offer some lessons for the U.S. solar market. Twenty percent of Australian households have solar installations. The Australian solar market offers some lessons for the U.S. industry, according to a study by the Rocky Mountain Institute (RMI) and Georgia Tech Research Institute. Lessons for American Contractors The RMI/GTRI report has a number of insights for American solar contractors about ways to lower costs around installation labor. The authors acknowledge that there are certain fundamental differences in the structural and policy context of Australia’s solar industry. Some of these include the country’s high electricity costs, simplified permitting process, streamlined architecture, and greater efficiencies regarding building and electric codes. However, the authors of the report highlight a number of instructive best practices that have led to a shorter, more cost-effective installation processes in Australia. While the report found that the American median total install time is 9.4 labor hours per kW, it states that “based on benchmarked Australian installers, our analysis highlights an opportunity to reduce total installation time by nearly 2.3 labor hours per kW, thereby approaching the Australian median total install time of 6.1 labor hours per kW.” The report suggests that the primary way to do this is for U.S. PV contractors to make efforts to shift their installation practices to make one-day installs more common. An Expedited Installation Process The report found that Australian solar contractors spend approximately the same proportion of time on each category of installation activities as U.S. companies but are able to perform discrete activities much more quickly. This is due to their use of highly specialized roles and simplified processes and components. Pre-Installation Process Optimization There are several aspects of the pre-installation process that have been streamlined by Australian solar companies. They have shorter prep time for activities that take place before arriving on site. At the warehouse, contractors prepare and load the trucks more quickly, partly because their trucks are stocked with universal equipment and loaded with system-specific components by job. The study authors suggest that American contractors could benefit from increased warehouse organization and task identification. On-site pre-installation is simplified, with system installation often beginning within approximately 20 minutes of arrival. Australian contractors demonstrate high levels of task specialization and efficiency when loading and unloading racking and mounting materials. Modules are largely prepped and fully unpacked before arriving on site. Additionally, less time is spent setting up safety gear, though this is partly due to differing roof types and local safety requirements in Australia. The study authors suggest that efforts to streamline the pre-installation process, including equipment pickup, can help reduce U.S. solar costs.  Faster Racking Installation While Australian system components and finished products are similar to those of the U.S. market, differences exist regarding the sequence of activities and implementation of specific components. In Australia, bases and rails are ready to be installed with minimal preparation. Contractors have more efficient processes around array measurement and squaring, moisture protection installation for racking and mounting system base components, and preparation for clay tiles. Given the predominance of clay tile roofs in key U.S. markets, it is helpful to note Australian solar contractors’ expedited install process for them. They assemble bases prior to roof transfer or use a very simplified base design that requires very little assembling. They also opt for bases that self-seal or reduce the need for additional flashing and choose racking systems that require fewer base attachments and penetrations. Integrated or rail-less racking systems decrease installation times by removing an entire hardware component. In an effort to expedite the install process, the RMI/GTRI team is working on a new racking design that includes features like minimal base preparation, integrated string and grounding management, and no conventional rails. RMI and GTRI found that racking approaches that require less preparation and installation time have helped make one-day installs common in Australia. Simplified Electrical Procedures There are certain aspects of the electrical and monitoring systems that help expedite the installation process. Grounding and combiner box activities tend to have simplified component and overall system design. Australian contractors use grounding systems with a fewer number of contact points with the racking systems and choose combiner boxes that allow for a faster installation process. Off-roof electrical processes are also expedited, largely due to the use of fewer system output monitoring meters. American companies typically install two meters on a single PV system while Australian solar companies often don’t use any. The RMI/GTRI report states that “time spent on off-roof electrical activities to connect the solar array to the home electrical panel is consistently the highest (or tied for highest) cost area of any of the bucketed activities.” Given this, the team is developing PV-ready electrical circuits that would accept a single connection from a PV system. Conclusions By implementing processes that move them closer to a one-day installation, American contractors could see a $0.10/W reduction in total install cost according to the study authors. The RMI/GTRI authors state “the 9.4 labor hour per kW in the U.S. can be decreased to 7.1 if our key changes are undertaken to improve process efficiency and work towards a one-day installation goal.” High soft costs have been a stubborn problem in the U.S. solar market, hindering solar cost reductions that could make the technology accessible to more Americans. Applying some of the tactics that have contributed to greater installation efficiency in Australia could help American solar businesses put a significant dent in that vexing issue. ### NABCEP Executive Director Highlights New Developments As one of the most widely respected professional certification programs for the solar industry, the North American Board of Certified Energy Practitioners, more commonly known as NABCEP, plays an important role in establishing industry standards. Fresh off our recent attendance at the NABCEP Continuing Education conference in San Diego earlier this month, Aurora had the opportunity to speak with Shawn O’Brien, NABCEP’s Executive Director. Following up on our interview last year, our conversation explored recent developments in NABCEPs recertification requirements, trends that are being considered for future NABCEP program changes, and a recent grant NABCEP is involved in to help military veterans transition into solar careers. NABCEP Executive Director Shawn O'Brien Aurora Solar: NABCEP is changing its requirements for recertification. What’s changing, and how do these new requirements reflect changes in the solar industry? Shawn O’Brien: Some of the changes stem from the fact that the roles of individuals who previously obtained NABCEP certification have changed over the time that they've been in the industry. We recently conducted a survey that found that 26% of respondents opened up their own companies after getting their NABCEP certification. That underscores that roles really have changed; a lot of folks are no longer on the roof. Because of that, it’s not always possible for them to pull permits or get documentation to show that they've directly done installations. The Board has recognized that the industry as a whole is changing, as are the roles of individuals. What the board has done in the new recertification requirements is allow individuals to show other achievements that demonstrate that they're actively involved in the industry. For instance, instead of requiring three completed installations, certificants can submit a letter from their employer on company letterhead confirming that they are still actively involved in the renewable energy industry and describing their role. That can include holding a leadership role in an organization that's doing solar design, commissioning, maintenance, inspection, or another role like financing projects. We also have a lot of certificants who are full-time trainers, if they can show over a three year period that they've done 120 hours of full-time training that is another way to meet the industry involvement requirement. Of course, for people who are installing, they still have the option to use their completed installations in their recertification process. But the industry is growing up and it's time to recognize that not everyone is up on the roof, there are much more diverse roles. Additionally, in accordance with certification best practices, part of recertification involves making sure that the individual is maintaining current knowledge in the industry. For this reason, we require a certain number of continuing education hours. Another notable change to NABCEP’s recertification requirements is that we are now requiring 30 hours of continuing education during that three year recertification period, up from 18 previously. Aurora: What are some other industry trends that NABCEP is taking into account as it updates its programs? O’Brien: Two trends we’re thinking about are the growth of commercial and industrial projects and the trend towards solar plus storage. NABCEP originally started as a certification for residential solar installers. We want to make sure that NABCEP's certifications require the same level of expertise in commercial projects as those on a residential level, and that they provide the same assurance for the customer if they're a CFO instead of a homeowner. So we're also looking at certification requirements to make sure that the individuals being evaluated have that knowledge as well and not just residential. The other development we are thinking about is solar plus storage. Historically NABCEP certificants have been evaluated mainly just on the installation of solar, not so much on storage. These two industry trends require thought to ensure that individuals who are certified can work in those areas safely and effectively. Aurora: In partnership with several other organizations including the Solar Foundation and SEIA, NABCEP won a $2 million grant from the DOE’s Solar Energy Technologies Office to support military veterans in transitioning into solar careers. What are the key initiatives under this grant and how will NABCEP be involved? O’Brien: Yes, NABCEP is a sub-awardee on this grant; the prime grantee is The Solar Foundation. The program will focus on creating opportunities that help military veterans transition into careers in the solar industry. The awardees will be working on developing training and employment matchmaking for recent veterans. In my opinion, the key is to create a sustainable work program that allows veterans and active military personnel to find employment in the solar industry that matches and complements the knowledge, skills, and abilities that they developed in the military. It's very important that you don't just "find" veterans of the active military jobs. That would be easy to do. What we want to do is show them a pathway to a career. That's NABCEP's main goal; we don't want to get them into something that they're going to just do for three years. It's getting them on a path so that, for example, a few years after completing this program, they can become the owner of an installation company, a design company, an engineering company, whatever the case may be. There are several things that NABCEP will be doing under this grant. First, NABCEP will be working to get all of our certifications registered so that veterans will be able to use GI Bill funds to pay for them. We already have two certifications registered, and we will be working to get all of the other six eligible for the GI Bill. Another thing NABCEP will be doing is working with the cohort of over 200 community colleges and universities that are NABCEP-registered training providers. We will work with them to establish military-friendly programs that help veterans when they get into the community college or university. Another big focus for NABCEP is creating what we're calling a "fast track" for veterans and military personnel, allowing them to see use their Military Occupational Specialties, which reflect the training that they took in the military, to get NABCEP certified faster. Lastly, we’ll be then registering all our programs with something they call Army COOL, Credentialing Opportunities Online (or Navy COOL, etc.—they have it for all branches of the military). It’s an online certification system for active military. And we plan to offer the training and certification bundled together. We'll be working to create those bundles for active military members, so they can get the training and certification prior to actually separating from the service. Aurora: What would you like solar companies to know about this initiative? How can they get involved? O’Brien: The best way for solar companies to get involved is to respond when they see the calls going out about apprenticeships and employment matching, and to be open to helping to establish partnerships or work with us on matching for employment. At the next NABCEP conference, we will have programming geared towards hiring veterans. There's a lot of literature out there that employers are apprehensive about hiring and interviewing combat veterans. So there are a lot of ways that solar companies can make a difference by educating their hiring managers on working with veterans. ### Don’t Give Up Too Soon on Solar Leads or Referrals For a capital-intensive technology like PV solar, trustworthy information is imperative. That means prospects often “turn to trusted information networks made up of family, friends, and neighbors…[to] benefit from and tap into the knowledge stock of existing users.” This means that referrals from past customers can be a particularly effective source of solar leads for contractors. In a two-year study about customer acquisition in the solar industry, the National Renewable Energy Laboratory (NREL) found that it is common that solar contractors give up too soon on referrals from past customers, as well as some of their leads—whereas more persistence could generate additional sales. In this article, the seventh and final article in our 7 NREL-Backed Ways to Close More Solar Sales series, we look at strategies for long-term follow up with potential solar leads and referral sources. Periodic outreach to past customers can help maintain relationships that can generate future referrals. You may also want to occasionally follow up with solar leads that haven't closed, in case their circumstances have changed. Maintaining contact over the long term can help generate additional solar sales.  About This Series and the Research by NREL This Aurora Blog series examines seven common mistakes contractors make when selling solar identified by NREL, based on its 2014-2016 Solar Energy Evolution and Diffusion Study (SEEDS). In this study, NREL researchers aimed to ascertain why certain prospects adopt solar while others don’t, to provide solar contractors with insights to help lower the cost of customer acquisition. The study involved surveys of homeowners from four states who installed solar, considered solar, or did not consider solar to understand their decision-making process. Researchers also gathered input from approximately thirty contracting companies on their solar sales processes. Every article in this 7 NREL-Backed Ways to Close More Solar Sales series includes insights from an interview with one of the lead NREL researchers, plus information from the field and related research. In the first six articles of the series, we addressed rapid follow-up with solar leads, the need to avoid assumptions that prospects share your opinions about solar, not confusing customers with too many options, effectively addressing the competition, how to ask for referrals from customers, and keeping in touch with past customers. Why It Pays to Persist NREL stresses the importance of pursuing solar leads and referrals beyond when most solar contractors give up. Closing a sale with a prospect or securing a viable referral from a customer often requires persistence and strategy. Not Giving Up On Leads Too Soon NREL point out that most installers make the mistake of giving up on a lead within three months. Ben Sigrin, one of the NREL researchers, says that “sometimes installers have a touch point with a lead, and then if they get turned down they discard that lead or don't enter a reminder to follow up.” He talks about the need to stay in touch with prospects over the long term. This is because a prospect’s situation can change. “What is right for them one year may not be right for them the next year. Maybe the household just had a new child so their electricity has gone up, or maybe they have a little more free cash flow than they did last year.” By periodically reaching out over the long term you are more likely to be top of mind when a prospect is ready to go solar. People's needs can change over time; life events like a new child or a raise can make a solar purchase more relevant. Keeping in touch with old leads will help ensure your company is top-of-mind when they may be more ready to purchase.  Sigrin also talks about staying organized and being selective with prospect outreach. This means managing your data so that you are tracking prospects’ changes and your touch points with them. As a result, you are better able to make decisions about how and when to reach out. As Sigrin says, “If you can't measure it, you can't manage it.” Getting Referrals Later On Down The Line Sigrin says that solar contractors tend to make a similar mistake when seeking referrals from customers. He notes that they often stop trying to get referrals after about six months. “There are a lot of opportunities to win a customer or referral after the initial three to six months… the earlier you give up, the more money you might be leaving on the table,” says Sigrin. He suggests periodically asking for referrals over a long period of time: “we have heard of solar companies getting referrals from customers who had gone solar several years earlier.” Strategic Outreach Over the Long Term Additional sources confirm that persistent, strategic outreach for both leads and referrals can be beneficial. Matt Johnson, Residential Sales Manager at Namasté Solar, a leading employee-owned solar contracting cooperative based in Colorado, shared that his team has a systematic approach to staying in contact with prospects and existing customers over the long term. Johnson explains, "we definitely have ongoing email drip campaigns.[1] We do email marketing to our existing customer base as well as new customers on a periodic basis. Typically, we'll do a quarterly email reminding folks about our referral program.” He adds that his team is careful to make sure they don’t inundate people by sending them emails every month. It can be helpful to think of follow-up with solar leads and customers as having three elements: education that provides valuable information, repetition of the key messages you want to convey, and variety of channels such as direct mail, phone calls, emails, social media, and webinars. Using a combination of phone calls and emails can be particularly effective. A follow-up email after a phone call can include relevant company materials, like a case study showing how solar can solve the challenge of high electricity bills or a blog article about what differentiates your company. Finding a Balance When Following Up on Solar Leads There are certain methods that can work particularly well for lead follow-up. Sales teams often focus on the hottest leads, which may mean the “warm” ones get neglected. Dan Kennedy, business coach and author of the book No B.S. Ruthless Management of People & Profits, states that this can be problematic. “Instead of doing the tedious, follow-up grunt work, sales reps usually wait for a new batch of leads to come in. In the meantime, the warm leads from the last batch get cold, and they're soon forgotten.” It helps to strike a balance when deciding which kinds of leads to pursue over the long haul. Of course, it also helps to know when to walk away so that you don’t waste resources on a dead end. Sometimes a solar system is clearly not a good fit for a prospect’s budget, or they are just not sold on the ROI after repeated conversations and review of educational materials. Surprisingly, communicating that your outreach will cease can sometimes be what solicits a positive response. It may be that a prospect was busy but was interested and the communications you sent left a positive impression. Marketing company HubSpot writes that this can mean that the prospect was “relying on you, like every other salesperson, to keep trying to get in front of them.” HubSpot also points out that a final email is often the one that gets the highest response rate. Periodic emails or newsletters can be an easy way to stay in touch with past customers as well as solar leads.  Timing and Creativity When Pursuing Referrals Matt Johnson at Namasté Solar notes that their company has multiple points in their relationship with a customer where they reference the referral program. The referral program is mentioned during the proposal development process, at the time of the installation, and after the installation via follow-up email campaigns from their marketing department. Johnson highlights post-installation as a key time for follow-up requests for referrals, as customers may not be ready to refer until then. He states, "most people tend to be much more willing to make referrals once they see results and are satisfied." In an article based on the same 2014-2016 SEEDS study discussed in this series, NREL’s Ben Sigrin and several other researchers wrote that long-time customers tend to be the most valuable referral sources. They write that “it’s worth checking in with existing customers from time to time, especially the long-time ones who can attest to the long-term solar experience.” They also suggest being creative about how you ask customers to refer, given that people are busy. Customers may be open to placing a small sign on their lawn, posting a testimonial on social media, or hosting a solar party. While these aren’t direct referrals, they can be a great way for you to reach their network. In fact, one study estimates that increased peer-to-peer interaction, such as talking with a neighbor who installed solar, can potentially “decrease individual decision times by over six months.” Get creative about how you ask solar customers to refer others; a sign on their lawn or a recommendation on solar media can be as smaller ask with big results. Studies show peer-to-peer interactions about solar can decrease decision making time for people considering a solar purchase.  Additional Solutions for Outreach There are a variety of additional strategies to consider when staying in touch with solar leads and referral sources. Johnson talks about how Namasté Solar distributes a quarterly email reminding people about their referral program. You can send out periodic newsletters to customers with tips on deciphering bill and understanding savings as well as invitations to customer events and other opportunities. Test the frequency of your outreach to find what works best for your company and customers. Keep your prospect and customer database organized and use relevant tools, like a customer relationship management (CRM) software, to ensure systematic follow-up. Consider offering a robust referral program with incentives and encourage sharing via social media. You might also consider designating someone to keep your solar leads warm when sales staff is not actively reaching out to them. Kennedy writes that “every business has a lead generation department (marketing) and a lead closing department (sales), but they’re lacking a lead warming department.” No matter how you maintain contact with prospects and past customers, being in communication with them over the long term can be a valuable way to gain new customers.   [1] If you're unfamiliar with the term, a drip campaign refers to a series of messages sent on a predetermined schedule—typically a drip campaign is sent by email though it can also include other methods of outreach. They can be a great way to share information about your company and keep in touch with prospects over a period of time. About This Series: 7 NREL-Backed Ways to Close More Solar Sales Between 2014 and 2016 the National Renewable Energy Laboratory (NREL) conducted a Solar Energy Evolution and Diffusion Study (SEEDS) study. The study sought to better understand the decision making process of potential residential solar customers in to help solar industry professionals identify ways to reduce customer acquisition costs. Following completion of the study, NREL highlighted seven common solar sales mistakes identified in their research. In this seven-part series, we delve into each of these seven mistakes in more depth, based on a conversation with one of the lead NREL researchers, as well as on-the-ground perspectives from solar contractors and exploration of related research. Part 1. Boost Your Solar Sales Success With Faster Lead Follow Up Part 2. Avoid Lost Solar Sales by Understanding Leads’ Perspectives Part 3. Engage Solar Leads with the Right Use of Choice Part 4. How to Effectively Address the Competition in Your Solar Sales Part 5. Stop Missing Out on Solar Customer Referrals Part 6. Why and How to Keep In Touch with Past Solar Customers Part 7. Don’t Give Up Too Soon on Solar Leads or Referrals ### A Solar Design for Baseball Opening Day: The SF Giants’ Ballpark In honor of baseball opening day this week, we decided to model our local baseball stadium—Oracle Park, home of the three-time World Series championship-winning San Francisco Giants, in the latest installment of Aurora’s Solar Landmark series. In our Solar Landmark series, we use Aurora’s solar design and sales software to design solar installations for notable landmarks around the world—from Buckingham Palace to Independence Hall. Located just a few blocks from the Aurora office, Oracle Park (recently known as AT&T Park until this year) was straightforward to model using Aurora’s new Draw Roof Face tool. The stadium was opened in 2000, replacing the team’s former, notoriously windy, home at Candlestick Park. With beautiful views of the San Francisco Bay, the Giants’ ballpark is a leading tourist attraction in the city. Although the SF Giants don’t have their home opener for another week, we’re excited to welcome the return of baseball season. Read on to learn how we created a 3D model of Oracle Park in Aurora and created a solar design to match its existing solar arrays. Creating a 3D Model of the Giants’ Ballpark in Aurora When beginning to create our 3D model of the park—which would allow us to determine where solar panels would fit, as well as what areas get the most sunlight—first up were the stadium stands. We used Aurora’s Draw Roof Face tool, which allows you to draw individual surfaces, providing a simple option to quickly estimate the solar production of a roof face and produce a quick first pass quote to the customer. A top-down view of Oracle Park, home of the San Francisco Giants, as designed in Aurora solar software. Modeling these sections was a breeze with the Draw Roof Face tool since it automatically snaps to the LIDAR data for the site. Each of the single “roof” pieces can be manually adjusted if necessary as well. On the curved sections, we created multiple segments to match the curve of the field. You can see the process of creating a section of the stadium stands in the GIF below. The process of using Aurora Solar's Draw Roof Face tool to model sections of the stadium stands at Oracle Park, home of the SF Giants. We also modeled a few prominent features of the park, including the giant Coca-Cola bottle past the left-field bleachers, the field lighting (which was upgraded with LEDs recently, cutting energy consumption by 60%), and the palm trees scattered around the walkways. We also recreated the pitching mound using Aurora’s Draw Tree tool. By creating a sunken tree (setting the tree trunk to a negative height) we were able to create the mound. The distinctive Coca-Cola bottle at Oracle Park, recreated using Aurora solar software. Designing the Oracle Park Solar Array The next step in our process was to add the solar panels. (Normally one would assess the irradiance of the site before deciding where to put panels, but since the stadium has had a PV system installed since 2007, we opted to begin by recreating it.) Oracle Park’s PV system includes awnings along the waterfront walkway and a larger array above the staircases. High-definition Nearmap imagery captured last year (available through Aurora’s Nearmap integration) clearly shows where they have been installed. An aerial view of the solar installation at Oracle Park. Modeling the arrays in Aurora was simple. The large array above the stairwell can be modeled using the carport tool, the tilted system on the roof can be modeled using the module placement tool. To model the solar awnings, we used a pre-configured carport array. Here’s how easy it is to replicate awnings or carports with Aurora: Aurora allows users to create carport/ground mount templates, which will use specified arrangements of modules. This tool made it easy to design the solar awnings at Oracle Park. How Much Sun Do Different Parts of the Stadium Receive? With all of the buildings and features in place, we ran the irradiance map to see how much solar potential the site has (and how much sun your seats will get over the year). We noticed that the large rooftop arrays receive a lot of sunlight over the year, but some of the awnings lose out on afternoon sun due to shade from the upper deck of the stadium. An irradiance map or Oracle Park, home of the SF Giants baseball team. Aurora Solar software generates the irradiance map using local weather data and simulations of the sun’s path at every daylight hour of the year. Here’s the irradiance map running in real time (about 20 seconds): Calculating the irradiance at every point of a complicated structure like this stadium requires complex computation. Aurora Solar generates this data in about 20 seconds. This irradiance information gives some interesting insights for finding your preferred seating options. Seats along the 3rd base line and left field receive the most sunlight over the year, while the 1st base side is much more shaded. Thanks to the Sun Path tool, we can see that in August the first seats to get shade (at 4 pm) are behind home plate and the back-most seats in all three levels of the right-field side of the stadium. Meanwhile the left-field seats are sun-exposed until about 5 pm and the bleachers don’t get shadows until 6 pm. Of course, you can also use this feature to determine where to place panels in your new installation! Aurora’s Sun Path tool shows the movement of the sun through the sky at any time throughout the year—and the resulting shadows at your solar project site. Having determined the irradiance at different parts of the stadium, we were able to use Aurora’s Performance Simulation tool to estimate how much energy it produces in a typical year. Aurora reveals that the system produces about 191,694 kWh per year (191.694 MWh). Based on that, in the 12 years since the installation, we estimate that the PV system has produced enough energy to offset about 1,000,000 lbs of CO2, based on CA emissions of around 452.5 lbs CO2 per MWh. And there you have it—the process of designing a solar installation for Oracle Park! Do you have other favorite landmarks you’d like to see solar designs for? Let us know in the comments below! ### Why and How to Keep In Touch with Past Solar Customers Given the nature of a PV solar system, a solar contractor’s past solar customers are one of their best marketing resources. This is because, for many people, solar is an unfamiliar technology and they have a fear of making the wrong decision about it. As a result, people “often turn to their friends and neighbors to find out if their experience was positive and whether the return in energy savings is worth all of the effort.” It is not surprising then that word-of-mouth can be a significant source of solar leads. According to Nicole Litvak, Solar Analyst at Wood Mackenzie Power & Renewables (formerly GTM Research), in 2015 50% of all residential solar sales were derived from referrals. This makes it all the more important for solar companies to stay in touch with their customers after the PV system is installed, as this can ensure more referrals. Since leads are such a valuable commodity for solar contractors, it is vital to avoid the mistake of losing contact with past customers, particularly ones who have had their system for a long time. In this article, Part 6 in our 7 NREL-Backed Ways to Close More Solar Sales series, we examine reasons and strategies for staying in touch with your customers. About This Series and Related NREL Research In this Aurora Blog series, we take a closer look at seven common mistakes contractors make when selling solar identified by the National Renewable Energy Laboratory (NREL). These observations are based on NREL’s Solar Energy Evolution and Diffusion Study (SEEDS) conducted from 2014-2016. In the study, NREL sought to understand why certain prospects adopt solar while others don’t, to provide solar contractors with insights to help lower the cost of customer acquisition. The researchers surveyed homeowners from four states who installed solar, considered solar, or did not consider solar to understand their decision-making process. They also gathered input from approximately thirty solar contracting companies on their sales processes. Each article in this 7 NREL-Backed Ways to Close More Solar Sales series includes observations from an interview with one of the lead NREL researchers, plus insights from the field and related research. In the first five articles of the series, we examined the need for quick follow-up with solar leads, avoiding assumptions that prospects share your opinions about solar, not confusing customers with too many options, addressing the competition effectively, and ways to ask for referrals from customers. The Importance of Staying in Touch Ben Sigrin, one of the NREL researchers involved in the study emphasizes the usefulness of being in contact with past solar customers, especially early ones. He notes that “staying in touch with all previous customers—even if only occasionally—can provide you with a wealth of testimonials and the trust they confer on your business.” NREL also points out that strong referrals and testimonials are particularly important for solar businesses. This is because a solar system is not something a customer can test out before buying. Sigrin states that the solar customer “faces an all-or-nothing proposition: either you bolt a solar array onto his house or he can't experience it all.” As a result, more weight is given to referrals, especially ones from customers who have had a system for many years. These longtime solar system owners can credibly address concerns a prospective customer may have about reliability, maintenance, and ROI. Stay Front of Mind To Ensure Referrals Additional research supports the importance of referrals given the nature of solar as a product. Terence A. Shimp’s Integrated Marketing Communications discusses the extent to which “trialability,” or the ability to test drive a product, helps increase adoption of innovative technology. Shimp asserts that products that can be tested prior to purchase are adopted more rapidly. He writes that “the trial experience serves to reduce the consumer’s risk of being dissatisfied with a product after having permanently committed to it through an outright purchase.” Unfortunately, this trial experience is not possible with solar. However, Shimp goes on to state that another key element to easier adoption of innovative technology is observability, “the degree to which...other people can observe the positive effects of new-product usage.” When a product, and its benefits, are clearly visible to others, the consumer becomes a kind of billboard for the product. While a person observing a solar system on their neighbor’s roof does not directly see the positive impacts on their neighbor’s electric bill, the system does function as a highly visible reminder of the benefits of solar. Ultimately, you want to be front of mind when that neighbor asks your customer about their PV system. One of the best ways to do this is to stay in touch with your customers. Staying in touch with past customers over the long term gives you access to their success stories, a very strong form of solar marketing. Residential and commercial case studies humanize your brand and are a powerful way to engage prospects since “happy customers are often the best, and most authentic, spokespeople for your company.” A well-presented residential success story helps prospects identify with homeowners who have already adopted solar, “allowing them to better visualize what their lives will look like once they make these changes.” This makes it easier for the customer to move further along in their buying process. Commercial case studies show firsthand the financial benefits and help demystify the solar education process. The easiest way to gain access to these stories, whether presented as short blog posts, longer articles or brief testimonial blurbs, is by maintaining consistent contact with your customers over time. Strategies To Maintain Long-Term Customer Relationships There are a number of ways to stay top-of-mind with your customers. One effective method of staying in touch is by sharing valuable content, such as solar and renewable energy-related news, articles, and events. You can share these insights through social media, email, or direct mail like a quarterly newsletter. However you reach out, aim to strike a balance between enough outreach to be remembered without becoming annoying. It can also be effective to personalize your communication with details about your customer that are outside the business relationship such as birthdays, promotions, family news, or milestones. Your sales teams may consider occasionally reaching out for personal contact via a phone call, something that may help ensure future leads. A customer relationship management (CRM) tool, such as Salesforce or Zoho, can help your team organize their efforts and information about past clients to keep outreach consistent, particularly over the long term. You can also encourage customer sharing via social media and a referral incentive program. Offering additional services like operations and maintenance, monitoring, and upsell opportunities can extend the relationship and increase customer lifetime value. No matter how you connect with past customers, staying in touch with them beyond the installation can be a significant boon for your solar business. How do you stay in touch with past customers? Let us know in the comments below! About This Series: 7 NREL-Backed Ways to Close More Solar Sales Between 2014 and 2016 the National Renewable Energy Laboratory (NREL) conducted a Solar Energy Evolution and Diffusion Study (SEEDS) study. The study sought to better understand the decision making process of potential residential solar customers to help solar industry professionals identify ways to reduce customer acquisition costs. Following completion of the study, NREL highlighted seven common solar sales mistakes identified in their research. In this seven-part series, we delve into each of these seven mistakes in more depth, based on a conversation with one of the lead NREL researchers, as well as on-the-ground perspectives from solar contractors and exploration of related research. Part 1. Boost Your Solar Sales Success With Faster Lead Follow Up Part 2. Avoid Lost Solar Sales by Understanding Leads’ Perspectives Part 3. Engage Solar Leads with the Right Use of Choice Part 4. How to Effectively Address the Competition in Your Solar Sales Part 5. Stop Missing Out on Solar Customer Referrals Part 6. Why and How to Keep In Touch with Past Solar Customers Part 7. Don’t Give Up Too Soon on Solar Leads or Referrals ### Using Computer Vision for Remote Solar Site Measurements When designing a solar project for a prospective customer, you know it’s important to get the details right. That helps ensure that the design you propose to them is the design that actually gets installed—without the need for costly and time-consuming design changes, as might be the case if you thought that more panels would fit on a particular part of their roof, for instance. But, in the increasingly competitive solar industry, speed is also of the essence. You need to follow up as soon as possible to maximize your chances of winning the customer’s business. That means that driving to the site and taking manual measurements may not be practical, particularly if the customer is far away. (Not to mention, you could save time and money by avoiding the trip.) It’s this very challenge that Aurora was founded to solve, and we’ve been hard at work developing many new software technologies that make it possible for solar contractors to accurately design solar installations without the site visit, from NREL-validated remote shading analysis to providing access to LIDAR data and crisp aerial imagery to cutting-edge roof drawing tools. This month, Aurora is excited to announce a new tool that gives solar contractors another way to get accurate measurements of elements of the project site: Street View Ruler.   Aurora’s Street View Ruler makes it easy to take site measurements without actually being at the site, so you can ensure that you can fit as many panels as expected and that the pitch of the roof is what you think it is (this can affect how much energy your PV system produces). Street View Ruler The Street View Ruler leverages computer vision, or the use of computers to interpret images. As we discussed in our overview of computer vision and how Aurora uses it to improve the solar design process, one application of computer vision is to calculate measurements using multiple images of a site. This new tool, which builds upon prior advances by the Aurora computer vision team, offers a simple and easy-to-use method for taking accurate measurements of the project site from the comfort of your desk. Behind the scenes, the computer vision approach that the Street View Ruler uses is the mathematical process of triangulation. Commonly used in nautical navigation, triangulation allows you to determine the distance to an object if you know the direction from two known locations. In this case, satellite imagery and Street View imagery provide the two different views of a site. Because these imagery sources include the camera positions and angles, measurements can then be extracted from the images. With this tool, solar designers can measure distances—like the height of a tree or width of a roof face—and slopes—like the pitch of a roof. To do so, the designer identifies the points they want to measure, in two different images of the site: the Street View image and a top-down satellite or aerial image. By indicating to Aurora which points correspond to each other in the images from two different angles, Aurora’s computer vision engine can perform triangulation and generate an accurate measurement. Key Features Several teams worked together to develop this tool. Our UI/UX (user interface/user experience) team worked to create a workflow that would be intuitive and minimize chances for confusion, while our Front End engineers Carl Olsson and Kelly Stevens worked to create the tool using the computer vision measurement functionality that our computer vision team had developed. In-App Instructions As you use the Street View Ruler, prompts on the screen guide you through the process. This makes it faster to learn and helps to minimize the chance of missing a step that would impact your measurement. As you use the Street View Ruler, prompts guide you through the process to ensure correct usage. Numbered Points to Match Street View and Top-Down Measurements Numbered points make it easy to ensure that you’re lining up the points correctly between the Street View image and the top-down satellite/aerial view of the site. To allow Aurora’s Street View Ruler to take measurements using triangulation, place each numbered point on the spots you would like to measure in both top-down and street-level views of the project site. Camera Animations Offer Enhanced Visualization Another feature of the tool is camera animations in which Aurora automatically aligns the 3D view of your site model with the perspective of the Street View camera once you’ve taken your measurements. Once the measurement is complete, Aurora automatically rotates the view of your project site to match the street-level view, allowing you to get a better sense of the area you measured. As Carl Olsson, one of the software engineers who built the Street View Ruler, explains, “Once you're done creating a measurement, the top-down camera view will rotate to the direction of the street view camera. I think that makes it easier for users to understand the measurement they've just created and how it correlates with the Street View.” Street View Ruler is another tool in your toolkit for ensuring accuracy and precision in your solar designs for customers while saving time by minimizing the need for time-consuming and costly visits to the site during the design stage. Let us know in the comments below how you’re using the Street View Ruler! ### Stop Missing Out on Solar Customer Referrals Solar is a highly competitive industry and a chronic issue for contractors is the high cost of customer acquisition. While the average cost of customer acquisition is $2,000-4,000, solar companies typically pay about $500 per referral, making referrals an affordable source of high quality, exclusive solar leads. Additionally, according to Nielsen, 83% of surveyed consumers say recommendations from people they know are their most trusted source of information. But it’s not always straightforward how to get referrals. You might ask customers to keep referrals in mind but your request is easily forgotten. The customer may not think about their PV system on a daily basis or know how to identify good candidates for solar in their network. However, there are ways to increase the likelihood of referrals, many of which involve the way you follow up. In this article, Part 5 in our 7 NREL-Backed Ways to Close More Solar Sales series, we address effective strategies for asking for referrals from customers. The NREL Study and This Series This Aurora Blog series looks at seven common mistakes contractors make when selling solar according to the National Renewable Energy Laboratory (NREL). NREL’s observations are based on its 2014-2016 Solar Energy Evolution and Diffusion Study (SEEDS). The NREL study was conducted to understand why some prospective customers adopt solar while others don’t—in order to offer insights to help solar contractors lower their customer acquisition costs. NREL researchers surveyed homeowners from four states who installed solar, considered solar, or did not consider solar, and also gathered insights on sales processes from interviews with approximately thirty solar contracting companies. In each article in this series, we offer insights from an interview with one of the lead NREL researchers, as well as observations from the field and related research. In the first four parts of the 7 NREL-Backed Ways to Close More Solar Sales series, we looked at following up quickly with solar leads, not assuming prospects share your opinions about solar, being careful to avoid confusing customers with too many options and how to address the competition effectively. Learning how to ask for referrals effectively can help you generate a pipeline of cost-effective new leads.  Strategies for Success When Asking for Referrals The NREL researchers state that many sales reps don’t actually ask for referrals, or ask ineffectively, such as by using timid phrasing or only asking in passing. It helps to be strategic about how you approach the process of asking for referrals to maximize success. Find the Right Timing In our interview with NREL researcher Ben Sigrin, he highlighted that understanding the optimum time to ask for referrals is important. He notes that NREL’s study asked questions like “do referrals tend to be generated immediately after the contract is signed, after the first month of interconnection, or years after interconnection? And how does the quality of the referral depend on that?” Sigrin asserts that contractors should be sure to ask about referrals after the system is activated and beyond. He describes the customer’s perspective in this way: “If I'm referring someone before my system is connected, then I don't have any experience about whether the system is performing according to my expectations. But if I have had it for several years, then I am probably a more reliable source of information for my friends and family, because I can speak to how it's actually performed over the last few years.” Therefore, says Sigrin, consistent, long-term follow up is key, whether in the form of a periodic check-in, a “solar party” or other event with your customers, or physical reminders like a referral card or gift. Pamela Cargill, former Principal of solar management consulting firm Chaolysti, concurs, noting that the best time may be after the installation is complete and the customer has received the first utility bill showing solar savings so “you’re likely to catch them on a high note.” It also helps to think of the customer relationship as one that exists over the long term, beyond the installation. Matt Johnson, Residential Sales Manager at Namasté Solar, a leading employee-owned solar contracting cooperative based in Colorado, points out that having multiple touch points leading up to and after installation helps capitalize on the fact that “most people tend to be much more willing to make referrals once they see results and are satisfied.” Engage the Customers That Want to Refer Namasté Solar's Matt Johnson also notes that, to increase the likelihood of referrals, it is important to identify customers who are most likely to refer and focus your efforts on them. He reports that Namasté Solar’s market research has revealed that although some people “are never going to refer anybody just because they don't make referrals for anything,” an estimated 20% of customers will refer more than one person. He calls these people “solar advocates.”  Some solar customers—who Matt Johnson, Residential Sales Manager at Namasté Solar refers to as "solar advocates"—are likely to refer a disproportionate number of customers. It may make sense to focus additional efforts on making sure these strong proponents are empowered to refer.  Johnson describes how Namasté Solar takes note of these customers’ willingness to refer. “We try to mark those individuals in our system when our sales staff or project managers feel like they're a solar advocate. We then direct more of our marketing efforts towards those people, reaching out to them more proactively to try and help them generate even more referrals.” He adds that providing a cash incentive for referral is effective as well. NREL’s 2014-2016 SEEDS research also looked at the willingness of solar customers to refer others. Writing in GTM, several of the study's authors including Sigrin, report that in their survey of 1,662 solar adopters 80% reported making referrals (the median amount being three). While they acknowledge that the customers in their survey may have been “early adopters”—who could be more likely to refer—it’s clear that effectively asking for referrals could result in a lot of new business opportunities for your company. Other research has also found that many businesses fail to take advantage of consumers’ willingness to refer. A Texas Tech study found that 83% of satisfied customers are willing to refer others, but only 29% actually do, partly because they were never asked to do so. Don’t assume that good service alone will result in a referral without asking or let discomfort get in way of the ask. The inbound marketing experts at HubSpot suggest a substantial percentage of your customers are willing to have a conversation about referrals, “but not unless you bring it up. Not all of them will give you referrals on the spot, but some will do so over time.” Six Solutions to Maximize Solar Referrals In addition to asking for referrals at the right time and trying to identify the customers that are likely to be your biggest advocates, there are a number of different strategies to consider that may make it easier to get referrals. Here are a few tactics you may want to consider as you work to increase the number of clients you get through referrals. 1. Experiment with Other Phrasing Consider other language aside from the word ‘referral.’ This could mean asking questions like, “Is there anyone else I might be able to help?”, “Do you know anyone else who would want to learn about solar?”, or “Who do you know that’s concerned about their electric bill?” 2. Provide a Template If your client is interested in referring but not sure where to start, they may appreciate pointers on what to say or how to approach the topic. You could suggest that they share their experience on their social media platforms with photos or feedback about the install process or their bill savings (or provide them with nice photos or sample language if you want). 3. Make Your Content Easy to Share Making your content, like blog posts and case studies, sharable is a great way to tap into your customer’s networks and maybe spark some conversations about their experience. Add a 'Share This With a Friend' link to the educational and marketing information that you provide to customers. 4. Create Incentivized Customer Loyalty or Referral Programs As Johnson notes, referral programs with incentives can be helpful. To support this, you could consider creating your own referral app to offer customers or using an existing one like GetTheReferral. Some companies include solar system monitoring and review capabilities as well with these apps. 5. Deliver Top-Notch Service Another strategy is to simply deliver an excellent customer experience because when this happens, customers are much more likely to provide a referral. Meet or exceed a customer’s expectations during all stages of the installation, including before and after. Pam Cargill states that “making customers feel comfortable involves spending a lot of time educating and communicating with them…[ensure] the expectations you set during the sales process are true, realistic and carried through during project delivery.” Ultimately, she asserts, it is a satisfying customer experience and not the sales process that will be “more likely to lead to them referring.” 6. Keep in Touch Finally, as discussed above, make sure to stay in touch over time. Carefully manage the timing of your follow up throughout the sales process and after the install. Cargill suggests finding where you can automate certain aspects of the communication process during sales to help you track how often the follow up occurs. Additionally, look to set reminders in the calendar or CRM to ensure that your team will periodically check in with customers.  As NREL’s Sigrin puts it, “installers should look to keep high levels of customer satisfaction and find ways to solicit referrals from customers” including finding“ways to reconnect and remind their customers without unnecessarily annoying them." This, he says, is good business practice. Given how referrals can provide a very cost-effective source of solar leads in an industry with high customer acquisition costs, having powerful strategies for making your customers a good source of referrals can be vital to your company’s success. Have you found other approaches to getting more referrals? Let us know in the comments below! About This Series: 7 NREL-Backed Ways to Close More Solar Sales Between 2014 and 2016 the National Renewable Energy Laboratory (NREL) conducted a Solar Energy Evolution and Diffusion Study (SEEDS) study. The study sought to better understand the decision making process of potential residential solar customers to help solar industry professionals identify ways to reduce customer acquisition costs. Following completion of the study, NREL highlighted seven common solar sales mistakes identified in their research. In this seven-part series, we delve into each of these seven mistakes in more depth, based on a conversation with one of the lead NREL researchers, as well as on-the-ground perspectives from solar contractors and exploration of related research. Part 1. Boost Your Solar Sales Success With Faster Lead Follow Up Part 2. Avoid Lost Solar Sales by Understanding Leads’ Perspectives Part 3. Engage Solar Leads with the Right Use of Choice Part 4. How to Effectively Address the Competition in Your Solar Sales Part 5. Stop Missing Out on Solar Customer Referrals Part 6. Why and How to Keep In Touch with Past Solar Customers Part 7. Don’t Give Up Too Soon on Solar Leads or Referrals ### How to Effectively Address the Competition in Your Solar Sales These days the American solar industry is highly competitive. GTM points to “intense competition” as one cause of rising customer acquisition costs since installers "spend more money to win a bid." Addressing the competition is a necessary part of most solar sales conversations. However, talking about the sales competition in your conversations with prospects takes careful thought. This is particularly true given the sensitivity of the subject and the fact that prospective customers may not yet be sold on solar itself, let alone who will install it. GTM reports, “solar companies are far more likely to lose considerers to uncertainty and doubt than to other competitors.” Avoiding mistakes in your conversations with prospects, particularly with regard to how you discuss your sales competition, is important given the challenges of customer acquisition. In this article, Part 4 in our 7 NREL-Backed Ways to Close More Solar Sales series, we look at how to effectively address the competition in your solar sales conversations. The NREL Study and This Series In this Aurora Blog series, we examine seven common mistakes contractors make when selling solar. These mistakes were identified by the National Renewable Energy Laboratory (NREL) based on its 2014-2016 Solar Energy Evolution and Diffusion Study (SEEDS) study. NREL’s 2014-2016 SEEDS study was conducted to ascertain why particular prospects adopt solar while others don’t, to provide solar contractors with insights to lower customer acquisition costs. It surveyed homeowners from four states who installed solar, considered solar, or did not consider solar, to understand factors that affected their decision making. It also included input from approximately thirty solar contracting companies. In each article in this series, we share observations from an interview with one of the lead NREL researchers, as well as insights from the field and related research. In the first three parts of the 7 NREL-Backed Ways to Close More Solar Sales series, we focused on the importance of quick follow-up with solar leads, not assuming prospects share your opinions about solar, and not confusing customers with too many options. Choosing the Right Time to Bring Up the Sales Competition NREL researcher Ben Sigrin discusses the perils of criticizing the competition before the customer is completely sold on the idea of going solar. The researchers acknowledge the need to “sell against the competition” but state that “doing so when solar prospects are not fully engaged with solar will hurt not just your competitor, but you, too.” He suggests that understanding the stages of a prospective customer’s decision-making process can help contractors address competition effectively. He describes the idea that awareness and interest come before the evaluation process, when customers weigh options like which contractors to go with. Ushering a customer beyond the awareness stage means avoiding scare tactics. As Sigrin acknowledges, “no doubt, it's tempting to try to get to the customers first by spiking the other guys' offer with some good, old-fashioned F.U.D.—fear, uncertainty, and doubt.” But he emphasizes that using such tactics in your sales strategy is more likely to scare prospects away from going solar altogether. Understanding The Customer’s Decision Making Process Research has shown the value of knowing the customer decision making stages. The fundamental idea is that a consumer moves through various stages on their journey to making a purchase in a sales conversation. A funnel is a helpful metaphor for understanding how this process occurs. That’s because as consumers move through the stages, the number of viable customers decreases. The select ones that reach the bottom of the funnel have progressed to the point where they are ready to make a purchase. The stages as they relate to solar are: awareness (about solar and what it can provide), interest (enthusiasm about the idea of going solar and/or feeling it is feasible for them), decision (assessing various vendors), and action (committing to buying a system). A final stage would be advocacy (acting as an ambassador for solar adoption). In your solar sales conversations, try to get a sense of where your prospect might be. This can help you and the members of your sales team address their needs and avoid any missteps. This is particularly useful given that prospects are likely coming to the conversation from different points. A Sales Strategy That Focuses on the Relationship Studies reveal that it might be worthwhile to consider not bringing up competitors at all or avoiding being too negative. You may want to think about keeping the criticism brief and carefully consider how you want your team to approach the sales competition when they do discuss it. Your team may want to focus more on establishing a positive relationship than disparaging competitors. “Your prospect doesn’t want to know why someone is bad; they want to know why you’re the person they should work with. By focusing your sales strategy on how you can help prospects achieve their goals, you’ll earn their trust and show them why nobody can compete with you,” according to LinkedIn. Linda Richardson, founder of the sales training firm Richardson and author of numerous books on sales, describes two important aspects of selling against the competition. One is knowing how your offering differs from that of the competition so that a customer might find your product or service more attractive. The other is guiding the conversation with a prospect so that the superiority of your offering becomes clear. Richardson recommends that you avoid bad-mouthing a competitor because it can give the impression of pettiness, making your competitor look good in comparison. Instead, consider asking questions about your customer’s needs that get the prospect thinking about differences in how you and competitors would meet those needs. For instance, are they looking for a personal touch from a local company that you can deliver better than some larger competitors? Writing in Forbes, author and sales expert Ian Altman agrees that focusing on what the customer needs is more effective than bashing the sales competition. He emphasizes that you want customers “to select you because they feel you best understand their situation and they see you as most likely to deliver the best value”—not because they felt there were no other good options. Solutions for Success As a salesperson, learning how to understand where the customer is in the decision-making process is a good first step in finding the right time to address competition in the conversation. This might mean asking certain questions, or identifying signs that they have moved beyond the early stages and are ready for more detailed information about making the purchase. These signs could include asking questions about pricing and terms or what solar is capable of in some scenario related to their specific situation. Whatever you choose to do, be cautious about disparaging the competition and focus on positively highlighting the unique value your company adds. This can go a long way towards avoiding missed sales opportunities. About This Series: 7 NREL-Backed Ways to Close More Solar Sales Between 2014 and 2016 the National Renewable Energy Laboratory (NREL) conducted a Solar Energy Evolution and Diffusion Study (SEEDS) study. The study sought to better understand the decision making process of potential residential solar customers to help solar industry professionals identify ways to reduce customer acquisition costs. Following completion of the study, NREL highlighted seven common solar sales mistakes identified in their research. In this seven-part series, we delve into each of these seven mistakes in more depth, based on a conversation with one of the lead NREL researchers, as well as on-the-ground perspectives from solar contractors and exploration of related research. Part 1. Boost Your Solar Sales Success With Faster Lead Follow Up Part 2. Avoid Lost Solar Sales by Understanding Leads’ Perspectives Part 3. Engage Solar Leads with the Right Use of Choice Part 4. How to Effectively Address the Competition in Your Solar Sales Part 5. Stop Missing Out on Solar Customer Referrals Part 6. Why and How to Keep In Touch with Past Solar Customers Part 7. Don’t Give Up Too Soon on Solar Leads or Referrals ### Solar for New Construction: Solutions to Enter a Key Emerging Market Traditionally, for rooftop solar installations, solar is added on to an existing building. But a vast new solar market is emerging in recent years: solar for new construction. In fact, in California alone—where the state building code will require solar on all new homes starting in 2020—solar demand is expected to increase by over 800 MW from 2020-2023 due to this market. This regulatory trend is not just limited to California, however. Cities from Arizona to Florida have made similar solar requirements. Watertown, Massachusetts moved to require solar on new commercial buildings larger than 10,000 square feet and all new residential structures with ten or more units. Other jurisdictions may roll out similar policies as cities and states around the country make increasingly aggressive commitments to clean energy. This is great news for solar contractors. But to access this new class of customers, solar contractors need new solar design and sales strategies. Traditional methods tailored to existing buildings fall short in several key ways. In this article, we highlight the ways that solar design for new construction differs from traditional solar design. We also share real strategies and tools for designing and selling stunning solar arrays for new buildings—whether residential or commercial—so you can confidently pursue opportunities in this new market segment. How is Solar Design for New Construction Different from Traditional Solar Design? Designing solar for a building that’s not yet built differs from traditional solar design in three key ways. Without an existing building, it can be difficult to know how many solar panels will fit on the roof or other parts of the site and determine the best location for the array. To determine how much energy the solar installation will produce—and whether solar is even a viable option—it is critical to understand how much shade will fall on different parts of the site. This assessment is complicated by the lack of an existing building. Finally, without imagery of an existing building, salespeople need new options to communicate to the customer what the solar design will look like. Fortunately, there are solar software tools contractors can utilize to overcome these barriers. Designing Solar for New Construction: Overcoming the Challenges Let’s explore the three critical differences in solar design and sales for new construction versus existing buildings, and the solutions solar contractors can employ to enter this new market. Challenge 1: Determining the Appropriate PV System Size and Location How do you determine the best locations for solar panels and the number that will fit on a roof when the building you’ll put them on doesn’t exist yet? Naturally, traditional approaches based on on-site measurements or remote site assessment using satellite imagery are not an option. Fortunately, with the right solar software solar contractors can import roof plans or blueprints to serve as the basis of creating a virtual 3D model of the project site. With an accurate site model, contractors can easily determine how many solar panels will fit on different roof faces and get a better sense of where it would make sense to locate an array. Aurora Solar allows you to import roof plans of a future building, scale them to an accurate size, and situate them on the property. From there, it’s easy to create an accurate 3D model of the building on which to design a solar installation and accurately estimate it’s energy production. This allows solar contractors to enter the fast-growing market of solar for new homes and buildings. In Aurora’s solar software, solar contractors can upload the roof plan as an image and then scale it to the correct size based on the specified dimensions in the building plan. Since there is not yet an address for most of these new construction sites, the contractor can input the geographic coordinates of the project to situate it in the actual location where it will be built. One of the things Aurora Solar has pioneered that makes this process much simpler is SmartRoof, a design tool that infers the 3D structure of a building based on the 2D outline of the roof. Adjustments can be made to ensure the inferences match the roof plan, but the manual work needed to create an accurate 3D model on which to design the solar array is significantly reduced. Aurora’s SmartRoof tool infers the 3D structure of a roof based on its perimeter, streamlining the solar design process. Additionally, Aurora’s ruler tool—which provides measurements of different parts of the project and site model—makes it easy to double-check that the site model matches the construction plans. Challenge 2: Assessing shading and solar access values Perhaps the biggest challenge of designing a solar installation for a building that has not yet been constructed is getting an accurate understanding of how much solar energy will be available on different parts of the roof or surrounding property. As we explain in our blog post on how irradiance is calculated, any structure that may cast a shadow at any time throughout the year—from a chimney to a nearby tree—can impact the solar irradiance on the site. Without accurate solar access values and shade measurements, you cannot accurately estimate how much energy the solar installation will produce. Fortunately, Aurora makes it simple to accurately calculate all of these values.  An example of an irradiance map, generated by Aurora. Brighter colors indicate greater solar irradiance. Because geographic coordinates are used to situate the site model in its real future location, you can review satellite imagery of the property to identify and model trees and surrounding objects that may impact the amount of sunlight that reaches the roof. Additionally, actual local weather data is used in simulating how much energy the system will produce. With the creation of a precise 3D model of the future building and other features of the project site, Aurora can simulate the movement of shadows on the site for every hour of the year and give precise irradiance values for each part of the site. This approach allows you to be confident in the accuracy of your energy production and utility bill savings estimates for the project. Challenge 3: Visually showcase the solar design for the buyer A further challenge of designing solar for new construction applies at the sales stage. How do you show the customer what the design will look like? The aesthetics of the solar design are likely to be a significant concern for the prospective customer, especially in the residential market. An example of a 3D model of a future home as rendered in Aurora solar software. These kinds of visuals can help the customer understand what your solar design will look like and feel more comfortable knowing how it will impact the aesthetics of the building. As the home construction and solar markets intersect in California—where new homes will be required to have solar starting in 2020—other players like architects and home builders will also need tools to present solar information including the appearance of the building. To see how Aurora makes this easy, sign up for a free demo to see the software in action! Without being able to visualize how solar will affect the appearance of their future building, the customer may be more hesitant about a solar purchase. Fortunately, creating a realistic 3D model of the project and site makes it easy to showcase and sell your solar design. Aurora offers a variety of compelling and customizable solar sales proposal templates. You can include a variety of different views of the solar project to help them feel at ease with the appearance of the project you’ve designed. Building upon the approaches we pioneered to enable accurate remote solar design, Aurora Solar is delivering solutions that let solar contractors effectively serve the emerging solar market for new buildings. To learn more about solar design for new construction, with live demonstrations of the processes discussed above, join our webinar with PV Magazine on March 20, 2019 at 10AM Pacific Standard Time/1PM Eastern Standard Time! You can also check out our past webinar with Solar Power World, which explores this topic from the perspective of California’s Title 24 mandate of solar on new homes. ### Engage Solar Leads with the Right Use of Choices Have you ever done an Amazon search and ended up so overwhelmed by the number of choices that you just gave up or decided to shelve the search until later? Ever landed on a homepage of a website with so many options you didn’t know where to click? That same phenomenon can apply in solar. Contrary to what you might expect, too many choices can actually be harmful when selling solar. While offering a large number of solar choices might sound like service to a prospective customer, in reality too many options can make decision making difficult and lead to fewer solar sales. Solar leads are a valuable and often expensive commodity, so it is important to be aware of mistakes—like overwhelming prospects with too many choices—that can interfere with closing the sale. In this article, Part 3 of our 7 NREL-Backed Ways to Close More Solar Sales series, we examine why giving a customer too many options in a solar sales conversation can be problematic. About This Series and Related NREL Research In this series, we look at seven common mistakes contractors make when selling solar identified by the National Renewable Energy Laboratory (NREL) in a study conducted from 2014 to 2016. This Solar Energy Evolution and Diffusion Study (SEEDS) study was conducted to learn more about why certain customers adopt solar while others don’t, in order to help solar contractors lower customer acquisition costs. The study surveyed homeowners in four states and worked with approximately thirty solar contracting companies. It also included the application of mathematical modeling and testing. It was conducted by NREL, Lawrence Berkeley National Lab, and behavioral scientists and psychologists at a variety of universities, with funding from the Solar Energy Technologies Office at the US Department of Energy. In our series on the seven common solar sales mistakes identified from this research, we explore each one in more depth based a conversation with one of the lead NREL researchers, related research, and real-world perspectives from solar contractors. In the first two parts, we discussed the importance of quick solar lead follow-up and avoiding assumptions that solar leads share your opinion about solar. The Right Number of Options In almost every solar sales conversation, understanding the perspective of your solar lead is essential. According to NREL’s findings, a key component of that is finding the approach that offers them enough options without inundating them. Ben Sigrin, one of the lead researchers on the study, asserts that "people tend to assume that more actions are better, but—and I'm sure many people can relate to this—sometimes having more options is confusing and can be overwhelming.” He points out that for a wavering prospect, feeling the pressure to make a whole lot of decisions can push them to default to inaction or to stick with what they know—getting their electricity from the utility. Sigrin does emphasize that prospects often want solar choices, just not in excessive amounts. He says, “sometimes I think it is in the salesperson's best interest to define a few options that show different ends of the spectrum and not overwhelm the customer with choice." It’s wise to tailor the options you offer to the particular solar lead, since customers who are less knowledgeable about solar tend to want more direction, while more sophisticated customers may appreciate a wider range of options. Tyson Peschke, Co-Founder and Chief Revenue Officer of Blue Raven Solar, agrees with the idea that it is important to avoid overwhelming prospects with too many choices. Blue Raven Solar is a leading solar installation company operating in ten states. He says his sales team keeps it simple to engage customers and establish trust. “You don't want to explain to customers how 10 different panels work so they think they have to choose the one that best fits them,” Peschke explains. “You want to let them know that ‘panels are basically the same, except for, say, these two things. And we've chosen these two panels because we feel like they represent the best value’.” He says that this kind of approach sets prospects up to trust you—the contractor—because you are helping to reduce the number of decisions they need to make so they can focus on the ones that really matter. The Hazard of Choice Overload Other studies support the idea that too many options in sales conversations can impede the process. One phenomenon identified by psychologists is choice overload. This is the idea that when a prospect does not have a very specific sense of what they want or a clear way to categorize choices, they tend to feel discomfort over the number of products to choose from. Choice overload can derail a sales conversation. Barry Schwartz, author of The Paradox of Choice, asserts that choice overload can lead to anxiety, dissatisfaction, bad decisions, and decision paralysis. These negative emotions can distract from the decision itself, impairing decision-making abilities and causing someone to postpone or avoid making a decision. Schwartz writes, “Even if you've made a good decision, when your choice isn't perfect, knowing there were alternatives out there makes it easy to imagine you could have made a better choice.” A study about limited choice vs. extensive choice demonstrated this when customers in a store were asked to sample jams. The study found that only 3% of those who sampled 24 flavors made a purchase, while 30% of those who sampled 6 flavors made a purchase. The authors of the study state that too many options can lead people to choose not to choose even when it goes against their self interest.   Using Choice Effectively in Your Solar Sales Conversations There are a number of ways you can work with sales staff to present solar choices without overwhelming prospects. Emphasizing simplicity and clarity is one; as Peschke puts it, look at how to offer “fewer options, more clear choices. Three is better than ten options.” Work with them to make choosing easier for prospects by keeping decisions real, immediate and concrete, and focused around a specific, positive outcome. Additionally, help your team remember to tailor their approach to the customer's level of understanding. As Ty Simpson, Regional Sales Manager of Bland Solar, says, “solar is not sales, it’s education. You’re teaching something unorthodox... Getting people to that a-ha moment.” However you help prospects find that a-ha moment, understanding how to effectively present options in the conversations is a key factor in facilitating their solar sales decision. About This Series: 7 NREL-Backed Ways to Close More Solar Sales Between 2014 and 2016 the National Renewable Energy Laboratory (NREL) conducted a Solar Energy Evolution and Diffusion Study (SEEDS) study. The study sought to better understand the decision making process of potential residential solar customers to help solar industry professionals identify ways to reduce customer acquisition costs. Following completion of the study, NREL highlighted seven common solar sales mistakes identified in their research. In this seven-part series, we delve into each of these seven mistakes in more depth, based on a conversation with one of the lead NREL researchers, as well as on-the-ground perspectives from solar contractors and exploration of related research. Part 1. Boost Your Solar Sales Success With Faster Lead Follow Up Part 2. Avoid Lost Solar Sales by Understanding Leads’ Perspectives Part 3. Engage Solar Leads with the Right Use of Choice Part 4. How to Effectively Address the Competition in Your Solar Sales Part 5. Stop Missing Out on Solar Customer Referrals Part 6. Why and How to Keep In Touch with Past Solar Customers Part 7. Don’t Give Up Too Soon on Solar Leads or Referrals ### NEXTracker CEO Dan Shugar Talks Innovation, Solar’s Evolution, and More Dan Shugar, founder and CEO of solar tracking company NEXTracker, has had an illustrious career. Despite the tumultuousness of the solar industry, Shugar has led numerous companies to great success—across sectors as diverse as C&I solar installation and module and tracker manufacturing. Add to that the fact that he has seen the industry’s growth and evolution firsthand since the 1980s, and it’s clear that Shugar has a wealth of industry insights. After starting his career as a transmission planner at California utility PG&E, Shugar transitioned to PG&E’s R&D department in 1988 where his passion for photovoltaics was ignited. He was fascinated by the idea that something with no moving parts could produce energy with just the light of the sun. He later led research that demonstrated how solar could offer benefits to the electric grid—which contributed to the development of net metering policies. Shugar went on to serve as President of PowerLight Corporation—which became the largest commercial installer in the U.S.—and then President of SunPower, which acquired PowerLight in 2007. He served as CEO of PV manufacturer Solaria prior to founding NEXTracker in 2013. Aurora Solar Content Marketer Gwen Brown and Chief of Staff Sunny Wang had the pleasure of interviewing Dan Shugar at NEXTracker’s offices in Fremont, California. Read on to hear Shugar’s thoughts on how solar business dynamics have evolved, where innovation can further reduce the cost of solar, and how to build a successful company and innovative team! Aurora Solar: Having been involved in solar since the early days of the industry, you’ve seen a lot of change and maturation. What do you see as some of the most notable ways that the business dynamics of solar have changed as the industry has evolved? Shugar: The analogy I like to use is that you can think of the evolution of the solar industry as similar to how the automobile industry evolved. In the early days, when I was at PowerLight, our approach was kind of like Henry Ford. When the automobile industry was super immature, it was characterized by thousands of manufacturers and unreliable, expensive products—sort of a mom-and-pop type industry. What Henry Ford did was create a standardized product and a standardized production system with few options. He radically reduced costs, improved reliability, and made the technology more prevalent through a vertically integrated model. That's similar to where we were at PowerLight, circa 1996 through 2007. We had a vertically integrated approach. The logic of heavy vertical integration made a lot of sense back then, because the industry was in a very early place. Today, the industry's at a real scale and vertical integration no longer makes sense. You can't be best in the world at everything when the industry is huge. Instead of making every component like Henry Ford did, modern car companies make a few components. They're really focused on overall product design, brand, marketing, financing, etc. But then they have, for instance, an electronics company making the radios and a tire company making the tires and so forth, and they bring that together. The solar industry today, is coming to a similar point. With more companies specializing in specific areas, it doesn’t make sense to have precious management attention and capital spread over too many things. I think you need to pick your shots. Be best in the world at one or a couple things, but don’t try to be best at everything. You can't be the best O&M company, the best manufacturer, the best developer, and do all those things at the same time. Photo of Dan Shugar, courtesy of NEXTracker.  Aurora: What areas of innovation do you think the industry should double-down on, or start exploring, to further drive down the cost of deploying solar energy? Shugar: We've been really focused on software for that purpose. I love the idea that without building more hardware you can get more energy out of the system. As an environmentalist, I want the most to come out of every system that gets deployed. At NEXTracker, we’ve commercialized an adaptive tracking algorithm that is really moving the needle from a yield standpoint on the software side. The gains aren't giant numbers—it's not going to double yield—but with our TrueCapture technology, we can achieve 2 to 6% yield improvement for typical sites. That is actually a huge amount if you're doing structured finance projects. Part of how that is accomplished is by optimizing yield on cloudy days, when you can actually produce 15-20% more energy by orienting the panels upward instead of tracking conventionally. We also developed improvements for undulating terrain. Instead of having all the trackers move in parallel like a Venetian blind—what we commercialized 20 years ago—we developed a way to have each row optimally change based on its geospatial position within the plant, using embedded sensors that establish its position relative to its neighbor. That can generate a lot more energy on an undulating site. Just in the context of the fleet that we’ve delivered, these yield improvements are the equivalent of shutting down a couple coal plants worth of energy! I think even more can be done across the whole software category to wring more energy out of PV systems. Photo courtesy of NEXTracker.  Aurora: Early in your career, you co-authored research that demonstrated how siting solar in strategic locations on the grid could deliver cost savings to utilities. These findings contributed to the development of net metering policies. Even today, however, the idea that solar hurts utility profits or shifts costs to non-solar customers persists. What do you think it will take to overcome this misconception? Shugar: Yes, we proved that PV distributed in the grid can provide a lot of benefits. The research was part of a national solar research project by the U.S. Department of Energy, co-funded by a number of utilities, called Photovoltaic for Utility-Scale Applications (PV USA). We were able to empirically document the benefits solar provides to the grid when it's distributed at strategic locations.1 In terms of how we overcome misconceptions about solar’s benefits, if you look at the majority of solar being installed, which is utility scale or community solar, solar is about half the average cost of all other main forms of generation in sunny areas. We're massively lowering the cost of wholesale power, saving consumers tens, maybe hundreds of millions of dollars annually. We need to get that message out better. One way we're doing this is through a national solar and wind job campaign tour we launched a year and a half ago, A Renewable America, with the Wind Solar Alliance. We've been doing a series of on-the-ground events, highlighting the jobs that have been created, and the savings and energy independence that solar and wind are providing customers. So it's a very concrete, tangible thing. Aurora: Something you’ve mentioned in the past as critical to a company’s success is the strength of the team and creating a dynamic that encourages innovation. What practices do you incorporate on a regular basis to cultivate that dynamic in the companies you’ve run? Shugar: First, in terms of team dynamic, I think being really transparent with the mission of the company is key—why we're here, why we're all putting our energies in. It's got to be bigger than just making money. For us, it's always been mainstreaming solar. From there, it’s important to define common goals and communicate them clearly so the team can align around them. In terms of processes at NEXTacker, and my prior companies, we do periodic strategic off-sites where we define what we want to accomplish in the coming year, and break that down into a quarterly cadence. We share those objectives really actively with all staff and each person has their own milestone system that defines what they're working on—they generate that. A benefit of that is that it engenders a valuable dialogue with their supervisor. Having that kind of framework is really helpful, especially as companies scale. With respect to innovation, you must encourage people to take risks and try new things. We have an ethos at the company where folks know you’ve got their back. If somebody tries something new and it doesn't work, that's okay. Additionally, allowing organic creation of ideas from anybody within the organization is really important, as well as expanding the universe in which ideas come from—especially to include customers. We ask customers for feedback all the time. "What do you think of the product? What are your ideas? How would you like it improved? What other features and attributes would you like to see?" We really listen to what they say and evaluate those ideas. Some ideas won't work, but some will. I could show our product and point to specific features that came from customers. And we go back to the customer and acknowledge them. We also try to think strategically about how to strip out extraneous elements. Fundamentally, we're trying to generate more energy at the lowest possible cost with the highest amount of reliability. Anything not contributing to that should go, and features that can enhance that goal should be brought in. It doesn't matter if you're doing roof systems or ground mounted systems—having that kind of culture and format for ideas has worked across a variety of platforms. Aurora: Given the many successful companies you’ve been a part of, are there any lessons for success you've learned that you would like to share with our readers? Shugar: A lot of it, I think, is just being very practical, keeping it real. For me, that starts with having a mission, like “we want solar to be the largest source of power,” and being able to articulate that. From there, it's about finding a way to add value to the customer and building an awesome team that's mission-focused, to be able to deliver that value to the customer. It’s about making sure you do the basics super well. In terms of having a functional team, you need a process by which issues are put forward. We have a expression "bad news now." We want to know what the real issues are and not conceal them but rather deal with them—whether it's on the team or the product or the financial status of something. We want to address that practically and be able to manage expectations with the customer and follow through on our commitments. I'm really passionate about relationships with customers and being honest. If there's a problem with the product, or the schedule, or the delivery, be super upfront about what those issues are, and customers are generally understanding. Aurora: In addition to your day job, you’re also a musician and you and your band Groovity perform around the Bay Area (and in the 2018 Solar Battle of the Bands at Intersolar)! How did this come about? Shugar: The backstory about how I got into music is that, when I was 16, I indicated to my father that I was interested in learning how to play guitar. His response was "Get in the car, we're going to the music store." It was just a basic guitar he got me, but what I took from that is when people indicate interest in something—I did this with my kids—you try to make it available. Sometimes, maybe most of the time, it doesn't work out. But once in a while it does. For me, music has been a source of great joy and satisfaction, and an opportunity to relate to people on a different level. It's a lot of fun. Music brings people together. That's what we were trying to accomplish at Intersolar 2018, and I think we got it done. For me, having a great company is really like having a band—there's a direct analogy. Because you want to give every person space to contribute and you want to be really listening to what's happening. I think the thing that works most in our band is that everyone's really carefully listening. That allows a fundamental structure but a high degree of improvisation that happens live, adapting as you go. When it's time to say something, you say it but then you pull back and let other people contribute and that makes the band—or company—that much more powerful. And it keeps it really interesting.  Groovity performs at Solar Battle of the Bands 2018. Photo courtesy of NEXTracker.  Dan Shugar with Gwen Brown, Aurora Content Marketer, and Sunny Wang, Aurora Chief of Staff, at the NEXTracker offices.  1 Shugar added: “It's also a fact that we were so successful in California that we actually have over ten gigawatts of solar and have changed the shape of the load curve of the fifth largest economy in the world. There’s still a lot of correlation in California, but it's less perfect than when we conducted our research.” Please note that the views expressed in our Solar Spotlight interviews are those of the interviewee, and do not necessarily reflect the views of Aurora Solar. ### Key Solar Industry Trends From The 2018 Solar Jobs Census The 2018 National Solar Jobs Census, released this week, reaffirms an oft-cited benefit of the solar industry—that solar is a major job creator. As of late 2018 are 242,343 solar workers in the U.S., meaning that the solar industry employs more people than any other energy sector other than oil and gas. Between 2013 and 2018, solar jobs grew at a rate six times faster than the overall U.S. economy. The results weren’t all rosy, however. For the second year in a row, total employment in the solar industry has declined slightly, after seven years of growth. The Solar Census reports that uncertainty over whether the federal government would impose tariffs on imported solar components (which led to delays of many projects) contributed to the decline, as did policy changes and economic challenges in some established state solar markets. Despite these recent challenges, more than half of states in the U.S. added solar jobs. Additionally, the report paints a bright picture for the future of the solar industry, with survey respondents reporting an expected increase in hiring in the coming year. It also overs valuable insights on hiring trends in the solar industry, industry demographics, and more. The National Solar Jobs Census is an analysis of employment in the U.S. conducted annually by The Solar Foundation. It is the most rigorous and comprehensive review of its kind, based on an extensive survey of solar industry employers. We delve into its 2018 findings and what you need to know about the current state of the solar market in the U.S.! Solar Jobs 2018: The Big Picture In 2018, solar employment declined by 3.2%—or 8000 jobs across the country. In addition to uncertainty about tariffs resulting in postponed projects, contraction in some states with historically strong solar markets contributed to the decline. It’s important to keep these losses in context, however. Since the first Solar Jobs Census in 2010, the solar workforce has added nearly 150,000 jobs—growth of 159% percent. And between 2013 and 2018 solar employment increased 70% (100,000 jobs), compared to 9.13% job growth in the U.S. economy overall. Additionally, the solar industry outlook for 2019 and beyond is positive. Based on the survey results, solar jobs are expected to increase by 7 percent in 2019, bringing the total to 259,400 jobs. Installed PV costs by solar industry sector (residential, commercial, and utility-scale) compared to annual solar industry employment numbers. Source: 2018 National Solar Jobs Census. Where Solar Jobs Were Gained and Lost States with the largest job reductions included California (-9,576 jobs), Massachusetts (-1,320), North Carolina (-903), Arizona (-857), Maryland (-808), New Jersey (-696), Georgia (-614), and Hawaii (-595). In California, which still remains the state with the most solar jobs despite significant declines, there were a number of factors at play. The Census cites reduced pressure on utilities to meet their clean energy goals because they have already made significant progress, as well as uncertainty over rate structures for non-residential solar customers. California did implement a number of notable pro-solar policies in 2018, such as mandating solar on all new homes and committing to 100% renewable energy. While 2018 was too early to see the impact of these policies, they bode well for stronger growth in the coming years. In Massachusetts, policy uncertainty prior to the release of the state’s new Solar Massachusetts Renewable Target (SMART) program, a successor to its SREC program, contributed to the decline. However, once the new program was launched in September of 2018, there was a rush of new applications—a positive sign On the bright side, 29 states saw solar job growth. Among the states that experienced the most solar job growth are Florida (+1,769 jobs), Illinois (+1,308), Texas (+739), New York (+718), Ohio (+644), and Washington (+612). The report highlights contributing factors in different states such as Illinois’ Future Energy Jobs Act, which includes an Adjustable Block Program to support distributed energy systems and community solar projects, and Nevada’s reinstated net metering policy in 2017. In states like Texas without relevant policy changes falling cost of installations were a contributor to solar industry growth. Increase or decrease in solar jobs in 2018 by state. Source: 2018 National Solar Jobs Census.  Other Notable Findings The 2018 Solar Jobs Census also provides valuable insights on how solar jobs are distributed across different sectors and what the demographics of the solar industry are. It also provides insights on the hiring experiences of companies—such as how difficult it is to fill positions and what qualifications employers are looking for. What Sectors are Solar Jobs In? The solar installation and project development sector employs two-thirds of solar workers, with 155,000 solar jobs. Of these, 56% percent (87,000) focus on residential solar compared to commercial and other non-residential solar (including community solar), which employs 30% (46,000). The remaining 14% of jobs are in the utility-scale sector (87,000). Manufacturing employs 14% of solar industry workers, while operations and maintenance (O&M) employs about 5%. The “other” category—including engineering, legal, and financing companies—also employs about 5% of solar industry professionals.   Percentage of solar jobs by industry sector.  by Source: 2018 National Solar Jobs Census. What Are the Demographics of the Solar industry The Solar Foundation also built upon its past efforts to highlight diversity needs in solar with an update on industry demographics. In 2018, they report, the solar industry was more diverse than other comparable industries, but still not representative of the overall population. Women represented 26.3% of solar industry workers. Latino or Hispanic workers represented 16.9%, Asian workers comprised 8.5%, and black or African American workers comprised 7.6%. Veterans represented 7.8% of industry workers, a decline from 8.6% in 2017. Solar Hiring Trends In 2017, many solar employers reported difficulty finding qualified workers and in 2018 that was even more of a challenge. Twenty-six percent of companies reported that it is “very difficult” to fill open positions with qualified employees, an increase of 44% from 2018. The greatest hiring difficulty was in the installation and project development sector. In terms of what employers are looking for in job candidates, experience was the most common requirement, reported by 60% of companies (up from 55% in 2017). The Census also reports that solar industry wages are competitive with similar industries, with a median wage of $18.12. Reasons for hiring difficulty reported by solar industry employers. Source: 2018 National Solar Jobs Census. The solar industry is playing an important role in the U.S. economy, delivering new well-paying job opportunities while helping to tackle the critical impacts of climate change. With positive projections for 2019 industry growth, we look forward to the industry getting back on track and installing even more clean energy. The 2018 Solar Jobs Census is chock full of many more insights than we could cover in the blog post—download the full report here to learn more! ### Avoid Lost Solar Sales by Understanding Leads’ Perspectives The cost of customer acquisition in the solar industry is high and continues to rise. In 2018 the Solar Energy Industries Association (SEIA) reported that customer acquisition costs had been steadily increasing over the previous four quarters, and two years earlier, GTM put the average cost of customer acquisition at $0.52 per watt. This, in addition to increasing competition and market saturation, means that solar contracting companies want to use their most effective strategies when trying to win prospective customers (leads). In an effort to help contractors avoid pitfalls that could jeopardize solar sales, the National Renewable Energy Laboratory (NREL) conducted a study to comprehend why certain customers adopt solar while others don’t. This series examines seven common solar sales mistakes NREL identified through its study, based on a conversation with one of the lead NREL researchers, additional related research, and real-world insights from solar contractors. In Part 1 of our 7 NREL-Backed Ways to Close More Solar Sales series, we explored the importance of quick solar lead follow-up. In this second article, we explore problems associated with assuming prospective customers share your opinion about solar. About NREL’s Study Funded by the Solar Energy Technologies Office at the US Department of Energy, NREL’s 2014-2016 Solar Energy Evolution and Diffusion Study (SEEDS) study was conducted by NREL researchers, members of the Lawrence Berkeley National Lab, and a number of academics in behavioral science and psychology. The team surveyed homeowners in four states, collaborated with approximately thirty solar contracting companies, and applied mathematical modeling and testing to their results. The study sought to better understand the decision making process of potential residential solar customers in an effort to help solar industry professionals identify ways to reduce customer acquisition costs. The Importance of Avoiding Assumptions NREL’s study found that understanding the customer's perspective is essential in a solar sales conversation. Doing this helps you refrain from making assumptions about the solar lead’s level of interest and makes you better able to address their needs. Customers sometimes have concerns or misconceptions about solar. These may be feelings related to system aesthetics, installation and maintenance expense, or ROI. Ben Sigrin, one of the lead researchers on the study, explains that there is a lot of variation in how homeowners perceive solar, and that many have particular misconceptions about solar’s economics and backup capabilities. He says that consumers may have “a lack of understanding of how the economics of solar work: how much it costs, how much will be saved on their bill, what the payback period will be.” Additionally, Sigrin states that “some consumers assume that solar will always provide backup power during a grid outage, and that's not always true. They should be made aware of whether it is or isn't.” Ultimately, it is important to ensure that your enthusiasm about solar doesn't lead you to overlook these kinds of potential misconceptions or assume the customer shares your excitement about solar’s benefits. Patrick Perry, Director of Sales at Momentum Solar—one of the fastest-growing solar companies in the nation, with an impressive 4,617% revenue growth over the last 3 years—agreed that it is important to be mindful of a customer’s misconceptions. Perry points out that consumers sometimes have misconceptions about solar partly because “internet research can provide some useful information, but also could provide inaccurate information as well." Perry explains that for his team, “providing clarity and perspective is our goal. Our approach is an educational one.” As a starting point, his team seeks to carefully “determine what the customer knows about solar, what their needs are, and where they got their information—whether it be from a friend or family or their own internet research.” By understanding this, Perry explains, they are then able to provide clarity to help the customer comprehend solar’s benefits. Listening to Understand Other experts in solar and sales emphasize the need to appreciate the customer’s perspective in sales conversations. Jim Jenal is the founder and CEO of Pasadena, California-based solar installation company and regularly writes about commercial solar and customer service. He talks about the importance of understanding where your solar lead is coming from: “knowing the concerns, wishes, and assumptions of the [prospect] allows you to anticipate their needs so you can offer them the best experience and clearest understanding of how solar can improve their bottom line.” Ivan Misner, Founder of Business Network International, explains that a lot of selling has to do with finding what the customer wants. Misner states, “buyers are multifaceted, and when they shop, they weigh the many pros and cons of a potential purchase... Learning and adapting to the issues and whims of the buyer while moving the sale forward to a conclusion is a complex and intricate task – and it’s the responsibility of the sales professional to ensure it happens.” An integral part of adapting your approach so as to guide the solar lead through this process is listening carefully to understand what factors the customer might be weighing regarding solar. Actively listening to prospective customers’ concerns and ideas about solar can help you more effectively address what’s important to them—and have a greater likelihood of closing the sale. Listening is a key aspect of being able to effectively adapt in your solar sales conversation. Active listening is the art of asking thoughtful questions for true understanding and “making sure that you concentrate, respond, and remember what was heard.” Not only do you learn a customer's perspective, you build trust by validating what they feel. It is possible to help your sales team avoid the pitfalls of making assumptions in solar sales conversations. Training in how to anticipate and identify customer concerns or mistaken ideas about solar can help them address issues as they come up. Understanding the basic principles of active listening to build trust may also be beneficial, as might an approach that emphasizes clarity and education, like that of Momentum Solar. Whatever path you choose, avoiding jumping to conclusions in your solar sales conversations can go a long way towards success.   About This Series: 7 NREL-Backed Ways to Close More Solar Sales Between 2014 and 2016 the National Renewable Energy Laboratory (NREL) conducted a Solar Energy Evolution and Diffusion Study (SEEDS) study. The study sought to better understand the decision making process of potential residential solar customers in to help solar industry professionals identify ways to reduce customer acquisition costs. Following completion of the study, NREL highlighted seven common solar sales mistakes identified in their research. In this seven-part series, we delve into each of these seven mistakes in more depth, based on a conversation with one of the lead NREL researchers, as well as on-the-ground perspectives from solar contractors and exploration of related research. Part 1. Boost Your Solar Sales Success With Faster Lead Follow Up Part 2. Avoid Lost Solar Sales by Understanding Leads’ Perspectives Part 3. Engage Solar Leads with the Right Use of Choice Part 4. How to Effectively Address the Competition in Your Solar Sales Part 5. Stop Missing Out on Solar Customer Referrals Part 6. Why and How to Keep In Touch with Past Solar Customers Part 7. Don’t Give Up Too Soon on Solar Leads or Referrals ### Boost Your Solar Sales Success With Faster Lead Follow Up Customer acquisition is one of the biggest challenges for solar companies and one of their most significant costs. Wood Mackenzie Power & Renewables reported residential customer acquisition costs of $3,668 per customer in 2016 and projected 2017 costs of $3,898 per customer. This means that when you connect with a prospective customer it’s critical to avoid mistakes that could cost you the sale. Findings from a National Renewable Energy Laboratory (NREL) study of factors that influence homeowners to install solar offer insights into some of the most common mistakes contractors make during a sale. “For residential-scale solar, the costs of customer acquisition remain high in this industry. There are many different figures on the exact cost and these change over time, but certainly on the order of thousands of dollars per successful client is spent developing the pipeline of leads,” says Ben Sigrin, one of the NREL researchers who led the study. “Our goal in this project was to understand better the decision making of potential customers that are considering adopting solar for their home, in order to be able to help solar developers and other industry stakeholders identify pathways to reducing customer acquisition costs.” This series, 7 NREL-Backed Ways to Close More Solar Sales, we will explore in more depth each of several solar sales mistakes identified NREL, based on a discussion with one of the lead NREL researchers, reviews of related studies, and real-world perspectives from solar contractors. Today’s article, Part 1, explores why not following up with leads fast enough can be problematic.   About the Study This research, NREL’s 2014-2016 Solar Energy Evolution and Diffusion Study (SEEDS) study, was funded by the Solar Energy Technologies Office at the US Department of Energy. The work was conducted by a team comprised of individuals from NREL, the Lawrence Berkeley National Lab, and several renowned academics in the behavioral science and psychology fields. The team conducted surveys of homeowners in California, Arizona, New Jersey, and New York. The survey group included homeowners who had adopted solar, homeowners who had considered solar but decided not to purchase, and some who had never considered solar. NREL collaborated with approximately thirty solar contracting companies who offered firsthand perspectives on their solar sales processes and helped the researchers connect with prospective solar customers surveyed in the study. Other aspects of the study included mathematical modeling and testing to understand spatial behavioral drivers of adoption and examine the impact of policy and neighborhood changes. The Need For Quick Turnaround with Leads One of the key insights offered by the study’s findings is the importance of following up with a lead as quickly as possible. Interest in solar is often triggered by an event like an exorbitant electric bill, advertisement, or referral from a friend, and the further removed the person is from the event when you reach out, the less likely they are to go solar. Sigrin states that “through the data, we did find that installers that are able to have a quick turnaround tended to have more successful outcomes.” Tyson Peschke is Co-Founder and Chief Revenue Officer of Blue Raven Solar, one of the fastest growing solar companies in the nation and a top-10 solar company in the U.S. Though not familiar with NREL’s data on this topic, Peschke intuitively agreed that contacting a prospect right away while solar is front of mind can help improve the likelihood of success. He observes that “If I know it's the right moment to talk to that person because they just put their information in, they're much more likely, in theory, to answer my call than if I wait 10 minutes. If it's on a customer's mind, it's the right moment; if not, it's very easy for them to decide they’ll talk to you some other time. So for me, it absolutely rings true that if you can get them within 10 seconds, they haven't moved on. If you wait too long, it is very likely they’ve moved on to a different train of thought and then you’ll have to re-engage their interest.” Interest in solar is often triggered by an event, like a utility high bill. Responding quickly can capitalize on that interest and help you close more solar sales. The Problem with Waiting Too Long Other research supports the idea that slow follow up with leads can be a pain point for solar sales. A 2015 study of solar selling methods demonstrated that solar companies are not always quick to respond to an inquiry. The researchers filled in online inquiry forms for solar contractors during business hours and tracked responses for 22 days. Only 46% of their inquiries received at least one phone call and one email from sellers, and almost 40% of inquiries did not receive a response for several weeks or at all. Other studies have found that the quality of a lead does indeed degrade over time, as seen in a 2007 Lead Response Management study. The study found that the odds of making successful contact with a lead were 100 times greater when contact is attempted within 5 minutes of the lead submitting their information, compared to 30 minutes. It also found that the odds of a lead entering the sales process were 21 times greater for that same time frame. Another study that examined 3.5 million leads found that a call attempted within a minute of receiving a lead increased conversion rates by 391%; comparatively, the study found only a 17% improvement in conversion rates when leads were contacted within 5-24 hours. Prioritizing quick follow up with prospective solar customers is a key element of and effective solar sales process.  Finding Solutions There are a number of possible solutions to the issue of quick lead follow-up, and it’s wise to put some thought into what creative options would help your company reach out to prospective customers as efficiently as possible. Solutions could include a chatbot that gives website visitors quick answers to their questions and the satisfaction of an instant response or an automated email response for web inquiries. An effective CRM system that allows you to precisely track interactions with prospective customers is also essential—both to assess how well your company is performing in regard to response times and to make sure that no leads fall through the cracks. However you approach your lead follow-up strategy, finding ways to be as responsive as possible to prospective customers can help you maximize your chances of a fruitful outcome.   About This Series: 7 NREL-Backed Ways to Close More Solar Sales Between 2014 and 2016 the National Renewable Energy Laboratory (NREL) conducted a Solar Energy Evolution and Diffusion Study (SEEDS) study. The study sought to better understand the decision making process of potential residential solar customers in to help solar industry professionals identify ways to reduce customer acquisition costs. Following completion of the study, NREL highlighted seven common solar sales mistakes identified in their research. In this seven-part series, we delve into each of these seven mistakes in more depth, based on a conversation with one of the lead NREL researchers, as well as on-the-ground perspectives from solar contractors and exploration of related research. Part 1. Boost Your Solar Sales Success With Faster Lead Follow Up Part 2. Avoid Lost Solar Sales by Understanding Leads’ Perspectives Part 3. Engage Solar Leads with the Right Use of Choice Part 4. How to Effectively Address the Competition in Your Solar Sales Part 5. Stop Missing Out on Solar Customer Referrals Part 6. Why and How to Keep In Touch with Past Solar Customers Part 7. Don’t Give Up Too Soon on Solar Leads or Referrals ### Using Aurora to Solve the Mystery of an Underperforming PV System An underperforming solar PV system is a solar customer’s nightmare. With a big investment like solar, customers want to know that their PV system is producing as much energy as forecasted and they’re getting their money’s worth. Unfortunately for a residential customer in Cathedral City, California, for unknown reasons, their system was consistently producing less energy than expected. Fortunately, their system was monitored by Omnidian, a solar operations and maintenance (O&M) firm that is dedicated to managing the performance of solar systems. Omnidian remotely monitors solar system performance and interprets the data with its proprietary software to identify systems that are experiencing problems–as it did in this case–and coordinates field service work with local service partners where needed. To determine what has gone wrong in these cases, “the industry often responds with an initial truck roll to go out to the site to investigate what's going on,” explains Omnidian Chief Operating Officer David Kenny. But truck rolls can be costly, so if there were a way to remotely identify the problem and determine the necessary service before sending someone out, reaching a resolution could be more efficient and affordable. To this end, Omnidian turned to Aurora’s simulation tools to determine if it would be possible to remotely diagnose the cause of this system’s underproduction. In this article, we explore how Aurora’s software allowed Omnidian to identify design flaws and make adjustments that significantly increased energy production. Remote Diagnostics with Aurora Most users know Aurora for solar design and sales software that makes it possible to remotely design a solar system, accurately forecast its energy production, and estimate the monetary value of that production. In this case, however, Aurora’s simulation engine–which calculates how much energy a PV system will produce based on its design and location–would be used to retroactively determine why there was such a discrepancy between actual and predicted production. To do this, the project site was first modeled precisely in Aurora. An accurate 3D model of the project site is essential to determining how much energy a PV system will produce because it provides the basis for determining the amount of shade that will fall on the modules at different times throughout the year. The PV system was then recreated in Aurora according to how it was installed–with the same module and inverter specifications, panel placement, and stringing configuration. The existing system consisted of 30 modules and two string inverters, each of which were connected to three strings of five modules in series. Recreating the existing system design made it possible to simulate how much energy the system “should” be producing and identify factors that were reducing power output. Aurora calculated that the existing design would produce approximately 12,000 kWh per year. A preliminary comparison of Aurora’s simulation results to recorded production data from the system revealed that Aurora’s simulation was within 1% of the system’s actual annual production. From there, a review of Aurora’s simulation warnings helped to determine why production was less than it could have been. Aurora performs a wide array of checks on every system design, testing to see if there are any violations of engineering principles, the National Electric Code, or the capabilities of the components used. One alert in particular raised a big red flag about the system design: 72% of the time the string voltage for the system was falling below the inverter’s minimum operating voltage! This information provided a helpful starting point for determining what needed to be fixed for the system to perform optimally. Pinpointing the Performance Problem Further exploration revealed that shading was part of the issue; the shading from two neighboring palm trees at the site frequently caused the string voltage to be too low for the inverter. Another contributing factor was the fact that the strings were short (voltage is additive when panels are connected in series, so longer strings result in higher voltage). Because the voltage was frequently falling below the inverter’s minimum starting voltage due to these factors, there were periods of time when the system wasn’t exporting any energy at all. As the Aurora team member who led the diagnosis explains, “The shade [at this site] plays a big part in the performance issue since the strings are at the very lower limit of the acceptable range. This means any shade will drop the string out of the voltage range and stop production. In a heavily shaded situation like this, it is imperative that strings as long as possible are used with a traditional string inverter.” With the cause of underproduction identified, it was determined that it would be necessary to restring the system, making the strings longer so that they wouldn’t drop out of the voltage range of the inverter when shade was present. Finding a Solution Once it was determined that the system needed to be restrung with more modules on each string in order to keep the voltage within the inverter’s operating range, Aurora was used to model possible solutions. Simulating new potential stringing configurations made it possible to quantify the resulting production changes and ensure that there were no design flaws before service work was initiated. The stringing configuration proposed for the repair of the system included two strings of seven panels in series connected to the first inverter and two strings with eight panels in series on the second inverter. Aurora’s performance simulation revealed that the redesigned system would produce 3,433 kWh more per year than the existing design! A key reason for this is that the string voltage would only fall below the inverter limit for 0.91% of daylight hours throughout the year under the new stringing configuration, compared to 72.39% of daylight hours when this occurred with the installed design. Accounting for Inverter Clipping Once a restringing solution was identified, there was another question to resolve: whether the stringing configuration was compatible with the existing inverters. The new, longer string lengths meant that the DC voltage was oversized compared to the inverter rating and could sometimes exceed the max DC power of the inverter during times of high irradiance. This raised a potential red flag because it could limit energy production as a result of inverter clipping. However, because Aurora models the expected impacts of inverter clipping based on local weather patterns and shading at the site, it was possible to determine that inverter clipping impacts would actually be very limited (1% of annual production, as noted in the simulation results above). As a result of this insight, the costly need to replace one or both of the inverters was avoided. Achieving Performance Gains With a resolution identified remotely, Omnidian coordinated service work to restring the system with the new stringing configuration. Initial production data showed marked improvements in performance: comparing three sunny days before the service work to three sunny days after the service work, the max power (kW) increased 16% and kWh generation increased 24%! This solar customer was fortunate to have Omnidian monitoring their system, to identify the performance problems with their PV system and find a resolution without the need for the customer’s involvement. With Aurora’s top-of-the-line performance simulations, it was possible for Omnidian to diagnose the problem without a site visit, and then coordinate service to resolve the underproduction issue. Although not a typical use of Aurora’s solar design software, this initiative highlighted the value of Aurora’s accurate performance simulations. It also shows how solar contractors can avoid design flaws through the use of robust design and performance simulation software. Had the installer of this system used Aurora they would have been alerted that the string voltage would frequently fall below the inverter’s operating voltage range, avoiding production losses for the customer and the need for system repair. Thankfully, the resolution Omnidian arrived at with Aurora restored the system to its optimal performance, allowing the customer to generate thousands more kilowatt hours each year! ### Smarter Solar Design with Irradiance on Modules As every solar designer knows, understanding the solar irradiance (available solar energy) at a project site is crucial to designing a high-performing solar installation. That’s one reason that solar software which visually indicates irradiance at different points on the roof can streamline the process of creating an ideal solar design. But what if—as in the case of ground mounts or carports—there is no roof? Or what if you want to quickly see how changing the tilt or orientation of your panels affects the irradiance they receive? In cases like these, being able to visualize the irradiance on each panel, not just the roof surface, can help designers quickly evaluate design changes and make informed decisions. While Aurora’s irradiance engine has always calculated the solar irradiance on modules to ensure accurate production estimates, a new update makes it possible to see the irradiance on each panel for streamlined solar design. In today’s blog post, we explore a few of the ways this makes designing easier. Aurora Solar software shows solar irradiance values at each point on a roof surface with a beautiful solar heat map (where lighter colors indicate higher levels of irradiance). A new update now makes it possible to see those values on the panels themselves, as shown above, for an improved solar design process. Solar Carports and Ground Mounts Being able to see irradiance on the surface of the panels themselves is particularly valuable when designing carports and ground mounts. Since there is no roof below these structures, being able to see the irradiance on the panels allows you to visually identify the optimal location. With this new update, the designer can immediately see if shade will fall on the panels and, if so, explore other places to locate the array to maximize energy production—rather than having to run a performance simulation to determine expected energy production and then iterate. With solar irradiance values on panels in Aurora Solar software, contractors can easily assess shading on carport and ground mount designs—as shown in this example where some carports would receive shade from nearby trees. Having solar irradiance and shading values on carport and ground mount panels also offers benefits when generating a shade report to submit to various agencies for approval of rebates and other incentives. Historically, contractors using hand-held devices to measure irradiance would have to attempt to estimate the angle and height at which to hold the device for an accurate shade measurement, given that there was no existing physical structure. Aurora’s new “irradiance on modules” feature saves contractors time by eliminating the need for this process. When Panels Are Not Flush with the Roof Another case in which it is particularly helpful to be able to see solar irradiance on the surface of your solar panels is in rooftop systems where the panels are not flush with the surface of the roof. This is because the tilt and orientation of a panel impact how much irradiance it will receive. Seeing the irradiance on modules allows you to visualize the actual irradiance the panels will receive given different tilts and orientations. This visualization is also helpful in cases where rows of solar panels may shade each other (inter-row shading). The “heat map” on the modules indicates the extent of inter-row shading on the edges of the panels, so contractors have a visual cue to help determine whether they may want to adjust row spacing. Being able to see solar irradiance values on solar panels allows solar designers to visualize the effects of inter-row shading as well as shading from rooftop obstructions, as shown in this Aurora Solar design. Excellence in solar design is a must for solar contractors to deliver high-performing systems that leave clients satisfied and ready to refer others. Yet if your operation is to be scalable, you need to be able to create optimal designs quickly and efficiently. Aurora’s new irradiance on modules feature is one more tool at your disposal to streamline the solar design process—saving time and money while ensuring precision and accuracy for your clients. ### Find the Best Candidates for Solar Jobs with This New Tool If your solar company is like many in the U.S., finding the right candidates to fill job openings can sometimes be a challenge. In fact, according to the Solar Training Network 84% of installers have difficulty finding qualified applicants, with 26% finding it “very difficult.” But what if you could connect with solar job candidates that you might not otherwise reach, more easily compare candidates, and help increase diversity at your company at the same time? The Solar Energy Industries Association (SEIA) recently joined forces with the Historically Black Colleges and Universities Community Development Action Coalition (HBCU CDAC) to highlight a solar hiring tool that can do just that! The HBCU Talent Exchange, developed by the HBCU CDAC–which SEIA began partnering with in 2018–is a cutting edge tool that helps employers quickly connect with qualified solar job candidates while reducing hiring bias. Background The HBCU CDAC is a national nonprofit founded in 2010 as a resource for historically black colleges and minority-serving institutions (MSIs) and the community economic development industry to leverage their resources and strengthen their surrounding communities. Some of its objectives include creating economic opportunity, building healthy and sustainable communities, and increasing participation in STEM fields by historically underrepresented individuals. In 2018, SEIA launched a partnership with the HBCU CDAC with the goal of creating opportunities to increase participation of HBCU students in the solar industry workforce by exploring opportunities to connect qualified students with open solar jobs at SEIA member companies. In honor of Martin Luther King, Jr. Day this week, SEIA released a video (linked below) showcasing the solar hiring tool and how solar companies can benefit from it. About the HBCU Talent Exchange As SEIA explains, they see the HBCU Talent Exchange “as one way we can help our member companies address hiring challenges, while simultaneously reducing hiring bias and mismatches between job seekers and companies. The Talent Exchange moves beyond resume and job description searches to share more accurate information that helps both employers and job seekers make more informed hiring decisions.” Unlike traditional hiring tools and solar job boards, the Talent Exchange is survey-based rather than resume based, using a proprietary matching software that’s designed to better assess what positions a candidate is a good fit for—and connect candidates and organizations that might not otherwise have found each other. Companies with job openings answer a variety of questions about their needs and preferences for the position, and candidates answer questions about their skills, interests, and workplace. Candidates are ranked based on their fit for different roles and companies, and the system generates customized reports for employers and candidates that help show areas of alignment and potential misalignment. Additionally, with standardized views of candidate qualifications—and notifications of top matches—employers can more easily compare candidates and make better decisions, faster. The system also helps ensure qualified candidates are aware of and considered for relevant positions because candidates are invited to apply for new openings relevant to their interests, and the system evaluates the fit of each applicant for every job within a category (for instance, if there are two similar jobs at the same company, the candidate will be considered for both without having to reapply). It can also mask information prone to bias. Jobs posted in the system are automatically posted to 5000 other no-cost local, regional and national job sites. To learn more, SEIA and HBCU CDAC’s video below provides an overview of the system and how to post a job (see ~16:20 for a demonstration of the system). To post a job on the HBCU Talent exchange, you can visit its webpage, and select “Post a Job” to create an account. If you’re looking for a new avenue to connect with qualified candidates, this is an opportunity to efficiently fill solar job openings while also reducing hiring bias and potentially increase diversity in your company. As we highlighted in a past blog post, a diverse workforce has been shown to bring many benefits to companies. The first-ever study of diversity in the solar sector (by The Solar Foundation in 2017) found plenty of room for improving racial and gender diversity in the solar workforce; this tool could be a helpful step in that direction. P.S. Speaking of solar jobs, we’re hiring here at Aurora! Our careers page has all of our open positions if you or someone you know are interested.   ### Be a Commercial Solar Superstar: Service Insights from Jim Jenal Excellent customer service is extremely important during all stages of solar PV sales and installation. This is particularly true for commercial solar installations, given the often considerable size of the project and the impact it can have on the client’s operations and bottom line. Having literally “written the book” on commercial solar, Jim Jenal, founder and CEO of Pasadena, California-based solar installation company Run on Sun, has a wealth of information on what contributes to a positive customer experience in commercial solar projects. Jenal has blogged about the solar industry since 2009 and has been interviewed by the Los Angeles Times and the Wall Street Journal. His book Commercial Solar: Step-by-Step is an in-depth look at what commercial solar customers should think about when considering solar. For solar contractors considering how to excel in customer service for their commercial solar customers, this article compiles some of Jenal’s insights on this topic from Commercial Solar: Step-by-Step (page numbers noted in parentheses), as well as blog posts and interviews. Know Your Buyer One of the first considerations for delivering excellent customer service is to fully understand where your prospective commercial client is coming from, according to Jenal. Knowing the concerns, wishes, and assumptions of the facilities manager or building owner allows you to anticipate their needs so you can offer them the best experience and clearest understanding of how solar can improve their bottom line. Facilities managers and other commercial prospects may be under considerable pressure to lower operational costs and be very interested in finding creative alternatives to save money, as Jenal explains in his book. He recommends finding out what cost-saving approaches they may have tried in the past, such as lighting and HVAC system upgrades or smart devices to reduce peak power demand. Perhaps they have considered solar in the past but found that lack of financing made it a challenge. It’s also important to understand the extent of your prospect’s knowledge about solar so you can speak to their interests and level of technical awareness. Your client may be highly trained in engineering or technology and want comprehensive, technical details about all aspects of solar. Others may educate themselves extensively about solar before soliciting bids. Conversely, Jenal describes clients who are social workers who “don’t need that level of technical detail but are really big on finding that sense of trust.” (11:23) He explains that his company strives to speak to what each group is looking for because “that is where the connection gets made.” (9:44) Understanding your commercial solar customer can help you better address their needs. That includes understanding their past efforts to save on energy, as well as their knowledge of solar.  A Consultative Sales Process The proposal process is a key element, according to Jenal, because it sets the standard for the quality of the relationship. Make it clear that you are doing your utmost to offer a bid that accurately reflects the cost of the project to avoid “inconvenience, delays and costly change orders once the project is underway.” (29) Demonstrating honesty and expertise during this stage is vital to building trust. Jenal describes how the prospect will have a lot of questions, perhaps they don’t know a lot about solar or because they have done the research and want to assess your level of proficiency. Offer fact-based answers and be ready to answer questions that are outside of what is typically asked. Be candid when you don’t know something and be willing to educate yourself about it. Additionally, while it should go without saying, Jenal also emphasizes that "Honest communication...starts with the fact that not every potential client is a good fit for solar and you need to be able to tell them that.” (1:02) Jenal recommends managing customer expectations by making sure they understand system performance projections and the ins and outs of their bill. For example, make sure your client understands the impact net metering and how being a net seller or net purchaser of energy will affect their bills, and avoid offering overly simplistic savings explanations. Finally, Jenal notes that going the extra mile can make a big difference. He describes an example when Run on Sun secured a bid partly because of the level of support they offered around a time-sensitive rebate application process. Jenal writes how the Director of Facilities appreciated that they offered “to take care of all the paperwork, filing within the deadline period and eliminating the extra bureaucratic steps the school would otherwise have to take.” (121) A great commercial solar sales process educates the customer and answers all questions they may have, manages customer expectations, and goes the extra mile on things like rebate applications.  The Right Proposal In addition to answering all of your commercial customer’s questions, a comprehensive and accurate proposal is essential. Your proposal should have all the information the client will need, including an overview of their bills and detailed estimates of how much a solar system will save them—with any relevant information about net metering, rebates, and incentives, and a comprehensive shading analysis. The proposal process should also include a thorough review of the electrical system to identify any interconnection issues. A key factor in your ability to deliver accurate solar savings estimates is having the right savings assessment tools. Jenal emphasizes the importance of an approach that accounts for complexities like time of use rates. He suggests being conservative with your estimates so that the customer will be pleasantly surprised. Jenal also highlights that providing complete and accurate financing information is particularly important for a decision as significant as whether or not to install a commercial solar system. Materials on financing options should be thorough, including information tailored to your prospect’s region. Jenal also points out that, the solar contractor can play a valuable role in helping customers to understand their financing options. A strong commercial solar proposal will include all the information customers need, particularly accurate shading analysis, performance estimates, and solar savings estimates.  Clarity and Excellence During—and After—the Installation Once you’ve secured the sale, walk your customer through the solar installation and permitting process so they know what to expect. Be up front with the client about the length of time it may take for a utility to process the paperwork and issue a Permission to Operate letter, discussing the best and worst case scenarios. (63) When it comes to system permitting and applications for financial incentives, Jenal recommends offering a seamless process by handling the process for your client candidly and with attention to detail. In his book, he offers examples such as bringing the required utility paperwork to the first meeting after the contract is signed, and carefully filling out rebate applications to avoid having to reapply. With the inspector, Jenal recommends striving for a collaborative and communicative approach, as well as detailed plans from which you rarely deviate. (64) Of course, it is paramount that the installation itself surpasses expectations—sticking to the projected timeline and budget and having strong processes to avoid change orders as much as possible. Upon completion of the installation, walk the client through the system so they can see for themselves how much power it is producing. After the solar installation is complete, walk your customer through the system so you can be sure they understand it and know it's working correctly. Finally, your relationship with the client shouldn’t end when the installation is complete. Jenal recommends monitoring system performance to detect maintenance or connection issues when they arise, and staying in communication with the client—especially if you’d like to secure referrals. Providing operations and maintenance services is also something you can consider. Excellent customer service comes from establishing and keeping a client’s trust with honesty, expertise, and clear communication. This kind of approach can help you secure those all-important commercial clients and advance your company’s growth and reputation. It will also ensure that your customers are satisfied and come away knowing they have “delivered to [their] commercial operation a long-term benefit that will not only enrich the company’s bottom line, but will improve the world at the same time.” (129)   ### Your Guide to Monthly Snow Loss Values from NREL In addition to delivering a quality solar installation, providing an accurate estimate of how much energy the PV system will produce is one of the most critical ways solar contractors can ensure their customers are satisfied. But sometimes environmental factors–like snow–can complicate your efforts. That’s where loss values come in. As discussed in Aurora’s PV System Losses Series, these kinds of solar PV system losses are accounted for with linear loss factors. These are applied as percentage reductions to the energy production calculated by the simulation tools of your solar design software. Determining the appropriate loss factor to account for energy production lost as a result of snow on the customer’s solar panels is particularly tricky, however. Not only does the amount of snow vary widely between different locations, the design of the solar installation–particularly the tilt of the panels–can play an important role as well. Thankfully, a number of models have been developed that help solar contractors determine the appropriate snow loss factor to use when estimating solar customers’ energy production in order to get the most accurate result. In 2017, the National Renewable Energy Laboratory (NREL) published research that verifies the accuracy of a leading snow loss model and provides recommended snow loss values for different types of solar designs in different areas. Following up on Part 3 of our System Loss series, which introduced snow losses, today’s article discusses this snow loss model and shares NREL’s recommended snow loss percentages for PV systems at different tilts and different locations in an easily accessible format. With this local data, solar contractors can ensure their solar production estimates capture the effects of snow as accurately as possible. NREL’s Snow Loss Research In order to address the solar industry’s need for a reliable model that estimates solar production losses as a result of snow coverage, NREL integrated the methodology of a leading snow model (developed in the paper by Marion et al. in 2013) into its System Advisor Model (SAM) software. NREL then conducted a validation study demonstrating that the model reduced error in estimated annual energy by over 45% compared to measured values. Finally, using historic weather data, the agency applied the snow model to a wide variety of locations in order to determine snow loss values for different locations and tilts that reflect typical trends. These findings are published the 2017 paper, Integration, Validation, and Application of a PV Snow Coverage Model in SAM. About the Model The snow loss model assumes that the sliding of snow off of a PV Array is the primary method of removing snow, and other works support this conclusion. The model can be used in NREL’s SAM software, another tool for simulating the production from PV systems.1 The model is used during the PV simulation step, and acts to reduce the irradiance on modules similar to how shading and soiling are accounted for; Aurora applies snow losses in the same step. (For a quick summary of system losses, and how to configure your account settings in Aurora, see the Aurora Help Center.) Find the Right Snow Loss Values for Your System In order to provide solar contractors an accessible way to determine a representative snow loss factor to enter in their solar design software of choice, we ran the model in SAM for a range of locations in the U.S. across a range of tilts and compiled the appropriate percentage loss factors for each month according to NREL’s model. The map linked below has icons for each of the locations modeled, presenting monthly snow loss values for each respective tilt. (Click here to open the map in it's own tab.) Each of the 64 locations modeled had a south-facing system oriented at a tilt between 20 and 60 degrees. On the map, each different tilt is represented by a different color icon for accessibility; users who want to look up snow loss for a given tilt near an available city can simply click the appropriate icon to see the monthly snow loss values. (You may need to zoom in to see all of the icons.) The example plot demonstrates the snow losses for varying tilts at a given location in each month. For the town of Rockford, IL, snow losses can range from 20% to 50% in a typical January, depending on the tilt, and that snow loss drops down as spring encroaches. In general, rooftops with modules at a greater tilt will see less snow blockage, but the exact values will still depend on whether there’s enough space for snow to slide off and if the system is oriented away from south, resulting in less direct sunlight and less chance for the snow to slip away. You strive to provide a high level of accuracy to your solar customers when estimating how much energy the system will produce. If your customer lives in a U.S. location that experiences snow, using NREL’s monthly snow loss percentages in Aurora will help you ensure that your estimates more accurately represent reduced energy production from snow coverage. 1 This model can only be applied if snowfall data is available; the National Solar Radiation Database (NSRDB) has this data available for a “Typical Year” in the older TMY2 weather data sets, but not TMY3, so we only ran the model for those locations across a range of tilts. ### The Aurora Blog’s Top 10 Articles of 2018 From solar tariffs to new utility rates, 2018 has been filled with surprises for the solar industry. But it’s also been a year filled with progress towards a solar-powered future–as exemplified by the unprecedented state and local commitment to clean energy around the country, and by utility-scale renewables reaching prices that are at or below that of many fossil fuels. Through it all, our goal here at the Aurora Blog has remained the same: to produce helpful, informative articles, from policy updates to discussions of solar engineering concepts, to help you navigate the ins-and-outs of the solar industry. With the end of the year around the corner, we took a look back at our most popular articles published this year. If you missed these updates when they were first published, now’s your chance to catch up on the articles that have been a hit with your solar industry peers. 1. The 2018 State Solar Policy Changes You Need to Know Our most popular article published 2018 was our guide to the state policy changes affecting solar and renewable energy around the country. Originally published mid-year, we’ve been updating this guide with all the key policy changes around the country, both good and bad (including New York’s exciting new announcement just last week that is aiming for 100% carbon-fuel free electricity by 2040!). Quickly navigate to your state to see if there are any new developments you should be keeping tabs on. 2. Understanding PV System Losses, Part 1: Nameplate, Mismatch, and LID Losses PV system losses–the many factors that can reduce the energy production of your solar installation–can be complex. Throughout the year, Aurora’s Research Engineer Andrew Gong has been sharing his insights and industry data to help you better understand the different loss types and how to accurately account for them in your solar production estimates. While Part 1, exploring nameplate, mismatch, and LID losses, has been a hit, the whole series (which concluded with Part 4, published last week) has been popular with solar contractors around the country. You can check out the full series here. 3. 5 Reasons Blockchain Is Game-Changing for Solar Energy Blockchain–the mechanism behind bitcoin–remains something of a mystery to many. But for those of us passionate about clean energy, it’s worth paying attention to for several reasons. Our popular article on blockchain explores what it is why it matters for clean energy. 4. Does Solar Increase Home Value? The Latest Data for Solar Clients When you’re selling a residential solar installation, which will be part of a customer’s home for decades to come, one of the main things they may be concerned about is how it will affect their home’s value. We explored the literature on how solar installations affect home prices–and uncovered some exciting facts you’ll want to share with prospective customers. 5. How Net Metering is Evolving: Three Changes You Need to Know As solar energy becomes a greater proportion of the energy mix in markets around the country, utilities are experimenting with new rate structures with important implications for solar savings. We explored these changes to net metering policies and identified the major trends to be aware of and what they mean for solar customers. 6. Key Solar Energy Terms: Irradiance, Insolation, TSRF and More The amount of solar energy available at a location is an essential starting point for determining whether a solar installation makes sense and what design will work best. There are a number of different terms for quantifying solar energy and it’s important for solar professionals to well-versed in what they mean and how they differ. Our article on this topic provides a quick and handy primer, whether you’re a seasoned solar veteran or new to the industry. 7. Turning Solar Support Into Solar Sales: 5 Tactics for Effective Communication One of our favorite conference sessions at Solar Power International this year explored how we communicate about solar and highlighted communication lessons for increasing solar support. Although solar enjoys broad support from Americans, this doesn’t always translate into action. A panel of communication experts, from a former White House Communications to the former Chief Marketing Officer at Beats by Dr. Dre and Apple, shared their insights on how to get your message across effectively. We identified the key lessons from the session. 8. Lessons for Success from the 2018 Top Solar Contractors List Each year, Solar Power World compiles a list of the Top Solar Contractors in the U.S., based on the kilowatt capacity of projects they installed, developed, or helped construct in the previous year. We reached out to these companies to get their insights for running a successful solar business.In response to our question, “What advice and tips would you give to solar companies to operate successfully?” we saw several themes emerge. If you’re considering what your company can do to maximize success in the solar industry in the coming year, check out the advice of some of the most prolific U.S. solar installation companies of 2018. 9. SEIA President & CEO Abby Hopper on Solar Policy Priorities and More From Washington, D.C. to state capitals around the country, if there’s a policy change that affects clean energy in the U.S., chances are the Solar Energy Industries Association (SEIA) is there advocating for the advancement of solar. We had the pleasure of speaking with SEIA President and CEO Abby Hopper to learn more about SEIA’s advocacy priorities, changes in solar markets around the country, opportunities for increasing diversity in the solar workforce and customer base, and more. Check out our interview for Hopper’s take on these important industry topics. 10. The Green Bank Programs Making Solar Financing More Accessible, Part 1 As any solar contractor knows, solar installations remain out of reach for many interested customers due to the high upfront cost. But green banks, a new type of finance institution established by governments to accelerate the growth of clean energy markets, are helping to make solar financing more accessible. And this trend is still going strong with Colorado’s establishment of a green bank just last week (something we’ll explore in a future article). In this two-part series, we spoke with staff at green banks across the U.S. to determine what programs solar contractors in different states should be aware of and offer insight into the diversity of approaches green banks are applying to help solar markets grow. For more background on green banks and how they work, we also put together a primer explaining them. We hope that the Aurora blog has been a valuable resource for you in 2018 to advance your solar knowledge and your work in the industry. Do you have other favorite articles that didn’t make this list? We’d love to hear your feedback in the comments below!  P.S. As Aurora’s Content Marketer, I’m always thinking about how our blog can better serve the needs of solar contractors. I’d love to hear from you about what solar topics you’re most interested in reading about in 2019, or other thoughts on how we can continue to improve! Feel free to email me at gbrown(at)aurorasolar.com.  ### The 100% Clean Energy Revolution is Here–with Big Solar Opportunities Not only do solar and other renewable energy sources enjoy broad support among individual Americans (9 out of 10 support solar according to SEIA!), local governments have also been demonstrating increasing clean energy commitment. In fact, this month, Cincinnati, Ohio became the 100th U.S. city to set a target of sourcing 100% renewable energy! The Sierra Club, whose Ready for 100 campaign supports communities in committing to 100% renewable energy, estimates that 15% of the U.S. population now lives in a city with a 100% clean energy target. An additional 11 counties  and 4 states–Hawaii, California, New Jersey, and, most recently, New York–have made comparable commitments. The city council of Washington, D.C. has also committed to 100% renewable energy, pending approval by the mayor and Congress. Add to that the numerous other state actions in favor of clean energy this year and the over 400 mayors representing 70 million people that have expressed support for the Paris climate agreement, and it’s clear that support for solar and other clean energy is reaching unprecedented levels.   The importance of these commitments can hardly be overstated, particularly in light of the recent report by 13 federal agencies which identified drastic climate change impacts for the U.S., including significant contraction of the country’s economy. Fortunately, investment in renewable energy can significantly reduce carbon emissions while driving economic benefits and job growth. Not to mention it can create significant business opportunities for the solar industry! In today’s blog post we explore what local commitments to 100% renewable energy mean for solar–particularly how solar contractors can get involved in the clean energy transitions of their local communities. Which cities and towns have committed to 100% renewable energy? Cities all across the country have made commitments to 100% renewable energy, including Atlanta, Boulder, Minneapolis, Salt Lake City, San Diego, San Jose, St. Louis, Cleveland, and many, many more. For the full list, and contact information for city representatives, see the Sierra Club’s list of 100% Renewable Energy Commitments. Cities that have committed to 100% renewable energy (white dots) and cities already powered by 100% renewable energy (blue dots). Not pictured is Kodiak Island, Alaska (powered by 100% renewable energy). Source: Sierra Club Ready for 100. What is involved in a city’s commitment to 100% renewable energy? You might be wondering what it really means when a city commits to 100% renewable energy. Does the commitment only apply to electricity use by the local government, or does it apply to all residents and local businesses? While the specific commitments vary by city, many of these local commitments cover the electricity consumption of the entire community. As the Sierra Club explains, its 'Ready for 100' campaign recognizes community commitments... where a city’s leadership has established a goal to transition to the entire community to 100% clean, renewable energy. This can be through a stand-alone Resolution or Proclamation, or integrated into a community's Climate Action Plan or Energy Action Plan.” In the case of Cincinnati, the city has committed to sourcing 100% of electricity for residents and small businesses from renewable energy by 2035. The first stage of that commitment will involve 25 megawatts of solar development, and the city is exploring potential project sites. For communities interested in similar commitments, the Sierra Club offers policy guidelines, including recommendations that local clean energy mandates consider justice, equity, affordability, and access to clean energy, and that they follow a transparent and inclusive planning process. What do local commitments to 100% renewable energy mean for solar companies? As you might expect, these local commitments can open up a lot of business opportunity for solar companies to help meet the community energy needs with solar. Like Cincinnati, many of these cities are actively working to encourage the development of local solar projects or directly soliciting bids from solar companies. Utility Dive reports that a partnership of 20 cities–including Boston, Chicago, Houston, Los Angeles, Portland, and Orlando–have teamed up to jointly issue Requests for Proposals (RFPs) for collectively purchasing a total of 5700 GWh renewable energy! Similarly, Los Angeles, San Francisco, Portland, and Seattle have jointly issued a Request for Information (RFI) for electric vehicle charging infrastructure development valued at more than $10 billion. Other examples of cities incorporating solar development into their 100% renewable energy commitments include: Concord, New Hampshire–planning a large solar plant on a closed landfill and changing local zoning to better accommodate local solar projects Denton, Texas–approved a contract for a 100 MW solar project Denver, Colorado–in addition to a community solar program, Denver is requiring all new construction to be net zero by 2035, a move which may encourage more solar on new construction Fayetteville, Arkansas–exploring solar projects on its municipal buildings Orlando, Florida–in addition to other pro-solar initiatives, Orlando’s Collective Solar cooperative helps residents take advantage of economies of scale when purchasing solar While the specific plans for achieving 100% renewable energy vary by city, if there are cities in your area with such commitments it’s worth taking a close look at their procurement plans. In particular, check to see if they include RFPs or other opportunities for your solar company to participate in local solar development. For those interested in learning more, the Sierra Club’s Ready for 100 list includes contact information for local representatives who can provide more information on particular programs. Even if your local area doesn’t have a 100% clean energy commitment, take a look at what other clean energy initiatives they have. Many cities and towns without such ambitious targets still have powerful incentives for advancing local clean energy. For example, Watertown, Massachusetts recently passed a measure requiring solar installations on all new commercial buildings over 10,000 square feet. If your locality doesn’t have clean energy policies, consider talking with your local representatives about how clean energy can benefit your community. After all, as a solar contractor, you know the ins-and-outs of solar project development and can be a valuable source of information for your elected leaders. Around the country, local communities are leading the way on the clean energy transition–which is good news for the environment, the economy, and the solar industry! ### The 2018 State Solar Policy Changes You Need to Know [Editor’s note: This article was originally published on May 16, 2018. It was updated on August 27, 2018 and again on December 5 and 24, 2018 to reflect new policy developments. The December updates reflect new solar policy changes in California, Illinois, Kansas, Maryland, Massachusetts, Nevada, New York, Pennsylvania, Virginia, and Washington.] The solar industry is always dynamic, and keeping track of the latest developments around the nation can be tricky. Although 2018 got off to a rocky start with the federal government’s decision in January to impose a 30% tariff on foreign-manufactured solar components, there have since been a plethora of state-level policy developments that paint a more positive picture for the industry. Actions by California, New Jersey, New York, and Washington state to commit to 100% renewable or carbon-free energy were especially noteworthy. Nevada also established an ambitious clean energy targets of 50%. California also made the striking decision to require solar installations on new homes. This move—by the world’s fifth largest economy—will help normalize solar technologies and massively expand the solar market. Additionally, Hawaii’s redesign of utility incentives provides a model for how utilities can benefit from solar growth. Virginia’s major utility took the first steps toward significant solar procurement in accordance with a new state law. Illinois, New York, and Massachusetts updated their solar incentive programs and Maryland offered grant funding for solar-plus-storage projects to improve resilience. Not all of the state-level actions in 2018 were supportive of solar, however. In particular, rollbacks of net metering may dampen the solar markets in Michigan and Connecticut. Massachusetts and, more recently, Kansas approved demand charges for solar customers. Despite these setbacks, overall 2018  demonstrated that many states recognize the value of solar and other renewable energies and are ready to take action.  Just interested in a particular state? Click on one to jump ahead: California, Colorado, Florida, Hawaii, Illinois, Maryland, Massachusetts,New Jersey, Nevada, New York, Pennsylvania, Utah, Virginia, WashingtonConnecticut, Kansas, Massachusetts, Michigan(Green indicates positive developments for solar and orange indicates negative ones. Massachusetts had both and appears in both sections.)  The Good News California By far the biggest state policy updates, in terms of impacts for the solar industry more broadly, came out of California this year. California mandated that all new homes include a solar installation starting in 2020, as part of a requirement to make homes net zero. Additionally, in September, California Governor Jerry Brown  signed legislation requiring all of the state's energy to be carbon-free by by 2045. As the fifth largest economy, California's decisions on these issues have massive implications for the growth of solar energy. The Solar on New Homes Mandate On May 9th, the California Energy Commission mandated that nearly all new homes have rooftop solar starting in 2020. The changes, part of the state’s newly approved 2019 Building Energy Code, received final approval on December 5th. The decision will significantly increase demand for solar energy; Greentech Media predicts a 14% increase in total U.S. solar sales over the next four years as a result! It also represents an important shift in making solar energy a new normal for consumers. Resulting industry changes may also contribute to falling costs for California solar installations. This announcement will spur further growth in the California solar market, which has more installed solar than any other state by a factor of five according to SEIA.  SB 100: Carbon-free Energy for California by 2045 In September 2018, California Governor Jerry Brown signed into law Senate Bill 100 which establishes a target of providing 100% of the state's electricity from carbon-free sources by 2045. In addition to creating a path to complete clean energy, the bill accelerates the pace of California's clean energy transition–increasing to 60% (from 50% previously) the amount of energy that must come from renewable sources by 2030. California is the second state to make a 100% clean energy commitment after Hawaii, which made that commitment in 2015.  At the signing ceremony, Brown also announced an executive order to make California carbon neutral also by 2045, meaning that it would need to remove as much carbon dioxide from the atmosphere as it emits.  Colorado Colorado became one of the first states to designate energy storage as a consumer right when Colorado Governor John Hickenlooper signed SB 18-009 into law in late March. The law states that residents should be able to install, use, and interconnect energy storage systems without unnecessary restrictions or discriminatory rates. It calls upon the Colorado Public Utilities Commission to establish rules governing customer-sited energy storage.  Florida In a notable development for the Florida solar market, the Public Service Commission issued a statement in late April declaring that residential solar leases are allowed in the state. Previously, solar leases were deemed “third-party electricity sales,” which are prohibited in Florida. Sunrun successfully argued to the commission that solar leases should be allowed because the payments are fixed and not contingent upon the amount of solar electricity the system produces. Florida solar customers now have a new financing option to choose from and solar companies in the state can offer a new product.  Hawaii Hawaii is changing the revenue model for investor-owned electric utilities to better align their incentives with the growth of solar and energy storage. The measure, signed into law in April, is expected to aid the process of modernizing the state’s electricity grid because utility revenues will now be linked to performance metrics. The use of distributed energy resources like solar, rather than investment in costly new utility-owned infrastructure projects, will be incentivized. This is big news. Utilities are a major player in the power sector, and their support or opposition is a major determining factor in solar market growth. Better aligning utility incentives with solar growth, as states like Hawaii and New York have endeavored to do, presents new opportunities for utilities to support the growth of renewable energy. [Note: For related insights on how new revenue models for utilities can advance the growth of solar, see Aurora’s interview with Dr. Varun Sivaram.] Additionally, in July, regulators ruled that existing solar customers in Hawaii who have net metering agreements (from prior to the state’s elimination of net metering in 2015), may now add energy storage systems without voiding the terms of their metering agreement. Illinois In April, Illinois regulators produced a plan to procure 25% of the state’s energy from renewable sources by 2025, as required under the Future Energy Jobs Act passed in 2016. Not only does the plan cover large investor-owned utilities, it also includes smaller, municipal utilities and rural electric cooperatives–which solar advocates say will make solar incentives more accessible to low-income and rural customers. The policy impacts the state’s Renewable Portfolio Standard, which allows utilities to source some of their required renewable energy in the form of credits (Renewable Energy Certificates, including solar-specific SRECs) produced by renewable energy system owners. Under the new policy, Illinois existing SREC program is being updated. The SREC program will now become an adjustable block rate program, in which solar will be compensated at a set flat rate (which declines as certain levels of installed capacity are hit), rather than a traditional SREC market where prices fluctuate based on market dynamics. Additionally, the SREC incentive program now lasts for 15 years, rather than the previous 5 year limit. The details of the program are still being finalized, but it will go into effect sometime in 2019.  Maryland In November, the Maryland Energy Administration launched a program to create “resiliency hubs,” powered by solar and energy storage, in disadvantaged communities. The program makes $5 million in grant funding available to solar and storage providers to help ensure low-income residents have access to basic services during power outages. The deadline for grant applications is March 1, 2019 and more information on the program can be found here. Massachusetts In October, the Massachusetts Department of Energy Resources approved compensation for owners of new solar projects under the state’s Solar Massachusetts Renewable Target (SMART) program, a successor to its previous SREC incentive program. Like SRECs, the SMART program is a production-based incentive, meaning that PV system owners are compensated based on the amount of energy their system produces. Unlike the SREC program, however, system owners receive a fixed rate of compensation per unit of energy produced rather than being compensated a variable amount based on market demand. The program is a declining block incentive program (similar to Illinois’ incentive program), where compensation rates will gradually decline over time as certain levels of installed capacity are reached. Applications for SMART compensation opened on November 26, 2018. Although compensation under this new program will be somewhat less than under the previous SREC program which had reached its limit, the program maintains incentives for solar customers and provides much-needed certainty to the industry. New Jersey The New Jersey solar industry also got good news this year. Governor Phil Murphy signed into law several key energy bills, including one that updates the state’s Renewable Portfolio Standard, requiring 35% of its power to come from renewables by 2025 and 50% by 2030. In addition, the law establishes the most ambitious solar-specific target in the nation, requiring that utilities source ~5% of their energy from distributed solar by 2021. The law also includes a 600 MW energy storage target and establishes a community solar pilot program for the state. It also establishes a planned phase out of New Jersey’s SREC program in 2021 but calls on regulators to establish a successor program to support distributed New Jersey solar projects.  In other positive news for clean energy advocates, Governor Murphy also signed an executive order requiring the development of an Energy Master Plan providing a comprehensive plan for the state to reach 100% clean energy by 2050.   New York In October, New York Governor Andrew Cuomo announced that the state will make $40 million of incentives available to support solar-plus-storage projects. The initiative is intended to advance New York’s existing commitments to source 50% of its electricity from renewable sources by 2030 and install 1500 MW of energy storage by 2025. The funds will be available as part of New York’s existing Megawatt Block incentive program. Eligible projects with energy storage will be able to receive an additional incentive of $350 per kWh of installed storage capacity. Solar projects that have already been approved for the state’s existing incentives may be approved for these new incentives if they add energy storage. Then, on December 17, 2018, Governor Cuomo pledged the state to 100% carbon-free electricity by 2040 in a speech announcing his policy agenda for early 2019. The move builds upon the state’s existing strong commitments to renewable energy. Nevada In the midterm elections in November, Nevada voters approved a ballot initiative (”Question 6”) to increase the state’s Renewable Portfolio Standard (RPS) to require utilities to source 50% of their electricity from renewable energy by 2030. This is a significant increase from the state’s previous RPS which called for 25% renewables by 2025, and another great example of states leading the way on clean energy policy. Nonprofit advocacy group Vote Solar worked to build support for the measure, and the Natural Resources Defense Council estimated that the policy could contribute to the creation of 11,170 full-time jobs and $1.5 billion in economic activity in 2030.  Pennsylvania Pennsylvania has lagged behind neighboring states like New Jersey and Maryland in solar development. A new initiative announced by the Pennsylvania Department of Environmental Protection (DEP) may help change that. Funded by a Sunshot grant from the U.S. Department of Energy, the state has initiated a 2-year planning process called “Finding Pennsylvania’s Solar Future” which is exploring approaches to provide 10% of the state’s energy from in-state solar by 2030, including changes to Pennsylvania’s Alternative Energy Portfolio Standards (it’s RPS). A key output of the collaborative planning process is Pennsylvania’s Solar Future Plan, a set of recommendations released in November 2018 which includes 15 recommended strategies. The next step will be the development of an Implementation Report which will provide direction on how to implement the plan. However the plan is implemented, it’s likely to be good news for the solar industry in Pennsylvania. The DEP predicts the plan could create between 60,000 and 100,000 new jobs, and as much as $1.6 billion in economic benefits annually. Additionally, Governor Tom Wolf signed a bill earlier this year allowing commercial PACE (C-PACE) financing in the state, which would allow commercial property owners to repay solar loans via their property taxes, in municipalities that establish C-PACE programs. Utah Two new policies with important implications for the Utah solar industry were signed into law by Utah Governor Gary Herbert in late March. One extends a $1,600 tax credit for residential Utah solar customers for an additional two years. The credit will begin to be phased out in 2021 over a period of three years. The other is a consumer protection measure that requires solar companies provide all residential customers with a disclosure statement to help ensure they understand the terms of their contracts. SEIA has applauded these developments. These developments, particularly the tax credit, are welcome news for Utah’s solar industry since recent data show a slowdown in its rooftop solar market, likely stemming from a 2017 change to the state’s net metering approach. Virginia The solar industry in Virginia is poised to surge as a result of its Grid Transformation & Security Act of 2018 which states, among other things, that 5000 MW of solar development by utilities is in the interest of the state. In October, Dominion Virginia Power issued a request for proposals (RFP) for 500 MW of solar projects, to be developed by 2020. The projects may either be sold to Dominion or it will purchase the energy they produce through 20-year power purchase agreements. The resulting solar development will be utility-scale, with the minimum allowable project size being 5 MW.  Washington On December 10, 2018 Washington Governor Jay Inslee released an ambitious clean energy proposal that addresses “five policy goals: 100% clean energy by 2045, transitioning to electric transportation, adding a clean fuel standard, constructing energy efficient buildings and eliminating hydrofluorocarbon.” As part of the transition to 100% clean energy, coal-fired power plants would be phased out by 2025. The proposal also calls for the reduction of over 80 million metric tons to limit them to 25% below 1990 levels by 2035. The Bad News Connecticut Despite vocal opposition from the Connecticut solar industry, the state recently eliminated net metering for solar customers. The bill, which advocacy groups had decried as a serious threat to 2000+ Connecticut solar jobs was signed into law by Governor Dannel Malloy in June.  As written, the policy would set a new flat rate for solar compensation, though the exact structure that will be implemented remains to be seen. The decision now goes to the state Public Utilities Regulatory Authority for review and rate setting. One bright spot in the bill is that it establishes a target of 40% renewable energy by 2030 under the state’s renewable portfolio standard by 2030. Kansas While many states took steps to advance the growth of the solar industry, Kansas took a step back this year. In September, Kansas regulators approved a new charge that only applies to solar customers of the state’s largest electric utility, Westar Energy. The demand fee–of $9 per kilowatt in summer and $3 per kilowatt at other times of the year–is expected to cancel out the savings for many smaller solar projects, reports Midwest Energy News. The fee will apply to solar systems installed in 2015 and later, including new systems. Demand charges, while common for commercial customers, have historically been rare for residential customers (though Massachusetts also applied residential demand charges this year, as discussed below).These charges are based on the maximum amount of energy the customer used during any (usually 15-minute) interval during the month. They are very difficult for customers to control and, as we discuss in a commercial case study, can significantly reduce solar savings. Massachusetts In one of the first blows to solar energy this year, Massachusetts approved new charges for new solar customers in January. At the same time, the state became the first in the nation to approve demand charges for all residential net metering customers starting in 2019, a “charge without a cause” according to industry groups. A bill passed by the Massachusetts Senate in June raised hopes that the demand charge might be repealed. Unfortunately, the version ultimately agreed upon by the House and Senate and signed into law by Governor Charlie Baker on August 9th, did not contain the repeal language. It upholds the charges, stating that a ”distribution company may assess a demand charge if it is based on system peak demand during the hours of a day determined to be peak hours of system demand and if the distribution company regularly informs affected customers of the manner in which demand charges are assessed and of ways in which said customers might manage and reduce demand.” Michigan Michigan dealt a serious blow to solar by eliminating net metering. In late April, the Michigan Public Service Commission elected to replace net metering with a new approach. Under this policy, solar customers will buy energy from the grid at the retail rate but be compensated for the solar energy they send to the grid at a significantly lower rate. That rate will be based on an estimate of how much the utility would otherwise pay to procure that power, an “avoided cost” calculation. Fortunately, current Michigan net metering customers will retain their current rates for 10 years, but the shift is a big loss for future Michigan solar customers. [Note: For an overview of related trends, check out Aurora’s blog post on how net metering is changing—and being scaled back—around the country.] Although not all of the state policy changes to date this year were favorable for solar, it’s great to see so many states recognizing the value of solar and working to make it more accessible. We’re excited to see how solar continues to grow in the coming year! Are there policy developments we missed?  Let us know in the comments below! ### Don’t Overlook the Power of SRECs in Your Solar Sales Discussions As a solar contractor, you’re always looking to convey the most persuasive and relevant information in your sales conversations. When you’ve found the ideal prospect, you want to make it abundantly clear how a solar installation can benefit them–including clearly spelling out the financial benefits. You also want to build trust by providing up-to-date, educational information that answers their questions and concerns about going solar. If your prospective customer lives in a state that offers Solar Renewable Energy Certificates (SRECs), a discussion of SRECs–which can significantly increase the return on investment–should be an integral part of your conversations. This article explores a number of important points about SRECs you may want to bring to a prospect’s attention in a sales conversation. The Basics: What Are SRECs? An SREC is a renewable energy certificate (REC) for solar. RECs are tradable credits purchased by electric utilities to serve as proof that they have procured a certain percentage of their energy from renewable sources like wind and solar power. The percentage requirement is established by a state as part of a Renewable Portfolio Standard (RPS), a mandate created to encourage the use of renewable energy. Twenty-nine states, Washington, D.C., and three territories have adopted an RPS. Each REC represents the environmental benefits of one megawatt hour (or 1000 kilowatt hours) of renewable energy generation. One SREC is created for each megawatt hour (MWh) of electricity generated from solar energy systems. A state with an SREC market has a solar-specific renewable energy requirement for utilities, or “solar carve-out,” to help spur the development of solar under the state’s RPS. PV system owners in these states can earn income by selling SRECs associated with their systems’ output (in the form of these electronic certificates) into their state SREC market. State Renewable Portfolio Standards as of October 2018. Source: NC Clean Energy Center’s Database of State Incentives for Renewables & Efficiency (DSIRE). Highlight Eligibility for SREC Income First, you may need to tell prospective solar customers if their state has an SREC market (or if they can sell SRECs in another state market), as they may not be aware. The states that have SREC markets are Illinois, Ohio, Pennsylvania, Maryland, New Jersey, Delaware, and Massachusetts, as well as Washington, D.C. States that don’t have an SREC market but where people can sell SRECs across the border in the Ohio SREC market are Indiana, Michigan, Kentucky, and West Virginia. Pennsylvania allows SRECs to be sold into the Ohio market as well, and historically has allowed out-of-state generators to participate in its SREC market–though changes implemented in 2017 have begun to limit this. Regardless of the presence of a state market, it should be made clear to your customers that SRECs are only available to the owners of PV systems. This means that homeowners and businesses going solar via a lease or PPA, are not eligible for SRECs. This may be an important consideration for them as they weigh different solar financing options. Explain the Value of SRECs A solar system owner earns one SREC for every 1 MWh of electricity their system generates. The average size five kilowatt (kW) residential system produces between five to eight and a half MWh of electricity per year (i.e., 5 to 8 SRECs). (An analysis of the production of 4.9 to 5.1 kW PV systems designed in Aurora found an average of 6.81 MWh per year, with most systems producing between 5 and 8.5 MWh per year.) Given that, SRECs can seriously impact the financial returns of installing solar panels in some areas. The actual amount of money a solar panel owner will receive for their SRECs varies by state market and SREC prices fluctuate over time. For example, in 2018, the price per SREC in Washington D.C. ranged from $420 to $295 and in Massachusetts they ranged from $322 to $265; meanwhile in Maryland and Ohio, they ranged from $15 to $5.50 and $7 to $3.50 respectively. SREC value is determined by supply and demand. The demand is largely driven by utilities’ need to meet their solar RPS requirement or pay a compliance penalty if they don’t. This penalty is called an Alternative Compliance Payment (ACP) and is a per-MWh fine that electricity providers must pay for the amount they fall short of their RPS requirements. The ACP serves as a ceiling on SREC prices because electricity providers will save money by buying SRECs only if the SRECs cost less than the ACP. Therefore, lower ACP values equate to lower SREC prices. As more solar is installed, there is a greater supply of SRECs in the market. This can result in lower SREC prices over time. However, the volume of SRECs required in a state is directly proportional to the overall RPS requirements for that particular state. Often those RPS requirements are set to increase over time, which can mean that the demand for SRECs increases along with solar installation numbers. (Note: If you use Aurora solar software, our financial analysis tools can help you to calculate the value of the customer’s SRECs.) Know the Specifics of Your State Market Each state has different parameters for their SREC program in terms of things like how much energy utilities must source from solar, the cost of the ACP, and the length of time customers can receive credit for SRECs. You’ll want to be familiar with the details of the SREC markets in the states where you operate so that you can be an effective resource for your customers. For example, in Massachusetts, the RPS requires that, by 2020, 15% of all electricity sold by regulated electricity suppliers serving retail customers come from renewable sources. While the state’s 1,600 MW program cap has been reached, their “SREC II” program has been extended to help transition to a new Solar Massachusetts Renewable Target (SMART) incentive program. SREC prices in Massachusetts are also determined by an additional factor, the Solar Credit Clearinghouse Auction, which is an opportunity for brokers to sell SRECs at a set, guaranteed price when there is market oversupply. In 2017, the SACP was set at $350 and the Solar Credit Clearinghouse Auction II price was set at $285. In Illinois, the RPS commits the state to producing 25% of its electricity from renewable energy sources by 2025, with 1.5% coming from solar systems. New Jersey utility PSG&G created a particularly creative initiative to provide loans to homeowners for their solar systems, allowing the loan repayment to come from the SRECs generated by their solar systems. The length of SREC programs also vary. In Massachusetts and New Jersey PV system owners can claim SRECs for ten years. In Maryland, in contrast, eligible systems can continue to produce SRECs for the duration of the installation’s productive life. The Database of State Incentives for Renewables & Efficiency (DSIRE) is a helpful resource for state-specific research about SRECs. Being able to highlight local nuances to your customers is crucial to helping them understand the policies that will apply to them. Limitations and Special Cases There are a few caveats and special circumstances your customer may want to know about. If homeowners or businesses sell their SRECs in an SREC market they cannot claim that their building is powered by solar or make claims about reducing their carbon footprint with solar (particularly applicable to businesses interested in making this claim for marketing purposes.) That’s because by selling their SRECs solar customers transfer the right to claim their energy as renewable because the utility is now using those SRECs to reduce the amount of renewable energy they would otherwise have to generate themselves. If the owner of the solar system claimed it for themselves as well it would mean the resulting emissions reductions would be counted twice, something regional tracking systems work to prevent. (For more on claims refer them to the Environmental Protection Agency’s Solar Power Use Claims Guidance.) Customers may also be keen to know that if they sell their home or business in the future, they can transfer rights to SRECs to the new buyer as part of the sale process. This can act as an incentive for getting a higher sale price. How Does Selling SRECs Work? There are several ways a solar system owner can sell their SRECs. Many solar customers opt to sell their credits through an aggregator who acts as a broker between system owners and state markets. For a fee, these companies manage SREC sales to maximize returns and sometimes provide other resources like online systems to track performance. Working with an aggregator requires less expertise and direct management than selling SRECs directly in the state market, though that is also an option. Alternatively, some customers enter into an agreement with a financing partner where they receive a fixed payment for SRECs over a set number of years. This can serve to insulate them from market fluctuations. Some solar financing companies and SREC aggregators offer partnership programs with solar contractors. Like all major business decisions, these options should be weighed carefully. However, as you become more familiar with SRECs and the options you find to work best for your customers, these kinds of programs may be a worth exploring to help your customers monetize their SRECs. Many customers are motivated to install solar because of the savings it can offer. A compelling sales conversation is bolstered by the inclusion of the role SRECs can play in a customer’s solar ROI. Depending on the state, SRECs can generate significant income for the system owner. Because SRECs and SREC markets can be complex topics to understand, positioning yourself as a resource to help prospective customers make sense of the details can be a great way to build trust and showcase the financial benefits of solar.   ### 5 Ways to Make Solar Software Your Secret Weapon for Solar Sales Using cutting-edge solar software like Aurora gives you an advantage when it comes to the quality of your solar designs for your customer. But for prospective solar customers who may be unfamiliar with the solar design and installation process, it’s not always easy to understand how your solar design software sets you apart from competitors. It doesn’t have to be that way, however. When you can clearly communicate the benefits of your advanced design tools, you can help the customer see the value your company brings to the table–and ultimately close more sales. These five strategies make it easy for prospective solar customers to understand how Aurora sets your company apart.   1. Educate the Client with Stunning 3D Visuals They say a picture is worth a thousand words and that’s certainly true when it comes to solar sales. One of the easiest and most powerful ways to help the customer understand the quality of your design process with Aurora is to show them. Aurora generates beautiful and accurate 3D representations of the project site and your solar design, letting the customer see exactly what their home or business will look like with your installation. These visuals can help them feel confident that they’ll be happy with the aesthetics of the PV system–a crucial consideration for an investment that will likely be with their property for the next 25 years. A solar design in Aurora (right) with an irradiance map showing solar access, compared to aerial imagery (left). Accurate visuals give customers a realistic sense of how their solar installation will look. Aurora visuals can also be helpful in educating the client about different solar design considerations. For instance, the sun path simulator, which shows the sun’s movement during every daylight hour of the year, can help illustrate how shade moves across the property at different times. Similarly, Aurora’s irradiance engine calculates the available solar energy at every point on the roof surface and generates beautiful irradiance maps that show differences in solar access. These are great ways to help the customer understand why particular array locations are better than others.   Aurora simulates the sun’s movement, and resulting shadows, during every hour of the year. The sun path animation provides a handy visual representation of this. You can also use these tools to demonstrate options the customer might want to be know about. For instance, if trees cause a lot of shading, you could provide irradiance maps and production data for different scenarios, such if trees were pruned or removed.   2. Demonstrate Accurate Solar Sizing and Production Estimates with Industry-Leading Algorithms Of course, even more than stunning visuals, the customer wants to know they can trust your expertise–particularly when it comes to the amount of energy that their system will produce and how much of their energy usage it will offset. Aurora has developed proprietary algorithms that allow you to estimate the customer’s energy usage and forecast solar production with confidence. Aurora gives you a variety of ways to estimate how much energy the customer uses at different times, such as inputting their electric bills or uploading data from their utility. This provides a strong starting point for determining how much solar energy the customer's needs. From there, Aurora makes it easy to precisely calculate how much energy the system will produce. The National Renewable Energy Laboratory (NREL) has validated the accuracy of Aurora’s shading engine, finding its estimates of available solar energy to be statistically equivalent to manual, onsite measurements.  Aurora helps solar contractors accurately determine the customer’s energy consumption and future solar energy production throughout the year. Additionally, our algorithms for calculating solar energy production take into account a number of considerations other solar software programs don’t. For example, Aurora is the first solar software that can model electrical behavior within each module, accounting for the locations of bypass diodes. This also us one of the only softwares that can model panels with integrated cell-string optimizers like Maxim’s. Likewise, many solar software programs do not model how different stringing configurations change energy production, such as if shaded modules are grouped together in a separate string. We also model whether the selected inverter performs local or global maximum powerpoint tracking. While customers may not understand all of the technical details that impact how much energy their solar installation will produce, highlighting that you’re using one of the industry’s most advanced software programs tools for system sizing and energy production modeling can help close more solar sales. 3. Showcase Tools for Accurate Post-Solar Rates and Financial Returns Most likely, one of the main reasons your prospective customer is interested in solar is to save money on their utility bills. That means the accuracy of the bill savings you present to them is of the utmost importance. Explaining how Aurora produces accurate estimates of their solar savings can help the customer be confident your design will deliver the savings they seek. Aurora has an extensive database of utility rates–covering over 3,000 utilities and over 17,000 utility rates around the world–so you can accurately model your customer’s electricity bill and how it will change with solar. Aurora even models bill savings under time of use rates, in which the value of electricity varies depending on time of day. Utilizing accurate pre- and post-solar utility rates provides the client with a predictable future monthly bill and overall lifetime savings. Aurora also offers financial modeling tools that allow you to show the customer key metrics like the Net Present Value (NPV), Internal Rate of Return (IRR), and Levelized Cost of Electricity (LCOE). Plus, Aurora has an extensive database of financial incentives, so you can take into account any applicable grants, tax rebates, or production based incentives (PBIs) like SRECs when presenting financial metrics to the customer. 4. Explain How Aurora Reduces Change Orders by Up to 100% Your prospective customer probably also wants to know that the installation process will go smoothly–without unexpected errors, changes, or delays. You can highlight the wide variety of tools Aurora gives you to ensure design accuracy and avoid time-consuming change orders (revisions to the design) at a later date. Aurora makes it easy to accurately model the project site–from the height and pitch of the roof to the presence of obstructions like skylights and vents. Aurora’s ruler tool makes it easy to confirm site dimensions. The ruler snaps to objects like building edges, obstructions, solar panels, carports and groundmounts and indicates their length. Additionally, Aurora allows you to specify required setbacks so that your panel placement doesn’t violate fire codes or jurisdiction requirements. Aurora will alert you of any violations. Aurora's ruler tool snaps to objects like roofs or solar panels making it easy to ensure the accuracy of your site model.  If you have a premium account, you have even more cutting-edge tools to ensure accuracy, such as LIDAR, computer vision measurements, and even National Electrical Code (NEC) validation to ensure that your design doesn’t violate any electrical or mechanical constraints or industry best practices. For the customer, all of this means that you are less likely to have to make design changes (change orders) later that add time and cost to the project. In fact, California contractor Solarponics reports that they have completely eliminated change orders since switching to Aurora! 5. Highlight How Aurora Makes It Easy to Find the Best Design Ultimately, your customer wants to know they’re getting the best solar design. Aurora’s solar software helps set your company apart by giving you an efficient design workflow that allows you to quickly and cost-effectively explore a variety of design options to find the best one. For example, in Aurora, you can copy existing designs you’ve created and then make adjustments, letting you quickly iterate through different options, like incorporating microinverters or DC optimizers or using different panels. From there, you can quickly assess the energy production and financial returns of each design to find the best choice. Companies with less efficient design processes may not have the time to explore multiple design options and find a custom solution. Highlighting this difference can give you a solar sales advantage. You’ve made an investment in top-notch solar design tools that help you deliver high-quality solar installations to your customers, so why keep those tools under wraps? Discussing your design process can help the customer see what sets you apart from the competition. Do you have other strategies for highlighting the advantages of your solar design software in solar sales conversations? Let us know in the comments below! ### The Peace of Mind Every Solar Contractor Needs: Having the Right Insurance As a solar contractor, you know better than anyone that your work comes with a certain amount of risk. You and your business are vulnerable to a whole range of possible missteps from damage to a residence or a worker injury to loss of equipment or a truck running off the road. The right insurance coverage is essential to mitigate these kinds of potential risks and liabilities. While there are general insurance requirements that every contracting business must meet, there are also a number of considerations specific to the solar industry. A contractor should keep these factors in mind when designing the perfect policy for their business. In this article, we discuss some of the important insurance considerations for solar contractors and some of the coverage types they may want to explore. For firsthand knowledge about insurance for solar contractors, we spoke with Petar Georgiev, Managing Partner at Renewable Energy Insurance Broker, an insurance company that has specialized in serving commercial and industrial solar companies for the past 16 years. We’ve also included particular recommendations for the residential solar contractor from the Solar Energy Industries Association (SEIA) regarding basic standards for insurance during the construction phase of an installation, standards that need to be met for a finance provider to provide system financing. It is important to note that it is the contractor’s responsibility to fully understand their policy in order to avoid financial losses from lack of coverage. This article is meant as a starting point because, ultimately, contractors should consult a licensed insurance broker about their particular needs when deciding on the ideal policy. Bottom Line Coverage There are certain baseline insurance coverage requirements all solar contractors and subcontractors should meet. Georgiev states that policies for all contractors and subcontractors must include general liability insurance, workers’ compensation, employer’s liability insurance, automobile liability insurance, and excess/umbrella liability insurance. General liability insurance provides several types of coverage for the contractor: bodily injury, property damage, and comprehensive coverage to protect your finances in case of lawsuits or claims. Bodily injury coverage pays for third-party bodily injuries, which means that it covers injuries that occur on the property under construction by the contractor (not including injuries to employees of the contracting company). Property damage coverage applies to property other than the work the contractor has performed. Georgiev gives the example of a solar contractor installing a commercial solar system on a warehouse. If a fire from an electrical malfunction were to destroy both the solar system and the warehouse, the warehouse would be covered while the solar system would not. General liability also includes what is called products liability/completed operations coverage. This covers injuries or damages that may be caused by goods or services sold by the solar contractor. For example, Georgiev explains, if a contractor installs a new solar system on a rooftop and a panel later falls off and hurts someone, then the injury would be covered (but not the panels themselves). Georgiev states that “general liability insurance is critical for any solar contractor (general, or sub-contractor) because of the simple fact that even a single accident could turn into a lawsuit from which you could not recover on your own and without it you won't be able to protect your company and your assets.” Mike Smith, an agent with Solar Insure, another firm that specializes in solar contractor insurance, suggests that contractors retain a trimmed-down general liability policy after retirement or sell the business to protect themselves from liability. This is because there is no time limitation for bodily injury lawsuits, making them very common in the U.S. There are two types of limits to consider when purchasing general liability insurance: the per occurrence limit (the maximum a carrier will pay per claim filed) and the aggregate limit (the total they'll pay during the policy period). Both Georgiev and SEIA recommend $1,000,000 minimum per occurrence and $2,000,000 minimum for aggregate. Also standard for solar contractors is workers’ compensation and automobile liability insurance. Georgiev recommends a policy limit of $1,000,000 per accident, per employee for the workers’ compensation. He also suggests combined single limits of at least $1,000,000 per occurrence for vehicles owned or hired for the automobile liability insurance. Both Georgiev and SEIA advise contractors to consider excess/umbrella insurance on top of the general liability policy to cover any loss that goes beyond the coverage. For this type of coverage, SEIA recommends limits ranging from $2,000,000 to $5,000,000. SEIA also suggests professional liability insurance if the contractor is providing design work and cyber liability coverage if they are storing confidential customer data. Other Coverage to Consider There are a number of other insurance coverage considerations solar contractors may want to explore when assessing their insurance needs. According to Christy Howley of ProSight Specialty Insurance, errors and omissions (E&O) coverage “goes beyond general liability to protect against subjective claims like negligence, unfair dealing, and inaccurate advice.” A contractor may also consider employment practices liability insurance (EPLI) for protection against employment related lawsuits including wrongful termination, discrimination, or sexual harassment. Another type of coverage to consider is obstruction of premise supplemental (OOPS) coverage which protects a contracting business from having to personally compensate a client for an installation accident that leaves their home uninhabitable. Georgiev notes that contractors may also want to ensure that their coverage includes the testing period of a new installation, which can take anywhere from 72 hours to 1 week long. Finally, contractors should make sure that they are covered for the loss of their own work from things like damage by vandalism or a natural disaster. A “builder's risk” policy can insure against this, including covering the resulting loss of income for the project owner. Watch for Exclusions It is important to be aware of any exclusions in your policies. Exclusions are policy provisions that remove coverage for a particular risk, usually to narrow the scope of a very broad agreement. Therefore, Georgiev warns, there are certain situations a contractor should explicitly ask about because they might not be covered in the contract. One such exclusion is “care, custody, and control” which means that the policy does not cover items temporarily under care or control of the contractor, like a roof. Another particularly important exclusion to be aware of is coverage for tools and materials on the jobsite. Renewable Energy World recounts the story of a contractor who had a $52,000 inverter stolen from a job site only to realize the loss was excluded under their insurance policy. Ara Agopian, President of Solar Insure, says that a contractor would need to specifically ask to add an “installation floater,” a type of inland marine insurance, to have this covered. Another area where coverage gaps may exist pertains to working with subcontractors. General contractors should ask their subcontractors to add them as an “additional insured” on their own policy, so the general contractor can deal directly with the sub's insurance company if needed. To avoid situations where a party’s coverage has lapsed, all subcontractors should show an up-to-date certificate of insurance before performing any work. In addition to these insurance considerations, contractors should look into adding “hold harmless” and indemnification clauses in their contracts with a subcontractor. These ensure that the general contractor is not liable for negligence on the part of the subcontractor. Additional Considerations The amount and type of coverage a solar contractor needs varies depending on certain factors. These include the particular services of the company, such as whether they procure and sell systems or just install them or whether they predominantly install large-scale commercial PV systems or smaller residential ones. Georgiev says that proper due diligence in the beginning is key so that a contractor knows what is needed for their particular business. Georgiev also states that it is a good idea to remember that the certificate of insurance (COI) is not the actual policy. A COI is merely temporary evidence of insurance that includes disclosure about the parties involved, coverages, and limits. All actual negotiations and agreements are already set in the policy itself and a contractor should look there when seeking to understand the details of their coverage. Additionally, “It’s important to be open when communicating with your insurance company. During the quoting process, the more information an insurance provider has about your operations, the better job we can do to help you craft the appropriate coverage and potential safety programs best suited for your company,” says Matthew Burrows of Travelers Insurance. Finally, there are a number of steps a contractor can take to keep premiums low. Treating employees well, making sure they are sufficiently trained, and using up-to-date equipment are important. Having industry certifications like NABCEP certification can also help offset long-term costs. Understanding your unique insurance needs as a solar contractor can help you avoid costly gaps in coverage that may haunt you down the line. Working with a broker that specializes in solar is can be helpful, because they will be familiar with solar contractors’ needs. Taking the time to ensure appropriate coverage is good for contractors and good for the industry in general. You'll have peace of mind knowing you are protected if a claim arises and the solar industry can function with greater stability.   ### 3 Tactics for Better Solar Designs Under Time of Use (TOU) Rates The promise of lower utility bills is typically a driving factor for individuals and businesses considering installing solar. Since the amount solar will save a customer depends heavily on local utility rates and solar compensation (e.g., net metering) policies, as a solar contractor, you need to have a solid understanding of both. You also need reliable systems to accurately assess customers’ solar savings. Time of use rates–which charge different prices for electricity depending on the time of day–add additional complexity to determining solar savings and finding the best solar design for the customer. This is because, for net metered solar customers, the value of the energy their PV system produces also varies depending on the time it is sent to the grid. However, time of use rates are becoming more common, particularly in areas with high levels of installed solar. For instance, in California, all commercial, industrial, and agricultural customers are already required to be on a time of use (TOU) rate plan and residential customers will be transitioned to these rates starting in 2019. Under these conditions, how can solar contractors design PV systems that maximize their customers’ solar savings? There are several strategies that can help you design the best PV system for your customer’s TOU rate. Applying them can translate into measurable differences in solar savings, which can help make your solar proposals more competitive. 1. Start with integrated system design and financial analysis tools One of the first considerations for finding the best design for TOU rates is to make sure you’re using software tools that will let you easily and accurately determine how different design choices will impact the financial returns of your project. The structure of TOU rates can vary widely, with important differences in the time periods when different pricing applies. TOU rates can be very favorable for solar customers if peak price hours coincide with when PV systems produce the most, as was historically the case in California. In other cases, like when peak price hours occur in the evening, TOU rates can reduce solar savings. This is the case for new, later TOU rates being rolled out in California (a depiction of this change for a San Diego Gas and Electric rate is shown in Figure 1 below). Figure 1. An example of different TOU rate structures. The chart on the left reflects SDG&E’s DR-SES rate, a special time of use rate for solar customers, prior to changes implemented December 1, 2017. On the right is the newer version of the same rate which went into effect December 1, 2017; peak hours were shifted to the evening. To get an accurate understanding of your customer’s savings, your financial modeling tools must take into account how much the PV system will produce at different times, combined with the exact structure of your customer’s TOU rate. Beyond that, integrated solar design and financial analysis software can make a big difference in your ability to explore a variety of options to maximize your customer’s savings. This will allow you to quickly see how system design changes or alternative utility rates (discussed below) affect project economics. Figure 2. An example of a time of use rate in Aurora Solar’s database. Each number represents a different price tier; you can see how energy prices vary by time of day, as well as seasonally. Aurora has an extensive rate database–over 3,000 utilities and over 17,000 utility rates around the world, plus the option to add new ones. Combined with Aurora’s solar design and financial analysis tools, this facilitates informed TOU design decisions. 2. Get smart about post-solar rate choices A second key consideration for saving your customer the most money with their solar installation is to familiarize yourself with all of their utility rate choices and assess the financial implications of different rates. In some cases, the solar customer only has one potential rate that they are eligible for–but other times (as for some PG&E customers) there are multiple options. Choosing the best rate can significantly improve the economics of the project. If your customer has a choice between rates make sure to explore the financial implications of different options. In a case study of a solar design for a medium-sized office building in PG&E territory in California (illustrated below), we found that choosing a different post-solar rate resulted in over $42,000 in additional savings over the lifetime of the project. In addition to the fact that increased savings can make your proposal more compelling for the customer, this kind of expertise can distinguish your company in the sales process. Figure 3. A case study of a solar design for a medium-sized office building in PG&E territory in California where there were multiple post-solar rate options. In this case, choosing the E-19 TOU rate resulted in over $42,000 more savings for the customer over the lifetime of the project and a multiple percentage point increase in the Internal Rate of Return (IRR) compared to the A-10 TOU rate.   3. Explore alternative azimuths for your PV design Finally, solar designers can also experiment with different azimuths (or orientations) for their solar design in order to adjust the timing of some of the array’s production. For example, if a system is facing west, it may produce less overall but have more production later in the day. In cases where peak hours are late in the day, there may be times when this makes sense. Figure 4. An example of the production profiles (the distribution of energy production at different times of the day) of PV systems with different azimuths. Again, using an integrated program for solar design and financial analysis makes assessing the merit of these kinds of design changes a lot easier–because you’ll more easily be able to compare the value of the solar energy produced, overall system production, and other financial metrics like payback period. The rise of solar energy and other broader changes in the electricity grid are spurring the exploration of new rate structures by utilities around the country. While time of use rates may not have arrived in your area yet, they are likely to be a more common phenomenon in the future. Getting smart about how to maximize your customers' savings under time of use rates can help you stay ahead of the curve. ### How Have Solar Tariffs Impacted the Industry–and What Can We Learn? Concerned about solar tariffs? You’re not alone! Given that there have already been three tariffs introduced this year that affect the solar industry, it’s understandable if you’re concerned over their impact on your business. In today’s article, we provide an overview of each of the 2018 solar tariffs to date and explore the extent of their impact so far. We spoke with David Dunlap, Vice President of Operations at Baywa r.e. Solar Systems, to get a distributor's perspective on the impact of these tariffs on contractors. Tariffs have definitely caused some pain in the industry, but thankfully the repercussions have not been as dire as many initially expected–at least for solar contractors and customers. And, there may just be some lessons to be learned from the experience! The Context When the first solar tariff was announced in January 2018, there was a great deal of uncertainty about how it would impact the industry, but many feared the worst. An initial industry response predicted a loss of approximately 23,000 jobs in the solar sector. Indeed, cancellations of more than $2.5 billion in large installation projects by solar developers have resulted in a loss of thousands of jobs this year. There were a lot of factors at play, however. M.J. Shiao of Wood Mackenzie Power & Renewables highlighted the multitude of forces impacting the economics of the solar market, in addition to the tariffs, in a GTM podcast. Among these were the upcoming reduction of the Investment Tax Credit in 2020, lower interest rates in general, the repeal of the Obama-era Clean Power Plan, and individual states’ efforts to drive their own pro-renewable policy agendas in response. Some of these elements have tempered the extent of the tariffs’ impact, particularly for residential and commercial installers. Today, after some short-term turmoil, module prices have largely stabilized and the impacts of tariffs on other solar components are expected to be less severe. Dunlap explains, “Entering Q4 2018, PV module prices to installers are flat to 10% below [prices before the first tariff was applied in February 2018].” The Solar Tariff on Panels and Modules: Section 201 In January 2018, the Trump Administration announced a 30% tariff on imported crystalline silicon PV panels and modules, imposed under Section 201 of the Trade Act of 1974. The decision came after two module manufacturers, SolarWorld and Suniva, argued they could not compete with the lower-priced imports. The tariff, which went into effect in early February, will be reduced by 5% a year over four years. The first 2.5 gigawatts of imported cells are exempt. Though there was quite a bit of concern about the impact of this particular tariff, so far there has not been a dramatic market shift. Dunlap explains that “while there was a temporary spike in prices from the 30% tariff (effectively anywhere from 0% to 20%), we have since recovered to end of 2017 pricing while the manufacturers are still paying the 30% import tariff fee.” Stockpiling and Supply Chain Pain In anticipation of this tariff, many solar firms stockpiled their supplies. As Dunlap explains, “Manufacturers and distributors saw a huge spike in sales leading up to the tariff date (Q4 [of 2017] was huge, and January plus some of February were way above normal). This means that project development companies and large and medium installers stuffed their warehouses, and maxed out their cash reserves and credit lines to lock down inventory.” “By April and May, sales slowed down dramatically, because the entire channel was stuffed with all this product purchased in advance. If we were to look at the total excess inventory bought by installers in Q4 + Q1 and spread it out over Q2 and Q3 2018, the total net sales to installers would be right in line with overall market expectations for 2018, which was flat to maybe only 10% up year over year.” He says that only later did it become apparent that the module price increase caused by the tariff was temporary because manufacturers were ultimately forced to reduce prices to stimulate demand (while still paying the 30% import fee). However, Dunlap does point out that many installers who stockpiled are struggling with resulting challenges around cash flow, storage costs, and credit lines. Dunlap also notes that in many cases residential customers were insulated from a net price increase. This is because many installers who had to absorb the temporary 10%-15% spike chose not to pass on the price increases to the customer. Other Factors Influencing Module Prices Another global policy factor which seemed likely to impact U.S. panel prices was China’s mid-year decision to halt the majority of it’s solar development, which eliminated 20 GW of global demand for solar and shifted the panel market to one of oversupply. According to Dunlap, however, that ultimately the policy change had little impact in the U.S. because earlier anti-dumping tariffs had shifted module imports from China to Southeast Asian countries like Malaysia and Thailand, However, he does predict additional price reduction due to the expiration of the Minimum Import Price for Chinese modules in Europe. This has “opened the floodgates for excess Chinese capacity to go to Europe at far lower prices than had previously been allowed.” Already prices have dropped 30% in four weeks. Dunlap says this will remove European demand for Southeast Asian products, leaving the U.S. as the only real market for their modules–driving prices down even further. Solar Tariffs on Additional System Components: Sections 232 and 301 In March, the Trump Administration imposed a 25% tariff on steel and 10% tariff on aluminum under Section 232 of the Trade Expansion Act of 1962, increasing prices for racking, wiring, and ground mount posts. Then, in August, a 25% tariff implemented under Section 301 of the Trade Act of 1974 was placed on a host of imported Chinese goods – including solar cells and modules. Another tariff was added to Section 301 on September 24 that includes solar inverters and non-lithium batteries; it starts at 10% and increases to 25% in January. Once again, the impact of these tariffs is not thought to be dire. As Dunlap mentioned, Chinese cells and modules make up a small fraction of U.S. solar imports (11% reports PV Magazine). Plus, most new factories planned for the U.S. will not be affected because they use materials that do not come from China. Dunlap believes that “Looking ahead to the Section 301 tariff affecting certain Chinese-manufactured inverters, the net impact to the overall system will be much lower than in the Section 201 tariff on PV modules, because inverters are a lower portion of the total system equipment cost than PV modules.” Plus, “it won’t even affect all manufacturer brands, so therefore won’t affect all installers and homeowners.” He also notes that since equipment prices have dropped so much over time, hardware now represents a much smaller piece of the overall system cost. Conclusions The 2018 solar tariffs have certainly had an impact on the American solar market. Amanda Levin, a policy analyst for the Natural Resources Defense Council, recently noted that the solar market would almost certainly be growing more rapidly if the current administration had not imposed these tariffs. Cory Honeyman of GTM Research, whose organization lowered its prediction for additional U.S. solar generating capacity for the next five years by 11%, stated, “There’s just a lot of demand that could have happened that is not going to ultimately be realized because of these tariffs.” But although the solar industry could be growing faster if tariffs had not been imposed, the prediction continues to be for rapid growth for solar in the U.S. The SEIA Solar Market Insight Report 2018 Q3, released in September, showed some positive numbers including the prediction that total U.S. installed PV capacity will more than double over the next five years. As of July, there has only been a loss of 8,000 solar jobs. For Dunlap, the industry’s response to tariffs offers some lessons for the future. “In retrospect, I think our collective industry fear about the potential negative impact on the consumer market caused us to act somewhat irrationally to “safe harbor” more product than we actually needed… and caused financial stress on all organizations…. All of that stress and effort resulted in very little change to the rate of new installations in the end.” “As our industry grows up, I hope we can manage cost changes in healthier ways.” He concluded his remarks by noting that “there is very little room for additional cost reductions in solar equipment with current technology, and as an industry, we need to focus our value-engineering efforts on non-hardware costs, which have much more room for improvement.”   ### Turning Solar Support Into Solar Sales: 5 Tactics for Effective Communication People view solar and other renewable energy sources positively–according to SEIA, nine out of ten Americans support the growth of solar and a majority favor renewable energy over fossil fuels. Yet that support doesn’t always translate into action. So how do we communicate about solar in a way that drives action? That was the focus of one of the key panel discussions at SPI 2018. The General Session “Turning Positive Solar Attitudes to Positive Results” kicked off the first full day of SPI. SEIA President and CEO Abby Hopper moderated the panel, which featured an impressive lineup. The three panelists included marketing and branding expert Omar Johnson–former Chief Marketing Officer at both Apple and Beats by Dr. Dre., former White House Communications Director and CNN Contributor Jen Psaki, and Matt Lewis, author and Senior Columnist for the Daily Beast. The panel highlighted a number of specific tactics that solar supporters can use in their communications to more effectively drive action in support of solar. The conversation focused on industry-level communication to help grow the solar industry as a whole. However, many of these strategies could also apply at an individual and company level to engage more persuasively with prospective customers. We identified five key strategies for effective communication about solar based on the panel discussion. Try incorporating these tactics in your solar sales and marketing efforts to connect with new audiences and convert more prospects into customers. 1. Use Culture to Connect One of the recurring themes of the panel discussion was the importance of cultural identity. Matt Lewis of the Daily Beast emphasized that “We don’t just act rationally”–identity, faith, tribe, and community are hugely powerful drivers of our actions. He argued that “culture is more important than politics, community,” and many other factors in shaping people’s behavior. Lewis believes that a key deciding factor in whether people will support solar is whether they see it as something for people who are like them. He cautioned that if we want solar to have broad support, we must ensure that it doesn’t become seen as an option just for “latte-drinking liberals.”   Lewis suggested that one of the best ways to connect with new audiences is to share stories of people that they identify with who have adopted solar. Applying it to your business: Highlight the stories of a variety of diverse customers, making it clear that solar energy is for everyone–from low-income customers, to customers of different cultural backgrounds, to non-profit customers, and many others. 2. Highlight Human Stories We often think that data, hard numbers and facts, are the best way to persuade. But the panelists underscored that data may not be nearly as effective as connecting with people on a human level. This point was highlighted by Jen Psaki, former White House Communications Director, who summed it up as “Data doesn’t drive people; people drive people.” According to the panelists of the SPI 2018 General Session “Turning Positive Solar Attitudes to Positive Results,” sharing the human stories behind solar can be one of the most effective communication strategies to build support for solar.  Psaki explained that when she worked on the White House communication strategy to build support for the Affordable Care Act, they initially focused their communications on cost savings data, sharing many charts and graphs. But they ended up realizing that was a mistake because it didn’t communicate the human impacts. “What made a difference was when we shared human stories, how lives were saved,” she explained. Omar Johnson, former CMO of Apple and Beats, remarked that “The last thing you’re going to win on is data.” He commented that people are bombarded with so many different pieces of information on a daily basis that–especially if they're skeptical of your message– they’ll easily find other sources that contradict your arguments. Applying it to your business: Putting your message in terms of the human impacts of solar–how it tangibly benefits your customers–however, can help connect with people in a way they’ll remember and be more open to considering. That could range from a blog post about how solar savings are helping a non-profit provide important community services to a video testimonial from a customer about how solar has benefitted their family.  3. Drive Action with Emotion Another related takeaway from the panel was the importance of emotion in your communication. Whether it’s positive emotions like nostalgia or more negative ones like fear and greed, all of the panelists agreed that emotion is a powerful driver of action. Johnson explained that simple emotional messages are a valuable tool for effective communication because they easily cut across group lines. For instance, “we all want more for ourselves and our families” so that can be one angle for explaining the value of solar. Psaki remarked that urgency is also a powerful emotion for driving action–people act when they feel they may lose out on something, or have something taken away. Applying it to your business: Explore opportunities to incorporate emotion in your messaging. For instance, as the deadline approaches for reduction of the Investment Tax Credit, incorporating an element of urgency in your communications might drive customers who are on the fence to take action to install solar.   Connecting with people through emotions they can relate to like... stress over utility bills, can be an effective communication strategy.  4. Know Your Audience The panelists also emphasized the importance of understanding the audience you’re trying to reach with a particular message, and tailoring your message to what they care about. Psaki shared an anecdote about her work at the White House leading their communications around climate change. Through research, they realized the message that most resonated with women focused on the health impacts of climate change. When talking to farmers, they found that discussing “the changing climate” was much more effective than talking about “climate change.” These kinds of insights, whether from market research or just getting out and talking with the groups of people your solar company is trying to sell to, can be incredibly powerful in helping you find the marketing or sales message that works. In some cases, that might mean changing your strategy. As Psaki said, “Sometimes when you have new information, you need to throw out your old assumptions about how to reach people.” Applying it to your business: Question your assumptions about what different audiences care about and seek out opportunities to understand those groups better (surveys, customer conversations, etc.). 5. Sell a Solution, Not a Product Finally, another strategy for effective communication about the value solar offers is to think bigger. Instead of framing your marketing and sales initiatives around why people should buy a solar installation, think about putting your message in terms of the solution you’re offering. Discussing his own decision to install solar and energy storage, Omar Johnson explained that he wanted solar so his family would have power in the case of a prolonged outage. That security for his family was the solution he was looking for, so messages that put that front and center would have been the most effective with him. Applying it to your business: Once you understand what your audience cares about, highlight the value of solar in terms of the solutions they’re seeking, such as greater financial freedom, resilience, or sustainability. Taking a leaf out of these experts’ playbooks can help you communicate more effectively about the value of solar–both to close more solar sales and to help grow support for the industry as a whole. To paraphrase one of the concluding comments of the panel, “As the pie gets bigger, there’s more for everyone.” Here’s to growing support for clean solar energy!   Do you have other tactics for effective communication about solar? Let us know in the comments below!     ### Powering SPI: A Design for Anaheim Convention Center The Aurora Solar team had a great time at Solar Power International (SPI) last week. SPI is the largest solar event in North America. With attendees from over 3000 companies and hundreds of exhibitors showcasing the latest in solar technologies, Anaheim Convention Center was abuzz with activity for SPI 2018! With all the energy it takes to power such a huge event (at the largest convention center on the West Coast), we were happy to know that some of that energy was coming from clean solar power–quite appropriate! To keep the fun of the conference going, we took a few minutes to model Anaheim Convention Center’s solar installation in Aurora. In this installment of our Solar Landmark series–where we model solar PV systems for landmarks around the world–we used Aurora’s new and improved design capabilities to quickly generate this large design. It took Aurora’s Research Engineer, Andrew Gong, only about 10 minutes to complete! Here’s how he did it. About the System The 2.4 megawatt array on the rooftop of the convention center was installed in 2014. According to the contractor that installed it, the system utilizes 7,908 Yingli Solar panels, Sunlink Core RMS racking, and Advanced Energy 500NX inverters. It is owned by the Anaheim Public Utilities (APU) and the City of Anaheim and helps APU meet its mandate to source 33% of its energy from renewable sources by 2020. An aerial view of the solar array on Anaheim Convention Center, the site of SPI 2018. Source: Google Maps. Modeling the Project Site Constructing the Buildings To create an accurate design, we began by constructing a precise 3D model of the convention center. To do this in Aurora, we started by outlining the edges of the buildings in satellite imagery using Aurora’s SmartRoof Tool. A top-down view of our site model of Anaheim Convention Center. You can see the outlines of the buildings in white. Based on these outlines, Aurora generated a 3D version of the site.  Based on the building outlines, Aurora’s SmartRoof Technology generated 3D versions of the buildings. One advantage of the SmartRoof tool is the ability to construct the building from several simpler parts, which SmartRoof then merges together.  Additionally, because the building has three similar sections (the sections where the solar arrays are located in the image above), we were able to save time by modeling one and then copying it to create the other two sections. This allowed ups to create those sections of the building with just had to make a couple of slight manual modifications. To save time creating the site model for the convention center, we duplicated similar sections of the site and adjusted them as needed. In this demonstration, you can also see how Aurora's SmartRoof tool allows designers to construct a larger building out of simpler parts which it then merges together.  Aurora reDesigned, our latest software update, made it easy for us to view the building from different angles: Aurora reDesigned allows seamless transitions from 2D to 3D views of a project.  Once the structure of the buildings was complete, we had to make sure that the model included any obstructions on the roof–such as skylights and HVAC units–that would prevent the placement of panels. To save time, we took advantage of Aurora’s automatic obstruction detection tool. Powered by computer vision, this tool allows the designer to model one obstruction which Aurora uses to find all other obstructions like it on the roof. Ensuring Accuracy with LIDAR Once we had a complete model of the site, we used LIDAR to ensure the accuracy of the site. If you’re not familiar, LIDAR data creates a detailed 3D map of the heights of structures in an area, like buildings and trees. The LIDAR data used for these purposes is typically gathered by planes that ping an area with lasers and measure how long they each beam takes to return to a sensor (similar to SONAR but using lasers instead of sound pulses). LIDAR shows the topography of this area, allowing us to confirm the accuracy of our model of Anaheim Convention Center, where SPI 2018 took place.  We used Aurora’s “Fit Buildings to LIDAR option” to ensure that our model matched the actual building details. With that, we had a complete and accurate 3D model of Anaheim Convention Center–an excellent starting point for designing a solar installation suited to the site. Designing the Installation Before placing panels, we used Aurora’s walkway tool to add appropriate walkways to ensure compliance with local codes. Once walkways have been placed, Aurora will avoid placing panels in those areas, even when automatically filling the roof face. Placing walkways in Aurora.  We then used Aurora’s panel placement tool to quickly place solar panels in the available space. This tool allowed us to click and drag to automatically place panels while avoiding obstructions. The results, modeled on the existing array, are shown below. The final design of Anaheim Convention Center's solar system.  And there you have it! A recreation of the solar array on Anaheim Convention Center, modeled in about 10 minutes. This impressive system produces approximately 302,192 kWh each month and 3,626,310 kWh per year. It offsets 17% of the convention center’s energy needs–making this a great site for an event like SPI! The final design in Aurora; the yellow shows irradiance on the rooftop.  As more commercial customers consider solar to help them cut costs and show commitment to sustainability (a recurring topic of SPI panels this year), design tools that support fast but accurate designs can help solar contractors better serve this growing segment.   Notes: Since this was just a quick educational exercise, we didn’t delve into some later steps of the design process, like stringing, modeling energy production, and financial analysis.  Acknowledgments: Special thanks to Research Engineer Andrew Gong for designing this system in Aurora.   ### Lessons for Success from the 2018 Top Solar Contractors List Each year, Solar Power World compiles a list of the Top Solar Contractors in the U.S., based on the kilowatt capacity of projects they installed, developed, or helped construct in the previous year. We were thrilled to see many companies on the 2018 list that use Aurora solar design and sales software. We reached out to these companies to get their insights for running a successful solar business. In response to our question, “What advice and tips would you give to solar companies to operate successfully?” we saw several themes emerge. The responses we received from our customers highlighted quality and credibility, adaptability, and value as key factors in solar contractors’ success. If you’re considering what your company can do to maximize success in the solar industry read on for advice from some of the most prolific U.S. solar installation companies in 2018. Quality and Credibility Perhaps unsurprisingly, quality and credibility were two of the key factors for solar company success highlighted by the solar contractors we spoke with. Specifically, contractors highlighted the need to have a thorough understanding of all aspects of your customer’s solar purchase. Craig Pals, cofounder of Tick Tock Energy, Inc.–a family-owned solar company in Illinois, founded in 2006–summed up his advice for solar companies in one word: “Credibility.” Elaborating on some of the elements that go into that, he recommended that contractors, “Thoroughly understand electric bills and rates, [and deliver] product knowledge, financial understanding, construction expertise, great customer service, etc.” Knowledge of Utility Rates and Other Financial Considerations Having a strong understanding of local utility rates and other financial considerations that impact how much your customer will save was a recurring theme among the solar contractors we spoke to on the SPW Top List. Bernard Froidcoeur, owner of GreenForm-Austin, summed this up by encouraging contractors to “Understand local incentives and solar rate structures from utilities.” Bill savings are typically a driving motivator for prospective solar customers, yet net metering and utility rate structures can be confusing. Similarly, federal, state, and local incentives that will impact the cost of their system are important information for customers to understand. You can establish your credibility by being the expert who walks them through these elements. (Our Solar Finance 101 series provides a helpful primer to bring new staff up to speed or to teach your customers.) Using software like Aurora that supports financial analysis and includes an extensive utility rate and incentive database can help with ensuring accuracy. However, contractors still need to keep close watch on utility policies and rates to stay abreast of changes (like new net metering structures or California’s time of use rate changes). Design and Installation Expertise The quality of the solar designs installers offer was another key theme highlighted by companies on the Top Contractors List. Peter Hughes, Owner and Business Director of Sunwatt Solar, a company that designs and installs solar systems in Rhode Island and Massachusetts, encouraged contractors to “Always start each opportunity with an accurate TSRF. It will save you time and help to narrow your focus on the most promising deals.” Kyle Frazier, Director of Sales at Freedom Solar Power, a Texas-based commercial solar company, said “We believe that the only path to long-term success is to deliver the highest quality product and experience to every customer so that they are happy enough to refer us to their friends and neighbors and co-workers. That means under-promising during the sales process and over-delivering on the project by doing all of the work in-house and doing the job right the first time.” “We believe that the only path to long-term success is to deliver the highest quality product and experience to every customer so that they are happy enough to refer us to their friends and neighbors and co-workers." - Kyle Frazier, Freedom Solar Power Jeff Parr, President and Owner of Solar Technologies–which has installed over 75,000 solar power systems across California’s Bay Area–said “Once you have new business, you have to make sure you are following through on the expectations set and that your team has the experience to manage design and engineering, interconnections, installations, job-site safety, and system maintenance. Your reputation precedes you through social media and any deficiencies will be called out by customers and jeopardize future growth and success.” Baker Home Energy, another company on the list, offered similar advice when we spoke with them earlier this year about how they get 60% of their business from referrals. "Your reputation precedes you through social media and any deficiencies will be called out by customers and jeopardize future growth and success.” - Jeff Parr, President and Owner of Solar Technologies Adaptability Another requirement for solar contractor success highlighted by Aurora customers on the Top Contractors list was the ability to adapt. Given the frequent policy changes and macroeconomic shifts that contribute to the so-called “solar coaster,” solar companies need to be flexible and stay on top of new approaches to succeed under different market conditions. “Adaptability is key. The solar industry evolves more frequently than most. Being able to stay current on technology, codes, and methods is a requirement for success,” said Bruce Orozco, Production Engineer at Solar Source, a residential and commercial installer serving Florida’s Tampa Bay area. Similarly, Brett Emes, Owner of SEM Power, LLC, a Florida-based solar installation company and EPC, advised solar contractors to “Differentiate yourself from your competition by constantly innovating and finding more cost-effective methods to implement solar for your customers. As soon as your competition starts copying you, innovate again to gain market advantage over your competition.” Larry Beiler, Estimating Manager at Paradise Energy Solutions–a Pennsylvania-based solar contractor serving Pennsylvania, Maryland, New York, Ohio, and Virginia–echoed this sentiment.  “Be adaptable. The solar industry is constantly changing with new and improved products, incentive adjustments, and new markets. Software is one area of many that has changed dramatically in the last five years.” Software solutions, including remote solar design tools like Aurora, are one way solar companies are adapting to work more efficiently under tighter profit margins. Solarponics, another Aurora customer on the Top Contractors List, was able to cut their site visits by 90% and save approximately $500 per lead by switching to Aurora for remote assessment and design. Value The final theme that emerged from many of the solar contractors we spoke with was the importance of differentiating your company based on the value your services provide–not necessarily having the cheapest product. Jeff Parr, explained that “At Solar Technologies we try to focus on people, products, and price. All of these have to be aligned in order to deliver compelling value to home and business owners so you can win new business.” Kyle Frazier of Freedom Solar Power said “Our advice for other solar companies is to focus on sustainable, profitable, controlled growth that is focused on your customers, rather than chasing higher-volume but lower-quality sales channels.” Likewise, Graham Alexander, Senior Residential Energy Specialist at Southern Energy Management–a certified B-Corporation serving North Carolina–emphasized, “Don't fight to be the lowest price solution with the lowest price products.  Maintain your value and allow your clients to be your best marketing resource.” Parr also advised companies to “Take it slow, plot a strategic path forward, manage your cash, and walk away from low-margin business. You will not get rich quick in this business but if you focus on providing your customers with a high quality offering at a fair price, seek out great employees to help you on your journey, manage your business to ensure viability and commit to this industry long-term you will end up with a rewarding enterprise that is helping customers save and improving the environment for all.” Congratulations to the companies that made Solar Power World’s Top Contractors List! We were thrilled to see so many Aurora users represented on the list, and appreciate those customers taking the time to share the strategies that play a role in their success. Are there other strategies you’ve found to be important to your success in the solar contracting industry? Let us know in the comments below!     P.S. If you enjoyed this article about strategies for success, you may be interested in some of our related articles, including our interview with Pamela Cargill on how solar companies can operate more efficiently, and our discussion of solar sales mistakes to avoid from Nancy Reynolds at Clean Energy Design, LLC. ### reDesigning Aurora for Speed, Simplicity, and Scale In 2011, grad school classmates Sam Adeyemo and Chris Hopper discovered a shared interest in advancing solar energy in emerging markets and teamed up to design and install a solar installation for a boarding school in Kenya. Designing a PV system for a site on another continent made it clear how challenging solar design can be–and how how much the design process could be improved with the right tools. With the idea of building the solar design software they wished they’d had, one that offered the accuracy to confidently design without site visits, Sam and Chris launched Aurora Solar in 2013. In the five years since that time, Aurora has grown from a small company whose entire team fit at one table to an industry-leading solar design company trusted by top solar firms around the world. We’ve achieved a lot that we’re proud of, from creating the first solar design program to model the electrical behavior of a solar installation down to the cell-string level to bringing new technologies like computer vision and solar design automation to the solar sector. We’ve also learned a lot along the way, listening to customers to understand how we could better serve their needs. As we looked toward the future of the solar industry and how we could help the industry grow, we realized there were opportunities to serve solar contractors better if we reimagined our design tools from the ground up. To deliver a best-in-class solar design experience, we set about rewriting the very code our design software is built on. After nearly two years of development, Aurora is thrilled to release its most significant update ever–a new version of our software that hits the sweet spot between accuracy, speed, scale, and simplicity. Get ready for Aurora reDesigned. Simplicity We’ve heard from customers that they love the accuracy Aurora enables–from constructing a representative model of the project site to precisely determining irradiance and solar energy production, as well as its compelling visuals. But sometimes a high-level of precision can make the design process complex. As we redesigned Aurora, we focused on approaches to maximize simplicity and ease of use. We worked closely with designers to streamline the software interface and improve user experience. Drawing from some of the same approaches that enable video games to render incredible 3D visuals, we built a fully 3D design experience that allows solar designers to seamlessly transition from 2D views to 3D views of the project site model and PV design. In addition to viewing the site model and solar installation from any angle, designers can make modifications in 3D making accurate design easier. For instance, you can easily see the height of the roof in comparison to surrounding features like trees, and adjust accordingly, without having to toggle between 2D and 3D tools. With integrated site model and system design tools, as well as the ability to edit both in 3D and view the project from any angle, the latest version of Aurora offers greater simplicity for solar design. We also combined our tools for creating a model of the project site and designing the PV system into a single section of the application. This reduces the need to switch between tools if you need to adjust the site model or the design. Finally, recognizing that the process of stringing panels to inverters can be quite complicated, with many different stringing configurations to choose from, we developed new tools to simplify the process. With automated stringing functionality, solar designers no longer need to ponder the optimal stringing configuration that will match inverter input requirements (acceptable string lengths and number of inputs) while maximizing the number of panels and minimizing costs. Simplicity highlights of Aurora reDesigned: Seamlessly transition between views of the project, including moving from 2D to 3D Site model and solar design tools combined into one streamlined section New automated stringing functionality saves designers the headache of identifying the optimal stringing configuration Speed Another key focus for us was delivering speed upgrades to our customers. It takes significant computing power to generate and manipulate hundreds or thousands of elements–like roof obstructions, solar panels, and inverters–while also maintaining accuracy. Yet speed is key to enabling efficient design, particularly when designing large, multi-megawatt commercial solar installations. By rebuilding our CAD functionality and incorporating state-of-the-art graphics technology, we were able to deliver 10x performance upgrades for large solar projects. Discussing the new updates, Matthew Gschwend, Senior Solar Analyst at NRGTree in Boston, says “Even more impressive than all the design tools is the processing power, which allows you to create a site model, lay out your system, and run production simulations quicker than ever.” Another change we implemented to reduce design time was integrating Aurora’s performance simulation tools–which precisely calculate the expected solar energy production of the PV system–into the design stage. You can now simulate the energy production of your design as you’re designing, allowing for real-time understanding of the performance implications of different design approaches. One way we’ve helped solar designers speed up their workflows in Aurora reDesigned is by making it possible to assess the energy production of a design from within the design tool. Speed highlights of Aurora reDesigned: 10X performance upgrades for multi-megawatt, commercial-scale solar projects The ability to simulate solar energy production while designing the PV system, allowing real-time assessment of the performance impacts of different design choices Scale When we first started building our software in 2013, we began with a focus on the residential solar market. As we grew, we added both commercial solar design functionality as well as financial analysis tools for commercial customers, allowing us to serve the needs of C&I contractors as well. However, designing massive systems on a platform originally built for smaller projects could sometimes be challenging. By rewriting our software code to utilize a new approach optimally suited for rendering 3D graphics on the web, we created a solar design platform that supports the creation and manipulation of large, multi-megawatt solar designs as easily as for smaller residential designs. An example of the multi-megawatt projects easily supported in Aurora reDesigned. We also built out a number of new, cutting-edge tools specifically designed for the challenges of large-scale solar designs. For instance, we’ve enhanced Aurora’s automatic obstruction detection, which automatically identifies similar obstructions on a roof and builds them into the site model. Already a significant benefit for sites with hundreds of vents and skylights, we beefed up the power of this tool, allowing it to now quickly detect and model thousands! Additionally, we enhanced Aurora’s “fill zone” tool, which makes it possible to specify an area of the project site for Aurora to fill with panels according to the designer’s specifications (row spacing, panel tilt and orientation, etc.). Aurora’s fill zones can optimize panel location to maximize the number that fit within the available space–rapidly producing panel configurations even for massive projects. Scale highlights of Aurora reDesigned: Support for significantly larger, multi-megawatt solar projects Enhanced “fill zone” functionality which automatically optimizes solar panel locations to maximize the number that fit within an available space Aurora was founded to give solar contractors the tools to easily accurately design solar installations without site visits; but on a larger scale, our goal is to make solar energy more accessible by driving down the cost of delivering a quality system. In the five years since Aurora started, we’ve pioneered accurate remote solar design and developed new tools for solar designers–from 3D measurements with computer vision to solar design automation. But while we’re proud of what we’ve achieved to date, we’re always considering how we can do better. Rather than continuing to build upon the same CAD tools we built in the beginning, we saw an opportunity to deliver an order of magnitude increase in simplicity, design speed, and the scale of projects Aurora supports by incorporating new approaches in web graphic technology. This new version of Aurora–Aurora reDesigned–not only helps us deliver on our mission to bring solar contractors the best design tools, but also provides a more scalable platform on which to continue our work to bring about a solar-powered future.   ### A Unique Group Purchasing Program Connecting Nonprofits with Solar A persistent challenge solar contractors face is customer acquisition. Solar group purchasing programs present a unique opportunity to compete for a large collection of solar projects. These programs bring together groups of customers that have decided to go solar, and solicit proposals from contractors to install the PV systems for them. Although these programs seek competitive bids for their participants in exchange for aggregating a large volume of PV capacity, they can be a great way for solar contractors to win sizable deals. Additionally, depending on the particular group purchasing program, it can also provide a rare opportunity to access markets that are typically difficult to reach. The Community Purchasing Alliance, a member-owned cooperative serving nonprofits in the Washington, D.C. area, is one such program. Their solar program facilitates third-party owned commercial solar projects (PPAs) for nonprofits, such as schools, churches and synagogues, and other community organizations. We spoke with Joe Naroditsky, Director, Solar & Operations at the Community Purchasing Alliance (CPA) to learn more about their solar group purchasing program. Our conversation highlights the benefits for solar contractors who engage in the program, and offers insight into some of the barriers nonprofits face to installing solar and how programs like CPA’s overcome them. We’ve also compiled a list of resources for learning more about these kinds of programs, and highlighted a couple of other organizations doing similar work in other regions. (Note: CPA is also in the early stages of exploring possible expansion of their model to other cities.) In future articles, we’ll delve into other group purchasing program structures, including programs serving residential customers. Gwen Brown, Aurora Solar: For those not familiar with the work of the Community Purchasing Alliance, what does your organization do? Joe Naroditsky, Community Purchasing Alliance: An important thing to mention first is that we're a member-owned cooperative. We started as a co-op when 12 churches got together and realized that they were paying more on their electricity bills than on their pastors’ salaries and wanted to do something about that. One of our founders, Felipe Witchger, was working as a volunteer consultant for this group of faith communities and helped them organize. They bought their electricity together and ended up saving nearly $100,000 that first year. A few months later, about 30 churches joined in, and then 100 churches, and so on. Our other programs are very much like that first initiative, and all of our programs exclusively serve nonprofits. We help folks get better deals on things like trash hauling, janitorial services, and security. We work with a lot of charter schools, and help them with their procurement. Our solar program is very similar. D.C. is a great market for solar right now and nonprofits are interested in how solar can help them reduce their energy bills. We put a call out to our members to see who's interested. Those that are join a group and together we solicit bids for third-party owned solar projects from different contractors. The Community Purchasing Alliance's solar program helps nonprofits, like churches, install solar.  Gwen: What are some of the benefits to solar contractors who are selected to install the PV systems for these groups of nonprofits? Joe: First, in aggregation comes volume. We aggregated over two megawatts of rooftop projects last year, and we've done over four megawatts in the last four years. Additionally, the commercial-industrial space is the toughest nut to crack in solar and the nonprofit space is the toughest segment to crack within that sector. Probably the biggest benefit to contractors is an “in” to a very difficult space to access that can be very lucrative. Particularly here in the D.C. area, where SREC values are very high, these PPA deals are really good business. We also help coordinate the ongoing communication with clients–facilitating meetings and check ins, providing project status updates, that sort of thing. So solar contractors that participate in CPA group purchasing programs also get the benefit of our support with these aspects of project management and customer satisfaction. Related to that, because we organize and educate interested nonprofits, the sales process for participating contractors is a lot shorter than if they were selling to these nonprofits directly. One barrier that nonprofits can face when considering a solar purchase is that they typically have multi-tiered, multi-faceted decision making processes. If you're selling a commercial solar installation to a company, you may be working with the CEO and have just one or two people that need to give their blessing before they sign off. In contrast, with a church or synagogue, there are a lot of folks involved, and it usually leads to much longer sales cycles than you have in a traditional commercial setting. Typically solar contractors don't have the time and bandwidth to dedicate what could be 18 to 24 or more months to these small to mid-sized projects and so, a lot of times, they just pass on them. We take on a lot of that work–educating, facilitating the decision-making process, answering questions, going to board meetings, and just taking the time that’s needed. At the end of that process, we have very bought-in and educated clients who are ready to sign a contract. "At the end of [our RFP] process, we have very bought-in and educated clients who are ready to sign a contract." Gwen: What’s the typical size of solar deal that solar companies win through the Community Purchasing Alliance’s solar RFP process? Joe: Our RFPs average about two megawatts in aggregate project size. In terms of individual system size, it varies. The smaller churches and synagogues and other houses of worship are in the 50 kilowatt range, the larger schools are in the 300-400 kilowatt range.  Because we’re aggregating megawatts, we're asking for offers that are better than what a standard, off-the-shelf offer would be–deals our participants would not be able to get on their own. We make a concerted effort to be very clear that it takes more than just filling out the form to make somebody competitive. In a lot of ways, we see ourselves as a market maker. We’d like contractors understand how important it is to help some of these critical community institutions, which may mean approaching things differently than with a typically commercial client. These organizations run some of the most important work in our community, like after-school programs, homeless shelters, and community clinics–all types of cornerstone community services. "In a lot of ways, we see ourselves as a market maker." Gwen: You’ve highlighted some of the benefits of CPA’s programs for contractors. Can you talk a bit more about how your RFP process works? Joe: Having been in the solar industry for going on 12, 13 years now, I do a lot of the pre-analysis and pre-qualification of certain sites. I get a sense for whether or not interested nonprofits are good candidates for solar, and get a general sense of system size and their roof and building conditions. From there, our role is to facilitate that competitive bid process–putting together an RFP and putting it out to bid to many different solar contractors in the region. I facilitate site visits and walkthroughs of the different churches and schools, answer questions that contractors may have, and compile all the bids we receive. A lot of work goes into making sure that we put out an RFP that will yield apples-to-apples comparisons on all the proposals that we get. When we get those proposals back, we evaluate, summarize, and synthesize them, and then share them with the participants. It's very much a group process–a lot of meetings, phone calls with organizations, folks sharing their different questions with each other, what their concerns are. Really, I think the magic is in that group process. It’s where a lot of the trust gets built, folks know that they're not going into this alone, and they get their peers and different organizations’ perspective and ideas. One person's good idea has often become a great addition to the contract that we then negotiate with the winning solar company. That's the process. It's not just about the pricing, it's also about the contracts–helping our members with collaborative negotiating of the contracts. We review contracts from the different vendors and our participants tell us what their red flags are in terms of legal terms. After the RFP process, CPA remains involved as an accountability partner for our organizations. All the way throughout the design, development, installation, and commissioning process, we're there as needed as an advocate and accountability partner–and a guide for those that just need a little more help or assistance or hand holding. Are you a solar company serving the DC Metro area interested in learning more about how to get involved in CPA's programs? Joe Naroditsky, CPA's Director, Solar & Operations can be reached at joe(at)cpa.coop Additional resources: If you are interested in learning more about solar group purchasing programs, here are some resources for further learning–including information about solar group purchasing for other types of customers (municipalities, residential, etc.) and programs in other regions. Many of these focus on the customer perspective, but contractors can use them as a starting point for exploring opportunities for getting involved. General information: The U.S. Environmental Protection Agency’s Collaborative Procurement Initiative–"EPA seeks to replicate on a national level a regional collaborative model for clean energy procurement that was first pioneered in California....” Delivering Solar: Group Purchasing is Driving Down Costs for Customers–This (2011) blog post by NREL provides an overview of some of the group purchasing programs active at that time. Programs for municipal/government customers: What Cities Learned From Their First-Ever Group Purchase of Community Solar–This article shares lessons learned from a solar group purchasing program in Minnesota specifically for municipalities to purchase community solar. A Model of Collaborative Solar Purchasing: The Alameda County Regional Renewable Energy Procurement Project–This case study shares lessons learned from a groundbreaking collaborative solar purchasing project among local public agencies across four counties, led by Alameda County, California. Programs for residential customers: The Solarize Guidebook–A guidebook from a former NREL program called the Solarize program, which helped communities organize solar group purchasing programs for residents. (Although no longer active, this may provide insights for those looking to initiate similar programs.) Milwaukee Shines Group Purchasing Program Signs up More Homes Than Expected–This article provides an overview of a 2017 solar group purchasing program in Milwaukee, Wisconsin. Programs for commercial customers: Private-Sector Case Study: The Collaborative Solar Project–”This case study describes the first attempt to structure a collaborative, aggregate purchase for commercial solar PV installations in the United States,” led by the World Resources Institute. ### Make the Most of SPI: Conference Highlights and Tips for Success Solar Power International (SPI), the largest North American solar trade show and conference, is just around the corner! It’s a terrific opportunity to get a firsthand look at the latest in innovative technology, industry research, and key issues impacting solar contractors. You can also network with a whole host of industry experts, check out the competition, and pick up some great business insights. But you’ll get a whole lot more out of the event if you go with a carefully thought out plan of action. For those of you attending SPI (it isn’t too late to sign up!), we’ve identified some choice learning opportunities and events to add to your agenda–as well as some things to keep in mind to get the most out of the event. Conference Overview SPI is running from September 24-27 at the Anaheim Convention Center in Anaheim, California. It will be attended by solar professionals from all segments of the industry–from contractors and developers, to financiers, manufacturers, software providers and more–across the residential, commercial, and utility-scale sectors. Last year saw 20,000 attendees and over 750 exhibitors. The event is put together by the Solar Energy Industries Association (SEIA) and the Smart Electric Power Alliance (SEPA). Each of the four days is made up of a variation of the following: a general session, educational sessions in the meetings rooms and on the expo floor, networking opportunities, and various other events like poster presentations and educational walking sessions. You can register as a Full Conference attendee and take advantage of all the educational content available. Or you can register for the Expo Floor only, where you can access education opportunities on the trade show floor or at the Expo Floor Education Theaters, as well as attend general sessions and poster exhibits. The Expo Floor pass is a great option for those focused on connecting with current and prospective business partners. The SPI website is an excellent resource, featuring a summary of the week’s events. It also gives you the ability to save favorite events and build your own custom schedule. Take advantage of the interactive floor plan to identify the locations of stages, meeting rooms, connected hotels, and exhibitor booths. You can click on a booth to learn more about an exhibitor and jump to their website. A map of the SPI Expo Floor. Click on the image to visit SPI’s interactive floor plan. Educational Highlights There are over 100 education sessions at SPI, many of them on the show floor. Their themes range from distributed energy to grid modernization, finance, policy, asset management, storage, and microgrids. The general sessions, open to all attendees, tend to be highlights. They offer an high-level perspectives on key issues affecting the market from a number of distinguished speakers. Tuesday’s general session at 8 AM at the Marriott Platinum Ballroom, Turning Positive Solar Attitudes to Positive Results, features such heavy-hitters as SEIA President Abigail Ross Harper, Omar Johnson–Chief Marketing Officer at Beats By Dre and former Apple VP of Marketing, Matt Lewis of the Daily Beast, and former White House Communications Director Jen Psaki. They’ll be discussing how to use data-supported messages to effectively advocate for solar’s growth in the U.S. energy marketplace. There is something for everyone among the many other educational sessions. Sessions on Tuesday that may be of particular interest (and open to all attendees) include talks addressing the fundamentals of customer acquisition, myths about solar demographics, and strategies for cutting the cost of residential solar. Wednesday includes open access sessions on solar O&M, the “internet of energy,” and key metrics and strategies for running a healthy solar business. SEIA and GTM Research will be presenting their latest U.S. Solar Market Insight Report (Q3 2018) on Thursday at 11:30 AM in Industry Trends, Booth 189–providing a robust look at latest market numbers and trends.  Building on the theme of industry trends, our own COO, Samuel Adeyemo, will be giving a presentation on The Role of Software in Transforming Solar Design with John Miller, Solar Technology Manager at Black & Veatch Corporation on Tuesday at 1pm on Level 2 in room 202AB. (We’ll be showcasing some brand new tools to take your solar design and sales to the next level!) There are also over 80 educational posters on display all four days of the event in the education corridor, near the walkway to the Westgate Hotel. These great snapshots of current market innovations and issues. There will be presentations of many of them during a reception on Tuesday from 5 - 6 PM. (We’ll be there discussing some of the Top Technologies Changing Solar Design.) Networking Opportunities There are over 23 hours of networking events sprinkled throughout the conference–so bring those business cards! These include coffee breaks, job fairs, happy hours (one hosted by SETS specifically for young professionals Wednesday 5 PM at Booth 3386) and even a block party and an Oktoberfest. For job seekers, solar nonprofit Grid Alternatives is hosting a solar job fair on Wednesday from 1 - 4 PM. There are two events specifically for solar industry women: the Women in Solar Luncheon (largely sold out but you might get tickets on-site) on Wednesday at 12 PM at the Marriott Grand BR Salon E and the Women of Renewable Industries and Sustainable Energy happy hour on Wednesday at 4 PM. Tips for Making SPI Count With so many great opportunities to choose from, you may be wondering how you can be sure to make the most of your time in Anaheim. Here are some tips from the Aurora team and other industry professionals: 1. Plan.  As we’ve discussed above, there are a ton of things to see and do at SPI. Avoid getting overwhelmed or missing out on what’s most important to your company by defining your goals and planning out meetings and events you’ll attend each day. Jeff Spies (Quick Mount PV Sr. Director of Policy, NABCEP Secretary, and Director of the solar documentary Solar Roots) suggests mapping out your plan of action in your event directory. Saving your favorite events on the SPI website and building your schedule is another good approach, as is using the SPI app, as solar marketing expert Tor Valenza suggests. (You can hear more SPI tips from Tor and others in an episode of Suncast, a podcast that interviews solar thought leaders.) 2. Connect. One of the most valuable benefits of SPI is the chance to meet face-to-face and build relationships with other solar industry professionals, be they existing or potential partners, customers, or those you want to learn from. Solar distributor BayWa r.e. recommends making appointments in advance (even the day before) to get some dedicated time with a company.  John-Ross Cromer who runs the solar training site Community.Solar suggests that this is a great time to try out new tools to make sure you keep track of contact information and can effectively stay in touch with those you meet. 3. Recharge. Long days of meetings, conference sessions, and walking the show floor can leave anyone exhausted. Make sure to take take care of yourself so you can bring your full energy to the experience. That includes hydrating, getting enough sleep, and taking periodic breaks. 4. Follow up. Finally, don’t let your new insights and connections go to waste by failing to act on them when you get home. In their SPI roundup, Baywa r.e. recommends scheduling a team meeting shortly after you get back. This way you can capture ideas while the memories are fresh and map out actionable next steps. We wish you a successful SPI experience and hope to see you there! P.S. We’re unveiling some exciting new developments at SPI so make time to stop by the Aurora booth (138)  Plus, we're offering a free high-resolution shade report to anyone who visits and shares their business card or scans their badge! ### How to Sell Solar in a Time of Use Rate World Think time of use rates don’t affect you? Think again! While the shift to a time of use rate structure may not have happened in your area, as solar development grows around the country, more and more utilities are adopting this approach as part of their energy payment structure. That means it’s time to get smart about how you approach solar sales conversations when time of use rates apply. Customers on time of use rates are charged different prices for their electricity depending on when they use it, with higher prices during times when there is higher demand. (Typically, for net metered solar customers, this means the value of the energy their PV system produces also varies depending on the time it is sent to the grid.) In California, all commercial, industrial, and agricultural customers are already required to be on a time of use plan. And starting in 2019, all residential customers will be defaulted to time of use rates unless they actively choose a different rate. But time of use rates are not just a California phenomenon. A review of Aurora’s extensive database of current rate plans around the country revealed nearly 2,000 different time of use rate plans across the country for different types of customers. While California has the most pervasive application of time of use, we found multiple utilities in almost every state in the country with some kind of time of use rate structure. Whether time of use rates are already common in your area or you want to be prepared for future developments, it’s a good idea to learn how to adapt your solar sales conversations to account for time of use rate structures. In today’s article, we discuss five tactics that can help solar contractors effectively address time of use rates in solar sales conversations. 1. Make sure your prospect understands time of use rates. First, it’s important to ensure that your customer understands what time of use (TOU) rates are and how they impact their bill. For many customers, making sense of the different parts of their electric bill can be complicated–so an unfamiliar billing structure like TOU seem daunting to understand. TOU rates don’t have to be confusing, however. When you explain them to a homeowner look for opportunities to relate them to something they already understand. They’re probably already familiar with time-dependent pricing in other contexts, like parking rates coinciding with a big event. In Aurora’s primer on how TOU rates work, we liken them to movie ticket pricing. Moviegoers pay less for a matinee show when there is lower attendance, just as TOU customers pay less at times when during periods when there is typically less energy demand. Explore different analogies to see what explanation resonates best with your customers. Relating TOU rates to other time-variable pricing customers may already be familiar with–like movie tickets–can help make them easier to understand. The key point to emphasize is that the price the utility charges for each kilowatt-hour (kWh) of energy consumed will now vary according to the time of day it is consumed. Each TOU rate designates different periods of the day when different rates apply; there will be specified peak demand times where the rate will be higher than during the off-peak demand times. 2. Set yourself apart with TOU expertise. Giving your customer insights into how TOU rates can affect them given their usage can help you distinguish yourself from the competition. Insight selling, the ability “to leverage a deep understanding of customers to establish trust and rapport,” positions you as a source of value for them during the initial selling process and beyond. Demonstrating a comprehensive knowledge of your customer’s specific TOU program and how it applies to their unique situation will go a long way towards establishing yourself as the trusted advisor during the sales process. For example, you’ll want to be able to explain to your customer exactly when different electricity prices apply. You should also know if their rate structure varies depending on the season or day of the week (many TOU rates have different schedules for winter and summer or between weekends and weekdays). An example of a time of use rate structure from California utility PG&E (E-TOU rates option A during the summertime). As you can see, this rate structure applies for the summer season, while another structure applies in other months.  Source: PG&E. (Relatedly, you’ll also want to be prepared to explain how their net metering credits are treated under their particular utility rate and state policies–and these policies are often in flux, so stay up to date!  For example, under California’s NEM 2.0 policy, credits from solar energy can only offset part of their energy charges–regardless of the value of that energy based on the TOU period when it was produced.) 3. Offer insight on what to expect given their energy usage patterns. A customer’s bill on a TOU rate is highly dependent on when they consume energy throughout the day, but many customers may not have a clear picture of how their energy consumption varies at different times. Another powerful way you can add value for the customer and demonstrate your company’s expertise is to give them a better understanding of their current energy usage patterns. Aurora provides a number of ways you can do this. Aurora offers multiple ways to model your customer's energy load profile. Sharing that load profile with customers can offer valuable insight into their current energy consumption patterns and how TOU rates may affect them.  First, if your customer’s utility company provides green button (i.e., interval) data for customers–which provides a granular view of how much energy they consumed during every 15-minute interval in the billing period–you can upload that data into Aurora. Aurora will then construct a load profile for the customer based on their actual usage at specific times throughout the day.   An hourly load profile showing the actual amount of energy a customer used at different times of day during the summer months, constructed with Green Button data uploaded into Aurora. Second, even if green button data isn’t available, Aurora can model customers’ hourly load profiles based on their electricity bill(s) or monthly kWh consumption. Aurora extrapolates a load profile for residential customers by taking into account local weather data, as well as building characteristics–like whether they have air conditioning, electric heat, or energy-efficient lighting. (For commercial customers Aurora develops load profiles based on the typical usage for that building type.) This can be a great way of helping your customer understand how they currently use electricity. (And, paired with data on how much energy their solar PV system will produce at different times this also allows you to show how much solar will help them save, as we discuss below.) An example of an estimated residential load profile created in Aurora. The different colors represent energy consumption from different building characteristics, like air conditioning and lighting.  You could also offer insight into future energy decisions that might coincide with their solar purchase. For instance, if your customer is considering buying an electric vehicle to go along with their new solar installation, you could use Aurora’s energy consumption tools to show how their load profile would change (you could even enter the specific EV model). 4. Use financial analysis tools that clearly show the impacts of TOU rates. Perhaps the most important element of selling a solar installation in an area with TOU rates is to be able to clearly show how your customer’s solar savings will be impacted by their particular utility rate. Aurora's financial analysis tools make it easy to show prospective customers how much they'll save by installing solar.  Make it clear to your customer that, under TOU rates, the value a solar design provides depends on more than just how much total energy it produces. They have to consider the value of that energy based on when it’s produced. Aurora’s performance simulation tool calculates how much a particular solar design will produce at different times of the day and year. Aurora also has a database of over 3,000 of utilities and over 17,000 utility rates around the world (and if your particular rate isn’t present, you can easily add a new one). The customer’s specific utility rate is taken into account in Aurora’s financial analyses, allowing you to accurately calculate their pre- and post-solar bills. If a TOU rate is selected, Aurora will take into account the customer’s net usage at different times (based on the system’s energy production and the customer’s energy usage) to determine their post-solar utility bills. Plus, if there are multiple utility rates that the customer could qualify for after installing solar, you could run analyses to show them which would save them the most. If TOU rates are optional in your area, you can advise them on whether opting-in makes sense. 5. Highlight how your design is better. It’s one thing to talk about the difference a design can make and another to show it (show, don’t tell). You can experiment with different solar designs and analyze how much they save the customer to find the best option given their rate. This will allow you to show your prospect why the design you propose saves them more. Design changes can have a big impact. For instance, in a rigorous study of over 600 solar projects designed in Aurora and over 900,000 design variations, Aurora researchers demonstrated that adjustments to the orientation (west-facing because panels receive more late afternoon sun, which coincides with peak energy prices under many TOU rates) and size (larger systems mean better net present value) can help improve the financial returns of systems on a TOU rate structure. With Aurora solar design and sales software, you can model a variety of designs for your customer and see which offers the best savings given their utility rate. This is particularly helpful for customers on TOU rates who may save more with a design that produces more energy during hours with peak pricing. Given the steady growth of solar and the accompanying adoption of time of use rates, it’s wise to prepare yourself for a post-TOU solar market. The better you are at explaining TOU rates in your sales conversations, the easier it will be for customers to see the value your proposed solar installation will provide. And although TOU rates can be complex, for the solar salesperson who is prepared, they can present an opportunity to demonstrate expertise and stand apart from the competition. ### 5 Ways Solar Design Software Helps Contractors Work Smarter As a solar contractor, you’re on the front lines of the incredible transition to cleaner energy–bringing your customers more control over their energy bills and the peace of mind that their energy is sourced responsibly. But, as you no doubt know, running a solar contracting business isn’t always easy. You have to be able to roll with the punches of things beyond your control, like the imposition of tariffs and uncertainty in solar policies and incentives (for instance, decisions by Connecticut and Michigan to eliminate net metering this year). But there’s one common solar contracting struggle that you can control–the efficiency of your site assessment and solar design processes. Here at Aurora Solar, we’ve encountered these challenges firsthand. That’s why we’re passionate about finding ways contractors can work smarter and more efficiently, saving time and money on their design and sales processes. In today’s article, we explore some of the ways solar design software makes that possible. Aurora co-founder Samuel Adeyemo installing a commercial solar installation on a school in Kenya. In the process of designing the system from across the world, he and co-founder Christopher Hopper realized the barriers to remote solar design without effective software. They founded Aurora to address that need. 1. Follow up with leads faster When you get an inquiry from a prospective customer, where do you start when it comes to determining if their home is suitable for solar and putting together a quote? If, like many solar contractors, you set up a time to visit the site, climb on the roof, and take solar access measurements before compiling a proposal, your time-consuming approach could be costing you sales. Cascadia Solar learned this the hard way. A family business serving Washington state’s Olympic Peninsula, Cascadia Solar prided themselves on their exceptional customer service and detail-oriented solar design process. But over time, they started to find that companies with faster turnaround times were beating them to the punch. Sometimes, by the time Cascadia arrived to conduct their site visit, the customer would already have several quotes from companies that used remote site assessment. When Cascadia Solar learned about Aurora Solar design and sales software and how it could enable them to develop a proposal that was just accurate as their previous process without time-consuming site visits, the choice was easy. Since switching to Aurora, Cascadia’s solar sales have doubled month over month, and more than doubled year over year! In addition to being able to send a proposal quickly (getting back to the customer while they’re most engaged is key to closing sales), they can now pursue leads that would have been too costly to target before.  2. Save time and money on site visits Not only can a more efficient solar design process help you close more sales by responding to inquiries faster, the time and money saved by reducing your site visits and manual measurement processes can be significant. In a low-margin industry like solar, where every dollar counts, adopting an accurate remote solar design software like Aurora is a powerful way to put more money back in your pocket. NREL has estimated that installers can save ~$850 per  5-kW install with remote site assessment software (savings of $0.17/W). For Solarponics, a residential installer in California serving San Luis Obispo county, switching to Aurora allowed them to cut initial site visits by 90% while doubling installs. 3. Achieve superior accuracy with state-of-the-art technologies  Of course, these benefits of software-based remote solar design are only meaningful if the results are as accurate as traditional methods rooted in on-site assessment. That’s the beauty of the technological advances that enable remote solar site assessment and design. NREL has found that Aurora’s shading engine (which allows us to precisely calculate irradiance on the roof) produces results that are statistically equivalent to onsite measurements. But we haven’t stopped there. Commitment to developing and incorporating the latest technologies is at the core of our company culture. One key technology we offer customers to help improve design accuracy is LIDAR. If you’re not familiar with it, LIDAR is a lot like SONAR but instead of sound pulses it uses laser beams to create a detailed topographical map. This data is perfect for ensuring that you’ve accurately modeled the height of a tree or the pitch of the roof, which could affect the solar access and energy production of your design. Additionally, we've partnered with HD imagery provider Nearmap, to make the most up-to-date and crisp imagery accessible to our customers for purchase in small, affordable bundles within the Aurora app. This way, if the Google or Bing satellite imagery for your project site is not recent enough or lacks clarity, HD imagery is just a click away. We’ve also pioneered the use of computer vision for solar design. This field of computer science teaches computers to interpret visual images. At Aurora, we’ve developed computer vision approaches that allow you to take precise measurements of the project site using a combination of street-level and aerial images. Aurora’s computer vision tools give solar designers the ability to take measurements of a project site using aerial and street-level imagery. Our computer vision tools also make it possible to automatically detect similar roof obstructions. This can save considerable time, especially on commercial projects where there might be hundreds of repeating skylights or vents that would otherwise have to be drawn out by hand. 4. Build trust with customers  Being able to demonstrate to your customers that you’re using the latest technologies to develop a personalized solar design for them is also a great way to help build trust and stand out from the crowd of competitors. Scott O’Hara, Solar Energy Consultant at Baker Home Energy, a San Diego area solar company (twice ranked the #1 solar electrical subcontractor in Solar Power World’s Top 500 Solar Contractors list), can attest to this. “Aurora’s software has given me a significant advantage in an extremely competitive market. It allows me to show customers why we are proposing a specific panel layout with the help of the sun path simulator.” Aurora models the sun’s movement, and resulting shadows, at every hour of the year. Showing the sunpath animation to your customers can help explain design decisions. Numerous other companies have found it helpful to show off their Aurora design processes during the sales process–such as Sunworks, which operates a solar design showroom where they create personalized designs in Aurora with the customer. Another key to building trust with customers is the accuracy of your energy production and bill savings estimates. According to O’Hara, “[Aurora] also increases consumer confidence, because they know we are using the best technology available today to accurately project the performance of the system.” Unlike other solar software programs on the market, Aurora takes into account the exact stringing configuration of your system as well as the capabilities of the components you’ve selected, such as whether your inverter performs global maximum power point tracking. Aurora also pioneered the approach of simulating PV production at a submodule level, adding another layer of precision. Aurora even details the causes of reduced system performance in it’s system loss diagrams, allowing you to understand the impact of factors like inverter clipping. These insights can help you arrive at the best design approach for your customer (as we discuss in more detail below). (For a deeper discussion of some of the key factors for accurate performance simulations, see our article in Solar Power World.) Aurora’s system loss diagrams indicate how much different factors are impacting energy production. 5. Deliver the best design for the customer’s goals A final, powerful reason solar design software can improve your design processes is that this streamlined approach makes it considerably easier to compare multiple designs, in order to arrive at the one that best meets the customer’s goals. We all have a limited amount of time, so without an efficient process for iterating through different designs it may not be feasible to evaluate many options and find the best (as Aurora co-founder Christopher Hopper discusses in his article, “Four Steps to Optimize PV System Performance in Shaded Conditions.”) One key factor on which to evaluate solar designs is how much they will save the customer on their electricity bills. Aurora has an extensive database of utility rates (and makes it easy to add new rates) so you can assess the bill savings impact of different designs given the customer’s utility rate. For instance, if the customer is on a time of use rate, a design that produces more energy during hours when electricity is most expensive might save them more than a design that produces more total energy. Aurora’s AutoDesigner tool takes design iteration to the next level, applying approaches from the field of mathematical optimization to create an automated process that mimics natural selection to arrive at the ideal design given different objectives. A depiction of how Aurora’s AutoDesigner iterates through potential designs to arrive at the optimal one for the customer’s goals. As a solar contractor, you’ve got a lot of demands on your time. Advanced solar software for remote site assessment and solar design can cut the time and cost of site visits, freeing you up to focus on quality installations and satisfying your customers.   Interested in learning more about how Aurora's state-of-the-art remote solar design tools can help your company work more efficiently?   ### California’s Solar Mandate for New Homes: What You Need to Know [Editor's note: This article was updated on December 6, 2018 to reflect formal approval of the policy by the California Building Standards Commission.] As you may have heard, California recently became the first state to mandate solar PV systems on all new homes. This is a momentous decision for the industry; it brings the benefits of solar, a historically niche product, directly to a significant portion of homeowners. The policy will dramatically expand the size of California’s solar market–already the most mature in the nation–and perhaps it will eventually inspire similar action in other states. For California solar companies that position themselves effectively, this could open up some great opportunities to serve a vast new sector. In today’s article, we detail what’s required under the new policy so you can make sense of what’s changing and assess the market opportunities. Interested in learning more about the resulting market changes, business opportunities, and how your company can get involved? What policy establishes California’s new home solar mandate?   On May 9, 2018, the California Energy Commission (CEC) approved the 2019 Building Energy Efficiency Standards. What’s significant in this update to the Building Code is that, starting in 2020, every new home built in California will be required to have a PV system installed. (That is unless the building qualifies for an exception, of which there are a few). The policy got official approval from the California Building Standards Commission in December 2018.  What types of buildings are covered under California’s solar mandate for new homes? The code states that the solar requirement applies to “all low-rise residential occupancies including single-family homes, duplexes, garden apartments, and other housing types with three or fewer habitable stories.” This includes multi-family housing like apartment buildings as long as they are under three stories. And for single-family homes, it doesn’t matter how tall the building is–all homes of that type must comply. California’s mandate of solar on new home requires solar PV systems be installed on all new homes, including both single-family and low-rise multi-family homes. There are a few exceptions under which a home would not be required to have a PV system (such as including when there is limited unshaded roof space) or would be allowed to install a smaller system. Multistory buildings with limited roof space and homes that incorporate energy storage can qualify for a smaller PV system. Additionally, buildings that are permitted prior to January 1, 2020 will be exempted from the requirement. What is required to comply? One of the most important things to understand is the required size of the PV system under California’s solar mandate for new homes. The policy establishes a minimum PV system size for a home based on the building’s projected annual electrical usage.  Minimum PV system size is calculated based on the conditioned floor space (square feet) and the climate zone where the building is located. (To determine what zone your building is located in, you can use the EZ Building Climate Zone Search App developed by the CEC.) In order for a home to receive a building permit, the builder will need to demonstrate that it will have a solar system of at least that size. A map of California’s Building Climate Zones; the zone a new home will be built in will influence the size of solar PV system that must be installed under the state’s new mandate of solar on all new homes. To determine what zone your building is located in, the EZ Building Climate Zone Search App is a handy tool. (Image credit: CEC) Aside from requiring compliance with the minimum system size, the policy allows some freedom for solar contractors and builders to meet the requirements in different ways. For one, developers could choose to install a community solar installation for a group of homes instead of putting rooftop solar on each building. However, they would need to be able to demonstrate that it would offer equivalent benefit to residents as if they had solar on their own home.  Additionally, a variety of solar financing options are allowed. Systems could be owned by the homeowner (added into the cost of the home) or third-party owned. This means depending on what kinds of solar financing your solar company offers customers, you’ll have flexibility. How do you determine the required PV system size? The code includes two different paths for compliance, prescriptive and performance; either can be used to meet California’s solar mandate for new homes. The prescriptive approach utilizes a formula to specify the minimum PV system size (see the appendix at the end of this article for the formula and an explanation). This method is simpler but less flexible. The performance method (aka “computer compliance method”) is a little more complex but allows for greater flexibility. The CEC has created a free software program (“CBEC-Res”) to allow contractors to model alternative PV sizes, based on different building characteristics like battery storage or demand response.  Next Steps Some details of the policy, including more specific guidance for compliance, are still being developed by the CEC. We’ll continue to share relevant updates as they are available. In the meantime, you can check out the resources below to learn more. Finally, if you want to prepare your company to take advantage of the resulting business opportunities, check out Aurora’s recent webinar hosted by Solar Power World. An example of a solar project site model created from building roof plans in Aurora–one of the ways Aurora makes it easy to adapt your solar design processes for this new solar market. Our webinar (linked above) demonstrates this process. Additional Resources: 2019 Revised Energy Code (the actual code language) 2019 Draft Compliance Manuals–Residential Manual Chapter 1–Intro Chapter 7–Solar Ready Joint Appendix 11 of the 2019 code covers PV system standards. Joint Appendix 12 of the 2019 code covers solar + storage scenarios. EZ Building Climate Zone Search App–This tool helps you determine what climate zone a California house is located in (which impacts the size of the solar installation required). EnergyCodeAce–This site offers free trainings on energy code issues, as well as other resources. Courses for the 2019 code are not yet available but should be forthcoming. CBECC-Res Compliance Software–This is the free software CEC developed to help builders and installers determine required system size based on building characteristics. CEC Energy Standards Hotline You can call this hotline for answers to code-related questions on weekdays from 8 a.m. – noon and 1 p.m. – 4:30 p.m. (800) 772-3300 (916) 654-5106 CEC’s Blueprint Newsletter–A periodic newsletter with advice on code compliance. The April - September 2018 issue has insights related to the 2019 building code. Appendix–Prescriptive Compliance Formula The following formula establishes the minimum PV system size for a new building under the prescriptive approach in the 2019 Building Energy Efficiency Standards. For a full explanation, see section 7.2 of the 2019 (Draft) Residential Compliance Manual (a final version is still under development at the time of writing so this draft version is the latest guidance). kW PV required = (CFA x A)/1000 +(NDwell x B) Here’s what those variables mean: kWPV = kWdc size of the PV system CFA = Conditioned floor area NDwell= Number of dwelling units A = Adjustment factor from Table 7-1 (see below, center column) B = Dwelling adjustment factor from Table 7-1 (see below, right column) ### A Solar Market Niche You May Have Overlooked: Low- and Moderate-Income (LMI) There’s a growing trend in the solar market that some solar contractors may have overlooked: moderate- and low-income households as solar customers. As the cost of solar has gone down and financing options have expanded, these communities are becoming a more and more viable niche for the forward-thinking solar contractor. There have been a number of successful solar policies enacted around the country intended to achieve a more balanced level of solar market participation across incomes. The 2016 Low-Income Solar Policy Guide by nonprofits GRID Alternatives, Vote Solar, and the Center for Social Inclusion, discusses a myriad of federal, state and local level policies and tools aimed at bringing solar to low-income communities. The guide asserts that organizations that enable these communities to participate in solar are making a valuable investment, “whether motivated by… critical justice issues, the climate crisis, or the economic opportunity of a largely untapped solar market sector.” The idea of an untapped market sector for solar is a very attractive one these days. Market saturation, fierce competition, and recent unfriendly government policies have put pressure on solar contractors to find innovative ways maintain growth and differentiate themselves. Broadening and diversifying the populations your company works with could be a smart move, whether from a marketing, financial, or mission-driven perspective. In a recent interview on our blog, Abby Hopper, President and CEO of SEIA–who has made inclusivity a priority for the organization, emphasized the solar market’s need to diversify its customer base. While barriers to solar adoption remain for many low- and moderate-income households in America, a recent study has surprising findings about the viability of this sector. Compelling Data About A Solar Market Niche The report, Income Trends of Residential PV Adopters, was conducted by Lawrence Berkeley National Lab’s Electricity Markets and Policy Group to paint an accurate portrait of current rooftop solar adopter income levels in America and discuss recent and future developments. In particular, the authors sought to provide comprehensive information about low- and moderate-income (LMI) households. The study examined data for 781,153 residential PV systems in 13 states, representing 61% of all residential systems in the US. The authors explain that their analysis is unique in part because, contrary to previous studies, they pull income estimates for each available street address, rather than from a more vague source like zip code. There were a number of unexpected, and highly relevant, findings. Unsurprisingly, the median income of PV adopters was found to be higher than other households. A big reason for this is that that home ownership is the determining factor in a household’s likeliness to go solar and fewer LMI households are homeowners. However, when comparing just owner-occupied households, that margin of difference was significantly smaller. Plus, the gap in income between low- and high-income PV adpopters was smaller in states with higher incomes overall than in lower income states. Additionally, in those higher income states, a larger fraction of households below the median income were found to afford solar. The study also found that a sizable portion of solar adopters are moderate-income households. It found that this portion of the population comprises 33-50% of solar adopters in 13 states, and the market share of this group is rising. Additionally, low-income groups (below 200% of the Federal Poverty Level) make up 15% of all PV adopters within the sample. The authors attribute this to the growth of third-party ownership, more attention from agencies and solar contractors, and a general maturing of the solar market (i.e. consumer awareness). They also highlight the declining solar costs as an important factor, something Hopper points to as well. She states, “in four states, the average income of solar adopters is on parity with average income in the state; it's right where it should be." Also unsurprisingly, the study finds that use of third-party ownership options, like leases and PPAs, are more concentrated among LMI solar adopters. However, the authors points out that this fact in itself is notable, “given the oft-stated concern that lower-income HHs may have more difficulty qualifying for TPO contracts, given a presumption that these HHs have lower credit scores.” Conclusion? Lower- and moderate-income communities should not be ignored. Thinking Outside the Box to Tap Potential What all this amounts to is that LMI households represent an opportunity for forward-thinking solar companies to build business models that take advantage of a previously overlooked niche. And this might mean rethinking the usual way of doing things. For example, the Yale Center for Business and the Environment released a report in 2017 that examined marketing tactics for LMI customers. In addition to some interesting findings around why and why not LMI families adopt solar, they found that LMI households tended to respond best to information about solar from print articles and community newsletters, town leaders and events rather than online media or a letter identifying their house as well suited for solar. It could also mean embracing solar offerings previously unexplored by most solar businesses. The Berkeley Lab study points to the advantages of targeting groups like multi-family households and renters who often access the benefits of solar through community solar, a form of solar particularly important to LMI households. Community solar is a growth market: a joint study by the Smart Electric Power Alliance (SEPA) and the Coalition for Community Solar Access (CCSA) report found that community solar in America grew 112% in 2017, from 387 MW to 734 MW. And Abby Hopper states that, “community solar has really taken off in the past year...it's very accessible to people; it’s a business model that intuitively makes sense...So I think community solar will continue to grow." All of this means an opportunity for solar contractors to broaden their customer base and explore less crowded markets. Riding the Wave of the Future In light of all the changes the solar industry goes through, thinking outside of the box can be an advantageous strategy for solar contractors looking to grow their business. Understanding that the income profile of PV adopters in rooftop solar is always evolving can help the savvy contractor anticipate and capitalize on market opportunities. Ultimately, embracing making LMI households an integral part of your company's future plans could mean joining what study author Galen Barbose calls “a new frontier.” ### Expert Q&A: Why Solar Panel Recycling Matters–and How It Can Benefit the Industry The growth of the solar industry has been an incredible renewable energy success story, with an average annual growth rate of 59% over the last decade according to SEIA. By 2023, more than 14 GWdc of PV capacity is forecasted to be installed annually. Given an average panel size of 295 watts, that’s over 64 million panels per year! While this growth is a tremendous boon for the environment as a means of tackling climate change and reducing air pollutants, there is one potentially negative environmental impact of solar energy that remains largely unaddressed. What will happen to this vast supply of solar panels as they reach the end of their productive life? Without systems in place for sustainably managing solar panel waste, it could become a significant environmental challenge. Proactively implementing solar panel recycling processes, however, can offer business benefits as well as environmental sustainability. To better understand the significance of this issue, what’s being done, and how the industry can benefit, Aurora Solar spoke with Dr. Vasilis Fthenakis and Michael Ginsberg, from Columbia University’s Center for Life Cycle Analysis. Dr. Vasilis Fthenakis is the Founder and Director of the Center for Life Cycle Analysis (CLCA) at Columbia University’s Department of Earth & Environmental Engineering. He is also a Senior Scientist Emeritus at Brookhaven National Laboratory (BNL) where he conducted research for 36 years and directed the National Photovoltaic (PV) Environmental Research Center. His research is a crucial part of the scholarly landscape for comparing renewable energy technologies with conventional energy options and is assisting the large scale penetration of solar into the European and U.S. electricity grids. Some of his current research focuses on identifying cost-effective solar recycling options. Michael Ginsberg is a Ph.D. candidate in Professor Fthenakis’s group at Columbia University’s School of Engineering and Applied Science. He has served as an energy management trainer and policy advisor for the U.S. Department of State on issues of energy diplomacy. Through his firm, Mastering Green, he has advised the New York City Mayor's Office of Sustainability and Long Term Planning and the UN Development Programme on climate change adaptation measures in NYC and West Africa. Gwen Brown, Aurora Solar: Why is solar panel recycling an increasingly important issue for the solar industry, as well as for society more broadly? Fthenakis: One key reason is that the volume of photovoltaics is increasing, so having a system in place for the end-of-life management of the panels is becoming more and more important. The necessity of this will become more obvious as big installations, and large volumes of panels reach their end of life. For residential systems, owners will be wanting to do something with the modules that they have on their roofs, and will be asking for avenues for disposing of them. It's becoming a necessity. Second, there are some toxic elements in solar panels, which make it important that they be managed responsibly. And third, solar panels contain relatively rare elements of high value. When they are recycled, it enhances the sustainable growth of photovoltaics by creating a secondary stream of valuable materials. In this way, recycling can help relieve pressure on panel prices. The huge volume of solar panels being installed in recent years will make it especially important to have recycling programs in place for sustainably managing these panels when they reach their end of life.  Brown: What are some of the advantages for solar manufacturers that integrate recycling practices into their business operations? Fthenakis: One is the marketing advantage. Customers and stakeholders want the whole lifecycle of photovoltaics to be beneficial for the environment. When solar panels operate they are obviously beneficial to the environment, especially if they displace other dirty power generation systems. But end-of-life management of panels is the only negative environmental impact of photovoltaics that is not really resolved in the United States. So tackling this issue is very important from a marketing and public relations standpoint. Second, regulations are expected. Although we don't know when, we expect regulations in the U.S. on the management of solar waste at some point, as we have seen in Europe. If the industry is proactive, it can get ahead of the regulations. Industry stakeholders will be able to plan a recycling scheme the way they think it will work best, not in the way regulators might enforce it. A third benefit for manufacturers, is that they can capture the value of the relatively rare elements that can go back into the manufacturing of photovoltaics–for example, silver in crystalline silicon panels; in thin films, tellurium, indium, gallium, germanium. These types of rare elements will need to be sustained through the century for the production of photovoltaics. Brown: Given the limited supplies of some of these rare earth metals that are needed for different types of panels, will recycling be important in the long-term to protecting the supply chains of different types of solar panels? Fthenakis: Towards the middle of the century, with expected growth, recycling will start becoming very important to solar panel supply chains. Projections show that, from mid-century on, the secondary stream could become as big as the primary one. There are two reasons for this; one is the large volume of solar installations that will be reaching their end of life at that point. Second, the primary production of many of important elements for solar panel production, such as zinc and copper, will peak by that point. To sustain the transition from fossil fuels into renewable energy, with solar as major constituent, the solar industry will need to keep growing through the end of the century. Without recovery of those materials, it may not be able to. Recycling will become a necessity–not immediately, but from 2035 on. Tellurium, used in thin film solar panels, is an example of an element whose supply will peak in the coming decades. This chart shows projections of tellurium availability for photovoltaics from copper smelters (dashed lines; peaking in ∼ 2055) and total from copper smelters and recycling of end-of-life photovoltaic modules (solid lines; continuing upward trend until 2095). The red and blue curves in each pair correspond to high and low projections, respectively. Note: A tellurium demand of 322 t/yr for non-photovoltaic uses was subtracted. Source: Fthenakis, V. (2012). Sustainability metrics for extending thin-film photovoltaics to terawatt levels. MRS Bulletin, 37(4), 425-430. doi:10.1557/mrs.2012.50.  Brown: What are some of the barriers to solar panel recycling at this time? Are they primarily technical barriers, or more related to the process of integrating recycling into business operations? Fthenakis: For the established technologies, mono- and multi-crystalline silicon and cadmium telluride, there are not technical barriers. There are tested, established technologies that show the separation of panel components can be done effectively and the materials can be taken out and be reused in different ways. For new technologies, like organics and perovskites–some PV technologies that use more exotic materials, recycling technologies have  not be established yet. Overall, the issue is not technical. The feasibility of separations is proven. Cost remains is an issue, however. Because photovoltaics compete on price with inexpensive conventional energy, cost is very, very important. It's not like the recycling of expensive electronics where an additional costs can be absorbed in the price. Additionally, manufacturers are under pressure to keep the costs down because of the big influx of inexpensive photovoltaics from China, which has suppressed profit margins a lot. As a result,  although many in the industry realize that this is a necessity, we haven't had an industry-wide program yet in the United States. However, solar recycling doesn't have to be costly; it can add value, as long as there are sufficient volumes and the activities–from commissioning and transport to recovery–are well planned. Ginsberg: The primary question we're asking now is: "how do we maximize revenue and minimize cost?" Maximizing revenue is achieved by capturing the high-value elements–such as tellurium in cadmium-telluride modules. As Dr. Fthenakis said, the feasibility of separations has been proven. In his work at the Brookhaven National Laboratory, Cd, Te extraction and separation was completed at a project cost of 1 cent/Wp. Now in minimizing cost, we have to minimize the cost of collecting. At Columbia’s Center for Lifecycle Analysis, we look at the cost of materials collection through life-cycle assessments. One of the things we focus on is reverse logistics, including looking at the infrastructure for collecting modules. Currently, manufacturers are able to distribute but not necessarily collect. A lot of the work that we do at the Center is looking at determining certain break even points to make solar recycling profitable. Minimizing the cost of collecting modules for recycling is one area where more work is needed to solar panel recycling accessible and cost-effective.  Brown: You mentioned that there has been industry-wide action on solar panel recycling in Europe. How does the current landscape of solar recycling in the U.S. compare to other markets like the E.U.? What has been done commercially to implement solar recycling here in the U.S.? Fthenakis: In Europe, solar panel recycling has become mandatory since 2012 due to the Waste Electrical Electronic Equipment (WEEE) regulations which mandate recycling of photovoltaics at the end of their life. The industry in the E.U. was proactive and being “a good citizen,” and to some degree in anticipation of regulations, in 2007 started an industry-wide non-profit program called PV Cycle. This program currently assists the industry in complying with the WEEE regulations. It operates warehouses for collection and designated recycling plants. This is unique to Europe. In the U.S. (as well as in Asia and other continents), we don't have that. The industry is using contractors–for the most part metal recovery contractors. Some of the big manufacturers, like First Solar have their own recycling programs. First Solar is managing recycling in-house; they have developed the technology, in-part based on patents developed with my work at Brookhaven National Lab. Others are using contractors to which they send the decommissioned modules. Ginsberg: In the U.S., the primary regulation that pertains to management of solar panel waste is the federal Resource Conservation and Recovery Act (RCRA). State policies are diverse, so there are no universal standards at the state-level. Under the RCRA, PV modules may be found to be either a hazardous waste or “universal” waste, and are then subject to different handling requirements. Fthenakis: There is a test to determine if a spent module is hazardous waste or not. It's called the Toxicity Characteristics Leach Procedure (TCLP), that applies to the federal level. Most photovoltaics in current production pass this test, which looks for materials like the cadmium and several others. But California has more strict testing. Additionally, a bill passed recently in California, SB-489, designates photovoltaics as universal waste. This means end-of life modules will need to a specialized handler, such as a household hazardous waste facility, “Take-It-Back Partner”, or collection event, a universal waste transporter, or a universal waste destination facility. Brown: Are there any other final thoughts on solar panel recycling that you would like to share with our readers? Fthenakis: I encourage solar installers to communicate to their suppliers that a recycling program is needed; customers will increasingly be asking for it. Ginsberg: The work on separation of elements has been done. Beyond the fact that the increasing demand of rare elements will necessitate their reuse, we need collection infrastructure paradigms that ensure profitability for manufacturers, whereby the revenue from output materials is greater than the module receiving, processing and inventory costs. It will be important to put pressure on the module suppliers to set up these photovoltaic take-back centers and demonstrate that they are proactive about recycling. Fthenakis: And, when solar customers ask about what will happen to their system at the end of its life–because people who invest in photovoltaics tend to be environmentally conscious–it would be valuable to have planted the seeds of a recycling program to address these concerns. ### Instructive Insights from Intersolar 2018 Last week found the Aurora team busy manning our booth at Intersolar North America–our “hometown” solar conference and trade show just a short walk from our office in San Francisco. In between the fun we had talking to fellow solar enthusiasts at our booth, we found some time to explore the conference and Expo floor. Aurora sales consultant JT McCook shares a sneak peek of some new Aurora technology. While there were tons of great new solar products on display, we especially loved the opportunities to learn. Here are a few educational highlights we found interesting from Intersolar 2018: 1. Resources from The Solar Foundation for finding great solar employees Something we’ve seen repeatedly in The Solar Foundation’s annual Solar Census is that, as the solar industry continues to grow (industry jobs have nearly tripled since 2010), employers are finding it increasingly difficult to fill job openings with qualified solar professionals. The Solar Foundation has found hiring to be a common challenge for solar installation companies. Source: Presentation by Chris Walker at the Innovations and Applications stage at Intersolar North America 2018. If your company is one of the 84% of solar installation companies that report difficulty hiring, the latest The Solar Foundation’s latest initiative is for you! The Foundation released at Intersolar a new resource: Strategies for Solar Workforce Development: A Toolkit for the Solar Industry. Chris Walker, Senior Program Manager for the Solar Training Network, presents The Solar Foundation’s latest report for solar companies. Chris Walker, Senior Program Manager for the Solar Training Network at The Solar Foundation, presented on the toolkit at the Innovations and Applications stage. The toolkit focuses on providing solar companies actionable steps for engaging with the public workforce system to develop work-based learning opportunities to help create a pipeline of qualified employees. A diagram of the benefits of collaboration between the workforce development system and businesses, as articulated in Strategies for Solar Workforce Development. Source: The Solar Foundation. Among the toolkit recommendations are that employers collaborate with the Workforce Development System (comprised of local workforce development boards, job centers, and education and training providers) to communicate the skills they need. It explore some of the different forms of workforce training programs and how employers can choose those that best fit their needs. Importantly, it also highlights the availability of federal funding for workforce training  programs through the Workforce Innovation and Opportunity Act. Interested in learning how these strategies can help your company more easily hire qualified employees? Check out the full report here! 2. Expert perspectives on the Future of Solar One session of the conference we particularly enjoyed was the Future of PV panel. Expert panelists offered insights on what the future of solar energy will be in the US and global markets, as well as thoughts on what developments will be involved to get us to that point, based on their diverse roles in the industry. Jesse Grossman, CEO of Soltage–a solar developer that owns a fleet of solar assets around the country, shared some of the trends his company is observing as it keeps tabs on the U.S. market. One of the main things he underscored was the role of community solar as the fastest growing segment of the market. This makes a lot of sense to us since community solar makes solar accessible to the large share of potential customers who, for a variety or reasons, can’t access solar directly. Angelina Galiteva, Founder of the Renewables 100 Policy Institute and a board member of California Independent Systems Operator Board (CAISO), shared a California and international perspective on the future of solar. She honed in on some of the challenges grid operators are grappling as they work to incorporate increasing amounts of renewable energy and resulting variability in the timing of energy production. While these are big challenges, Galiteva painted an optimistic picture. She noted that high levels of renewables will be the new normal, and reiterated trend of steep declines in the cost of solar and other renewable energies. She underscored that collaboration will be key to a smooth transition toward a future where a majority of our energy is renewable–including collaboration between different regional grid managers, regional grid interconnection to allow for the sharing of excess renewable generation, and the sharing of information and lessons learned. She also highlighted the diverse suite of solutions that will be needed, including energy storage, demand response, TOU rates, diverse renewable energy sources, and electric vehicles. 3. Remembering the solar pioneers who helped get us where we are today It was exciting to hear a variety of perspectives on a clean energy-powered future–but we were also intrigued by the opportunity to learn about some of the early solar adopters and enthusiasts who first helped launch the solar industry decades ago. A new independent documentary, “Solar Roots - The Pioneers of PV," had one of its first screenings at Intersolar–a 20 minute teaser followed by a Q&A session. The film, Jeff Spies and Jason Vetterli, is based on interviews of 50 pioneers of the solar photovoltaic industry. Speaking to Inovateus Solar, Spies explains “I’m telling peoples’ life stories, their legacy for future generations is in my hands, and I now fully appreciate the weight of that responsibility. I’m committed on a personal level, above all else, to telling the story the way that will make the people in the movie proud.” Solar Roots, a documentary by Jeff Spies and Jason Vetterli explores the role of early solar enthusiasts in demonstrating the viability of solar energy and helping to launch the PV industry. These stories of people whose commitment to solar helped the industry first take root are not often heard, so we encourage you to check out the documentary if you get the chance. It will be screened at future gatherings of solar professionals, including at Solar Power International in Anaheim, CA on September 26. It’s always a treat to attend solar conferences where we can learn from others in the industry and connect with the community. If you couldn’t make it to Intersolar this month, we hope to see you later this year at Solar Power International in Anaheim, California September 24-27! P.S. What did you like best at Intersolar? Let us know in the comments below! ### Are You Applying These Tactics to Close More Solar Sales? Despite the tumultuousness of the so-called “solar coaster,” the solar industry’s growth trajectory is incredibly promising. Over the last seven years, solar's share of U.S. electrical generation grew from a paltry 0.1 percent to 2 percent. Of course, that still leaves a huge potential market for solar contracting companies. Despite the room for growth, being a solar salesperson comes with a number of challenges. Many customers have little knowledge of solar energy, and the size of the investment may make them hesitate. So, when you are selling solar installations, you need to embrace both traditional and contemporary methods in order to produce the sales numbers you need. In today’s article, we explore a variety of sales approaches that solar companies have found to be successful. Partnerships As every sales person knows, selling is much easier when you have solid leads—so it’s helpful to think creatively about partnerships that can help you identify leads. Real estate agents, for instance, can provide you with an ongoing stream of qualified customers. Many people buy a home with the intention of remodeling it. They are excellent candidates for a solar installation. Other potential buyers might love a home but be concerned about taking on years of high utility bills. You can easily step in and offer them a customized plan to add solar to the sales deal. In this way, everyone benefits: you, the buyer, and the real estate agent. If your town or city has a concierge utility company, you can partner with them as well. These specialized groups are hired by homeowners to take care of switching all of their utility services to their new home. They can easily recommend you as their expert solar representative, giving you an excellent opportunity to sell the home buyers a solar installation. These are especially powerful and productive leads. Door-to-Door Some successful salespeople swear by the door-to-door method for selling solar installations, despite its reputation as a way to sell vacuum cleaners. Experts say this approach works if salespeople are highly trained and use the right pitch to customers. Going door to door means limiting your efforts to the local area, which has proven to be an effective approach in solar sales. Remember, your door-to-door efforts have to be professional and on-point. Your company's reputation depends upon it. The Power of Technology A solar installation is a significant investment, so you will need strong person-to-person interaction. You are more likely to connect to customers through the power of the internet and social media. Email While email is almost certainly something you use on a daily basis in your sales work, it can be utilized in a variety of additional ways to drive more sales, particularly through well-crafted automated emails. This can enable your company to offer instantaneous responses to any inquiry on your company website. Customers do not like to wait, and are all the more conditioned to expect instant attention since many companies offer 24/7 online help. If your company doesn't offer that service, you can still send out automated emails that promise a response from a salesperson in 24 hours or less. The instant feedback will help hold the customer's interest until you do reach out, but you must be careful to always respond in the stated time frame. You can also keep in touch with and nurture "old" leads via automated emails. With a drip campaign, you can automate a series of periodic emails to maintain contact and give the recipients more chances to say yes. Their circumstances may have changed since you last spoke. Old leads may come through if you do not give up. Of course, as with other sales approaches discussed here, your drip campaign must be developed with care and address the contact’s needs. Otherwise, you risk them being seen as spam, which will only hurt your reputation.   LinkedIn, Facebook, et al. Social media can be effective in getting potential leads. The average person has approximately five social media accounts and spends 1 hour and 40 minutes on them every day. If you want to get someone's attention, social media is the way to do it. Plus, friends and family of clients can be a rich sales pool. Software Solar design software programs, like Aurora, that enable you to create stunning 3D visualizations of the client's home with solar panels installed can be very valuable in showcasing the quality designs and installations you offer. Customers need to see that solar can be aesthetically pleasing as well as practical. An image can do much toward finalizing a sale. Of course, an efficient system for tracking your communications with prospective customers is also key to successful sales. Solar installations are not bought on a whim. Many consumers take time to make the leap, so keeping detailed records is essential to your success. If your solar design and sales software integrates with your CRM tools—letting you more easily access the latest version of their solar design—it becomes even easier to ensure your operating with the most up-to-date information. Video Ask your buyers if you can shoot a video of their solar installation. Go to happy customers and get their testimonials on video as well. Consumers expect to literally see results. Sharing a well-done video testimonial in the process of your communications with prospective customers can help build confidence in your services.  Plus, you can get great mileage out of videos, which can be posted on your website, social media accounts, and YouTube. ---- In sales, the basics stay the same. You need to be knowledgeable, personable, and offer a product that has real value for your customers. Solar installations do require an added level of finesse. You are asking people to invest in a new-to-them technology that they may not yet fully understand. To close the sale, you'll need to incorporate both new technology and traditional methods. Give all of these methods a chance and find out which combination works best for you. ### Energy Independence for Independence Hall If you’re a regular reader of the Aurora Blog, you know we love to flex our solar design skills through periodic “Solar Landmarks”—where we design solar installations for notable landmarks around the world. Today on Independence Day, we could think of no better landmark to model than Independence Hall, the birthplace of American democracy. Both the Declaration of Independence and the U.S. Constitution were crafted and signed in these hallowed halls, now a UNESCO World Heritage Site. Andrew Hamilton oversaw construction of the building, which began in 1732, and George Washington was appointed Commander in Chief of the Continental Army here in 1755. Independence Hall in Philadelphia, Pennsylvania. To the right of Independence Hall is Congress Hall, which housed the US Congress from 1790 to 1800, and to the left is Old City Hall, which housed the United States Supreme Court in the 1790s. Credit: NPS photo. While we suspect that the National Parks Service might have some reservations about adding solar panels to such a historic roof, in today’s article we engaged in a fun thought experiment to see how solar could deliver energy savings and environmental value to this national treasure. Evaluating the Project Site The building is comprised of three main parts—a central hall, which sports a tall tower and steeple (these were added in 1750, and were not part of the original building), and two wings on the east and west sides. The wings are connected to the main portion of the building by covered walkways. The east and west wings have hipped roofs, while the roof of the central section has folds and is relatively flat in the center. This center section section of the roof has a few obstructions we need to be mindful of when considering a rooftop solar installation: low fences section off this part of the roof, which is also bounded on either end by decorative brick walls. In this view of Independence Hall, the obstructions on the roof of the central building (decorative fences and brick walls) are clearly visible. Credit: NPS photo. Immediately to the right and left of Independence Hall are two other notable buildings from the colonial era, Congress Hall, which housed the U.S. Congress from 1790 to 1800, and Old City Hall which housed the United States Supreme Court in the 1790s. These two structures are also part of Independence National Historical Park operated by the National Parks Service, through an agreement with the City. Consumption Data In order to determine how large of a solar installation was appropriate for this site, and how much solar could reduce the building’s utility bills, we first needed to determine how much energy the building uses. While we lacked the utility bill data we might have if this were a real solar client, thankfully, Philadelphia publishes energy consumption data for city-owned buildings—including Independence Hall! We found that in 2016 Independence Hall used 839,230.2 kBTUs of electricity. Knowing that 1 BTU, or British Thermal Unit = 0.00029307107017 kWh and there are 1000 BTUs in one kBTU, we were able to determine that the building’s annual consumption is 245,954.1 kWh. We didn’t have a monthly breakdown of how that consumption was distributed throughout the year. However, because Aurora’s consumption portal can extrapolate energy use throughout the year based on even a single monthly data point, we worked backward entering a couple of monthly consumption values until we arrived at the appropriate annual consumption. Estimated electricity consumption of Independence Hall by month based on it’s known annual electricity usage. Aurora’s consumption portal is able to extrapolate usage for other months given one or more monthly usage (or bill) values.  [For more information on how Aurora intelligently extrapolates energy consumption based on patterns for different areas and building types, check out our related residential and commercial load profile articles.] Constructing a Site Model To ensure precision in determining how many solar panels this roof could fit, and how energy production would be impacted by shading from trees and other obstructions at the site, we started by creating a detailed 3D model. For good measure, we also modeled Congress Hall and Old City Hall in case they shaded the structure. Aurora’s SmartRoof design functionality made this easier since we could just outline the edges of the roof and Aurora would automatically infer the roof structure. A 2D view of our site model of Independence Hall, designed in Aurora.  With a few manual adjustments and the addition of roof obstructions, we had a detailed 3D model from which to create an accurate solar design. Obstructions included two tall chimneys on the east and west wings of Independence Hall, the previously mentioned fences on the roof of the main building, and spires on the roofs of Congress Hall and Old City Hall. The area is also filled with many trees and a neighboring skyscraper that could cast shade on the roof, so we carefully modeled these structures as well. A 3D view of our site model of Independence Hall, designed in Aurora. At first glance, it seems that there is plenty of roof space to support a moderately large commercial solar installation. However, we also needed to evaluate the solar potential of this roof because we would not want to place panels in heavily shaded areas. Assessing Solar Potential Using Aurora’s remote shading engine we generated an irradiance map of the roof of Independence Hall. Brighter areas represent areas of higher irradiance. Unfortunately, the solar potential of Independence Hall, located in an area with many trees, leaves a lot to be desired. The south-facing roofs, though having higher solar access as expected, have either obstructions (chimneys on the east and west wings) or, in the case of the main building, receive shade from the steeple. An irradiance map of Independence Hall, showing how much solar energy is available at different points on the roof.  The roofs of Congress Hall and Old City Hall were more promising, with over 90% solar access on some portions of the south-facing roofs (see dialog box above). We initially entertained the idea of placing some panels in these areas, although the roof faces are small and feature dormers. Using Aurora’s “fill roof face” tool, which allowed us to specify a minimum Solar Access Percentage (SAP) for placement of panels, we explored whether a rooftop system could be a viable option. However, requiring that panels be placed only in areas with a SAP of at least 80% resulted in a smattering of panels that was not aesthetically pleasing: In our first design we attempted to place panels in areas of the roof with a Solar Access Percentage greater than 80%. However, the limited roof area meeting that criteria made this design strategy undesirable. With a rooftop solar system effectively ruled out, we turned out sights to a possible ground mount for Independence Hall. We think that option would also be more appealing to the National Parks Service, tasked with maintaining the site’s historical integrity! Plus, on hot summer days, these elevated ground mounts could provide much-appreciated shade for visitors. Across Chestnut Street is a sidewalk area and a large grassy expanse, both also part of Independence National Historic Park. With little tree cover in this area to obstruct solar access, we thought this was a great place for a solar ground mount. 2D view of our proposed ground mount solar installation for Independence Hall. 3D view of our proposed ground mount solar installation for Independence Hall.  We designed a system comprised of 5 arrays of 64 panels (8 rows of 8) with a tilt of 15 degrees.1 The result is a 109 kW system. We then used Aurora’s performance simulation engine to calculate how much energy this system would produce for Independence Hall. Aurora calculates that the system would produce 127,406 kWh per year, offsetting 52% of the building’s annual energy use. Not too shabby! Estimated energy production of the ground mount solar installation we designed for Independence Hall.  Aurora’s system loss diagrams show how different factors reduce the energy production of your solar design. This can be helpful in allowing you to improve the performance of your design.  Independence Hall was the site of many of the great advances in modern democracy. With a solar installation like this, it could also help lead the way toward energy independence and a future of clean energy! Our final solar design for Independence Hall! P.S. Have another famous landmark you’d like to see solar on? Let us know in the comments below and we’ll see what we can do! Notes: 1. We initially designed the system with a tilt of 9 degrees but using Aurora’s system loss diagram we determined that we were losing a lot of production due to the Tilt and Orientation Factor so we adjusted the solar design accordingly. This ability to see how different design factors impact performance and quickly make adjustments was very helpful, allowing us to generate an additional 22,147 kWh annually! ↩ Acknowledgments:  Special thanks to Aurora Research Engineer Andrew Gong for creating the site model of this complex building! ### SEIA President & CEO Abby Hopper on Solar Policy Priorities and More From Washington, D.C. to state capitals around the country, if there’s a policy change that affects clean energy in the U.S., chances are the Solar Energy Industries Association (SEIA) is there advocating for the advancement of solar. As the national trade association for the U.S. solar industry, SEIA represents organizations across all sectors from manufacturing to installation. SEIA works to champion the use of cost-competitive solar, grow solar jobs and diversity, remove market barriers, and educate the public about the benefits of solar energy. Leading SEIA is President and CEO Abigail Ross Hopper, who joined the organization in January 2017. Prior to SEIA, Hopper had an impressive public service career focused on energy, including serving as the Director of the Bureau of Ocean Energy Management. She also held the roles of Director of the Maryland Energy Administration, Energy Advisor to Maryland Governor Martin O'Malley, and Deputy General Counsel of the Maryland Public Service Commission. We had the pleasure of speaking with Abby Hopper to learn more about SEIA’s advocacy priorities, changes in solar markets around the country, opportunities for increasing diversity in the solar workforce and customer base, and more. We’re excited to share that conversation with you today. SEIA President and CEO Abigail Ross Hopper. Photo Credit: SEIA. Prior to joining SEIA as President and CEO a little over a year and a half ago, you held several prominent positions in government. How have your previous positions prepared you for your role at SEIA? One thing I’ve learned is that you can always learn the substance. I was not a solar expert when I got this job; I wasn't an oil and gas expert when I got my previous job. I always learned the substance. What matters, I think, is your ability to think strategically, to execute, and to form relationships and partnerships to make that all happen. I’ve also I learned in my career that thinking about the "why" of what we're doing is so important. Making sure that you're approaching the “why” and the “how” thoughtfully and intentionally—and not just doing things “because”—that's important. Another thing I've learned in my career is that relationships are the most important currency you can have. I could have all the knowledge in the world, but if I don't have the relationships to make things happen, it doesn't matter. Forming, building, and maintaining relationships is incredibly important. What are a couple of SEIA’s top policy priorities at the federal and state level? We have a couple of top priorities at both the federal and the state level. Strategically, those priorities center around defending markets that are already open to solar and ensuring market access. Those are big theories, but that's what drives our work. At the federal level, we're really focused on making sure that—at whatever the venue, FERC, DOE, etc.—solar has an opportunity to compete. Any policies that might come out of this administration that tend to favor existing resources, coal and nuclear in particular, SEIA is going to be opposed to. We are keeping a really careful eye on that. More proactively, we are really lobbying hard for the Investment Tax Credit to be applied to stand-alone storage projects. We think that can be incredibly helpful to the storage industry, and also as it relates to solar. At an intermediate level, if you will, we are thinking about Regional Transmission Operators (RTOs) and the kinds of market rules that are created there. We are engaged, and engaging more and more, to make sure that those rules and marketplaces are fair and open to solar energy. At the state level, every year, we choose about twelve priority states. Those are places where we focus our time, money, and energy. There are a range of priorities at that level, but all are about market access—Renewable Portfolio Standards (RPSs), ensuring fair compensation for net metered customers, tax abatement, land policy, etc. The overriding theory is making sure that solar can compete. Building upon that, given that there are so many different solar policy developments around the country, how do you pick the top priority states to focus on? We are a membership organization, our members tell us what's important to them and that's where we focus. These priority states have historically been a combination of existing strong solar states (places like California or New York, markets we want to make sure stay open and healthy and grow) and emerging markets (Illinois, for example, New Jersey, which was a big market, then wasn’t, and now is again). Those are on the list because they are places where there is a lot of opportunity. It’s a process we go through every year. Every fall, we get together with our members and ask “what matters to you?” And then we prioritize and focus on those areas. Similarly, I didn't come up with SEIA’s policy priorities; it's not “what Abby Hopper thinks,” it’s what our members tell us is most important to them. Since you have such a high level view of what's going on around the country, what are some state markets that might not necessarily be in the news a lot, but where solar has made significant strides or where solar policies are being advanced that we might want to keep tabs on? As we look at the country, the Midwest is a fast emerging market—Illinois, Michigan, Minnesota, Wisconsin, are all states that are, to one degree or another, grappling with solar and putting policies in place to help advance solar. (With the exception of Michigan, which just had a bad decision out of the Public Service Commission). The Southeast is another emerging area. In the regulated markets down there, those Public Service Commissions have really been leading the way on requiring solar for their utilities. Once that initial step was taken, it’s obviously taken off. That's been exciting to watch. I would say those are the two regions, with specific focus on the states that I mentioned and places like Georgia and South Carolina. My next two questions touch upon one of the priorities that you highlighted when you took the helm of SEIA: ensuring inclusivity in solar both in terms of customers and the solar workforce. First, what are some examples of successful strategies you've observed for making solar more accessible to groups that have traditionally had a difficult time accessing it (low income communities, renters, apartment residents, etc.)? One is that, as we think about state policies or state programs to incentivize solar, there needs to be a low income element to it. For instance, if it's a grant program or some kind of rebate program, there should be funds dedicated to low income members of the community. Community solar, I don’t have to tell you guys, is incredibly impactful and allows so many people to have access to solar who wouldn't otherwise be able to benefit from it. Community solar has really taken off in the past year and it shows in the 2017 market growth numbers. It's very accessible to people; it’s a business model that intuitively makes sense—people can understand that you're basically buying a share in a solar farm. So I think community solar will continue to grow. Lastly, prices coming down has helped make solar even more accessible. I know that sounds obvious, but it’s making a big difference. At our board meeting recently, we had a speaker from Lawrence Berkeley National Labs, which recently published a report about the income levels of home solar adopters. In four states, the average income of solar adopters is on parity with average income in the state; it's right where it should be. Although there are more women in the workforce than even a few years ago, we still see, according to The Solar Foundation’s Solar Jobs Census, that women represent less than a third of solar industry employees. What do you see as some of the key steps the industry can take to achieve greater representation of women in the solar workforce? That’s a great question. It’s something I think about every day! It's not as simple as just getting more women into the solar workforce, right? There are lots of things we can do to achieve that. But it's more than that, it's about recruiting women, retaining them, and promoting them. The job is not done on day one. After that, it becomes about: How do we make sure that women are staying? How do we create work workplaces where they feel included, feel valued, feel heard? And, how do we create opportunities to promote them, so that those of us in leadership are not all by ourselves? There needs to be an intention to do it. It's not going to happen organically; I think you have to devote time, energy, and resources to making it happen. Where and how are you recruiting new employees? What kind of education are you providing? Once they're in the door, it’s about understanding what your workforce needs—there may or may not be different needs and different opportunities. Are there examples of women in leadership? And if there aren’t examples of [female] leadership in your organization, where can women in your organization find other examples of leadership? Where can they get mentoring? It doesn't have to be just women mentoring other women, but there have to be opportunities for professional growth in a way that's meaningful. Finally, you’ve gotta promote them! There are fully capable [women]. But if you don't look at your board, or your executive team, or your sales team, or your engineers with an eye towards diversity, you're not going to see it. I look at all of those things—“How diverse is my my executive team? How diverse is my board?” We don't get all A+s; SEIA has work to do, but we are doing it. We're being thoughtful and intentional about it, and trying to create a kind of place where women come, stay, and get promoted. And, I answered your question in terms of women, but these same things apply to people of color and other underrepresented groups of our community. And one of the things, in terms of getting people in the door, is expanding the network that you're trying to recruit from. People share job notices with people they know, and people usually know people that are very similar to them. So this means we need to be thinking about things like: Are we going to historically black universities and colleges? Are we in partnership with NAACP and can use some of their networks? Are we coordinating with the Latino Chamber of Commerce, and can we use that network? We need to think more broadly than we sometimes normally do to make sure that we get [diverse] candidates in the door. ### Three Solar Industry Contests Driving Innovation One of the things we love about working in the solar industry is that our community is constantly pushing forward with practical innovations that help make the energy system cleaner and more sustainable. Innovation has been a cornerstone of the solar industry’s successes to date. Take, for example, the gradual improvements in product and process that have contributed to the cost of solar falling more than 70% since 2010. We take the need for innovation seriously here at Aurora—from pioneering accurate remote shading analysis and solar design to rethinking the process of creating a 3D site model—so we’re excited to see a number of competition programs encouraging the development and implementation of new clean energy ideas. Whether you’re a solar installer (residential, C&I, or utility-scale), manufacturer, aspiring entrepreneur or inventor, there’s something for everyone in these three contests. 1. Solar Builder’s Project of the Year Solar Builder magazine’s Project of the Year contest, which honors noteworthy solar projects large and small, is a great way to share unique and innovative projects your company has developed. With four project categories—Residential, Commercial & Industrial, Utility-scale, and Solar + Storage—eligible projects can take a wide range of forms. They just need to have been completed between October 1, 2017 and July 31, 2018 and demonstrate some form of significance. This could range from technological innovation, impressive design, valuable community impacts, or other notable characteristics. Winners will be selected by popular vote so this is a prime opportunity to drive support through your network of happy customers and your social media channels! There will also be an Editor’s Choice award. Submissions are due by August 31, and can be completed here. Winning projects will be profiled in Solar Builder magazine’s end-of-year issue and on its website. Photo credit: Solar Builder. 2. The U.S. Department of Energy’s American-Made Solar Prize competition Things have been tumultuous recently for our friends in the solar manufacturing sector, whose products, from modules to inverters, make possible the great successes our industry has achieved. So it’s great to see a new competition from the Department of Energy (DOE) offering support to U.S. manufacturers to innovate new products. The contest is structured in three progressive prize rounds (the “Ready! Set! Go!” contests) that seek to encourage the development of new U.S.-made solar products. $3 million in funding from the Office of Energy Efficiency and Renewable Energy will be disbursed through the competition in the following contests: “Ready!”—selects 20-40 winners who have identified an impactful idea or solution addressing a critical need in the solar industry to receive a $50,000 prize. “Set!”—selects 5-10 winners, who substantially advance their technology solution toward a viable and promising proof of concept, to receive up to $200,000 prize and up to $75,000 in vouchers that can be used at national laboratories and other facilities to develop, test, and validate. “Go!”—selects up to two winners who produce a prototype and find a testing partner. Winners receive a $500,000 prize and up to $75,000 in vouchers. Submissions are due October 5. Photo credit: DOE American-Made Solar Prize. 3. Open Innovability contests from Enel in partnership with Innocentive Multinational energy corporation Enel is releasing 50 challenges related to energy, in partnership with crowd-sourcing company Innocentive. Anyone with “any idea, project, business solution or patent” that helps solve one of the challenges is encouraged to submit it for consideration. Competitors who submit winning concepts will have the opportunity to work with Enel to develop and implement the ideas (in addition to receiving cash prizes in some cases). The contests span a wide range of energy-related topics, but we’ve combed through them to highlight a few we think are particularly relevant to solar professionals: Technologies for renewable generation—ideas for improving of existing renewable energy technologies, better integration of renewable power in human environments, and the use of new renewable resources. Clear the way for clean energy—ideas for advancing universal access to affordable, reliable and modern energy services, with a specific focus on energy efficiency and renewable production. Energy for those in need—ideas for meeting the basic energy needs of those in energy poverty, including new technologies, revival of ancient low-cost techniques and knowledge, as well as services that increase the energy resilience of communities. Energy Storage Systems: technologies to minimize costs & maximize profitability—new technologies, architectures, and control strategies to lower energy storage costs and to improve the way they are are built, operated and maintained to maximize profitability. Turning the tide on climate change—new (practical or theoretical) ideas for tackling the adverse effects of climate change. While the deadlines vary for each challenge, those highlighted above have deadlines either on December 31, 2018 or are continuously open.  Photo credit: Enel Open Innovability contest.  There you have it—three programs that offer publicity, financial support, and/or technical support for creative new clean energy ideas. Get brainstorming! P.S. Are there other opportunities you think your solar friends and colleagues should know about? We hope you’ll share them in the comments below! :) ### How a Shift in Chinese Solar Policy Is Shaking Up the Industry It can be easy to see the solar industry through the lens of your local market. But we periodically get powerful reminders of the fact that global market forces have huge sway over our industry. One of the biggest recent reminders was the U.S. government decision to impose tariffs on foreign-made solar panels in an effort to protect domestic manufacturers from an influx of cheap Chinese solar panels. Now, major policy changes in China are making waves in solar markets around the world—including here in the U.S., where they may counteract the impacts of the tariffs. Today, we explain solar policy changes the Chinese government announced in June 2018, why they are significant to U.S. and global markets, and how they are expected to impact different industry sectors. How Are China’s Solar Policies Changing? On June 1, the Chinese government announced policies that effectively halt the development of new utility-scale and distributed solar projects around the country and scale back incentives for solar. These policy changes could reduce the solar capacity installed in China this year by as much as 40% (20 gigawatts) according to GTM Research. Specifically, the National Development and Reform Commission, Ministry of Finance, and National Energy Administration jointly issued a statement outlining the following policy changes: No new utility-scale solar plants will be approved in 2018. The previous target of 13.9 GW of utility-scale solar (compared to 34 GW installed last year) has been abolished. Distributed solar projects are capped at 10GW for 2018 (compared to 19GW last year); analysts say this cap has already been reached for the year, so this is effectively a halt to distributed solar (e.g., rooftop) development as well. Feed-in tariffs for solar generation are now reduced by 0.05 yuan per kilowatt hour (a 6.7 - 9% reduction depending on the region). These changes are the most significant scale-backs of government support for solar in China to date. They are intended to reduce a deficit of $15.6 billion in the country’s state-run renewable energy fund. What Do These Changes Mean? China leads the world in solar installations, accounting for approximately 54% of global PV installations in 2017. GTM Research reports that this reduction in demand from China could lead to the first contraction in global PV demand since 2000. Additionally, this sudden evaporation of China’s massive pipeline of projects is expected to lead to a significant oversupply of modules in the global market. Roth Capital estimates an oversupply of 34 GW! This oversupply will theoretically lead to a significant drop in solar module costs. Bloomberg New Energy Finance (BNEF) has predicted that module costs will fall 34%. These cost reductions are comparable to what was seen in 2016, when the U.S. solar market experienced its greatest growth on record. BNEF estimates that module costs will fall to $0.24/watt by the end of the year—compared to $0.37/watt at the end of 2017. Installers and Developers See Relief, Manufacturers Feel the Burn The expected reductions in module cost are welcome news for solar installers and project developers. The U.S. government’s decision in January to impose 30% tariffs on imported crystalline silicon solar panels has caused pain for these sectors, where higher costs changed the economics of projects and led to cancellations, particularly in the utility-scale sector. Although the full impact of these unexpected Chinese policy changes is still uncertain, if module costs fall as much as anticipated then the price impacts of U.S. tariffs may be at least partially counteracted. In the short-term, BNEF predicts uncertainty and the suspension of some installations as developers wait to for updated prices. Longer-term, however the outlook for solar growth is optimistic. In an Op-Ed for PV Magazine, Tony Clifford of Standard Solar predicts that “the solar industry in the United States could quickly return to its full strength,” observing that even under conservative estimates prices will be “much lower than where they are today and even where they were two years ago, during solar’s greatest growth year ever.” On the flip side, these developments will put greater pressure on manufacturers as they exacerbate the competition against cheap imported modules that tariff proponents originally sought to alleviate. Stocks of many module manufacturers dropped noticeably after the announcement. What About Global Impacts? Although China’s decision to halt solar development this year reduces global solar demand, the resulting price reductions from an oversupply of panels may help spur solar growth around the world. India, which pledged to double renewable energy to 175 GW by 2022, is expected to benefit from these lower solar prices, as are countries in Southeast Asia. Overall, by further driving down solar costs these changes are expected to help solar energy grow around the world and compete with fossil fuels. We’ll continue to follow these changes as they develop. ### NABCEP Leaders Discuss Solar Credentials and Industry Trends If you work in the solar industry, chances are you’ve heard of NABCEP—the North American Board of Certified Energy Practitioners. NABCEP is a nonprofit professional certification board and credentialing organization that offers some of the most widely recognized and respected certifications for solar professionals. It seeks to promote consumer confidence and quality assurance by guaranteeing that certified practitioners have met minimum levels of education and experience, passed a rigorous competency exam, and abide by a code of ethics. Earlier this year, Aurora’s Co-founder and COO, Samuel Adeyemo, had the pleasure of talking with NABCEP Executive Director Shawn O’Brien and members of his team at the 2018 NABCEP Continuing Education Conference in Niagara Falls, New York. The interview explored the role of NABCEP, how their programs are changing, recent solar industry developments, and more. We’re excited to share that conversation with you today. NABCEP Executive Director Shawn O'Brien [Note: This interview has been edited for brevity and clarity.] How do you envision NABCEP certification impacting the evolution of the solar industry? Shawn O’Brien, NABCEP Executive Director: I see NABCEP helping to ensure that the quality of solar installations and the maintenance of systems continues to improve. That includes helping to ensure people have quality experiences with the solar industry from point A to point Z, from a homeowner’s first interaction with a salesperson to the completion of their installation. I also see NABCEP helping to improve safety in the solar industry by making sure that those doing the work—installing, maintaining, etc.—have some type of credential that confirms they know what they're doing and can do it in a safe and effective way. We would also like to make our certifications available internationally. We want our programs to be able to help communities beyond North America. This is something we started back in November and December of 2017 with the expansion of our PV Associate program. We now have approved trainers in Saudi Arabia and India, and are working with folks in Dubai and Jordan for our company accreditation program. Finally, a major vision for our work is to really enhance career development for professionals in the industry. I like that being a solar installer is not just a role anymore, it's an occupation, a career path for individuals working in the industry. We're very interested in helping them along that career path and advancing their journey. For those unfamiliar with NABCEP’s credential programs, can you talk a little about how your programs are designed? Shawn O’Brien: Something to note about NABCEP’s certifications is that NABCEP doesn't prescribe the requirements. We look to subject matter experts, members of the profession, to tell us what they're doing in their work and how important certain skill sets are for a given role. To evaluate this, we use what we call a Job Task Analysis. It's a tried and true way of identifying the competencies needed to do a job. We send that out to the profession with a list of skills and say, “How important is it that someone who's going to be, for instance, a PV Technical Sales Professional, can do this skill and how critical is it that they do it right?” We analyze all of the data we get back, and based on that we design our certification programs to test for the skill sets that are needed. What is some feedback you've received about how NABCEP certification benefits solar professionals? Dan Pickel, NABCEP Program Manager: We require quite a bit of training. One of the main themes we hear in our conversations with solar professionals who pursue our certifications is that a lot of times they go into the process thinking that they already know everything they need to know based on their experience in the industry. However, in talking to them after they complete the training and certification exam, they report that they really come out knowing more, being more versatile in the field, and having a broader sense of PV installation work. Even people who fail the exam often report that they've learned and grown a lot from the process. It's a tough exam; we want to make sure that if someone passes this exam they really have the necessary knowledge and can translate that knowledge into skills in the field. What are some interesting recent developments NABCEP has observed in the solar industry; how are those developments impacting NABCEP’s programs? Dan Pickel: One of the things we’ve noticed is that there has been more specialization within the industry in recent years. Solar professionals tended to have a lot of diverse skills. There were more jack-of-all-trades roles at smaller mom-and-pop installation companies, where they did everything from A to Z—running the company, doing installations, maintenance, etc. But as the industry has grown, we've realized that specialization has become more common. As a result, NABCEP has developed some new certifications. We now have PV Design Specialist, PV Installer Specialist, and Commissioning & Maintenance Specialist certifications. These three specialty certifications were developed with the input of subject matter experts using our Job Task Analysis approach. We believe these specialty certifications will offer a lot of value to solar professionals as a way to advance their careers, whether they are looking for a bump in their salary, to transition into a more senior role, or to open their own firm. Shawn O’Brien: More broadly, two of the major industry trends we’re seeing are increased focus on Operations and Maintenance (O&M) and energy storage. The O&M part we have addressed through our new Commissioning & Maintenance Specialist certification that Dan mentioned. Energy storage, and whether there is a need for a specialist certification in that area, is something NABCEP will be exploring this year and in early 2019.   ### How to Optimize Your Solar Sales with Proposal Templates You know it’s critical that your solar sales proposals are compelling. After all, they are the tangible communication of why a customer should choose your company to install their solar system. But it’s not enough just to know what makes a proposal effective—you also need an efficient process for developing them. With a nimble proposal creation process, you’ll have more time for talking to customers and other aspects of your day-to-day work. Templates are an indispensable tool for streamlining your proposal development process. By standardizing certain elements of your proposals, templates make it easy to ensure your proposals are professional and consistent. In today’s article, we share some of the ways you can use templates to make creating the perfect proposal a seamless process. Aurora’s proposal tools make it easy for companies to create beautiful and flexible templates, and in this post we’ll highlight some of the ways Aurora customers can get the most out of those features. Even if you’re not an Aurora customer, however, incorporating these strategies in your proposal templates—in whatever program you use—can help you put your best foot forward without reinventing the wheel every time you prepare a quote for a prospective client. [Note: Changes to company proposal templates in Aurora need to be implemented by the administrator of your account. We recommend each company take a little time to set up their proposal templates since it will save time on every solar sale.] 1. Standardize company branding Sales proposals are a key way that your company presents itself to prospective customers. As such, you want to make sure that all of the visual elements of your solar company’s brand—like fonts, colors, and your logo—are consistent with your company's image elsewhere (website, ads, brochures, etc.). Standardizing these elements in your solar sales proposal templates will save you and your team time by eliminating the need to make manual adjustments. (A few minutes for each proposal can really add up!) It will also ensure that errors and inconsistencies aren’t introduced. Aurora users can customize elements of company branding like colors and logo. For an overview of how to do this, see Configuring Your Account in our Help Center.  2. Standardize the information included in your proposals In the process of talking with customers, chances are you’ve learned a lot about what information to include in your proposals based on customer priorities and the kinds of questions you often receive. Using templates to standardize the details included in each proposal, and the format that information is presented in, ensures that your proposals always meet your standards. Additionally, your template should ideally be set up so that it easily pulls in all of the information you’ve already prepared, such as design and financing details. Aurora has made this easy by providing a plethora of different placeholders to fit each company’s needs—from cash flow charts to lists of components to desired images. One of the best things about these placeholders is that they automatically populate with the relevant information about your design, such as 2D and 3D images of the system and financing information based on the different scenarios you’ve modeled. Aurora provides a wide array of placeholders that can be added to proposal templates. Each of these fields will automatically pull in the relevant information from your solar project. For a detailed overview of how to customize proposals with desired placeholders in Aurora, see our Help Center.  3. Don't start from scratch While you want your templates to be tailored to your processes and brand, that doesn’t mean you have to start from scratch when creating them. In Aurora, we provide several proposal templates created by professional designers which you can copy and modify as needed. That could mean adding additional pages with other information, replacing images (including background images), or customizing the language. Similarly, if you’re using another tool for creating proposals, you may want to draw from existing company materials when creating your proposal template, such as using imagery from brochures or pulling in your company’s origin story from your website. Not only will this save time, it will also help you maintain consistency in your communications. Aurora users can utilize several customizable proposal templates created by professional designers (cover of one shown above). Even if you're not using Aurora, chances are you have existing company materials that can make creating a proposal template easier. 4. Bonus: Create a variety of templates to suit different customer priorities Having one template is a great start, since it will save time for your team members every time they put together a quote. However, an effective proposal should highlight the details that a customer cares about. That means, depending on the client, you may want to focus on different aspects of the proposed system. For instance, you might want to devote more of the proposal to explaining different financing options if you know a particular customer is very focused on that. Or, you could have a proposal with more detail on the components you'll use and why if a client is especially interested in the technology used in their system. You can take your proposal creation to the next level by creating a couple of templates for different scenarios, giving your team the flexibility to quickly create the perfect proposal for every solar sales lead. As the solar industry becomes more competitive, it's important to put in place processes that allow you to achieve the same results with less time and effort. Fortunately, there are a lot of technologies that can help—from saving truck rolls by using remote site assessment software, to automating the PV design process, to proposal generation tools. The use of flexible proposal templates, especially if they pre-populate with information about your project design, is another valuable tool for streamlining your solar sales process and bolstering your bottom line. ### The Path to a Solar-Powered Future: An Interview with Varun Sivaram When it comes to understanding what it will take for solar to provide a greater share of our energy, Taming the Sun author Dr. Varun Sivaram has a wealth of practical expertise—from serving as a strategic advisor on New York state’s Reforming the Energy Vision process to advising Los Angeles mayor Antonio Villaraigosa on the city’s energy and water policy. Currently the Philip D. Reed fellow for science and technology at the Council on Foreign Relations (among a host of other roles! ), Sivaram has been named one of Forbes’ 30 under 30 in Law and Policy and one of the top 50 leaders in sustainability by Grist. He holds a Ph.D. in condensed matter physics from Oxford University, where he worked on developing advanced solar cell technologies. In his recently published book, Taming the Sun: Innovations to Harness Solar Energy and Power the Planet , Sivaram paints two disparate futures for the world. In one, the growth of solar stalls and society remains deeply dependent on fossil fuels, resulting in drastic negative impacts from climate change and air pollution. In the other, the worst impacts of climate change are avoided through the successful transition to an energy system powered by solar and other carbon-free energy sources. Despite the impressive growth of solar in the last decade, Sivaram argues that without innovation to address certain barriers, solar energy could sputter out long before it can provide a significant portion of the world’s energy—much like nuclear, once hailed as the energy of the future but in decline today. We sat down with Varun Sivaram to discuss some of the challenges identified in his book that the industry will need to overcome for solar to become a leading energy source. Varun Sivaram , the Philip D. Reed fellow for science and technology at the Council on Foreign Relations. The challenges solar has faced to get to where it is today are very different from the challenges it will need to surmount in the coming decades. How can the solar industry balance policy advocacy for its current needs with a longer-term perspective on what will be needed for solar to become a mainstream energy source? If the solar industry only narrowly advocates for its present day interests, we could see the clean energy transition stall and solar could be hurt a decade down the road. So this is an important question—how do you balance short-term advocacy with long-term prudence? The solar industry needs to be thinking about what it’s going to need to survive 10 years down the line. That means you really want to support the extension of grids. The larger your grid, the easier it is to integrate large amounts of renewable energy. A larger grid can connect areas with high renewable resources with areas of high demand and enables you to smooth out volatile supply and volatile demand. The industry should also support a diverse generation mix. Flexible generators—natural gas, demand response, batteries, even nuclear—that can ramp up and down on demand will be important to accommodate fluctuations in solar energy. You want to support the most flexible electricity system you can. That includes advocating for policies that encourage energy storage. The industry should also step away from policies like the Investment Tax Credit. Though helpful in the near term, the ITC could turn into a political lightning rod. It is not in the interest of solar to be a politicized industry; it should be what it really is, an industry for all Americans. Solar is an important employment driver in this country, and a source of affordable, clean energy. That benefits every person, Republican or Democrat. Supporting a carbon price and pushing for greater technology innovation will also be valuable to the long-term success of the industry, as I discuss in the book. While the hard costs of solar installations have fallen significantly over time due to reductions in the cost of hardware components, soft costs—such as labor and installation costs—have remained high. What role can software can play in addressing this challenge? Software will be super important. It's going to take both hard and soft cost reductions for the cost of a solar installation to stay below the value it delivers even as the value of solar energy erodes as more solar is added to the grid. The module cost of solar is now a minority of the total system installed cost. Whether it streamlines the design process, optimizes system design to maximize production, simplifies permitting, or improves the sales process and reduces customer acquisition costs—as Aurora does for its clients—or other functions, software is going to be important for the solar industry as a whole. The work Aurora does is going to be essential to enabling low cost solar systems that help to sustain solar's rise. A challenge you discuss in your book is the need to enable greater private capital deployment in renewable energy. One method you highlight is securitization—or creating portfolios of projects, as is currently done with car loans and mortgages. What is needed to help facilitate this approach on a larger scale? One of the imperatives is to increase the availability of data. Two important data needs to exist—energy production data and credit data. First, you need data on system production: both data on historical system performance, and predictive data—the ability to simulate how a system will perform and be confident that it will provide a certain amount of energy. I'm excited about the work being done in the industry to compile production data from hundreds of thousands of installed solar projects, demonstrating that solar plants produce energy at the levels that models predict. That enables project developers to raise much cheaper debt financing. Predictive energy production data, as is provided by Aurora’s performance simulations, will be very valuable as well. Second, for distributed solar, you need data on the likelihood of customers to continually make their lease payments or loan payments. It’s going to be really important for distributed solar to assemble databases and other tools to determine how likely someone is to pay their loan or lease. Credit data remains the biggest need. Through the creation of green banks, some states have been very successful at using limited public funds to increase private sector investment in clean energy. What are your thoughts on the role of these institutions as vehicles for increasing investment in clean energy? You’re absolutely right that a green bank can be an effective tool to mobilize a lot of private capital with limited public resources by proving that the public entity is willing to co-invest in clean energy, partially de-risking that investment. Over time, green banks basically put themselves out of business because they turn investments that once looked risky into de-risked investments that the private sector will invest in by themselves. Connecticut and New York provide examples of very successful green banks. Now, New York is doing something even more exciting in my opinion: New York has raised private money—not from ratepayers or the government—which it can deploy not just in New York but outside as well. This means New York can help other states setup green bank front offices, increasing access to financing for clean energy projects across the nation. States that want to have a green bank can now set up a very capital-light, asset-light front office, with a couple staff to help originate deals. New York's capital and back office operations will be used to co-invest in clean energy projects with private investors. Now, basically any state can have a green bank; I think that's a super exciting way for us to scale the successes of NY Green Bank across the country. The challenges you highlight are daunting. What are some things that make you hopeful we can overcome them and achieve a sustainable future? Two things make me hopeful. The first is just how remarkable solar's last decade has been. A decade ago, if you had said solar would be the fastest growing, cheapest power source on the planet in 2018, no one would believe you—I wouldn't have believed it! It gives me a lot of hope that solar has come this far; I think we can match or even beat the transformation we've seen over the last decade. Second, I'm inspired because the ideas I discuss in my book are not science fiction, they're grounded in reality. They are grounded in technologies I’ve seen in the lab and even worked on, and in pilot scale demonstrations. The examples you’ll find in the book give me hope because the solutions are already in progress, we just need to invest the resources to make them a reality on a large scale. That's what excites me. P.S. Our interview covered a lot more than we could fit in one article. Want to learn more about the systemic and technological needs for solar to advance? Download our bonus article with additional insights from Varun Sivaram! By submitting your contact information you will be added to our blog subscriber list, which provides weekly updates on our latest articles. We will never sell or share your information and you may unsubscribe at any time. Please note that the views expressed in our Solar Spotlight interviews are those of the interviewee, and do not necessarily reflect the views of Aurora Solar. ### Changing Change Orders: Tackling Solar’s Dirty Little Secret Regular readers of this blog will know that we recently launched an integration with Nearmap, a provider of high definition aerial imagery. Integrating with Nearmap offers many benefits to solar installers, including allowing them to accurately design PV systems and to impress their clients with the crisp imagery in their proposal. As Nearmap CEO Dr. Rob Newman mentioned in a recent blog article, Nearmap “capture[s] the truth on the ground… [with] camera systems in planes flying over approximately 400 cities in the U.S. capturing highly accurate aerial imagery.” As excited as the industry has been about the sales benefits of high quality imagery, little attention has been paid to the economic impact of its potential for reducing change orders.  A change order is defined as “a written order from the owner, architect, engineer, or other authorized person to depart from previously agreed upon plans and specifications for construction.” In tangible terms, a change order can range from moving modules from one part of the roof to another because the customer had a change of heart, to realizing that you cannot fit as many modules on the roof as you wanted to due to obstructions you could not see on the roof. For a term that is commonly used in the industry, there is precious little research that has gone towards quantifying the effect of change orders. A search of NREL’s website and database of publications does no more than acknowledge they exist and are important to manage, while looking through the archive of solar industry publications fails to unveil any research. Given that change orders are largely within the control of the solar installer, could it be that the solar community is unwilling to acknowledge that some of our own processes are the biggest impediment to our own success? If so, it is time to talk about the industry’s dirty little secret if we are to have a hope of changing things. To help us assess the significance of change orders, we conducted a simple poll of solar professionals who attended a recent Aurora webinar, which yielded responses from 107 individuals. The job functions of the survey group ranged from designers to salespeople and from c-level suite executives to entry-level employees. As we suspected, change orders are pervasive in the industry. Of 76 individuals who responded to our question about how prevalent change orders are at their companies, 47% reported that change orders impact between 10 and 30% of their projects. Nearly 7% of respondents indicated that change orders are needed for over half of their projects. What about the financial impact of change orders? It is important to note that not all change orders are created equal. Pey Shadzi, Operations Manager at Cosmic Solar, a family owned installation company in Southern California, explains that “a change order can range from a major redesign of the installation after the deal has gone into contract to a slight modification as the customer is evaluating different options.” Shadzi notes that, for Cosmic Solar, change orders typically involve only minor changes such as slight adjustments based on customer input. To help account for the range of change order types, we looked at how much a change order costs. We assumed that a smaller modification would cost very little, whereas a significant redesign could run thousands of dollars. While the greatest number of respondents (34%) indicated that their change orders cost on average less than $250, a similar number (31%) indicated that change orders can cost up to $750. Twenty-one percent of respondents reported that their average change orders cost between $750 and $1250. Thirteen percent reported change orders costing as much as $1750. A weighted average1 generated from these results yielded an average change order cost of $583. A lot of change orders are not within the installer’s control. Anecdotally, a customer changing their mind is a frequent cause of change orders. However, there are a lot of factors that the installer can control. Victor Ionin, a customer success specialist with Aurora, notes that many change orders result from a solar designer missing something about the site. In our survey results we found that 88% of solar installers perform some degree of remote system design—meaning that they use some form of imagery in the development of their proposed solar PV system. It stands to reason that the more accurately that imagery communicates the conditions of the project site, the less likely they will have to change the design in the future. This is where HD imagery comes into play; being able to get accurate measurements ensures that you will not over or underestimate the number of solar panels that can fit on a client’s roof. Crisp imagery allows Aurora’s computer vision algorithms to more accurately detect all the obstructions on a roof. Again, this allows solar installers to accurately forecast how many modules will fit on their roof, helping to reduce change orders. Pey Shadzi remarks that using Aurora design software helps Cosmic Solar minimize the occurrence of change orders “because it allows us to measure the roofs with more accuracy. This allows us get our customers’ systems up-and-running sooner than if we had to make a change.” 1. Because respondents answers provided a range of costs that their change orders typically fall within, rather than exact costs, the weighted average was generated by randomly generating specific values for each respondent within the cost range they had specified. These values provided a basis from which to create a weighted average.↩ ### How Net Metering Is Evolving: Three Changes You Need to Know Net metering (also called Net Energy Metering or NEM)—which allows solar customers to sell excess solar energy back to the grid to reduce their bills—is a crucial policy for going solar in the U.S.  Without it, solar adoption would not be as widespread as it is today. However, in some areas, the proliferation of distributed solar has lead to an excess of solar energy being sent to the grid in the middle of the day, which is changing the economics of energy production. As utilities and grid operators grapple with distributed grid, they are introducing a number of changes and reductions to the availability of net metering. In today’s article, we explain the variety of ways that net metering is changing around the U.S. so you can accurately predict your customers’ savings and explain how billing from their local utility will work after they install solar. How Traditional Net Metering Works Under traditional net metering, customers are only billed for their net consumption over a billing cycle, meaning that any energy they consume from the utility can later be offset by energy production from their solar installation. As a result, even though a customer’s solar installation only makes power for them during the day, they can use excess energy production during the day to cancel out their nighttime usage and drop their electric bill down to nearly zero. In this most basic form of net metering, the electricity sold to the grid is valued at an equal rate to electricity bought from the grid. Second, the utility bill is entirely comprised of energy charges; the amount the customer is billed for is directly connected to their energy usage alone and, importantly, those charges can be offset by solar production. In this scenario, there are no fixed energy charges (charges which cannot be offset, and which may or may not correspond to the amount of energy used). Finally, credits from excess solar generation can be applied to future months indefinitely. How Is Solar Net Metering  Changing? Changes to net metering policies fall into three general categories: 1) changes to how long excess generation credits can be carried forward and applied to future energy charges, 2) the application of fixed energy charges which cannot be offset with solar energy credits, and 3) changes to the value of electricity sold to the grid from a solar installation compared to the value of electricity bought from the grid. Credit Expiration: Some utilities specify annual credit expiration. The billing year may end on a specific date or be based on when the system was installed. During the one year billing period, a customer’s excess generation credits can be applied to future months. At the end of a customer’s annual period, any excess credits are lost. Customers may receive a small compensation based on the wholesale rate of electricity for their excess generation. A handful of jurisdictions have taken further steps, with monthly credit expiration. Customers in these programs lose excess credits at the end of each month and receive wholesale compensation. Fixed Charges: Most utilities have fixed or minimum bills for customers. These are tabulated separately from energy charges and in many cases can’t be offset by excess solar production. Some utilities, including the three largest in California, specify a portion of the electricity rate as non-bypassable. This means that the customer is always charged for a portion of the energy they buy from the grid, regardless of whether they produce enough solar energy to offset it at a future time. Value of Electricity: Some utilities specify a reduced value for electricity sold to the grid, devaluing the energy production from the PV system. This is usually specified as a percentage reduction - the utility might credit the customer only 85% of the value of an equivalent amount of kWh bought from the grid. Some utilities specify a lower, fixed value for electricity sold to the grid; this means that regardless of the customer’s current tier or the time of use (TOU) period, the customer receives a specified fixed rate for their exports. In the next section we discuss each of these utility bill schemes in greater depth. Net Metering Credit Expiration Annual Credit Expiration and Net Surplus Compensation Annual credit expiration rules are common but weren’t a component of original net metering policies. In pure net metering, a customer can pass excess kWh or dollar credits to future months indefinitely—but with an annual credit expiration or “true-up,” any excess credits are expired annually. Customers usually receive some sort of compensation for excess electricity generated, often called “Net Surplus Compensation,” which reflects the cost savings for the utility company for those kWh. This is usually a small compensation, around $0.03 - $0.05 per kWh. Most utilities have a credit expiration time at the end of December or March. When credits are expired in March that means the customer can build up a “bank” of credits during the summer months when PV systems produce more energy. As a result of annual credit expiration, most installers will typically aim to just offset the customer’s bill; any excess production beyond that would result in little benefit to the customer.  Monthly Credit Expiration A more extreme version of credit expiration involves netting out and compensating excess kWh at the wholesale rate on a monthly basis. This is substantially less favorable to the customer, since they can’t bank excess credits during the summer to apply to winter months. Fixed Charges Minimum and Fixed Bills Fixed and minimum utility bills are a common portion of many utility rates. Simply put, a customer may have a fixed charge added on top of their charges for electricity. Alternatively, if their charges are below a certain level, they still have to pay a minimum connection amount (minimum bill). Many net metering policies specify that fixed charges and minimum charges can’t be offset with excess solar PV production or with excess production credits from previous months. This means that many solar customers will still have a $10-$20 monthly charge from the utility even if they have no electric charge or even receive credits. Non-bypassable Charges Non-bypassable charges, introduced in California’s NEM 2.0 policies, are a portion of the utility rate that is designated as irreversible. When a customer purchases electricity from the grid, some of it is designated as an energy charge, which can be offset by future energy credits, and another portion is set aside as non-bypassable meaning that those charges can’t be reversed. These charges can pile up; solar customers with non-bypassable charges will see monthly bills often ranging from $10-$35 higher than they otherwise would have. Reduced Rates for Solar Energy Production Reduced Value Exports This variation of net metering reduces the dollar value of electricity sold to the grid by the customer. This means that if a customer sells solar energy to the grid, they only receive 90%, 80%, or as low as 60% of what they pay the utility for the same amount of electricity. Most utilities that have a reduced-export policy phase it in over different tiers, based on when the customer signs up or has an approved application. Tiers fill up once a certain amount of distributed generation capacity has been added to the grid. New York’s VDER compensates solar production at roughly 100%, 95%, and 90% of the retail value of electricity across its 3 tiers. Nevada’s NMR-405 policy has four tiers at 95%, 88%, 81%, and 75% of the retail value respectively. Massachusetts has a harder cap; once the first cap is reached, future projects receive 60% of the regular credit value. Many of these rates are also tied to a 20-year limit for this credit policy. Flat Export Rates Net metering with a flat export rule is another adjustment that typically reduces the value of electricity exported to the grid. In this case, when the customer buys energy from the grid the price of electricity is based on their regular rate schedule, including time of use and tiered policies. Under these rate structures the cost of electricity from the utility varies depending on when it is consumed or how much total energy the customer uses, respectively. However, when these solar customers sell energy to the grid, the price they are paid for that electricity is set at a specified, non-variable rate depending on their net metering policy. PacifiCorp in Utah specifies a flat rate for customers. The rate for purchasing electricity is a tiered rate that varies based on the customer’s usage level, but is around $0.09/kWh for residential customers and $0.06/kWh for commercial customers. The residential rate is close to the lower tier of the regular retail rate, but is lower than the second tier. Some utilities only offer the avoided cost rate of electricity, perhaps $0.03-$0.05/kWh. Zero Export Zero export rules are the most extreme revision, or in this case elimination, of net metering policies. Zero-export rules, or self-consumption rules, dictate that a customer cannot export electricity to the grid. The inverter shuts down the system when there is no more load to support. This is usually found in areas with high levels of distributed solar, such as Hawaii and Australia, where additional solar production may cause grid stability issues. Zero-export policies incentivise the usage of smaller systems and energy storage solutions. It should be noted that changes in each of these categories may be mixed and matched depending on the utility. For instance, a particular utility rate might include both annual credit expiration and reduced export rates. As solar and other forms of distributed renewable energy become a larger share of the electricity production in the U.S., these variations of net energy metering are likely to become more common. Further, as utilities continue to explore approaches to cover their operating costs and the costs of maintaining the electric grid, additional new rate structures for solar customers may emerge. However, understanding these core changes will give you a strong foundation for interpreting new utility billing options that your solar customers may encounter. For easy reference, get your free copy of our complete guide to net metering variations infographic (shown below)!  ### How HD Imagery Strengthens Solar Design: An Interview with Nearmap CEO Rob Newman Here at Aurora, we’re a bit obsessed with how technology can improve the work of solar installers. From reducing site visits through remote solar design to ensuring accurate energy production estimates, we’re all about tools to help solar businesses overcome barriers and lower costs. The foundation of any good solar design is some sort of georeferenced image. Whether it comes from satellites, drones, a new construction blueprint overlaid on a map, or a low-flying plane, Aurora’s solar design and sales process starts with imagery. That is why we are thrilled to announce a brand new partnership with Nearmap, a leading aerial imagery provider operating in the U.S., Australia, and New Zealand. Nearmap is the 2017 Award Winner of the Esri Partner Conference Best New Content Partner. In our unique configuration, Aurora customers can now access high-definition Nearmap images directly in our application by purchasing bundles or by linking Aurora with a Nearmap account. To highlight what this means for solar companies, we spoke with Dr. Rob Newman, CEO of Nearmap. Dr. Rob Newman, CEO of Nearmap. An engineer by training, Dr. Newman has a unique track record as a successful technology entrepreneur in both Australia and Silicon Valley. He founded two technology companies that successfully entered overseas markets with a combined market value of over $200M. Prior to joining Nearmap, Dr. Newman spent ten years as a venture capitalist, co-founding Stone Ridge Ventures, where he focused on identifying disruptive technologies with global potential. For those who aren’t familiar with Nearmap, what does Nearmap do and why are your services important for solar companies? What Nearmap does is capture the truth on the ground. So, what does that mean? We have camera systems in planes flying over approximately 400 cities in the U.S. capturing highly accurate aerial imagery. You can think of that aerial imagery as “satellite imagery on steroids.”  For a solar company, if you're developing a quote or planning an installation, the higher fidelity and clarity of the imagery you've got, the easier it is to determine things like what roof type it is, what obstructions are on the roof, and whether there are trees nearby. The clearer and more up-to-date the imagery, the better it is for the company doing the design.   Have you seen Nearmap’s imagery transform the work of solar companies? If so, can you share some insights into how? Yes, in fact a big part of our business in the U.S., about 20%, is with solar companies. The reason that they're using our imagery, combined with tools like Aurora, is that it really does transform their work. Often what we hear from solar companies is that they conduct several site visits in the process of quoting and planning a job. By having high-resolution, up-to-date aerial imagery you can remove many of those site visits.  One of the most powerful examples we’ve heard of how that is transformative for solar companies is that it improves the likelihood of winning business. Imagine, for example, that you're on the phone with a potential customer and they say they’re interested in a 5 kilowatt system. If you say, "I'll come out in three days to look at your roof," in the meantime, that customer may get cold feet and call another company. In contrast, if you've got high-resolution imagery in front of you, you can give them an accurate quote over the phone. Catching the customer at that first point of inquiry and having accurate imagery on hand really improves the likelihood you're going to win their business.    You mentioned that you can think of Nearmap as "satellite imagery on steroids." Can you share some of the features of Nearmap imagery you’re most proud of? When we talk about what differentiates Nearmap imagery, we highlight our "4 Cs": Clarity, Currency, Change, and Consistency. So what do those mean? Clarity is: “how clear is the imagery?” In terms of the amount of data you see around a particular site, Nearmap imagery is much clearer. That clarity makes a big difference, for instance, when installers are trying to figure out if there is a vent on the roof or if it’s just a shadow. The next one is how current the imagery is; we're flying very regularly over all the major cities in the U.S. That means if we offer imagery in your area, you've got an up-to-date image. [Editor’s note: In Aurora you can see the actual day of capture.] This frequency is also useful for seeing change over time. You can look back and see the site in different seasons with leaves on and leaves off. If there are features that are hard to see in one picture because of foliage, you can look at another picture to get the detail you need and see the change over time because we capture imagery multiple times per year.  Last is consistency. We always deliver our imagery at the same high-resolution. Other services out there have what one of my colleagues calls a "patchwork quilt." There is different imagery quality in different areas, whereas with Nearmap it’s always the same consistent quality.  Those 4 Cs all matter when you're relying on accurate imagery to develop your quotes and run your solar business. And here’s one more for you—cloud-based; Nearmap imagery is instantly accessible in the cloud.   With your extensive experience as a technology entrepreneur, what are the markers you look for when determining if a technology has the potential to transform an industry? How does that inform your perspective on Nearmap’s potential impacts for the solar industry? That's a really good question. A few years ago, when I was still a venture capitalist, I conducted a retrospective review of every investment or company I had ever been involved with and looked at all the factors that drove success.  I found that there are two factors that stand way above everything else: Does the product provide a times ten transformation for the customer? And, is the management team strong? Those two things determine, almost exclusively, the success of a company.  In terms of the times ten transformation, a lot of companies provide technology breakthroughs but if those breakthroughs aren't relevant to the customer then it doesn't matter. I'm always looking for that times ten value add for the customer’s workflow. In the case of Nearmap and Aurora, taking the quoting process from days down to hours and enabling greater accuracy—that's a transformation that makes a significant difference to our solar company customers. ### A Solar Design Challenge: Modeling San Francisco’s City Hall In our Solar Landmarks series, we explore solar designs for landmarks around the world—such as Buckingham Palace, the White House, and the home of Canada’s Governor General—all from the comfort of the Aurora office. For the past four years, that office has been in Palo Alto, but starting this week we are excited to have new offices in San Francisco that will give us room to grow as we work to bring you the most robust solar design and sales software in the industry. With that in mind, for this Landmark article, we decided to set our sights a little closer to our (new) home and use Aurora to model a solar design for San Francisco’s iconic City Hall.  San Francisco City Hall. This complex building gave us the chance to flex our 3D modeling skills using Aurora’s SmartRoof tool—and an opportunity to get familiar with some of the city’s efforts to advance clean energy and sustainability. About the Building Featuring an impressive dome, a grand staircase in the central hall, gilt exterior detailing, and white marble interiors, this beautiful building was part of an effort to showcase the rebirth of San Francisco after the Great Earthquake and Fire of 1906. It’s completion timed for the the start of the World's Fair of 1915. Today, City Hall showcases San Francisco achievement in a different way—with a 80 kW solar array that demonstrates local commitment to renewable energy and reducing greenhouse gas emissions. Views of the solar array on San Francisco City Hall. Photo credits: SFPUC, Robin Scheswohl (left), SFPUC (right). Source: 2015 Energy Benchmarking Report, San Francisco Municipal Buildings. Leadership by City Hall makes sense. San Francisco has set ambitious clean energy targets, with a goal of sourcing 50% of its electricity from renewable sources by 2020 (ten years earlier than the deadline for California’s equivalent target). Although power for municipal buildings comes from carbon-free hydropower, City Hall’s solar array contributes additional clean energy to the city’s energy mix. Determining City Hall’s Energy Consumption We began our design process by seeking to understand how much electricity City Hall uses. Sometimes, it takes a little detective work to find energy consumption data for our Solar Landmark articles since, unlike a typical solar customer, we don’t have their electricity bill data to plug into Aurora’s consumption portal. This time, our work was simplified, however, because San Francisco requires owners of non-residential buildings over 10,000 square feet to publish energy consumption data each year. The city publishes this data for municipal buildings in its annual Energy Benchmarking Report. Because City Hall’s solar array was installed in January 2015, we looked at the 2014 report for the building’s pre-solar energy consumption. The city reports this energy consumption data in the form of Energy Use Intensity (EUI) values in the units of kBtu/sq. ft. This normalized data makes it easier to compare the energy efficiency of buildings of different sizes, and provides a standardized benchmark to assess improvements over time. City Hall’s EUI in 2014 was 39.4 kBtu/sq. ft. and the square footage of the building is 516,484. This allowed us to determine that an electricity usage of 5.96 GWh per year (for our math, see notes at the end of the article ). While this is quite a lot of energy, the EUI values are in the normal range for commercial buildings. The city is working on increasing building energy efficiency to reduce the energy consumption of municipal buildings like this one (one goal of the annual benchmarking reports). All the more reason solar on City Hall is an exciting addition! Modeling the Building An accurate site model is the basis for designing an optimal solar array and modeling its energy production. To model this intricate building, we turned to one of Aurora’s resident solar design experts—Research Engineer Andrew Gong. A top-down 2D view of our Aurora model of San Francisco City Hall. Andrew used Aurora’s SmartRoof tool to create the building from a number of simpler parts as detailed below. SmartRoof seamlessly merges together component sections when they are dragged together, making it possible to create a precise design of even the most complicated buildings. (For more detail on the specific steps Andrew took, see the diagram below.)   An overview of the process of designing San Francisco City Hall in Aurora, by creating simpler component sections and merging them together with SmartRoof. From there, Andrew used Aurora’s Add Obstruction tool to account for the variety of vents, skylights, and other structural elements that pepper the roof, which would prevent placement of solar panels. While not tall enough to shade the roof, the rows of trees on three sides of the building were added for good measure. The result is an impressive 3D site model: A 3D model of San Francisco City Hall created in Aurora. Assessing the Roof As you can see in the site model, the large rotunda in the center of the roof makes placing solar panels in that area impractical, as do recessed areas to the left and right of the dome. However, two large flat areas of roof space on either side of the dome provide ample room for a solar array. As shown in the irradiance map produced by Aurora’s shading engine (below), while there is some shading from the rotunda, overall the roof has relatively high irradiance making it a good candidate for solar. As expected, the southern roof face—which was selected for the site’s current solar array—has slightly higher irradiance with solar access values of approximately 95% across much of the surface. Aurora’s shading engine determines irradiance levels with accuracy that is statistically equivalent to on-site shade measurements, according to analysis by NREL. About the System Design In most of our Solar Landmarks, we create theoretical solar designs for sites that lack them—but since City Hall already beat us to the punch, we decided to model the existing array as precisely as possible and then explore how much energy it produces. While we had limited data on the specifications of the installed design like the exact modules used, we were able to use a few pieces of information in combination with satellite imagery to create a design that closely matches the real system. The San Francisco Public Utilities Commission reports that it is an 80 kW system comprised of 230 panels. This allowed us to determine the approximate wattage of the panels (80,000 watts/230 panels= 347.8 watt panels). We also knew that the system used high-efficiency modules. Based on this, we input high-efficiency 345 W custom modules which are in the appropriate wattage range. We overlaid them on the roof over recent aerial imagery showing the installed panels and found them to be a match in size. A comparison of our solar design and aerial imagery the installed design on City Hall. From there, we used trial and error to find the correct spacing between each module and row of modules. We determined spacing of 1 inch between panels and 16 inches between each row matched the current design. We also estimated a tilt of 10 degrees based on close-up photos of the array. Finally, we placed 230 panels in the same configuration as the real design, using aerial imagery of the system as our guide. There you have it—San Francisco City Hall’s solar array: A 3D model of San Francisco City Hall with its solar array precisely recreated in Aurora. Analyzing System Performance With the design carefully recreated, we used Aurora’s Performance Simulation feature to model the expected energy production of the system, taking into account shade at each hour of the day as well as local weather data and the system configuration. Aurora predicts an annual energy production of 116,622 kWh. Aurora's simulation of monthly energy production of City Hall's solar array based on the system configuration, shading, and local weather data. Aurora also calculates energy production losses from a variety of different sources, which it presents in a system loss diagram like the one above for City Hall.   While this is only a tiny percentage of the building’s large annual energy consumption (about 0.2%), the array offsets the carbon equivalent of 13 homes' electricity use for one year or the consumption of 201 barrels of oil. The carbon savings are also comparable to the carbon sequestered by 102 acres of U.S. forests in one year. Of course, in this case, since City Hall is powered by clean hydropower, the system isn’t directly offsetting emissions, but by making hydropower that would have been consumed available to other buildings in San Francisco it is still offsetting other, less sustainable energy consumption further down the line. We’re excited to be starting a new chapter of our company in San Francisco and hope you’ve enjoyed this design in honor of our new city!    P.S. Is there a landmark you’d love to see a solar design for? Let us know in the comments below! Acknowledgements: Special thanks to Andrew Gong for making this article possible by creating the model of City Hall and for providing significant guidance on the system design and other details of the article. Notes on our methodology for calculating City Hall’s energy consumption: kBTU equals 1,000 BTU Conversion rate: To convert BTU to kWh multiply by 0.000293 39.4 kBtu/sf/yr *1000= 39400 BTU/sf/yr * 516,484 sf= 20,349,469,600 BTU/yr * 0.000293 kWh/BTU = 5,962,395 kWh per year = 5,962.39 MWh per year = 5.96 GWh per year ### 5 Ways to Grow Your Solar Business with Facebook The solar industry faces some unique challenges, which means effective marketing is more important than ever. Increased equipment costs caused by the recently imposed tariff, combined with fierce industry competition, makes snagging new customers increasingly difficult. Luckily, you can give your company an edge by using Facebook. You need a Facebook strategy that can produce results without requiring hours of your precious time. You can get these results by taking five simple steps on your Facebook page. 1. Interesting Posts Of course, you want to post, with permission, pictures of your happy clients and their homes and businesses. After all, you want to make sales and providing examples of your work is essential for a successful Facebook page. But constantly trying to sell something can turn off your followers. You need to work on posting fun and interesting material as well. It shouldn't be puppies and kittens all the time, but give your followers links to local stories and don't be afraid to provide a little (non-offensive) humor. Your Facebook page should be entertaining as well as informative. 2. Getting Likes Following the first step makes this step much easier. When someone likes your Facebook content, it means they are actively engaged, which is your goal. If people skim and leave, you have probably had little or no effect on them. Even likes on those puppy posts can help create a positive impression in the minds of potential clients. Invite people to like your content. Respond to their likes by posting more of the same type of content. Likes equal potential sales. 3. Facebook Contests One way to increase your Facebook likes is to hold a Facebook contest, which is easy to do. You can offer a prize and then invite people to like the post to earn an entry. People who enter will often have that entry post on their own page, attracting more entrants for your contest. For your solar business, you could offer a discount on services, but you get be more creative and give away some trendy, popular prize, like the latest tablet or iPhone. After the contest ends, people will keep coming back looking for the next one. 4. Cross-Promote You can drive Facebook traffic by cross-promoting your page on your other social media accounts. If you haven't developed Twitter or Instagram accounts yet, you can post a link on your web page. Make sure the link leads to a particularly fascinating Facebook post. If you send out emails or even flyers via snail mail, include a reference to a discount that can only be found on your Facebook page. 5. Add Video While most people associate videos with YouTube, Facebook videos also routinely go viral. For your solar business, it's fine to post videos particular jobs you've done. But you should not stop there. Videos can be a great way to increase engagement on Facebook.  Instead, broaden your horizons by taking video during community events. If you are participating in the Homecoming parade, take a short video highlighting your float and the local marching band. In fact, you can easily use Facebook Live to share videos in real time—giving people stuck at home the chance to "be there" too. You can use your own phone to take these videos. The entire process takes little time, and soon your page will be the place to go for special local content. Using your Facebook page to effectively grow your solar business doesn't require much time, especially if you share the duty with a trusted employee or partner. Do directly promote your business, but remember to make your page fun and entertaining. Everyone likes to do business with friendly companies that are invested in their community. ### Gain a Competitive Edge with These Principles of Solar Customer Service The solar industry is getting increasingly competitive, so understandably sales and customer acquisition are a top priority for solar companies. But focusing too much on the sales side and failing to prioritize quality at all stages of the customer’s experience after they sign on the dotted line is a costly mistake. While delivering excellence takes some time and attention, it is this long-term approach that will lead to satisfied customers who can’t wait to tell their friends and neighbors about going solar with your company. In today’s article, we highlight some of the processes and protocols that are central to delivering a good customer experience at each stage of the customer’s interaction with your solar company. For insights, we spoke with staff at Baker Electric Solar , a leading solar installation company in the San Diego area. The company has won the Better Business Bureau’s International Torch Award for Ethics and the Angie’s List Super Service Award. With over 60% of its business coming from customer referrals, it’s safe to say that Baker knows a thing or two about how customer service can provide a competitive edge. Communication is Key As with any relationship, effective communication provides the foundation of a good rapport between companies and their customers. Good communication is essential at all stages of the customer experience—from the first sales call to the the completion of the installation and beyond. There a few key elements of effective communication with customers: Be proactive One of the most important elements of communication that will lead to satisfied customers is that it is frequent and regular. For Baker, this means being in touch with the customer and providing updates at a minimum of every two weeks—even in cases where there may be an expected pause in the progression of the project. Set clear expectations It’s also essential that customers have a clear understanding of what to expect at the outset—from the timeline for the installation and the steps that will be involved to the design of the installation and the chosen components.   Project Manager Tim Finn explains that for Baker Electric Solar, one of the most important parts of their communication with the customer is providing a detailed overview of the system design at the outset. “We send that out to the customer and get their sign-off on it, making sure that they've reviewed the plans, they understand what the layout is going to look like, and they approve of it. That way, if there are any questions ... we can answer them then, versus when we're on the job site.” Successful communication also means anticipating any potential challenges in the project and communicating early and often about them so that the customer and contractor are always on the same page. These principles underpin all aspects of the customer’s experience; however, there are other key factors that define great customer service at different stages in the customer's process of going solar. Service from the Start Building a relationship with the customer begins at the sales stage, and a central element of good service at this point is taking the time to understand the customer’s needs and goals. Service Manager Josh Lennard explains that, during the sales process, Baker “works with the customer to understand their expectations, their needs, and goals that they have for getting solar.” This involves “talking about the equipment, their savings, their consumption history, the design ideas that might be available to them…. The communication at that point, is very nurturing with the customer; you're building a relationship... and thinking out of the box if needed in order to meet their goals.” At the conclusion of the sales stage, the customer should have clear understanding of what to expect going forward. Managing for Customer Satisfaction The next step in delivering a great customer experience depends upon effective management of the project's implementation. In addition to being proactive about updating the customer on the project’s progression and communicating in advance about potential challenges, being accessible to the customer is a key element of customer service for Baker. This might mean designating a point person who will be responsible for promptly answering any questions. Of course, customer satisfaction is contingent upon installation quality so attention to detail in the design is crucial. Software like Aurora that offers validated shading analysis and energy production estimates, and checks for NEC violations and other design errors can be a valuable tool.  Finally, ending the installation phase on a strong note is also important. For Baker, a key element of this is the project hand-off, in which they have a final meeting with the customer and help them understand what to expect going forward. Lennard explains that at the end of the installation, “Someone goes out to walk them through the system and show them exactly how it works so the customer is not confused. It also gives us a last chance to confirm that nothing is wrong and to answer any remaining questions that the customer may have. That way we can leave them with a positive impression,” says Lennard. This process also lets Baker highlight their post-installation service. Post-Installation Service Another key way companies can differentiate themselves with customers is through the way that they support their customers and guarantee their work after the project is completed. For Baker, this involves a robust warranty program including a 10-year standard warranty of system components and workmanship; energy production monitoring systems for customers; as well as an extended 25-year inverter warranty.  In the rare event that a customer experiences an issue, a quick resolution makes them happy to have selected a company that is there for them over the long term—and much more likely to refer their friends and family. This attention to customer satisfaction at all stages is central to Baker’s ability to acquire a significant portion of their customers through referrals. Incorporating some of these approaches can enhance your company’s reputation and provide a competitive edge. ### Boost Your Solar Sales by Avoiding These Pitfalls Selling solar is far from easy. Even among home and business owners who are excited about reducing their bills and greening their energy consumption with solar, the large purchase can be daunting. Further, many potential customers are unfamiliar with how solar energy works, how it will impact their bills, and how to evaluate different incentives and financing options. Nancy ReynoldsVP Sales & MarketingClean Energy Design, LLC We spoke with Nancy Reynolds, VP Sales & Marketing at Clean Energy Design, LLC  to understand some of the mistakes companies make when selling solar, so you can make sure to avoid them in your sales process. Clean Energy Design is a Massachusetts-based solar contracting firm with over 20 years of experience in solar integration and an A+ rating from the Better Business Bureau. Drawing from Nancy’s insights, we identified 3 core categories of mistakes that can derail your solar sale. Solar Sales Mistake 1: Failing to Provide the Level of Information the Customer Wants Make sure to be clear when explaining solar. Too much information can glaze someone over and not enough will leave them confused with too many questions. -Nancy Reynolds, Clean Energy Design, LLC As Nancy points out, solar is a new subject for many potential customers so it is essential to tailor your presentation to their level. This is supported by research that Aurora did in 2016 to understand customer needs and what makes a strong solar sales proposal. Asked about what they knew going into the process, homeowners around the country who had considered a solar purchase said things like: “I had some idea of what it is, like it’s installed on the roof, but didn’t know the details,” or  “We weren’t knowledgeable at all. We went to an open house that was arranged by the Sierra Club and saw what the homeowner had done at the time.”  Given this, it’s helpful to think about solar sales as a teaching opportunity. Ty Simpson, Regional Sales Manager of Bland Solar, says “Solar is not sales, it’s education. You’re teaching something unorthodox... Getting people to that a-ha moment.” That might mean showing the customer how you design solar for their home or the calculations behind your estimates of how much they will save on their utility bills. However you approach the process, take note of the customer’s level of understanding and what they’re focused on so you can answer their questions without overwhelming them with more information than they are ready to process. Using your sales conversations as an opportunity to educate homeowners and other potential customers about solar energy, can help make them more comfortable with the purchase.   Make sure you know all the ins and outs of the information you are presenting! -Nancy Reynolds, Clean Energy Design, LLC It should go without saying, but it’s your responsibility to be the solar expert so you can answer any questions the customer may ask. From a having strong grounding in why you are proposing a specific PV design or components, to understanding the relevant solar policies, incentives, and financing options, a good solar sales person knowledgeable about all aspects of a solar purchase. If there are any areas of the process you’re less familiar with, spend some time talking to people in other departments of your company to make sure you know the processes and reasons behind how your company approaches each part of the customer’s experience. Solar Sales Mistake 2: Failing to Provide Prompt, Courteous Attention Always answer the phone or call potential customers back immediately; most people want instant gratification. If you wait too long to respond, you will miss an opportunity. -Nancy Reynolds, Clean Energy Design, LLC It may seem intuitive that if you want to make the sale you need to be attentive and responsive to each lead, particularly as the solar market becomes increasingly competitive, but you need to have strong, scalable processes in place that facilitate this. That might mean investing in software that supports accurate remote site assessment so you can efficiently follow up with more leads—as Cascadia Solar did with Aurora, allowing them to double sales month over month—or using a CRM program to help track your follow-up conversations. Solar management consultant Pamela Cargill notes that “anything that helps you track how often you follow up with a customer... is ripe for automation,” though she cautions that those interactions should be personalized because it is critical to build a genuine relationship with the customer. Of course, these approaches don’t just apply at the sales stage. The sales process should show your potential clients the high level of attention and service that they can expect if they move forward with your company. Being responsive to inquiries from prospective customers is critical to closing the sale. NEVER use high-pressure tactics or try to find out where you stand and if they are considering other companies.  Always mention that if they are getting other proposals they should be aware that they may not be comparing apples to apples. -Nancy Reynolds, Clean Energy Design, LLC It should be the quality and service your company offers, and not high-pressure tactics, that lead customers to choose you. In fact, not only can those aggressive tactics damage the reputation of your company, they may damage the reputation of the industry more broadly. This was a common theme at a roundtable on solar sales that Aurora convened last year. Attendee Zayith Pinto, Residential Sales Manager at Sunworks Inc., said that he thinks the biggest challenge for the solar is “The misconception that people have of the solar industry—that we’re just out to get a dime, to get a tax credit. Maybe they had a bad experience with a company that tried to rip them off.” If you do a good job educating your customer (as discussed above), they will be able to see what differentiates your company. As Nancy Reynolds notes, that means addressing some of the different criteria they may want to consider when comparing quotes. For instance, if your company’s installation quality, excellent service, or use of higher-quality components results in better value even if you are not the cheapest, be sure to explain those considerations.   Baker Electric Solar, a highly regarded solar company in southern California, uses Aurora to communicate what sets them apart. Scott O’Hara, Solar Energy Consultant at Baker, notes  “Aurora’s software has given me a significant advantage in an extremely competitive market. It allows me to show customers why we are proposing a specific panel layout… [and] increases consumer confidence, because they know we are using the best technology available today to accurately project the performance of the system.” Solar Sales Mistake 3: Over-Promising and Under-Delivering Last, but perhaps most important, it is critical that your sales process accurately represents the benefits your solar installation  will provide to the customer. Nancy offered several specific things that installers should bear in mind to ensure that’s the case: "Never promise that an installation will take place on a specific date until all the approvals have been received and equipment is reserved."  "Always have a statement in your contract that will allow you to substitute equipment, if the panels specified are no longer available."  "Do not be too optimistic about the power that will be generated by a solar system.  Always underestimate the anticipated power production and your customer will be very happy when the system is producing more than what was estimated in the proposal, particularly if PBIs (performance-based incentives) are involved."  Our own Sales Consultant JT McCook, who worked in solar sales before joining Aurora, also underscored the importance of ensuring what is offered in the sales process precisely matches what the customer will receive. “It is SO important to get the design as close to perfect on day one in order to promote a high level of customer experience, as well as reduce the number of touch points for the project from start to finish (from sale to install).”  JT notes that when he sold residential solar systems, he sometimes encountered cases where companies had sold customers a system that was larger than what they could actually install on the customers roof. Not only did this anger customers, whose savings would end up being lower than they had been told, it also cost the companies money in the long-term as a result of change orders and additional site visits. Using a solar design program that enables precision and accuracy, like Aurora, can help ensure that the solar PV design you sell matches what the customer receives.  Using cutting-edge technology in the design process, can ensure that your initial designs and energy production estimates are accurate and true to what the customer will receive. A sales process that avoids these pitfalls—by effectively educating the customer, providing prompt and courteous communication, and ensuring the accuracy of what you offer—will help you close more sales. And, just as importantly, it will lay a strong foundation for customer satisfaction so that your customers can be sources of referrals down the line.   ### How Are Solar Job Markets Performing Around the U.S.? The solar industry is a big job creator. But the number of solar jobs in the U.S. shrank slightly in 2017, the first decline since tracking of solar jobs began in 2010 with The Solar Foundation’s first annual Solar Jobs Census. However, solar industry performance varied widely by state. While some traditionally strong state markets like California and Massachusetts saw notable declines in solar employment, there were also many bright spots: 29 states added solar jobs last year. In today's article, we dig into the results of The Solar Foundation’s 2017 Solar Jobs Census  to see which states achieved solar job growth and which states saw contraction in the solar industry. National and Long-Term Trends It’s well known that 2017 was a tougher year for the industry than record-breaking 2016. In its 2017 Solar Census The Solar Foundation confirmed that, finding that solar industry employment declined by 3.8% (or 9,800 jobs) in 2017. There were a variety of factors that likely influenced decline. One was a so-called “hangover” from 2016, in which record numbers of solar projects were completed to take advantage of the Investment Tax Credit, which was anticipated to expire at the end of the year. Another was uncertainty over the outcome and impacts of the solar trade case  brought by Sunniva and SolarWorld Americas under Section 201 of the Trade Act of 1974 (which President Trump issued a ruling on in January). Additionally, challenges in states that have traditionally been leaders in solar, particularly California, contributed to the overall decline. In fact, The Solar Foundation reports that “if California were removed from the 2017 Census, the nation would have experienced solar job growth.” Discussing the findings, President and Executive Director of The Solar Foundation, Andrea Luecke, noted  “After six years of rapid and steady growth, the solar industry faced headwinds that led to a dip in employment in 2017, including a slowdown in the pace of new solar installations. At the same time, the fact that jobs went up in 29 states is an encouraging sign that solar is taking hold across the country as a low-cost, sustainable, and reliable energy source.” So where did solar jobs grow in 2017? Let’s take a look. States with the Greatest Solar Job Growth in 2017 More than half of U.S. states added jobs in 2017. Among the states that saw the greatest gains in solar jobs were (in order of growth) Utah, Minnesota, Arizona, New Jersey, and New York. 1. Utah: 1,762 solar jobs added in 2017 Utah led the nation in solar job growth in 2017, adding 1,762 new solar jobs. Factors in Utah’s strong solar economy include the state’s climate and geography, and the falling costs of solar deployment (SEIA reports solar prices have fallen 55% in Utah in the last 5 years). Discussing the industry’s growth, the Salt Lake Tribune  notes that Utah “ranks as the fifth-sunniest state in the nation, and there’s a lot of wide, empty land available for building solar farms.” 2. Minnesota: 1,384 solar jobs added in 2017 Minnesota’s solar job gains are particularly striking, with solar jobs growing 48% in the last year (a growth rate only exceeded by Delaware at 51%). One factor in this growth   was the state’s mandated community solar program. Under the program 48 community solar gardens were developed in Minnesota in 2017, reaching 170 MW of community solar in November 2017. John Farrell, director of the Energy Democracy Initiative at the Institute for Local Self-Reliance, points out that a key difference between Minnesota’s community solar policies and those of other states is that Minnesota has no cap on community solar capacity. As a result, the future of community solar in the state looks strong . Farrell notes “There [are] 10 times more community solar projects in the queue—400 MW—in Minnesota than have been built in the history of community solar in the United States (outside Minnesota)." 3. Arizona: 1,071 solar jobs added in 2017 Despite policy turbulence in Arizona, including the decision to end retail net metering  in December 2016 and replace it with a new, less favorable compensation policy, the Arizona solar industry grew by 15% in 2017, adding over 1000 additional jobs. SEIA notes  that Arizona is one of the sunniest states in the nation with huge potential for solar growth, which may have played a role. 4. New Jersey: 1,050 solar jobs added in 2017 New Jersey has long been a leader in solar energy and 2017 was no different. The state, which is fifth in the nation  for solar capacity despite its small size, added 1050 solar jobs in 2017, growing 17%. New Jersey has a renewable portfolio standard that requires utilities to source 15% of electricity from renewable sources. The program provides the basis for a lucrative SREC market  in which solar energy producers can sell credits for the energy they produce. The future of solar in New Jersey looks bright, as well. New Jersey’s recently elected governor, Phil Murphy, has proposed  the creation of a green bank, which the Environmental Defense Fund reports  could significantly bolster investment in clean energy (as has been the case in nearby Connecticut and New York, which both have active green banks). Additionally, Murphy was elected on a platform  that includes plans to source 100% of New Jersey’s energy from renewable sources by 2050. 5. New York: 877 solar jobs added in 2017 Solar in New York state has grown by 1000% since 2011 , aided by strong state-level policies supporting solar energy and other renewables. In 2017, New York added nearly 900 new solar jobs. The state has a target of sourcing 50% of its electricity from renewable sources by 2030, and has an active green bank that is making financing for solar projects more accessible. Other states with notable increases in solar jobs include Tennessee (863 new jobs, a 24% increase), Pennsylvania (787 new jobs, a 26% increase), Colorado, Ohio, and North Carolina. Delaware and Iowa showed remarkable increases in solar jobs as a percentage of total industry employment, growing 51% and 45% respectively. What States Lost the Most Solar Jobs in 2017? 1. California: 13,636 solar jobs lost in 2017 California, which has a larger solar industry—both in terms of employees and installed capacity—than any other state, experienced the largest declines in solar employment in 2017. With 13,636 solar jobs lost in 2017, California’s job losses alone exceeded the 12,311 combined jobs added in other states that saw solar job growth. However, given the size of the solar industry in California, this was only a 14% contraction in the job market. In California, 86,414 people are employed in solar, dwarfing employment in the next largest state market, Massachusetts, where 11,530 were employed at the time of the 2017 Solar Census. The Solar Foundation points to a number of factors that contributed to this decline in California solar employment. In addition to the so-called “hangover” from 2016’s epic solar growth, a rainy 2017 dampened solar sales. Additionally, the Census cites changes to time of use rates in California as a factor; reporting that these new utility rates, which vary the cost of energy depending on the time of day, can make it harder to explain the economics of a solar project to prospective customers. 2. Massachusetts: 3,053 solar jobs lost in 2017 Solar employment in Massachusetts declined 21% last year, a loss of 3,053 jobs. The Boston Globe notes  that potential contributing factors include: "uncertainty about changes in solar incentives; caps in some parts of the state on new net metering credits; and concern over a new charge on solar users imposed by [regional utility] Eversource.” 3. Nevada: 1807 solar jobs lost in 2017 The solar industry in Nevada is still recovering from dramatic job losses that resulted from the state’s decision to eliminate net metering in December 2015. Although the state reinstated net metering  (at a lower rate) in June 2017, helping to revive the market, it was “not enough to make up for the previous losses,” said Ed Gilliland, Senior Director  at The Solar Foundation in remarks to Greentech Media. “At least not yet.” Despite the slight national decline in solar employment in 2017, more than half of state markets showed job growth and long-term trends for solar’s growth remain bright. In 2018, the solar industry is expected to return to the year-over-year growth that has characterized the sector. Solar employment declined slightly (3.8%) in 2017, but long-term trends in job growth are promising; since 2010, solar employment has grown by 168% and growth is expected again in 2018 (though the impacts of the recent trade case are still yet to be seen). Source: The Solar Foundation’s National Solar Jobs Census 2017  . Discussing outlook for the future, The Solar Foundation’s Ed Gilliland noted that “We will likely experience some headwinds over the next  year or two, but certainly the stronger states can sail forward. I think we can still get some emerging states to do well, but they need strong policies to support growth.” For updates on solar policy changes around the country and other insights for your solar career, subscribe to the Aurora Blog! ### Is Your Solar Design Process Missing These Key Technologies? Software tools that enable remote solar design are transforming the solar industry—cutting industry soft costs by eliminating the need for truck rolls and reducing design time from days to minutes. However, remote design tools are developing rapidly, aided by advances in fields like mathematics and computer science, and it can be hard to keep up with all of the new technologies available to increase design speed and accuracy. Many of these technologies once required a supercomputer to access, but today they are becoming accessible to everyone. This means that small and medium-sized solar sales, design, and installation companies—those without million-dollar budgets—can now access these technologies to improve the efficiency and quality of their design process and, ultimately, serve more customers. As the solar industry becomes increasingly competitive, contractors need to take advantage of every tool at their disposal to produce the best designs as quickly and easily as possible. In today’s article we examine the practical implications of key technology advances that fundamentally change the solar design process. What technology developments are most important for remote solar design? New imagery tools, including LIDAR and drone imagery, enable more accurate remote solar design. Computer vision, using computers to interpret images, enhances accuracy and reduces design time. New applications of mathematical algorithms—“Optimization algorithms” are enabling software to automate solar design (as detailed by Cornell University Professor Madeleine Udell ), and enhancing the process of creating a 3D site model.   Many of these advances are not widely understood outside of their respective fields (particularly mathematics and computer science), yet they can be transformative for solar contractors who take advantage of them. Let’s explore how: Advances in Imagery Imagery is one of the main areas in which technological advances have transformed solar design. The increased availability of diverse types of imagery, such as satellite imagery and LIDAR, makes it possible to accurately design a solar installation without physically visiting the site. Satellite Imagery Although satellite imagery has been readily accessible for some time, through tools like Google Earth, it is worth acknowledging because this technology is at the heart of remote solar design. Combining this imagery with software solutions for solar design, it is no longer necessary for installers to visit each project site to measure solar access values and the available roof area. With imagery of sufficient resolution to clearly identify buildings, trees, and other structures, it is possible to remotely assess the suitability of a project site for solar. This also supports the creation of representative 3D models of project sites, which enable highly accurate estimates of solar energy production by taking into account the shading impacts of trees and other obstructions. LIDAR LIDAR data adds greater accuracy to remote solar design. This is because LIDAR data provides a means to verify the height and position of different parts of a building or surrounding objects like trees. An example of LIDAR data for a solar project site, which can help verify the accuracy of a site model. LIDAR (an acronym for Light Detection and Ranging) operates much like similarly-named SONAR and RADAR. But instead of pulses of sound or radio waves, a LIDAR scanner emits laser beams and measures the time that they take to return in order to map the location and elevation of objects in the surrounding area. In the case of the LIDAR data used in solar design, the scanner is typically outfitted on a plane to map the topography of the land below, but LIDAR has other applications as well. For instance, LIDAR is what allows self-driving cars to “see” what’s around them. Drone Imagery The emergence of consumer-affordable drones offers yet another valuable imagery source. Where high resolution satellite imagery is unavailable—or not current enough to show recently constructed buildings, drones offer an option for solar contractors to access useful imagery for remote solar design.   Drones now offer an additional option for solar designers to access improved imagery of project sites. Software like Aurora allows solar contractors to upload their own imagery to take advantage of these options. Computer Vision Computer vision is the use of computers to interpret images. There are many applications of computer vision, but in the field of solar design it offers a number of ways to make solar design faster and more accurate. Computer vision can dramatically speed up the design process by automating the process of modeling obstructions on a roof. In Aurora, a designer can identify one obstruction, like a skylight or a vent, and then computer vision can be used to automatically find all of the other obstructions of the same type. The resulting time savings can be significant, particularly for commercial sites with many repeating obstructions. Satellite imagery showing obstructions on a commercial roof (left) and Aurora’s automatic identification of similar obstruction instances (right). Computer vision can also enable solar designers to measure distances and angles on the project site, such as the height of a tree or the pitch of a roof, with just an image. This ensures that models are true to life so the design and energy production estimates will be error-free. Aurora’s 3-D Metric Estimation tool gives solar designers the ability to take measurements of a project site using aerial and streetview imagery. Click on the image to be directed to a video of this feature in action.  Algorithms Helping to Automate Solar Design Computer science and mathematics are providing a number of other technological advances that are making remote solar design more automatic, while offering improvements in accuracy. Optimization Algorithms Particularly exciting for any solar contractor who’s ever struggled to find the optimal design configuration for a particular location is the emergence of tools that can automate the solar design process. Drawing from the fields of optimization and computational mathematics, Aurora developed an algorithm that iterates through thousands of potential solar designs to find the most cost-effective design that achieves a particular energy offset or bill savings target. Aurora's "AutoDesigner" feature evaluates thousands of potential solar designs to recommend the best solution. There is significant value in automating the solar design process. The number of possible designs for a site is vast—in fact, if every possible design configuration were accounted for it would take a human many lifetimes to evaluate them all! Relying on a computer program to do the heavy lifting of evaluating the multitude of designs can reduce error while freeing up time time for other responsibilities, like ensuring customer satisfaction. Geometric Modeling Algorithms Another area where mathematical approaches provide advances in remote solar design is in the process of creating a 3D site model. Creating an accurate model of a customer’s roof can be very challenging, depending on the site, presenting a common trade-off between developing a site model quickly and getting every detail right. With recent algorithmic advances, however, solar design software can make smart inferences about the structure of the site. For instance, SmartRoof, a roof modeling tool released by Aurora in 2017, can use just the perimeter of a roof to infer the internal structure of the roof and how the planes of the roof intersect. The designer can then make slight adjustments, such as removing or adjusting certain roof planes, but is saved significant time in creating the model.  "SmartRoof" infers the internal lines and planes of a roof based on its perimeter. Yet another computational technique being integrated into solar design software draws from geometric modeling approaches to enable the creation of complex shapes through the merging of simpler shapes. SmartRoof includes this functionality to allow designers to draw a house in multiple parts and have them automatically integrated into a single building model. This makes complicated buildings much less daunting to model. While the science behind many of these tech developments is complex, the integration of these innovations into software programs means anyone can access them without special knowledge. With these tools, it is easy to remotely design a solar installation, which the National Renewable Energy Laboratory found can save as much as $850 for a 5kW system. These advances are also lowering barriers to solar design, so anyone on your team—from engineers to salespeople—can create an accurate site model and design.   ### Saving Millions for Low Income Schools with Solar Carports This is an installment of our Solar Spotlight series. Click here for our last interview! The students of San Ramon Valley High School have to vie for parking spots on campus. Parking is a nightmare. According to one student, the demand for spots is so high that she rents a parking space from the Chinese restaurant across the street. After all, who wouldn't want to park in their lot? In 2011, the San Ramon Valley Unified Schools District installed a solar PV carport structure over the lot. They probably have one of the coolest parking lots in the Bay Area - the sun-tracking solar panels shield cars from the California heat, while generating two-thirds of the school’s electricity too. The solar carports in San Ramon Valley. Image courtesy of San Ramon Valley Unified Schools District. Carports with solar panels were also installed in four other schools in the district. The cumulative 3.4-MW system is expected to generate two-thirds of the electricity needed to power the five schools. The project was not cheap: the $25,000,000 construction and design costs were funded by Qualified School Construction Bonds (QSCBs), meaning that the school district did not have to pay out of pocket for the solar installation, or any interest later on. And that's not even the best part: the system will eventually pay for itself in energy savings after 16 years, and will save them millions for years to come. Along with many other California schools, the San Ramon Valley district experienced budget cuts adding up to $20 million within five years. With their savings on electricity, the district can still invest in teachers and health resources for its students. And the students never have to worry about their cars overheating. San Ramon Valley is a great place to go to school. But the same is not true for the rest of the California. Back in 2011, the Department of Education published a report that indicated 40% of low-income schools are not receiving their fair share of funding. While the state has made efforts to restructure the school funding formula, California public schools are still lacking between $22 and $42 billion in funding, according to the California School Boards Association. California public schools spend over $700 million on energy every year according to the California Energy Commission. So why aren’t more districts installing solar carports and saving money like San Ramon Valley? Barriers to installation Last week, I visited the four summer fellows of the Stanford Solar Schools Project, an initiative funded by the TomKat Center for Sustainable Energy. The undergraduate fellows spent eight weeks of their summer break addressing this exact issue. The 2016 Stanford TomKat undergraduate fellows. To begin, the team reached out to several government agencies to learn about their projects. For example, Proposition 39 is set up to help schools with energy efficiency and other energy projects through grants. While funding schemes are available for schools, getting the money isn’t easy. “There are a lot of programs out there, but it’s difficult for schools to find out about these programs and find the time and resources to fill out some of these applications, which are very expensive,” said Sneha, a junior majoring in Civil and Environmental Engineering. Schools have to submit a proposal before obtaining any sort of government loan. The upfront cost for proposals from solar procurement specialists or consultants “can be upwards of $20,000.” “And that’s just to get the study done. You could pay the twenty grand, have the study done, and have them be like, ‘Sorry, it’s not gonna work.’” added Trevor, a sophomore studying Management Science and Engineering. The schools that have managed to install solar on their own are typically from larger school districts that have initial funding already available, corporate sponsors, or dedicated resources. "The San Ramon Valley has a solar panel research committee set up," explained Claudia, a rising senior majoring in Mechanical Engineering. The Los Angeles Unified Schools District has a sustainability person in charge, “because they’ve had other projects before and they’re huge.” Solar funding for schools 101 Given these obstacles, the team began by mapping out the information gaps and making this accessible to schools. The team compiled background materials that schools normally would had to spend weeks looking for, accompanied by a model of what a solar installation would look like on their own campus. To guide the schools, they put together publicly available background materials. A brief three-page Action Plan, details all the steps to installing solar — from considering its impacts on a community, all the way to acquiring funding and beginning construction. Their Policies, Regulations, and Resources document lists major sources of funding for schools, “for them to figure out how in the world they’re gonna pay for this,” described Chewy, a junior majoring in Earth Systems,. In addition to Prop 39, loans are available. Schools could take advantage of the IRS Clean Renewable Energy bond. Trevor described it simply: “The district is the bond issuer. They find a bank to be a bondholder. The government pays the interest to the bank. So for the school, it’s basically a zero-interest way to install solar.” Another option is the Qualified Zone Academy Bond (QZAB), another zero-interest plan. A private entity matches the bond value by 10%, either in cash or services, which helps fund the school’s academic programs, such as a renewable energy curriculum. “So what we’re trying to do is provide resources, as well as connect them with organizations that help schools with this process,” said Sneha. Customized designs "Now we’ve started looking at individual schools and designing solar plans for them along with long-term financial analyses in Aurora,” said Chewy. Their goal is to convince each school that not only are they able to afford solar, but that the installation will prove to be an economically savvy move throughout the lifetime of the project. “It’s possible what we’re doing with Aurora can cost schools a lot of money as well. Just providing this initial feasibility assessment with the starting point models that we’re generating helps a lot,” said Sneha. The team hopes that the schools will bring the solar plan they generated in Aurora to the Bright Schools program, which provides free consulting up around $20,000. From there, the schools could apply to larger funding programs based on their solar designs. Modeling savings To create the solar designs, the team needed the school’s energy consumption data and electric rates. The information was either provided by the school or from the online database of the California Energy Commission, which contains data from 400 schools across the state. They imported the information into Aurora to closely model the load profile and potential energy savings of these schools. Then, they used the software to model the system in 3D, estimate the system’s energy production, and run a financial analysis, saving them from the hassle of having to go to the schools. A school could save anywhere from $40,000 to $125,000 per year with a 313 kW solar PV system, according to estimates from the Environment California Research & Policy Center. Since the designs needed to be as realistic as possible, the structural integrity of the school roofs was a key consideration. “Some of the roofs of the schools that we’re working with are really old, so probably couldn’t support the weight of solar panels,” said Claudia. “So most of our designs are carports or some sort of shading structure on the school grounds,” she added, which also explains why carports are more popular for older schools, like in San Ramon Valley. In addition to carports, ground mounts could also be installed on unused property. Next steps Over the course of the summer, the Solar Schools Project team modeled unique solar designs for 26 low-income schools across 10 school districts in California, serving a total of 20,910 students. Each proposal was complete with a shading analysis and financial estimates. While their skill with solar design can now rival that of some installers, they know that they have only scratched the surface, and that designing the models is only the first step. While the team always waits for schools to express interest before sending the solar design proposal, they have to put faith in the superintendents and the facilities managers at the school to move forward with the project. “We’ve shown them all the money they can save, proven that it’s worth the investment, and directed them to all the financial help they can get out there,” said Chewy. Claudia expressed her concern that the receiving side might lack motivation: “We’re worried that they’ll think that it’s a good idea and that they’ll agree with us, but that no one is actually pushing to take action on the next things that are involved, like more work or more money going into it.” The power of local advocates Even though the team has realized that there is only so much they can do from a distance, they still have hope for their proposals. “We’ve learned the importance of the local advocate for our projects,” said Sneha. “They’re the people we’re trying to connect with, and we’re trying to give them tools to champion their project.” All of them agreed that bureaucracy in the school system was expected, but the extent of it was still shocking. The processes can take months in the school districts, given complications with multiple stakeholders: the superintendent and the community, as well as the three-year turnovers in school boards. “There are a lot of hoops to jump through,” Trevor reaffirmed Sneha’s statement, “That’s why again it’s so important to have a champion at the local level.” The team has discussed using their research to make policy suggestions. They have become quite adept at navigating funding and other processes involved with solar installations for schools. “We want to give recommendations to actors at the state government level so that they can make those processes a bit simpler, based on what we’ve learned this summer.” said Chewy. Perhaps the best local advocates are the high school students themselves. Trevor hopes that the implementation of a solar project will be a community-wide effort. “If these superintendents get this big packet of information that we’ve provided, I can see high schoolers just jumping all over it and going to school board meetings and promoting it on a regular basis. That’s what happened in that San Ramon Valley.” ### 5 Reasons Blockchain Is Game-Changing for Solar Energy In December 2017, the value of the digital currency bitcoin hit an all-time high, with a single bitcoin valued at over $17,000. If you had bought $100 of bitcoin in 2010, your investment would have been worth over $28 million at that time, according to Fortune. That might have you kicking yourself for not paying attention to bitcoin sooner. But if you’re like many of us, bitcoin—and blockchain, the mechanism behind it—remains something of a mystery. In today’s article, we offer a brief introduction to what blockchain is and why this technology matters for solar. The uses of blockchain go far beyond creating currencies like bitcoin—and have important implications for the energy sector, including the solar industry. First, a huge amount of energy is consumed in the creation (“mining”) of bitcoin and that energy consumption is expected to continue to grow, potentially undoing the climate benefits of clean energy development. On the bright side, however, solar could provide a cost-effective power source for bitcoin mining, presenting business opportunities to solar developers. Additionally, there are a wide number of potential applications of blockchain technologies that could help advance solar energy—such as enabling peer-to-peer energy sharing, connecting solar projects with interested investors, or providing a mechanism for compensating solar energy producers. What is blockchain? How does it relate to bitcoin? [Already a blockchain expert? Jump ahead to see how it’s impacting the solar industry.] A blockchain is an encrypted digital ledger of transactions which is maintained by a distributed network of users’ computers, rather than a central authority. The name blockchain comes from the fact that bundles of transactions in the ledger are called "blocks." As they are added to "chains" of existing blocks, transactions in any preceding block cannot be altered or deleted. A key innovation of blockchains is that although the ledger is public, it is designed so that the record cannot be altered, enabling transactions between parties that would not otherwise trust each other. As Morgan Peck explains in Spectrum, the journal of the Institute of Electrical and Electronics Engineers (IEEE), this approach “reliably incentivizes a network of potentially dishonest participants to process transactions and secure a single version of those events.” (For a detailed overview of blockchain, Peck’s article is an excellent starting point. )   The first and most-well known application of blockchain is bitcoin, a digital currency created in 2008 following the Great Recession. It was touted as a currency option that could replace the role of financial institutions, in tracking and reconciling financial transactions, with code and a network of computers around the world. Since then many other blockchain-based cryptocurrencies  have emerged, such as Ethereum, Ripple, and LiteCoin. A blockchain contains bundles of transactions called "blocks." Once added to the chain, the transaction ledger in a block cannot be changed, creating a consistent version of events for all users in the network. How does a blockchain work? Different types of blockchains use different mechanisms to “lock” the blocks in the chain and prevent altering of the data. Bitcoin operates with a “Proof of Work” approach, in which adding a block to the chain involves solving complex math problems with powerful computers in order to find the “hash” or code that will “lock” the next block in the chain. "Miners," who put in the computational work to find these hashes, are incentivized to do so because whoever finds the correct hash is paid in bitcoin for that service. Finding the right hash requires significant computing power (and thus electricity). As Peck explains, “Any changes in old blocks will result in invalid hashes for all subsequent blocks.” Likening hashes to keys that open locks, she notes “it’s as though the design for the lock at the end of the chain depends on all the locks that came before it.” This makes attempts to alter prior blocks in the chain almost impossible, because that would require redoing all of the computational work for that block and all subsequent blocks. Additionally, while a would-be attacker attempted to do that with their limited resources, other players in the network would constantly be “mining” new subsequent blocks. Therefore, as long as an attacker does not control more than 50% of the whole system’s computation power, they will never catch up with the rest of the players.   Finally, the system is structured so that the computation involved in finding the right hash gets harder over time. This keeps the rate at which blocks can be added consistent in spite of increases in computing power. Why does blockchain matter for solar? 1. Bitcoin uses huge amounts of energy Many of us entered the solar industry to make a positive difference in the world—including helping to tackle climate change. But energy consumption for bitcoin mining could negate climate gains made with clean energy. As bitcoin becomes more and more popular the amount of energy being consumed to create it is reaching astonishing levels. While bitcoin mining operations are distributed around the world and no single authority tracks exactly how much energy is consumed for these activities, researchers have estimated the scale of the energy impact. Writing in Spectrum, Peter Fairley cites Dutch researcher Sebastiaan Deetman of Leiden University who estimates the current energy draw of bitcoin at 700 MW per year  and concludes that by 2020 it could reach 4 gigawatts—as much energy as the country of Denmark. A December 2017 Grist article offered a much more distressing assessment , estimating that, at its current growth rate, the bitcoin network will use more electricity than the United States by 2019. The author asserts that this phenomenon is essentially undoing the gains made in tackling climate change through the growth of clean energy. Bitcoin mining operations have already caused local grid disturbances in some areas. In Venezuela, where bitcoin is seen by many as a more viable currency than the Venezuelan bolívar (now almost worthless due to inflation), there are reports of bitcoin mining causing instability on the electricity grid . Bitcoin mining operations  require significant computing power. As a result, they consume massive quantities of electricity.  2. Powering bitcoin mining with solar could present new opportunities Despite these troubling energy and environmental implications, the bitcoin network’s need for cheap power raises the question, what are the opportunities for powering bitcoin mining with solar energy? At least one company is already getting into this space. A company called Envion has a business model that involves the use of mobile bitcoin mining servers (housed in shipping containers) that run on excess energy from solar farms  when there is overcapacity in a local area. This makes use of energy that would otherwise go to waste without energy storage, while providing a cheap—and carbon-free—source of power. Writing for Greentech Media, Tam Hunt highlights the financial opportunities of a number of different approaches for powering bitcoin mining with solar energy . These include the use of off-grid solar farms, or using bitcoin mining as a way to monetize solar production without a power sales contract, which can sometimes be difficult to obtain. The implications of blockchain for the solar industry extend far beyond bitcoin. While bitcoin uses a blockchain as a financial ledger, tracking the creation and movement of currency, blockchains can be used to create decentralized public ledgers of many other kinds of transactions and agreements. As a result, blockchain opens up many other potential innovations for the solar industry: 3. Blockchain could track and compensate solar energy production One promising use of blockchain is to verify and compensate the production of solar energy. Writing in MIT Technology Review, Mike Orcutt discusses how these kinds of applications could transform the modern electricity grid , eliminating layers of government and utility intermediaries involved in compensating producers of solar and other renewable energy. This could include using blockchain to track the production and sale of renewable energy credits—like SRECs. What is SolarCoin?  A related application already developed is SolarCoin , a blockchain-based cryptocurrency created to incentivize greater investment in solar energy. Whereas bitcoin is created by expending energy for computation, the creation of SolarCoin is tied to solar energy production. Owners of solar systems can register them with the SolarCoin Foundation and receive one SolarCoin for each megawatt hour their system generates. Although creation of SolarCoins is tied to actual production of solar energy , anyone can purchase existing SolarCoins. Those who want to monetize their SolarCoin  can convert it to bitcoin and from there into the currency of their choice. Unlike many solar incentives, like the Investment Tax Credit or SRECs, One interesting characteristic of SolarCoin is that it doesn't just benefit the system owner. In the case of leased residential systems, the homeowner is the one eligible to receive SolarCoin rather than the company that owns the system. The SolarCoin Foundation explains  that they structured the system this way because they believe it more effectively achieves the project’s goal of driving greater solar investment. Solar installers can also benefit. “For an installer, SolarCoin represents an alternative free revenue for promoting solar power and the use of renewable energies. Installers who refer claimants to the SolarCoin program are entitled to a 10% bounty of the annual claim amount for each facility to be paid out in SolarCoin.” And, as John Cromer of Community.Solar explains , another benefit of SolarCoin is that it provides documentation of the amount of solar energy being produced by small systems, data which is currently poorly tracked. Community.Solar  provides solar continuing education courses; they use the SolarCoin blockchain to track course participation, and even offer free SolarCoin registration of solar arrays. 4. Blockchain could facilitate solar energy transactions and peer-to-peer energy purchases Blockchain could also enable peer-to-peer trading of solar energy—simplifying the process of connecting solar energy producers with consumers who want access to sustainable energy. Australian startup Power Ledger  is already using a blockchain platform for this purpose. They note that their service allows solar producers to be paid immediately for the energy they produce, in contrast to a typical utility payment cycle of 60 to 80 days. This approach could provide an alternative to net metering. It could also offer a solution to the same challenge that community solar and virtual net metering seek to solve—allowing households and businesses that can’t go solar themselves to partake in energy from off-site solar projects. Another example you may have read about is a company called LO3 Energy  that is using blockchain to manage the purchase and sale of energy among participants in a solar-powered community microgrid in Brooklyn. Blockchain can facilitate peer-to-peer energy trading. This could enable solar energy producers to provide energy to consumers in their local community.  5. Blockchain could support investment in solar projects Blockchain could also be used to make investment in solar projects more accessible, helping to increase solar capacity. Writing in Forbes, Roger Aitken notes that “Sun Exchange, a peer-to-peer solar equipment leasing marketplace based in South Africa, has raised $1.6 million (m) in seed financing... to ‘accelerate global access’ to solar power.” Sun Exchange’s  mission is “to enable anyone to go solar and transition the planet into a clean energy economy of abundance.” The company essentially offers a solar crowdfunding platform using blockchain. Investors around the world can buy individual solar cells in arrays for schools, hospitals, wildlife refuges, and other customers in developing nations. They operate in areas that lack consistent access to electricity, but where solar energy is an abundant resource. The systems are leased to customers and investors earn income—in bitcoin or South African Rand—through energy payments once the project is deployed. While many of these applications are in their early stages, it is clear that the potential uses of blockchain for advancing solar and other forms of clean energy, and even transforming how we manage the electricity grid, are significant. In fact, a team at the Rocky Mountain Institute (whose work on community solar we highlighted in a previous blog post) recently joined forces with an Austrian blockchain startup to create a non-profit called the Energy Web Foundation . The Foundation has created its own blockchain specifically for the energy sector, which they will use to test promising applications for the industry. Whether you’re a bitcoin enthusiast or cynic, other blockchain applications may one day transform the solar industry so you might want to keep an eye on these emerging developments! DISCLAIMER: This article has been published for informational purposes only. Aurora Solar does not provide investment, financial or legal advice, and this article is not a recommendation of any cryptocurrency. ### 8 Cool Solar Technologies from Solar Power Northeast Last week, the Aurora team had the privilege of exhibiting at Solar Power Northeast  in Boston. We always love the opportunity to get out in the field, talk with customers and solar enthusiasts, and see how new technologies and policy developments are shaping the industry. With over 80 exhibitors and 1,500 attendees, SPNE provided the chance to learn a lot about the latest happenings in solar. Although talking with visitors at our booth didn’t leave us much time to walk around (if you were there, we hope you got a chance to say hi!), there were a number of compelling technologies that caught our eyes. In case you couldn’t make it, we put together a quick roundup of our personal highlights: Scanning Services Aerial imagery and LIDAR play a big role in our ability to offer cutting-edge remote solar design functionality at Aurora, so we’re always fans of new advances in imaging and remote sensing. One innovation that piqued our interest was the thermal scanning services of Exactus Energy. Exactus offers a variety of engineering and consulting services for the solar industry, including a number of different drone technology offerings. However, it was their thermal scanning that we found particularly exciting. Using drones with infrared cameras, Exactus can conduct thermal scanning of buildings, solar arrays, and other sites. This enables them to identify hotspots in solar arrays that can cause damage over time, as well as thermal leaks in buildings resulting in energy inefficiency. Hotspots in solar panels can occur for a variety or reasons, such as differences in current between cells in the module (such as result from uneven shading) or soiling. Overtime, hot spots will reduce energy production, degrade and damage panels, and can even cause fires and other safety hazards. In a large commercial or industrial system, identifying specific hotspots can be challenging and time-consuming. By using drones rather than physical inspections, Exactus offers an option to save time and minimize interruptions at the project site (much like remote shading analysis saves truck rolls!). Similarly, we thought the radar services of GPRS (Ground Penetrating Radar Systems, LLC.)  were intriguing. For those developing ground mounted solar installations, or systems on concrete surfaces, knowing what’s under the surface is important to avoiding installation complications. GPRS is the nation’s largest company to specialize in the use of radar to detect of underground utilities, as well as obstructions in concrete structures, like rebar. These scanning services make it easier to accurately plan where solar racking can be attached and ensure safety and timely project development.  Credit: GPRS. Grid Mapping Insights We were also interested to learn about the work of Kevala Analytics, a company that is working to build greater availability of data about the electricity grid. Their work is helping project developers identify good locations for distributed renewable energy projects, and helping utilities and policymakers with grid planning. Kevala Analytics  is working to create a comprehensive and searchable database of electrical distribution infrastructure—essentially mapping the electricity grid. To do this they are bringing together a wide variety of data from different sources on topics that impact the price of distributed energy and the ease of project interconnection, such as the locations of substations on the electric grid, historic energy pricing and weather data, and land information like property lines, zoning policies or wetland location.   Solar project developers with specific sites in mind can enter the location to “see nearby grid infrastructure to determine the potential costs of interconnection and alternative options for your project” in order to assess the viability of different locations remotely. While these services are more applicable to developers than solar contractors, Kevala is also contributing to higher-level planning efforts that may help policymakers support the expansion of solar and other renewable energies. Currently, the company is working with local stakeholders to create a detailed model of the electricity grid in Oahu , Hawaii, drawing from sources like building permits, satellite imagery of solar energy systems, and company data on PV system production. The project is intended to help support the state’s plans to source 100% of its energy from renewable sources. Says CEO Aram Shumavon, “All of that information really isn’t in one place. The easiest thing to do is to build a model of the electric grid that allows people to experiment with it.” Hardware Innovations It’s always fascinating to see how solar components are advancing, and there were a number of compelling products from industry manufacturers that drew us in. High-efficiency Panels Panasonic was highlighting its high-efficiency HIT ® all-black solar panels . Its 40mm N330 and N325 solar panels offer 19.7% higher power output and greater energy yields, as well as a lower 0.26% annual degradation compared to conventional panels. Additionally, its 40mm N320K panels that feature an industry-leading temperature coefficient of -0.258%. A solar panel’s efficiency decreases as it gets hotter, and its temperature coefficient indicates the percent by which power output decreases for each Celsius degree that temperature increases. For context, many solar panels have a temperature coefficient around -0.4%, so this technology could offer significant performance improvement in hot conditions. Advanced Microinverters APsystems was showcasing its YC600 microinverter , which it hails as the “World’s Most Advanced Solar Microinverter.” As we’ve discussed in other articles, microinverters can offer benefits over traditional string inverters, particularly when it comes to maximizing power output in the presence of shade. Unlike traditional string inverters, which are connected to numerous modules in an array, microinverters attach to fewer modules (typically two or four). They perform maximum power point tracking (MPPT) to maximize power output for each module. Credit: APsystems. The Rule 21-compliant YC600 microinverter, which works with 60 and 72-cell PV modules, has a noteworthy peak power output of 300VA per channel. Each of these microinverters serves two panels and offers dual, independant MPPT—meaning that there are two independently operating MPPTrackers, one for each module. This provides performance benefits in cases when panels have different shading levels or orientations. The model operates within a wider MPPT voltage range than many brands, which also helps to increase energy harvest. Additionally, the microinverters are compatible with multiple solar modules, increasing convenience for contractors. In Solar Builder magazine’s “Ask a Distributor” issue, the YC600 received positive reviews from distributors  who highlighted its design flexibility benefits. Racking for Every Project Type Another thing that caught our attention at Solar Power Northeast was the vast array of companies offering solar racking solutions. Whatever type of solar installation you specialize in, it seems there’s a company innovating to meet your needs. A few we thought were interesting were Pegasus Solar’s mounting options for tile roofs, S-5!’s mounting solutions for metal roofs, and Nuance Energy’s flexible ground mount systems. A few of the solar racking options we found interesting at Solar Power Northeast. From left to right: One of Pegasus Solar’s Tile Replace Mounting options (Credit: Pegasus Solar), S-5!'s S-5-PV Kit (Credit: S-5!), and Nuance Energy's Osprey Powerplatform (Credit: Nuance Energy Group).  Pegasus Solar’s Tile Replace Mounting systems  lets you replace tiles rather than cutting them, which reduces roof penetrations and install time. S-5! offers a number of racking options for standing seam metal roofs . Their clamps require no roof penetrations, reducing the potential for leaks. They also offer free online classes , with a course on how to maximize solar energy production on metal roofs.  Nuance Energy intrigued us with their Osprey Powerplatform, a modular earth anchor foundation system for ground mounted arrays. It eliminates the need for heavy equipment or cement and enables crews to install the system with only handheld tools. They note that the system meets permitting requirements for almost any site or soil type, and claim to have the industry’s fastest installation time—averaging 16 days to install a 2 megawatt solar system compared to 60+ days for a conventional foundation installation. Of course, this is just a small sampling of the solar innovations on display at Solar Power Northeast. We’d love to hear what technologies and services you found most impressive. Let us know in the comments below!   ### Unlocking Commercial Solar Design Benefits with Aurora When the International Brotherhood of Electrical Workers in San Jose, California (Local Union 332) decided to replace an aging commercial solar array on their union hall, they set their sights on a solar project that would offer benefits far beyond bill savings and reduced environmental impact. Using Aurora, they designed a unique 200 kW commercial solar installation (which spells out the organization’s name in solar panels!) that will offer business benefits for years to come. In our previous article, we shared the story of the project’s development and the benefits it provides. In today’s article, we explore the how the system was designed in Aurora and how the use of a robust solar design software streamlined and enhanced project development. The union hall of IBEW Local 332 now hosts a 200 kW commercial solar array designed in Aurora. Project Impacts and the Role of Aurora As the most extensive electrical union in the world, the International Brotherhood of Electrical Workers (IBEW) advocates for the interests of its member electricians. It also keeps an eye on emerging business opportunities for electrical workers. These days, many of those opportunities are in solar and other renewable energy technologies. So, as they considered replacing the solar installation on their union hall, IBEW Local 332 saw an opportunity for their union members to hone their solar design and installation skills. Working with the National Electrical Contractors Association (NECA), the trade association representing U.S. businesses in electrical construction industry, Local 332 installed the solar array as part of a broader retrofit to make their union hall a net zero energy building. In addition to giving NECA and IBEW members experience leading a project of this scale from start to finish, the project is a high-profile example of their workmanship for prospective clients. It even provides its own advertising! The array spells out IBEW in solar panels making it identifiable to air travelers flying into San Jose International Airport.   Aurora software, which was used to design the project, played an important role in enabling these benefits. Christopher Smith, Business Developer and Alternative Energy Engineer with NECA and the IBEW, took the lead on the project designs. He credits Aurora solar design and sales software as a key tool that enabled the stakeholders to easily evaluate different design options and settle on an optimal design to meet their needs.   “Aurora was very helpful because we could actually see what a given design would look like. Not only that, we could know what the production value was, what the costs were going to be, and everything in between, even down to the aesthetic level.” In addition to accurate 3D models that made it easy to visualize exactly how the project would look, Aurora also streamlined the design process. Smith could quickly make design adjustments and share them with project stakeholders. Accurate performance simulation made it easy to compare the energy production of different design configurations. Chris Smith, project designer (right), discusses the project with Ken Spears (left), whose firm Pacific Ridge Electric installed the system. Taking the Project from Concept to Reality Modeling the Project Site and Assessing Solar Potential The first step, before developing and assessing potential designs, was to create a 3D model of the project site. This allowed for the evaluation of potential PV panel locations, as well as assessment of how much solar energy the roof receives (a required input for calculating how much energy the system will produce). Local 332’s union hall was a cinch to model in Aurora. The one-story building has a flat roof and just a few obstructions, meaning tools like Aurora’s Automatic Obstruction Detection weren’t needed. To model the project, the perimeter of the roof was traced over the aerial imagery of the site. To accommodate the rounded corners of the building, multiple nodes were placed to create a curve. A 2D aerial view of the building, used to generate the preliminary 3D model in Aurora. As you can see, the first step was to outline the building, allowing the SmartRoof feature to automatically generate the roof structure. Obstructions, such as skylights and the HVAC units were then added. From there, the model was adjusted to include obstructions that prevented panel placement and could cause shading. Among the obstructions to be modeled were a walled-off area containing HVAC units, several rectangular skylights, and a number of roof vents. These were easily modeled by drawing polygons with Aurora’s “Add Obstruction Tool,” and then setting the height of each. Another feature of the building that had to be modeled was a shade awning running along one side of the building. Taking into account these factors allowed Aurora to generate an accurate 3D model of the site. An accurate 3D model of the project site, including obstructions like skylights and vents, created in Aurora using satellite imagery. (The imagery shows the 30 kW solar array previously installed on the building, which was disassembled before installation of the new system started.) With an accurate site model created, assessing the available solar energy on the site was simple with Aurora’s irradiance engine. As you can see below, the site is excellent for a solar PV system; it is almost completely shade-free and just about every point on the roof has a solar access value of 99%. Aurora’s irradiance engine, which assesses the available solar energy on each point of the roof for every day and hour of the year, shows that this commercial site is exceptionally well suited for solar. Evaluating Potential Designs and Their Energy Production With the irradiance levels of each point on the roof determined, Smith could explore a wide variety of different design configurations. “By the time we settled on the final design, we were probably on our tenth iteration,” says Smith. “Previously that would have been time consuming, but with Aurora it was simple. I'd sit down to the computer, spend a couple minutes modifying the design, and then I'd take screenshots or send them the file.” Numerous alternative layouts for the solar array, like these, were considered during the design process. (Note that these are draft designs and are not finalized.)  Aurora’s performance simulation capabilities made it easy to predict how much energy different designs would produce. A key factor that influenced Local 332’s decision to spell out IBEW in solar panels was that they had more space than they needed to meet the building’s full energy production needs. According to local interconnection policies, grid-tied solar installations must be designed so as not to exceed 110% of the site’s historic electricity consumption. Given size of the roof and its excellent solar generation potential, Smith found that if they had designed the array to fill the entire roof face it would have exceeded this limit. Additionally, under California’s net metering policies excess solar production beyond the building’s annual needs is compensated at a much lower rate. With space to spare, designing the solar array to spell out IBEW was an appealing opportunity to let the site be its own advertisement. With San Jose International Airport nearby, there is significant air traffic to see the solar installation from above. As the team began to more seriously consider spelling the IBEW acronym in a portion of the array, they wanted to test out how the design would actually look from an airplane before making a final decision. They arranged panels from the old array, which had been disassembled, to spell out IBEW as designed in Aurora. Local 332 General Manager Gerald Pfeiffer then took photos of the placeholder array as he flew into San Jose International Airport after a trip. The team was thrilled to find that design was easily identifiable from the air, just as it appeared in Aurora. With the feasibility of the plan assured, they proceeded with the unique design. The final system design is comprised of 595 panels and has a capacity of 202.3 kW. Aurora’s highly accurate performance simulation feature enabled the team to predict with confidence the energy production of different design variations. The estimated monthly production of the installed system is shown above.  The selected design will produce 302,421 kWh each year, offsetting the building’s total annual energy consumption while not exceeding the maximum energy offset allowed under local interconnection policies. The final completed installation. Credit: NECA-IBEW Powering America. The project was completed this month and is already generating attention and business opportunities for IBEW and NECA members. Pacific Ridge Electric, the contracting firm that installed the system, has received numerous inquiries from prospective customers interested in solar projects or net zero building retrofits like this one. (To learn more about the project’s goals and impacts, read our earlier post detailing the project’s development.) Aurora played a central role in the project’s success by streamlining the design process, accurately estimating energy production, and providing precise 3D models that made it easy to visualize exactly how the project would look. This made it much easier for the IBEW/NECA team to manage the project entirely in-house and reap the full benefits of their clean energy investment. Interested in learning more about how Aurora can enhance your solar design and sales processes? Click here to schedule a demo. ### A Flagship Building Retrofit in San Jose is Showcasing Union Solar Skills Over the last year, the local electrical union serving California’s Santa Clara County has undertaken the development of an impressive 200 kW commercial solar array and net zero building retrofit on their union hall in San Jose. The project, completed this month by Local Union 332 of the International Brotherhood of Electrical Workers (IBEW) and the National Electrical Contractors Association (NECA), will enable the union hall to generate all of its energy with solar. It is also making a splash for the two organizations by providing a stunning example of the solar installation skills of both IBEW and NECA members. If you ever fly into San Jose International Airport, chances are this project will catch your eye from the window of the plane… because part of the array spells out IBEW! A new commercial solar array on the International Brotherhood of Electrical Workers’ Local 332 Union Hall is easily identifiable to passengers flying into San Jose airport. Left: aerial photograph photograph of the completed project (Credit: NECA-IBEW Powering America), Right: project design in Aurora software. As part of a broader project to make the entire site a net zero energy building, the solar array will produce more than 100% of the building’s energy consumption. The project, created using Aurora solar design software, will save the local union over $140,000 per year in utility bills and cut carbon emissions. But its value goes far beyond energy savings for the union hall; it is also an important business development initiative. With renewable energy technologies like solar PV and energy storage becoming highly-sought skills for electrical workers, managing the solar project from design to installation allowed IBEW and NECA to showcase their talents to prospective clients in a high-profile way. Aurora played an important role in facilitating the project; it streamlined the process of creating a variety of potential designs and made it easy to assess the energy production and bill savings benefits of each. In today’s article, we delve into the story of the project and its benefits for IBEW Local 332 and NECA members. In our subsequent article, we explore the design process through the lens of Aurora.   Envisioning the Project: Growing Skills and Business Opportunities Innovation isn’t new to Local 332; it’s one of the largest IBEW Local Unions in Northern California, known for its leadership in implementing cutting-edge technologies. Its union hall previously hosted the first commercial-scale solar array in San Jose . It was also the largest commercial solar array west of the Mississippi when it was installed in 2001. This was during the height of the electricity crisis in California when the state experienced several large-scale blackouts. Because the building also had a back-up battery system that enabled it to keep running during the blackouts, it gained notoriety in the local community. The union hall of IBEW Local Union 332. The solar array show here is the building’s previous installation, which was the first commercial solar array in San Jose, installed in 2001. Source: Google Maps.   In the nearly two decades since the historic installation, the early modules had degraded and the union was interested in replacing them. While they could have simply replaced the 30kW system, they had a vision to make the project much grander. Local 332 Business Manager Gerald Pfeiffer saw this as an opportunity for the union to demonstrate its expertise in renewable energy technologies through a larger and more complex project. But that wasn’t the only incentive to embark on this new project. California law has established aggressive targets for all new (and many existing) buildings to meet net zero energy standards in the coming decade . Under these requirements, buildings’ annual energy consumption must be less than or equal to the energy generated by onsite renewable energy systems. By 2020, all new residential buildings will be required to meet zero net energy requirements; by 2030, this will apply to all new commercial buildings and 50% of existing ones. Because of this, there will be a rapidly growing market for contractors with the skills to implement net zero energy projects. By expanding the scale of the solar installation and undertaking retrofits to meet the building’s full energy needs, Pfeiffer saw an opportunity for union members to gain skills in this burgeoning field. The project was implemented by Pacific Ridge Electric, a member company of NECA, co-founded by IBEW electrician Ken Spears, pictured above. Credit: NECA-IBEW Powering America, Electric TV- San Jose Net Zero video. While local IBEW and NECA members had prior experience with commercial solar installations, this project had special significance because it was undertaken in-house with one electrical contracting company, Pacific Ridge Electric, overseeing the solar project from start to finish. In many commercial solar projects and net energy retrofits of this scale, there are a large number of contractors managing different aspects of the work. This makes it more challenging for electrical contractors who want to transition into a leading role to gain familiarity with the full range of project requirements. By executing this project from start to finish, Pacific Ridge Electric provides a tangible and impressive example of NECA and IBEW members’ experience with solar installations of this scale.   Aurora’s software played an important role in facilitating the project, as did technical and financing assistance from NECA’s Energy Conservation and Performance (ECAP) Platform. Aurora was used to design the installation, and to  forecaste the energy production of different design configurations. ECAP, working alongside Pacific Ridge Electric, provided services such as energy auditing, economic modeling, and project management support, and connected the project with $3.2 million in financing—covering the full upfront cost of the building retrofit. The ECAP program’s financial and technical services are designed to make it easy for any member electrical contractor to implement a renewable energy project. IBEW and NECA - Representing the Workers and Firms of the Electrical Industry NECA and IBEW are two major organizations in the electrical contracting industry that today work closely together. IBEW is a union representing individual electrical workers, while NECA is a trade organization that supports member electrical contracting firms and advocates for the industry. The two organizations operate symbiotically providing education and training, business development, and other services to advance the industry. The International Brotherhood of Electrical Workers (IBEW)  is the most extensive electrical union in the world, representing approximately 750,000 active members and retirees.The organization was founded in 1891, in the early days of the electrical industry, to improve conditions for electrical workers including advocating for fair pay and improved training and safety for workers. Today, IBEW represents electrical worker members in a wide variety of fields, including utilities, construction, telecommunications, manufacturing, and government and still advocates for members' wages, benefits, and rights. The National Electrical Contractors Association (NECA)  is a trade association that represents businesses in the $130 billion U.S. electrical construction industry.While most NECA members are small businesses, large, multi-area electrical contracting firms are also members of the association.One of NECA’s current initiatives is its Energy Conservation and Performance (ECAP) Platform, which helps members get involved in energy efficiency and distributed generation projects. In Santa Clara County, California, cooperation between IBEW Local Union 332 and NECA includes the operation of a Joint Apprenticeship and Training Center (JATC)  where accepted applicants are provided with cutting-edge training for careers in electrical work, including training in solar PV design and installation. The apprenticeship program is notable, because it is a tuition-free degree program. Apprentices accepted to the program join the IBEW 332 union and are dispatched by IBEW to electrical contractors. They are paid for their work throughout the program and awarded a Journeyman certificate upon successful completion. Project designer Chris Smith poses in front of a mural in the entryway of the IBEW Local 332 union hall. Showcasing Solar Technologies and Workmanship The project also serves to educate people about solar technologies, helping turn visitors into solar enthusiasts. The IBEW lettering in solar panels to catch the eyes of incoming airplane passengers may be the most dramatic example, but the entire project was designed for people to see solar technologies at work. In addition to the 200 kW rooftop solar array, a number of other interesting technologies were included, including a battery system, electric vehicle charging stations, skylights containing transparent Building Integrated Photovoltaic (BIPV) panels, and a shade awning comprised of recycled panels from the building’s original array. While the panels have degraded significantly compared to their original efficiency, they still generate a small amount of supplemental power and by shading the windows they help save energy needed for cooling.   In the coming months, the building lobby will be outfitted with TV screens showing the real-time energy production of the system, as well as a live video feed of the array so visitors on the ground can see what it looks like. Those who desire will also be able to get a much closer look at the array by taking a tour of the array.  As part of the building upgrades, the ladder to the roof was upgraded to give visitors easy roof access. Eventually, Local 332 plans to add a rooftop deck with picnic tables, giving members and visitors ample opportunity to get a close-up view of a solar installation. Project designer Christopher Smith explains that even though solar is becoming more ubiquitous, rooftop solar installations aren’t always very noticeable or easy for the average person to get a close look at. “You probably drive past a thousand places driving between San Jose and San Francisco that have solar, and you just don't know because you can’t see it. Even when you do see a solar installation, you usually don't get to see everything that goes into it; you don't get to ask why they made different design decisions. We really wanted that [educational] aspect.”  “Aurora was key in that, because it allowed us to answer questions like, ‘Are people going to be able to get up there and walk around it? How's it going to look from up in the sky? How much is it going to cost?’ That allowed us to make sure that we weren't spending money needlessly.”   Employees of Pacific Ridge Electric, a NECA member company co-founded by IBEW union member Ken Spears, work on installing a section of the array. Paving the Way for Future Solar Work The project has only just been completed, but already there are indications that it is generating business benefits for IBEW and NECA stakeholders. Ken Spears, co-founder and Vice President of Pacific Ridge Electric which led the project installation, has already received numerous inquiries from businesses interested in adding commercial solar arrays to their facilities after seeing the work at the IBEW Hall. And, with multiple years before California’s net zero buildings requirements take effect, the project has created an avenue for NECA and IBEW to build a strong portfolio of these types of projects in the coming years in order to be well prepared for growing demand in this area. “This project returns Local 332’s building to legendary status within San Jose,” says Smith. “There are few retrofitted Net Zero Energy buildings in the world and a project of this magnitude demonstrates the enormous capabilities and importance of IBEW electricians and NECA contractors.” Credit: NECA-IBEW Powering America. Does your organization have an innovative solar project designed in Aurora that you’d like to highlight? We’d love to hear about it! You can submit projects using this form . Please note that Aurora Solar makes no guarantee that submitted installations will be profiled. ### Are Your Load Profiles for Solar Customers as Accurate as You Think? It’s a typical day at your solar installation company. You received an inquiry from a prospective customer who is thinking about installing solar on their house, so you sit down to put together a design and quote. As a savvy designer, you’re already using cutting edge remote design tools to assess the solar access potential of the home and create a custom solar installation. You begin the process by getting a sense of the customer’s energy consumption in order to design a PV system sized to their needs. As is often the case, you don’t have copies of the customer’s actual electricity bills, just the bill amounts they’ve provided. In most cases, this is a fine starting point—as long as you know the utility rate, tools like Aurora’s estimator can translate that total bill amount into an estimated energy consumption amount. These tools can even generate a representative load profile (also known as a consumption profile) depicting the amount of energy the customer uses throughout the day and year. Aurora builds a profile based on the typical patterns of energy consumption in a particular area. Given the bill values and utility rate you have from this customer, and their location in Southern California in a suburb of Los Angeles, a typical profile would look something like this: Aurora's interactive Consumption Profile tool estimates a customer's load profile based on the typical consumption patterns in their geographic area, as well as heating and lighting types, and whether they have amenities like AC, a pool, or an electric vehicle.  Unfortunately, this particular customer isn’t as typical as you may have expected. Little could you tell from their electric bill amount, but this is what their load profile actually looks like: This customer's load profile is actually quite different from typical energy consumption patterns in Southern California. As you can see from the shape, the bulk of their energy consumption is between 10am and 6pm.  It turns out this customer is a startup founder, feverishly work to launch the next Snapchat. They don’t yet have an office, so they spend most of their waking hours—into the late evening—working from their home. These late nights also mean that most days their small team gets a late start, ramping up their work around 10am. With multiple computers and electronics running, they have sizeable energy consumption during hours when most residential households would be out of the house at work or school. The end result of this customer’s unusual energy consumption patterns is that they’re actually consuming a lot less energy than a typical customer paying this amount on their electric bills—they’re just paying more per kilowatt hour. Why is that and why does it matter? This is because the customer is on a time of use rate, which charges them different amounts for electricity depending on the time of day that they use it. On this customer’s rate, peak hours—when electricity is most expensive—span from 10am to 6pm, precisely when they are using the most. As a result, this customer’s energy consumption is less than than most customers with equivalent monthly bills. In this case, the difference between the customer’s actual annual consumption and the typical consumption for these bill amounts is over 1000 kWh per year! As you can imagine, this has big implications for developing an appropriate solar design. Without knowing the breakdown of their energy consumption throughout the day and how much they consume during peak hours, the estimate of their annual consumption is far too high. If the customer’s load profile wasn’t verified with greater accuracy before installation, this could lead to designing a system that’s larger than their needs. Or, if the mistake were to be discovered before project completion, it might require a change order that costs your company considerable time and money.    Creating a More Accurate Load Profile While this is an extreme example (not all of your customers are trying to build the Next Big Thing in their living room!), it illustrates the critical importance of an accurate load profile to creating an appropriate design and accurately estimating the customer's savings from solar. Recognizing that the utility bill information that contractors receive from customers can vary widely, both in level of detail and structure of the information, we’ve been hard at work here at Aurora to give you a variety of options for arriving at an accurate load profile. Aurora is rolling out new options to make it easier to generate an accurate load profile for prospective solar customers.  Traditional Approaches to Load Modeling As we discussed above, one option for developing a load profile is to use software tools to generate an estimated load profile based on monthly energy consumption or bill amount. This is a great option for customers with typical consumption patterns, but as demonstrated, it has limitations when the customer’s patterns of energy use are outside of the norm. Alternatively, if your customer’s utility company offers Green Button data—a type of standardized file of their energy consumption throughout the day—software like Aurora lets you upload that file to generate a perfectly accurate historic model of their energy consumption down to 15-minute intervals. Unfortunately, only a limited number of utilities offer Green Button data. For these reasons, additional modeling options can be helpful. Green Button data is currently offered by a handful of electric utility companies around the United States. Source: Green Button Alliance.  New Tools for Accurate Load Profiles Starting next week, Aurora is excited to unveil some additional tools that offer solar designers greater ability to create an accurate load profile. First, if you have copies of the customer’s bills, you can now manually enter their consumption information in much more granular detail than just entering their monthly consumption or bill charge. Specifically, if the customer’s utility rate includes different time of use periods or different rates in different seasons, you can enter the amount of energy or the portion of their bill that corresponds to each billing period. This will allow you to manually generate a representative profile of how much they consume during those different periods. Aurora’s new Direct Input option allows you to manually enter a customer’s energy consumption during different time of use periods in order to generate a more accurate load profile. Additionally, we’re now making it easier to enter consumption information from the customer’s utility in different formats than Green Button data. If the customer’s utility offers it, you can now upload a CSV file of the customer’s historic energy consumption. Like Green Button data, this option allows for the entry of a customer’s energy usage over different time spans, such as 15-minute or 1-hour intervals. This also provides greater flexibility for modeling load profiles of customers in international markets. Clearly, getting an accurate consumption profile for your customer is critical to finding the best solar design for their needs, and to accurately representing their potential savings from solar. Next time you’re putting together a design, consider taking advantage of these additional tools to enhance the accuracy of your load profile modeling. ### The Green Bank Programs Making Solar Financing More Accessible, Part 2 The high upfront cost of solar PV systems has remained a major barrier to the growth of the solar industry. This is due in large part to the fact that it is difficult for customers to access loans and other financing for solar installations, compared to other big purchases like a car or house. However, green banks—a new type of financing institution created by governments to increase private sector investment in clean energy—are beginning to change this. In this two-part series, we explore green bank programs around the U.S. We spoke to officials at green banks around the country to understand the programs local solar installers should know about. In Part 1 of this series, we explored east coast green banks, which currently include banks in Connecticut, New York, and Rhode Island. In this article, we delve into the programs of green banks on the west coast and in Hawaii, and examine recent indications that the green bank model is gaining traction and may be coming to other states soon. Interested in a particular green bank? Choose a state to jump ahead to its green bank programs: Connecticut, New York, Rhode Island, California, Hawaii Speaking about the role of green banks in making solar financing more accessible, Gwen Yamamoto Lau, Executive Director of the Hawaii Green Infrastructure Authority (the green bank of Hawaii), likened them to another type of institution: “About 27 years ago, community development financial institutions (CDFIs) were formed all over the United States to finance low-income housing tax credit projects, because at that time banks considered these projects too risky. CDFIs were formed to mitigate risks for commercial lenders. Today, banks are very comfortable lending to these projects and CDFIs can help incubate other near-bankable projects. Green banks can play a similar role in helping clean energy projects get to a point where conventional lenders are comfortable supporting them.” California Lending for Energy and Environmental Needs (CLEEN) Center Like Rhode Island, California operates a green bank as division of the state’s infrastructure bank (“IBank”). The California Lending for Energy and Environmental Needs (CLEEN) Center  provides financing for municipalities, universities, schools, and hospitals (“MUSH” borrowers) as part of the state’s efforts to reduce its climate impacts. IBank explains that “In 2014, IBank Executive Director Teviea Barnes successfully launched IBank’s CLEEN Center, to help meet the State’s goals for greenhouse gas reduction by offering practical and sustainable financing solutions for public clean energy projects.”  Of relevance to solar contractors is the Statewide Energy Efficiency Program (SWEEP), which provides loans for solar projects (as well as many other projects including energy and water conservation efforts). In the last year, IBank approved nearly $4 million in direct loans under the CLEEN Center.  Among these was a $2,870,000 loan to the Monterey County Housing Authority for rooftop and carport solar installations, as well as energy efficiency and HVAC upgrades. Get Involved California solar contractors who work on commercial and industrial scale solar may want to highlight this potential funding source when talking to MUSH customers. The CLEEN Center does not maintain a registry of approved contractors for SWEEP projects; however, technical assistance is available for solar and other contractors who are interested in providing services under the SWEEP program. Hawaii Green Infrastructure Authority Hawaii’s green bank, the Hawaii Green Infrastructure Authority (HGIA), focuses specifically on solar PV. Hawaii has the highest electricity prices in the nation and a state commitment to reach 100% renewable energy by 2045 , so HGIA’s mandate includes supporting the growth of solar energy and making it more accessible to underserved communities who can most benefit from energy savings. HGIA pursues these goals through a solar loan program (Green Energy Market Securitization, or GEMS), which facilitated $30 million of solar projects in Hawaii over the last year. Green Energy Market Securitization (GEMS) Program HGIA’s Green Energy Market Securitization (GEMS) Program offers both residential solar loans  and commercial solar loans , which serve small businesses, nonprofits, and multifamily rental projects. GEMS loans have a number of unique features to make them more accessible—especially to lower-income customers. First, the bank offers up to 20-year loans at a fixed interest rate. This is much longer than loans offered by most banks, allowing for lower monthly payments. Further, the bank has no pre-payment penalty and will consider customers with credit scores as low as 600 (traditional banks typically require at least a 640). Additionally, while most banks consider a customer’s debt-to-income ratio when determining whether to approve a customer’s loan, HGIA does not. Instead, HGIA requires that projects result in a 20% savings for the customer (post-solar utility bills + loan payments must be 20% less than the customer’s pre-solar utility bills). This provides a good assurance that loans will be repaid, while making it possible to approve more customers.   GEMS residential solar loans are directly financed by HGIA, while GEMS commercial loans are offered in partnership with conventional banks. For these commercial loans, HGIA co-lends alongside the customer’s bank of choice and its loan is subordinate to the bank loan (i.e., it has second priority for repayment). This mitigates risk for private lenders, allowing them to offer better rates than they normally might. Commercial solar loans may be made directly to building owners to install and own a PV system.  Alternatively, for nonprofits or other organizations that can’t take advantage of solar energy tax credits, the loan can be made to a “project sponsor.” In this case an investor purchases and owns the PV system with a GEMS loan and sells the energy to the nonprofit via a long-term power purchase agreement. A unique feature of this solar financing structure is that HGIA offers nonprofits the option to eventually take on the loan from the project sponsor (typically after year seven, when the project sponsor has utilized tax credits and depreciation benefits). This provides non-profits a mechanism to own their own PV systems and have free solar energy after the loan is repaid. Possible Future Programs HGIA is also seeking approval to offer on-bill financing for solar, which would allow customers to repay their solar loans through their utility bills. Executive Director Gwen Yamamoto Lau explains that “Having an on-bill financing option will really allow us to benefit the underserved—especially the low-income ratepayers and the renters, who have not previously been able to participate....  we receive calls from contractors and landlords on a regular basis asking about its status, because... this program will enable contractors to serve so many more homeowners and renters that they have not been able to serve before.”  Get Involved On its website, HGIA maintains a list of approved installers who can offer GEMS-financed projects. To enroll , contractors must attend a training, have appropriate licenses and insurance, and at least a “B” rating from the Better Business Bureau. There is a $100 application fee. What Does the Future Hold for Green Banks? Given the success of early green banks, and increasing leadership of states and cities in responding to climate change , this model is likely to play a growing role in driving clean energy market growth. Already a number of other states are exploring the creation of a green bank including Delaware, Virginia, Colorado, Missouri, Massachusetts, Washington DC, and, most recently, New Jersey . Additionally, existing green banks are working to expand the model by sharing their insights. In 2017, the Connecticut Green Bank was awarded the Innovations in American Government Award by Harvard University. With the $100,000 prize and a matching amount of its own funds, the Bank has committed to creating a Green Bank Academy, to support other jurisdictions in replicating the green bank model. “NY Green Bank will also work with other States and philanthropic entities to help establish local green banks in other states. In support of these new green banks, NY Green Bank may provide financing along with mid- and back-office services, due diligence, underwriting and general technical support,” says COO Caroline Angoorly. In other exciting news, New York Governor Andrew Cuomo recently announced that NY Green Bank will explore options to raise at least an additional $1.0 billion in private sector funds, allowing it to consider investable projects that extend beyond the boundaries of New York state! ~~~ As a solar contractor, if there’s a green bank in your area it can present valuable opportunities to connect with new customers. If your state doesn’t have a green bank, keep an eye out for the expansion of green bank activities in your area. Or—if you’re interested in taking a more active role in advocating for the creation of a local green bank—organizations like the Coalition for Green Capital  and the Green Bank Network  offer resources and expertise. ### The Green Bank Programs Making Solar Financing More Accessible, Part 1 The solar industry has come a long way since its early days when solar PV was a rare novelty. Robust markets have sprung up in many U.S. states—but solar is still far from mainstream. As any solar contractor knows, solar installations remain out of reach for many interested customers due to the high upfront cost. For other expensive purchases, like a car or house, financing is relatively accessible, putting these resources within reach for much of the population. But financing for solar is often hard to secure because many private lenders are unfamiliar with and hesitant to finance clean energy transactions. This lack of capital has been a major barrier to the growth of the industry. But that's starting to change in some states, through the work of green banks. Green banks are a new type of finance institution established by governments to accelerate the growth of clean energy markets, as discussed in our overview article. For this series, we spoke with staff at green banks around the U.S. to determine what programs solar contractors in different states should be aware of and offer insight into the diversity of approaches green banks are applying to help solar markets grow. Interested in a particular green bank? Choose a state to jump ahead to its green bank programs: Connecticut, New York, Rhode Island, California, Hawaii A core characteristic shared by green banks is that they use limited public funds to drive greater private sector investment in clean energy projects. They do this by offering a variety of services that mitigate risk for private lenders to provide financing for solar and other clean energy projects, since these sectors are relatively new to most traditional banks. While green banks share a common purpose, the structure of their programs—from the types of products they offer to the customers they serve—varies depending the local context. In this article, we dive into green banks on the east coast of the United States, highlighting the types of products they offer, and the programs solar installers should know about. In the second part of this series, we explore the programs of green banks on the west coast of the U.S. and in Hawaii. Connecticut Green Bank Established in 2011 by Connecticut Governor Dannel Malloy as the first green bank in the country, the Connecticut Green Bank has had dramatic success growing the state’s clean energy markets. It reports that for every dollar of public funds invested  at least $6 of private investment in clean energy have been deployed, totalling over $1 billion of cumulative investment in more than 20,000 clean energy projects. This has enabled  over 215 megawatts of clean energy, 2.6 million tons of avoided of emissions, and reductions of 20-30% in the cost of renewable energy in the state! It has also driven the creation of an estimated 13,000 clean energy jobs. The bank offers two key solar financing programs of relevance to contractors operating in the Connecticut: its “Smart E-Loan” for residential customers, and its “C-PACE” program for commercial customers. By covering the upfront cost and offering low interest rates, these programs can make a solar purchase much more feasible for prospective customers. “Smart-E” Loan Program Through its Smart-E Loan program , the Bank partners with local banks and credit unions in the state to offer low-interest, no money down loans for homeowners to cover the cost of a solar installation (as well as other home energy upgrades). C-PACE Connecticut’s Commercial Property Assessed Clean Energy (C-PACE) program  offers loans to commercial property owners to cover 100% of the cost of installing solar or other clean energy technologies. Eligible projects must have a savings-to-investment ratio greater than one—meaning that bill savings exceed loan payments so customers save money immediately. This is made easier by the fact that the loans can be repaid over up to 20 years. Like other PACE loans, the loan is repaid as part of property taxes on the site and if the property is sold the loan transfers to the new owner, requiring no pay-off upon sale. Get Involved Connecticut Green Bank maintains a database of contractors that are approved to offer Smart-E  or C-PACE  projects. Registration is simple; contractors must attend a training, be properly licensed and insured, and have no negative Better Business Bureau ratings. Additionally, the C-PACE program is introducing badges that acknowledge a contractor’s level of experience  with the program, giving experienced contractors an edge in connecting with prospective C-PACE customers.    NY Green Bank The green bank of New York state, NY Green Bank, was established in 2013 as the second in the nation. Its approach to growing clean energy markets differs from the programmatic approach of many other green banks. It does not have set programs, rather it operates an open RFP process  and has flexibility and discretion in the types of financial services it can offer depending on what strategy would be most advantageous in a particular case. Explaining her institution’s role, Caroline Angoorly, Chief Operating Officer of NY Green Bank, notes: “NY Green Bank is positioned at the near-frontier of clean energy financing markets,” working to address market barriers and financing gaps in clean energy investment. “These types of gaps and barriers exist where clean energy financing structures diverge from traditional project financing approaches and may involve structures, parties, credits, technologies and transaction sizes which may be less well known or common.” NY Green Bank focuses on multi-million dollar transactions  with businesses, such as solar developers and financiers, alongside private sector lenders. To be considered for funding, projects must have the potential to drive market transformation, in addition to reducing the state’s greenhouse gas emissions and providing a positive financial return for the bank. Explaining how the bank evaluates potential transactions, Angoorly notes that projects must meet three minimum investment criteria: "Transactions will have expected financial returns such that revenues of NY Green Bank on a portfolio basis will exceed operating costs and expected portfolio losses – i.e., products are provided at market rates; Transactions will contribute to financial market transformation (e.g., multiples of capital mobilized to fund total project costs and potential to drive the type of volume, including scalability and replicability, that can materially and sustainably expand markets); and Transactions will have the potential for energy savings and/or clean energy generation that will contribute to greenhouse gas (GHG) emissions reductions in support of New York’s clean energy policies.” As of the last fiscal quarter, NY Green Bank had committed over $440 million in clean energy investments in the state, including loans of $20 million to Vivint Solar to expand power purchase agreements (PPAs) in New York, $12 million to Cypress Creek Renewables to finance interconnection fees for up to 72 community solar projects, and $50 million to Solar Mosaic to offer solar loans. Get Involved Because NY Green Bank operates at a wholesale level, they do not offer retail-level solar financing with which small and medium-sized solar contractors can connect customers. However, large solar companies may want to consider applying for NY Green Bank funding  to expand their operations in New York state when they encounter gaps in the financing available from private lenders. Rhode Island Infrastructure Bank The Rhode Island Infrastructure Bank (RIIB) was created by expanding the responsibilities of an existing state institution, Rhode Island’s Clean Water Finance Agency, to include clean energy financing. As Michael Baer, Managing Director of the Rhode Island Infrastructure Bank, explains, “We have a broader mandate than typical green banks, such as those in New York or Connecticut; we provide structured financing to a handful of sectors.” In addition to its programs that fund clean energy projects like solar PV, RIIB financing supports projects for drinking water and wastewater treatment facilities, transportation infrastructure, and the restoration of brownfields (contaminated land). RIIB offers two programs of relevance to solar contractors in Rhode Island: its Efficient Buildings Fund (EBF) and its Commercial Property Assessed Clean Energy (C-PACE) program. Efficient Buildings Fund The Efficient Buildings Fund  is a financing program for the purchase of solar PV and energy efficiency projects. The program provides long-term loans (up to 15 years) for municipalities and quasi-public entities, such as public housing, school districts, and public universities. In addition to the cost of a solar installation the loans can also cover related upgrades needed for the project, such as a new roof for an old building. Like Hawaii’s solar loan program, projects are required to result in at least a 20% reduction in utility bills for the property to be eligible for funding. Because these tax-exempt public customers can’t take advantage of tax credits or accelerated depreciation that make solar more accessible to other types of customers, RIIB’s programs are designed to help put solar within their reach. Additionally, as Baer explained, municipalities are often disproportionately impacted by the high cost of energy in Rhode Island because they tend to have many old buildings. Solar contractors in conversations with prospective municipal customers may want to highlight this source of funding. C-PACE Like Connecticut’s Commercial PACE loan program (discussed above), Rhode Island’s C-PACE program  provides a means for owners of commercial buildings in participating municipalities  to install solar with no upfront payment and long-term repayment over up to 25 years through the building’s property taxes. (The program can also provide funding for other types of projects like energy efficiency and water conservation upgrades or electric vehicle charging stations.) Through this program, RIIB connects eligible projects with funding from private lenders, providing oversight and standardization so that lenders can be comfortable with the quality of the projects. Get Involved Any appropriately licensed solar contractor in Rhode Island can act as the contractor for an Efficient Buildings Fund project. To become an approved contractor for C-PACE projects , companies can submit an application , which includes demonstration of appropriate licensing and references. Companies must also complete a training before being listed in the program’s contractor directory. Green banks provide important opportunities for solar contractors to serve new customers who might not be able to consider a solar installation without financing options. If there is a green bank where you work, it’s a good idea to get familiar with its programs. In Part 2 of this series, we detail additional green bank programs in California and Hawaii. We also examine indications that the green bank model is just getting started—including important announcements from Connecticut Green Bank and NY Green Bank about their efforts to support other states interested in launching their own green banks! ### The Aurora Blog’s Top 10 Articles of 2017 As 2017 draws to a close, here at the Aurora Blog we’re taking a look back at our work and what has resonated most with readers. We’ve achieved a lot since we launched the blog a little over a year ago. We’ve published 80 articles—spanning topics from solar engineering to interviews with industry leaders, from analyses of utility rate changes to sales and finance tips. Along the way, our intent has remained the same: to produce high-quality, educational content that makes a positive difference in the work of our solar industry readers. While we’re proud of all of our articles, some really stood out above the rest. In case you missed them, here are some of our most read and shared articles from the last year organized by topic. Solar Design & Engineering Designing a solar installation can be a complex process. Since a huge focus of our work at Aurora is making it easier for solar professionals to design optimal solar installations quickly and easily, we thought it was fitting that two of our top-performing articles focus on the intricacies of solar design. Shade Losses in PV Systems and Techniques to Mitigate Them  Shade can reduce a solar panel’s power output is reduced by much more than you might expect: shading just one out of 36 cells in a small solar module can reduce power output by over 75%! In addition to explaining this phenomenon, we explore some of the ways that solar designers can mitigate the impacts of shade and maximize the output of a system. Choosing the Right Size Inverter for Your Solar Design: A Primer on Inverter Clipping  There are many considerations that go into designing a cost-effective solar project that meets the energy production needs of a client, but one of the key factors to consider is the inverter you choose and how much power it can output. In this reader favorite we delve into technical issues that solar designers should be aware of when selecting an inverter. In some cases, it may make sense to oversize a solar array compared its inverter (meaning the inverter’s power rating is slightly less than what the solar array could produce at its maximum power output). This is because throughout most of the day the array will not be producing at peak power, and will be operating below the inverter’s power rating. During those hours, having additional panels means that you can capture more energy. However, when the array does reach its maximum power output, the amount of energy that can be captured will be limited by the inverter’s capabilities (an effect known as inverter clipping or power limiting). We explain how to assess the pros and cons of solar designs that may experience inverter clipping, and how to account for these impacts when estimating the energy production of a design. Solar Policy Insights and Updates on Utility Rate Changes Policies and utility rates have huge impacts on the solar market and the economics of going solar. With changes seemingly happening all the time, it can be hard to keep up and see the big picture. Another of our major focuses here at the Aurora blog is keeping tabs on some of the major utility changes for solar customers and detailing what the impacts will be for solar customers, as well as taking a broader look at the policy landscape to understand emerging trends. Two of our top articles from 2017 offer perspectives on solar policies. Getting to 100% Renewable Energy: An Interview with David Hochschild of the California Energy Commission  We had the pleasure of interviewing California Energy Commissioner David Hochschild to learn more about how California policies are evolving as the state pursues its ambitious climate change targets, and to get his take on clean energy policy more broadly. Check out this article (featured in Greentech Media!) for insights on emerging solar markets, how our electricity markets will need to evolve as more solar is installed, and how California is working towards its mandate of sourcing 50% of the state’s electricity from renewable energy by 2030! The Ultimate Guide to NEM 2.0: Non-Bypassable Charges Explained  NEM 2.0, California’s updated net metering approach, went into effect this year and changed the way that solar customers are compensated. Even if you’re not based in California, getting up to speed on what’s changing under NEM 2.0 may be a good idea. With the highest levels of solar capacity in the U.S., California is leading the way on solar policies that other states may explore as they add more solar. Resources for Running a Successful Solar Business With the solar industry getting increasingly competitive, solar contractors need to be savvy to position themselves for success. At the Aurora Blog, we’ve been on the lookout for insights to help solar professionals manage their businesses more effectively. From in-depth research to understand what makes a solar sales proposal effective to interviews with experts, these articles offer practical tips for improving your solar operations. What Makes a Solar Sales Proposal Successful? 5 Tips for Proposals That Close  Based on a months-long research project, this article tackles an important subject for solar contractors: sales proposals and what makes them effective. After all, when the design is finished and your sales conversations are over, your proposal is the customer is left with as they sit down to choose between you and your competitors. What does your proposal say about you—and what can you do to make it as strong as possible? Check out this article to find out! Solar Sales Part 1: The Importance of Branding with Katherine Glass  Brand is a word that every business owner has heard, but few have a clear understanding of how to build it effectively. Katherine Glass is an expert in helping companies create their marketing and branding strategy, having advised leading name brands from Delta to Starbucks. She interviewed solar customers and contractors to identify industry branding and marketing best practices, and here she shares her insights on what solar companies can do to build a strong brand that will help their business grow. These Practices Will Make Your Solar Business More Successful: Pro Tips from Pamela Cargill  Pamela Cargill is Principal of Chaolysti, a consulting firm that helps residential solar contractors succeed and reach profitability. She has an impressive track record of scaling solar installation companies, and has worked on all aspects of residential solar operations. Cargill started her solar career as the second employee of a small solar installation company and played a key role scaling it into a $1M 8-person operation and, after two acquisitions, into a $60M regional installation leader. We were excited to have the chance to interview Cargill and share her advice on operational changes you can implement today to make your solar business more successful. Solving Clients' Needs: Advice for Solar Companies from a Nobel Prize-winning Economist  Nobel Prize-winning economist and long-time Aurora adviser, Dr. Myron Scholes shares his insights on how solar companies can position themselves for success in the current market. Dr. Scholes discusses how technology can help companies understand what their clients want and how they can build trust with customers. Technologies Changing Solar Design Here at Aurora, we’re always looking for the latest technology to make remote solar design faster, easier, and more accurate. These articles highlight some of the technology developments that can help make solar contractors’ work more efficient.  How LIDAR is Transforming Remote Solar Design  Although not a new technology, the increasing accessibility of LIDAR data is a gamechanger for remote solar design. Since the 1960s when LIDAR was first used by NASA scientists for research purposes, it has captured the imagination of professionals that want to remotely make precise measurements or three-dimensional models of an area. We explain how LIDAR data is collected and how it is being integrated into the solar design process. How Computer Vision Is Revolutionizing Solar Design  Computer vision is an emerging field that uses computers to interpret visual images. In some of its current applications for solar design, computer vision can be used to take accurate measurements of different parts of a solar project site, like measuring the height of a tree, the pitch of a roof, or the width of a dormer. It can also be used to automatically detect similar structures on a roof, such as automatically detecting all the vents and skylights on a commercial roof. These applications can enhance design accuracy and significantly speed up the time needed to create a design. We sat down with our expert team of computer vision engineers to understand how computer vision works and how solar designers can integrate it into their work. We’ve come a long way since we launched the Aurora blog in September of 2016, but our ambition remains the same: to generate high-quality, educational content that enriches the solar community. We’re thankful to to all of our readers and hope our articles have made a positive difference in your work! ------ Please note: We’ll be taking a brief break for the holidays, but look forward to publishing many more articles in 2018. Do you have feedback you’d like to share or topics you’d like to see us address in future articles? Comment below, connect with us on Twitter, Facebook, or LinkedIn, or email gbrown (at) aurorasolar.com. Thank you! ### A (Solar) Christmas Story With the holidays just around the corner, we were intrigued by the idea of brightening up an seasonal landmark with solar energy. So when we discovered that Ralphie Parker’s home from the iconic 1983 movie A Christmas Story is a real house in Cleveland, Ohio (restored to all its movie glory and open to the public!) we seized the opportunity create a custom solar design using Aurora. In our latest Solar Landmark article, we walk through the process of modeling this home, designing a custom solar installation, and analyzing the financial return on the system. Figure 1. The house from 1983 movie A Christmas Story in Cleveland, Ohio. Source: Google Maps Street View, image capture September 2016. ©2017 Google. Modeling "A Christmas Story House" To construct an accurate 3D model of the site as the starting point for a good solar design, we used Aurora’s SmartRoof modeling tool. SmartRoof’s ability to automatically infer the internal structure of the roof based on its outline made the process faster and easier. To build the roof model, we took advantage of the fact that SmartRoof can merge multiple roof shapes together, allowing solar designers to create complex roofs from multiple, simpler parts. First, we outlined the perimeter of the roof; SmartRoof automatically inferred the structure of the dormer on the north-facing roof plane (Figure 2 below). SmartRoof uses hipped roofs as its default, but allows designers to “unpitch” roof planes with the click of a button to model other roof types (Figure 3 below). A few minor adjustments produced a preliminary starting point for the site model in a matter of seconds (Figure 4). Figure 2. SmartRoof infers the internal structure from the roof outline. It defaults to hipped roofs (a roof type with diagonal ridge lines extending from the corners to central ridge line), but designers can “unpitch” sections to create a gable roof (see Figure 3 below). Figure 3. By right-clicking on unnecessary roof planes (resulting from SmartRoof's hipped roof default), we were able to "unpitch" them. This resulted in a traditional gabled roof as our preliminary roof model. Figure 4. Our preliminary roof model; by right-clicking on the roof polygon, we were able to specify that this roof is two stories high. We then added the roof of the porch by drawing a separate polygon which SmartRoof merged into the structure appropriately after we specified that it was at a height of one story. From there, there were a few unusual aspects of the roof that had to be taken into account to create an accurate site model, particularly that the the south-facing roof plane is comprised of planes at two different pitches, which are straddled by a dormer, as you can see in the Google imagery below. Figure 4. 3D aerial view of the Christmas Story House. As you can see, the southeast quadrant of the roof (where the two skylights are) has a much less steep pitch than the rest of the roof. Source: Google Maps imagery 2017. ©2017 Google. To model the southeast portion of the roof (or the back right section if you were facing the house) we added a separate rectangular roof segment, which SmartRoof automatically integrated into the rest of the roof structure (see Figure 5). Then, we adjusted the pitch of each of the roof faces to reflect their actual pitch. Figure 5. Adding a roof plane as a separate section which will be merged into the rest of the roof model. This enables us to specify a different pitch for this section of the roof. It’s evident from looking at the house that the roof has a very steep pitch—perfect for shedding snow in the cold winter months! But to make sure we got it just right, we used Aurora’s NREL-validated 3D Metric Estimation tool, an application of computer vision, to measure the pitch. Figure 6. Measuring the pitch with Aurora’s 3D Metric Estimation tool reveals a pitch of approximately 46 degrees. Finally, to complete the key elements of the roof structure, we inserted a dormer (using the dormer tool) and aligned the ridge of the dormer with the fold between the two roof planes. We also added obstructions to the roof to ensure that the model provided an accurate reflection where panels could be placed and what shading they would encounter. In this case, there are two skylights towards the back of the house, as well as some vents along the ridge line. Figure 7. The resulting 3D house model, after adding the south-facing dormer, southeast roof plane, and obstructions.  With these adjustments, and the addition of trees on the property (to ensure correct shading analysis) we had a beautiful and accurate 3D model of the house that Ralphie would have recognized as his own: Figure 8. Two different views of the completed site model. The image on the right includes the sunpath as well as trees around that house that could cause shading. Creating a Custom Solar Design Aurora’s irradiance map feature made it easy to identify the best places to put solar panels (i.e. areas with the highest irradiance). Aurora takes into account local weather data and the industry-standard mathematical model to assess the available solar energy at each point on the roof. Figure 9. Aurora's irradiance engine produces a map showing the solar access value at each point on the roof surface (brighter areas indicate higher solar insolation). This remote analysis been validated by NREL to be comparable in accuracy to on-site measurements.  Rather than iterate through countless potential designs, we decided to use Aurora’s AutoDesigner—which automatically identifies the best solar design for a particular site given a particular energy offset or bill savings target. Using a genetic algorithm that mimics the evolutionary process, the AutoDesigner evaluates potential combinations of panel locations, components, and stringing configurations, and identifies the option that gets as close as possible to the target while minimizing system cost. We initially set a target of offsetting 80% of the home’s energy consumption. Unfortunately, due to significant shading, and obstructions (specifically skylights) that prevented panel placement in one of the high irradiance areas, Aurora found that the most we could offset was 27% of the Parkers’ energy consumption. While not as much as we’d hoped, it could still provide some helpful electric bill savings. The resulting system from the AutoDesigner was a 2.0 kilowatt system sited on the southwest quadrant of the roof, with an estimated cost of $6,030 (based on a cost per watt of $3). Having identified a design, and used Aurora’s design validation function to ensure that there were no electrical or mechanical errors (such as invalid stringing configurations, module overlap, or setback violations), we proceeded to look at the energy production and resulting bill savings of the proposed system. Figure 10. A solar system design for the Christmas Story house. Based on the design specifications and the conditions at the site, Aurora’s performance simulation engine estimates the system would produce 2,218 kWh of electricity over the course of the year, and provided a monthly breakdown of that production: Figure 11. Estimated monthly energy energy production. The resulting loss diagram detailed exactly how much energy is lost from different sources compared to ideal conditions. Figure 12. Loss diagram for the design.  Although not enough to meet all of the Parkers’ electricity needs, the energy produced by this system would offer some valuable environmental benefits. Sourcing 27% of their electricity consumption with renewable solar energy would provide the environmental equivalent of taking 8 cars off the road, growing 883 tree seedlings for 10 years, or driving 82,007 fewer miles! Beyond that, solar has been shown to have valuable impacts on the property values of homes where it is installed. According to a study by Lawrence Berkeley National Labs, a solar installation can improve a home’s market value by 20%! And thanks to a local Cleveland policy that waives increased property tax assessments resulting from renewable energy investments for 10 years, the Parkers could benefit from added home value without increased property taxes. Financial Analysis To understand how much Ralphie’s family could save with solar, we turned to Aurora’s financial analysis tools. We started by applying the local utility rate for residential customers in this area: Cleveland Public Power’s Residential Rate. Ohio has net metering and Cleveland Public Power customers who go solar remain on the same rate. Unfortunately, the low cost of electricity in this area, the structure of the local utility rate,  and Ohio's limited solar incentives make a financial return on a solar purchase challenging. Cleveland Public Power offers a declining block rate, meaning the per kWh price of energy actually declines after you consume over 1000 kWh! Summer rates for this rate schedule are $0.0774 per kWh up to 1000 kWh, and $0.0752 per kWh for all subsequent consumption. Under these conditions, Aurora revealed that it would take just under the full 25-year life of the system to recoup the upfront cost! Given the challenge of a cash purchase of a solar system, we decided to look at other financing options as well. Ohio law allows for power purchase agreements (PPAs), so we took a look at what the financial impacts would be if the Parkers signed a PPA agreement with a company that would own and maintain the system and sell them the resulting solar energy at a lower rate than the utility. Assuming a hypothetical PPA that would allow the Parkers to purchase the energy produced by their solar system at a rate of $0.06 per kWh, with a 2% annual escalation over a 20-year contract, the solar project looks a lot more appealing. Without having to take on the initial cost of the system, the solar installation would immediately be cash flow positive, and savings would increase over time as utility rates rise (we assume a 3% utility rate escalation). Figure 13. Estimated cashflows from a power purchase agreement. So there you have it: a solar design for this famous Christmas landmark! Maybe Santa will check this system off the Parkers’ lists. Credits: © Turner Entertainment.  After all, it’s a Christmas present the whole family could enjoy… unlike the BB Gun that Ralphie longed for, his parents wouldn’t have to worry about him “shooting his eye out”—and perhaps knowing that their electricity was coming from cleaner sources would be some comfort to Mrs. Parker when her husband insists on displaying the infamous leg lamp! We hope this design brings you some holiday cheer and wish you a joyful season!     Cover Image Credit: © Turner Entertainment.  Leg Lamp Credit: A Christmas Story House & Museum. ### SDG&E’s New Time of Use Rates: How Solar Savings Are Changing, Backed by Data In the last few months, utility rate changes have gone into effect with important implications for current and prospective solar customers in the San Diego area. San Diego Gas & Electric’s new rates became active on December 1, 2017 (right on the heels of standard rate increases implemented on November 1). The most notable of these changes are SDG&E’s new hours for peak pricing in time of use (TOU) rate schedules: 4pm - 9pm, adjusted from previous peak hours of 11am - 6pm. This is significant for solar customers because it shifts the peak cost of electricity from the middle of the day, when many solar customers are exporting energy to the grid, to the afternoon and evening when PV systems are shutting down for the night. This will cut bill savings from installing solar—but by how much? In today’s article, we explain what’s new under these rate changes, and dig into what this means for solar savings. Using hundreds of SDG&E territory solar projects designed in Aurora, we analyzed the financial implications of these changes and identified the key takeaways that San Diego area solar contractors and their customers need to know. Even if you aren’t in SDG&E territory, getting a sense of these time of use schedule changes may be a good idea. With the highest levels of solar capacity in the U.S., California is grappling with grid management challenges that other states may eventually face as they approach higher levels of solar. Because solar installations produce energy during daylight hours but not in the evening as people are coming home, there is high demand for energy in evening hours. (This phenomenon is known as the duck curve , because of the duck-like shape exhibited in graphs of net electricity load, as illustrated in Figure 1 below). As a result of changes in energy consumption and production patterns as more solar is added to the grid, utilities like SDG&E are implementing changes to time of use rates to price electricity higher when there is higher demand.   Figure 1. The increasing duck curve in California, from 2012 to 2017, as more solar has been added to the electric grid. Source: U.S. Energy Information Administration. What’s Changing Under SDG&E’s New TOU Rates? These changes are the first implementation of SDG&E’s General Rate Case Phase 2 (a process with the California Public Utilities Commission to determine adjusted rate schedules for different classes of customers). The new TOU periods reflect changing trends in the times when there is the greatest electricity demand on the grid. Specifically: The higher “Summer Season” rates now run from June to October rather than May to October Peak TOU Pricing is now from 4pm - 9pm The following residential electric rates have revised TOU periods: TOU-DR DR-SES EV-TOU EV-TOU-2 The following commercial electric rates have revised TOU periods: A-TOU TOU-A AL-TOU A6-TOU DG-R OL-TOU For existing solar customers: residential customers can keep their existing time of use schedule (e.g., summer peak hours of 11am - 6pm for DR-SES) for five years after permission to connect, and commercial customers can keep their rates for ten years; however, the cost of electricity in different time periods is changing (see below). To more clearly understand the financial implications of these changes, let’s look at the case of summer rates under DR-SES, the special TOU rate for solar energy systems. In the original rate schedule (Figure 2 below), peak hours were from 11am - 6pm, and the cost of electricity during peak hours was a little more than twice semi-peak pricing. Figure 2. Time of use periods and corresponding electricity prices under SDG&E’s DR-SES rate (a special time of use rate for solar customers) prior to changes implemented December 1, 2017. (Note that $/kWh rates are rounded to the nearest cent.) Under the new changes, both new solar customers and existing, grandfathered customers are affected. The DR-SES for new customers keeps a similar price difference between peak and semi-peak hours, although the peak hours are shifted later in the day when less PV production occurs (see Figure 3 below). Figure 3. Revised time of use periods and corresponding electricity prices under SDG&E’s DR-SES rate, effective December 1, 2017 for systems permitted after March 2017. (Note that $/kWh rates are rounded to the nearest cent.) For grandfathered customers, the hours for each time period remain the same, but the cost of energy during these time periods has changed (see Figure 4 below). SDG&E has slashed peak pricing, meaning customers get less for exports. SDG&E has also increased semi-peak pricing to just a few fractions of a cent less than peak pricing, meaning customers have to pay more for electricity imported. Figure 4. Updated electricity prices for existing SDGE&E solar customers who retain their existing time of use periods under the DR-SES rate as a result of grandfathering policies. (Note that $/kWh rates are rounded to the nearest cent.) How Are Solar Savings Impacted by These Changes? In order to examine how the proposed rate changes impact the utility bills of existing solar customers, we looked at ~200 solar projects designed in Aurora that used customer’s green button data and a reasonably sized PV system. Using Aurora’s solar financial analysis features, we assessed how customers bills would change under the new utility rate structures (a similar methodology to our analysis of NEM 2.0 policies). Impact on Savings for New Solar Customers Let’s first look at the impact of the delayed peak hours for new systems that are not eligible to be grandfathered in under the old time of use schedule:  Figure 5: Annual bill increases for solar customers on SDG&E’s DR-SES rate as a result of new time of use rates implemented December 1, 2017 (based on financial analysis of real solar designs created in Aurora). The average bill increase is shown for different ranges of net energy consumption. Figure 5 shows the average annual bill difference for solar customers with different energy offset levels (each bar represents a certain range of net energy consumption). Systems on the left tend to produce more power than they consume, while systems on the right offset less of the owners’ energy consumption. What this shows is that new systems designed to meet or exceed the customer’s energy usage will continue to have similar bill savings under the new DR-SES rates. However, designs that don’t entirely meet the customer’s energy needs may be a harder sell, since the bill savings could be $100 to $500 less per year. While that does sound bad, it isn’t going to make it impossible to sell a PV system to a homeowner even if you can’t fit enough solar to fully offset their energy consumption. Of the proposed systems that would see a reduction of $250 or more in utility bill savings, the pre-solar utility bills were typically at least $2,500 per year; this means that these PV systems' returns are decreased by about 10% or less. So, even with these less favorable utility rates, a new solar customer will still see at least 90% of the savings that a customer who signed up a year ago will be getting. Impact on Savings for Existing Solar Customers Existing customers who received permission to operate (PTO) before July 31, 2017 are allowed to keep their existing TOU periods for five years after their PTO date. After five years, they will be transitioned to the prevailing TOU schedule. However, the utility may change the relative value of energy in each TOU period, as they have done in this case. Existing SDG&E customers on DR-SES will now have almost identical electrical rates of $0.429/kWh during peak and semi-peak periods (semi-peak is 0.014 cents/kWh less), rather than $0.26 for semi-peak and $0.53 for peak hours. This means that DR-SES customers will receive less money for exported energy in the middle of the day, and pay more in the “shoulder hours” for any imports. We analyzed the same 200 systems, comparing their bills under the existing DR-SES to the new DR-SES for grandfathered systems. Here’s what we found: Figure 6: Annual bill increases for existing solar customers on SDG&E’s DR-SES rate, who retain the same time of use hours, but with new electricity prices for each time period, effective December 1, 2017. The average bill increase is shown for different ranges of net energy consumption. Once again, customers using less than 500 kWh / year with solar should see no change in their bill, and likely won’t see much of a change at the end of their five-year grandfathering period. However, customers with larger amounts of consumption will see their bill increase by about $120 for every 1000 kWh of net consumption. For many of these homes, that amount is small compared with their pre-solar utility bills. There are also a few notable sites that have a high annual net energy consumption but would not see a change in their utility bill. Most of these are relatively small systems that only offset 40-60% of their annual energy usage with solar. The reason that these don’t have very large bill increases is because the amount of net exports they have during the day tends to be low, so they aren’t hit as hard by the decrease in credits for export during peak hours. Although these time of use rate changes are not favorable for solar customers, it is good to know that the impacts will be minimal for systems that offset all of a customer’s electricity usage. Where possible, this means that San Diego area solar contractors should design systems that offset as much of a customer’s energy load as possible in order to maximize their solar savings. One benefit of using Aurora is that you can easily analyze the financial impact of different solar designs based on the customer’s utility rate so you can be sure you’re offering prospective customers the best option.  With utilities increasingly exploring rate changes for solar customers, these SDG&E changes may offer insights relevant to customers in other regions as well. Keep following the Aurora Blog (or subscribe for weekly updates!) to stay in the loop on other significant utility actions. Is there another rate change you want to understand better? Let us know in the comments below! Key Takeaways The new rates won’t drastically change the returns for systems that offset all of the customer’s energy usage. New solar customers whose energy consumption is not fully offset by the solar system will see a 5 - 10% reduction in their bill savings. Solar will still have a positive financial impact but systems will take longer to pay off. For existing PV customers, those using less than 1000 kWh/year will likely not see a change in their utility bill. For customers that are still large net consumers of power, utility bill might increase by around $0.12/kWh of net consumption. It will take longer for those customers to pay off the investment. The impact is mitigated for small homes that only offset 50% of their energy usage since the rate change really hurts on exports and evening consumption - small homes have fewer exports during the day. To mitigate rising energy costs, customers should try to move energy consumption from the evening to the middle of the day if possible, or move energy consumption to 12am - 6am. The new rates may make energy storage options more popular, but it would still be a big investment for the homeowner. Additional Resources SDG&E’s Advice Letter indicating new utility rate periods and grandfathering clauses can be found here . SDG&E Advice Letter Attachment indicating new utility rates within the new TOU periods can be found here . California Public Utilities Commission Decision D-17-01-006 details the Commission’s grandfathering policies. Additionally, our previous blog post about SDG&E rate changes includes additional background on SDG&E’s allowing solar customers to keep their DR-SES time of use rate for five years (grandfathering). ### What is a Green Bank? How These Institutions Are Catalyzing Solar Markets Green banks, a new type of financing institution for clean energy and energy efficiency, are spurring dramatic growth in solar. Here’s how they work and why solar contractors should get to know their programs. It’s a scenario that replays over and over again. You sit down with a customer who’s eager to power their home or business with solar and save on their electric bills. They love the idea of installing solar, but then you hit the roadblock—the upfront cost of the project is a major sticking point. In the best cases, financing is available to cover or reduce the upfront costs. But all too often, that's not the case—especially for certain groups like non-profits and low-income customers. If financing is available, it may only be available at interest rates that are so high that the project becomes undesirable, because the customer will be unable to achieve immediate savings. These gaps in financing have long closed off the solar market to many interested consumers. But this is starting to change through the work of green banks, a new type of financing institution emerging around the country and around the world. Want to learn about green banks in your area?Check out our articles highlighting the programs of green banks on the east coast and in California and Hawaii.  What Is a Green Bank, Anyway? Green banks are government-affliated banks that use limited public funds to drive greater investment in clean energy by the private sector. The goal of green banks is to “accelerate clean energy market growth while making energy cheaper and cleaner for consumers, driving job creation, and preserving taxpayer dollars,” according to the Coalition for Green Capital, a nonprofit that has supported the development of numerous green banks around the country. This mandate of driving greater investment in clean energy from the private sector is central to a green bank’s approach. Given the relatively short track record of renewable energy projects and limited data to assess risk, private financing partners are often apprehensive about funding projects or will only offer financing at high interest rates. This presents a major barrier to the growth of clean energy markets. Green banks help make private financiers more comfortable investing in clean energy by using public funds to reduce real (or perceived) risks, and by providing the security of a government partnership. Other core characteristics of green banks are the use of innovative financing structures, a focus on cost-effectiveness, and the fact that they are “independent authorities with a degree of latitude to design and implement interventions,” according to the Green Bank Network (a knowledge-sharing network of green banks around the world). Compared to commercial banks, green banks are able to invest with greater flexibility, allowing them to bridge the gaps in financing available from private lenders. Green banks focus their work on mature, commercially-viable clean energy technologies—like solar—rather than early-stage technologies in the R&D phase, focusing on addressing the market barriers that limit their access to capital. What Services Do Green Banks Offer? Some of the financial services offered by green banks include: Credit enhancements (typically through loan loss reserves or loan guarantees) Co-investing alongside private investors (in the form of senior debt, subordinated debt, or project equity) In some cases, directly offering loans for clean energy projects Credit enhancements, such as loan loss reserves or loan guarantees, can increase private lending by reducing the perceived risks. Co-investment can fill gaps in available financing and, in some cases, also acts as a form of credit enhancement. Where private lenders are unwilling to provide project financing, even with credit enhancements, green banks may lend directly. This may be the case when private banks find individual projects too expensive to underwrite, as is often true of small projects like residential energy efficiency projects. The green bank may eventually bundle many individual loans together, making them more attractive by diversifying risk and achieving scale, and then sell them to private lenders. (These services are also referred to as warehousing or securitization.) Green Bank Financing Techniques. Source: Coalition for Green Capital, "Growing Clean Energy Markets with Green Bank Financing." An important characteristic of green bank services is that for each public dollar spent, much more private capital is made available. For instance, the Connecticut Green Bank reports that for every $1 it spends, $6 of private investment in clean energy is committed. Green banks have been established with a variety of different structures and strategies depending on their local contexts. For instance, whereas the Connecticut Green Bank offers retail programs that connect individual solar customers with loans from banks and credit unions around the state, New York Green Bank operates only at a wholesale level—working with project developers and financiers on multi-million dollar investments. In Hawaii, which has the highest electricity prices of any state, solar energy is affordable compared to utility electric prices so many residents have installed solar. However, access has lagged for low-income communities that most need the cost savings. As such, the Hawaii Green Infrastructure Authority has focused on solar for low-income customers. Benefits of Green Banks Unlike state agencies that offer rebates and other grant-based incentives for clean energy projects, a green bank can make public funds go further. Whereas grants are used up as soon as they are distributed, green banks focus on services like loans in which public dollars are repaid to the bank and can then be recycled to drive further growth in clean energy markets. In addition to making government funds go further, green banks are focused on driving economic growth in the regions where they operate. By making clean energy investments more accessible to citizens, they put money back in the pockets of households and businesses through energy savings. By growing the customer base for solar companies and other clean energy businesses, they also contribute to job growth. For instance, since the creation of the Connecticut Green Bank—the first green bank in the nation—solar employment in the state has grown by 30%, and clean energy investment in FY 2015 alone exceeded all clean energy investment in the 11 years prior to its establishment. As the dramatic economic and environmental impacts of green banks become clear, many other U.S. states and jurisdictions have expressed interest in establishing their own such banks. Among the states exploring green bank creation are Delaware, Virginia, Colorado, Missouri, Massachusetts, and Washington, DC. Both New York and Connecticut Green Banks have committed to helping other states replicate the green bank model—and New York Green Bank has recently announced plans to expand its lending operations to the rest of the country! Why Green Banks Matter to Your Solar Company Clearly, green banks represent an important new tool for driving growth in clean energy and energy efficiency markets. As more and more states eye options to meet climate change commitments, increase resilience, and drive economic growth, it is likely that green banks will play an increasing role around the country. This is great news for solar contractors because green banks increase the accessibility of financing to cover the upfront costs of a solar installation—typically the biggest barrier for prospective customers. If there’s a green bank in your state (or city or county), it’s an excellent idea to get familiar with its programs and the benefits they can offer to prospective clients—because it may make the difference in closing the sale. (The Coalition for Green Capital maintains a list of current green banks which is a helpful starting point.) Many green banks also manage databases of approved contractors to help guide interested solar customers on choosing a company—so you should look closely at those programs and consider getting involved. We’ve been talking with green banks around the U.S. to understand their programs and what local solar contractors need to know. Check out our two-part series sharing what we’ve learned! Coalition for Green Capital White Paper: Growing Clean Energy Markets with Green Bank Financing, p. 12 ↩ ### Revitalizing Coal Country with Solar Energy: The Story of Solar Holler Solar Holler, a solar installation and financing firm in Appalachia, is far from your typical solar contracting company. Inspired to use solar energy to help revitalize his home state of West Virginia, where the decline of the coal industry has devastated the local economy, Dan Conant founded Solar Holler in 2014. Since then, he has pioneered new financing approaches to make solar accessible to all regardless of income in a state where the economics of solar have traditionally been challenging due to low electricity prices and limited solar incentives. The company is also playing a crucial role in providing job training to prepare local residents for careers in solar installation. These new economic opportunities are significant in a region where jobs in the coal industry—once the dominant employer—have declined by almost 90 percent  in two generations. Solar Holler’s approach offers insights for those who want to make solar more accessible, and for solar entrepreneurs and advocates working in states where the solar market is still nascent. Solar Holler has been using Aurora for its solar designs since its founding so we were thrilled to have the opportunity to learn more about their work. We sat down with Dan Conant recently to learn about Solar Holler’s strategies. We’re excited to share that conversation with you today: Dan Conant, founder of Solar Holler. Photo credit: Dan Conant.  To start, would you tell us about Solar Holler’s work and what differentiates your approach? After working at several solar startups, I decided to move back to my hometown in West Virginia to found Solar Holler. Our original mission was to make solar affordable for community organizations around Appalachia who couldn't afford it. Our initial work focused on churches, libraries, homeless shelters, and all sorts of other amazing community groups around the state that do great work but have a really hard time accessing the benefits of solar. Since then, we’ve expanded who we serve and now help West Virginia households and businesses access solar as well. Our first project was with Shepherdstown Presbyterian Church. To enable the church to install solar with no money down, we created a crowd-funding approach that was the first of its kind. We call it a Virtual Power Plant approach. Essentially, church members volunteered for a program that would let a partner company, Mosaic Power , briefly reduce their electricity consumption through controllers on their water heaters during times of high electricity demand. Normally, Mosaic pays participants a recurring rebate check for participating, but in this case, the church members agreed to donate the rebate checks to repay the loan for the solar project. It was a $55,000 project, and we created a revolving fund, so that once the loan is repaid the funds can be used to support future clean energy projects. Another big part of Solar Holler’s work is its job training program, which prepares West Virginians for careers in solar installation. What can you tell us about that program and how it came about? After that first project was completed, we started to get so much demand for solar projects that it outstripped the capacity of all trained solar installers in the state! So that led to the creation of our job training program. We partnered with a nonprofit called Coalfield Development Corporation to develop a program to build the solar workforce  in West Virginia. Participants sign on as apprentices for two years. During the apprenticeship, they are paid for their work and earn their Associate's degree and NABCEP certification—and they pay no tuition which differentiates our program from a lot of other solar job training options. In a past interview , you talked about how effective solar job training programs for coal mining communities must go hand-in-hand with building the market for solar energy, otherwise trainees need to leave the area to find solar jobs. How does Solar Holler work to build the demand for solar in West Virginia? A big part of it is setting up the financing tools. West Virginia is not a well-to-do state; there's not a lot of cash floating around. It's definitely not California or DC or Massachusetts or other hot solar markets. What those solar markets have going for them is high prices of electricity and they tend to be wealthier states. We don't have either of those in West Virginia. Compared to California, where electricity prices can go over 30 cents a kilowatt, for residential energy here in West Virginia we're in the 10-11 cent range. So in order to make it affordable for folks and actually build demand, you need to have the financing tools lined up, you need to drive the costs down. And, eventually when you do that it'll take off. We didn't want to train people for a job that doesn’t exist. Our goal wasn't to just put people through the program and have them come out on the other side and move to California or New Jersey or Massachusetts to take a solar job, because we're doing this for West Virginia as well. That's why we take a multifaceted approach. Absolutely we need the trained workers—we need the workforce, but at the same time we need financing tools, we need community marketing, etc. We're really trying to tackle all of those parts of the puzzle at once. We could go out and set up a big fund, but then we’d need the workforce to actually deploy those projects; you can't have any one part getting too far ahead. A solar array is installed on Shepherdstown Presbyterian Church, Solar Holler's first project. Photo credit: Solar Holler. You've pioneered some new ways of financing solar. How do you identify and develop new financing approaches? It’s a mindset. I think what we've really brought in, in some cases, is this approach to not always do what the broader solar industry has done. It seems like overall, especially on the nonprofit side, the tendency has been to chase tax credits (in other words to favor financing options like leases and PPAs, in which the solar system is owned by a third-party that can take advantage of tax credits like the ITC). I've approached dozens of financiers over the last four years about projects, and so many commercial financiers only want to do PPAs. That approach is great for the states that have PPAs, but it leaves out 25 states that don't have legalized PPAs. So, we're really trying to expand beyond arrangements that are focused on a third-party owner taking advantage of the tax credits. Across the board a central theme is that we try to pull in efficiency tools that we can use and bundle them in with solar. Whether that's water heaters or LED lighting or other improvements, we like to do those upgrades at the same time as we’re installing solar on the roof. By bundling all of that together you can make a solar project work, where it might not have without the efficiency improvements. Beyond that, we’ve focused on identifying what resources we have in West Virginia that we can tap into. In these initial projects, one of the best things we have had going for us is that we're part of the PJM [regional electric grid and wholesale electricity market] . That enabled the initial approach of pulling in efficiency resources and other tools that you might not normally think of that are in lesser-known parts of the electricity market (like the capacity market ).     What are some of the successes that you’ve observed from your work to date? One of the most gratifying things for me is that when we work with community organizations, we know that the energy savings are going back towards supporting their missions. If it's a library that means more educational programs; we've done work with homeless shelters, where the energy savings directly support the social programs that are so crucial. That's the most rewarding part for me. We've also seen a huge impact on the policy front, in terms of building community support for solar in the state. For instance, two and a half years ago, there was a bill to repeal the Alternative Portfolio Standard in West Virginia, which would have eliminated net metering—and this was about six months after we had completed our first church project with the support of all those member families. In one night, every single legislator in the state was flooded with emails from 600 people. Out of those, we had over 100 associated with the church, saying "don't take solar away from my church." In one day we flipped literally the vote and the legislature voted unanimously to keep net metering in place. I think that's one of the reasons this work is so important; by working with nonprofits and community organizations we’re counteracting the idea that solar is just for the rich. That's not a politically stable place for solar to be. It’s a whole lot harder to take away solar from a church or a homeless shelter. What do you think the future holds for the growth of solar in traditionally coal-dependent communities like West Virginia? I tend to be a really positive person when it comes to the growth of solar. I think we end up focusing a little too much on the negatives. Yes, there are things that could be streamlined about permitting and whatnot, but across the board, things are going really well. We're doing a couple of projects a week right now around Appalachia. You need to get lots of people on board, in terms of skills and talent. We need electricians, engineers, marketers—we need all these different pieces. But we're pulling it all together. Given the trajectory we’re seeing in our work, we've got all the tools right we need to really knock this out of the park, even in Appalachia. ### The Importance of Discounting Future Solar Savings [This article was originally published in SolarPro .] On May 7, 2016, Pearlie Mae Smith, the winner of the New Jersey Lottery Powerball, had an enviable decision to make: Should she accept $429 million in payments over 30 years or accept a smaller amount, $284 million, up front? Though it was 34% lower, Ms. Smith chose the up-front payment. While Ms. Smith was more than 70 years old at the time she won the Powerball, her choice was not unique. Powerball data show that all five winners in 2016 chose the up-front payment versus taking payments over time, forfeiting more than a third of their nominal earnings. Going back as far as 2003, you will find cases where Powerball winners were willing to sacrifice half their winnings to claim them up front versus spreading them out over time. If sacrificing almost half of one’s nominal winnings in exchange for an up-front payment does not sound totally crazy, you already have an intuitive understanding of the concept of the time value of money, also known as discounting. Time Value of Money The time value of money means that a dollar promised at a future date is worth a discounted amount compared to a dollar guaranteed today. This is because there is no guarantee that whoever promised you the dollar will be around or will deliver it in 25 years. Even if the person does deliver the dollar, due to inflation, it will not buy as much in 25 years as it does today. In addition, if you get a dollar today, you can invest it and grow that dollar over time. For all of these reasons, money promised in the future is worth less than money guaranteed today. Discount rate. In the context of solar, the value of electric bill savings in the future should be similarly discounted relative to cash in hand today. The amount that a dollar in the future is discounted relative to a dollar today is referred to as the discount rate, which the American Heritage Dictionary defines as “the interest rate used in determining the present value of a future payment or series of payments.” In plain English, this is the rate of return at which it makes no difference to you whether you receive the payment today versus sometime in the future. For the mathematically inclined, you can calculate the discount of future to current savings using the following formula: where d is the discount rate, Sn is the savings in year n, S0 is the current value of these savings and n is the year of evaluation. The discount rate is typically expressed as a percentage. Modeling Financial Returns If you are not applying a discount rate, or if the software you are using does not do so, you are likely misrepresenting the financial returns of going solar. You may also be making suboptimal solar design decisions or recommending the wrong financing option to your client. Let us examine what the application of a discount rate does to some of the more commonly quoted solar financial metrics—lifetime savings, internal rate of return (IRR), levelized cost of energy (LCOE), and payback period—across two financing options: cash and loan-financed purchase. Figure 1. Aurora estimates that the 10 kW array shown here has a weighted total solar resource fraction of 86% and will generate 12.85 MWh of energy in year 1. Case study. For this example, I used Aurora both to design the 10 kW system in Figure 1 and to perform the financial analysis. The case study assumes the following: The customer is on PG&E’s E-1 baseline utility rate for Region S; the assumed utility inflation rate is 3%; the system cost is $3.50 per watt; the loan terms require 20% down and 4.9% interest; incentives are limited to the 30% Investment Tax Credit; and the project service life is 25 years. The financial results presented in Table 1 (below) show that applying a discount rate leads to a reduction in the present value of lifetime savings and the LCOE, as well as a slightly longer payback period. These results have implications for both the recommended financing option and the optimal system design. Table 1. A comparison of common financial metrics for a cash purchase versus a 2-year loan-financed system (20% down, 4.9% interest), with and without discounting. Customer financing: With a 2.5% discount rate, this client’s discounted lifetime savings are greater with a loan-financed system compared to a cash deal. The discount rate acts as a penalty for tying up the cash that the client might have invested in another asset. It is also interesting to observe the changes in LCOE. With a discount rate applied, the LCOE for a cash purchase increases by more than 30%, whereas the LCOE for the loan structure increases by only about 7%. We have already established that a dollar guaranteed today is not the same as one promised in 25 years, and it is equally true that a dollar owed 25 years from now is worth a lot less than one in hand today. Thus, a loan-financed system generally starts to look more favorable relative to a cash purchase as discount rates increase. Design optimization: Designers can also use LCOE to determine whether a proposed solar installation generates a financially optimal amount of energy. If, on one hand, the effective utility rate is higher than the project’s LCOE, then the homeowner is leaving money on the table by not generating more solar energy. In this case, you should seek to design a higher-producing system to capitalize on the higher utility compensation rate. On the other hand, if the effective utility rate is lower than the LCOE, then the homeowner is losing money on each incremental unit of energy generated. In this scenario, the appropriate design response is to generate less energy, perhaps by specifying less-costly components with lower energy yields. Analyzing results. While nobody wants to show lower financial returns, the discounted values in Table 1 more accurately reflect the financial returns of going solar. Furthermore, by performing this type of analysis, you can now credibly compare the returns on solar to other asset classes. Even with the 2.5% discount rate, the homeowner is saving more than $58,000 over the project’s life in today’s dollars and is earning an annualized return of 14.8%. To put a 14.8% return for solar in PG&E service territory in context, State Street Global Advisers forecasts that the US bond and stock markets will have long-term annualized returns of 2.5% and 7.7%, respectively. However, financial markets are volatile, whereas solar provides savings as long as the sun shines (and assuming that regulators do not retroactively change policies). Furthermore, unlike income from the stock or bond markets, solar savings are tax-free. This means that if you provide an apples-to-apples comparison of financial returns, going solar is a no-brainer investment for this particular homeowner, as illustrated in Table 2. Table 2. Applying a discount rate allows for an apples-to-apples comparison of potential investment opportunities. Accuracy and credibility. Applying a discount rate when assessing investment decisions is a well-established practice for financial and economic analyses. Many analogous industries have adopted this as standard practice. For example, realtor.com offers an online Rent vs. Buy Calculator where the discount rate—identified as the investment rate of return—is a required input. The U.S. government’s Office of Management and Budget uses discount rates when calculating the financial returns associated with investing in clean energy or energy efficiency projects, as well as for general budgeting purposes. Within the solar industry, the National Renewable Energy Laboratory (NREL) System Advisor Model (SAM) includes a discount rate when calculating financial metrics. In fact, NREL’s user guide for SAM states that the “discount rate acts as a measure of time value and is central to the calculation of present value.” It is well established that the cost of acquiring customers is one of the major obstacles to making solar ubiquitous. Consumer education is one of the reasons commonly cited for the high cost: Consumers are often confused about the economic benefits of going solar. Perhaps one way to help alleviate this is to speak to homeowners in familiar terms. While most homeowners are unfamiliar with terms like azimuth or solar access, they likely have had to assess how much money to put into a 401k or whether to buy or rent. Moreover, they almost certainly understand that a dollar will not be worth the same in 25 years as a dollar is worth today. Applying a discount rate as part of your financial analyses not only will improve your design and financial decision-making processes, but will also increase the accuracy and credibility of your results and allow you to make an apples-to-apples comparison between the returns of solar versus other asset classes.  ### How Virtual Net Metering Opens New Markets of Solar Customers Residential solar has grown dramatically over the last decade, making the benefits of lower electric bills and cleaner energy significantly more accessible. In fact, the annual growth in residential solar installations has averaged 68% over the last 10 years according to the Interstate Renewable Energy Council (IREC). In addition to the falling cost of solar components, this growth has to a large extent been driven by the development of policies and financing approaches that enable cost-effective projects. To date, however, policies for residential solar, like net metering, have predominantly focused on supporting solar for homeowners, leaving renters and other potential solar customers limited options for accessing the benefits of solar energy. And for solar contractors, this means a large portion of the potential market has been closed. Virtual net metering, which extends net metering to customers who do not share the same meter as a solar installation, has great potential to make cost-effective solar energy accessible to other portions of the residential market. Virtual net metering can allow residents of multifamily buildings to share the solar energy from a communal array. What is Virtual Net Metering? Virtual net metering (also called virtual net energy metering, or VNEM) uses the same compensation structure as net energy metering (NEM): utilities pay customers the retail rate for the energy that their solar system feeds back to the electric grid, so that they pay only for the net amount of energy they consume. However, unlike traditional net metering, virtual net metering allows the credits from an array to be distributed among multiple customers who do not share a meter with the system. For instance, energy credits from a solar array on a multifamily apartment building could be divvied up and applied to the accounts of different households in the building and to common area electricity usage. Virtual net metering policies are what enable shared renewable energy projects like community solar gardens, although some community solar projects are structured in other ways. What is the Current Status of VNEM and How Big is the Potential Market? In many states, and especially in cities, large proportions of the population live in apartment buildings, condos, or other buildings with multiple tenants. Since regular net metering policies require bill savings from a solar installation to be applied to a particular customer’s meter— rather than distributed across multiple accounts—it has been more difficult for these customers to access the benefits of solar. But with VNEM policies, this huge base of new solar customers is opening up. For instance, nearly 17% of California residents live in apartments, but in major cities like San Francisco and Los Angeles that number is significantly higher (40 and 43% respectively) according to the Virtual Net Metering Policy Background and Tariff Summary Report  published in 2015 by the Center for Sustainable Energy, IREC, and CalSEIA. In Seattle, nearly 50% of the population are renters, and 40% of occupied housing is comprised of apartments (according to another IREC report ). Around the country, there are already many states that have virtual net metering policies in place, though—for the most part—the number of projects developed under these policies has been limited. In California, for instance, one of the earliest adopters, virtual net metering was authorized for the general multi-tenant market in 2011 by the CPUC, following a pilot program for residents of affordable housing complexes. However, while there are several hundred thousand multifamily properties in the state that are eligible to develop shared solar projects under the state’s VNEM policies, as of 2016 only about a hundred such projects have been developed according to the Center for Sustainable Energy . Virtual Net Metering Policies by State Fourteen U.S. states have mandatory virtual net metering policies (typically applying to the state’s investor-owned utilities, or IOUs), according to IREC’s State Shared Renewables Program Catalog (updated September 2016). While this list focuses only on mandatory programs, “many utilities across the country, including IOUs, municipal utilities (MUNIs) and cooperative utilities (coops), also voluntarily offer shared solar or VNEM programs,” according to the Virtual Net Metering Policy Background and Tariff Summary Report. The states (and districts) with mandatory virtual net metering policies include California, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Oregon, Vermont, as well as Washington, D.C. At the time of publication, 14 states have virtual net metering (VNEM) policies.  The structure of virtual net metering policies (and the terms used to refer to these programs) varies by state, with diverse restrictions on customer type, technology type, capacity limits, and the allowable distance between the shared array and the meters of participating customers. California’s policy is somewhat unique in that it limits virtual net metering to “customers of multi-tenant buildings that share a common service delivery point (SDP)”1 meaning that only onsite projects are supported. In contrast, most other VNEM policies include solar systems located on properties that are offsite from participating customers. How Can You Tap Into This Emerging Solar Market? As you can see, VNEM policies in many states have made possible a whole new class of solar projects. But, while the policy mechanisms are in place, the limited use of these policies to date means that there is significant room for growth. Curious about how to serve this market? While adding new services to your business is always something that should be weighed carefully, if your company is interested in understanding the business opportunities of virtual net metering processes here are some tips to get you started navigating this area. First, you’ll need to understand whether there are state-level VNEM policies the areas where you work. (If not, it may be worth also contacting your local utility to understand whether the utility offers a voluntary VNEM program.) If your state offers VNEM, the Virtual Net Metering Policy Background and Tariff Summary Report  is a good starting point, providing summaries of how each state implements VNEM (pages 31-48) and links to the relevant policies and rules. Another helpful resource is IREC’s State Shared Renewables Program Catalog , which provides a comparative chart of states’ shared renewables programs, like VNEM, for solar and other renewable energy technologies. If you’re a solar contractor in California, you’re in luck, because the Center for Sustainable Energy, with support from the SunShot Solar Market Pathways Program, has put together some VNEM toolkits for contractors. These include interactive maps of multifamily buildings to enable more targeted marketing efforts, and guidelines and forms for navigating the interconnection process. Additionally, they’ve put together guides for owners of apartments and condominiums, which may be helpful references to share with prospective customers to help educate them on the value of virtual net metering systems and how the process works. As we work towards a future in which renewable clean energy is accessible to all, the development and implementation of approaches to bring solar to new markets will be key. Virtual net metering presents a great opportunity to include many more people in the solar market—from renters, to residents who live in multifamily buildings, to those whose property is too shaded. For contractors who get familiar VNEM projects, a vast market of new customers awaits. Virtual Net Metering Policy Background and Tariff Summary Report ↩ ### Solar Design Lessons from the 2017 Solar Decathlon Winners Two weeks ago, during the Solar Decathlon 2017 Competition , we explored the solar powered house designs from participating university teams. The designs showcased many creative and resourceful strategies—and presented a fun challenge for modeling in Aurora. With the competition now complete, today’s post takes a closer look at the top three teams to identify some of the solar design lessons from their success. The Solar Decathlon 2017 competition houses, modeled in Aurora. The Solar Decathlon Contests and Winning Teams The Solar Decathlon is comprised of ten equally-weighted contests, each with a total of 100 available points. Six of the contests—Architecture, Market Potential, Engineering, Communications, Innovation, and Water—are juried contests in which industry experts tour each house and assign it a score. Performance in the last four contests—Health and Comfort, Appliances, Home Life, and Energy—is based on measurements by sensors connected to each home. (For more information on the criteria of each competition, see the end of this article.) The winning teams this year featured a few common characteristics: appealing layout and appearance, energy and water efficiency through cutting-edge design practices and innovative methods, and excellent operation of the house during the contest week. Here’s a breakdown of the scores of the top three teams: 1. Swiss Team - 872.910 points 395.4 out of 400 measured contest points (#1) 478 out of 600 juried contest points (#2) 2. University of Maryland - 822.683 points 348.7 out of 400 measured contest points (#4) 476 out of 600 juried contest points (#3) 3. UC Berkeley / University of Denver - 807.875 points 394.6 out of 400 measured contest points (#2) 414 out of 600 juried contest points (#9) The top three house designs from the 2017 U.S. Solar Decathlon, left to right: NeighborHub by the Swiss Team, reACT by Team Maryland, and RISE House by UC Berkeley and the University of Denver. Photo Credits: (left) Dennis Schroeder/U.S. Department of Energy Solar Decathlon; (center and right) Jack Dempsey/U.S. Department of Energy Solar Decathlon. Both the Swiss Team and UC Berkeley/University of Denver did exceptionally well in the measured competitions, losing just a few points across the Health & Comfort, Appliances, Home Life, and Energy contests. In the juried contests, the Swiss Team took second place and Maryland tied for 3rd (with the Northwestern house). Lessons from the Energy Contest The Energy Contest evaluates each team's energy production (kWh) and the value ($) of that energy based on a theoretical utility rate structure. Of the total 100 points for the Energy Contest, Energy Production accounts for 60 possible points and Energy Value accounts for 40. Each team’s house both could both contribute energy to and take energy from the Solar Decathlon electricity grid (a microgrid created for the competition), just as would be the case for net metered customers on the U.S. electricity grid. Additionally, for the first time, this contest included time of use energy pricing. Let’s take a quick look at the Energy Contest and how the top teams fared: Graph of teams' cumulative energy production and energy value, the two components of the Energy Contest. Credit: U.S. Department of Energy Solar Decathlon 2017 . The above graphs show the top three teams’ Energy Production and Energy Value throughout the competition week. In the Energy Production segment, teams receive the full 60 points if they have an energy surplus for the competition; if they have an energy deficit, they can receive partial points depending on the size of the deficit, between 0 and -50 kWh. For the Energy Value segment, teams get the full 40 points for having at least $10 in energy credits by the end of the competition, with prorated points for having between $10 in credits and -$10 in energy charges. Both the Swiss Team and UC Berkeley/University of Denver achieved the $10.00 credit threshold, and Maryland managed their house energy demands at the end of the contest to keep a small energy surplus despite inclement weather that reduced energy production. Designing for the Local Weather October 9th was the first time in all of the Solar Decathlon contests that snow fell on the competition site, presenting a new challenge for the competitors. Most of the Solar Decathlon teams had PV systems sized to handle inclement weather, as is evident in the growing energy surplus for all three teams during the in the first few (sunny) days of the competition. This surplus proved very valuable when snow arrived mid-week. During the snowfall, we can see that each of the houses experienced a decline in their net energy balance, a result of powering their homes for the contests while there was minimal production from the PV arrays. While several teams had to sweep snow off their solar panels to keep the systems up and running, the Swiss Team simply left the facade of the NeighborHub closed. This prevented snow from accumulating in the first place, contributing to their strong performance. Not all systems were designed with snow in mind, but rather reflected the climate of the house’s target market. A model of NeighborHub in Aurora, showing the house’s ability to adjust pitch of its panels. Benefits of Module-level Power Electronics Many teams came in with some sort of module-level performance control, either a set of optimizers or microinverters. In some cases they served mostly to help monitor individual module health, but the Swiss Team’s winning design took it a step further by using optimizers to connect modules with different orientations without taking mismatch losses in production. It also provided an additional benefit when a muddy bird walked all over the array, seen here: Photo credit: Joe Simon/U.S. Department of Energy Solar Decathlon. Hungry for more inspiring solar designs? You can check out our Solar Landmark blog series—as well as future Solar Decathlon events! The program now has multiple international events, with five more planned before the next U.S. competition in 2020: Solar Decathlon China   - 2018 in Dezhou, China Solar Decathlon Latin America & Caribbean  - 2018 in Cali, Colombia Solar Decathlon Middle East  - 2018 in Dubai, UAE Solar Decathlon Europe  - 2019 in Szentendre, Hungary Solar Decathlon Africa  - 2019 U.S. Solar Decathlon  - 2020 You can also check out some of the innovations that have come out of the Solar Decathlon competition in their latest blog post . What solar design lessons did you take away from the U.S. Solar Decathlon 2017? Let us know in the comments below! Solar Decathlon Contest Details Curious about what goes into each of the ten contests that comprise the Solar Decathlon Competition? Here’s an overview of how each is judged: 1. Architecture: A jury of architects evaluates each team's architectural concept and design approach; the implementation of the design and its innovative features; and required documentation for the project.  2. Market Potential: Teams design a primary residence for year-round occupancy for a specific target client. A jury of professionals from the homebuilding industry evaluates the overall attractiveness of each team’s design to its selected target client and the market impact potential of the house.  3. Engineering: A jury of engineers evaluates the engineering design and implementation of each team's house based on the engineering approach, design, efficiency, and performance.  4. Communications: A jury of communications professionals evaluates each team's communication strategies, materials, and efforts to educate, inform, and interest the team’s local communities, visiting public at the event, and diverse online audiences.  5. Innovation: This is a new contest for Solar Decathlon 2017. A jury of industry professionals will evaluate each team's research, approach to sustainability, innovations for the target client, and durability and safety of innovative elements, while also evaluating whether the price is right for the target client.  6. Water: Solar Decathlon 2017 is rewarding smart water solutions for the first time. A jury of industry professionals evaluates each team's approach to water conservation, water use and reclamation, and landscaping water impacts.  7. Health and Comfort: Team houses must minimize the flow of cooled air in summer or heated air in winter to the outdoors, operate heating and cooling systems that keep temperature and humidity steady, all while maintaining healthy indoor air quality.  8. Appliances: The Appliances Contest is designed to mimic the appliance use of an average U.S. home. Teams earn points for operating their refrigerator and freezer, washing and drying laundry, and simulating cooking tasks and hot showers.  9. Home Life: Teams are required to engage in common household activities that use electricity. They cook and share meals with friends and neighbors, watch television, use computers, and host game nights. And, for five days, they “commute” at least 25 miles in an electric vehicle charged by the house solar electric system.  10. Energy: The Energy Contest evaluates each team's energy production and a theoretical value to a utility of the energy each team both contributes to and takes from the Solar Decathlon electricity grid. For the first time, this contest includes real-time energy pricing. Background Image Credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon. ### 11 Clever Solar House Designs from the U.S. Department of Energy Solar Decathlon 2017 The U.S. Department of Energy Solar Decathlon is a great opportunity for college students to get hands-on experience with the design and construction of houses and solar PV systems. The collegiate competition—happening in Denver, Colorado at the time of publication—challenges student teams to design and build full-size, energy-efficient houses powered exclusively by solar energy. The Solar Decathlon is a biennial competition that has been running since 2002, and has involved over 35,000 participants across 274 teams thus far. For each competition, up to twenty university teams are selected from a pool of applicants. Once selected, each team has a year and a half to design and build their house before bringing it to the competition site. Previous Solar Decathlon contests have taken place in Washington, D.C. and Irvine, California. During the contest week, each team works through 10 competitions that evaluate their houses on different criteria, including hosting their rivals for a dinner party, washing loads of laundry, and taking a commute in an electric vehicle charged by their house’s solar installation. The winning team is the one that best blends design excellence and smart energy production with innovation, market potential, and water and energy efficiency. The Solar Decathlon as a whole fosters collaboration between students of different disciplines and an emphasis on sustainability. I had the good fortune to participate in two previous U.S. Department of Energy Solar Decathlon competitions—once in 2011 as a student, and again in 2013 as a project manager. So naturally, I was excited to take a look at the designs from this year’s competition. In this installment of our Solar Landmarks Series, we examine all 11 of the Solar Decathlon 2017 houses, what makes them special, and how they can be designed in Aurora. The Solar Decathlon is also a unique chance to interface with industry leaders—here's me (center) chatting with then-Secretary of Energy Dr. Steven Chu about some of the energy efficiency measures in our Solar Decathlon 2011 house, CHIP. Photo Credit: Stefano Paltera/U.S. Department of Energy Solar Decathlon New Themes In this year’s competition, I picked up a few themes. The contest has brought back electric vehicle driving which had been absent for several iterations of the competition, and battery-powered cars are all on display. The Energy contest has also been upgraded, now featuring net energy metering (NEM) which has encouraged concurrent energy production and usage as well as energy storage systems. The Health and Comfort contest has asked teams to bring in more plants and materials that emit fewer VOCs (a form of air pollutant). And finally, several teams came in with the modular design approach, where the prototype house brought to the competition could be scaled into a larger house in the future. Las Vegas - Sinatra Living The University of Nevada, Las Vegas’s Sinatra Living house features a combination of photovoltaics and thermal heating, plus a battery pack. Deep overhangs and adjustable patio shade are great for managing the intense desert sunlight, and the inclusion of energy storage is helpful given Nevada’s less favorable net energy metering policy. Photo Credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon To design this house in Aurora, the user should start with our SmartRoof tool and select the Flat Roof option before drawing (as illustrated below). Once the roof has been outlined, simply select one of the bottom wings and set it to “pitched,” which will tilt the whole roof up from that edge. Maryland - reACT Back in 2011, the SCI-Arc/Caltech team I was on took sixth place in the Solar Decathlon on the strength of heavy insulation, a creative custom smart home app that included a complete power-down button, and some thorough weather analysis that resulted in a PV design that got us through a rainy competition week with energy to spare. The team that took first place overall that year was the University of Maryland team, which not only had a beautiful house, but a custom dehumidification system that worked with just heat from the sun and a large amount of greywater recycling. This year, Team Maryland brings the reACT house, a self-sufficient design that also features a large amount of plant life and a central courtyard that helps collect thermal heat. The PV system is mounted on two wings of the house, and uses a combination of DC optimizers and energy storage to manage energy usage. With half the array pointed west and half the array pointed east, the system’s peak production is spread out through more of the day. Photo Credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon To design reACT in Aurora, we need four SmartRoof structures: one for the east wing, one for the west wing, and two gable-style roof structures—one for the center of the house and another for the enclosed courtyard. The deck is optional, but I made it using a flat roof. Missouri S&T - SILO Missouri University of Science and Technology is taking part in their seventh Solar Decathlon competition, this time bringing in the sleek SILO house. Large glass walls bring in plenty of diffuse light, and the 24 PV modules are more than enough to power this house through the contest. Like many other Solar Decathlon 2017 teams, Missouri S&T elected to use energy storage to manage the TOU energy pricing and the fact that exported energy is valued at a lower rate than energy bought from the grid. Both of these aspects are new to the Solar Decathlon Energy contest this year and are typical of most utility NEM rates. Photo Credit: Dennis Schroeder/U.S. Department of Energy Solar Decathlon SILO takes three SmartRoof pieces to design in Aurora, one for the south face with PV, one for the sloped north roof, and one for the arched middle segment. Curves take a little bit of time to model and aren’t optimal for PV installations, but it’s possible to make one in Aurora by using pitched folds with SmartRoof. After creating an outline of the curved roof face, I made only the south edge “pitched” and then inserted several pitched folds. By setting these in progressively smaller tilts, I was able to create a shape similar to the curved roof. Netherlands - Selficient The Selficient house, by HU University of Applied Science Utrecht in the Netherlands, is one of the few cases we’ve seen with dual tilted systems in the Solar Decathlon, although the team from Washington University in St. Louis is also using them this competition. One cool part of this house is the modular design, which lets the installer fit different pieces of wall, floor, and roof to create different floor layouts. Photo Credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon In Aurora, dual tilt systems can be created using the Fill Zone feature. This house appears to use a tilt of around 30 degrees, with very small row spacing. Stringing with Aurora fill zones connects modules with the same orientation to avoid mismatch in light availability. Northwestern - Enable The Northwestern University team’s Enable house sports a nicely tilted PV array, a sunroom, and—a rarity in Solar Decathlon designs—a garage for an electric car. The integrated energy storage system pairs well with EV usage, which will allow the car to charge up during the night when electrical rates are more favorable. Photo Credit: Dennis Schroeder/U.S. Department of Energy Solar Decathlon. To create a 3D model of Enable in Aurora, we used four separate roof segments: one for the south-tilted section, a flat segment for the middle of the house, a third roof for the sunroom, and one for the back of the house. One way to ensure azimuth alignment is to copy-paste the same rectangle twice and then resize the pieces. The PV array is nicely-sized and sits at a good tilt for the intended latitude. Swiss Team - NeighborHub The NeighborHub from the Swiss team (a team comprised of students from École Polytechnique Fédérale de Lausanne, the School of Engineering and Architecture Fribourg, Geneva University of Art and Design, and the University of Fribourg) has a central core surrounded by an unconditioned flexible-use space. Some other unique features include a zero-water toilet and exterior wall sections that can be folded upwards to open up the flexible space to the outside. The folding wings hold the PV modules used in this house. Most power is drawn from a series of monocrystalline panels, and a small amount of power is generated from a series of semi-translucent thin-film dye-sensitized modules. The effect is truly building-integrated PV. Photo Credit: Dennis Schroeder/U.S. Department of Energy Solar Decathlon The structure of the Swiss Team's house is straightforward—it just needs a single roof structure. However, the modules are not placed on the rooftop, so this design calls for roof racks to hold the modules in space, rather than placing them on the structure. I used ground mounts at tilts of 15 degrees for the folded-up section and another piece at 89 degrees for the vertical walls, in order to place the modules. Aurora’s stringing tool also permits us to connect modules in different orientations like we see in this design when the wings are opened. Team Alabama - surviv(AL) house The surviva(AL) house by Team Alabama (comprised of students from the University of Alabama at Birmingham and Calhoun Community College) has a nice large south-facing roof that sports a 9.9 kW array. Each of the modules is attached to a microinverter, which will minimize potential shading losses. It also has a series of 14 clerestory windows (small windows along the top of a structure's wall, near the roofline) and a porch with a translucent overhang, which lets in more light while keeping the elements out. Photo Credit: Dennis Schroeder/U.S. Department of Energy Solar Decathlon Modeling surival(AL) in Aurora takes two roof sections: one for the large south face and one for the smaller north face. Each roof piece just needs one edge to be pitched, and they can be set to the same height and tilt which results in the south roof reaching a greater vertical height than the north segment. Team Daytona Beach - BEACH House Team Daytona Beach (comprised of students from Embry-Riddle Aeronautical University and Daytona State College) brings in the accessible BEACH House, designed for Florida’s climate. Like the surviv(AL) house, BEACH House can be modeled with two segments, a north-facing roof and a south-facing roof. To create the extended overhang over the west portion of the house, create the 2D outline as a flat roof, and then change only the bottom-most edge to “pitched” to base the tilt of the roof off of that edge. Photo Credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon BEACH House also features two different types of PV modules, all of which are connected to a central inverter. Aurora lets strings with different modules connect to the same inverter on different MPPTs, so there is no difficulty in modeling this design. Aurora’s module snapping functionality even snaps the different model types together without issue. UC Berkeley / University of Denver - RISE The RISE House by UC Berkeley and the University of Denver is intended as a modular design, with stackable stories and communal living spaces. Only the top level is present at the Solar Decathlon due to 18’ height restrictions, but it gives a good sample of the house’s design philosophy. Photo Credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon Modeling any version of RISE is a straightforward task in Aurora, using individual rectangles for each level of the house. We also modeled the stairs using a 45-degree sloped roof, but this has no effect on the site performance. There are also railings on the house, which can be modeled using a thin rectangular obstruction if desired. UC Davis - Our H2Ouse UC Davis brings in Our H2Ouse, an incredibly water-efficient house that uses smart systems to display homeowner’s water usage. The array is segmented into two systems, one of which feeds directly to the load panel and another that connects to an energy storage system. We think the bicycle wheels that provide deck shade are also a nice touch. Photo Credit: Dennis Schroeder/U.S. Department of Energy Solar Decathlon Our H2Ouse can be modeled in a single polygon using SmartRoof, with the south-most edge set to a slight tilt for the whole structure. Wash U - St. Louis- CRETE The team from Washington University in St. Louis brings in CRETE, a storm-proof precast concrete house with vertical planters that connect the exterior to the interior. The precast modules also have a core of insulation that helps minimize heat losses. Building the main structure of the house in Aurora is as easy as drawing a rectangle. The PV system for CRETE is row tilted, which can be completed easily by using the standard Aurora module layout tool or a fill zone. Photo Credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon Aurora’s CAD tool does not model overhangs so, for aesthetic purposes, I created a dummy module with a deep z-dimension to show a fake gutter piece. To enable an accurate performance simulation with these fake modules present, they are attached to a 0% efficiency inverter. An actual proposal wouldn’t need to go into as much detail, but it was fun to model the house as close as possible to the real deal. I'm glad to see that the Solar Decathlon is still going strong in its eighth iteration (not counting the international events). Each year it seems that the houses become more innovative and competitive. There is also more emphasis on energy-efficient house design, especially important given the 10 kWdc PV system size limit, making these homes truly designs of the future. ~~~ What do you think about the houses? Comment below to tell us which one is your favorite! The winners have just been announced, so check out our follow-up post in which we highlight lessons from the winning designs. The Solar Decathlon 2017 competition site and all of the team's houses, modeled in Aurora. Top photo credit: Jack Dempsey/U.S. Department of Energy Solar Decathlon This blog post is not affiliated with the U.S. Department of Energy Solar Decathlon or any of the competing teams. ### How Solar Customers Save Money: A Beginner’s Guide to Net Energy Metering Lower electric bills are one of the biggest selling points of installing a solar PV system. But how exactly does adding solar provide these savings? For customers early in the process of evaluating a solar purchase, the specific dynamics aren’t always clear. As a solar professional, being able to give potential customers a concrete understanding of the process by which a solar installation will put more money in their pockets each month can help make this big investment much less daunting. In the U.S., net energy metering (also called net metering or NEM) policies are the primary mechanism driving savings for solar customers who wish to remain connected to the electric grid—as most solar customers do, so that they can rely on the services of their local utility when needed. In this article, we break down how solar saves customers money by explaining how solar installations interact with the electric grid and how this relates to net energy metering as a means to allow solar customers to lower their electricity bills. Figure 1. States with net energy metering policies. Net metering is the dominant mechanism for compensating U.S. solar customers for the energy their systems produce. What is the Grid and How Does It Relate to Solar Installations? While most people have a general familiarity with the electric grid—often referred to simply as “the grid”—as the source of power for their homes and businesses, few people have a strong understanding of how it works. The grid is a network of power plants and transmission lines that work together to deliver electricity to consumers across the U.S. Because electricity is always in demand, the grid is constantly operating, and grid operators carefully manage energy output to meet demand; energy that flows into the grid must be immediately consumed. It is a complicated system that is vital to the operation of countless services we depend on. Figure 2. A graphical representation of the electric grid. For a typical home without a solar installation, all of the electricity needed to meet occupants’ demands is drawn from the grid. When solar panels are installed, the relationship between the customer’s home and the grid changes because energy can now flow in two directions. The solar array acts as a small power plant that provides an additional source of energy for the home and the grid. When the household consumes energy at the same time that their solar panels are producing it, they can use that energy directly in place of what they would draw from the grid. This results in lower energy consumption through the utility company and thus a lower electric bill. This is the part of solar savings that most people intuitively understand—but there’s more to how a solar installation saves customers money. Figure 3. An illustration of how homes with solar panels interact with the grid. When the system produces excess energy, it is sent to the grid (green arrows); when solar production is not enough to meet the household's needs, energy is drawn from the grid (red arrows). Unlike a traditional power plant which can be turned on and off as needed, the amount of energy produced by a solar array changes depending on factors like the time of day and the weather. This variability means that there will be times when the installation produces more or less energy than the occupants are consuming. This is a key reason why most solar customers still rely on the grid even after installing solar. How Net Energy Metering Reduces Solar Customers' Energy Bills When a customer’s solar panels do not produce enough energy to match their needs, the grid provides the additional energy needed. On the contrary, when solar panels produce more energy than the household is using, the excess energy is fed back onto the grid. This two-way relationship between a customer’s solar panels and the grid is central to net energy metering (NEM), the primary way U.S. solar customers save money on their utility bills. We know that solar panels can directly save customers money by decreasing the energy they buy from the grid, but what happens when the system is producing a lot of energy when they don’t need it—like on a hot summer day when they’re away on vacation? Net energy metering answers this question by putting a value on the excess energy solar customers send back to the grid when their system produces more energy than they need. Under net metering, excess electricity generated by the solar installation is valued at the same retail rate customers would pay the utility for it1, which allows them to cancel out the cost of electricity they purchase from their utility at other times. One way to visualize this process is that when the system produces excess energy the building’s energy meter runs backward so customers pay only for their net energy consumption. Coupled with the direct decrease in energy consumption from the grid, net metering compensation often allows solar customers to pay nearly nothing for electricity. Because solar customers are paid at the retail rate for the extra energy they produce, they may wonder whether installing a very large solar system could provide a source of income rather than just savings. However, almost all net metering policies are structured so that customers are only compensated at the retail rate for solar energy up to the total amount of energy they consume over the course of the year. Any energy production beyond that is compensated at a much lower rate (this is called the utility’s Net Surplus Compensation policy). This is why solar designers typically recommend a system that produces slightly less energy than the total amount the customer needs. ~~~ Going solar is a big decision, so providing prospective customers with a concrete understanding of how it will put more money in their pockets is an essential first step in communicating the value of your solar design—in addition to quantifying how much solar energy the system will produce and exactly what their savings will be (both of which are easy to calculate if you use Aurora). We hope this article has provided a useful reference for communicating to prospective customers how going solar can significantly reduce or eliminate their cost of electricity. Check out other articles in our Solar Finance 101 series for more information on the financial considerations of a solar purchase. [Note: In this article, we are only discussing “grid-tied” solar installations, in which the homeowner remains connected to the electric grid, as opposed to an “off-grid” solar installation, which would not be eligible for net metering.] 1This is generally the case, though some utilities are implementing changes that reduce how much they compensate solar customers for the energy they produce. These changes include fees and other charges that cannot be offset by solar, or reductions in the value paid for solar energy compared to energy purchased from the grid. One example is California’s NEM 2.0 policy changes. It is important to confirm the details of how solar energy is compensated with the customer’s utility company. We discuss other factors that add complexity to net metering on the Aurora Blog in our “The Hidden Factors that Affect Solar Savings” series. See Part 1 and Part 2. About Solar Finance 101 How Solar Customers Save Money: A Beginner’s Guide to Net Energy Metering is Part 1 of Solar Finance 101, a five-article series that serves as an introductory primer on the financial considerations of solar installations: Article 1: How Solar Customers Save Money: A Beginner’s Guide to Net Energy Metering Article 2: Your Solar Finance Primer: What to Know About the Top Four Solar Financing Options Article 3: Evaluating Solar Financing Options: Factors for Your Customer to Consider Article 4: Financial Incentives for Installing Solar: A Beginner’s Guide Article 5: Quantifying Value of a Solar Installation: Some Helpful Metrics ### Your Solar Finance Primer: What to Know About the Top Four Solar Financing Options With many solar installations costing tens of thousands of dollars, a solar project is a significant investment for most customers. Fortunately, there are a number of financing options to help clients install solar without breaking the bank. Navigating the decision-making process, however, can be daunting for those unfamiliar with solar finance. In today’s article, we provide a basic primer on the ways solar installations can be financed. In the next article in this series, we’ll look at each approach—and the benefits and limitations—in greater detail. As a solar installer, being able to walk your customer through these options can make the difference in closing the sale. Additionally, it can make good business sense to work with financing partners to offer a variety of choices to meet your customer’s needs. Having familiarity with these financing options will allow you to evaluate potential partnerships. Who Owns the Solar Installation? How important is it to your customer that they own the solar project? This is one of the major considerations when choosing a financing option. With cash and loan financing, the customer will own both the PV system and the power it produces. With other financing options, like leases and power purchase agreements, the solar installation will be owned by a third-party, but the customer will have the right to the energy it produces. Ownership has pros (like tax benefits) and cons (like responsibility for maintenance). Whoever owns the system can take advantage of federal and state tax incentives. This includes the Investment Tax Credit (ITC) which allows 30% of the cost of the system to be deducted from the owner’s federal taxes. However, for this to be helpful, the owner must owe more in taxes than the ITC allows them to deduct (in other words, they must have enough tax liability). Customers without enough tax liability may find third-party ownership options preferable. As a solar installer, being able to walk your customer through these options can make the difference in closing the sale. Cash Financing For those who can afford to pay for the system upfront, cash financing is a great option. Cash is typically the cheapest choice in terms of total cost because the customer is not subject to interest payments or other fees. It also allows customers with sufficiently large tax bills to save by reducing their tax liability. The obvious drawback to cash financing, however, is that the customer needs to have enough cash on hand to pay for the system outright. Loan Financing Loans are a good option for customers who want to own their system, but cannot or prefer not to pay for it entirely upfront. A loan can be used to finance any part of the project, depending on how much the customer is willing to pay initially. As with cash deals, loans allow customers to take advantage of tax incentives. Solar loans have the same basic parameters as other home renovation loans: the lower the interest rate, the lower the overall cost, and the shorter the term of the loan, the higher the monthly payments. A key consideration for loan financing is that the monthly savings from solar should be greater than the monthly loan payments so the customer can save money from the start. Another form of solar loan is Property Assessed Clean Energy (PACE) financing. PACE loans are repaid through the homeowner’s property taxes. These loans are offered by some municipal governments in states with enabling legislation. Third-party Ownership: Solar Leases and Power Purchase Agreements (PPAs) Leases and power purchase agreements (PPAs) can be thought of as similar to renting a solar installation. By signing a contract with a project developer, the customer is entitled to the energy the system provides for a set period of time, but ownership and the right to tax incentives are retained by the developer. In both cases, the project developer (owner) is responsible for maintaining the system and monitoring how much energy it produces. As with loans, a key consideration is that the monthly payments should be less than the resulting utility bill savings. In practice, solar leases and PPAs are similar, but there are technical differences: With a lease, the customer pays a fixed monthly amount, which is calculated based on the estimated amount of electricity the system will produce. This monthly payment entitles the customer to the resulting solar energy for the duration of the contract. Solar lease contracts typically span 20 - 25 years. With a PPA, the customer agrees to purchase the power generated by the system at a set per-kWh price. This may be a fixed price for the length of the contract or the per-kWh price may increase at a specified rate over time. This escalation is typically lower than projected utility rate increases. PPA contracts typically span 10 - 25 years. PPAs are less common than solar leases because of legal barriers in some states . Solar leases and PPAs can be a good option for customers who prefer to have little or no upfront cost, and who don’t have enough tax liability to benefit from incentives like the ITC. They are also a good option for customers who want the peace of mind of knowing they don’t have to maintain or monitor the performance of their solar installation. Each of these financing options can save customers money on their energy bills, and each can be a great fit depending on your customer’s needs. Being able to provide your customers with a simple overview of the primary finance options can help demystify the process of installing solar. It’s also important as a business owner to have a high degree of familiarity with these financing approaches so you can decide which you may want to help connect your customers with through partnerships with financial institutions. Read on to the next article in this series for a discussion of some of the factors customers should consider when choosing which financing option best meets their needs. Key Takeaways: The four main financing options for solar installations are cash, loans, leases, and PPAs. All of these options can help homeowners save money on their energy bills and each can be a good choice depending on the needs of the customer. With cash and loan financing, customers will own the solar installation and, if they owe enough in taxes, can benefit from tax incentives. Solar leases and power purchase agreements (PPAs) are similar in practice to renting a solar installation; the customer benefits from the solar energy (which they purchase at a set price, typically below the retail rate for electricity), but does not own the installation. About Solar Finance 101 Your Solar Finance Primer: What to Know About the Top Four Solar Financing Options is Part 2 of Solar Finance 101, a five-article series that serves as an introductory primer on the financial considerations of solar installations: Article 1: How Solar Customers Save Money: A Beginner’s Guide to Net Energy Metering Article 2: Your Solar Finance Primer: What to Know About the Top Four Solar Financing Options Article 3: Evaluating Solar Financing Options: Factors for Your Customer to Consider Article 4: Financial Incentives for Installing Solar: A Beginner’s Guide Article 5: Quantifying Value of a Solar Installation: Some Helpful Metrics ### Evaluating Solar Financing Options: Factors for Your Customer to Consider In addition to understanding what financing options exist to help customers pay for a solar installation (as discussed in the previous article in this series), it is important to understand how these options compare side by side. In this article, we walk you through some important considerations to bear in mind when evaluating the various financing options. The chart in Figure 1 below may be a helpful reference when evaluating which financing method best fits the situation and priorities of a prospective solar customer. The considerations illustrated in the chart are discussed in greater detail below. Figure 1. A comparison of the differences between the four most common solar financing options. Note that these considerations are presented from the perspective of the homeowner (for instance, incentives for systems financed with a lease or loan may be available to the third-party system owner, but typically would not be available to the homeowner.) Upfront Payment Requirements Solar loans, PPAs, and leases often allow homeowners to install solar with little to no payment upfront. However, should the homeowner decide to pay a small portion of the cost upfront, it may be possible for them to obtain more favorable terms and interest rates for their loan or lease. With cash financing, the entire cost of the system is paid upfront. Maintenance Responsibility Generally, solar installations require very little maintenance, as solar panels are durable and weather-resistant. Nonetheless, if a homeowner finances their system with cash or a loan, they are responsible for any maintenance should the installation be damaged. This is not the case for the majority of PPAs and leases, in which the third-party provider is responsible for maintenance or repairs. However, in some of these agreements, the homeowner may still be responsible for specific maintenance costs like inverter replacement. Incentives Homeowners that finance their solar installation with loans or cash are eligible for several federal, state, and local incentives for going solar (discussed in greater detail in Part 4 of this series, Financial Incentives for Installing Solar), such as the federal Investment Tax Credit, which allows system owners to deduct 30% of the cost of the solar installation from the amount they owe in federal taxes. These incentives apply only to the owner of the installation and thus are not available to customers who finance their installations with leases or PPAs. Credit Score Requirement While there is obviously no credit score requirement when paying for a solar installation in cash, a credit score within a certain range may be necessary to qualify for loans, leases, and PPAs. Generally, a FICO credit score in the high 600s (out of 850) gives a borrower a good chance of being accepted for these financing options. For those with a lower credit score, some states offer special loans or financing options, including on-bill financing, which attaches the payment of the loan to the borrower’s electric bill. Monthly Payment Considerations One benefit of paying for a solar installation upfront with cash is the absence of monthly payments. From day one, 100% of the energy produced by the system is free for the homeowner, no strings attached. This is not the case for loans, leases, and PPAs. With loan financing, minimum monthly payments are required to pay off the solar loan. While this monthly minimum payment is often fixed, homeowners can choose to pay more than the minimum in order to pay off the loan sooner and reduce what they pay in interest charges. Like loans, solar leases have predetermined, fixed monthly charges; these charges continue for the duration of the contract. Depending on the agreement, the homeowner may have the opportunity to purchase their solar installation at some point during the lease or after it expires. Unlike the fixed monthly payments of loans and leases, the monthly charge under a PPA will depend on the number of kWh the installation produces over the month. Although these financing options all require monthly payments, the amount paid per month will typically be less than what the homeowner currently pays for electricity, allowing the homeowner to see savings immediately. Total Savings A customer's total savings over the lifetime of their solar installation depend on many factors, including how utility rates change over time and, for solar loans, their interest rate. However, as discussed in Part 2 of this series Your Solar Finance Primer, typically cash financing maximizes lifetime savings compared to solar loans, leases, and PPAs, as customers avoid interest charges and monthly payments while gaining access to free electricity produced by their installation. Similarly, the total savings from a loan will likely be greater than from leases or PPAs, because homeowners benefit from free energy produced by their system after the loan is paid off. With leases and PPAs, homeowners are required to pay monthly for the entire term of the agreement. However, these options can still make financial sense because the payment is typically lower than what the customer would pay for the same amount of energy from their utility. Processing Time Solar leases and PPAs are typically processed quickly, often in a single meeting with the third-party financier. Solar loans, on the other hand, generally take several weeks to be approved as they involve additional financial evaluation to determine a homeowner’s creditworthiness and the interest rate the financing institution is willing to offer. Because there is no borrowing involved in cash financing, processing time is avoided entirely. Availability While loans are widely available from banks and solar lending institutions, PPAs and leases are less common. Only 26 states have clearly authorized the use of PPAs, and the legality of leases also varies across the country. Obviously, the availability of cash depends on individual circumstance. As addressed above, credit score can also affect the accessibility of some financing options, especially for those with scores below 650. ~~~ We hope that this discussion of the differences between financing options will help you guide your customers toward an understanding of which financing option will best meet their needs! For those interested in a deeper exploration of solar financing options, here are some additional resources you may find helpful: A Homeowner's Guide to Solar Financing by the Clean Energy States Alliance (CESA)  Solar Leasing for Residential Photovoltaic Systems by the National Renewable Energy Laboratory (NREL)  Homeowners Guide to Financing a Grid-Connected Solar Electric System by the U.S. Department of Energy (DOE) About Solar Finance 101 Evaluating Solar Financing Options: Factors for Your Customer to Consider is Part 3 of Solar Finance 101, a five-article series that serves as an introductory primer on the financial considerations of solar installations: Article 1: How Solar Customers Save Money: A Beginner’s Guide to Net Energy Metering Article 2: Your Solar Finance Primer: What to Know About the Top Four Solar Financing Options Article 3: Evaluating Solar Financing Options: Factors for Your Customer to Consider Article 4: Financial Incentives for Installing Solar: A Beginner’s Guide Article 5: Quantifying Value of a Solar Installation: Some Helpful Metrics ### Financial Incentives for Installing Solar: A Beginner’s Guide While the initial price tag of a solar installation may seem high, it's important to communicate to your customers that the total cost may be significantly lower after applying available credits and rebates. The federal government and many states have enacted policies to reduce the cost of solar installations in order to incentivize investment in solar energy. In this article, we present an overview of common incentives and how they work so you know what benefits may be available to customers in your state. It is important to note that these policies benefit customers who purchase their solar installation and are not available to customers who finance their system with leases or PPAs. Federal Incentives Federal Investment Tax Credit Perhaps the most well-known solar incentive, the Investment Tax Credit (ITC) is a U.S. federal policy that gives homeowners and businesses a tax credit worth 30% of the solar installation cost. This allows homeowners to subtract 30% of the cost of their solar installation from what they owe in federal taxes (their tax liability). For instance, if a solar installation costs $10,000 and the homeowner owes $5,000 in taxes, the homeowner would be eligible to deduct 30% of the cost of the solar installation ($3,000) from their taxes, allowing them to pay only $2,000 in taxes that year. If the value of the tax credit exceeds the owner's tax liability, the excess amount can be applied to taxes owed the following year. Referring back to the example above, if instead of owing $5,000 in taxes the homeowner only owed $2,000, the $3,000 deducted from their taxes would be rolled over to the following year, allowing them to pay nothing in taxes the first year, and then save $1,000 in taxes the following year. It is important to note that the ITC can only be rolled over to the following year and no further. The ITC was extended until 2032 with the passage of the Inflation Reduction Act in the summer of 2022. Modified Accelerated Cost Recovery System (MACRS) For commercial customers, the federal government allows business owners to depreciate the cost of their solar installation over a period of years through the Modified Accelerated Cost Recovery System (MACRS) . While the name may sound complex, the concept is relatively simple. Depreciation refers to the reduction in value over time of an asset associated with an investment project, particularly due to wear and tear. For tax and accounting purposes, companies can depreciate their long-term assets, like solar installations, over time. In the case of MACRS, businesses can depreciate the value of their solar project over a shorter period of time. MACRS allows businesses to deduct the cost of their solar installation from their taxable income over a period of 5 years. This helps save the business money and allows them to recover the cost of the solar installation faster. Additionally, Congress has authorized something called “bonus depreciation” for the first year. This “bonus” allows the business to deduct 50% of the system cost from their taxable income in the first year, and then continue to depreciate under normal MACRS. One important caveat to be aware of with MACRS is that if the ITC was claimed on the solar installation, the total value that can be depreciated must be reduced by one-half the value of the 30% ITC (so a business could only claim 85% of the cost of the system). State and Local Incentives Many states, counties, and municipalities offer additional incentives to residents who install solar, though the available incentives differ widely by location. Below we explain the most common policies used by states and local governments to incentivize solar. To determine if your state offers incentives like these, the DSIRE database is an excellent starting point. The Department of Energy also offers a database of financial incentives for clean energy projects, which can be filtered by state, the type of clean energy, and what types of customers are eligible. Solar Renewable Energy Credits (SRECs) Many states use a policy called a Renewable Portfolio Standard mandating that utilities generate a certain percentage of their total electricity through renewable energy. A Solar Renewable Energy Credit (SREC) is a tradable credit generated by solar installations that utilities can purchase to meet this percentage. For every 1,000 kWh of electricity generated by a solar installation, one SREC is generated, which the homeowner can sell in their state SREC market. The average 5kW installation typically generates between five and eight SRECs per year. How much these SRECs are worth depends on the market price in the customer's state (which fluctuates over time). For example, between March 2018 and February 2019 the price of an SREC in Washington, D.C.’s market ranged between $420 and $290. In markets with high SREC prices, solar customers can generate hundreds or even thousands of dollars in additional income. Talk about an incentive! Figure 2. How SRECs generate income for solar system owners. SRECs are a type of Performance Based Incentive (PBI)—a category of incentives that depend upon the performance of the solar system. Other examples include Feed-In-Tariffs and certain rebates that reimburse solar customers based on the amount of energy their installation sends back to the grid. Tax Credits and Rebates In addition to the federal income tax credit available under the ITC, many states offer credits and rebates on state taxes for installing solar that can save customers hundreds or thousands of dollars. These incentives may be fixed amounts based on the number of taxpayers or people in the household or may reimburse the homeowner based on the amount of energy produced by the installation (another type of Performance Based Incentive). For example, Montana residents are eligible for a tax credit of $500 per taxpayer living in a household that installs solar, up to $1000. Tax Exemptions Many states exempt the value of a solar project from property or sales taxes. A total of 38 states offer property tax exemptions for solar installations. Thus, while the customer benefits from an increase in the value of their property by installing solar, their property taxes will not increase. Additionally, 29 states offer sales tax exemptions for solar PV components and/or installation labor which reduces the upfront cost. These incentives make solar energy more affordable for both companies and homeowners. Taking the time to understand the incentives available to your customers is essential for any solar professional, as these options can reduce customers' costs significantly without eating into your margins. We hope that this discussion of the most common incentives helps you educate prospective clients about of the programs available to help them go solar! About Solar Finance 101 Financial Incentives for Installing Solar: A Beginner’s Guide is Part 4 of Solar Finance 101, a five-article series that serves as an introductory primer on the financial considerations of solar installations: Article 1: How Solar Customers Save Money: A Beginner’s Guide to Net Energy Metering Article 2: Your Solar Finance Primer: What to Know About the Top Four Solar Financing Options Article 3: Evaluating Solar Financing Options: Factors for Your Customer to Consider Article 4: Financial Incentives for Installing Solar: A Beginner’s Guide Article 5: Quantifying Value of a Solar Installation: Some Helpful Metrics ### Why Diversity Matters for Your Solar Company—and How You Can Advance It For many of us in the solar industry, it isn’t just a paycheck that led us to this work but a desire to contribute to something meaningful. The solar industry helps make the world a better place—from protecting the climate and reducing harmful pollutants to providing families with more affordable energy. But we can also have a positive impact by ensuring that our hiring and employment practices are equitable and provide equal opportunities to people from different backgrounds. The Solar Foundation’s 2017 U.S. Solar Industry Diversity Study , released this month, is the first-ever study of diversity in the solar sector. Today, we dig into the study’s findings and examine why diversity matters, where we stand currently, and what solar businesses can do to support diversity in their teams. Why Diversity Matters to Company Success Beyond the inherent value in supporting equal opportunities for diverse groups, a robust body of research has found that diversity is a boon for business. Businesses with diverse workforces not only tend to be more profitable but also achieve higher levels of employee satisfaction and are better able to recruit and retain top talent. The Solar Foundation cites a multitude of studies that have shown bottom-line benefits for companies that prioritize diversity. This includes findings of 53% higher returns on equity for companies with more diverse executive boards compared to those in the bottom quartile for diversity, an average of 6% higher profits for companies where women hold at least a third of executive positions, and the broader finding that having women in senior management increases profitability. Beyond the boardroom, diversity has powerful benefits for company performance as well. A 2015 McKinsey study found that the likelihood of achieving above-average financial returns was 35% higher for companies with significant racial and ethnic diversity and 15% higher for those in the top quartile for gender diversity. Studies have attributed these benefits to the role of diverse perspectives in creativity and innovation, improved ability of diverse companies to connect to new markets, and better understanding of the needs of different customer bases leading to the creation of better products and services. The benefits of diversity go far beyond profitability, however. Studies also link diversity to improved well-being of employees, and relatedly, enhanced recruitment and retention of talent. A majority of candidates (67%) consider workforce diversity an important factor when evaluating companies and job offers. Where Do We Stand As an Industry? As the first study of its kind, The Solar Foundation’s report provides an important baseline for understanding how diverse the solar workforce currently is and where there is room for improvement. Although findings indicate that our industry is more diverse than others like the construction, oil and gas extraction, and utilities industries (see Tables 1 and 2 below), it is clear that there is work to do in ensuring that diverse groups are represented in closer proportion to their presence in the population. Women currently comprise 28% of the solar workforce, compared to 47% of the total labor force. People of color also represent a relatively small proportion of the solar workforce. While people of color represent 34% of the total U.S. workforce, currently 17% of solar workers are Hispanic or Latino, 7% are African American, 9% are Asian, and American Indian, Alaskan Native, and Native Hawaiian each account for less than 1%. Table 1. Racial demographics of the solar industry compared to other industries. Source: The Solar Foundation's 2017 U.S. Solar Industry Diversity Study. Table 2. Gender demographics of the solar industry compared to other industries. Source: The Solar Foundation's 2017 U.S. Solar Industry Diversity Study. Beyond just raw numbers, the study also explored differences in position and compensation level between demographic groups. Minorities and women are less represented in managerial positions. The study also illuminates discrepancies in earnings for minority groups and women. Men are significantly more likely to be paid in the highest wage bracket of $75 or more per hour, and all women and people of color are less likely to earn executive level wages compared to white men. Figure 1. Percentage of survey respondents by race and gender making $75 or more per hour. Source: The Solar Foundation's 2017 U.S. Solar Industry Diversity Study. Figure 2. Distribution of job title level by race and gender of survey respondents. Source: The Solar Foundation's 2017 U.S. Solar Industry Diversity Study. Correspondingly, there are noticeable differences in satisfaction with wage and position among minority groups. In particular, African American respondents are much less likely to report satisfaction with their pay or position; 42% indicated that they are “not at all satisfied” and only 8% of indicated that they are “very satisfied.” The study points to the widening wage gap between white employees and people of color in recent decades as a possible contributing factor. The study also looked at people’s perceptions of their ability to move up the career ladder. Women are significantly more likely than men to report that they have not been successful in moving up the career ladder (12% of women vs 4% of men). There are also notable differences in reported career mobility between racial groups. Figure 3. Perception of success in moving up the career ladder by race. Source: The Solar Foundation's 2017 U.S. Solar Industry Diversity Study. Figure 4. Satisfaction with wage and position by race. Source: The Solar Foundation's 2017 U.S. Solar Industry Diversity Study. How Can Your Company Be a Leader for Diversity? It is evident that there are areas where the solar industry has room for improvement in ensuring inclusion and growth opportunities for diverse groups. Fortunately, the Solar Foundation concludes its report with specific recommendations and action items that solar companies can take to advance diversity in the coming year. (For those interested in learning more, the report includes in-depth discussion of best practices and additional recommendations on how companies can support diversity.) 1. Create a company-wide diversity pledge. Few surveyed companies had formal policies for advancing female or minority representation (14% and 7% respectively). Adoption of a company-wide diversity pledge, with a well-planned execution strategy, can go a long way toward advancing diversity and communicating a company’s recognition of its value. 2. Establish a formal diversity tracking and measurement tool. The study also found that most companies that responded either do not track employee demographics/diversity or do not know if they do. In order to understand current levels of diversity and track progress over time, it is recommended that companies establish a formal diversity tracking process and measurement tools. Such tracking tools should consider both quantitative and qualitative information and be conducted independently to ensure transparency. 3. Broaden recruitment efforts, such as job posting sites and in-person recruitment locations. Solar industry jobs are most commonly posted on sites like Indeed, Monster, and CareerBuilder. Although these sites have a broad reach, low-income groups with limited computer or internet access or less familiarity with these sites may be disadvantaged. The report recommends expanding recruitment efforts to reach new audiences, such as reaching out to colleges, universities, and community groups that serve communities of color. 4. Implement a “blind” job application review process. To eliminate the potential for unconscious bias in the hiring process, The Solar Foundation recommends implementing a blind process for resume review. Other suggested approaches to reduce bias in hiring include ensuring diverse perspectives are represented on hiring committees, and adding language in job postings that encourages diverse candidates to apply. 5. Establish a diversity training program. Voluntary diversity training for staff that is designed with long-term impacts in mind can help not only increase workplace inclusivity, but help integrate diversity into company culture. If the value of diversity resonates with you, start where you are and do what you can. If you can advance some of these initiatives in your solar company you’ll be taking an important step toward a more inclusive, and ultimately impactful, organization. ### SmartRoof: Expanding What’s Possible in Remote Solar Design Six years ago, business school classmates Sam and Chris discovered their common passion for improving people’s lives with affordable access to solar energy. During their first year at Stanford’s Graduate School of Business, they joined forces to develop a 50kW solar installation for a school in East Africa—reducing its electric bill and providing uninterrupted access to clean energy. But while the installation took just a couple of weeks to install, they were struck by how long it took to plan and design. Designing a system on the other side of the world, conducting financial analysis, and planning its installation took months! Realizing how much time and money solar installers could save if they had a way to create accurate solar designs remotely, Chris and Sam founded Aurora Solar in 2013 to make that vision a reality. Since then, the desire to make remote design accessible and intuitive to solar installers—while being as accurate as on-site assessment—has been the driving motivation for the team, and is why we continually focus on releasing new features and functionality. Aurora has pioneered remote solar design, becoming the industry’s most validated and feature-rich solar software. However, while building an accurate 3D model of a project site is vastly faster and easier than on-site assessment, this process can still be challenging and time-consuming. Even with cutting-edge tools, like LIDAR and computer vision, there can be trade-offs between speed and accuracy. Getting every detail perfect, in spite of factors like skewed satellite imagery or irregular roof structures, can require additional time or skill, and creating a quick, simplified design might sacrifice accuracy. But what if there was a way to eliminate these trade-offs? To create the industry’s most intuitive solar design program, Aurora set out to reinvent the process of constructing a roof model, rethinking it from the ground up. This is the story of Aurora’s invention of SmartRoof, a tool that reimagines solar design. Figure 1. An example of the kind of complex solar project site model and design that Aurora’s new approach to remote site design makes possible in just a few minutes. Rethinking Remote Modeling How do you make roof modeling dramatically easier without sacrificing accuracy and functionality? Co-founder Chris Hopper has been contemplating this question since Aurora’s earliest days, and for over a year our team has been building a new feature to make this vision a reality. We wanted to not only make the process of building a site model faster and simpler, but also reduce human error, such as model inaccuracies resulting from confusing or skewed satellite imagery. Additionally, we wanted to create a tool that would make modeling unusual and complex roofs straightforward. If you’ve been designing solar installations for a while, you know that residential roofs come in a vast array of forms (for definitions of some of the roof terms we use in today’s article see our examples below). Figure 2. An example of a gable roof (2D left and 3D right) as modeled in Aurora. One of the simpler roof types to model, gable roofs are defined by having just one central ridge line. The diversity of roof types presents many modeling challenges for solar designers—from basic gable roofs (Figure 2), to hipped roofs (Figures 3 and 4), roofs with dormers (Figure 5), roofs with folds (Figures 6 and 7), and roofs where the ridge line is off-center (Figure 8). Figure 3. An example of a hip roof modeled in Aurora. In contrast to a gable roof, hip roofs have diagonal ridge lines extending from the corners to the center of the roof. Figure 4. Hip roofs come in many variations, such as this cross-hipped roof modeled in Aurora. Figure 5. A house with a dormer (circled in green) modeled in Aurora. Dormers are common roof features that have traditionally presented a challenge when creating a site model. Figure 6. An example of a Dutch gable roof modeled in Aurora. Also referred to as “attic overhang dormers,” Dutch gable roofs are defined by folds (circled in green) that create the appearance of a dormer. Figure 7. Another type of roof with folds is a gambrel roof, such as the one above modeled in Aurora. Figure 8. Saltbox roofs, like this one modeled in Aurora, are defined by an off-center ridge line. Recognizing the complexity created by the great variety of roof types, we arrived at the idea of a software tool that would be able to infer a roof's internal lines just from its perimeter. In this way, much of the time-intensive work would be done for the designer—eliminating sources of human error, and making site modeling easy and (dare we say it?) even fun. After over a year of development and extensive user testing, SmartRoof has arrived. What Makes SmartRoof Different? SmartRoof introduces several completely new innovations for remote solar design. SmartRoof’s defining breakthrough, never before achieved in solar design software, is its ability to infer the internal roof structure (how different planes and roof sections intersect) just from the roof perimeter and a few inputs from the designer (Figure 9). Figure 9. SmartRoof infers the internal lines and planes of a roof based on its perimeter. SmartRoof makes the process of drawing the roof perimeter easier by providing guides and snap functionality to get perfect 90º angles, so inaccuracies in satellite imagery don’t translate into inaccuracies in the 3D model. Additionally, SmartRoof makes modeling multilevel roofs and other complex structures easier by allowing the designer to draw roofs in multiple parts, which are then seamlessly combined. SmartRoof also makes it much easier to account for dormers and folds, two common but difficult-to-model roof features. With special dormer functionality (Figure 10), you can drag and drop a dormer onto your roof drawing and SmartRoof will incorporate it into the 3D model. With the ability to copy and paste dormers onto different roof planes, designers can save even more time. Similarly, folds—where a roof plane with a certain pitch intersects with a roof plane at a different pitch—have historically been difficult to add when building a 3D model. With SmartRoof, you can easily insert folds (such as the ones in Figures 6 and 7 above) and adjust their location as needed. Figure 10. SmartRoof’s dormer feature allows designers to drag and drop dormers onto the roof, as well as copy and paste them, for easy integration into the site model. Building SmartRoof In addition to Aurora co-founder Chris Hopper, who first envisioned SmartRoof, the core project team included Computer Vision Engineer Matt Stevens and Front-End Engineer Kelly Stevens. After conceiving of the initial idea for SmartRoof and identifying mathematical approaches that could enable this functionality, Chris developed the initial prototype of SmartRoof. From there, Matt worked to refine the underlying algorithm, and Kelly built the functionality into Aurora. Matt and Kelly also worked together to incorporate approaches for modeling dormers and combining different roof sections. After SmartRoof was developed, extensive user testing was done to ensure that this new approach to roof modeling was accurate, intuitive, and met the needs of both solar designers and salespeople. Among the modifications made based on user feedback were the ability to drag interior edges and folds and pop-ups to make it easier to make adjust the properties of different parts of the roof, like dormers (see Figure 11) or roof faces (Figure 12). Figure 11. SmartRoof has an inspector function to allow the user to modify the characteristics of dormers. Figure 12. SmartRoof users can adjust the pitch roof faces or change the height of a roof (particularly helpful when creating models of houses with roofs at different levels). Judging from preliminary user responses, the final product is already reshaping how solar designers work for the better. Discussing how SmartRoof has impacted his work, Ivan La Frinere-Sandoval of First PV Solar, says: "SmartRoof speeds up the solar design process tremendously. Instead of drawing the entire detailed roof structure we just trace the perimeter outline and the software detects the interior roof edge details. Incredible!" Aurora has come a long way since we first started our journey in 2013, but Chris and Sam’s vision of a software program that would make exceptional remote solar design faster, easier, and more cost-effective remains our guiding light. SmartRoof is our latest—but certainly not last—push to expand what is possible in remote solar design. Interested in learning more about how to integrate SmartRoof into your workflow? This tutorial provides a step-by-step overview of how to use SmartRoof. ### Solar Has Played a Key Role in Job Creation and Economic Growth: Why That Matters and Trends You Should Know Did you know that one in every 50 new U.S. jobs created in 2016 was in solar? We often think of the value solar energy offers in terms of bill savings and environmental benefits, but it also contributes substantially to the US economy through job creation. Solar is adding jobs faster than the rest of the economy, and employs more people than most other energy sectors. Add to that the fact that solar offers meaningful jobs with living wages, and it’s clear that the solar industry is creating economic opportunity both on an individual level for workers and for the U.S. economy more broadly. Data on recent trends in solar employment not only provide a lens for communicating the importance of the solar industry—essential for advocating for supportive policies—but also offer insights on steps you can take to set yourself up for career success. We explored the results of The Solar Foundation’s 2016 Solar Jobs Census —a rigorous survey of actual employers—as well as data for 2017 thus far. Whether you’re a business owner evaluating the landscape for growth, or an industry professional assessing your job prospects, these findings can help you know where you stand and identify opportunities to get ahead. Solar is a Major Source of New Jobs Between November 2015 and November 2016, the solar industry added 51,000 new positions. This growth (24.5%) resulted in a total of 260,077 industry workers at the end of that period. During this time, the industry added $84 billion to the US GDP! In 2016, jobs in solar were added nearly 17 times faster than the overall economy. And, while 2016 was a banner year for solar growth (fueled in part by the anticipated expiration of the ITC), this strong growth was not an anomaly. The industry grew at a rate of 20% annually for each of the prior three years. In total, since The Solar Foundation began conducting its annual Jobs Census in 2010, industry employment has grown 178%, creating over 166,575 new domestic living-wage jobs. Source: National Solar Jobs Census 2016, The Solar Foundation, available at: SolarJobsCensus.org (Figure 1, page 9). Solar also provides more employment opportunities than most other energy industries. Solar ranks second among energy industries in the number of people it employs, slightly exceeding the natural gas industry and surpassed only by the petroleum industry. Solar employs twice as many people as coal, three times as many as wind, and five times as many as nuclear energy. In the words of Curtis Seymour , Program Director, Renewables and Grid, at the Energy Foundation, “Rapid growth in the U.S. solar industry is helping drive a profound transformation of our economy, bringing quality jobs to communities, lowering costs for families and businesses, and reducing America’s contribution to climate change.” Looking at 2017 and Beyond At the time of the 2016 Solar Jobs Census, surveyed employers anticipated an additional 10% increase in solar jobs by the end of 2017. While the year isn’t over and data to assess this projection isn’t yet available, it’s well known that 2017 has been a tougher year for solar—particularly compared to last year’s record-breaking growth. Slower growth has been observed in both residential and non-residential sectors, a number of prominent industry players have experienced bankruptcies , and a pending trade case brought by bankrupt solar manufacturer Suniva is creating significant uncertainty.1 Market research released in June by GTM Research and SEIA predicts that new solar capacity this year will be 16% less than 2016. However, it’s important to note that this still represents growth; a total of 12.6 GWdc of new capacity is forecasted to come online. Longer term, however, there are many reasons to believe that the outlook for solar is bright. According to the same market report, over the next five years total installed solar capacity is expected to nearly triple, and by 2022 over 17 GWs of solar are expected to be installed annually. And, with cities and states increasingly making commitments to address climate change , including California’s mandate of 50% renewable energy by 2030 and a recent commitment from several Northeast states to reduce carbon emissions 65% by 2030 —there are strong indications that the solar industry has plenty of growth ahead. Source: National Solar Jobs Census 2016, The Solar Foundation, available at: SolarJobsCensus.org (Figure 2, page 11). Solar Jobs Offer Economic Advancement Not all jobs are created equal and there is a big difference between a job and a career. When examining the job creation impacts of solar, just looking at the number of jobs created doesn’t capture the full value of industry growth. It's essential to note that jobs in the solar industry are relatively well-paying and offer living wages. The Solar Foundation’s Solar Census reports a median 2016 wage for solar installation jobs of approximately $26 per hour and approximately $45 per hour for sales and distribution workers. Source: National Solar Jobs Census 2016, The Solar Foundation, available at: SolarJobsCensus.org (Figure 18, page 41). The solar industry also provides paths for low-wage workers in other roles to transition into positions with sustainable wages. The Solar Census notes that workers can make this transition in as little as 12 months with training in solar technologies, and that apprentice and entry-level workers in construction trades can advance into higher paying solar installer positions. In the words of George Hershman , Senior Vice President and General Manager at Swinerton Renewable Energy, “It’s really a wide range of people that get hired into this industry... a great aspect of this business is that it isn’t an exclusionary trade. It’s a teachable job that can create opportunity for people and give them a skill.” Actionable Insights for Job Seekers and Employers Responses from employers about the hiring process indicate that there is strong demand for workers with industry experience. Almost a quarter of employers reported that it is “very difficult” to find qualified employees and 80% reported that it is at least “somewhat difficult.” By far the leading reasons that solar employers cited for difficulty in filling open positions were 1) lack of experience, training, or technical skills; and 2) insufficient qualifications (certifications or education). Source: National Solar Jobs Census 2016, The Solar Foundation, available at: SolarJobsCensus.org (Figure 16, page 39). Across all sectors in the industry, solar employers consider experience to be the most important hiring requirement. Experience is required by 65% of employers, while just 32% require a bachelor’s degree. Source: National Solar Jobs Census 2016, The Solar Foundation, available at: SolarJobsCensus.org (Figure 14, page 37). These trends offer valuable insights on how you can improve your prospects, whether you’re an employer or an employee. For job seekers, the importance of experience in the solar sector indicates that seeking out opportunities to gain hands-on experience is a great move for increasing your desirability. Some organizations and programs that provide training include: The Solar Training Network : connects job seekers with training opportunities, in addition to sharing job openings Grid Alternatives : provides solar installation training to volunteers, including offering two certificate programs Solar Energy International : offers a wide variety of online and in-person technical training opportunities HeatSpring : offers numerous online courses in solar subjects The Clean Energy Leadership Institute : offers a competitive, educational fellowship for young professionals pursuing clean energy careers As an employer, connecting with these types of programs that offer training and experience can provide a pipeline of qualified hires. Another potential source of great hires is the Solar Ready Vets program , which trains exiting military personnel for careers in solar. Interviews with industry employers have indicated a high degree of skill transferability between military occupations and solar jobs. Interested companies can sign up to be added to the program’s employer directory. Why This Matters Keeping a pulse on industry trends can help advance your solar career. Knowing patterns in job growth and projections for the market can help you prepare for booms (or busts). And, understanding the challenges employers face in filling new roles offers insights on how to make yourself more marketable. More broadly, understanding the economic benefits solar provides is essential to effectively advocate for the industry. Many of the benefits of solar energy—like clean, carbon-free energy and utility bill savings—are well known, but the industry’s positive contributions to the economy are often overlooked. The substantial job growth resulting from the rise of solar tells an important story. Narratives used to oppose supportive policies for solar are often based on ideas this trend proves wrong. These include the idea that sustainability must come at the expense of economic growth, or that other energy industries are significantly more important for jobs. The next time you confront these misconceptions, we hope this employment data comes in handy. At the time of writing, the pending trade case brought by bankrupt solar manufacturer Suniva presents a major uncertainty for the growth of the market. The company is requesting a price floor on PV modules; if approved, a substantial contraction in the market is widely expected. ↩ For an update on the state of the solar job market in 2017, see our follow-up article, How Are Solar Job Markets Performing Around the U.S.? ### Are Small Contractors the Future of Solar? Pamela Cargill Weighs in on the Industry's Evolution Pamela Cargill is Principal of Chaolysti , a consulting firm that helps residential solar contractors succeed and reach profitability. With over ten years in the industry, she has built an impressive track record of helping solar businesses grow. In the first of two articles from our conversation with Cargill, we shared her advice for practices contractors can put in place to operate more effectively. Today, we’re pleased to share her observations on how the industry is evolving and what trends contractors should be keeping an eye on. [Please note that this interview has been edited for brevity and clarity.] As someone who works closely with many different players in the industry, what can you tell us about the current state of the solar market and how it may be evolving? I would say that we're going to continue to see small contractors take a larger and larger percent of the overall share of the market. This whole idea of having a "long-tail" is going to become irrelevant because there are just going to be small contractors. I really see that we're on track as an industry—as a specialty contracting industry—to look a lot more like HVAC. For instance, HVAC has somewhere around 450,000 to half a million contractors all over the nation and these are all small local businesses. There are some regionally focused enterprises, but there's really no such thing as a national, multi-state contracting business in HVAC. Because the solar industry is a specialty contracting space that's still so small, we have a long way to grow. According to some of the numbers I've looked at from The Solar Foundation, we have somewhere between 6,000 to 8,000 contractors nation-wide. So there's a huge difference between what our industry looks like and what HVAC looks like. But then again they also have about a 100-year head start on us. This creates some interesting dynamics. I think that as the overall growth and net profit margins of solar contractors start to look more like other traditional trade spaces, it's probably going to become less interesting for some businesses that are involved now to continue to be involved. This comes back to the importance of having that sense of why [you’re running your business]. If a contractor doesn't have a long-term vision for why they are in this business or plans for how they're going to be there in the long-term for the customers in their portfolio, I don't really see a compelling reason why they'll be in this business. This is not a sales business, it's a contracting business. And I think we're at a juncture right now where that needs to split. Yes, we still do need to have better sales and marketing practices, but we need much more focus on running a good contracting business. That's really what a lot of this is going to come down to: The more we're focused on running contracting businesses, the more we're going to start looking like other traditional trades. Recognizing that a focus on efficiency will be needed as the industry matures and profit margins become tighter, can you speak to the role of automation in solar contracting? What elements in the process of taking a solar installation from conception to project completion do you think are best suited to automation? Are there areas where you think automation can be counterproductive? The parts of the process that I see as most suitable for automating are anything that helps you track how often you follow up with a customer. During the sales process as you're continuing conversations with the customer, and you're going back and forth with them—that cadence of follow up is ripe for automation. I would be careful, though, about over automating that. You want to build a genuine relationship with the customer that you're working with. You don’t want to over send automated emails in a way that isn't personal and genuine. Automations should help you track when you had a conversation with a customer and remind you to follow up at a specific cadence, say a 5-day window. That's a good automation. Then you should personally shape that follow up. You may have a template you work from, or a content library that you send some articles from, but ensuring that the touch is really personal is critical. Another area well suited to automation is the design process. There are a lot of aspects of the initial design that can and should be automated. I can say for a fact, based on my early experience in the industry doing a lot of this work by hand—going into a string sizing website, and then going to PV WAtts, and then going to an Excel workbook for pricing, and then going to another Excel workbook for material take-off—that was not particularly effective. It took a long time, and if I got interrupted in the middle of it, it was difficult to come back to and figure out where I was. That I think is where we've made a lot of progress. Software that automates more routine aspects of the design process, so that the designer can stay more focused on ensuring that the design is meeting the objectives that the customer has stated, that I think has a ton of value. Any final thoughts you'd like to share? I would close by noting that the easy days of floundering around to be a solar contractor in this business are behind us now. My old boss called me the other night and we were catching up about the changes in the industry. We've both been in the industry for a long time and we were reflecting on how easy it was for us in those really early days to just kind of make it up as we were going along and not really have the tightest processes in place, because there was so much margin to work with. While we both had skills in construction, we hadn't worked at an HVAC company where you live and die by very small percentage points on your margin and you have to be constantly focusing on the operational effectiveness of your business. In solar, we've had [some] time to muddle through and not really focus on process. I think as we're moving into the future, it's really going to be worthwhile for us to look much more at how are other contracting businesses operate. What are the best practices from those spaces that we could bring over? Whether it be in terms of project management, scheduling and dispatching, long-term customer support, service plans, keep in touch, re-marketing, etc. That's really what's going to start driving excellence in this business in the very near future and going forward. We only have growth ahead of us in this space. It’s definitely going to be tough and there's going to be some weeding out, but I'm bullish on the growth of rooftop solar and I'm sticking with it! ### What the Total Eclipse Means for Solar Energy You’ve probably heard that the nation’s first total solar eclipse in 38 years is coming up this Monday, August 21, 2017. This rare celestial event is causing a lot of buzz—and as a solar enthusiast, you might be wondering what this means for solar power across the country. We’ve got you covered with some key things to know about the impacts of the eclipse on solar energy production in the U.S. Figure 1: The percentage of sunlight that will be obscured in different parts of the U.S. during the eclipse, and the impacts of this on utility-scale solar plants. Source: U.S. Energy Information Administration and National Aeronautics and Space Administration (NASA). Lots of Solar Energy Will Go Offline—But Don’t Expect Service Outages While America has experienced other total solar eclipses, we have more solar energy installed today than ever before. This presents unprecedented challenges for managing the electric grid. Even outside of the “path of totality,” where the sun’s light will be totally blocked, solar energy production will drop off dramatically during the eclipse. Before you get concerned that this will wreak havoc on the grid, rest assured that grid operators have been carefully planning and service disruptions are not anticipated. But this will require a delicate balancing act. There are 45 gigawatts of installed solar capacity in America today—equivalent to the horsepower of 58,500,000 horses!1 At the peak of the eclipse’s impact, solar production across the country will fall by 50%  . Bloomberg has estimated a loss of 9,000 megawatts of solar power during the eclipse, comparable to taking nine nuclear reactors offline. Figure 2: Proportion of utility-scale solar capacity at different levels of obscuration during the eclipse. Source: U.S. EIA and NASA. So how will this be managed on the grid? Grid operators, who are responsible for making sure the amount of energy being supplied to the grid perfectly matches the amount being consumed, will rely on other sources of energy—such as hydroelectric and natural gas plants—to make up for the drop in solar. California and North Carolina Will See the Biggest Impacts on Solar Production While the eclipse will be at least partially visible in all states, its solar energy impacts will be greater in some states than others. This depends on how much solar energy a state has, as well as how complete the eclipse will be in a given area. Figure 3: Impacts of the eclipse on utility-scale solar capacity by state. Source: U.S. EIA and NASA. California, which has more solar than any other state (with 40% of the nation's solar capacity ), will have the greatest overall drop in solar production—despite the fact that the eclipse will not be total in any part of the state. The state’s energy output from solar will be reduced by half, according to the California Independent System Operator (CAISO) . This translates to an estimated loss of 6,000 megawatts, or enough power to run about 6 million homes. California’s energy output from solar will be reduced by half, translating to an estimated loss of 6,000 megawatts, or enough power to run about 6 million homes. North Carolina is another state that will feel the impact of the eclipse on solar energy acutely. 4,000 megawatts of solar power will go offline there during the eclipse. According to the EIA, North Carolina has the greatest amount of solar capacity in the path where sunlight will be at least 90% obscured. Plus, because the eclipse will occur between 1 pm and 3 pm Eastern Time, it coincides with a time of peak solar production. Many other states will be dealing with these issues on a smaller scale. States in the path of totality include Georgia, Tennessee, Missouri, Idaho, and Oregon; all have increased their solar capacity in recent years. Loss of Solar Energy Won’t Be the Biggest Challenge for Grid Operators As mentioned, grid operators will rely on other sources of energy to make up for solar power that disappears during the eclipse. The biggest challenge they’ll face in maintaining grid reliability will be perfectly matching the rate at which these energy sources are activated to the rate that solar energy is dropping off. This is because, to avoid blackouts, the amount of electricity flowing onto the grid from power sources must perfectly match the amount of energy that consumers are using. While solar energy normally varies throughout the day due to weather changes, these fluctuations are much less rapid than what will take place during the eclipse. In California, for instance, energy from large solar farms is expected to nose-dive by 70 megawatts per minute, and then, as the sun reappears, flood back at 90 megawatts a minute. “While solar is ramping down, we have to ramp up the other generation. But once the eclipse is over and the sun starts coming back, we have to ramp down the other generation in order to keep supply balanced with demand,” explains Steven Greenlee , a CAISO spokesperson. Grid operators have been planning for months to make sure this process goes smoothly. Preparations have included seeking advice from Germany, which gets 40% of its energy from solar faced a similar challenge last year when an eclipse blocked 80% of its sunlight. For those curious to see the changing levels of solar production and energy demand in real time during the eclipse, CAISO has created a webpage for just that purpose . Grid Managers May Be Keeping the Lights On, But You Can Do Your Part by Turning Them Off Although disruptions are not expected, reducing your energy use during the eclipse—especially if you live in a state with a lot of solar—will be helpful for grid managers and the environment. The California Public Utilities Commission (CPUC) is encouraging Californians to cut their energy consumption because it will mean that fewer polluting sources of energy are needed to maintain service. Says CPUC presided Michael Picker , “If millions of Californians turn off appliances and power strips to unplug from the grid during the eclipse… we don’t have to rely on expensive and inefficient natural gas peaking power plants, we can have cleaner air, we can keep our system reliable....” With such a rare spectacle coming up, give your appliances a break and head outside to check it out (but not without taking precautions to protect your eyesight !). Now that you know what to expect in terms of the eclipse’s impacts on the grid, here are a few more resources you might find helpful: Want to know what to expect? Here you can preview what the eclipse will look like from anywhere in the US. Missed the boat on getting eclipse glasses? Here’s a guide to making a pinhole camera . If you won’t be in a place where you can see the total eclipse this year, you might be happy to know that there’s another one coming up in 2024. https://energy.gov/eere/articles/how-much-power-1-gigawatt ↩ ### Can Software Tell Us the Optimal Solar Design? For many new entrants to the solar industry, coming up with the best solar design for a homeowner is a daunting process. You have to take into account environmental conditions like the site location, available roof area, and shading considerations. You also have to make sure you have the right number and combination of modules and inverters to hit your energy target. Try doing all of this live at the kitchen table in front of a homeowner and it can be a nightmare. Historically, every PV system has had to be designed manually. But the multitude of factors to be considered makes this design problem difficult and time-consuming for humans to solve. For instance, a proposed design might include an inverter that is too small to handle the current of an array or panels might be situated in a way that violates fire codes or setback requirements. Even in the absence of violations like these, the proposed design may not be the best design. For example, designers might not consider that just by changing their stringing configuration, they could substantially boost the energy production of their array (our analysis of a shaded site found improvements of over 17% annually). But what if this fundamental question in solar design—“What is the best system design to meet a customer’s goals?”—could be answered by a computer? Not only could you ensure consistently optimal designs for customers, but hours of design time and associated costs could be saved. Beyond the benefits for individual designers and companies, this kind of automated design could dramatically reduce the cost of solar, making sustainable solar energy available to more people. Figure 1: Comparison of an 80% energy offset solar design created by Aurora’s AutoDesigner (left) and one created by a human designer (right).1 Note that in the AutoDesigner’s arrangement, no module was placed near the roof obstruction, and that in the human design there are two isolated (“islanded”) modules and a module that overlaps with a ridge. Solving these pressing needs in the solar industry was at the forefront of our minds, when Aurora set about developing the “AutoDesigner”—to make it possible to find the best solar design with just the click of a button. Nothing like this had ever been done before, however, and the scope of the challenge was vast. Given all the design variables, the number of possible designs for a site is often upwards of one quadrillion. To put this into perspective, if a human could evaluate a design per second, it would take them over four hundred thousand lifetimes to get through them all! In today’s article, we dive into how Aurora solved this challenge, and explain the inner workings of how the AutoDesigner finds the optimal solar system for a particular site. The Aurora AutoDesigner Team With such a difficult undertaking ahead of us, we needed to get the right people and resources in on the process. In 2014, Aurora was honored to receive a Sunshot Grant for this undertaking. Over the course of two years, the Aurora team worked with top scientists in the fields of optimization and computational mathematics to develop the algorithms and infrastructure that drive the AutoDesigner. Leading the development of our AutoDesigner feature are Oliver Toole, Dr. Madeleine Udell, and Mitchell Dawson. Oliver Toole is a Quantitative Engineer at Aurora Solar. Drawn to the opportunity to contribute to this ground-breaking undertaking, he joined the Aurora team in 2014 as one of the original six members of the company, after completing his B.S. in Electrical Engineering from Stanford University. Consulting Scientist Dr. Madeleine Udell is Assistant Professor of Operations Research and Information Engineering and Richard and Sybil Smith Sesquicentennial Fellow at Cornell University. She completed her Ph.D. at Stanford University in Computational & Mathematical Engineering in 2015, and a one-year postdoctoral fellowship at Caltech in the Center for the Mathematics of Information. Quantitative Engineer Mitchell Dawson joined Aurora in 2016. He completed his B.S. in Computer Science in June 2017 with an emphasis in Artificial Intelligence, and is currently working towards his M.S. in the same field. Defining the Challenge of Automated Solar Design To create a computer program capable of finding the optimal solar design, we had to articulate the design question in mathematical terms. Specifically, we had to formulate equations that characterize the mathematical relationships between various aspects of the design question. We started by defining the pieces of information that must be provided and what variables the equation would solve for. Required Inputs We had to start by considering what information must be known to create the optimal design. The key inputs include: an accurate 3D Site Model, the available hardware components, weather data, utility rates, and especially the customer’s objectives for the design. Figure 2: An example of an accurate 3D site model, including trees and other obstructions, created in Aurora. An accurate 3D Site Model—including trees and obstructions which dramatically impact the shading on some roof faces—provides the starting point for finding an optimal design for a specific site. This determines the spatial limitations on where panels can be placed, and how much energy they will produce. It is also essential to provide the AutoDesigner with the customer’s objectives for the solar system. For instance, a customer may want to offset a specific amount of their energy consumption, or they may want to maximize bill savings. In the AutoDesigner system, Design Targets can be entered as either a desired percentage of the customer’s energy consumption they would like to offset or a target amount of bill savings. Figure 3: In the AutoDesigner, design targets may be specified in terms of energy or bill savings. Other vital pieces of information are the components the AutoDesigner can choose from, local weather data for the site, and the relevant utility rates. Once available components—including panels, string inverters, microinverters, and DC optimizers—are specified, the AutoDesigner will evaluate designs containing some or all of the selected components to find the best ones for the particular site. Local weather data, which will impact expected energy production, must also be provided. The AutoDesigner obtains this data from local weather stations to simulate the energy production of each design on an hour-by-hour basis. Figure 4: A user can specify the hardware components that are available for the AutoDesigner to consider in designs. Finally, if a customer’s objective is a bill savings target, we must provide the pre- and post-solar utility rates. Using Aurora’s financial analysis capabilities, the AutoDesigner performs a full financial analysis for each candidate design to find the approach that maximizes savings. The financial simulation is compatible with diverse utility rate structures including tiered rates, time of use (TOU) rates, and even California’s NEM 2.0 rate. What Variables Does the AutoDesigner Solve for? The primary variables that the AutoDesigner solves for are panel locations and inverter configurations, though other elements are ultimately considered to arrive at an optimal design. Given the 3D site model, the AutoDesigner assesses all potential placements of solar panels, with some limitations on how the arrays can be arranged. Modules cannot overlap, nor should they be spaced out randomly across the roof face. Additionally, designs with rectangular arrays, that are located in high energy locations, are preferred. Figure 5: Even if energy production is not considered, panel location can have a significant impact on a design’s installation cost and aesthetic value. While these designs differ by only one panel, the design on the right is much worse. The “islanded” panel may increase the number of roof penetrations needed, and reduces the aesthetics and practicality of the design. The second key variable that the AutoDesigner solves for is inverter configuration, or the way that panels are connected to inverters. The AutoDesigner considers how many of each inverter type are needed, as well as the engineering specifications that dictate how they may be connected. In the case of microinverters, this is a relatively simple process; each panel is assigned a unique inverter. However, for string inverter and DC optimizer designs, panels must be strung to an inverter. String lengths must be compliant with the latest NEC rules and obey the inverter’s voltage, current, and power limits. Additionally, the performance implications of different inverter configurations must be considered. For example, in the case of string inverters, if a single panel is shaded then the energy output of the entire string of panels will be reduced. Finally, panels should be strung in such a way that reduces wire cost and installation time for the design. How the AutoDesigner Arrives at the Optimal Design The AutoDesigner was developed to work via a two-part process. First, the design problem is solved mathematically to arrive at a preliminary design for the site. Then, a “genetic algorithm”—which mimics the evolutionary process in nature—iterates through potential combinations, to arrive at an optimal design. The Optimization Problem To start with, the AutoDesigner uses a mathematical optimization algorithm (based on linear programming) to solve the problem (i.e., panel locations and inverter configurations) exactly. Another way of asking “what is the optimal design for a particular site?” is: “What design will minimize cost, a) without violating electrical constraints (e.g. string length and voltage/current/power requirements of inverters) and b) while meeting the customer’s design targets (producing the desired amount of energy or bill savings)?” This statement provides the basis for the optimization algorithm. If the customer’s design target is to offset a set amount of their energy consumption, potential panel locations are evaluated based on the amount of energy a particular location would produce. Alternatively, if the customer’s design target is reducing their bills by a set amount, this evaluation is based on how much a panel in that location would contribute to overall bill savings. Figure 6: A simplified representation of how the AutoDesigner selects panel locations. All potential panel placements are identified, then the locations that will be used in a design (represented by 1s) are selected based on the energy production or bill savings contributions each will provide within the context of the customer’s goals. This approach reaches a solution in a purely mathematical sense, without taking into account aesthetics or other design subtleties. This provides a starting point for evaluating potential designs. Simulating Evolution to Reach the Optimal Design Next, a genetic algorithm, which simulates the evolutionary process, is used to iterate through thousands of potentially desirable design variations and move towards the most “fit” variations. Figure 7: Depiction of the AutoDesigner's process of iterating through potential designs. Click on the GIF to see a longer video of the AutoDesigner in action. Given the complexity of the problem, we didn’t want to reinvent the wheel. Instead, the Aurora team looked to nature for a solution. A genetic algorithm that models the evolutionary process of natural selection provides a powerful way of reaching an optimal design. In this process, a group of solar designs is the equivalent of a population of individuals in nature. Each design has certain characteristics that make it distinct, just like any individual. The genetic algorithm programmatically simulates many generations, where designs (i.e., “individuals”) pair off and combine their traits to produce new designs, or “offspring.” Algorithms like this one rely on powerful computers to simulate the recombination and mutation of thousands of individuals in a fast way. Figure 8: The AutoDesigner’s genetic algorithm simulates the evolutionary process to arrive at an optimal solar design. To initiate the process, AutoDesigner creates a diverse set of potentially good designs to make up its population. It then combines these designs to create diverse “offspring” and evaluates the fitness of each resulting design (scoring them based on a variety of factors including: energy production, bill savings, aesthetics, hardware costs, and installation costs). Unfit designs are eliminated at each “generation” and the process continues until an optimal design is reached. What Does Automatic Design Mean for the Solar Industry? Aurora’s consulting scientist, Dr. Madeleine Udell, states that “the AutoDesigner solves a major problem in the residential solar industry: automated design of cost-effective, efficient rooftop photovoltaic PV installations.” The AutoDesigner is a powerful tool for seasoned solar designers as well as those new to the industry, whether you are trying to minimize shade losses, or impress a prospective client with a customized design to meet their goals. In addition to saving for individual designers and solar companies time and money, the AutoDesigner can help lower the soft costs of solar, making this clean energy source cheaper and more accessible. The U.S. Department of Energy’s National Renewable Energy Laboratory analyzed Aurora’s AutoDesigner to see how its proposed designs compared to those designed by human designers—in terms of project cost and meeting energy production or bill savings targets. In more than 70% of tests, the AutoDesigner’s designs performed better than those produced by the designer. While there is still work to be done, the AutoDesigner provides a strong foundation for allowing any solar professional to create faster, cheaper, and more efficient installations, all with just the click of a button. Acknowledgments: Special thanks to Oliver Toole and Mitchell Dawson for their advice on the development of this article and providing substantial content. Notes: Figure 1 depicts a simplified design challenge for a house that did not require fire code setbacks. For a detailed overview of NREL's analysis and Aurora's AutoDesigner, see "Optimal Design of Efficient Rooftop Photovoltaic Arrays." ↩ ### Can Solar Offer Better Returns than the Stock Market? While the cost of installing solar panels has fallen dramatically (more than 70% since 2010, according to the Solar Energy Industries Association ) and continues to decline, cost is still—understandably—a major consideration for customers. However, when assessing the price of a solar installation, it’s important to evaluate that expense like an investment and consider the value it will provide over time, compared to other ways you could use the money. One way to think about the value of installing solar is in terms of how it compares to investing in the stock market. A 2015 study by the North Carolina Clean Energy Technology Center explored the financial returns from residential solar systems around the country compared to typical returns from the stock market—and you might be surprised by the results. In many areas, the study found that the 25-year returns from a home solar system exceed those from an equivalent investment in the stock market! In today’s article, we delve into the study’s findings to give prospective solar customers a better sense of how adding solar can help your bottom-line. How Solar Returns Compare to the Stock Market The study, Going Solar in America: Ranking Solar’s Value to Consumers in America’s Largest Cities, finds that "in 46 of America’s 50 largest cities, a fully-financed, typically-sized solar PV system is a better investment than the stock market.” It also found that in 20 of those cities, paying cash upfront for the system is also a better investment than the stock market. Figure 1: The 46 cities (of the 50 largest cities) in the U.S., where the financial returns from a fully financed 5kW solar system outperform 25-year returns from the stock market. The study used a metric called Net Present Value (NPV) as the basis for the analysis. Net Present Value presents the value of future cash flows from an investment in present-day dollars. This is very important because money that you receive in the future is worth less than cash in hand today (a principle known as the time value of money). Figure 2: An example of cash flows over time from a solar installation. Net Present Value, calculated as the sum of discounted future cash flows, indicates the present-day dollar value of this future income. The study’s authors calculated the Net Present Value for a 5 kW solar installation in each of the 50 largest cities in the US and compared this to the 25-year return of the Standard & Poor’s (S&P) 500 stock index. The authors note that they selected the S&P 500 stock index for comparison because of its status as one of the “most well-known and well-diversified representations of the U.S. equities market.” For each city, the NPV of a solar installation was calculated under two scenarios: 1) if the system was fully financed (based on a loan for the full cost with an interest rate of 5%), and 2) for an upfront cash purchase. Because loan financing distributes the cost of the purchase over time, allowing customers to keep more of their income in the short-term, the financed systems had higher NPVs and outperformed investments indexed to the S&P 500 in many more areas of the country. In 92% of the 50 cities examined, a financed solar system outperformed the stock market (see Figure 1 above). Systems paid for upfront outperformed the stock market in only 40% of those cities (Figure 3). This makes the important point that different financing options can have a big impact on the value you get from your solar installation. Figure 3: The 20 cities (of the 50 largest cities) in the U.S., where the financial returns from an upfront cash purchase of a 5kW solar system outperform 25-year returns from the stock market. While the study makes a number of assumptions, including that current favorable policies—like net metering—will continue, it provides a handy illustration of the fact that solar can be a very smart investment in most areas of the country. And, this value doesn’t even include the potential increase in the value of your home as a result of installing solar, which studies have found can be significant. Another study, by the U.S. Department of Energy’s Lawrence Berkeley Laboratory , found that a typical PV system can add a premium of about $15,000 to a home’s value! The financial returns of a particular solar installation will vary depending on a number of factors including the cost of the panels, your local utility rate, and the way that you finance it. Your solar installer should be able to give you a clear picture of the value a proposed project will provide. If they use software like Aurora’s, they’ll be able to easily generate projections of the financial returns from a specific solar design under a variety of different financing scenarios. Key Takeaways: While installing solar can be a big expense, in many cases the value it will provide over time exceeds the rate of return from the stock market. Net Present Value (NPV) provides a way to quantify the present value of the future savings a solar installation will provide. It is important to consider different financing options for your solar installation because the NPV of the purchase will change under different financing scenarios. This is because money today is worth more than money you receive in the future; financing options that reduce your initial cash expense by distributing over time can help improve the value of your investment. In 46 out of 50 of the biggest U.S. cities, investment in a solar installation provides a better return than an equivalent stock market investment indexed to the S&P 500 (for a 5 kW installation fully financed by a loan with a 5% interest rate). In 20 of those cities, an upfront, cash purchase of a 5 kW system also provided greater returns than the stock market. ### These Practices Will Make Your Solar Business More Successful: Pro Tips from Pamela Cargill Pamela Cargill is Principal of Chaolysti , a consulting firm that helps residential solar contractors succeed and reach profitability. Her decade plus of experience in the solar industry spans the entirety of residential solar operations including design engineering, project management and installation, process design/automation, operations strategy, and software planning and integration. Cargill started her solar career as the second employee of a small solar installation company and played a key role scaling it into a $1M 8-person operation and, after two acquisitions, into a $60M regional installation leader. Needless to say, Pamela Cargill has a wealth of solar industry knowledge. We were thrilled to have the opportunity to speak with her and bring some of those insights to you. In the first of two articles resulting from our interview, Cargill shares some management advice for running a successful solar business. In a subsequent article, we will share her perspective on how the solar industry is evolving. [Please note that this interview has been edited for brevity and clarity.] Why is it important for solar contractors to have a clear sense of their business goals? Of all the businesses I meet with, the ones where the leadership has the clearest and best-articulated vision of "why"—why everyone including themselves is showing up every day—those are the companies that I find are really run in the most sane manner. The why is very important. Defining a sense of why gives contractors the ability to step back from what they're doing and focus on the big picture. Where things start to get fuzzy is when we talk about "why," because the why is not something that's easily expressed in language. It's usually deeply felt beliefs and personal convictions. But when we can articulate those convictions, that's how we achieve values-alignment across the company. It allows us to ensure we're bringing in employees that are aligned with those values, and that we're reaching out to our customers and aligning with their values. When I see that alignment happen, because people understand “why,” that's really where I see the magic happen. What are some best practices for solar contractors to adequately balance their long-term, big picture business goals with the daily demands of their work? The most important one is to set up structures within your company that help you check in with that sense of why on a regular basis. A critical part of that is to have regular team meetings where you focus on the most important things (not just status updates) and use that time to make decisions together. If the only thing you're meeting about is what is going on, then you're never going to have time to consider whether how you're doing that is the most effective approach. And if you can't evaluate your processes, then you're never going to have a chance to reflect more deeply on whether you have the right motivations, the right "why" behind what you’re doing. When choosing metrics to measure success, what should solar companies bear in mind? I definitely see people tracking too many metrics, and a lot of them aren't actually important enough to drive business decisions. It's easy to go after things like how fast you're moving a project between one milestone and another. But unless you understand why that matters, there's really no reason to be tracking that level of detail. Having more data in front of you doesn't necessarily help you make better decisions, it can actually end up clouding your ability to act. When advising companies, I usually start with first making sure the contractor understands their sense of why, and then their sense of how, and then their sense of what. From there you can have a goal that comes out of that—that goal is a big picture goal for the business. It needs to be measurable, it needs to be actionable, it needs to be timely. From that big picture goal, you can then line up the key performance indicators to help you reach it. And a lot of that is going to come down to very big numbers—things like your customer acquisition costs, your operating expenses, and your cost of goods sold. Those three things are the picture of health for your company. If you can keep track of what's happening in those three areas, and how they're affecting each other, then you can start drilling down into more detailed metrics. I'm big on the rule of three; anybody at any given time, shouldn't be tracking more than three metrics. Otherwise, you can have all the data in the world and have zero insight. One of the services you provide for solar contractors is to help them identify inefficiencies in operations and processes that cost them time and money. What are the most common mistakes you see solar companies make that lead to decreased revenues? I would say it's having too singular a focus on optimizing their sales and marketing. Understandably, customer acquisition cost is a very hot topic in the solar industry—it's definitely hurting a lot of contractors. But what I want to help contractors understand is that adopting solar is a process that your customer engages in; it starts before they even get to the funnel, and it's not over when their project is completed. Given that, they spend less time in the sales process than they spend, proportionally, in any other part of the process. So why are we spending—let's just say, theoretically—90% of our resources optimizing their experience in sales, and just 10% of our resources optimizing the customer experience within the project delivery cycle and post-project completion? Contracting is mostly about the experience a customer has as the project is happening. As they are getting notifications, as the installation is happening, as the inspections are going on—that's the customer experience. All of those elements add up to whether or not a customer is, in the end, satisfied or dissatisfied. That is more likely to lead to them referring or not referring other customers than what happened during the sales process. ### How Computer Vision Is Revolutionizing Solar Design Here at Aurora, one of our primary goals is to reduce the cost of solar by providing installers with tools to make their work more efficient. By developing techniques to design PV systems quickly and accurately without having to visit the site, we eliminate the time and costs associated with truck rolls. Remote system design has the potential to reduce the cost of solar by as much as $0.17/W, according to the U.S. National Renewable Energy Laboratory (NREL). Designing a solar installation remotely requires an accurate 3D model of the roof and its surroundings. This ensures that the system is appropriate for the site and enables accurate modeling of the energy it will produce. There are multiple ways to create a representative 3D model of a site, including the use of LIDAR data, which is gathered by scanners that emit pulses of light energy (using a laser) at buildings and other objects in an area, and measure how long it takes for the pulse to return. The use of LIDAR data is one important element of Aurora’s work to improve the solar design process through remote site modeling. "The high accuracy, high resolution, three-dimensional information inherent in a LIDAR dataset has been game-changing on so many levels, and to be honest I believe we're still on the front end of the adoption curve,” says Jason Stoker, U.S. Geological Survey Physical Scientist and Chief Elevation Scientist for the National Geospatial Program. However, LIDAR data is not available for all areas, and not always current where it is available. Computer vision—the use of computers to interpret visual images—provides additional ways to remotely model a solar project site. With computer vision, widely available aerial and street view imagery can be used to extract information about the scene. Because of this, computer vision has the potential to transform the solar design process. Aurora has invested in developing these cutting-edge tools with our team of experienced computer vision engineers. In today’s article, we delve into current applications of computer vision in solar design and how they work. In future articles, we’ll take a broader look at how this technology enables industry-level changes. Aurora’s Computer Vision Team Aurora’s Computer Vision research and feature development is led by Computer Vision Engineers Matt Stevens, Ganesh Nunnagoppula, Maxwell Siegelman, Adriel Luo and Consulting Scientist Dr. Amir Zamir. From left to right, Aurora's Computer Vision Engineers Matt Stevens, Ganesh Nunnagoppula, Maxwell Siegelman, and Adriel Luo. Matt received a B.S. in Computer Science from Stanford University with a concentration in Artificial Intelligence in 2016. Matt joined Aurora in 2014. Ganesh received a Master's degree in Electrical and Computer Engineering from Carnegie Mellon University in 2015 and his B.Tech (Bachelor of Technology) degree from the Indian Institute of Technology Kharagpur (IIT Kharagpur) in 2016. Maxwell received a B.S. in Symbolic Systems from Stanford University, followed by a Master's in Computer Science from Stanford in 2017. He joined Aurora in 2017.  Adriel Luo received his B.S. in Computer Science from Carnegie Mellon University in 2018. He interned with Aurora in the summer of 2017 and joined the team full-time in of 2018.  Amir is a Postdoctoral Researcher in Computer Science at Stanford University, where he works in the Computational Vision and Geometry Lab. He received his Ph.D. from the University of Central Florida’s Center for Research in Computer Vision in 2014. Making Remote Solar Design More Accurate One exciting application of computer vision in remote design is the ability to accurately measure distances using images of a site. This is made possible by the mathematical technique of triangulation. Think back to your high school trigonometry class—you might recall that if you know the length of one side and two of the angles of a triangle, you can easily calculate the remaining two sides and angle. This process is based on the same rules. Triangulation, commonly used in nautical navigation, allows you to determine the distance to an object if you know the direction from two known locations. With this approach, computer vision can reconstruct the 3D shape of objects using images from multiple angles of a scene. If you form two rays extending out from the viewing locations, the rays will intersect at the location of the object. An illustration of how computer vision uses triangulation from two different perspectives to determine distances. In this example, the distance between the two points on the house (indicated by red dots) is calculated. Aurora's 3D measurement tool uses any satellite or aerial imagery (such as Google, Bing or even aerial imagery captured from a drone) and Google Street View imagery to provide those two different viewpoints needed to use triangulation. These images also provide information on the camera position that is accurate within a few feet. With this data, computer vision allows project designers to extract 3D measurements from the scene—such as the slope of a roof or the heights of chimneys or trees—ensuring the accuracy of the site model. Aurora’s 3-D measurement tool gives solar designers the ability to take measurements of a project site using aerial and streetview imagery. Click on the GIF above to see a longer video of this feature in action. NREL has analyzed Aurora’s 3D measurement tool and validated its accuracy; roof slopes can be measured to within 2 degrees and distances to within six inches. Two thousand measurements per week are taken using Aurora’s 3D measurement tool, each one serving to enhance the accuracy of the design. Speeding Up the Design Process Computer vision can also be used to speed up the tedious process of drawing a 3D model of a site. One of the most repetitive tasks when modeling commercial roofs is placing obstructions. Often, these roofs will have the same kind of obstruction in many places—such as skylights, vents, or pipes. Using an approach called template matching, computer vision can automatically detect these instances in the imagery. Satellite imagery showing obstructions on a commercial roof (left) and Aurora’s automatic identification of similar obstruction instances (right). With Aurora's Automatic Obstruction Detection tool, the user can select a particular obstruction as a template to guide the identification of other similar instances. Aurora then sweeps over the image looking for similar obstructions. For every possible location of the obstruction a score is generated based on how similar it is to the template. Then Aurora places obstructions at the highest-scoring locations. In this way, a time-consuming process can be reduced just a few clicks. “Aurora’s automated obstruction detection feature has been a huge help. We used to spend hours drawing out each individual skylight and AC unit, particularly on large data centers and warehouses, and this feature has easily cut our rooftop design time to a fraction of that,” says Douglass Jordan, Project Manager, Pre-Construction Services at SunPower.  Aurora’s obstruction detection features make it possible to automatically identify and model in 3-D all occurrences of similar obstructions instead of having to draw each by hand. Click on the GIF above to see a longer video of this feature in action. As you can see, computer vision has huge implications for cutting costs in the solar industry. As a solar contractor, being able to accurately model a customer’s home or commercial site remotely saves your team time-intensive site visits. It can further speed up the remote design process by automating repetitive tasks, like identifying obstructions. Aurora recently completed a $500,000 grant from the Department of Energy’s SunShot Incubator program to develop these features as a means to reduce soft costs and advance the growth of the solar industry. And this is just the beginning. As the applications of computer vision evolve, the Aurora computer vision team will continue to bring the latest innovations of the field to the industry, helping installers create PV projects quickly and accurately. Key Takeaways Remote solar design can help save solar companies time and money by eliminating the need for onsite measurements. NREL has estimated this can reduce the cost of solar by as much as $0.17/W. Remote design requires the development an accurate 3D model of the project site; computer vision—a field of computer science that teaches computers to interpret visual images—enhances accurate remote site modeling in multiple ways. One way that computer vision can increase the accuracy of 3D models of a solar installation site is by making it possible to take accurate site measurements from photos, including heights and roof slopes. This is made possible by using the mathematical technique of triangulation. Computer vision can also dramatically speed up the process of modeling a site by automatically detecting obstructions on the roof, eliminating the need for the designer to draw each one by hand. Aurora is continuing to invest in Computer Vision and Artificial Intelligence applications to make solar more ubiquitous. ### An Impending SDG&E Deadline Has Big Implications for Solar Customers If you’re a solar installer in the San Diego area, there’s an upcoming deadline this week that you should be highlighting for your customers because it may make a big difference in their savings from solar. Starting in 2019, San Diego Gas & Electric (SDG&E) will require time-of-use (TOU) rates for all customers. These new TOU rates will be less favorable to solar customers than SDG&E’s current TOU rates due to peak pricing periods later in the day—3pm to 9pm—when solar energy production is lower. This means customers will earn less for exporting excess energy and have to pay more for evening energy purchases. However, customers who switch to SDG&E’s current TOU rate by this Friday, July 28th, will be able to retain their existing TOU rate for the next five years, rather than having to immediately switch to the less favorable TOU rates when they are rolled out two years from now. Who does this deadline affect? This deadline is relevant to solar customers of SDG&E who are currently on tiered rates (such as Schedule DR ), rather than TOU rates. Many SDG&E solar customers with net metering have elected to remain on tiered rates 1 because they offer lower prices per kilowatt hour up to a certain baseline level of consumption. With this deadline approaching, the two options for these customers are to: keep their existing tiered rate for two years, after which the rate will close and the customer will have to switch to the afternoon-peaked TOU rate, or switch to a TOU rate (such as DR-SES ) now and keep it for 5 years before switching. So what’s the best option? We used Aurora’s financial analysis features to shed some light on this question. Figure 1: A timeline comparison of when customers’ utility rates will change depending on whether they enroll in an existing TOU rate before Friday’s deadline (bottom) or not (top). What action should solar customers take? We analyzed five designs in Aurora with uploaded interval (Green Button) data. Among these, all five designs benefitted from switching immediately to schedule DR-SES. In fact, DR-SES usually offers a lower bill for most customers with over 50% of their energy consumption offset by solar, thanks to a combination of high rates during the day, when houses are producing the most solar energy, and lower rates at night. This makes sense when looking at how the rate structures are broken down. While keeping the tiered (DR) rate offers lower cost electricity since solar customers tend to stay within their baseline allowance, the current TOU rate (DR-SES) offers a massive amount of credits for energy pumped out of the house during the middle of the day—a whopping additional 30 cents per kWh! Figure 2: A comparison of SDG&E rates. The tiered “DR” rate (left) does not charge different prices by time of day, but prices are higher over a certain level of energy consumption. In contrast, time-of-use rates—including the current “DR-SES” rate (center) and the “TOU-D-E1” rate (right)—charge higher prices during “peak hours,” though the timing of different prices varies. Meanwhile, the future TOU rate pushes the peak costs to later in the day when the customer is more likely to be buying electricity from the grid. If we look at a customer’s utility bills under an approximation of the future TOU rate2 with peak hours from 3pm-9pm (based on SDG&E’s TOU-DR-E1 rate ), we find that most customers end up paying more than their existing tiered schedule. If a customer were to stay on a tiered rate and have to switch to a rate like TOU-DR-E1 in two years, they will see an increase to their bill. When will SDG&E’s future TOU rates be favorable? There are some instances where SDG&E’s future TOU rate (exemplified by TOU-DR-E1) is actually favorable. This happens in situations where the customer has a high energy usage during the middle of the day, which makes both SDG&E's current TOU rates (DR-SES and TOU-DR) unfavorable, and an energy offset percentage of less than 50%, which means that they can’t offset expensive parts of a tiered rate schedule. So if you’re running a home office or are blasting the AC away, you might actually see your bill drop. Since the upcoming 2019 rate change will actually be beneficial for these customers, they don’t need to worry about enrolling in the current TOU rate by Friday’s deadline. In fact, they might even want to opt-in to TOU-DR-E1 before 2019 to take advantage of savings. What does this mean? It’s clear that solar customers in the San Diego region should think carefully about whether to enroll in a TOU rate by Friday in order to maximize their savings from solar over the next five years. As an installer in the region, being able to advise your customer and demonstrate their potential saving from a particular rate will help them maximize the value of their solar investment. Solar software with financial analysis capabilities can be very helpful in assessing what rate will be most beneficial in a particular customer’s case. Key Takeaways: Starting in 2019, time-of-use rates (TOU) will become mandatory for all San Diego Gas & Electric (SDG&E) customers. These new TOU rates will be less favorable to solar customers than current TOU rates, due to peak pricing periods later in the day. Solar customers currently enrolled in a tiered rate who switch to SDG&E’s current TOU rate by this Friday, July 28th, will be able to retain their existing TOU rate for the next five years. In most cases this will be financially advantageous. There are some instances where SDG&E’s future TOU rates will be favorable, particularly when the customer has a high energy usage during the middle of the day and an energy offset percentage of less than 50%. Solar software with financial analysis capabilities, like Aurora, can help determine the best course of action for a particular customer. Customers can also call SDG&E at 1-800-411-SDGE (7343) and ask to speak to a Net Metering or Solar Specialist for more advice. Logistical Notes: Friday’s deadline is the deadline for customers to request to switch to an existing TOU rate, so there is still time to make the switch. To make the switch, customers should visit to this SDG&E Webpage: https://www.sdge.com/clean-energy/overview/overview-nem-rates and fill out the Optional Rate DR SES Authorization Form at the bottom of the page and fax it to SDG&E. Customers should also call SDG&E's Customer Contact Center at 1-800-411-SDGE (7343) and ask to speak to a Net Metering or Solar Specialist. This case only applies to customers who installed solar before June 2016; customers who added solar after that point were required to enroll in TOU rates under California’s new net metering policy, commonly known as NEM 2.0. These customers, on Schedule NEM-ST (NEM 2.0), will be able to keep their existing TOU rate until 5 years after their system came online. ↩ Because the final rate details have not been released, to calculate how customers’ bills will be impacted by the future TOU rate we used a modified version of SDG&E’s rate “TOU-DR-E1.” This experimental rate was rolled out by SDG&E as a pilot program to inform the development of the mandatory TOU rate for residential customers, so it provides a good indicator of what the eventual rate will look like. However, SDG&E has indicated that peak hours under the final rate are expected to be between 3pm-9pm, so we created a custom utility rate in Aurora’s software with the same parameters as TOU-DR-E1 but adjusted peak hours. ↩ ### White Paper: The Financial Impact of Net Energy Metering 2.0 Policy Examining the Effects of Non-Bypassable Charges with Load Profiles and Systems Designed in Aurora Net Energy Metering (NEM) 2.0 is now the official utility rate policy for solar customers in California – but few people truly understand what it means for the returns of residential solar installations or how solar designs should be adapted to maximize savings under this policy. We evaluated over 600 solar projects designed in Aurora to determine how NEM 2.0 changes the financial returns from solar. Next, we analyzed over 900,000 design variations to identify the new design best practices to account for NEM 2.0. Our surprising results highlight how NEM 2.0 is both a great challenge, and a great opportunity for the solar community. Click here to download our full findings! Please note: When you click the link, a pop-up should appear allowing you to enter your contact information to download the report. If this does not occur it may be a result of a pop-up blocker. In this case, we recommend opening this page in the Incognito or Privacy Mode of your browser, which will prevent any conflicts with your cache, cookies, or any browser extensions. ### Intriguing Insights from Intersolar: New Frontiers and Resources to Reach Them Last week we were thrilled to exhibit at Intersolar and get to meet many of our customers and supporters. We also enjoyed the opportunity to see many interesting developments in the industry. For those who weren’t able to be at the expo, we wanted to share a few of the technologies and programs we found particularly noteworthy. Aurora co-founder and COO Samuel Adeyemo discusses our software solutions with Intersolar attendees. Sales Development Representative Cara LoPiano talks with booth visitors. Bringing Solar to New Places A number of the technologies and programs that stood out to us on the Intersolar expo floor were focused on opening up new frontiers for solar development. Solar on Water One of the many cool things that piqued our interest at Intersolar was Ciel et Terre’s Hydrelio Floating Solar System which supports the installation of solar arrays on bodies of water—including quarry lakes, irrigation canals, and remediation and tailing ponds. A solar installation on a body of water in Japan that utilizes Ciel et Terre’s Hydrelio technology. Photo Credit: Ciel et Terre . We love how this technology opens up the possibility of solar in non-traditional locations. The company notes that the technology is particularly well-suited “for energy and water-intensive industries who cannot afford to waste either land or water,” such as “wineries, dairy farms, fish farms, mining companies, waste-water treatment plants, irrigation districts and water agencies.” The patented floating platform for solar panels can be anchored in place so that it rises and falls with water level variations but remains in the same location. After assembling the platform with solar panels, it is towed into its designated location and attached. The platform is also able to withstand up to 130 mph winds and is even compliant with drinking water standards, so it can be installed in places like reservoirs. A diagram of Ciel et Terre’s Hydrelio components. Photo Credit: Ciel et Terre . Solar on Landfills Another technology that we were excited to see expanding the siting options for solar was Gamechange Solar’s landfill racking products . These racking solutions have been used at landfill and brownfield sites around the country. We’re inspired by the prospect of using blighted, otherwise unusable landfill space to generate energy from the sun. A 12.9 MW solar project constructed on a landfill in New Jersey with Gamechange Solar’s Pour-in-Place System. It is the largest superfund landfill solar system in US. Photo credit: Gamechange Solar  . These ballasted ground racking systems are designed to meet the unique challenges of installing solar on landfills and brownfields, where precautions need to be taken to ensure that the installation doesn’t disturb the ground below. Using landfills and other similar sites for solar development helps preserve habitats and open space and turns these traditionally undesirable locations into assets that benefit the community. For instance, a 12.9 MW solar project developed by GameChange Solar on a landfill in New Jersey now powers 40,000 nearby homes. Solar in New Communities Another compelling initiative we saw that’s bringing solar to new places—this time through capacity-building and policy changes, rather than new technologies—is the SolSmart program . The program works with cities to identify policy factors that present challenges to solar growth. Photo credit: SolSmart . SolSmart is a national designation program, funded by the U.S. Department of Energy SunShot Initiative, that recognizes communities that address local barriers to solar energy development. The program provides free technical assistance for local governments, led by the Solar Foundation , on how they can make their communities more solar-friendly. In particular the program focuses on reducing soft costs for solar by making sure local government procedures (such as permitting, planning, and zoning) don’t introduce unnecessary barriers to solar development due to complexity and red tape. Communities around the country that have obtained the SolSmart designation. Image credit: SolSmart . Since its creation in 2016, more than 50 cities, counties, and towns across the US have achieved the designation. We’re thrilled to see programs like this helping communities to advance the growth of solar energy! Resources to Strengthen Your Solar Business While you may not be planning on installing solar on landfills or water anytime soon, wherever and however you’re looking to grow your solar business there are a number of great resources to support your goals. From finding the right employees to strengthening solar skills, here are a couple of programs that inspired us at Intersolar. A Pipeline of Solar Talent In any industry, finding talented individuals to join your team can be a challenge, and that’s certainly true in the solar industry, which is growing 12 times as fast as the rest of the economy.1 Image credit: The Solar Foundation . But the Solar Foundation’s Solar Training Network makes it easier for solar companies and qualified job seekers to connect with its online solar career platform . The Solar Training Network aims to “meet the workforce needs of the solar industry through solar training and strategic employment partnerships.” Solar Training and Credentials Another resource that caught our attention was the solar training offered by Solar Energy International (SEI) . The nonprofit education organization offers many different ways for solar professionals to strengthen their skills and deepen their knowledge. Resources and course selections from Solar Energy International. SEI offers online courses as well as classroom and hands-on lab training on solar PV (as well as solar hot water and micro-hydro) topics, in addition to producing textbooks and e-books. SEI also provides certifications and licensing (including NABCEP certification) and certificate programs. Whether you’re looking to expand your solar skillset, strengthen your resume, or transition into the industry, SEI has options worth exploring. We love the opportunities that conferences like Intersolar provide to see what’s happening in the solar sector and connect with customers, supporters, and solar enthusiasts. These are just a few of the many interesting technologies and organizations we saw at Intersolar. Tweet us @aurorasolarinc to let us know what else intrigued you at #intersolar! Sales Consultant JT McCook poses with our booth setup before the start of Intersolar. Cover Photo Credit: Intersolar . https://www.thesolarfoundation.org/wp-content/uploads/2016/06/Solar-Training-Network-Factsheet-FINAL-6.29.pdf ↩ ### Commercial Solar Financing: Three Bottom-Line Benefits to Going Solar Why are more and more businesses going solar? For one, being eco-friendly isn’t just good for the earth, it’s becoming increasingly good for the brand; more than two-thirds of consumers prefer to do business with environmentally responsible companies. Moreover, as PV prices drop, businesses are increasingly attracted to the strong financial benefits of going solar as well. Financial Benefits of Solar to Business Save on Electricity Bills: According to the Environment America Research & Policy Center, if all of the big-box stores in the US installed solar, they could collectively save $8.2 billion annually on their electricity bills. Additionally, in certain states such as Massachussetts, performance-based incentives such as Solar Renewable Energy Certificates (SRECs) directly translate energy production into increased utility bill savings. An example of a commercial customer's savings after installing solar, estimated in Aurora. Save on Taxes: The Investment Tax Credit (ITC) allows owners of newly installed PV systems to receive a federal tax credit for 30% of the system cost. The full 30% credit will last until 2019, after which it will incrementally decrease through 2021 but will remain at 10% thereafter for commercial projects. Solar equipment is also eligible for accelerated depreciation thanks to the Modified Accelerated Cost Recovery System (MACRS), which allows an 85% deduction of the system value from property taxes for five years of purchase. For solar installations that are financed with a loan, the interest paid on the loan also lowers a client’s tax liability. Protection against Inflation: Aurora’s study of EIA data shows that commercial utility rates increased an average of 2.4% per year between 2000 and 2015. Fortunately, the cost of producing solar energy stays largely constant over time. By investing in a PV system, a company can protect itself from hikes in electricity costs by offsetting its consumption in part, if not entirely. Financing Options Of course, not all businesses want to—or are able to—pay upfront. For those who cannot purchase the system upon installation with cash, other financing options can enable businesses to reap the environmental, social, and financial benefits of solar—sometimes without putting a penny down. However, there are long-term tradeoffs to consider. Cash: In purchasing the system upfront, the business reaps the full benefits of savings on electricity bills, tax reduction, and hedging against inflation. However, owning the solar installation does mean that the business is responsible for all maintenance on the system. Loan: Paying with a loan also ensures that the benefits of utility bill savings, lower taxes, and inflation hedging accrue to the business. A loan will result in less cash being paid up front for the solar installation, at the expense of interest accruing over the loan’s duration. However the interest payments on the loan are typically lower than the savings on the electricity bill, making this an attractive financing mechanism. Furthermore, interest paid in a solar loan is a tax deductible event. Lease/PPA: Leases and PPAs are unique in that the business does not own the PV system. Instead, the system is owned by a third party which sells the electricity produced by the system to the business. With a lease, the business pays a fixed monthly amount for the right to use the PV system. With a PPA, the business purchases the power generated by the system at a pre-determined price per unit of energy the system produces ($/kWh). This lease payment, or the PPA rate, are often lower than the businesses bill savings or the prevailing utility rate respectively. This allows companies to save money on their electricity bills, and they do not have to worry about maintaining the system. However, since the system is owned by a third party, businesses do not get the tax savings, and they may not get the full inflation protection. With so many nuanced financing options, it is critical to be able to analyze the best choice for your customer. Given the correct financial analysis tool, commercial installers have the power to bring any business to a greener and brighter bottom-line. ### UPDATED — NEM 2.0 Arrives in SCE Territory - Here’s What You Need To Know April, 2023 UPDATE The Net Billing Tariff — commonly known as NEM 3.0 — has taken effect. Please visit our NEM 3.0 resource page all the latest information. Here are some quick links for further reading: How to sell solar in 2023 despite NEM 3.0 California Net Billing Tariff (NEM 3.0): frequently asked questions Should your PV systems face west with California's Net Billing Tariff? Explaining and modeling California's Net Billing Tariff (NEM 3.0) Contact us to quickly run through any additional questions Click above to learn more about selling solar under NEM 3.0. Original blog below As you’ve likely heard, California is unveiling a new approach to net energy metering commonly referred to as NEM 2.0. This new net metering policy began in SDG&E territory on June 29, 2016 and in PG&E territory on December 15, 2016. On July 1, 2017, NEM 2.0 became required for all new solar customers in SCE territory as well. This means that, as of this month, NEM 2.0 applies to solar customers of all the major California investor-owned utilities. There are 4 major changes that NEM 2.0 introduces (as highlighted in our blog post on the topic): NEM 2.0 customers accrue “non-bypassable charges” (NBCs) over the year that can’t be offset NEM 2.0 customers are compensated slightly less for produced electricity NEM 2.0 customers must enroll in a time of use (TOU) rate if available NEM 2.0 customers pay a small interconnection fee As a solar installer in California, what do you need to know to explain NEM 2.0 to prospective customers? We’ve put together a handy guide with the key points: [Note: Aurora customers who want to understand how to model NEM 2.0 for project financings should consult this Aurora Help Center article.] What’s the purpose of NEM 2.0? The original NEM 1.0 policy placed a cap on the total amount of distributed renewables that could be installed. This limit was set at 5% of the generation capacity in each of the major utility regions. As each of the 3 major California utilities approached this limit, the California Public Utilities Commission developed a new NEM policy. What’s changing? Most of the core elements of NEM 1.0, including market rate compensation for surplus electricity produced, remain intact under NEM 2.0. However, solar customers now contribute to certain public programs, like the decommissioning of retired nuclear power plants, through NBCs—a portion of their bill that cannot be offset. Under NEM 1.0, solar customers often had little to no electricity bill at the end of the year. As a result, revenue to these programs dwindled since part of the electric rate pays for these programs. The introduction of NBCs serves to address this issue. Why are TOU rates now mandatory? TOU rates, which charge higher prices for electricity during periods of higher demand, encourage customers to adjust their consumption to reduce strain on the electric grid. In places like California, where a high proportion of electricity comes from renewable sources whose production varies throughout the day, this is particularly important. The latest TOU rates, which are tailored to the patterns of energy consumption and production in California, incentivise solar energy production during later hours and a reduction in energy usage from 3pm-8pm. For more information, see pages 91-92 of CPUC Decision 16-01-044. ### The PG&E Rate Change that Cost Commercial Solar Customers 15% in Savings Commercial customers’ electricity bills are typically comprised of two parts: charges for energy consumption and energy demand. Demand charges are based on a customer’s highest rate of energy usage during any (typically 15-minute) interval in the billing period and often comprise over 50% of commercial and industrial customers’ bills. And, while installing solar is very effective at reducing the consumption component of customers’ bills, unfortunately, in most cases it does not consistently reduce demand charges. But what if commercial customers had the ability to switch to a rate without demand charges? Prior to changes that went into effect in April, commercial customers of California utility Pacific Gas and Electric (PG&E) had an option to do just this. Using Aurora’s solar design and sales software, we conducted a case study to explore what changes to PG&E’s, previously “solar-friendly,” A-6 rate mean for commercial customers’ savings from solar. What 2017 Changes to PG&E’s A-6 Rate Mean for Commercial Solar Savings Until early 2017, when new rate changes went into effect , there were multiple rate plans open to commercial customers with a maximum monthly electricity demand less than 500 kW: A-6 and A-10. While the A-6 rate has a higher price for each kilowatt hour (kWh) of electricity used, unlike A-10 it does not include demand charges. Before April, commercial solar customers could see substantial savings by switching to the A-6 rate to avoid demand charges. This meant that commercial customers who reduced their electricity consumption by installing solar could see substantial savings by switching to the A-6 rate because they would no longer need to pay demand charges. The rate changes, effective April 1, 2017, lowered the maximum level of demand for eligible A-6 customers from 500 kW to 75 kW. This closed off the A-6 rate for a large proportion of commercial customers—and dealt a huge blow to savings from commercial solar projects. To get a clearer sense of the financial impact of this rate change, we conducted a case study1 of a commercial office building in Sunnyvale, California and compared the customer’s savings from solar under each of these two rates. Figure 1: Aerial view of a commercial building in Sunnyvale, California with a proposed 115.50 kW solar installation, designed in Aurora. Scenario 1: The Financial Returns of Solar under PG&E’s A-10 Rate with Demand Charges First, we explored how much solar saves the customer when they remain on their original A-10 rate with demand charges. Figure 2 shows the customer’s monthly utility bills prior to installing solar (red) and after installing solar (green). Table 1 shows monthly energy consumption, production, and utility bills. Figure 2: Monthly utility bills for the customer pre- and post-solar, broken into consumption charges and demand charges, under PG&E’s A-10 rate. Table 1: Energy consumption and production (kWh) and utility bills and savings for the building pre- and post-solar under PG&E’s A-10 rate. Even without eliminating demand charges by switching to the A-6 rate, the customer will still achieve sizeable savings from solar by reducing the amount of energy they must purchase from the utility. In this case, installing solar allows the customer to substantially reduce their energy consumption—from 230,600 kWh per year to 52,400kWh per year, a 77% reduction. However, as a result of demand charges, even for months in which the customer produced more energy than they consumed (March-May, and October-November) and months in which they purchased little or no energy from the utility because of bill credits generated in earlier months from net metering (as was the case in June and December), they still paid the utility between $168 and $210 (comprised of demand charges, as well as some fixed fees). As a result of demand charges, even in months when the customer purchased little or no electricity, they still paid between $168 and $210. Scenario 2: The Financial Returns of Solar under the A-6 Rate Next, we examined what the customer’s savings would be if they were still able switch to the A-6 rate. As you might expect, the savings are significantly higher. Figure 3 shows the customer’s pre-solar utility bills under the original A-10 rate, compared to post-solar monthly utility bills under the A-6 rate, which has no demand charges. Table 2 offers greater detail on the customer’s estimated energy consumption and production and utility bills and bill savings. Figure 3: Pre-solar monthly utility bills for the customer under the original A-10 rate, and post-solar bills under the A-6 rate. Table 2: Energy consumption, production, and utility bills before solar under the original A-10 rate, and post-solar under PG&E’s A-6 rate. On the A-6 rate, this commercial customer would pay only $20 in fixed charges for most months of the year, except January, February, and August. This is because the value of the energy they sent back to the grid in the months when their solar installation produces excess electricity (March-May and October-November) was enough to offset their bill in most months. Quantifying the Financial Impact of PG&E A-6 Rate Changes To put this in perspective, let’s compare the customer’s bills under A-10 and A-6 rates. As you can see in Table 3, installing solar initially saves the customer 61% of their original bill, even on a rate with demand charges. However, the customer would save an additional 15% if they were still eligible to switch to PG&E’s A-6 rate without demand charges, saving a total of 76% compared to their pre-solar bills under their original rate. Table 3: Utility bills under rate A-10 before and after installing solar, and under the A-6 rate after installing solar. Clearly, demand charges have a significant impact on the financial returns from installing solar. And, as you can see, PG&E’s decision to limit eligibility for the A-6 rate , had substantial negative impacts on project returns for commercial solar customers. As the proportion of renewable energy on the grid increases, we can likely expect more utility rate changes like this around the country. This is because demand charges are one of a variety of billing approaches intended to provide price signals to encourage customers to reduce peak demand. Already, a number of utilities are experimenting with changes that apply demand charges to residential customers . While it is hard to predict exactly what changes your local utility will make, if you’re thinking of installing solar, it may make sense to do it as soon as possible so you can take advantage of current rates. Key Takeaways Demand charges can comprise a significant proportion of electricity bills for commercial customers. Solar installations do not consistently reduce demand charges, because the timing of high demand periods may not coincide with when solar panels are producing energy. PG&E’s A-6 rate for commercial customers does not include demand charges. Prior to changes that went into effect in April 2017, which lowered the maximum level of demand for eligible A-6 customers from 500 kW to 75 kW, this rate was an appealing option for commercial customers who installed solar. In our case study, we find that switching from the A-10 rate to the A-6 rate, as customers could do prior to April 2017, results in an additional 15% savings from solar. 1Notes on methodology: We designed a hypothetical solar installation for the building (shown in Figure 1) using Aurora’s software. We used sample Green Button Data for this type of commercial customer provided by PG&E to develop a load profile, and then used Aurora’s energy performance simulation and financial analysis features to assess the impact of solar on the customer’s bills under each scenario. ### Solving Clients' Needs: Advice for Solar Companies from a Nobel Prize-winning Economist Nobel Prize-winning economist Dr. Myron Scholes is a lecturer at the Stanford Graduate School of Business and has been a long-time adviser to Aurora. In 1997, he received the Nobel Prize in Economics for the Black-Scholes formula—a method to determine the value of derivatives. This formula is used daily by finance professionals around the world to calculate option pricing. Following up on last year’s conversation with Dr. Scholes, we were excited to have the opportunity to sit down with him again to hear his insights on how solar companies can position themselves for success in the current market. Do you have insights on how medium-sized businesses, in our case solar companies, can position their businesses to thrive in the new economy? I think in the current economy the use of computer technology will allow companies to reduce costs and to worry less about a product—which is very narrowly focused—and move their thinking to “What is it that the client wants, and how can we solve client problems?” With the data that companies now have from clients, and what clients can tell them, they have an ability to grow their businesses much more quickly. Data’s the key; the availability of data allows you to build models and ways of thinking about what the client wants. If the client wants something, they’ll tell you what they want. That helps in running your business much more than just thinking about a product. That is one of the crucial innovations we’re going to have in the next number of years in small to medium-sized businesses: the ability to use data, and the ability to think about a solution for clients and then design a product—not the other way around. The adoption process for new technologies, like solar, is often thought of in terms of the technology adoption curve —a bell-shaped curve in which a small number of innovators and early adopters begin using the product before it is adopted by a broader majority. Where do you think the solar industry currently fits in that curve? Well, when you have these curves of technology adoption they always apply somewhere to something and someone—they’re not very generalizable. The most important thing is really figuring out ways to garner the trust of your clients. Garnering trust involves education, truth-telling, and really thinking of your customer as someone who’s going to educate you about how you can educate them and build trust. With the technology that is now becoming available in the solar industry to allow for that trust building, we’ll see large growth. Traditionally, trust is generated by asking your neighbor how they enjoyed something, because you trust your neighbor’s experience. But that’s a very slow and tedious process. Learning to use the data to figure out how to educate and build trust with clients builds exponential growth. Some of your research explored irrational behavior of investors and how investment managers can try to account for that. Recognizing that humans don’t always act rationally in making economic decisions, do you have any advice for solar companies on how they might want to communicate with customers or market their products in order to maximize sales? Obviously, there are a lot of psychological effects that influence people and individuals’ behavior. Taking account of these effects can enhance one’s business, but I personally think that taking a more rational approach is better than the psychological approach. That way you have a repeating business. I worry that the psychological approach—trying to look at irrational behavior of customers and use that as your focus—leads to inconsistent decisions and doesn’t really allow for the growth of the business. While I believe you can use psychological factors to influence or help get the message across, I don’t really think of that as a modus operandi or a way to actually run the business. In any part of life where you deal with other individuals, I think you should take the view that truth builds trust. If you lie to your clients it will ruin your reputation. Unfortunately, it might be successful in the short run to try to garner business quickly, to try to take advantage of others, but businesses survive, prosper, and grow through trust-building. Solar companies, or any company, can benefit from trying to think about how they can continue to educate their potential customers or clients and to try to build a sense of community and trust with them. Trust is the key ingredient for business growth—and how you achieve that trust is the recipe. That has to be individualized to the customer experience and at the same time is generated by understanding why your customers trust you. The key is learning from your customers as well as educating them. Some of your other research has looked at the impact of tax policy on markets. In the solar industry, the predominant tax incentive is the Investment Tax Credit (ITC), which allows solar system owners to credit 30% of the system cost against their taxes. The ITC will drop down over time starting in 2020—what can the solar industry do today to start preparing to function with lower tax credit levels? In preparing to operate without the ITC, you should consider that the better your client base is, and the more you have a “network effect” of satisfied customers sharing their experience, the more possibilities there are to grow the business. The tax credit is in some ways trying to reduce the costs of innovation or moving in the direction of eliminating externalities in our society. It provides an incentive to allow the first movers to generate information for others and build trust, so that others will then adopt on their own. In my view, a lot of its purpose is to overcome the uncertainty of the value of what you’re moving towards. This network effect will reduce the need for this information advantage that the government is willing to provide through tax incentives to allow for more education of customers. Over time, the price of solar components will come down, and it will become a bigger industry, and therefore the need for these subsidies will disappear. ### Solar for Canada’s House — A design for Rideau Hall In our Solar Landmark series, we use Aurora’s solar design software to "travel" to famous landmarks and investigate their potential for solar energy generation—all from the comfort of our offices in California. We’ve explored solar designs for the White House and Buckingham Palace, so we thought it was time we set our sights on another executive residence, this time in Canada. While most of our Solar Landmark articles are hypothetical, we’re excited to feature a landmark where a solar project is being actively championed. Nonprofits Emerging Leaders for Solar Energy and Solar Head of State are collaborating to advance a proposal to install solar on Rideau Hall, the official residence of the Governor General of Canada (the Queen’s representative in Canada) in Ottawa, Ontario. Aerial view of Rideau Hall. Source: Google Maps. Emerging Leaders for Solar Energy (ELSE) is a network of young professionals and students working to build a strong solar energy future across Canada. Solar Head of State (SHOS) provides solar installations for executive residences around the world to inspire the adoption of solar and provide leaders firsthand experience with the benefits of renewable energy. ELSE and SHOS are proposing a small 10 kW solar installation that would offset some of the energy consumed on-site. An online monitoring portal and on-site kiosk would demonstrate in real-time the energy being generated. With approximately 200,000 visitors touring the site annually, this project could have a great educational impact. “We believe this symbolic project will demonstrate how solar energy can play a vital part of our energy mix,” says Mitchell Niles, ELSE National Board Member. [Note: This Solar Landmark article is for illustrative purposes only and is not intended to reflect the exact details of the project ELSE and SHOS are proposing to the Canadian government.] Rideau Hall In addition to being the official home and workplace of the Governor General, Rideau Hall is where Canadian Prime Minister Justin Trudeau was sworn in. The Prime Minister and his family also currently live on the property. They moved into a cottage on the grounds of Rideau Hall as the government prepares to renovate 24 Sussex, the official residence of the Prime Minister. This majestic building, which has 175 rooms spanning nearly 100,000 square feet, is the largest official residence in Canada’s Capital Region. As you might expect for a building of this size, the electric bills are nothing to laugh at—a 2009 newspaper article reported that Rideau Hall had an annual electrical bill of $254,872. So beyond demonstrating the government’s support for sustainable sources of energy, a solar installation would be a great way to save taxpayer funds! Analyzing the Roof Structure The first step in designing a solar installation is evaluating the site. Using satellite imagery, Aurora enabled us to create a model of the site and analyze the roof structure. Aurora’s Automatic Edge Detection algorithm, which automatically calculated the direction of each of the roof planes (the azimuths), made this process much easier. An aerial view of the site model of Rideau Hall, as designed in Aurora. The arrows indicate the azimuth of each roof plane. Next, we calculated the available sunlight (irradiance) at each point on the roof surface. Aurora’s shading engine allowed us to assess this remotely, with the same level of accuracy as if we had taken on-site shade measurements. To do this, Aurora takes into account the presence of trees and other obstructions (like chimneys) that would cast shade, as well as data from a local weather station. The image below shows the resulting irradiance map of the roof. Lighter sections indicate greater solar energy availability. An irradiance map of the roof of Rideau Hall. Lighter colors indicate greater solar energy availability. As you can see, Rideau Hall has a complex roof structure as well as a variety of obstructions (chimneys, vents, and skylights) that would interfere with placement of a solar array. Based on this, we propose placing two arrays on sections of the back of the building. This area has no obstructions and high irradiance, and would have less visual impact on this historic site. 3D site model showing the proposed 9.92 kW solar installation. Simulating energy performance Next, using Aurora's performance simulation engine, we explored how much energy the system would produce annually, given local weather patterns throughout the year. Our analysis reveals an estimated annual production of 12,079.36 kWh. Aurora’s Performance Simulation Engine models projected energy output of the system for each month of the year. Aurora’s loss tree diagram shows exactly where energy output is lost compared to the maximum possible output under ideal conditions. Environmental Impacts The system would offset greenhouse gas emissions equivalent to planting 4,639 trees, driving 430,749 miles fewer per year, or taking 38 cars off the road! While the proposed installation is small, its educational reach has the potential to be great. Plus, the Canadian government has established a vision of sourcing 90% of its energy from non-emitting sources by 2030 , so meeting some of Rideau Hall’s energy needs with solar would show commitment to this goal. Add to that the direct environmental benefits the system would provide, and this sounds to us like a great deal for the government and the Canadian people. We’re excited to see how this project develops under the leadership from Emerging Leaders for Solar Energy and Solar Head of State! ### The Hidden Factors that Affect Solar Savings: Part 2, the End of the Billing Cycle There are many variations in the ways that utilities bill solar customers with net metering—as we discussed in our earlier article on the differences between monthly and yearly billing. One factor that can have a big impact on solar savings is the month when your customer's billing cycle ends. Figure 1: Aurora’s financial analysis features allow users to model monthly energy bills based on billing cycles with different end months. When the Billing Cycle Ends Solar customers with net metering accumulate bill credits when their installations produce more energy than they can use. These credits can be used to reduce the customer’s electricity bill in other months when they don’t produce enough energy to offset their energy consumption. It’s common for utilities to only allow customers to rollover their credits for one year (though there are some exceptions, which we’ll discuss in a future installment of this series). The end of the billing cycle is the month that the billing year ends—when excess credits stop rolling over. At this point, customers who have excess credits are typically compensated for them at the wholesale rate of electricity, which is much lower than the retail rate at which they are compensated during the regular billing cycle. Because solar customers will have different amounts of excess credit at different times of the year, the month when the billing cycle ends can have a big impact on savings. Case Study To understand the impact of ending the billing cycle in different months, let’s look at a solar customer’s bills. We used Aurora’s solar design software to accurately model the energy consumption, solar production, and pre- and post-solar utility bills of a house in the San Francisco Bay Area of California. Figure 2 shows a customer’s pre- and post-solar bills if their billing cycle ends in December. Table 1 shows the amounts of the customer’s monthly bills, energy consumption and production, and solar savings. In this example, the customer’s total annual savings from solar are $2,730 (as shown in Table 1). Figure 2: Pre- and post-solar bills if the customer's billing cycle ends in December, modeled in Aurora based on PG&E Rate: E-1, Baseline Region P. Table 1: Pre- and post-solar energy consumption, production, and utility bills if the customer's billing cycle ends in December. By the time the end of the billing cycle arrives in December, this customer has used up almost all of the credits they accrued in the months that their solar system produced more energy than they consumed (April-September). This is ideal, because most of the value of these excess credits is lost at the end of the billing cycle since the customer is not paid for them at a retail rate. But what if the billing cycle ends when the customer has a lot of bill credits remaining? Figure 3 and Table 2 show what the customer’s bills would look like if the billing cycle ended in September, after the customer has accrued a lot of excess production credits over the summer. Figure 3: Customer’s pre- and post-solar bills if their billing cycle ends in September. Table 2: Pre- and post-solar energy consumption, production, and utility bills if the customer's billing cycle ends in September. If the billing cycle ends in September, the customer’s savings from solar will be significantly lower: $2,402, compared to an annual savings of $2,730 if the billing cycle ends in December. The customer saves 12% less per year, a loss of $328 annually. As this example illustrates, it is advantageous if the billing cycle ends after a period when solar energy production is low (e.g., winter months) so that excess credits can be used up. It is ideal for solar customers if the billing cycle ends after a period when solar energy production is low. Different utilities end the billing cycle in different months. For example, for customers of Rocky Mountain Power in Utah the billing cycle ends in March, and for customers of Duke Energy in North Carolina and South Carolina it ends in June. Others, like Long Island Power Authority in New York and the major California utilities, end the billing cycle at the one-year anniversary of when a customer installed solar. Where this is the case, customers considering solar should think carefully about the timing of the installation. It is also important to note that some utilities allow customers to make a one-time change to the month when their billing cycle ends. These utilities include National Grid Generation in New York, Public Service Electric & Gas Company in New Jersey, and Long Island Power Authority. In these cases, customers should carefully assess their monthly consumption and production patterns to determine the end of billing cycle that will be most beneficial. Some utilities end the billing cycle at the one-year anniversary of when a customer installed solar; others allow customers to make a one-time change to the month when their billing cycle ends. The end-of-billing-cycle month that is most financially advantageous for a particular customer will depend on the monthly variations in their energy consumption and the energy production of the solar installation. (Both of these factors can be analyzed in Aurora, using our consumption profile tool and NREL-validated performance simulation engine. Aurora’s financial analysis features allow you to model the impact of different scenarios on a project’s finances, as we have done here.) The end of the billing cycle can have a noticeable impact on the savings a customer obtains from solar. This must be taken into account to accurately estimate the financial return a solar project will provide. The local utility’s policies regarding changes to the billing cycle end date should also be carefully explored. Key Takeaways There is a lot of variation in how net metered solar customers are billed across different utilities. It is important to understand these differences because they affect the financial return from solar. One key variation that can have a significant impact on savings from solar is the month in which the billing cycle ends, which determines when credits from excess energy production stop rolling over. Customers will see greater savings if the billing cycle ends at a time when they have less excess credit built up, because at the end of the billing cycle customers are typically compensated for excess production at a below-retail rate. ### Commercial Load Profiles: What the Solar Salesperson Needs to Know To effectively sell solar to potential customers, you need to accurately communicate the value that a solar installation will provide. An energy load profile is a key step in determining this. A load profile shows how much energy a building uses at each time of the day for each day of the year. It is a critical first step to evaluating the financial return a solar installation will offer. A load profile is also helpful in determining what size installation will best meet a customer’s needs. This is the case whether the customer is a homeowner or the owner of a commercial or industrial building. As a follow-up to our earlier article on residential load profiles, in today’s post we will take a closer look at commercial load profiles. As a solar installer, being able to show your customer the methodology behind your estimate of the value solar will offer them, and why you recommend a particular system size, is integral to building trust and ultimately increasing sales. An example of an estimated load profile of a warehouse in San Jose, California during summer. Why Do Commercial Solar Customers Need to Know their Load Profile? One reason why load profiles, also known as consumption profiles, are so important is that they form the basis for assessing the finances of a potential solar installation. This is because, in the U.S., net metering is the prevailing approach for compensating solar system owners. For customers with net metering, the electric utility adjusts their bill to pay them the retail rate for the excess solar energy they send to the grid. As a result, they pay only for their net energy consumption. Thus, to evaluate how much the customer will save on their bills as a result of adding solar, you must know how much energy they consume and how much solar energy their system will produce (which Aurora’s NREL-validated performance simulation engine can help you determine). If that were the full story of utility billing, it would be enough to know the total amount of energy the customer used each month- but in many cases, utilities also charge different prices for electricity depending on when it is consumed. These Time-of-Use rates charge higher prices for energy at times when there is more demand. As such, you need to know not only how much energy the customer uses, but when they use it—and how that corresponds with the energy their solar installation is producing at different times. Furthermore, a key difference in how commercial customers are billed compared to residential customers is that many commercial customers also have to pay demand charges. These charges, which penalize customers who use a lot of power at any given time, are determined by the maximum amount of power (kW) that a customer used in any (typically 15-minute) interval during the billing cycle. A detailed energy load profile, which shows energy consumption at the appropriate interval, allows one to see the points of high power usage that determine the customer’s demand charges. Finally, a load profile also provides valuable information for determining the size of solar installation needed to meet a customer’s goals. For instance, if a customer wants to get their electricity bill as close to zero as possible, an energy load profile will allow you to assess how much energy their system would need to produce. Ways to Determine Commercial Load Profiles There are multiple ways to determine a customer’s energy load profile, but the two main options are to use actual energy usage data from a period in the past as a representative load profile, or to estimate the load profile based on the building’s characteristics. Using Real Interval Data Where it is available, using interval data of past energy usage is an ideal approach because you can be sure that the load profile exactly represents historical usage. (Of course, this doesn’t account for future changes in behavior or equipment, like installing more energy-efficient devices.) This is also the best approach if you want to account for demand charges because estimating a customer’s load profile won’t provide sufficiently granular detail to predict the customers highest demand over 15-minute intervals. One way to get this information is Green Button Data, a standardized type of interval data that some utilities make available to their customers, which can be uploaded into Aurora to create a load profile. Creating an Estimated Load Profile If interval data for the building is not available, one can estimate the load profile based on electricity bills, characteristics of the building, the energy usage behavior of the occupants, and the geographic location of the building. Using a software program that can tailor a load profile based on these factors is an excellent way to easily develop an accurate estimate for your customer. As you might expect, different types of commercial buildings have different energy consumption patterns. Think of a school, for instance. Its energy consumption will be lower in the evenings and weekends when it is unlikely to be occupied. In contrast, a grocery store’s energy profile will reflect that it is occupied for more hours of the day. Example of a load profile for an elementary school in western North Carolina during winter, estimated with Aurora. Example of a load profile for a grocery store in western North Carolina during winter, estimated with Aurora. The Department of Energy (DOE) has developed profiles of 16 different “commercial reference buildings” that represent approximately 70% of the commercial buildings in the U.S. These commercial building archetypes each have their own patterns of energy usage as a result of typical occupant behavior, as well as the physical building characteristics that impact how they use energy (building size, types of appliances and machinery typically in use, etc.). The DOE’s open source knowledge-sharing platform, Open Energy Information (OpenEI.org) , includes sample interval data on these types of buildings. Aurora has leveraged these profiles in creating its commercial Consumption Profile tool, which provides a convenient and accurate way to estimate a customer’s load profile. The DOE has developed profiles of 16 different commercial reference buildings that represent approximately 70% of the commercial buildings in the U.S. Other factors that impact load profiles include the geographic location and local climate. For instance, as you would expect, buildings in hotter climates are likely to use more energy on air conditioning. Similarly, day length at different times of the year in different latitudes will impact the need for electric lighting. Aurora takes into account data from local weather stations and the sun’s path at the location throughout the year to adapt commercial load profiles accordingly. When developing a commercial project in Aurora, users are prompted to specify the building type that most closely matches the site they are designing. Aurora uses DOE data on energy usage patterns for the building type to develop an energy load profile. Aurora also takes into account weather data from a local weather station to account for how the local climate impacts the load profile of a site. There are also methods to manually develop load profiles by measuring how much energy specific appliances use and the timing of their use; however, this is a complex and time-consuming process best left to experienced professionals. While there are other stages that go into designing an ideal solar installation and evaluating its financial returns, developing an accurate load profile is one crucial step. As a solar installer, increasing sales comes down to adding value to the customer and gaining their trust. If you're able to show a commercial customer their load profile and the methodology used to ensure its accuracy, you’ll have greater credibility and increase the likelihood that the customer chooses your company. With Aurora’s Consumption Profile tool, you can easily develop an estimated load profile or upload Green Button Data for commercial clients, and know that the estimate reflects robust data on load profile trends. ### A Supernatural Solar Roof for the Winchester Mystery House Here at Aurora, we spend a lot of time thinking about roofs in our quest to enable any solar professional to design and sell an optimal solar project in minutes. We featured Michelle Meier, who helps roofers go solar, and we paid close attention to Elon Musk’s vision of roofs made out of solar cells. While there are still gaps in what we know about Tesla’s Solar Roof, one of its benefits could be that it allows solar to fit on some complex roofs that are not well suited to conventional panels. Each solar tile is less than a square foot, which should allow for more flexible design. With that in mind, for this edition of our Solar Landmark series, we set ourselves the task of finding an intricately complex home to model in Aurora. We were fortunate enough to come across one in our own backyard: the Winchester Mystery House. Winchester Mystery House. Source: Google Maps Street View , image capture August 2016. ©2017 Google. Winchester Mystery House: A Haunted Building with a Haunting Roof Anyone who grew up in the South Bay of California remembers their first time at the Winchester Mystery House. I went on a Friday—Friday the 13th, to be precise—and while my very rational 8-year-old mind reminded me that the doorknob rattling was probably an employee, my skin couldn’t help but crawl. Now, decades later, I continue to be spooked by the house; not so much by the ghosts that haunt the halls, but moreso by the complex roof planes that I tried to tackle with Aurora. Still, in the name of our Solar Landmarks series, I persevered (and by that I mean I enlisted Aurora’s customer success star, Victor), and now we can exorcise the ghouls with the power of sunshine. For those who don’t know about the Winchester Mystery House, it really is an enigmatic building. Its curious creation and elongated evolution all started with a rifle: the Winchester rifle. Though the rifle business boomed, the Winchester family was struck with tragedy. Devastated by the untimely deaths of her newborn daughter and her husband, heiress Sarah Winchester turned to a spiritual medium who counseled her that the family was cursed by the spirits of those killed by the Winchester rifle. Believing that the unceasing construction of her house would appease the ghosts, Sarah enlisted craftsmen to build, alter, and demolish 24 hours a day, 365 days a year for 36 years. Now, the Winchester Mystery House serves as a public oddity that haunts to this day. Staircases lead to nowhere. Cabinets the size of apartments share a wall with an inch-deep cupboard. Trap doors open treacherously onto the garden below and doors open to reveal walls. But what if it wasn’t just a spooky attraction, but a showcase of solar innovation? Assessing the Roof’s Solar Potential Fortunately modeling the Winchester Mystery House in Aurora, while complicated, did not take 36 years like the original building. We started out by drawing over the satellite image in our software. We were thankful to have Aurora’s Automatic Edge Detection algorithm, which automatically calculated what direction each of the roof planes faced (the azimuths). There were well over 200 unique azimuths — we couldn’t imagine doing all that by hand! An aerial view of the site model of the Winchester Mystery House, as designed in Aurora. The arrows indicate the azimuth of each roof plane, automatically calculated by Aurora’s Automatic Edge Detection feature. Once we were done with the 2D model, we tailored our model in 3D space. Fortunately, this building has LIDAR data, which allowed us to ensure our model perfectly matched the actual Winchester Mystery House’s roof height and roof slopes. Aurora’s site modeling capabilities allow you to view satellite map imagery alongside your 3D model, making it easier to ensure accuracy. The final step in the process was to assess the energy potential of the roof. It is important to note that at the time of publication, there is a dramatic difference in the cost of Tesla’s energy-producing Solar Roof tiles ($42 per square foot), versus its non-energy producing tiles ($11 per square foot). Therefore, we wanted to make sure we are only placing the energy producing tiles in the most important locations. The final result was a gorgeous and informative heat map (below) that outlined the building’s solar potential. Irradiance map showing the solar potential of each part of the Winchester Mystery House’s roof. Aurora’s system design portal also provided us with useful information on the available roof surface area. We found that the roof has a surface area of 33,234 square feet. However, we know not all of this area is a good fit for the energy producing roof tiles. For example, the Solar Roof tiles can only be installed on a surface that has at least a 3:12 or steeper slope. This ruled out the entire roof on the north side of the site (shown below) which, despite being relatively shade-free, was completely flat. Aurora’s irradiance map feature provides solar access and irradiance values for each point on the roof. To determine which areas we wanted to place energy producing tiles on, we set the following criteria: The roof had to have a pitch of 25 degrees or more The roof area has to have at least 500 contiguous feet The average Solar Access percentage for the roof surface had to be greater than or equal to 80% After we filtered by this criteria we found only 6,994 square feet of the Winchester Mystery House’s intricate roof were solar eligible, or approximately 21% of the surface area. Calculating Solar Roof Returns To calculate the financial benefits of the Solar Roof we used Tesla’s online calculator. There are three key inputs into the calculator: The building’s current average monthly utility bill The total roof area The percentage of the roof area that will be covered by energy-producing tiles We used an estimate of 15,000 kWh per month (approximately 15 times more than the average energy consumption of a 2,000 square foot American home). We entered this value into Aurora’s Consumption Profile Tool which gave us an estimated monthly bill of $5,825 (see below). With the input of energy consumption or bill amount for a given month (or as many as you have data for), Aurora’s Consumption Profile tool can generate estimated monthly utility bill and energy consumption data for the full year. (The tool can also utilize Green Button Data.) As discussed above, we have a total roof area of 33,234 square feet, of which about 21% of the surface area is a good fit for solar. The Tesla Solar Roof requires a Powerwall battery which was included in our analysis. The final result was an extra $186,600 dollars earned by the Winchester Mystery House over the next 30 years. Apparently, that’s more than enough money to hire a team of over 300 fully qualified ghost hunters to help resolve the secrets of the Winchester Mystery House! Tesla’s Solar Roof calculator, reflecting the values of our analysis for the Winchester Mystery House. Whether you believe in ghosts, or are more frightened by the thought of the monstrous electricity bills the Winchester Mystery House must have, we hope this landmark solar design makes this spooky landmark a bit brighter. If it’s the idea of modeling a roof like this that sends a shiver down your back, sign up today for a demo of Aurora’s solar design and sales software to see how our remote solar design capabilities can save you time, money, and stress. Have ideas for future solar landmarks? We’d love to hear from you. Tweet @aurorasolar with the hashtag #SolarLandmark to submit your suggestions! Acknowledgments: This article is the result of contributions from several members of the Aurora Team. Special thanks are owed to Customer Success Analyst Victor Ionin for modeling the Winchester Mystery House in Aurora’s software, and COO Samuel Adeyemo for analysis of the solar potential of the site and financial analysis of the proposed project. ### Getting to 100% Renewable Energy: An Interview with David Hochschild of the California Energy Commission Commissioner David Hochschild serves on the California Energy Commission (CEC) , the state’s primary energy policy and planning agency. The CEC’s responsibilities include promoting renewable energy development; advancing energy innovation through investments in energy research, development, and demonstration programs; advancing energy efficiency; and promoting affordable, reliable, and environmentally sound transportation energy infrastructure. The California Energy Commission is one of California’s three governing institutions for energy, along with the California Public Utilities Commission and the California Independent System Operator. Appointed by Governor Jerry Brown in February 2013, Commissioner Hochschild fills the environmental position on the five-member Commission, where four of the five members by law are required to have professional training in specific areas. Hochschild’s career has spanned public service, environmental advocacy, and the private sector. Prior to being appointed to the Commission, Hochschild served as a Special Assistant to San Francisco Mayor Willie Brown in 2001, where he launched a citywide $100 million initiative to put solar panels on public buildings. He went on to co-found Vote Solar, an advocacy organization working at the state level across the country to make solar affordable and accessible to more Americans. He served as executive director of a national consortium of leading solar manufacturers and worked for five years at Solaria, a solar company in Silicon Valley. From 2007-2008, he served as a commissioner at the San Francisco Public Utilities Commission. For his work to advance clean energy, Commissioner Hochschild was awarded the Sierra Club’s Trailblazer Award and the Department of Energy’s Million Solar Roof True Champion Award. Recently, Aurora Solar’s Chief of Staff, Sunny Wang, and Content Marketing Analyst, Gwen Brown, had the privilege of speaking with Commissioner Hochschild—fresh off his recent TEDx talk —to get his take on the current state of solar and clean energy policy, here in California and beyond, and on trends and future developments in the industry. Do you think that California is feeling an added pressure to double-down on its climate and clean energy efforts? Oh, absolutely. I think the will has never been stronger than it is right now. California has the sixth largest economy in the world and is home to 40 million people—we're larger in many metrics than most countries in the world. I think particularly given recent events, leadership on renewables has shifted to the states. Fortunately, most of the policies that really matter—in terms of accelerating renewable energy—are actually still made at the state level. By that I'm referring to renewable portfolio standards, net metering, interconnection standards, rate design, state tax credits, etc. that really dictate the markets for clean energy around the country. I think the will is very strong to continue what we've started, and I have actually seen an increase in activity and interest here in California. Speaking of renewable portfolio standards (RPS), California’s RPS sets the ambitious goal of obtaining 50% of the state’s electricity from renewable sources by 2030. For those who haven't been closely following California's progress, can you provide a quick update on where we are? Are there major hurdles for California to overcome in order to achieve this target sustainably? Today, 27% of the state’s electricity is from renewable sources; that's up from 12% renewables in 2008. And, we're on a path not just to hit 50%, but to exceed it. There are hurdles to overcome, however. One of these issues is renewable energy integration. That involves a number of different levers, including energy storage, regionalization, and load control options. Regionalization—having a broader balancing area to be able to draw on and send renewable energy to—gives you more flexibility. Load control enables us to better align electricity demand with times of high renewable energy production. This includes demand response measures, as well as electric vehicles that are designed to charge intelligently and at times of the day that support the needs of the grid. You could think of the process of achieving high levels of renewables as having two phases. The first chapter of this work was really bringing down the cost of renewable technologies. That work has largely been successful, particularly with solar and wind. The prices of solar and wind have both fallen about 80% in the last decade, so we’ve seen really substantial cost reductions which are very good for the future of the market. The second chapter is integrating renewables successfully onto the grid. Another related challenge that goes hand-in-hand with renewable integration is electrification. We want to see a migration of services that are now fueled by natural gas, diesel, and gasoline to being powered by this new, clean electric grid. That's everything from vehicles—we have 275,000 electric vehicles on the road today (a trend I am happily now participating in as of about a month ago)—to all-electric homes, electrified rail, etc. Continuing on the topic of California renewable energy policy, part of the California Solar Initiative that the Energy Commission is advancing is the New Solar Homes Partnership program . Can you share some updates on the program and its successes? The way to understand this program is that it’s really the glidepath for California to reach zero net energy in [building] code. The goal originally was 2020 as our date to mandate zero net energy in code and you don't want that to be an abrupt change. You want homebuilders already building a significant number of homes with solar before that becomes a mandate. This incentive program was created to help get that going. One of the main challenges with new construction is that the homebuilder is not the occupant of the home. The builders’ main goal is typically to contain costs so adding extra features is often not what they are seeking to do. This program helped kickstart that market, and in Southern California about a quarter of the new homes being built today are being built with solar. Our energy markets to date have been built around fossil fuels–which differ significantly from renewables. From a market perspective, what will need to change about how we buy and sell electricity in order for our energy markets to function with higher levels of renewables on the grid? Well, I think the first realization is that along with renewables comes distributed generation and a distributed model. Where California used to have just a couple hundred power plants providing all the electricity, today we have roughly 600,000 when you count all the rooftop solar. As a result, intelligent infrastructure that's designed to allow for a friction-free market for distributed generation is essential. That includes having the ability to meter distributed generation. It also includes having smart inverters that have telemetry and voltage regulation capabilities. So, for example, we can send signals to rooftop solar systems to tell them to adjust voltage to help support the grid. I think that's one of the main changes that is needed. I also think you're going to increasingly see a movement among utilities towards more of a "pipes-and-wires" model, where their focus shifts from generation to managing the interactivity of all these other generators and consumers. We need the utilities to succeed—I want to be clear about that. I think it's really in everybody's interest to have the utilities succeed, but what they are doing is going to change. I also think that, increasingly, the role of utilities is going to shift towards transportation. I believe the electrification of the vehicle fleet is one of the single most exciting potential developments in the next few years. It offers great promise—not just to reduce greenhouse gas emissions from our transportation sector, which is California’s greatest source of emissions right now—but also to help facilitate higher penetration of renewables. Do you believe it’s possible to supply 100% of our electricity from renewable sources? I absolutely believe it is possible. I think it's actually inevitable. The real question is whether we get there fast enough to make a meaningful difference on climate change. Here's the big picture. Over the long haul, basic laws of economics hold that as reserves of finite resources like fossil fuels—whether they are reserves of coal, or petroleum, or natural gas—become constrained, the prices go up. Technology, on the other hand, as it scales, prices go down—whether we're talking about cell phones, flat screen TVs, electric vehicles, or solar panels. The foundational technologies of the clean energy future are all going down very steeply in price: solar PV, wind, energy storage, LED lights... that is reason for great optimism about our ability to achieve this future. There will be a lot of adjustments to be made. We're going to have to be much more nimble about things like load control, for instance. The traditional model has been that electric load (electric demand) drives electric generation... your factory turns on, and you have to turn on a fossil-fuel burning power plant. Now, for some subset of that load, it's actually going to switch; renewable generation is going to drive electric demand. For instance, if you have a fleet of electric vehicles and you have some flexibility in the time of the day you charge them, or you have a building that needs to be cooled but you can do some pre-cooling, you have windows of time for electric demand that can be aligned with renewable generation. That will become a much more refined science. There are plenty of other technology hurdles to cross as well—but there is nothing about the transition to 100% renewable energy itself that is outside the realm of a solvable problem. It's all solvable; it's just new types of problems, and our ability to solve these problems has gotten infinitely better. I look at our capabilities and where we are in our technology development at the moment, and even if innovation were to basically halt and we were just working with current pricing and current technology, we could get to 100%. The good news is it's actually getting better. Every year, we're getting larger and more efficient wind turbines, more efficient solar panels, and cheaper batteries with longer duration. The technologies are all getting incrementally better every year so I have no doubt we will get there. And, now there are cities, like San Diego, and whole states, like Hawaii, that have mandated 100% renewable energy. San Diego is the first major city in the United States to mandate 100% renewables by 2035, and Hawaii has mandated it by 2045. That's already underway. The solar industry requires cooperation between different actors, such as businesses, utilities, and policymakers. In your career, you've worked in the solar energy space from many different perspectives—including public, private, and non-profit. What are your thoughts on the state of cooperation among key solar players? Well, I think there is room for greater coordination in the industry. Early on, the solar industry was fractured in terms of industry associations; there were multiple overlapping associations. That has gotten somewhat better but it is not entirely resolved. The parallel is made, for example, to the NRA. There's not a National Pistol Association and a National Shotgun Association, right? And the NRA is pretty effective. I think there is more maturing necessary, and I would like to see more "pan-renewables" advocacy and collaboration where everyone unifies around the vision of 100% renewable energy and the electrification of almost everything. I think there's a role for all technologies that serve that purpose, whether it be geothermal, solar, wind, or biomass energy, energy storage, or electric vehicles. Where do you think we can expect to see new or significantly refined policies encouraging solar adoption in the next few years—either within or outside the United States? One area is Mexico, which the California Energy Commission has been working with quite a bit on promoting clean energy policy and sharing best practices. The CEC has signed Memorandums of Understanding (MOUs) with the Mexican states of Aguascalientes and Jalisco to cooperate around clean energy, and collaborates with Mexico’s Ministry of Energy under a 2014 MOU signed by California Governor Brown and Mexican Secretary of Energy Pedro Jaoquín Coldwell. We've seen some very exciting developments in renewable energy pricing, and as a result, we're now seeing Mexico think seriously about renewables. For example, they're now looking closely at energy storage—what its role should be in the future of Mexico and what policies they should adopt. These are things that weren’t under serious consideration about two or three years ago because renewables were seen as too expensive. Commissioner Hochschild signs a Memorandum of Understanding with the state of Aguascalientes Mexico on behalf of the California Energy Commission. Photo credit: California Energy Commission. What developments under these MOUs are you particularly excited about? One of the most exciting things is how greater participation in clean energy markets is leading to financial innovation. Banks and other financial institutions have to think about how to finance renewables and that has a cascading effect, even to educational institutions. Until recently in Mexico, you could not get a master’s degree in renewable energy, now a university in Guadalajara, Jalisco just launched the country’s first renewable energy master’s degree program. All of these changes are happening right now before our eyes. It's changing so quickly it’s hard to track. For example, the states of Jalisco and Aguascalientes, which the California Energy Commission has signed MOUs with, have both recently adopted fleets of electric vehicles. Those are the some of the first states in Mexico, if not the first, to formally adopt fleets of electric vehicles and that is thanks to some of the collaborative efforts between the Commission and Mexico. What is the most innovative solar design you have ever come across? That’s a good question… there have been many of them. I've been involved in solar for my whole career, and some of the most innovative things I’ve seen were things that didn't ultimately work in the market. But, the truth is, the things that I'm most excited about are not what I'd call revolutionary innovation, but rather what I'd call evolutionary innovation. It's things that are not particularly sexy or noteworthy, but which are the incremental improvements driving the whole market. Every year the efficiency of solar panels and inverters has been going up. The early solar panels had 5% efficiency, right? Now they're roughly 20%. The early inverters had about 60% efficiency—so you would lose over a third of the power just converting it from DC to AC. Now, utility-scale inverters are at 99% efficiency. It wasn’t an overnight change; literally every year they became 1 or 2 % more efficient, with little tweaks and improvements. That evolutionary progress is what I find most exciting. That’s what's been working and I'm optimistic that will continue. ### The Hidden Factors that Affect Solar Savings: Part 1, Monthly vs. Annual Billing There are many variations in the ways that different utilities bill solar customers with net metering. These subtleties can make it complicated to determine exactly how installing solar will affect a customer’s bills. In this series, we will explore elements of billing that commonly vary between utilities and examine the practical impacts of these factors on solar customers’ bills. Today, we look at how monthly billing compares to annual billing in terms of solar customers’ experiences and savings. As a solar installer, understanding utility bill nuances will enable you to better communicate what customers can expect after installing solar and help you find them extra savings Monthly or Annual Billing? One of the major ways billing for solar customers varies between utilities is how often customers are billed for their energy consumption. Under net metering policies, solar customers are credited for the energy they produce and charged for any energy supplied by the utility—effectively paying only for their net energy consumption (and any additional fees applied by the utility). If their solar system produced more energy than they consumed, they receive a credit for their excess generation which will carry over to future months. Most U.S. utilities reconcile solar customers’ energy consumption and production on a monthly basis. However, some utilities, particularly in California, have an annual billing cycle in which net metered customers are billed for their energy usage only once a year. Figure 1: Aurora allows users to conduct financial analysis based on monthly or annual billing approaches. Settings for a customer with annual billing are shown. Under an annual billing approach, the utility tracks customers’ energy consumption and production throughout the course of the year. Customers receive monthly statements tracking this data but do not have to pay monthly for energy consumption. However, they may have to pay some monthly fees to remain connected to the grid, as is the case for customers of major California utilities. At the end of the year, they receive their annual bill, often called the “True-up” statement, for any energy consumption that was not offset by their solar energy production. One benefit of annual billing is that credit from excess energy production can offset consumption from earlier months in the year. With monthly billing, on the other hand, excess credit produced can only be applied to later months. For example, credit accumulated in summer months would not reduce bills paid in early spring. Let’s take a look at what a solar customer’s bills look like under these two approaches. Figure 2 below shows pre- and post-solar utility bills for a customer with annual billing. Figure 3 shows that customer’s monthly energy consumption and production, and Table 1 shows how Aurora presents energy consumption, production, and bill amounts for customers with annual billing. With annual billing, credits from months in which energy production exceeded consumption (April through October) can be applied to any other months in which they consumed more than they produced (January, February, November, and December) because the utility considers the customer’s energy production or consumption over the entire year. As you can see in Figure 2, this means that solar will cancel out all of the customer’s bills except for $10 in fixed fees (which we’ll discuss in greater detail in a future blog article). Figure 2: Customer’s pre- and post-solar bills under an annual billing approach (PG&E Rate: E-1, Baseline Region P). Figure 3: Customer’s energy consumption and production. Table 1: Customer’s pre- and post-solar energy consumption, production, and utility bills under an annual billing approach (PG&E Rate: E-1, Baseline Region P). For customers with annual billing, Aurora shows the annual savings rather than monthly bill savings, since the customer does not pay on a monthly basis. Now, let’s consider what bills would look like for the same customer if their utility has monthly billing. For the purposes of this exercise, we kept the same exact utility rate, but we switched the billing schedule from annual to monthly. Figure 4: Aurora financial analysis settings for a customer with monthly billing. Figure 5 below shows the customer’s bills under a monthly billing approach, and Table 2 shows the amounts of the customer’s monthly bills, energy consumption, and production. Although the customer’s energy consumption and production (shown in Figure 3) remains the same, the amount they pay the utility increases in the early months of the year. Figure 5: Customer’s pre- and post-solar bills under a monthly billing approach. Table 2: Customer’s pre- and post-solar energy consumption, production, and utility bills under a monthly billing approach. For customers with monthly billing, Aurora shows the savings each month as well as the total annual savings. As Figure 5 and Table 2 illustrate, under monthly billing the customer will have higher bills in January and February because they receive those bills before they accrue credit for excess energy production. With monthly billing, the customer’s total annual savings from solar will be $2,899 compared to an annual savings of $2,951 if they had annual billing. In this case, annual billing saves the customer an additional $52 per year with the exact same solar installation. Most utilities do not allow customers to choose between monthly or annual billing as they offer only one option. In these cases, knowing what option the local utility offers allows one to accurately assess how much a customer can save with solar. Sacramento Municipal Utility District is one of the few utilities that does allow customers to choose between these options. For solar customers who do have a choice, annual billing is likely to be the most financially advantageous. Whether utilities bill monthly or annually is just one of the common differences in billing for solar customers. There are many other variations, including what time of year the billing cycle ends, how much net metered customers are compensated for their excess energy, and how long credits can carry over (some utilities allow credits to roll forward indefinitely). Fortunately, Aurora allows you to easily navigate these different options. We will analyze additional billing nuances in future segments of this series. Key Takeaways There is a lot of variation in how net metered solar customers are billed across different utilities. It is important to understand these differences because they affect the financial return from solar. Utilities may bill customers on a monthly or annual basis. With annual billing, solar customers pay once a year for their net energy consumption instead of every month. One advantage of annual billing is that credit from excess energy production can be used to cancel out consumption from any month in the year, whereas under monthly billing credits can only roll forward. ### How Solar Can Benefit Utility Customers on Tiered Rates The price of movie tickets and the cost of electricity might have more in common than you think. In an earlier article, we explored how the price you pay for electricity may vary depending on the time of day—just like the cost of matinee movie tickets compared to tickets for a Friday night show. In today’s article, we will explore another curiosity of electricity pricing: how different rates apply to different customers. Just as movie theaters have different prices for adults, students, and seniors, utility companies also vary energy prices for different classes of customers. We see this in the differences between residential and commercial utility rates, and in rates that vary based on a customer’s level of demand. But there’s more! Utilities also charge different prices for energy depending on how much energy a customer consumes. This practice, known as tiered pricing, has important implications for solar customers—both in terms of design considerations for solar installations and for understanding expected savings. We will examine how this rate structure works so you can make sense of how it impacts the finances of going solar. What Are Tiered Rates? Tiered rates are a common utility rate structure that can apply to either residential or commercial customers. At their most basic, tiered rates are defined by having multiple tiers with different prices per unit of energy; the tier that a customer is billed under is determined by the amount of energy they have consumed during the billing period. For the purposes of this article, we’ll be examining a type of tiered rate called an inverted block rate. Inverted block rates, which serve to discourage excessive energy consumption, are prevalent today. Under this rate structure, the price of energy increases the more energy a customer consumes. (Historically, another form of tiered rates, called declining block rates, was most common. This pricing approach actually sought to encourage energy consumption by reducing the amount a customer paid for energy the more that they consumed.) Figure 1: An example of tiered electricity rates in which the price of energy increases at higher levels of energy consumption (an inverted block rate approach). To get a better sense of how this rate structure works, let's consider a hypothetical utility: Tier Usage Cost ($ per kWh) Tier 1 up to 650 kWh 0.0543 Tier 2 next 350 kWh 0.0989 Tier 3 over 1000 kWh 0.1423 Table 1. A hypothetical tiered rate schedule (an inverted block rate). The first 650 kilowatt hours (kWh) that a customer consumes is priced at the “Tier 1” rate, which is the cheapest at $ 0.0543 per kilowatt hour (kWh). If a customer’s consumption exceeds 650 kWh, subsequent energy consumed would be priced at the higher “Tier 2” rate of $ 0.0989/kWh. From there, if they exceeded 1000 kWh of consumption, they would be charged the “Tier 3” rate of $ 0.1423. Not all utilities have tiered rates, and among those that do, the number of rate tiers, as well as the level of consumption and the cost of electricity under each tier, varies by utility. Some utilities also have different rate tiers depending on the season. (California’s tiered pricing is a bit different than most other places because the level of consumption covered under Tier 1 varies for different customers. Depending on where they live, their heating source, and the season, customers are assigned a Baseline Allowance, and the tiers are defined as percentages of that baseline.) How Do Tiered Rates Impact the Finances of Adopting Solar? One of the most important impacts of installing solar for utility customers who have tiered billing is that the solar energy produced by the system can offset consumption at the more expensive top tiers. This is because under net metering policies—the prevailing method in the U.S. for compensating solar system owners for the energy they produce—each kWh that the solar system produces is credited against the customer’s utility bill at the retail rate. By offsetting the customer’s consumption enough that the remaining energy the customer purchases from the utility is billed at a lower tier (or tiers), the bill savings from solar can be proportionally greater than the amount of energy consumption that is offset. Because of this, some solar customers choose smaller solar installations that offset only their energy consumption at higher tiers, which saves money on system costs. To see the impact of tiered rates in action, let's consider the case of a residential customer on the utility rate discussed above (Table 1), whose average monthly energy consumption is 1,220 kWh. Table 2 shows the customer’s bill for energy consumption and how it is calculated. At this level of energy consumption, their final 220 kWh is billed at Tier 3 rates and they have a monthly bill of about $101. (Note that this a simplified example which considers only the consumption charges on customers’ bills; utility bills typically include additional charges like fixed fees and transmission and distribution charges.) Tier Cost ($ per kWh) Usage (kWh) Cost ($ per kWh) Tier 1 0.0543 650 $35.30 Tier 2 0.0989 350 $34.62 Tier 3 0.1423 220 $31.31 Total: 1,220 $101.22 Table 2. An example of how a customer's bill would be calculated under the hypothetical tiered rate from Table 1. Now, let’s consider what this customer’s bills would look like if they installed a solar system that produces an average of 900kWh/month. (Solar installations’ energy production varies significantly in different months. For the sake of simplicity, in this example we are just considering the customer’s average monthly energy consumption and production.) The 900 kWh from the solar array offset the majority of the customer’s consumption, leaving only 320 kWh that need to be purchased from the utility. Tier Cost ($ per kWh) Usage (kWh) Cost ($ per kWh) Tier 1 0.0543 320 $17.38 Tier 2 0.0989 0 $0.00 Tier 3 0.1423 0 $0.00 Total: 320 $17.38 Table 3: Post-Solar Bill for the Same Customer with a Solar Installation that Produces an Average of 900 kWh per Month. After installing solar, the customer has offset all of their consumption under Tiers 2 and 3. Purchasing the remaining 320 kWh on Tier 1 costs the customer only about $17 per month. As Figure 2 below illustrates, reducing their energy consumption by ~74% results in a savings of ~83%. Figure 2: Customer’s average monthly energy consumption and utility bill before and after installing solar, broken down by utility price tier. As you can see, the greater the price difference between tiers under a given rate plan, the more exaggerated this effect will be. Another implication of tiered rates is that customers with higher levels of consumption get more financial benefit more from solar installations than light users who are billed at lower tiers. In order to assess the financial benefits of installing solar, and determine what size solar installation will maximize financial return, it is critical to have a clear understanding of the customer’s utility rate structure and whether they are on a tiered rate plan. It is also important to evaluate what other rates may be available to a customer. Many utilities offer customers the option to be billed under time of use (TOU) rates, which charge different prices for energy depending on the time of day. These rates may offer a better financial return for solar customers if the times that the solar installation produces a lot of energy coincide with times when energy is more expensive. Having familiarity with the rate structures that are available to a potential solar customer will provide the foundation of an accurate assessment of the financial value solar can provide. Key Takeaways: Tiered rates are a common approach that electric utilities use to bill customers. They are defined by having multiple tiers with different prices per unit of energy. The rate (tier) that a customer is billed under is determined by the amount of energy a customer uses during the billing period. Inverted block rates are a form of tiered rates that is prevalent rate today; under inverted block rates, the price of energy increases the more energy a customer consumes. A solar installation can enable a customer to offset their consumption at the more expensive top tiers, leading to bill savings that are proportionally greater than the amount that energy consumption (kWh) is reduced. It is critical to have a clear understanding of the customer’s utility rate structure and whether they are on a tiered rate plan in order to assess the value solar can offer. ### Making Sense of Demand Charges: What Are They and How Do They Work? Two commercial buildings, a factory and an aerospace research facility, both consumed 40,000 kilowatt hours (kWh) of energy in January 2017. However, their energy consumption patterns were very different. The factory maintained a uniform energy consumption of 1,333 kWh per day, and for no given period did their power draw exceed 56 kilowatts (kWs). Conversely, all of the aerospace research facility’s power consumption came in brief spurts: once a week it turned on its wind tunnels for 15 minutes. During each 15-minute interval that the wind tunnel was on, it consumed 10,000 kW. Which of these two buildings will have the higher utility bill? Can solar help both institutions save money? (Scroll to the bottom for answers.) To answer these questions, one must understand how commercial entities are billed for their electricity usage. Most commercial customers have utility bills that are divided into two major categories: Energy consumption: the amount of energy (kWh) consumed, multiplied by the relevant price of energy ($/kWh) during the billing period. Demand: the maximum amount of power (kW) drawn for any given time interval (typically 15 minutes) during the billing period, multiplied by the relevant demand charge ($/kW). As a solar professional, if you want to accurately communicate the value that a solar installation will provide to a commercial customer, it is critical to understand demand charges and how they affect your client’s utility bill. A sample utility bill depicting demand charges (highlighted in yellow). How Do Demand Charges Work? Demand (measured in kW) is a measure of how much power a customer uses at a given time. Utilities apply demand charges based on the maximum amount of power that a customer used in any interval (typically 15 minutes) during the billing cycle. Demand charges usually apply to commercial and industrial customers, who tend to have higher peak loads (i.e. peak power demand) than residential customers. Most utility rates specify the maximum power demand a customer is allowed to have: exceeding the maximum power demand for consecutive months can result in being moved to a different rate with higher demand charges. Utilities apply demand charges based on the maximum amount of power that a customer used in any interval (typically 15 minutes) during the billing cycle. To determine the demand charge for a given month, the maximum power demand is multiplied by the demand charge rate of the prevailing utility rate. While the exact billing approach varies by utility, some rate structures include multiple types of demand charges, with higher charges during hours of peak demand, and lower charges during “partial-peak” or “off-peak” hours (Time of Use Rates). For customers whose utility rates include them, demand charges can contribute significantly to monthly electric bills. Let us consider an example of how demand charges are calculated. The basic formula to calculate demand is: X kW of demand * Y $/kW = $ Monthly Demand Charge If the utility rate sets demand charges at $9.91 per kW, and the customer has a peak demand of 500kW for the month (reflecting the 15-minute interval in which they consumed power at their highest rate), the demand charge would be calculated as: 500 kW * $9.91 = $4,955 More complicated rate structures may include different demand rates during different times (for instance peak and off-peak hours). For example, a utility might define on-peak hours as 6 a.m. to 10 a.m. and 6 p.m. to 10 p.m. from November through March, and from noon to 9 p.m. from April through October. The peak rate for demand is $7.13 per kW and the off-peak demand rate is $4.94 per kW. In January, the customer’s maximum demand during peak hours was 500kW. Their maximum demand during off-peak hours was 150kW. Their demand charges would be calculated as: On-peak Demand: 500kW * $7.13 = $3,565 Off-peak Demand: 150kW * $4.94 = $741 Total Demand Charges for January = $4,306 An example of a (different) commercial customer’s monthly energy consumption (orange) and bills (blue) based on sample Green Button Data imported into Aurora; the portion of the bill comprised of demand charges is shown in light blue. How Does Solar Affect Demand Charges? The impact of solar is relatively straightforward when it comes to consumption charges: by producing electricity from a solar installation, a commercial customer can reduce the amount of energy they must buy from the utility and thereby reduce utility bills. Unfortunately, when it comes to demand charges, solar does not provide consistent cost savings. Because solar energy production varies based on weather conditions and time of day, periods of high solar power will not always coincide with the times when a building has its highest power demand. This means that solar customers cannot count on their solar systems to reduce demand charges. A chance rainstorm at a time when the facility happens to use energy at its highest rate during the month would result in a demand charge as high as it would have been before installing solar. Despite this, it is important to understand this element of the customer’s bill in order to understand what portion of the customer’s costs solar can offset. We’ll explore the financial impact of demand charges for commercial solar customers in greater depth in a future blog post. Why Do Utilities Apply Demand Charges? Demand charges exist to incentivize customers to spread their energy usage over time. This is because utilities must maintain enough generation and distribution capacity to meet the needs of all customers during the points in time when the most energy is drawn from the grid (such as a hot day when most customers are using air conditioning). This means that a large amount of expensive equipment, such as power plants, must be kept on standby for these rare peak demand periods. Through demand charges, customers that draw a lot of power over short periods of time contribute more to the costs of building and maintaining the necessary infrastructure needed for peak times. Demand charges were first introduced in the early 1900s by Samuel Insull, a colleague of Thomas Edison and an influential figure in the expansion of electricity access in the US. They have remained a common approach for commercial electricity billing since then. Discussing a proposal to apply demand charges to residential customers in Illinois in 2015, in comments to Midwest Energy News , Fidel Marquez, a senior vice president with ComEd, summarized the utility rationale for demand charges as a way to “correct inequities that can result in low-usage customers subsidizing high-usage customers.” He also noted that “the costs of delivering electricity are driven by the demand that customers place on the system whenever they need it, and ComEd builds and maintains its delivery system — poles, wires and transformers — to handle everyone’s maximum demand for power.” However, there are diverse perspectives on the efficacy of demand charges as a means to reduce peak demand on the grid and some pro-solar groups argue that demand charges are harmful to the value proposition for solar. Irrespective of the reasons for demand charges and how effective they are, they are not going away so it is important to have a strong grasp of how they work. Understanding demand charges allows solar installers and customers to accurately assess what portion of a monthly bill can be offset with solar and provides a starting point for exploring additional options for reducing peak demand. Key Takeaways Demand charges are fees applied to the electric bills of commercial and industrial customers based on the highest amount of power drawn during any (typically 15-minute) interval during the billing period. Demand charges can comprise a significant proportion of commercial customers’ bills. In the example from the introduction, we can expect that the aerospace research facility will have a higher monthly bill than the factory, although both have the same monthly energy consumption. The aerospace research facility will have significantly higher demand charges because its peak demand is much higher. Solar can save both institutions money by reducing their energy consumption, but it will not reduce as much of the aerospace research facility’s bill because solar cannot consistently reduce demand charges. ### Four Steps to Optimize PV System Performance in Shaded Conditions Assessing the impact of shading on system performance is an essential step in solar design. Especially in the residential market, solar designers often deal with shading issues like trees, chimneys, and other obstructions. The question designers often face then is: given these conditions, how do I maximize system performance? This is not an easy question to answer because shading can affect performance in a nonlinear way. However, an optimal solution can be found by following four steps. 1. Quantify. What’s the best way to quantify the impact of shading? Solar Access measurements are useful as a guide but have limitations because they do not account for system configuration. Thankfully, modern, module-level simulation engines can accurately model the impact of shading on performance. (Simulation engines that model system performance at a submodule level offer even more accurate estimates of energy production when modules are partially shaded.) Aurora’s performance simulation feature quantifies energy losses from shade and other sources. 2. Explore. Systems come in countless combinations of size, location, and configuration. Designers have several options to mitigate shading losses: When using string inverters, string the modules in a manner that minimizes shading losses. In some cases, simply changing the stringing configuration of a system can result in energy boosts of over 10%. Use module-level power electronics (microinverters or DC optimizers). In addition to mitigating the impact of shading by performing maximum power point tracking (MPPT) on a module-by-module basis, they eliminate module mismatch losses (which occur when one shaded module causes the current through an entire string of modules to drop). Use modules with integrated cell string-level power electronics. These replace the bypass diodes inside modules with DC optimizers that perform MPPT at the cell string-level. Increase the DC-to-AC ratio to reduce balance of system costs (the costs of all components of a PV system other than the PV panels, such as wiring, racking, and inverters). Shading results in lower DC power, thus more panels can fit on an inverter without causing significant clipping. Explore the use of higher efficiency modules or modules with a higher open-circuit voltage (or Voc — the maximum voltage available from a solar module). A higher power density allows you to make better use of low-shade areas, whereas shorter strings are impacted less by shading. Vary the location and size of the system. Energy produced at different times of the day can have different values to the client. 3. Assess. Cost-benefit analysis ultimately leads to the “optimal” system design. But value is not always easy to determine. With Time of Use and tiered rates, the compensation for each kWh produced by the system can vary greatly. It can sometimes be better to place a system where there is more shade overall, but the system remains unshaded during high-value times. A detailed financial model that can handle these nuances is essential. An example of a Time of Use rate, with higher energy prices at times of higher energy demand. 4. Automate. A detailed site assessment takes time. Without the ability to quickly assess a variety of design variants, how many iterations can you afford to do? And how do you know if your design is really the optimal solution? Putting a streamlined process in place is crucial. We believe software can empower solar designers to make these critical design decisions in an efficient manner. That is why we built Aurora to streamline the design process from remote shade measurements and module-level performance simulations, pricing and detailed financial analysis, all the way to proposal generation — and Aurora’s AutoDesigner even generates an optimal system design for you at the click of a button. ### Diving Into Irradiance Modeling, with Solar Industry Pioneer Richard Perez [Editor's note: This interview was conducted in 2017.] The work of Dr. Richard Perez has been integral to the success of the solar industry. He developed the mathematical model used to predict how much irradiance (solar energy) will be on solar panels at different times throughout the year based on weather patterns. Perez’s model has been incorporated into many software modeling programs, including Aurora’s. It enables solar designers to more easily and accurately predict how much light will be available to different solar installations, and therefore how much energy they will be able to produce and what financial returns they will offer. Dr. Perez is a Senior Research Associate at the Atmospheric Sciences Research Center, State University of New York at Albany, where he directs applied research and teaches in the fields of solar radiation, solar energy applications, and daylighting. We had the privilege of talking with Dr. Perez to learn more about his research and its applications in the solar industry, as well as his thoughts on future industry trends and the changing role of weather modeling research. Tell us about yourself, and your involvement in the solar industry. I've been in the solar industry for over thirty years now. I started in the early 80s, and I am a research professor at the University of New York at Albany. I develop solar resource (solar radiation) models. Since day one, I have been also interested in solar energy applications. In fact, my students and I installed one of the very first systems in New York City on the rooftop of the Lincoln Center—before it was a business to do that. We also powered a radio station at a local university. These were the early projects. Back then, doing solar resource research and the actual installations were one and the same. Installation slowly became a business, so I moved away from that, and I continued the solar resource research. But I always keep an eye on the nuts and bolts of solar design. All of the research work I do is geared toward putting more solar on the grid one way or another. That's my driving motivation. We could reach 100% [renewable energy] easily in my opinion. As the proportion of renewables increases, you will really want to manage that flow of power, accounting for weather changes the best way you can… that's where [weather] models are going to become really important to drive those systems. How would you explain your irradiance models to someone who is not familiar with them? The first model I developed, which I was lucky to gain recognition and subsequent funding from, was designed to calculate the irradiance on a tilted plane in an arbitrary orientation, from basic Typical Meteorological Year (TMY) data. [Typical Meteorological Year data is the most common way to describe the average local climate from the perspective of solar applications. It is developed based on hourly meteorological measurements over many years to build a picture of the typical weather conditions.] I was lucky to develop that model at the right time and the right place. There was an International Energy Agency study comparing all the different models on the planet to do that kind of thing and my modeI was ranked first. Since then, that model has been embedded in all kinds of software. Later, in the early 90s, I became interested in using satellite remote sensing to get solar data, because satellites are up there 24/7 and see the whole planet. You can actually get data anywhere you want on the planet if you have a good model to do that. So I started satellite model development and I worked with a company in California, called Clean Power Research. Our model materialized into something called Solar Anywhere, that many people use today to get data. This model has since been built upon to support forecasting, which is a big focus these days. We are developing a lot of forecasts, trying to predict, for instance, how much energy will be produced from solar tomorrow at 3 p.m. in a certain location—to help the integration of PV on the grid by making it easier for utilities to better manage that power. I think the long-term trend is that to better manage [solar energy] on the power grid, it's going to be curtailed somehow… it's going to cost less to overbuild PV than to, say, put in things like storage. How is your model applied to energy production simulation? It gives you a more accurate reading of how much a solar system is going to produce given its orientation and tilt; shading can then be factored in on top of that. It lends itself well to complex simulations in any orientation. Some of the [earlier] models worked pretty well for panels facing due south, but they became less accurate when applied to panels facing east or west or north. The model I developed is robust enough to work in any circumstances. I predict that eventually models and related software will evolve to the point where you will simulate data in real time from all the systems you have installed, using satellite data and forecast models linked to that data. [Note: Dr. Perez’s model is built into Aurora’s irradiance engine. This mathematical analysis is applied to TMY data from local weather stations to develop an irradiance map of the site, such as the one shown in Figure 1 below, which provides solar energy values (kWh/m2/year) at each point across the rooftop.] Figure 1: An example of an irradiance map produced with Aurora’s irradiance engine. How does accurate weather modeling affect the solar industry at large? You want to be able to predict exactly how much energy your system is going to produce so you can make a good economic assessment of your system. That was especially true a long time ago when PV cost a fortune so you really wanted to optimize designs. Today, PV is getting cheaper and cheaper. I think the long-term trend is that to better manage it on the power grid, it's going to be curtailed somehow, because it's going to cost less to overbuild PV than to, say, put in things like storage. So there will be an optimum management. In that case, the model will not be as critical to making the economics work. However, it’s going to be really important to manage the flow of solar power on grids. Renewable energy penetration is increasing.... We could reach 100% easily in my opinion. As the proportion of renewables increases, you will really want to manage that flow of power, accounting for weather changes the best way you can, and that's where all of the models are going to become really important to drive those systems. Your model has been the industry standard for decades. How do you predict that irradiance modeling will evolve over the next ten years? Over the next ten years, I think it will evolve to focus on energy flow management, so forecast models will be the models most in need to do solar energy calculations. I predict that eventually models and related software will evolve to the point where you will simulate data in real time from all the systems you have installed, using satellite data and forecast models linked to that data. That information could be transmitted to the people that operate the power grid so that they can make sure all those systems are working perfectly. That will enable us to put tons of renewable sources on the grid without breaking the system. Does climate change affect the Typical Meteorological Year in a way that would impact solar energy production? Well, there is a lot of research going on on that. Based on everything I've seen so far for solar, it’s a very mild effect. A couple percent here and there. On a yearly basis, it's not going to change all that much from all the simulations I've seen. Unless you live in the Northern-most latitudes, like above 60 degrees latitude — then you will probably have more clouds up there. With Arctic melting, there will be more water leading to more clouds. But in the US, and similar latitudes, solar resource availability is going to be pretty much the same. I've seen simulations that go 100 years in the future taking into account climate models and I've not seen anything that shows me that solar will decrease significantly. What current research in weather or solar energy production modeling do you find particularly exciting? Because solar energy production is variable based on the weather and time of day, it’s not a consistent power delivery mechanism for now. However, there are ways to optimize that with the right amounts of batteries, oversizing, demand-side response load control, and geographic dispersion. You can optimize all of that, and you could deliver close to 100% penetration PV at a very reasonable price. Achieving that optimum and driving it is really what excites me right now. ~~~~ Enjoyed this post? Subscribe to our blog to be updated about new articles. Background photo credit: Warren Gretz / NREL ### Financing Tips for Solar Installers: Insights from David Arfin David Arfin is the inventor of SolarCity’s groundbreaking SolarLease, which has enabled over 300,000 residential, commercial, and government customers to adopt solar power and save money, without having to make a large upfront payment. Aurora had the privilege of talking with David Arfin to learn from his years of experience in the industry, and we are excited to share his insights in a two-part series. In Part 1, he shared his expectations for the development of the solar finance industry. In today’s post, Arfin offers some advice for small and medium-sized solar companies on financing best practices. What steps do you think small and medium-sized installers can take to gain more financing options? Small to medium-sized installers need to have more than one supplier so that they are not completely dependent on one loan product, one third-party owned product, or one PACE product. In that way, the "long-tail" as we think of it, can — individually and collectively — can hold the bigger companies more accountable. For instance, consider if you are a local installer and you're selling to your provider—you only have one—at, say, $3/watt. If they come to you and say, “We have a problem and have to lower your rate. The most that we can pay you is $2.60/watt,” then you have just lost your margin, and you don't have an easy second choice. In the medium- and long-run, we should be able to grow as an industry into something that looks a lot more like the real estate industry. Solar customers should be able to get financing from a lot of different sources. Just as in the mortgage industry buyers are not dependent on the real estate broker that sold you your house to get your mortgage. Financing should be much more transparent and much easier. What are your three biggest pieces of advice for solar installers trying to expand their financing options? 1) Have your customers' interests at heart. BTC—“Be the Customer”—as they used to say in business school. Really understand what's in it for the customer and don't just accept what the financial provider is providing to you. There may be some inaccurate assumptions out there. 2) Diversify. Have more than one financing partner for each product line that you want to offer. 3) Be very careful of cash flows and try to lean on financing partners to help with cash flow requirements as much as possible. What advantages, or disadvantages, do you think large firms have when accessing financing options? I had the benefit of joining SolarCity early and watching the growth over the first amazing four years. When we were small, nobody paid attention to us. We couldn’t buy panels in 2008 from some vendors because they had a certain amount of panels and they only sold to their bigger or longer-term accounts. As we grew, however, and became the dominant player and eventually the leader in market share by a wide margin, we had a lot of advantages. We were able to get meetings and capital easier than smaller firms could. There are high transaction costs in any of these tax equity deals or securitizations, which makes these kinds of deals harder for smaller firms to access. Larger firms have always had an advantage in terms of getting capital—and they always will have an advantage—until the point comes where there is too much concentrated risk on one firm. If Wall Street thinks that a large solar installer is overexposed, then that becomes a problem. A big risk for large companies is this: when you have a solid footprint in a place and regulations change, the whole thing can go down. We saw this in Nevada last year, where overnight the industry got crushed [when the Nevada Public Utilities Commission eliminated one-for-one net metering for residential solar customers, moving solar from compensation at the retail rate to the wholesale rate]. Companies had invested in warehouses, trucks, and, most importantly, employees and then that market dried up. These companies tried to move these “assets” to their other installation centers, but there is a huge cost to doing so. In a low margin industry, taking on a huge cost hit is hard. We saw some of that in Arizona as well [when Arizona replaced net metering compensation for solar customers with compensation at a lower “export rate”]. So, when your company is big and has a big footprint in a lot of different jurisdictions, and one or two of those jurisdictions goes bad, it might affect five to ten percent of your business. In a low-margin industry, that five to ten percent can spell really hard times. What are some good resources for solar professionals to educate themselves on solar finance? I recommend going to conferences with sessions on clean energy finance. You need to understand a bit about the Investment Tax Credit, depreciation, and SRECs- but you can pick that up pretty quickly if you're motivated. We hope you found these insights helpful! Do you have your own solar finance tips? Let us know in the comments below. ~~~ Want to be in the loop on our latest articles? Click here to subscribe to our blog! ### The Value of Green Button Data for Solar Customers Green Button data — if you’re not familiar with it, it might sound like something that a Marvel comic book villain would enjoy reviewing. But, in fact, Green Button data is actually a very valuable tool for understanding a home or business owner’s energy usage. In this post, we’ll explore what Green Button data is and what benefits it provides for solar designers and customers. Green Button data gives utility customers — both residential and commercial — timely access to energy use data in a standardized, computer-friendly format. What is Green Button Data? Green Button data refers to an option provided by some utilities that enables customers to download detailed data on their electricity usage with just the click of a (green) button from the utility website. Specifically, Green Button data gives utility customers — both residential and commercial — timely access to energy use data in a standardized, computer-friendly format. The Green Button Initiative emerged as a voluntary, industry-led response to a 2011 call-to-action from the White House to make energy data more accessible to consumers. Beyond showing how much energy a consumer uses, one of the greatest benefits of Green Button data is that it also provides insight into when energy is being used. Historically utility bills have only shown how much energy was used over a monthly period. However with the increased deployment of “smart meters,” which track energy usage at intervals of one hour or less, much more granular energy use data is becoming available. If a customer has a smart meter, Green Button data will allow a customer to see exactly how much energy they use at specific intervals. The measurement interval available to customers depends on what their utility offers, but many utilities — especially in California and Texas, where utilities are required to provide customers with their energy usage data — provide this information in 15-minute increments. Currently, more than half of American households have smart meters and they are increasingly being deployed by utilities around the country as part of utility efforts to modernize the electric grid. Smart meters and Green Button data go hand in hand as methods to give customers’ greater insight into and control over their energy use. The Green Button program is helping to make the improved data from smart meters more easily accessible. Beyond showing how much energy a consumer uses, one of the greatest benefits of Green Button data is that it also provides insight into when energy is being used. Why Is Green Button Data Important? Green Button data offers numerous benefits to energy consumers and for solar professionals looking to design and sell high quality solar installations. Green Button data helps consumers better understand when they are consuming energy, and save on their utility bills. For instance, for residential customers in areas where Time of Use (TOU) rates are standard (like California), Green Button interval data can show how changing the timing of certain energy-intensive activities can result in reduced energy bills. Green Button data is particularly useful for customers who are considering solar, because it makes evaluating projects and savings faster and more accurate. Green Button data offers additional value for commercial customers. Beyond the insights it provides with regard to Time of Use rates (which are more common for commercial customers), Green Button data can also help commercial customers better understand demand charges, which are fees a utility charges based on the maximum amount of power a commercial customer consumes over a given time period. An example of a customer's hourly energy usage based on Green Button Data uploaded in Aurora. Green Button Data and Solar: A Perfect Combination Green Button data is particularly useful for customers who are considering solar, because it makes evaluating projects and savings faster and more accurate. Having a clear picture of a household’s energy consumption is critical to determining the appropriate size of a solar array. Furthermore, precise data on energy consumption at different times throughout the day is important in enabling accurate evaluation of the financial returns of the solar design. For instance, if the customer is billed under Time of Use rates, in order to understand how much a solar installation will reduce their utility bill, it is essential to understand how much energy they consume during peak demand times when energy is more expensive, and how those usage patterns intersect with the amount of energy their solar array is likely to be producing at different times. A customer’s savings will be greater if the energy produced by their solar installation coincides with and can offset much of their electricity consumption during hours when electricity is most expensive (typically in the afternoon). Furthermore, this consideration might influence the ideal location or orientation of a solar design (such as siting the design where it will get more afternoon light, and thus offset energy when electricity prices are higher, rather than where it would produce the most energy overall). For commercial customers, whose utility bills include demand charges, the benefits of using Green Button data in the solar design process are a little more nuanced, so we will cover them in a later post. With a customer’s Green Button data, you can save time by automatically importing the exact details of the customer’s energy consumption and Aurora will use that to model the customer’s electricity usage throughout the day and throughout the year (their load profile). Combined with Aurora’s simulations of the solar design’s energy production (the industry’s most accurate), you and your solar customer can be confident in the expected financial return on the installation. Key Takeaways: The Green Button Initiative is a program through which participating utilities provide customers with detailed data on their energy usage, in a standardized, machine-readable format. Green Button data gives utility customers greater insight into the amount and timing of their energy consumption, helping them to understand how they can save energy and reduce their utility bills. Green Button data is particularly useful in helping potential solar customers accurately evaluate the financial return on a solar installation. Aurora’s software can automatically import and interpret Green Button data enabling faster and more accurate development of detailed solar sales proposals. Are you using Green Button data? How has it impacted your solar business? Join the conversation on Twitter , Facebook , and LinkedIn with the hashtag #GreenButtonData. ~~~ Want to be in the loop on our latest articles? Click here to subscribe to our blog! ### The Future of Solar Finance: Insights from SolarLease Inventor, David Arfin David Arfin is the inventor of SolarCity’s groundbreaking SolarLease, which revolutionized the U.S. residential solar market. This unprecedented solar financing program has enabled over 300,000 residential, commercial, and government customers to adopt solar power and save money, without having to make a large upfront payment. In November 2009, the SolarLease was named by Scientific American as the first of twenty world-changing ideas to build a cleaner, healthier, and smarter world. Arfin also received the first ever Innovation in PV Financing Award from the Solar Energy Industry Association in 2009. Today, Arfin continues to create innovative financial solutions and structures to accelerate the adoption of clean energy technologies. He is the co-founder of Certain Solar , a cleantech startup harnessing the power of big data and behavioral economics to make solar energy more affordable. He is also the founder and CEO of First Energy Finance , which provides products and services to accelerate the growth of renewable energy-generating projects.  We had the pleasure of sitting down with David Arfin to learn from his years of experience in the industry. In today’s post we’re excited to share his take on where solar financing is today—and where we may see innovations in the future. In the second article in this series, we continue our exploration of solar finance by sharing Arfin’s advice for solar companies on financing best practices. David Arfin How has solar finance evolved since you created the first lease at SolarCity? Solar financing has evolved in a few small ways, but today’s product does not look all that different from what we had in 2008. I think that’s a shame. There are still evolutions of the product that we need to see. “...there is still asymmetric information between the solar provider and the solar adopter. Very few people know much about how electricity rates work, where their rates have been, or where they likely to go...” Third-party financing grew at an exceptional rate for several years. It proved that there is a large appetite for homeowners to adopt solar if you make it easy and affordable for them, and if they believe that they will save money by going solar. Other products have come into the markets, like solar loans and Property Assessed Clean Energy (PACE) loans, but they are still not priced very well and pass off a lot of risk to homeowners. I don’t think we’ve hit the “Holy Grail” yet for solar. Why do you think we haven’t yet hit the “Holy Grail?” Good question. I think it’s partly that current product pitches still sell reasonably well. Leases, PPAs, and loans are still moving the quarterly needle for sales teams’ objectives so the installers and developers don’t have a great incentive to reinvent their offerings. The other reason is that there is still asymmetric information between the solar provider and the solar adopter. Very few people know much about how electricity rates work, where their rates have been, or where they likely to go over a period of decades. That makes homeowners subject to believing whatever representations a zealous solar salesperson chooses to present to them in the sales process. I think we need adopters to become much better educated about what they are signing up for—much in the same way that other industries evolved. If you look at car loans, home loans, and credit cards—they have all gone through cycles whereby poorly informed buyers get oversold on the offering, followed by a backlash, which in turn is followed by investigations and data gathering initiatives. This may lead to consumer advocacy, followed by truth-in-selling regulations that end with improved consumer-facing offerings. Sometimes these can crush companies and even industries. As an advocate for proliferation of solar and other forms of Distributed Energy Resources (DER), I’d like to see the industry short circuit the process by self-regulating its selling practices and coming up with better consumer offerings. Where do you think we are in that arc that you see in other industries? We are still really early and I hope we are still on the upward trajectory of adoption of all DER. We are no longer in the phase of the earliest adopters, as there are a million American homeowners that have already adopted solar. A lot of these adopters can look at precisely how much energy their PV system has produced, but it’s very hard to do the math to know whether they are actually saving money by having gone solar. “To use a baseball analogy, we’re in the top of the third inning for innovative solar financing. A million U.S. homes that have adopted solar, but there are 60 million or more residential dwellings that are ripe for switching to clean energy.” As an industry, we have to be very careful of overzealous selling. For example, Aurora’s software enables one to accurately know how much solar radiation there is going to be on every panel, on every spot... and you’re only going to be off by a couple percentage points. But when it comes to the other side of the equation, which is not how much systems generate but the economic value of the energy generated—which is dependent on local policy makers’ decisions 15–20 years into the future—it’s not possible know what that’s going to be for any net-metered system. What evolutions in solar finance would you like to see? I would like to see shorter-term obligations. I think 20 years is a terribly long time for someone to sign up for an obligation like a solar installation. I would like to see solar installers and developers–and I will disclose that I have an interest in this—guarantee savings to homeowners who sign PPAs, loans, leases or make cash purchases. It’s a very different sale if you said to the customer, “Sign this contract and we hope that over 20 years you’re going to be saving money.” It would be much better to say, “We guarantee you’re going to be saving money.” One company that I’m involved in called Certain Solar, which has a grant from the U.S. Department of Energy’s SunShot program, is looking to do just that. By using unique data and analytics, it allows financiers to be comfortable with the risk of having long-term cash flows from a portfolio linked to future utility rates. Today homeowners take on risk when they sign a 20-year agreement to lease or purchase and they cannot have a very good visibility of future electricity prices. However, this risk could be shifted to investors with the benefit of good data and analytics. What we want to do is transfer utility rate risk from homeowners to investors who have the data to understand how prices are going to move and can also invest in a large national portfolio—whereas every homeowner makes one decision at one point in time for their roof within their utility. In addition to shifting the utility rate risk, energy storage is going to become an important part of the story. We are going to see more time-of-use rates apply to when one is generating and consuming electricity. I think there are still a lot of interesting services and contracts that will be built as a result of these changes. “I think you will see PV generation, storage, smart meters, demand response, and EV financing starting to blend together in creative ways. It’s an exciting time to be in cleantech...” To use a baseball analogy, we’re in the top of the third inning for innovative solar financing. A million U.S. homes that have adopted solar, but there are 60 million or more residential dwellings that are ripe for switching to clean energy. Where do you see the future of solar financing over the next 5 years? There will be a lot more and better data. Hopefully there will be better consumer education and better consumer protections. I think you will see PV generation, storage, smart meters, demand response, and EV financing starting to blend together in creative ways. It’s an exciting time to be in cleantech—especially on the business model side to create and deliver innovative “energy as a service” offerings. On the challenging side, energy is delivered within a regulatory environment and mere humans are making a series of policy decisions; politicians and regulators are motivated by different political agendas. A key enabler for solar and DER adoption will be having a positive and stable regulatory environment. Without this regulatory stability investment in clean assets will suffer and so will our transition to a cleaner energy world. Any other final thoughts about solar financing? I’m a born optimist. We've seen game-changing successes in the United States as we evolved from “solar as a sale” to “solar as a service” and I think that will turn into “distributed energy as a service,” “storage as a service,” “EV-by-the-mile,” etc. As costs to manufacture and deliver systems decline, while data, software and analytics improve, we will create an ecosystem that will make it easier for energy consumers, investors and financiers to be able to invest in solar and other DER. All of that then generates more data and innovation, which further de-risks adoption. It’s a virtuous circle. Want to be in the loop on our latest articles? Click here to subscribe to our blog! ### How Much Is Solar Energy Worth? Understanding Solar Compensation Under Net Energy Metering and Feed-in Tariffs There are many benefits of installing a solar system–but a major one for many people is that generating your own solar energy can save you money on your utility bills. In order to understand the cost savings that your solar project will provide over time, it is critical to understand the policies that determine how much your solar energy is worth. There are a variety of different approaches that governments and utilities use to compensate the owners of renewable energy systems for the energy they produce, but two of the most widely used mechanisms are net energy metering (NEM) and feed-in tariffs (FITs). In today's article we provide an overview of each.  Feed-in tariffs are a compensation scheme which offers guaranteed cash payments to producers of renewable energy, based on an established rate per kWh. The rate of compensation established under FITs is often higher than the retail rate, and the payments are typically guaranteed through a long-term contract. For example, in the UK, a solar installation with a capacity between 10kW and 50kW installed before March 31, 2017 will be compensated at a rate of 3.89 pence per kWh for a period of twenty years. Under net energy metering , solar system owners are credited at the retail rate for the excess solar energy that they feed onto the grid, while being charged normally for the electricity they draw from the grid. For these customers, it is as if their electricity meters run backwards when their solar system is producing more energy than they need, so they pay only for the net electricity they consume over the course of the year. In contrast, with a feed-in tariff, compensation for the energy produced is independent of your energy consumption. Feed-In Tariffs (FITs) FITs are a popular policy tool designed to encourage the investment in renewable energy technologies (including, but not limited to, solar) by guaranteeing that the owner will be compensated at a set rate – often above the retail rate – for the energy produced. Globally, feed-in tariffs (FITs) are the most widely used renewable energy policy for driving accelerating renewable energy deployment. FITs rose to prominence in the late 1990s as a mechanism for encouraging the rapid deployment of renewable energy sources, and have been used to great success in many international markets, including in the European Union, and later China and Japan. (The use of FITs in the U.S., however, has been limited to a small number of states.) By guaranteeing that developers of new renewable technologies will have a market for the resulting energy and can count on being compensated at a rate that reflects the generation costs, feed-in tariffs have helped renewable sources like solar achieve economies of scale. Payments are guaranteed through long-term contracts ranging from 10-25 years. Currently, only seven U.S. states have solar feed-in tariff programs. Information source: Database of State Incentives for Renewable Energy. FITs compensate project owners for the energy produced based on a set rate established by policy makers, which is typically higher than the prevailing retail rate (a major difference between net metering and feed-in tariffs). Different renewable energy sources may be compensated at different rates, depending on how expensive they are to deploy–with technologies like solar and wind typically being compensated at a lower rate than less developed technologies like tidal power. This approach reflects the fact that feed-in tariffs are designed to help emerging industries achieve economies of scale. Feed-in tariffs are usually designed so that rates scale down over time to encourage technological cost reductions. Net Energy Metering (NEM) As UtilityDive explains, “U.S. policymakers... never got comfortable with the economics behind the FIT model, preferring to set initial solar supports at or near the retail rate of electricity.” Enter net energy metering (NEM), a policy in which utilities compensate producers of renewable energy at the retail rate for any excess production that flows back to the grid, allowing them to offset the cost of energy they draw from the grid at times when their system is not producing enough to cover their needs. In the U.S., net energy metering is the dominant approach for compensating producers of solar energy. As of July 2016, 41 states have mandatory net metering policies, and an additional two states have voluntary net metering programs through utilities. Cory Honeyman, Senior Solar Analyst at GTM Research, reports that “The overwhelming majority of DG solar that has come online to date [in the U.S.] has come from projects taking advantage of net metering, not Feed-In Tariffs.” Forty-one U.S. states (as well as the District of Columbia) have mandatory net metering policies for certain utilities. Two additional states have utilities that offer net metering programs, though they are not mandated by state policy. Source: Database of State Incentives for Renewable Energy. Compared to FITs, NEM requires less active management from policy makers because the rate of compensation follows the retail rate for energy. Honeyman notes “The good thing about net metering is that it does not require re-adjustments… [With feed-in tariffs] it is difficult to set the step downs in the level of the tariff in a measured way that doesn’t either crater the market or drive demand too fast.” Also unlike FITs, NEM programs typically use bill credits, rather than cash, to compensate system owners. Another way of thinking about how net metering works in practice for system owners is that it enables them to use the energy their system produces as needed, rather than when it is being produced. Since the energy produced by your solar system varies based on time of day and weather conditions–and the times when you use the most energy often will not coincide with when your system is producing the most – net metering is a convenient way to even things out. A forecasted daily load profile for a house in central California, broken down by the source of energy demand, as created by Aurora’s solar design software. In some states, like California, the retail rate for energy varies throughout the day, with higher rates at times when there is higher demand, typically in the afternoon and evening (an approach known as time of use, or TOU, rates). These policies can work hand-in-hand with net metering and affect the value of the solar energy you produce. For instance, owners of solar installations that sell excess energy back to the grid during the day, when demand from businesses is high, may be compensated at a higher rate. While participation in time of use rate programs remains low around the US, most states offer voluntary time of use rates. Whether you live somewhere where TOU rates are mandatory or are considering opting into a voluntary program (which could save solar system owners money), it is important to understand how much energy you’ll be producing and consuming at different times throughout the day to accurately estimate the finances of your solar installation. Aurora’s solar design software automatically predicts how your production and consumption will vary throughout the day, and the compensation strategy used in your area, when estimating the value of the energy your system will produce over time. Feed-In Tariffs or Net Energy Metering? Looking to the Future NEM and FITs have both played important roles in the development of the solar industry globally. Looking to the future, policies for compensating producers of clean, renewable energies like solar are likely to adapt. In the U.S., there has been debate over net metering policies, with some stakeholders arguing that compensating solar energy producers at the retail rate does not ensure that they pay for the costs of maintaining the electrical grid. Around the country, states are beginning to explore a variety of new ways of compensating solar producers to reflect these concerns, such as California’s NEM 2.0 policy. No matter what compensation approach prevails, having a solid grounding in NEM and FITs will provide you with a strong base for understanding policy changes to come. ~~~  Want to be in the loop on our latest articles? Click here to subscribe to our blog! ### How Project Modeling Can Energize the Community Solar Market Community solar programs have the potential to greatly expand the market for solar energy and make the benefits of solar more accessible. However, growth of this sector is currently inhibited by uncertainty in project delivery costs. We sat down with Dr. Joseph Goodman of the Rocky Mountain Institute to understand this challenge—and how detailed design modeling capabilities can help overcome this barrier. What is Community Solar? By now you've likely heard about community solar – also known as shared solar or solar garden—one of the solar industry’s fastest-growing sectors in 2016. Community solar provides a way for customers to share in the energy produced by a solar installation in their community. The solar installation, which may be community-owned or third-party owned, provides electricity to community members who choose to participate. An important appeal of community solar programs is that, if designed correctly, they save participants money compared to what they would otherwise pay their local utility. Community solar allows homeowners that do not have ideal building conditions to enjoy all the benefits of solar ownership, such as lowered utility bills and the knowledge that they are contributing to a cleaner environment. Factors like having a shaded roof, being a renter, or living in an apartment building, may limit one’s ability to switch to solar. In fact, the National Renewable Energy Laboratory (NREL) has found that these issues affect 49% of households and 48% of businesses! Accordingly, community solar has a critical role to play in the development of the solar industry and in ensuring that the clean energy economy is inclusive and equitable. How Does Community Solar Work? The Solar Energy Industries Association (SEIA) identifies four different models for community solar. A utility may provide its customers with the option to purchase a set amount of solar energy from a shared facility- typically at a fixed rate for a long term, such as 20 years (a utility-sponsored model). An on-bill crediting model allows residents and businesses to invest in a portion of a shared solar installation and receive a proportional credit on their utility bill. Individuals can create a business entity to develop a shared solar project, a Special Purpose Entity (SPE) model. Finally, in a non-profit (or “buy-a-brick”) model, donors may contribute to support the development of a shared solar installation that will be owned by a non-profit. The availability of community solar projects depends on state-level policies; the option is not yet available everywhere but 26 states currently have community solar projects. Four different business models for shared solar. Photo Credit: U.S. Department of Energy. Cost Certainty: The Secret Ingredient for Community Solar Success? The Rocky Mountain Institute was founded in 1982 to transform global energy use to create a clean, prosperous, and secure low-carbon future. RMI engages businesses, communities, institutions, and entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift from fossil fuels to efficiency and renewables. They are pioneers of community solar, developing innovative community-scale solar pilot projects to make solar energy affordable and accessible for all. Their analysis looking at community-scale solar (both shared solar systems and other mid-size arrays), estimates that the community solar market could reach 30 GW by 2020! Dr. Joseph Goodman, Principal with Rocky Mountain Institute’s electricity practice. Dr. Joseph Goodman is a Principal with Rocky Mountain Institute’s electricity practice. He leads RMI’s work to accelerate the deployment of community solar, with a focus on providing practical support to communities transitioning to shared solar. We sat down with him to understand what it will take for community solar to reach its full market potential, based on his work with community stakeholders. We asked Dr. Goodman about some factors that affect the expansion of community solar. He highlighted uncertainty when evaluating the cost of a potential project as a major issue. Even among otherwise comparable community solar projects from the same company, there is often significant variation in what it costs to develop a community-scale solar project. This ambiguity in actual delivery costs means that companies must price projects on the higher end of the spectrum to avoid losses. “[Community solar projects] basically live or die based on... incremental costs in the way the system is developed, designed, sourced, and deployed.” Why is this so significant for community solar in particular? While uncertainty in project cost exists across solar project types, the impact on project viability is particularly significant for community solar. Slight variations in project cost can make the difference between whether or not a project will save members money compared to utility rates, and thus whether communities see it as a good option. As a result, the expansion of community solar on a large scale hinges upon increased certainty and transparency in project costs. As Dr. Goodman explained, “[community solar projects] basically live or die based on those incremental costs in the way the system is developed, designed, sourced, and deployed.” Additionally, he noted that when people don’t have the right information to make a decision, the common reaction is to do nothing—so until there is greater transparency in these costs, community adoption is likely to be slow. There is a great potential to reduce this uncertainty, however, and RMI is working to provide solutions. “Based on the analyses that we’ve been able to conduct, there is tremendous opportunity to reduce the cost of installation and improve total cost of [community solar] ownership. There’s also room to decrease your construction project cycle, and to eliminate much of the variance of projects…” Delivering Cost Certainty with Prototyping One solution that Dr. Goodman and the Rocky Mountain Institute have been working on is the use of standardized project design prototypes to eliminate this uncertainty. The development of prototype designs—for which the total cost of ownership has been analyzed and established with certainty—allows communities considering shared solar projects to make informed decisions. “There are other variables at play in finance, but I think the two dominant ones are: ‘Will this asset produce what you said it will produce?’ And ‘Will you be able to sell the energy it produces at the rate that we’re banking on?’” But how do you arrive at a trusted cost evaluation for a particular solar project prototype? One option would be to actually build out a particular design, documenting the costs in detail. Of course, that’s a significant investment! But, as Dr. Goodman explained, “Before you’ve got that luxury, you’ve got to [do this] through more efficient means- and Aurora’s enabled that.” With a solar software design platform that can make accurate projections of project costs and performance, researchers can develop hypotheses on how to effectively reduce project costs and test them without physically developing the projects. These experimental capabilities have the potential to be a major game changer for the community solar sector. Dr. Goodman and his team use Aurora’s design capabilities to run experiments evaluating how different community-scale design scenarios perform based on total cost of ownership. “We’ve found huge savings, savings that are so significant that the total cost of ownership goes from being higher than buying from—either wholesale or retail, depending on the customer—to below.” Aurora’s application enables the development of detailed designs for solar installations, including industry-leading energy performance simulations. Being able to evaluate multiple design solutions that meet diverse project needs provides great value to the industry. “I want to really underscore the magnitude of it…. with a software tool that allows us to search the design space, we can have a step change in the value proposition. It goes from ‘out of the money’ to ‘in the money.’” Dr. Goodman also discussed how this change in the value proposition will expand access to financing for community solar. “There are other variables at play in finance, but I think the two dominant ones are: ‘Will this asset produce what you said it will produce?’ And ‘Will you be able to sell the energy it produces at the rate that we’re banking on?’ And that’s a much more believable story when you’re providing real savings- rather than marketing against inflated utility costs...” An example of a ground mount typical of a community solar project. Photo credit: John Thornton / NREL. A Bright Future for Community Solar Despite the current challenge that cost uncertainty creates, Dr. Goodman is optimistic about the growth of community solar across the U.S. "We... foresee getting to play a significant role in the creation of this industry at RMI—through working with industry, and with [community stakeholders] who are really willing to represent the best interests of their communities.” His outlook is echoed by NREL estimates that community solar could comprise up to 49% of the U.S. distributed PV market by 2020 with supportive policies. Goodman stressed that we are at an exciting time for the growth of community solar: not only do we have the right technologies and business models, but there is growing political will within communities at all scales, from local to international, to reduce carbon emissions through the expansion of renewables. ~~~ Want to be in the loop on our latest articles? Click here to subscribe to our blog! Background Photo Credit: U.S. Department of Energy. ### Solar Sales Part 2: Branding Best Practices - with Katherine Glass Here at Aurora, we’re constantly thinking about how we can help you be more successful in selling solar installations. We retained Katherine Glass, founder of SpringMark and an expert in helping companies create their marketing and branding strategy, to offer some insights for solar companies. Katherine spent seven years at Lippincott where she worked on branding strategy for companies like Delta, Petco, and Starbucks. Four years ago, she launched her own firm, SpringMark, which works with young companies on creating, developing, and launching a cohesive and powerful brand. We are excited to share what we learned with you in the form of a three-part series. This is the second of two articles from our interview with Katherine on what solar contracting companies should know about branding (check out the first one here!). The third provides actionable tips on how you can make your solar sales proposals more compelling.  What are the 3 biggest pieces of advice you give to your clients? 1) The biggest piece of advice is to clearly identify your brand objective. Every company is going to need to address different parts of their brand at different times. At the beginning, it’s all about building awareness. You’d rather have someone misunderstand who you are than not know who you are at all, because you’ve got to get your name out there. As you grow, your objective might change to clarifying who you are, and getting everyone onboard with exactly what makes you special or different. Then, at some point, it’ll change to actually making sales and it’s all about driving revenue. Stop to do a competitive audit and look at who else is out there. What are they communicating about themselves? What are they offering? Where do you stand relative to them? 2) Second, always look at the competition on a regular basis. A lot of companies when they first start out, they’ll take a little bit of a look around and see who else is out there, but then they dive into their own world. After a while, it’s hard for them to get their heads out of the sand. On a regular basis – whether that’s once a month, every six months, or once a year, depending on how quickly the industry changes – stop to do a competitive audit and look at who else is out there. What are they communicating about themselves? What are they offering? Where do you stand relative to them? You need to be constantly going out there and talking to your clients... and reflecting on how their needs are changing. 3) Finally, always get customer feedback. When companies start out they’ll do some initial consumer testing, make sure people are understanding their product, etc. They’ll set it up once and think it’s done. But the reality is you’re always getting new customers, and technology, expectations, and your product are always changing. You need to be constantly going out there and talking to your clients or customers and reflecting on how their needs are changing. How else can consistent branding be applied? As you become a bigger organization, constantly checking in and reminding your team of the importance of being consistent with your branding across the company is key. It’s easy to set up a brand the first time, have your templates in place, have your business cards, have your website and then you think you’re done. The reality is that’s just one small piece of building your brand. Whether it’s every six months, once a year, or even more frequently, communicating with your company what your core values are, who you want to be, and how you want people to think about you will help your employees rise to the occasion. They’ll start to internalize that and reflect it back. ...make sure the way your company runs and what customers see are one and the same. I think the internal brand (aka employee culture) really has to match your external brand. If you’re claiming to have the best customer service, then you need to treat your employees that way too. If you’re claiming to be the fastest to install, then you need to hire people that are able to work efficiently and have efficient protocols and processes in place. Build both your internal and external brand from the same root; make sure the way your company runs and what customers see are one and the same. ~~~ We hope Katherine’s branding advice — clearly identifying your brand objective, paying attention to the competition, getting regular customer feedback, and ensuring consistency in your internal and external brand — can help take your company to the next level. As the solar market becomes increasingly crowded, attention to branding and marketing can help your company stand out from the competition. Whether it’s offering a unique sales experience through solar design centers, or approaching solar from a roofing perspective, differentiating your brand can have a big payoff. Do you have additional advice for successful branding in the solar market? Join the conversation on Twitter, Facebook, and LinkedIn with the hashtag #SolarBranding2017 and let us know what you think! Want to be in the loop on our latest articles? Click here to subscribe to our blog! ### Landmark Solar Design: The White House In our new series Landmark Solar Design, we will be exploring the world, all from the comfort of the Aurora office in Palo Alto. In each post, we will ‘travel’ to a famous landmark and investigate its potential for solar energy generation. For each site, we will go through the entire solar design process - from determining an optimal component layout based on the roof structure and shading losses all the way to a cost analysis with various financial options. With election season in full swing, we couldn’t think of a more appropriate site than the White House for the inaugural post of our series. We have prepared a preliminary site assessment and proposal for President Obama to look at in the last few months of his term (or the National Parks Service since they’re in charge of maintaining the White House grounds). A brief history of solar energy at the White House The White House is no stranger to the benefits of solar, and has had solar systems in place since 1979. 1979 - 32 solar thermal panels are installed on the roof of the White House by President Jimmy Carter. He predicted that solar could “be a small part of one of the greatest and most exciting adventures ever undertaken by the American people.” 1986 - Carter’s solar panels are dismantled by the Reagan administration. 2003 - Under the administration of Pres. George W. Bush, the National Park Service (NPS) oversaw the installation of a 10kW PV system, along with two thermal solar systems for the White House swimming pool. 2013 - President Barack Obama orders the installation of 6.3-kW of PV panels on the roof of the Obamas’ executive residence. The system is estimated to have an eight year payback period. While 6.3-kW is a typical PV size for an average American home, the White House roof has untapped solar potential that could power administrative offices and facilities in the complex. The estimated yearly electricity consumption of the White House is around 852,500kWh, based on average kWh/sq ft of office buildings. Given the size of the building, a commercial scale installation would be appropriate. To meet those electricity needs, we found more spots for solar panels on the roof of the White House. Analyzing the roof structure The White House has three main sections: Executive residences - where the Obama family lives West Wing - presidential offices East Wing - office spaces for the First Lady and her staff And the two colonnades that connect the wings to the original central residence. The grandiose three-story executive residence has various obstructions on the roof, making it difficult to place large arrays there in our solar design. Its height also results in shading on the surrounding structures. The irradiance map reveals that the West Wing is a hotspot, not just for political activity but also for solar access. Based on solar access values from nearby weather stations (TMY3), we see that East and West wings have the highest solar energy potential, followed by the unshaded regions of the East and West colonnades. Solar system layout Using Aurora’s autofill tool, we placed a total of 980 American-made SunPower solar modules on both wings and colonnades, for a 320-kW system. (For the colonnades, we only put solar modules where the annual solar access was more than 80%.) Spec Table System Size 320-kW Panel Tilt 20° Row Spacing 2.0 ft Number of Modules 980 Estimated Project Cost $1,000,000 Simulating energy performance Taking into account system loss factors such as soiling, snow, and shading, our performance simulation engine estimates that the solar design can produce 358,123 kWh of electricity in a year. Electricity offset The solar energy production would offset almost 43% of the White House’s electricity consumption, significantly reducing its carbon footprint. Financing options Now, how should the United States government pay for the proposed solar system we designed? Energy independence: Minimal shading across panels on the White House roof on the 4th of July If the White House paid for the entire system upfront, the payback period would be 11.65 years, or 2.91 presidential terms. Not ideal. Loans Thankfully, the US government can get a pretty good deal with financing options. After all, federal infrastructure development isn’t quite complete without some healthy debt. Let’s assume Uncle Sam takes out a loan consistent with its borrowing history. The loan covers 100% of the project cost and they don’t pay any dealer fees. The loan interest rate is benchmarked to the current 30 year treasury yield rates (USGG30YR:IND via Bloomberg). That looks like a much better investment! Because we predict utility rate escalation at 3.5%, the deal only gets better as time goes on. There you have it: Clean Energy Savings for All -- of the White House. It’s a sound business decision that would entice any candidate. Notes: We assume the cost is $3.25/W. We assume that the White House is on the Potomac Electric Company’s Residential Time Metered (RTM) schedule, with 3.5% utility escalation rate, and 5c/kWh for Net Surplus Compensation. We assume that the White House roof is structurally sound enough to support the weight of the solar generation system. ### Why Submodule Simulation Matters Module datasheets often include current-voltage and power-voltage curves that show how the output power of the module decreases with decreasing irradiance. An example is shown in Figure 1, where we can see the peak of the power-voltage curves (thin lines) drop as the irradiance on the modules goes down from 1000 W/m2 to 600 W/m2. When the irradiance on the module is very low — as is the case when the module is fully-shaded — its power output is generally negligible. If this module is part of a string of panels connected to an inverter, it can cause the power of the entire string to drop. This is because the current through the string can only be as high as the current through the most shaded module, and as we can see from Figure 1, the current of a module (thick lines) decreases under shading. Figure 1: Current-voltage (thick lines) and power-voltage (thin lines) curves for a solar panel with varying irradiance. Image source: Savana Solar This is the reason why manufacturers integrate bypass diodes into their modules. As an example, consider the case where nine out of ten modules are capable of outputting 8 A of current at a voltage of 32.5 V, but one of the ten modules is shaded and can only produce 1 A at about the same voltage. If the weak module is not bypassed, then the total output power is roughly 10 ⨉ 32.5 V ⨉ 1 A = 325 W, because the entire string is forced to operate at the lowest current (note that this assumes the unshaded modules still operate at 32.5 V; in reality it will operate closer to its open circuit voltage). If, however, we can bypass the shaded module, then the total output power becomes 9 ⨉ 32.5 V ⨉ 8 A = 2,340 W, excluding the small power loss due to the diode voltage drop. But what happens if only part of the module is shaded? Does the whole module have to be bypassed, or can we use the unshaded sections to generate energy? It turns out you can, and this is why manufacturers integrate more than one diode into a module, effectively dividing the module up into smaller sections, called cell strings, each with a parallel bypass diode. When there is shade on only one of these cell strings, it can be bypassed while the rest of the module operates at maximum power. For a module with three cell strings (and three bypass diodes), that means we only lose about ⅓ of the module’s power instead of the entire module’s power when only one cell string of the module receives shade. This is why it is important to analyze where there is shade on a module down to the cell string-level. Modeling solar designs to this level of granularity can have an appreciable impact on energy production results, and therefore expected financial returns. How Submodule Simulation Affects Projected Returns on Commercial Projects Consider the commercial rooftop in Figure 2, located in California (latitude 37.47°). We will design systems with varying row spacing, at 20° tilt to see how much DC power can fit in the limited area of the roof. The total system size for different row spacings are shown in Table 1, as are the module-level and submodule-level simulation results. As the row spacing is reduced, we can fit more modules on the roof, leading to higher energy production; however, as the rows get closer they begin to cast shade on each other (Figure 3). This means that while the overall energy production is increasing, the system efficiency, or energy yield (kWh/kWp), is reducing. When simulating system performance at the module-level, Aurora bypasses a module if any point on the module is shaded. However, this does not necessarily reflect what would happen in the real world, where if only one cell string in a module is shaded — such as those along the bottom of a row of modules when in the shadow of the next row — only that cell string needs to be bypassed. Modeling at the submodule-level becomes increasingly important as the row spacing is reduced because it captures this behavior exactly. The lack of granularity in the module-level simulation leads to an overly pessimistic NPV. As the results in Table 1 show, the differences can be on the order of a few percent. This may not seem significant, but for a commercial solar project a small change in energy production can translate to a significant dollar value. The net present value (NPV) of each system, given the energy production results of module-level and submodule-level simulation, is shown in Table 2. The 2% difference in the performance estimate for the design with 1.5 foot row spacing leads to a 5.4% change in the NPV of the system, assuming a cost of $4/watt, a utility rate escalation of 3%, NEM (TOU) rates, an energy offset of ~80%, and a project life of 25 years. Also worth noting is that the NPV of the project increases as we reduce the row spacing, until we run a module-level simulation with the tightest spacing. The lack of granularity in the module-level simulation leads to an overly pessimistic NPV. This is not observed for the submodule-level simulation, where the energy production results for the tightest row spacing are more realistic. Modeling at the submodule-level becomes increasingly important as the row spacing is reduced because it captures this behavior exactly. As the results in Table 1 show, the differences can be on the order of a few percent. Figure 2: Small commercial site with an example system design and irradiance map showing shade from obstructions and parapet walls. Table 1: System size and annual energy production results at the module-level (ML) and submodule-level (SL) for designs with decreasing row spacing. Row Sp. [ft] DC Size [kW] ML Prod. [MWh] ML Yield [kWh/kWp] SL Prod. [MWh] SL Yield [kWh/kWp] Diff. [%] 3 65.52 103.21 1575 104.26 1591 1.01 2.5 70.20 110.30 1571 111.51 1588 1.09 2 79.56 123.43 1551 125.20 1574 1.42 1.5 84.24 127.08 1509 129.75 1540 2.08 Figure 3: Aerial views of designs featuring 3 foot (top) and 1.5 foot (bottom) row spacing at noon in mid-December. Adjacent rows do not cast shade on each other in the design with larger row spacing, while there is significant inter-row shading in the design with narrower row spacing. Table 2: Row spacing and net present value (NPV) at the module-level (ML) and submodule-level (SL) for designs with decreasing row spacing. Row Sp. [ft] NPV, ML Simulation [$] NPV, SL Simulation [$] Diff. [%] 3 62,689 64,092 2.21 2.5 66,388 67,933 2.30 2 72,933 74,769 2.49 1.5 72,209 76,218 5.40 Impacts of Submodule Simulation on Residential Designs Accurately simulating a system at the submodule-level is important for the residential installer as well. Consider the design in Figure 4, which includes eight 255 W modules in series connected to a 3 kW string inverter. A module-level simulation gives an annual yield of 2.35 MWh, while a submodule-level simulation gives a result of 2.41 MWh — a difference of roughly 2.5%. A module-level simulation gives an annual yield of 2.35 MWh, while a submodule-level simulation gives a result of 2.41 MWh — a difference of roughly 2.5%. Of course, this is not a complete design for a house of this size. But it does serve to illustrate the importance of modeling at the submodule-level, especially under shaded conditions. Figure 4: Design that includes a string of modules, with some modules experiencing concentrated shade from a chimney. If the submodule simulation option is selected, Aurora’s performance simulation runs at the cell string level. The simulation algorithm takes into account exactly where on the module the shade falls and how the inverter bypasses shaded cell strings to maximize array power. Aurora makes no assumptions regarding the placement of bypass diodes inside the modules: we have contacted leading module manufacturers and confirmed exactly how they have configured their cell strings and bypass diodes, so our users can be confident that the simulation results accurately represent the systems they design. To enable submodule simulation in Aurora, follow these instructions. Takeaways: Bypass diodes inside modules are used to “skip over” shaded cell strings without bringing down the power output of the entire module (and string). Modeling the design down to the cell string level is necessary to accurately simulate the effects of bypass diodes, especially for commercial designs with inter-row shading. Submodule-level simulation can show production results 2% or greater (and closer to reality) than module-level simulation results. To enable submodule-level simulation in Aurora follow these instructions. Want to see submodule simulation in action? Watch our webinar with Greentech Media: Improving Solar Energy Production Estimates with Submodule Simulation. ### Solar Sales Part 1: The Importance of Branding - with Katherine Glass Here at Aurora, we’ve been thinking about how we can help you better sell solar to homeowners. We retained Katherine Glass, founder of SpringMark - a marketing and brand strategy firm, to interview homeowners and solar installers on our behalf. Our research culminated in a day-long roundtable session with a collection of leading solar sales professionals at our office. We are excited to share what we learned with you in the form of a 3-part series: the first two articles will cover what we learned about branding, and the third will highlight tips for developing strong solar sales proposals, and unveil some new features to help you sell more solar. Brand is a word that every business owner has heard, but few know exactly what it is, why it is important, and how to build it effectively. Katherine Glass is an expert in helping companies create their marketing and branding strategy. She spent seven years at Lippincott where she worked on the branding strategy for companies like Delta, Petco, and Starbucks. Four years ago, Katherine launched her own firm, SpringMark, which works with young companies on creating, developing, and launching a cohesive and powerful brand. Here, Katherine shares her insights on how solar companies can use branding to increase sales. What is your definition of the word “brand”? Different people have different definitions, but the one that I always like the most is what Jeff Bezos of Amazon said: “Your brand is what people say about you when you’re not in the room.” “Your brand is what people say about you when you’re not in the room.” Your brand is everything about you that creates a reputation or sets an expectation for a customer. It doesn’t really matter what you’re saying about who you are if that’s not what people think about you. Now that you’ve gotten a feel for the solar industry, what’s one piece of advice you’d give to a burgeoning solar installer? Customer service is king. Because solar is becoming more of a commodity, I think good ol’ customer service is crucial for differentiation. Going in person to the house, giving fast responses to phone calls and emails, and really showing that you recognize this is a big purchase for most people will help garner loyal customers. Usually, customers are going to be living with the installation for many years, probably as long as they’re gonna be in the house, so acknowledging that fact helps sow the seeds of trust. Building that rapport will be the strongest way to win business. A lot of that is reflected in your brand by being professional, from wearing nice shirts with your logo on it to putting together a short and to-the-point presentation that tells a good story about what they’re doing. Anything they can do to create a cohesive brand is helpful, but having customer service people being genuine and helpful is most important. Customer service is king... building rapport will be the strongest way to win business. In your research with both solar buyers and solar installers, what are two things you saw solar installers doing right, and two things you saw them doing wrong, from a branding perspective? A lot of the solar installers I spoke with were very cognizant of being consistent with their brand. They make sure that typography, color palette, and messaging in their proposals matches their website and their business cards. This is a great step to both look professional and to reinforce who they are as a company. Another thing they’re doing right is experimenting. A lot of solar installers are looking at new and different ways to advertise and reach out to consumers. They’re using more traditional methods like radio ads and direct marketing, but also trying new things like customer referrals structures or throwing block parties after an installation within the community. I think constantly being open to trying new things is always great; you’ll see what works best and what reflects your values and personality as a brand. I think that since solar is becoming much more of a commodity and it’s hard for homeowners to differentiate this product, many homeowners focus on price. Smaller companies have to differentiate the value that they bring as a company in order to get people away from price. That may be emphasizing warranty or customer service, or whatever it is that makes them unique. Another thing for solar installers to improve upon is to be really clear about the story you’re telling when you’re selling. From a sales perspective and the way that you’re branding your sales decks, really be clear about what type of customer you’re talking to and address that customer specifically as fast as you can. Be really clear about the story you’re telling when you’re selling. How would you say that one’s branding strategy changes with size? The similarity between companies of all sizes is that everyone needs a brand. It doesn’t matter if you are business to business, business to consumer, small, medium, or large, your brand has to tell a clear and engaging story. What is different about small brands and big brands is that when you’re small, you have the opportunity to be a little more flexible; if you start out communicating that you’re one thing, chances are you will pivot and evolve over time. You need a brand that is flexible enough to accommodate that, from the name you have to the messaging on your website. A bigger brand, on the other hand, is more established; it’s a lot harder to change people’s perceptions of them. With a company like Coca-Cola or Nike, people have a very clear expectation in their minds about what that company is, and so it takes way more marketing dollars and touch-points with customers to actually change their viewpoints. Often times, a smaller company can make a splash more easily with the same amount of marketing dollars because it’s something novel and piques people’s curiosity more. Enjoyed this article? You can read more branding insights from Katherine Glass in the next article in this series, and learn about how to make your solar sales proposals more compelling in the third installment.  What have you done to create your brand? Leave us a comment below, or tweet us at @AuroraSolarInc! ### Solar Alphabet Soup: 4 Acronyms That You Should Know [This article was originally published in Solar Power World. ] It isn't easy keeping up with the solar industry. Every few months new products, financing mechanisms, policies, and organizations pop up and change how you design and sell solar. This article will bring you up to speed on some of the industry’s most frequently used acronyms, and keep you up to date on important emerging solar design and financing trends. 1. PACE - Property Assessed Clean Energy Infographic on how PACE works. What it is: PACE is a mechanism by which homeowners can finance solar and energy efficiency projects via their property taxes. Local or state governments, working with traditional financiers, fund the upfront cost of the solar installation or energy improvement. Homeowners pay back their local authority via an increased property tax bill, usually over a period of 20 years. Why you need to know about it: PACE has been around since 2001, but for the first 10 years of its life it had a limited impact on the industry. PACE programs received a big boost in August 2015, when the Obama administration issued a new directive to implement legislative changes making it easier to buy and sell properties that have solar installations financed by a PACE loan. PACE offers low financing rates, tolerant credit requirements, but most importantly, local governments are incentivized to promote the product since they keep a portion of the PACE payment. What’s in store: Over the next few years, I predict PACE-based financing will be the fastest growing financing option in the solar market. 2. LIDAR - Light Detection and Ranging What it is: LIDAR is a method of obtaining information about objects or areas remotely by using light pulses emitted from a device to measure distances. The device combines GPS data with the distances it measures, constructing precise three-dimensional information about the shape of the environment. Why you need to know about it: LIDAR is slashing solar design costs by helping the solar industry avoid truck rolls. With LIDAR, a solar salesperson or engineer can quickly generate 3D models directly from their office. They can precisely calculate building, tree, and obstruction heights as well as roof slopes. LIDAR data can be used to generate bankable shade reports, which are accepted for rebate purposes by rebate authorities and private lease financiers. What’s in store: As the cost of acquiring LIDAR falls and its benefits become more accessible, I predict that LIDAR will continue to reduce the soft costs of residential solar. NREL estimates that remote site assessment has the potential to reduce industry soft costs by $0.17 per watt -- that’s the equivalent of half the cost of an average string inverter! LIDAR data is used to improve the accuracy of remote site design in Aurora. 3. LCOE - Levelized Cost of Energy What it is: The LCOE is the average cost per unit of energy that your solar project generates over its lifetime. Mathematically, it is the lifecycle cost of the solar project divided by the amount of energy it produces. The lifecycle cost of a solar project includes the initial cost to purchase it, financing costs (such as loan payments), and operations and maintenance costs (such as inverter replacement costs) over the life of the project. Why you need to know about it: LCOE is one of the oldest metrics in the solar industry. It offers an “apples-to-apples” way of comparing different financing options. If your client wants to compare the financial returns of going solar via a loan, lease, PACE, or cash purchase, LCOE is one of the best ways to determine their best option. Additionally, knowing your LCOE also has implications for solar design. What’s in store: Over the next few years there are going to be more and more options for solar design and financing, so knowing how to calculate LCOE offers you the ability to evaluate them on an equal playing field and determine the best option for your customer. 4. LACE - Levelized Avoided Cost of Energy What it is: The LACE is the average revenue per unit of energy that your solar installation generates over its lifetime. Mathematically, it is the lifecycle revenue (or avoided cost in the case of net metering or other similar compensation schemes) divided by the lifetime energy production. Lifecycle revenue includes revenue earned from feed-in tariffs, avoided cost from net metering schemes, and production-based incentives. Why you need to know about it: One of the drawbacks of an LCOE calculation is that it does not explicitly take into account the revenue or avoided cost of a solar project. LACE, on the other hand, accounts for that. Since utility rates often vary by time of day, it is important to not only know how much energy you are offsetting, but at what times you are offsetting it. Without knowing the value of the energy you are saving, it makes it hard to compare two different solar designs that cost the same, but have different production profiles. Furthermore, LACE allows you to easily compare a solar installation to an energy efficiency retrofit, for example. This has made LACE popular in government and utility planning circles. For example, a utility can compare the avoided cost of purchasing LED light bulbs versus installing solar (spoiler alert: it partially depends on the differential between daytime and nighttime electricity rates). What’s in store: As the benefits of solar energy become increasingly explicit, customers will go from asking if they should go green to asking how they should go green. LACE provides a convenient way to compare the economic returns of different ways to reduce your carbon footprint. Pantone's color of the year is "greenery" for a reason. And there you have it! Hopefully this overview of some choice acronyms can help you stay on the forefront of this dynamic industry. If you think of some industry acronyms that are important for the solar community to know, tweet us at @AuroraSolarInc! ### A Roofer's Guide to Going Solar - with Michelle Meier This is an installment of our Solar Spotlight series.  With a Masters degree in Electrical Engineering and a decade of solar experience, Michelle Meier is one of those people you want in your corner and never on the other side of the ring. She is the founder of Solar Roof Services, a company that helps roofing contractors boost their income by adding solar installation services to their existing book of business. I had the opportunity to peek inside the mind of the woman who is helping drive the adoption of solar by monetizing the natural synergies between the solar and roofing industries. Tell me a bit about yourself and your relationship with solar. I started in solar in 2007. I have a Masters degree in Electrical Engineering and I was in the semiconductor field for 20 years before solar. When I decided to reinvent myself I got hired by a roofer in San Jose and started their solar division. I learned solar from a roofing perspective from day one, which is really unique in the industry. I later went to work for GAF and became their national solar sales director, essentially incorporating their residential roofers into solar. When we decided to part ways, I thought "I've done this for two other companies, let me do this for myself." What exactly does that entail? I teach roofers how to take their roofing business and extend it to solar. It’s logical. We do that by partnering them with their current favorite electrician! I created an office that lets that contractor have no overhead. Our office does what you guys call a proposal, I call it a financial analysis. We do all of the utility paperwork, the permit package, and I even connect them to distribution. I help roofers turn every single roof lead into a solar lead. Michelle trains her clients to use Aurora for their remote site assessment or creates projects on their behalf. You’re a seasoned marketer in the solar industry. Can you describe the solar landscape from your perspective? My best way to describe it is—when I started doing this 10 years ago, people would look at you and say “Oh my gosh, you have solar?” Another five years from now and it’s gonna be exactly the opposite: “Wow, you don’t have solar?” In terms of the feasibility for homeowners getting solar, it varies. In California with the rates the way are, it’s almost stupid not to get solar when you can do the "no money down" options. No matter which financing option you go with, if you’re paying less for your solar payment plus whatever’s left on your utility bill than your current bill, it’s just stupid not to do it. I work with other states where it’s a little bit harder. However, the industry is ours to win or lose. Mar our reputation or build a great reputation, it’s ours. 10 years ago, people would look at you and say “Oh my gosh, you have solar?” Another five years from now and it’s gonna be exactly the opposite: “Wow, you don’t have solar?” How do you help the industry win? I come at it from the roofers. One of the things that we’ve found over the years is an average home has 14 penetrations. A bathroom vent, a kitchen hood vent, other normal penetrations on the roof of a typical home. An average solar system has 25-50 penetrations. So you took that 14 to 64! How much more of a chance did you make of having a leaky roof? Why is Joe Blow allowed to poke all those holes in a roof and not have it inspected? The direction that I come from is what makes the difference. The more and more we can give homeowners a trustworthy installation, the better our image will become. An average home has 14 penetrations. An average solar system has 25-50 penetrations. So you took that 14 to 64! What are the three most important pieces of advice that you give to your clients? First, always lead with your value-add as a roofer. The fact that you’re licensed to do penetrations, and you’re giving them a 10-year warranty on the roof, plain. On a tile roof that’s significant, for the following reason: if you walk across even a lightweight tile roof, you’re gonna break tile. Second, pull the local card because your locality is one of the bigger advantages against the big guys. Do you really want to depend on a company that doesn’t even have an office here? Third, go with the facts, don’t cheat. Underpromise, overdeliver. Always lead with your value-add, pull the local card, and underpromise, overdeliver. What is the biggest challenge facing solar installers today? For the roofer, the biggest challenge is that they’re new to the market and you’ve got all these established guys out there. So they have to sell their roofing reputation and hope that clients will trust them as they get into solar. If you couldn’t work with roofers who would you work with to help transition into solar? Electricians. Teach them how to do the roofing properly. Those penetrations; how to find that rafter, make sure it’s in the rafter, waterproof it, etc. Any secret talents? I was a competitive baton twirler. I put myself through college doing it; I was Featured Twirler for Mississippi State University for 5 years on a full tuition scholarship. That’s my secret hidden talent! ### LCOE Explained: Behind Solar Sales' Most Important Metric [This article was originally published in Solar Power World.] The Levelized Cost of Energy (LCOE) is one of the residential solar industry’s most commonly used metrics. However, it is also one of the industry’s most poorly understood and incorrectly calculated metrics. Some may have referred to it as the “solar rate” or the “solar cost of energy.” Most conventional LCOE calculations incorrectly overestimate the cost, making solar seem less compelling than it should be. Whether you design a sub-optimal project, or you under-sell what you are designing, you are leaving money on the table. The Equation At its most basic level, the Levelized Cost of Energy is the lifetime cost of a solar installation, divided by the amount of energy the installation generates. By taking into account the upfront cash payment, as well as lifetime O&M and financing costs, the LCOE is supposed to give an “apples to apples” comparison of going solar versus staying 100% on the grid [1]. To explain this better, let’s expand the numerator of the LCOE equation: Lifecycle cost of solar project = PC - ITC + O&M + LP - PVPBI where: PC = Project cost ITC = Investment tax credit O&M = Operations & maintenance costs LP = Loan payments PVPBI = Present value of performance-based incentive So far most of this should be fairly intuitive. The more expensive the project (PC) and the higher your costs to maintain (O&M) and finance (LP) it, the higher your LCOE. Your investment tax credit (ITC) reduces your project cost, so that reduces your LCOE. Watch Out for Performance-Based Incentives Pay attention to the term “Present Value of Performance-Based Incentives.” Miscalculating this metric could cause money to leak out of your, and your client’s, pocket. It could contribute to increased carbon emissions by causing you to undersize your solar project, and by reducing your chances of convincing your customer to go solar. Performance-based incentives (PBIs) are payments that are tied to your solar project’s energy production. In the U.S., the most common form of these is Solar Renewable Energy Credits (SRECs). At the time of writing, ten states have active SREC programs or markets. SRECs are tradable commodities that represent the energy generated from solar, which can be used to meet renewable portfolio standards (RPS). An example of how solar renewable energy credits work from Energy Sage. Carbon credits are another type of PBI. Most home and business owners monetize their PBIs by selling them [2]. The actual value the homeowner receives will reflect the present value of the expected PBIs. How Much Do Performance-Based Incentives Really Matter? The effects this will have on your project’s LCOE vary based on the SREC program. Let us examine a homeowner that consumes 10,900 kWh per year. I designed a 9.9-kW system in a state where SRECs are currently priced at $0.27/kWh. Let us assume that this 9.9-kW installation has a Total Solar Resource Factor of 71% [3] . Aurora’s performance simulation engine estimates that this design produces 10,400 kWh per year, and it will produce 320.5 MWh over the project life [4]. Let us assume further that the homeowner purchased the system (so we don’t have to worry about loan payments) at a price of $44,460 ($4.5/W). Let us also assume an inverter replacement cost of $0.4/W. The inverter is replaced once over the life of the system. Here is a summary of the assumptions: Project Cost = $44,460 ITC = $13,338 O&M = $3,960 LP = $0 PVPBI = $21,265 With those assumptions, the project’s LCOE excluding PVPBI is $0.11/kWh, while the LCOE including PVPBI is $0.09/kWh — almost a 20% difference! That makes a big difference in how attractive solar will appear to the homeowner. Let us examine what effect this difference in LCOE has on the optimal system size. An optimal system size is realized when the project’s LCOE is equal to the prevailing utility rate. The example utility in this case, National Grid, has a tiered residential rate that increases with your net energy consumption. By having a lower LCOE, you can have a bigger system since you can afford to offset both the highest and lowest electricity tiers. Rate ($/kWh) Max kWh/month Period 1 Period 2 600 0.09355 0.10291 Infinite 0.10017 0.10953 For the example above, a 9.9-kW system offsets almost 100% of the homeowner’s energy consumption. This is not a coincidence; when your LCOE is less than your marginal utility rate, you want to offset as much of the homeowner’s energy consumption as you can. In this case, at a LCOE of $0.11, this project would not be economically feasible (hence the incentive program). Despite its simplifying assumptions, this example illustrates how understanding all the aspects of a complete LCOE calculation will aid you in sizing solar installations. It also shows the importance of including the present value of performance-based incentives in your LCOE calculation. For those of you who are interested: here’s the unabridged LCOE formula Aurora uses: Notes: [1] This article assumes a Net Energy Metering regime. [2] Often, the solar installer or financier will do this for the homeowner. [3] Total Solar Resource Factor is the ratio of how much irradiance hits the roof surface, as compared to how much irradiance the roof surface would receive in optimal conditions (perfect orientation and no shading). [4] This assumes a degradation rate of 0.5%. ### Solar Landmarks: A Solar Design for Buckingham Palace In our Solar Landmarks series, we explore the world, all from the comfort of the Aurora office. We will “travel” to famous landmarks and investigate their potential for solar energy generation. For each site, we will go through the entire solar design process — from determining an optimal component layout based on the roof structure and shading losses all the way to a cost analysis with various financial options. Buckingham Palace The UK has recently made some decisions that have left its solar industry struggling to grow. Firstly, it surprised the solar market by cutting the solar feed-in-tariff by 65%, then it surprised the financial markets by voting to leave the EU. This leaves us wondering: what can we do to help highlight the environmental and economic benefits of solar in the land of the Union Jack? What better way to make a statement than by helping Her Majesty The Queen go solar? We will perform a preliminary site assessment for Buckingham Palace, which was recently listed as the world’s most expensive home with a value of over $1.25 billion (we used an exchange rate of 1.25 US dollars to 1 Pound Sterling throughout this analysis). Balancing a Budget: Some Background on Royal Finances Before we get out over our skis, our first step is to qualify the lead. While we suspect they are good for it, we need to make sure that the Royal Family has enough cash, or adequate credit, to afford a solar installation. We also want to get a sense of how much they are spending on electricity in order to ballpark how big a system they would need. At the time of writing the Royal Family has not returned our request for a credit check, however we are able to retrieve information on their income from The Sovereign Grant Annual Report. For those in the US, this is essentially their equivalent of a W2, except it is measured in millions of pounds and read to members of parliament. And it is prepared by the delightfully named Keeper of the Privy Purse, as opposed to Turbo Tax. Here are some fun facts that we learn by combing through the Annual Report: The Queen is technically the Head of the Armed Forces, the Judiciary, the Civil Service and is the Supreme Governor of the Church of England (you thought you were wearing multiple hats). The Queen has met eleven of the last twelve US Presidents (we guess even The Queen needs a good excuse to use the good silverware). The Queen has sent 232,000 congratulatory telegrams to centenarians on their 100th birthdays (yes, telegrams—we had to Google them too). The Queen pays 50% of her suppliers within 15 days of receipt of invoice, and 95% of them within 30 days of receipt of invoice (an installer’s dream!) The Royal Household had income of approximately $65 million in 2015. We think they’re good for it. The Report records that Buckingham Palace consumed 4.3 million kWh of electricity from the utility grid (that’s about 4 times the estimate we used for the White House, which is a bit more secretive). Based on the utility rates available for the Palace’s area code, we calculated an average day-time rate of approximately $0.15/kWh for daytime energy usage, and $0.07/kWh for nighttime use. Great, we are ready to get started designing! Prospecting the Roof Structure Buckingham Palace’s floor area covers more than 19 acres! The site itself dates back to the seventeenth century, although the modern building was built between 1820 and 1828. We started by taking a look at the irradiance and shading characteristics of the roof. The irradiance map, generated in Aurora, reveals that south facing surfaces have the most sunlight, and that most shading comes from adjacent buildings.  With a glance at the irradiance map, we quickly see why 4 million British tourists make the annual pilgrimage to the relatively sunny United States: An average irradiance of about 1000 kWh/year is even less than Maine’s, which weighs in at about 1,200 kWh/year. Unsurprisingly, as seen by the lighter colors on the irradiance map, we found that south facing roof surfaces were the best locations for a solar installation. Unfortunately, the same blocky neoclassical architecture that draws legions of tourists every year also results in roof surfaces that have few uninterrupted areas for placing modules. Carport or Ground Mount? With few options for a roof installation, we have to look to the ground game. Fortunately, in addition to having over 19 acres of floor space, Buckingham Palace has over 40 acres of garden. We are going to look at installing a carport or ground mount system in the backyard. (After all, how much lawn does one really need for croquet?) An elevated structure will still allow for plenty of space for picnic tables for afternoon tea. We can use pipe racks in a 404 kW system and TrinaPeak 330W modules with cell-string level power optimizers, allowing us to mitigate the effects of shading from nearby trees. Given the size of the project, and due to the marquee nature of our client, we’re assuming an aggressive $2.1/W-DC installed cost. Spec Table Pitch 25° Rack Height 15 ft Modules 1,224 Estimated Project Cost $848,232 System Size 404-kW Simulating Energy Performance Taking into account system loss factors such as soiling, snow, and shading, and running a sub-module performance simulation, we estimate that this solar system can produce 330,195 kWh of electricity in its first year of operation. Energy production and loss diagram Our loss tree diagram shows exactly where we are losing energy and how we might improve our design—for example we see inverter clipping losses of 0.8%. Financing options Now that we have established that we can provide shelter for the visitors to Buckingham Palace, and offset approximately 10% of the Palace’s energy consumption, let’s see the financial return of this project. The UK has a feed-in tariff system where the system owner is paid a credit for any energy she produces, whether it is for self consumption or for export to the grid. At the time of writing, for a 404 kW system, the rate is approximately $0.02/kWh. Adding this to the baseline energy cost of $0.15/kWh, we have a total combined feed-in tariff rate of $0.17/kWh (to simplify the problem we are ignoring the time of use and export bonus rates). In our first attempt we assume that the Royal family dips into their savings to pay for this solar installation with cash. Cash Financed Hmm, a return of 6.55% and a Payback Period of over 14 years is not anything to write home about. The Queen probably has a pretty good FICO score though, and at a very minimum, she could post her house for collateral. Loan Financed After the Brexit vote bond rates are close to historic lows, so it should be a good time to lever up. Let's model a loan for 80% of the system cost at a rate of 2.2%. Debt does the trick! We are now looking at a very respectable sub 7 year payback, with a return of investment of almost 16%. That's enough to earn a famous Royal Wave: Notes According to UKPower.co.uk, electricity rates in Buckingham Palace postal code are 11.76p (incl. VAT) per kWh during the day, and 5.63p (incl. VAT) at night, with a standing charge of 16.6p a day. We make the following financial and system design assumptions: Annual Degradation Rate: 0.25% FIT Inflation Rate: 3% Inverter Life: 13 years Inverter Replacement Cost: $.3/W Project Life: 25 years The Inflation Rate was calculated by averaging the annual utility bill increase from 1997 - 2015. The utility bill information was obtained from the UK Department of Energy and Climate Change: https://www.gov.uk/government/statistical-data-sets/annual-domestic-energy-price-statistics ### How LIDAR is Transforming Remote Solar System Design What do self-driving cars, the Mars rover, and remote solar site assessment have in common? All three technologies use Light Detection and Ranging (LIDAR) data to quickly and accurately assess the environment in which they perform their operations. Since the 1960s when LIDAR was first used by NASA scientists for research purposes, it has quickly captured the imagination of professionals that want to remotely make precise measurements or three-dimensional models of an area. Over the last 15 years, technological improvements and cost reductions have greatly increased the accessibility of LIDAR data, which is having a beneficial effect on the solar industry. How LIDAR data is gathered LIDAR scanners emit pulses of light energy (using a laser) at buildings and other objects in an area, and measure how long it takes for the pulse to return. The laser pulse travels at the speed of light. Accordingly, the distance it travels can be calculated by multiplying the amount of time it takes for the pulse to arrive back at the scanner, with the speed of light, and dividing that figure by two (since the pulse makes a round trip). In the case of solar, the LIDAR scanner is typically fitted on a plane, which also contains a global positioning system (GPS) and an inertial measurement unit (IMU). The GPS unit measures the elevation, and the location (latitude and longitude) of the plane. The IMU measures the tilt and other data about the plane and scanner position in order to adjust the distance calculations. Illustration of LIDAR capture. Source: LIDAR-America.com. How LIDAR data is used Combining location and distance LIDAR data recorded by the scanner, software packages can generate a 3D model of the location. In the case of a self-driving car or the Mars rover , the vehicle uses this 3D LIDAR model to autonomously navigate without colliding with any obstacles. In the context of solar, 3D LIDAR models can be used to calculate building heights, roof slopes, and tree heights. LIDAR data is also used to calculate how much irradiance (sunlight) and shading is cast on a rooftop by objects such as trees, chimneys and buildings. By combining the resulting 3D LIDAR model with local weather data, software applications can calculate irradiance and shade metrics, such as solar access and total solar resource factor (TSRF) values. LIDAR can be used to generate a 3D model of a house. How accurate is LIDAR modeling? Aurora LIDAR shading values have been proven by the National Renewable Energy Lab (NREL) to be statistically equivalent to onsite measurements. An NREL study  funded by the US Department of Energy (DOE) found that remote shading engines that implemented LIDAR were within 3.5% of on-site measurements. On the basis of the NREL study, and their own independent assessments, several financing entities and rebate authorities such as the New York State Energy Research and Development Agency (the United States’ largest rebate authority) now accept Aurora's Shading Reports in lieu of on-site measurements. The bottom line: LIDAR makes solar quicker and cheaper According to the DOE, the customer acquisition cost for a typical 5kW residential system is $1,100. This is largely due to costs associated with site visits, wasting time and money by marketing to homes that are not a good fit for solar, and educating the homeowner about the economic benefits of them going solar. LIDAR modeling helps address many of these problems. Sites can quickly be identified and screened for their solar potential. Accurate system design and bankable shade reports can be generated remotely. The homeowner can easily see how much irradiance their roof receives, making it easy for installers to explain their solar design decisions. Most importantly, LIDAR modeling can be performed quickly: a remote shade report takes less than 15 minutes to generate. See how to use it in Aurora.  Integrating LIDAR into the solar design process offers the prospect of faster and cheaper solar, without a meaningful loss in accuracy. NREL estimates that remote site assessment has the potential to reduce industry soft costs by $0.17/W. To put that in context, remote site assessment could save you the equivalent of half the cost of an average string inverter. The land area covered by LIDAR is constantly increasing, and as the technology finds more commercial applications, the cost of acquiring LIDAR is falling. This is good news for the solar industry. LIDAR based remote site assessment provides an accessible mechanism to dramatically lower the soft costs of the industry. ### The Best Way to Sell Solar According to a Nobel Prize-winning Economist “So Myron, have you installed solar panels on your house?” I asked. The answer was no: “I have these magnificent redwood trees, so that gives me trouble.” Indeed, we performed a shading analysis on Myron’s house with Aurora. Shading from the trees prevented his roof from receiving enough irradiance to generate a meaningful amount of energy. But we weren’t here to try to sell solar to Myron, or to convince him to chop down his magnificent redwoods. We wanted to get some insight into how economists think about buying solar installations for their homes. We were also looking for advice on solar business strategy and key economic indicators we should be following. So on a sunny Monday morning, we sat down with Myron Scholes for a quick lesson on the macro- and micro- economics of solar. Myron Scholes was awarded the 1997 Nobel Prize in Economics for "a new method to determine the value of derivatives." His famed Black-Scholes formula is used by investment bankers every day to calculate options pricing around the world. Myron is a lecturer at the Stanford Graduate School of Business and has been a long-time adviser to Aurora. What is your take on the current US and global economy? It does appear to me that the risks of inflation have increased, consequently there could be unanticipated surprise on the plus side of inflation, in the US and around the world. We’re seeing that many inflation type assets have tended to increase in price such as oil, or gold, which is an indicator of inflation. There is a real belief in the markets today, regardless of the party that’s elected to the presidency in the United States, that in 2017, at least in the first months, we will see many bills going through congress that will either increase infrastructure spending in the United States, and/or have some form of tax reduction for the middle class so they can foster consumption. All of these tend to lead to a stronger US economy in the short run with the proviso that the debt increase necessary to bring this about means that future generations will have to pay it back, other than through the possibility that the projects they invest in will actuate positive present value. If they are positive present value, they’ll be self-sufficient and sustainable, otherwise they won’t. Given all of this, how would you advise solar installers to position themselves? Being flexible at this time, especially with decision making. [Solar installers] don’t have large capital costs since they are providing things at the margin. The question is how do you see [inflation] affecting the prices of the [solar] panels themselves. So they come from foreign countries. If China’s devaluing [their currency] and wanting to encourage their economy then they’re exporting the deflation… this makes the US Dollar stronger, which makes the cost of panels less. So it actually helps the importers more. If the US has the inflation to counter the deflation in China, Japan, then the benefit is to the solar panel installer. Any other suggestions on how to manage a solar business today? Through the power of technology, you can’t just say one shoe fits all. You have to figure out how to handle a whole cross-section of different clients and their needs, and be efficient in doing that. Technology always moves down to the individual and away from the total. When [the solar installation industry] first started, there was just one panel, and now you’re getting more differentiation and that’s a force that will continue. Installers will have to really be aware of that force and realize you need different types of panels, different configurations, different ways in which you address the clientele. And speed. Clients like things to be done quickly. The question is how do you create a business that allows you not only to quote bids but to also satisfy and fulfill them. The whole technology world is moving away from a product-focused to a solutions focus in the true sense of the word. That’s something they will have to be aware off. We’re getting closer and closer to a bespoke world and away from a product world. The business person always wants to think of it as one product. But the individual wants something that works for them, so there’s this fight: take this product it’s good for you. In economics, it’s what [the customers] want that counts, not what they supply for you. What does it take to sell solar to an economist? The way I look at any installation is that it’s somewhat akin to buying a new car. It’s not whether you replace it, it’s when: should it be now or should it be next year? And the way you think about that decision is that if the marginal cost of holding your car, holding your old power for one additional year is greater than the time-weighted cost of replacing, then you should replace. There’s the cost of installing my solar panels, which is the fixed cost. I have the cost of the power itself plus the amortization of the cost of the panels over the expected life of the panel. You have to discount the same way that you do the mortgage on your house. Each year you pay a mortgage, principal plus interest. You do the same with solar. You pay it down, period, such that at the end of its expected life, you’ve paid it off. And that’s the comparison of your marginal cost each year compared to the marginal cost of staying as you are. So you can build a model very easily of which would show that. What’s the cost of your current power? What’s the cost of your solar power? And how would I amortize the cost of the panels over time such that at the end of the life of the panel I’ve paid it off and I can start over again. (Exactly how Aurora does it.) What have you been up to nowadays? I’m teaching a class at the GSB called The Evolution of Finance. Additionally, I’m building a new investment business where I am concentrating on how to increase the value of your terminal wealth conditional on wanting to have a limited drawdown, or how much drawdown risk one is willing to take. So it’s a whole different focus from the current focus of the industry. The current debate is between passive-active, should you invest passively in ETFs or index funds or active in active managers. That’s completely the wrong analogy. Everything is relative. Everyone likes: “How am I doing relative to everyone else in the investment world?” I remember the Titanic and everyone on the top level of the Titanic drinking champagne, while people below were drowning, trying to get to the lifeboats. Absolutes are more important in life, not relatives. Any highlights of your career or what are you particularly proud of? It might sound trite, but it’s true: I’ve always tried to give to students and others through what I know. That, I’m really proud of. It’s transferring my thinking either through research and papers and also transferring my thinking to students or others to whom I can transfer knowledge. As you get older, you don’t only have theory, but you also have experience. The combo of theory and experience is very rich rather than either on its own. So I have a lot of theory and ways in which I think about a problem because I’ve studied them for a myriad of years. And on the other hand I’ve had a lot of experience and understand how things work and through that combination of experience I think I’m getting smarter and smarter over time. As I get smarter and smarter, it allows me to transfer that knowledge to others. So I enjoy giving and that’s an important part of life. Not the Nobel Prize? I mean obviously if you get awarded the Nobel Prize don’t turn it down- it’s a wonderful thing. But sometimes what you do in life is in part luck, if you’re in the right time right place and obviously having the vision to see things that others didn’t see for a long time. There’s two parts to life: one part of life is what happens all time and how you see this and what you do with all the mystery around you and how you add value. The other part is the tails of the distribution. Go for the tails, don’t go for the middle. Obviously not the bad tail. Avoid the bad go for the good. So many people in life just stay in the middle. ### Empower 2025 - Question Submission Form ### Empower 2025 ### Aurora Solar Snapshot ### GoodLeap Loans - Referral ### Sungage Loans - Referral ### Mosaic Loans - Referral ### Dividend Loans - Referral ### LightReach TPO - Referral ### Goodleap TPO - Referral ### Enfin TPO - Referral ### Empower 2024 Tampa GTM ### Empower 2025 - Waitlist ### Empower 2024 Salt Lake City GTM ### Empower 2024 Regional Series ### Empower 2024 Tampa ### Empower 2024 Salt Lake City ### Resources for Solar Professionals ### TPO Financing Integrations in Sales Mode ### Partners ### RE+ 2024 Interconnect ### RE+ 2024 Aurora Academy Office Hours ### RE+ 2024 Meeting Requests ### Terms of Use (Credits) AURORA SOLAR INC SERVICES AGREEMENT July 11, 2024 PLEASE READ THE TERMS AND CONDITIONS OF THIS SERVICES AGREEMENT, YOUR ORDER, AND OUR PRIVACY POLICY CAREFULLY BEFORE ACCESSING AND USING THE SERVICES. This Services Agreement (this "Agreement"), which incorporates your Order(s) and our privacy policy, govern access and use by you (“you” or “Company”) of Aurora’s Platform (as defined below) and related services, including, without limitation, the Design Services and the Subscription Services (collectively, the “Services”), unless you and Aurora Solar Inc. (“Aurora” or “we”) have executed a separate agreement governing the access and use of the Services. Aurora is willing to provide the Services to you only upon the condition that you accept all the terms contained in this Agreement. By clicking on “Accept Terms” (or similar language) on the account creation, log-in or similar page, by signing or accepting an Order that refers to this Agreement, or by using the Services, you have indicated that you understand, accept and agree to be bound by this Agreement. If the Services are to be accessed or used by or on behalf of an entity, the individual accepting this Agreement represents that he or she has the authority to bind that entity to this Agreement, and references to “you" or "Company" in this Agreement will refer to that entity. If you do not accept this Agreement, then you may not use the Services. 1. DEFINITIONS 1.1 ““Account”” means a unique account with Aurora that allows access and use of the Services. 1.2 ““Account Credentials” ” means user identifications, account numbers, profiles, credentials (such as API keys, bearer tokens or tenant IDs), login user IDs, passwords, or other access information for Company’s Account. 1.3 ““Account Data”” means information relating to an employee or other authorized Representative of Company that is collected or received by Aurora in connection with the procurement or use of, or payment for, the Services (for example, the names and email addresses of Company’s Authorized Users, account representatives and accounting personnel) and usage information generated by Aurora regarding Company’s or its Authorized Users’ usage of the Services. 1.4 ““AI Design Enhanced Project” or "AIDE Project"” means a Project that has access to Aurora AI. 1.5 ““Applicable Laws”” means all applicable local, state, provincial, federal or international laws, regulations, orders or rules. 1.6 ““Aurora Credits”” means credits purchased by Company that, through their redemption, allow Company to access and use a Service or a specific add-on feature or functionality of a Service. 1.7 “"Aurora Credit Bundle"” means the minimum number of Aurora Credits Company must purchase per Order, determined in Aurora’s sole discretion. 1.8 ““Aurora Credit Cost”” for a Service or separately purchasable add-on feature or functionality of a Service means the number of Aurora Credits that the Company must redeem in order to access and use such Service or add-on Service feature or functionality, as set forth in the applicable Order. 1.9 ““Aurora AI”” means Aurora’s technology that uses artificial intelligence and other automation algorithms to enhance the process of designing and selling a solar installation in the Aurora Platform. Examples of such technology include, but are not limited to, algorithms that autonomously create 3D models and algorithms that generate an optimal solar panel configuration for a given site. 1.10 ““Authorized Users”” means Company’s employees or contractors who Company has authorized to access Company’s Account. No persons or entities other than Company’s employees and contractors may be an Authorized User. A competitor of Aurora may not be an Authorized User. Further, Aurora reserves the right to limit the number of Authorized Users per Account at its discretion. 1.11 ““Beta Services”” means a product, service or functionality provided by Aurora that may be made available to Company to try at Company’s option, which is clearly designated as beta, pilot, limited release, non-production, early access, evaluation, trial, or by a similar description. 1.12 ““Company Data”” means all data and information input or submitted by Company or Authorized Users into the Services, other than Account Data. 1.13 ““Confidential Information”” means any business, financial or technical information disclosed by one party to the other party that: (i) is marked or otherwise identified as “confidential” or “proprietary” at the time of disclosure; or (ii) under the circumstances, a person exercising reasonable business judgment would understand to be confidential or proprietary. For clarity, Company Data is Company’s Confidential Information and the Services (other than Company Data) and Account Credentials are Aurora’s Confidential Information. Confidential Information does not include any information that: (a) is or becomes generally known to the public through no fault of or breach of this Agreement by the receiving party; (b) is rightfully known by the receiving party at the time of disclosure; (c) is independently developed by the receiving party without use of or reference to the disclosing party’s Confidential Information; or (d) the receiving party rightfully obtains from a third party who has the right to disclose such information without breach of any confidentiality obligation to the disclosing party. 1.14 “Design API”” means the design application programming interface made available by Aurora for the access and use of additional API endpoints not included in Sync API. 1.15 ““Design Mode"” means the functionality and user interface for creating detailed solar site models and designs. 1.16 ““Design Services”” means (i) the services performed by Aurora to generate solar site models via Aurora’s Expert Design or Expedited Expert Design services and (ii) Plan Set Services. 1.17 ““Effective Date”” means the first date that Company clicks on the checkbox marked “Accept Terms” (or similar language) or uses the Services, whichever is earlier. 1.18 ““Expedited Expert Design”” means an Expert Design for which the target delivery time for the solar site model is 30 minutes for requests made other than through bulk upload. 1.19 ““Expert Design”” means the service performed by Aurora to manually create solar site models using the highest quality imagery and data available to Aurora. 1.20 “"Export Control Laws"” means all Applicable Laws regarding export and re-export control or sanctioned, embargoed or blocked persons or entities, including (i) the Export Administration Regulations (EAR) maintained by the U.S. Department of Commerce, (ii) trade and economic sanctions maintained by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC), (iii) the International Traffic in Arms Regulations (ITAR) maintained by the U.S. Department of State, or (iv) similar laws and regulations applicable in the jurisdiction(s) of Company’s and its Authorized Users’ domicile or access or use of the Services. 1.21 “"Fees"” means the fees payable by Company for Aurora Credits that allow the access and use of the Services, as set forth in the applicable Order. 1.22 ““Intellectual Property Rights”” means patent rights (including, without limitation, patent applications and disclosures), copyrights, trademarks, trade secrets, moral rights, know-how and any other intellectual property rights recognized in any country or jurisdiction in the world. 1.23 “"Order"” means an applicable service order, order form, invoice or any other form of an order confirmation document as provided by Aurora. Your Order is the Aurora-approved form created following your purchase of Aurora Credits through our online payment process or via in-app purchase. It contains all of the details about your purchase, including your Subscription Term, Aurora Credits purchased and your Fees. You’ll find your Order(s) in your Account. Each Order will form part of this Agreement and will be subject to the terms and conditions contained herein. 1.24 “"Plan Set"” means a set of calculations and drawings to be submitted to an authority or authorities having jurisdiction as part of the permit application for approval of a solar installation. 1.25 “"Plan Sets Services"”means the services performed by Aurora to generate Plan Sets. Unless otherwise expressly agreed by Aurora in a signed writing, Plan Set Services do not include the provision of an engineering stamp and Company is responsible for obtaining the engineering stamp. 1.26 “"Plan Tier"” means the subscription tier purchased by Company. The Plan Tier purchased determines the availability and Aurora Credit Cost of Services and add-on Services features and functionality. 1.27 “"Platform"”means Aurora’s cloud-based solar installation design and sales software, application programming interfaces, related tools and interfaces, and related code, documentation and materials. 1.28 “"Project"” means a location or address for which Company initiates creating a solar installation. The location or address of a Project needs not be unique and it is possible for multiple Projects to exist for a given location. The Project type(s) purchased by Company depend on the Subscription Service(s) purchased by Company. 1.29 “"Representative"” of a party means such party’s employees, directors, officers, consultants, professional advisors, representatives, or agents (and, in the case of Company, Authorized Users). 1.30 ““Sales Mode”” means additional functionality (in addition to Design Mode functionality) and an additional user interface (in addition to the Design Mode user interface) for creating dynamic, interactive and customizable sales proposals for residential properties. 1.31 ““Service-Generated Output””means any reports, designs, drawings, images, documentation or other files or data that are generated by or through the Services and provided by or made available by Aurora to Company. 1.32 “"Specifications"” means the design specifications and other information required from Company in order for Aurora to perform the Design Services, to be supplied in the format specified by Aurora. 1.33 ““Subscription Services”” means Aurora’s Platform and related materials or support provided by or made available by Aurora to Company (other than the Design Services) pursuant to an Order and this Agreement. 1.34 ““Subscription Term”” means, collectively, one (1) year from the purchase date of your initial Aurora Credit Bundle purchase (“Initial Term”) and each subsequent renewal term, which is one (1) year from the purchase date of any subsequent Aurora Credits (each a “Renewal Term”). Your “Current Term” is your then-current committed period of Subscription Services, as either an Initial Term or Renewal Term 1.35 “"Sync API"” means the generally available application programming interface made available by Aurora for syncing Aurora’s solar installation design and sales software with Company's systems. 1.36 “"Taxes"” means any sales, use, value-added (VAT), ad valorem, excise or other governmental taxes, duties, levies, tariffs, or other transactional charges levied or imposed as a result of this Agreement. Taxes do not include taxes based on Aurora’s net income, net worth, asset value, property value or employment." 1.37 ““Third-Party Materials”” means any computer programs, technology, products, equipment, components, materials, content or information of third parties that are made available to Company in connection with the Services or that interoperate with or are used in connection with the Services, including, without limitation, via application programming interfaces. 2. USE OF SERVICES 2.1 “Account.” In order to access and use the Services, Company must register with Aurora and create an Account and each request to the Platform’s application program interfaces must include one of the Account's unique API keys. Company shall obtain separate Account Credentials (e.g., user IDs and passwords) for each Authorized User. Company shall provide accurate and complete information required for Company’s Account and ensure that such information remains materially accurate and complete. Company is responsible for maintaining the confidentiality of Company’s Account and Account Credentials. Company is responsible for all activities that occur under Company’s Account or using Company’s Account Credentials, whether such action was taken by an Authorized User or other person or entity and whether Company authorized such action. Company shall ensure that its Authorized Users, employees and other Representatives comply with all of Company’s obligations under this Agreement. Company will not share (and will instruct and ensure each Authorized User not to share) any Account Credentials with any other person or entity or otherwise permit any unauthorized person or entity to access or use the Services. If Company or an Authorized User does so, or if any person or entity not authorized under this Agreement generates Service-Generated Output through Company’s Account or otherwise uses Company’s Account Credentials, such access and use shall be deemed to be a material breach of this Agreement and, without limiting any other remedies Aurora may have, (i) Aurora may immediately suspend Company’s and/or such unauthorized user’s access to the Services; and (ii) Company shall indemnify Aurora for any losses arising out of such unauthorized use. Company shall (A) promptly notify Aurora of any loss, theft, unauthorized disclosure or other compromise of Account Credentials or any unauthorized use of or access to the Services or Service-Generated Output of which Company becomes aware and (B) use commercially reasonable efforts to prevent and terminate any such unauthorized access or use. 2.2 “Right to Use the Services.” Subject to Company’s compliance with the terms and conditions of this Agreement, including any payment due, during the Subscription Term, Aurora will make the applicable Services, as described in the applicable Order, available to Company and its Authorized Users and grants Company and its Authorized Users a limited, non-exclusive, non-sublicensable, non-transferable, revocable right to: (a) access and use the purchased Services solely for Company’s internal business purposes, and (b) reproduce and distribute to Company’s solar installation clients or prospective solar installation clients a reasonable number of copies of Service-Generated Output relating to such client, provided that Company does not modify the substantive content of, or remove any identifying legend or marking from such Service-Generated Output and does not distribute or sell Service-Generated Output separately from the other documents Company provides to its existing or prospective solar installation clients (i.e., as a stand-alone product for sale). Company’s rights in the Services and the Service-Generated Output will be limited to those expressly granted in this Section 2.2. Aurora and its licensors reserve all rights and licenses in and to the Services not expressly granted under this Agreement. Company is responsible for compliance with this Agreement by its Authorized Users and other Representatives and any action or omission by any of them that would be a breach if done by Company will be deemed to be a breach by Company. Company understands and agrees that some of the Services might not be available in some international locations i.e., Aurora AI, Expedited Expert Design, Expert Design and Plan Set are currently not available outside the US. Aurora will update the Company via the Platform if any new Services is being activated in their location. 2.3 “Restrictions.” Company shall not: (a) attempt to interfere with or disrupt the Services or attempt to gain access to any systems or networks that connect thereto (except as required to access and use the Services under this Agreement); (b) provide Account Credentials to or allow access to or use of the Services by anyone other than Authorized Users or, except as expressly contemplated by the Order (for example, with respect to overages), for Services or Authorized Users in excess of the amounts or types specified in the applicable Order; (c) copy, modify, prepare derivative works based on, sell or distribute any portion of the Services or any results thereof, except as expressly provided in Section 2.2 above; (d) frame, mirror, sell, resell, rent, license, sublicense, lease, or provide access to the Services on a time-share, service bureau, software as a service or similar basis, whether for a fee or not; (e) transfer any of Company’s rights hereunder; (f) access or use the Services or Aurora’s Confidential Information for purposes of monitoring the availability, performance or functionality of the Services, to develop, commercialize, license or sell any product, service or technology that could compete with the Services, or for any other benchmarking, comparative or competitive purposes; (g) reverse engineer, reverse assemble, decompile or otherwise attempt to derive source code from any part of the Services; (h) access or attempt to access the Services or Platform through any method other than authorized Account Credentials, access or attempt to access any features that were not purchased by Company in the applicable Order, or otherwise circumvent or attempt to circumvent any technical measures in the Services or Platform; (i) integrate, join, combine, or otherwise incorporate the Services, Aurora’s software or any other intellectual property of Aurora with and/or into Company’s or any third-party software, services, systems, hardware or platform, except with the prior written authorization of Aurora; (j) access or search the Services (or download any data or content contained therein or transmitted thereby) through the use of any engine, software, tool, agent, device or mechanism (including spiders, robots, crawlers or any other similar data mining tools), except using Services features provided by Aurora expressly for such purposes; (k) use the Services or the results thereof in any unlawful manner, for any unlawful purpose, or in any manner inconsistent with this Agreement or applicable documentation (including but not limited to engaging in any form of harassment or offensive behavior; violating the privacy rights, Intellectual Property Rights, publicity rights or other rights of any person or entity; engaging in fraud, bait-and-switch tactics, misleading advertising or other unethical business practices; contacting a person who has requested not to be contacted; or engaging in false identification of caller/sender in its communications); (l) act in a manner intended to circumvent Service-specific usage limits; (m) transmit a virus or other malicious code to or through the Services or overload, flood, spam, or paralyze the Services or take any action or inaction that interferes or is designed to interfere with the integrity or performance of the Services; (n) remove any proprietary notices or identifying legend or marking from any portion of the Services or the Service-Generated Output; or (o) encourage, authorize, permit or enable anyone to do any of the foregoing. Company agrees to utilize Aurora’s Services responsibly and within reasonable limits. Excessive or abusive use of Services, including but not limited to: continuous, disproportionate usage beyond typical needs, monopolizing resources to the detriment of other users, or any other behavior deemed by Aurora as overuse, is strictly prohibited. Aurora reserves the right to monitor usage patterns and take appropriate action, including but not limited to restricting or suspending Service access, if it is determined that the Company is engaging in such overuse. 2.4 “Acceptable Use Policies.” Company acknowledges and agrees that Aurora is not required to monitor or police communications or data transmitted through the Services and that Aurora is not responsible for the content of any such communications or transmissions. Company and its Authorized Users shall use the Services and the results thereof exclusively for authorized and legal purposes, consistent with this Agreement, the applicable documentation, Export Control Laws and all other Applicable Laws, and the rights of others. Company and its Authorized Users shall not use the Services to transmit any bulk unsolicited commercial communications. Company acknowledges that the Services are not designed, intended or authorized for use in hazardous or mission-critical circumstances or for uses requiring fail-safe performance such as the operation of nuclear facilities, aircraft navigation or communications systems, air traffic control systems or weapons control systems, or where failure could lead to death, personal injury or environmental damage. Company shall not use, and the above license does not extend to the use of, the Services for such purposes or under such circumstances. 2.5 “Data Maintenance and Backup.” Data Maintenance and Backup. In the event of any loss or corruption of Company Data, Aurora will use commercially reasonable efforts to restore the lost or corrupted Company Data from the latest backup of such Company Data maintained by Aurora’s third party hosted services provider. Aurora will not be responsible for any loss, destruction, alteration, unauthorized disclosure or corruption of Company Data caused by any third party. AURORA’S EFFORTS TO RESTORE LOST OR CORRUPTED COMPANY DATA PURSUANT TO THIS SECTION 2.5 WILL CONSTITUTE AURORA’S SOLE LIABILITY AND COMPANY’S SOLE AND EXCLUSIVE REMEDY IN THE EVENT OF ANY LOSS OR CORRUPTION OF COMPANY DATA IN CONNECTION WITH THE SERVICES. 2.6 “Changes to the Services.” Aurora reserves the right, in its sole discretion, to make any changes to the Services that it deems necessary or useful, including changes to maintain or enhance the Services or to comply with Applicable Laws. Company acknowledges and agrees that Company has not relied on any future availability of any service offerings, technology, or additional, enhanced or updated features or functionality. 2.7 “Beta Services.” Aurora may provide Beta Services at its discretion from time to time either under this Agreement or by executing a specific Order. Aurora may charge Aurora Credits for use of Beta Services as provided in the applicable Order (if any). Company’s access and use to Beta Services will terminate on the end date set forth in the applicable Order Form or immediately upon notice from Aurora or at Aurora’s sole discretion without any notice. COMPANY ACKNOWLEDGES AND AGREES THAT THE BETA SERVICES PROVIDED UNDER THIS AGREEMENT ARE PROVIDED ON AN “AS-IS” BASIS AND WITHOUT ANY INDEMNIFICATION, SERVICE LEVELS, SUPPORT, OR WARRANTIES OR REPRESENTATIONS OF ANY KIND, EXPRESS OR IMPLIED. Except to the extent such terms conflict with this Section, all other terms of this Agreement apply to the Beta Services. 3. FEES; PAYMENT; TAXES 3.1 “Aurora Credits.” During a Subscription Term, Company and its Authorized Users can redeem Company’s Aurora Credits for any Service or add-on Service feature or functionality available in the applicable Plan Tier. The applicable Order will set forth the aggregate number of Aurora Credits purchased by Company. Your Account will provide (a) the Fees payable for such Aurora Credits and for any consumed, but unpaid Aurora Credits used by Company during a Subscription Term; (b) the expiration date for such Aurora Credits (provided that, if no such expiration date is stated, Aurora Credits expire one year from the purchase date); and (c) the Aurora Credit Cost for each Service and add-on Service feature or functionality that will apply during such Subscription Term. Aurora reserves the right to increase the price per Aurora Credit, Aurora Credit Costs, and Aurora Credit Bundle for any Renewal Term (“Permitted Changes”). If Company does not agree with the applicable Permitted Changes for a Renewal Term, Company may elect not to renew by providing notice before the applicable deadline for notice of non-renewal. Any such Permitted Change will become effective on the first day of the Renewal Term. All Aurora Credit redemptions are non-refundable, and any refunds will be provided only in Aurora Credits. For the avoidance of doubt, Company’s Aurora Credits are usable only by Company and its Authorized Users and are not transferable or usable by any other party, including but not limited to affiliated companies of Company. If Company has exceeded its use of the total Aurora Credits purchased by the Company, Aurora will charge the Company for the overage and also add a balance of minimum Aurora Credits to the Company’s account. Aurora shall have the right to charge the Company as it deems necessary for such use of Aurora Credits. Company cannot deny Aurora’s right to charge the Company for (i) any Aurora Credits used by the Company and (ii) for the addition of minimum Aurora Credits to Company’s balance. 3.2 “Fees.” In consideration for Aurora providing the Services, Company shall pay the Fees to Aurora in accordance with this Agreement and the applicable Order. Unless otherwise provided by the payment terms specified in the applicable Order, Aurora will process Company’s payment of Fees upon submission or renewal of Company’s order and will accept Company’s order upon verified payment. Aurora reserves the right to change Aurora’s prices, Aurora Credit Cost, Plan Tiers and/or Services offered for purchase at any time prior to accepting Company’s order. All Fees and payments are non-refundable except as required by Applicable Laws. 3.3 “No Rollover of Aurora Credits. Company understands and agrees that Company may not carry over any unused portion of Aurora Credits during any applicable Subscription Term to any Renewal Terms. Aurora Credits are used in the order in which they were purchased and shall expire one (1) year from the date of purchase unless otherwise provided in an applicable Order. 3.4 “Payment.” Company shall provide complete and accurate billing and contact information to Aurora and shall promptly notify Aurora of any changes to such information. If Company orders Services through an online signup/activation process that provides for payment with a credit card or other online payment method (or if Aurora otherwise agrees that Company may pay by credit card or other online payment method), on the applicable payment date Aurora will charge the payment method provided by Company for Fees and any applicable service charge. If Aurora cannot charge Company’s payment method for any reason (such as card expiration or insufficient funds), (i) Company will remain responsible for any uncollected amounts and (ii) if Company updates its payment information, Aurora will attempt to charge the payment method again. In accordance with Applicable Laws, Aurora may update payment method information notified to Aurora by Company’s financial institution. Company authorizes Aurora to charge and update Company’s payment method as described in this Section. If Aurora is unable to process payment through Company’s payment method on file, or if you file a chargeback disputing charges made to your payment method and the chargeback is granted, Aurora may suspend or terminate your subscription. Company may purchase additional Aurora Credits at any time. If Company exhausts the number Aurora Credits purchased and continues to purchase Services during a given Subscription Term, Aurora shall immediately charge Company’s credit card on file and Company shall pay Aurora for the cost of the excess Aurora Credits equal to Company’s negative Aurora Credit balance plus Aurora Credit Bundle. D. All payments shall be made in United States Dollars. 3.5 “Taxes.” All Fees and other amounts stated or referred to in this Agreement are exclusive of any Taxes. Company shall be responsible for payment of all Taxes and any related interest and/or penalties resulting from any payments made hereunder. All payments hereunder shall be made to Aurora without any reduction for any Taxes. If Aurora has the legal obligation to collect and remit Taxes for which Company is responsible under this agreement, Aurora will invoice Company for such Taxes, as a separate line item, and Company shall pay such Taxes. If Company is exempt from any applicable Taxes, Company will provide a tax exemption certificate authorized by the appropriate taxing authority, after receipt of such evidence, Aurora will not charge Company any Taxes from which it is exempt. 4. OWNERSHIP; USAGE LICENSE; FEEDBACK 4.1 “Aurora Materials.” As between Aurora and Company, Aurora owns all worldwide right, title and interest in and to the Services, Aurora’s name, trademarks and logos, any data, information, analysis and statistics generated by the Services (subject to Company’s rights in underlying Company Data), and any code, tools, utilities, processes, inventions, system, devices, methodologies, documentation, techniques and materials of any kind used or developed by Aurora or its personnel in connection with performing Services, and all modifications, improvements, enhancements, upgrades and derivative works related to any of the foregoing (collectively “Aurora Materials”), including all Intellectual Property Rights therein. Company will have no rights in any Aurora Materials except as expressly set forth in this Agreement. 4.2 “Company Data.” As between Company and Aurora, Company owns all worldwide right, title and interest in and to all Company Data and Aurora will not obtain any ownership rights or interests in the Company Data except as expressly set forth in this Agreement. Company hereby grants and shall grant to Aurora a non-exclusive, royalty-free, worldwide, transferable, sublicensable license to use, reproduce, modify, and make derivative works based upon the Company Data: (a) as is reasonably necessary to provide the Services for the term of this Agreement; (b) for internal business purposes to maintain, evaluate, develop, and improve the Services and for accounting, legal and recordkeeping purposes; (c) to comply with Applicable Laws; and (d) to create, distribute or otherwise use sets of data derived from the data from multiple customers that are in an aggregated form that does not personally identify an individual person or Company. The license in subsections 4.2(b)-(d) is irrevocable and perpetual. 4.3 “Feedback; Account Data.” To the extent Company provides to Aurora any feedback, suggestions, ideas, algorithms, design, code or any other materials about the Services (collectively, “Feedback”), Company hereby irrevocably assigns and shall assign to Aurora all right, title and interest Company may have in and to such Feedback without compensation or other obligation to Company, and to the extent such assignment is not valid or complete, Company hereby grants and shall grant to Aurora an exclusive, royalty-free, fully-paid, transferable, sublicensable, worldwide, irrevocable and perpetual license under all Intellectual Property Rights to use and practice such Feedback in any manner. Aurora may process Account Data in accordance with its Privacy Policy available at https://www.aurorasolar.com/privacy_policy/. Account Data is not Company Data and, for clarity, Aurora’s privacy policy does not apply to Company Data. 5. NO WARRANTY; DISCLAIMER. 5.1 “Disclaimer.” THE SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTY OF ANY KIND. AURORA DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT, AND ANY WARRANTIES ARISING OUT OF COURSE OF DEALING OR USAGE OF TRADE. No advice or information, whether oral or written, obtained from Aurora or elsewhere will create any warranty not expressly stated in this Agreement. Company acknowledges and agrees that Service-Generated Output or other deliverables provided by Aurora are not to be construed as engineering, financial, construction or regulatory advice, and that Company will consult with its own engineering, financial, construction or regulatory advisors and will not use the Service-Generated Output or other deliverables as the sole basis for any design, engineering, bidding, construction or installation decisions. Company assumes sole responsibility and liability for results obtained from the use of the Services or the Service-Generated Output) and for conclusions drawn from such use. Aurora will have no liability for any claims, losses, or damages caused by errors or omissions in any Company Data provided to Aurora by Company or any results or Service-Generated Output produced by the Services based upon Company Data. Company acknowledges and agrees that the results and Service-Generated Output produced by the Services based upon the processing of Company Data are estimates only, that Aurora does not guarantee that these estimates will match actual measurements taken at a given site or that estimated energy production or financial analysis results will be realized, that Aurora does not guarantee the accuracy of any engineering designs, Plan -Sets or customer proposals based on the results or Service-Generated Output produced by the Services, and that the Services shall not be deemed a substitute for an actual in-person analysis conducted at a given site. In addition, Aurora does not warrant or guarantee any sales or other outcomes that Company may obtain, that the Services or Service-Generated Output will be available, error-free, secure, accurate, or complete, or that all errors will be corrected. Except as otherwise agreed in writing by Aurora, no refunds, credits or additional Services will be provided as a result of unavailability of Services. Aurora cannot and will not be liable for third-party criminal intrusions into the Services, despite its efforts to prevent the same. 5.2 “Additional Disclaimer for Engineering Stamps.” IN THE EVENT THAT COMPANY WANTS TO ACCESS AND PURCHASE THE ENGINEERING STAMPS IN PLAN SETS FEATURE UNDER COMPANY’s APPLICABLEPLAN TIER, THE FOLLOWING DISCLAIMER SHALL APPLY. COMPANY UNDERSTANDS AND AGREES THAT AURORA IS A SAAS PLATFORM ONLY AND DOES NOT DIRECTLY PROVIDE ENGINEERING STAMPS, NEITHER DOES AURORA RESELL ANY ENGINEERING STAMPS. AURORA IS A MERE PASS-THROUGH ENTITY THAT CAN CONNECT COMPANY TO AN ENGINEERING STAMP PROVIDER. UNDER THIS AGREEMENT AND UNDER THE PLATFORM, AURORA IS ONLY PASSING-THROUGH THE ENGINEERING STAMPS FROM THE PROFESSIONAL ENGINEER/STAMP PROVIDER. ANY AND ALL LIABILITY WITH RESPECT TO A PLAN SET WITH AN ENGINEERING STAMP SHALL BE BORNE BY THE ENGINEERING STAMP PROVIDER OR ENGINEER WHOES NAME IS LISTED ON THE PLAN SET. COMPANY UNDERSTANDS AND AGREES THAT ALL LIABILITY ASSOCIATED WITH ANY ENGINEERING STAMPS IN PLAN SETS IN ITS ENTIRETY RESTS WITH THE THIRD-PARTY PROFESSIONAL ENGINEER NAMED IN THE PLAN SET DOCUMENTS, AND AURORA SHALL NOT BE LIABLE FOR ANY ACTS OR OMISSIONS BY ANY THIRD-PARTY PROFESSIONAL ENGINEER. < /br> ”AURORA DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE ACCURACY, COMPLETENESS, OR FITNESS FOR A PARTICULAR PURPOSE OF THE ENGINEERING STAMPS. IN NO EVENT SHALL AURORA BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE USE OR MISUSE OF ENGINEERING STAMPS REQUESTED BY THE COMPANY. COMPANY AGREES TO INDEMNIFY AND HOLD HARMLESS AURORA FROM ANY CLAIMS, DAMAGES, OR LIABILITIES ARISING FROM THE USE OF ENGINEERING STAMPS, INCLUDING BUT NOT LIMITED TO LEGAL FEES AND EXPENSES INCURRED IN DEFENDING AGAINST SUCH CLAIMS. 6. COMPANY OBLIGATIONS. 6.1 “Setup.” Company is responsible for (i) the accuracy and completeness of Company’s initial and ongoing configuration and setup of the Subscription Services; (ii) ensuring that the Services are compatible with Company’s business and systems requirements; (iii) ensuring that the information Company provides in connection with the Services is current, accurate, and complete; (iv) the provision, maintenance, and use of Company’s hardware, network, internet connectivity, and software; and (v) any consents and notices required to permit Company to submit Company Data to Aurora and for Aurora to process such Company Data as contemplated by the Services and this Agreement. 6.2 “Cooperation and Assistance.” As reasonably required by Aurora to provide the Services, Company shall: (a) timely make available Company Data, Specifications and other necessary information and any agreed-upon software interfaces to Company’s business applications or website, and otherwise carry out in a timely manner Company’s responsibilities set forth in this Agreement; and (b) provide Aurora with good faith cooperation and assistance as reasonably requested by Aurora, including (as applicable), personnel assistance and any necessary access to Company facilities, equipment or systems related the Services. 6.3 “Suspension.” Aurora may suspend Company’s access to the Services in the event of (i) a material risk caused by Company or its Authorized Users or Representatives to the integrity or performance of the Services or the network (a “System Threat”); (ii) use of the Services in violation of this Agreement; or (iii) Company is delinquent in its payment obligations for any undisputed amounts. In addition, Aurora may suspend or terminate any Authorized User’s access to the Services in the event that Aurora reasonably determines that such Authorized User has breached this Agreement or violated the terms and conditions of any other agreement between Aurora and such Authorized User pursuant to which such Authorized User is permitted to access and use the Services. 6.4 “Company Data Representations.” Company represents and warrants to Aurora that: (a) Company has all rights, power and authority that are necessary for Company’s collection, use and processing of the Company Data as contemplated by this Agreement; and (b) Company’s use and provision of Company Data to Aurora pursuant to this Agreement will not breach any agreement between Company and any third party or violate any Applicable Laws. 6.5 “Telecommunications and Internet Services.” Telecommunications and Internet Services. Company acknowledges and agrees that Company and Authorized Users’ use of the Services is dependent upon access to telecommunications and Internet services. Company is solely responsible for acquiring and maintaining all telecommunications and Internet services and other hardware and software required to access and use the Services, including, without limitation, any and all costs, fees, expenses, and taxes of any kind related to the foregoing. Aurora will not be responsible for any loss or corruption of data, lost communications, or any other loss or damage of any kind arising from any such telecommunications and Internet services. 7. INDEMNIFICATION ” Company shall indemnify, defend and hold Aurora, its affiliated companies and its and their Representatives and successors in interest harmless from and against any claims, disputes, demands, liabilities, damages, losses, costs and expenses, including, without limitation, reasonable legal and other professional fees, arising out of or in any way connected with an action, suit, investigation or proceeding brought by a third party in connection with Company’s or an Authorized User’s use of the Services (other than any claim to the extent based on Aurora’s gross negligence or willful misconduct), including but not limited to a claim that Company has violated Export Control Laws or other Applicable Laws or that the Company Data, its provision to Aurora, or Company’s use of the Services or Service-Generated Output in violation of this Agreement violate, infringe or misappropriate any Intellectual Property Rights, privacy rights or any other proprietary rights of a third party, provided that Aurora: (a) promptly notifies Company in writing of the claim; and (b) provides Company, at Company’s expense, with all assistance, information and authority reasonably required for the defense of the claim. 8. CONFIDENTIAL INFORMATION 8.1 “Use and Disclosure Restrictions.” A receiving party will not use the disclosing party’s Confidential Information except as necessary for the performance or enforcement of this Agreement, the exercise of any rights under this Agreement or as otherwise expressly provided under this Agreement and will not disclose such Confidential Information to any third party except to those of its Representatives and service providers who have a bona fide need to know such Confidential Information for the performance or enforcement of this Agreement or the exercise of any rights under this Agreement; provided that each such Representative or service provider is bound by a written agreement that contains use and disclosure restrictions consistent with the terms set forth in this Section. Each receiving party will protect the disclosing party’s Confidential Information from unauthorized use and disclosure using efforts at least as protective as the efforts that the receiving party ordinarily uses with respect to its own confidential information of a similar type and in no event less than a reasonable standard of care. 8.2 “Return of Confidential Information.” Each party shall return, destroy or delete Confidential Information of the other party upon written request by the other party. Notwithstanding the foregoing, a party shall not be required to return, destroy or delete Confidential Information of the other party that is required to perform its obligations or exercise its rights under this Agreement, that is contained in automatic computer backups or historical archives, or that must be retained for regulatory, legal, or audit purposes, or in the case of Aurora, for compliance with Aurora’s internal data retention policy. For purposes of this Agreement, “deletion” of information means either deletion or anonymization or de-identification such that the source of such data is not identifiable. 8.3 “Permitted Disclosures.” The provisions of this Section 8 will not restrict either party from disclosing Confidential Information as required by Applicable Laws or the order or other legal requirement of a court, administrative agency, or other governmental body of competent jurisdiction, provided that the party required to make such a disclosure gives reasonable notice to the other party (if legally permitted to do so) to enable it to contest such order or requirement or limit the scope of such request. The party responding to such an order or requirement will only disclose that information that is expressly required by law to be disclosed. 8.4 “Survival.” The provisions of this Section 8 will remain in effect with respect to particular Confidential Information received from the other party during the term of this Agreement and for a period of three (3) years after the expiration or termination of this Agreement or after the destruction or disposal of such Confidential Information, whichever is later; provided, however, that a party’s obligations under this Section 8 with respect to any Confidential Information of the other party that constitutes a trade secret under Applicable Laws shall survive termination of this Agreement for so long as such information continues to be a trade secret under Applicable Laws. 9. LIMITATION OF LIABILITY 9.1 “Exclusion of Damages.” IN NO EVENT WILL AURORA BE LIABLE FOR ANY SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF USE, DATA, BUSINESS OR PROFITS) OR COST OF COVER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE USE, OPERATION OR PERFORMANCE OF THE SERVICES OR THE SERVICE-GENERATED OUTPUT, WHETHER SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE, AND WHETHER OR NOT AURORA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE. 9.2 “Total Liability.” AURORA’S TOTAL AGGREGATE LIABILITY ARISING UNDER THIS AGREEMENT, FROM ALL CAUSES OF ACTION AND ALL THEORIES OF LIABILITY, WILL NOT EXCEED THE TOTAL FEES PAID BY COMPANY IN THE TWELVE (12)-MONTH PERIOD PRECEDING THE CLAIM OR ACTION GIVING RISE TO THE LIABILITY HEREUNDER. 9.3 “Reliance.” Company acknowledges that Aurora has entered into this Agreement in reliance upon the limitations of liability and the disclaimers of damages set forth in this Agreement, and the same form an essential basis of the bargain between the parties. The parties agree that the limitations and exclusions of liability and disclaimers specified in this Agreement will survive and apply even if found to have failed of their essential purpose. 10. TERM AND TERMINATION 10.1 “Agreement Term.” This Agreement commences on the Effective Date and unless terminated earlier by either party in accordance with the terms of this Agreement, will continue for the term specified in the applicable Order. The Subscription Term of each subscription shall be as specified in the applicable Order. Except as otherwise specified in an Order, each subscription will automatically renew for a Renewal Term under the terms of the expiring Order (subject to any applicable Permitted Change), unless either party gives the other notice of non-renewal at least thirty (30) days before the end of the Current Term or unless Company and Aurora execute a new Order for the renewal. 10.2 “Termination for Breach.” Either party will have the right to terminate this Agreement upon written notice to the other party if the other party breaches any material term of this Agreement and, if such breach is capable of cure, fails to cure such breach within thirty (30) days after written notice thereof; provided that the cure period for any default with respect to payment shall be five (5) business days. For the avoidance of doubt, violations of Section 2.3 are breaches that are not capable of cure. 10.3 “Effect of Termination.” Upon the expiration or termination of this Agreement: (a) Company’s and its Authorized Users’ right to access and use the Services will immediately terminate and Company and its Authorized Users will immediately cease all use of the Services; and (b) Company will promptly destroy or return to Aurora all of Aurora’s Confidential Information in Company's possession or under Company's control. Subject to the obligations of Section 8, Aurora may, but is not required to: (i) retain Company Data after termination or expiration of this Agreement for the purpose of facilitating Company’s reengagement of the Services and for the purposes specified in Section 4.2(b)-(d) or (ii) delete, destroy or otherwise dispose of any Company Data in its possession in accordance with Aurora’s internal data retention policy. 10.1 “Survival.” The rights and obligations of the parties contained in Sections 1, 2.3, 2.4, 3, 4, 5, 7, 8, 9, 10.3, 10.4, 11 and 13 will survive the expiration or termination of this Agreement. 11. PUBLICITY ”Company agrees that Aurora may identify Company as a customer, and display Company’s name, logo (if any), city, state, country and website address in connection with such identification, on Aurora’s website and in other online and offline marketing materials. Aurora will use good-faith efforts to comply with any reasonable trademark usage guidelines Company provides to Aurora in connection with Company’s name and logo. Upon request, Aurora will provide specimens of such identification. Any goodwill arising from the use of Company’s name, logo or other trademarks shall inure to Company, the owner. 12. THIRD PARTY MATERIALS 12.1 “Third Party Materials.” Aurora is not responsible for and does not in any way endorse any Third-Party Materials. Any exchange of data or other interaction between Company and Third-Party Materials is solely between customer and the operator of such Third-Party Materials and is governed by such operator’s terms and conditions for the Third-Party Materials. If Company does not agree to abide by the terms and conditions for any such Third-Party Materials, then Company should not install or use such Third-Party Materials. 12.2 “12.2 Map Providers.” Without limiting the generality of Section 12.1, Aurora uses content from certain third-party map providers ("Map Providers") to provide the Services. The following links provide information on the Map Provider’s terms and conditions and policies with which the parties must comply. By using the Services or agreeing to be bound by this Agreement, you agree to be bound by the following Map Provider terms: Google Maps/Google Earth Additional Terms of Service (https://www.google.com/help/terms_maps.html); Google Privacy Policy (https://www.google.com/intl/ALL/policies/privacy/index.html); and Microsoft Bing Maps and Embedded Maps Service Terms of Use (https://www.microsoft.com/en-us/maps/product/enduserterms) or as those links and/or terms and conditions and policies are updated from time to time. 13. GENERAL 13.1 “Applicability of Agreement.” This Agreement applies to all Services provided by Aurora to Company, whether on a Fee basis or on a free trial, evaluation or similar basis. 13.2 “Governing Law; Venue.” This Agreement will be governed by and construed in accordance with the laws of the State of California, without regard to or application of conflict of laws rules or principles, and the parties submit to the exclusive jurisdiction of the courts located in San Francisco, California. The United Nations Convention on Contracts for the International Sale of Goods will not apply. 13.3 “Assignment; Successors and Assigns.” Neither party may assign or transfer this Agreement or any rights granted hereunder, by operation of law or otherwise, without the other party’s prior written consent, except that Aurora may assign or transfer this Agreement, without the Company’s consent, to an affiliated company or to a successor or acquirer, as the case may be, in connection with a merger or acquisition or the sale of all or substantially all of Aurora’s assets, provided that Aurora must provide notice to Company of the assignment. Any attempt to assign or transfer this Agreement without such consent will be void. Subject to the foregoing, this Agreement will bind and benefit the parties and their respective successors and assigns. 13.4 “Notices.” Aurora shall communicate announcements of general interest by email or by posting on its website or in the console for the Services. All legal notices or approvals required under this Agreement will be in writing and delivered by confirmed electronic mail, by overnight delivery service, or by certified mail, and in each instance will be deemed given upon receipt or, in the case of email delivery, upon confirmation. Aurora’s email address for legal notices is legal@aurorasolar.com and its physical address for legal notices is Aurora Solar Inc., P.O. Box 7775, PMB 14534, San Francisco, CA 94120-7775 (or such other address as may be specified by Aurora to Company in accordance with this Section); provided that Company shall email to legal@aurorasolar.com a copy of any legal notice that is sent to Aurora’s physical address. Company’s email address(es) and physical address for legal notices will be those set forth in Company’s Account. 13.5 “Remedies; Waiver; Severability.” Except as expressly set forth in this Agreement, the exercise by either party of any of its remedies under this Agreement will be without prejudice to its other remedies under this Agreement or otherwise. The failure by either party to enforce any provision of this Agreement will not constitute a waiver of future enforcement of that or any other provision. If any provision of this Agreement is held to be unenforceable or invalid, that provision will be enforced to the maximum extent possible, and the other provisions will remain in full force and effect. 13.6 “Force Majeure.” Aurora shall not be liable for any failure or delay in performing its obligations under this Agreement, or for any alleged loss or damages resulting from failure or delay to perform, due to natural disasters, power outages, denial of service attacks, weather, strikes, riots, war, governmental action or other reasons beyond Aurora’s reasonable control. 13.7 “Entire Agreement.” This Agreement (including all Orders and any exhibits attached to this Agreement or the applicable Order(s) and, with respect to Account Data, Aurora’s privacy policy) is the complete and exclusive understanding and agreement between the parties regarding its subject matter, and supersedes all prior and contemporaneous agreements, proposals, understandings or communications between the parties, oral or written, regarding its subject matter. Any terms accepted by Company’s Authorized Users through the Platform are superseded by this Agreement. Any terms or conditions contained in Company’s purchase order or any other ordering document (other than Aurora’s Order) are void. In case of inconsistency between this Agreement and any other policy or statement on Aurora’s website or materials, this Agreement will control. In case of inconsistency between the Order and this Agreement, this Agreement will control. 13.8 “Modification.” We may update this Agreement from time to time. If we do, we will let you know by posting the updated Agreement on our website and we may notify you by another method. It’s important that you review this Agreement whenever we update it and whenever you use the Services. If you continue to access and/or use the Services after we have posted an updated Agreement, it means that you accept and agree to the modifications. 13.9 “Independent Contractors.” The parties to this Agreement are independent contractors and this Agreement will not establish any relationship of partnership, joint venture, employment, franchise, or agency between the parties. Neither party will have the power to bind the other or incur obligations on the other’s behalf. If you have any questions or concerns about this agreement, please contact us at: support@aurorasolar.com Last updated on: July 11, 2024 ### Contact Sales ### New Helioscope Recorded Demo ### New Recorded Demo ### The Commercial Solar Starter Bundle ### Solarcon 2024 Booth Party ### Partners - Sun set in sept ### Empower 2024 ### Sunrun Integration ### Eagleview Partnership ### Sunrise 2024 ### Solar Sales Proposal Demo ### Aurora vs. Solar Proposal Software ### Empower 2023 ### Aurora for Channel Managers ### Aurora for Sales Teams ### SalesRabbit 2023 ### Empower Tampa Happy Hour ### Empower Atlanta Happy Hour ### Empower NYC Happy Hour ### Community Partnerships at Aurora ### Aurora for Installers ### Chat Do you wish to talk to one of our Agents? If so, please follow the widget at the bottom of the page and one of our Agents will be with you shortly! Are we outside operating hours or is no one avaliable at this time? Please follow this link to check out our Help Center! ### [Redirect] - SPW July 23 Plan Sets ### [Redirect] SPW Battery Storage ### Sell Battery Storage Under NEM 3.0 ### Financing Integrations ### Sell Battery Storage ### Sunrise 2023 ### Navigating NEM 3.0 with Aurora ### The Ultimate Commercial Solar Bundle ### The Ultimate Solar Sales Bundle ### The Ultimate Solar Leadership Bundle ### Recorded Demo ### Thanks for registering - Empower 2022 ### Thank You for Meeting ### Empower 2022 ### Empower 2022 Agenda ### Plan Sets ### Press Kit ### Careers ### Privacy Policy Aurora Solar Privacy Policy Last Updated: January 14, 2025 This Privacy Policy is designed to help you understand how Aurora Solar Inc.("Aurora Solar," "Company", "we," "us," or"our") collects, uses, processes, and shares your personal information, and to help you understand and exercise your privacy rights. If you need to access this Policy in an alternative format due to having a disability, please contact privacy@aurorasolar.com . Notice at Collection At or before the time of collection, California residents have a right to receive notice of Aurora Solar's privacy practices, including the categories of personal information to be collected, the purposes for which such information is collected or used, whether such information is "sold" or "shared" and how to opt-out of such uses, and how long such information is retained. Privacy Policy Table of Contents SCOPE AND UPDATES TO THIS PRIVACY POLICY PERSONAL INFORMATION WE COLLECT HOW WE USE YOUR PERSONAL INFORMATION HOW WE DISCLOSE YOUR PERSONAL INFORMATION YOUR PRIVACY CHOICES AND RIGHTS INTERNATIONAL DATA TRANSFERS DATA PRIVACY FRAMEWORK Under certain conditions, as more fully described in Pre-Arbitration Requirements of Annex I of the DPF Principles, you may invoke binding arbitration for complaints regarding DPF compliance not resolved by any of the other DPF mechanisms. RETENTION OF PERSONAL INFORMATION SUPPLEMENTAL NOTICE FOR CALIFORNIA RESIDENTS SUPPLEMENTAL NOTICE FOR NEVADA RESIDENTS CHILDREN'S INFORMATION OTHER PROVISIONS, INCLUDING FOR EU/UK CITIZENS CONTACT US 1. SCOPE AND UPDATES TO THIS PRIVACY POLICY This Privacy Policy applies to personal information processed by us, including on our websites, and other online or offline offerings. To make this Privacy Policy easier to read, our websites, and other offerings are collectively called the "Services." An Important Note : This Privacy Policy does not apply to any of the personal information that we process on behalf of our customers through their use of Company's Services ("Customer Data"). Our customers' respective privacy policies govern their collection and use of Customer Data. Our processing of Customer Data is governed by the contracts that we have in place with our customers, not this Privacy Policy. Any questions or requests relating to Customer Data should be directed to our customer.   Changes to our Privacy Policy. We may revise this Privacy Policy from time to time in our sole discretion. If there are any material changes to this Privacy Policy, we will notify you as required by applicable law. You understand and agree that you will be deemed to have accepted the updated Privacy Policy if you continue to use our Services after the new Privacy Policy takes effect. 2. PERSONAL INFORMATION WE COLLECT The categories of personal information we collect depend on how you interact with us, our Services, and the requirements of applicable law. We collect information that you provide to us, information we obtain automatically when you use our Services, and information from other sources such as third-party services and organizations, as described below. A. Personal Information You Provide to Us Directly We may collect personal information that you provide to us. Account Creation. We may collect personal information when you create an account, such as name, username, email address, password, etc. Purchases. We may collect personal information and details associated with your purchases, including payment information. Any payments made via our Services are processed by third-party payment processors. We do not directly collect or store any payment card information entered through our Services, but we may receive information associated with your payment card information (for example, your billing details). Your Communications with Us. We may collect personal information, such as email address, phone number, or mailing address when you request information about our Services, register for our newsletter,request customer or technical support, or otherwise communicate with us. Surveys. We may contact you to participate in surveys. If you decide to participate, we may collect personal information from you in connection with the survey. Interactive Features. We and others who use our Services may collect personal information that you submit or makeavailable through our interactive features (for example, messaging and chat features, commenting functionalities, forums, blogs, and social media pages). Any information you provide using the public sharing features of the Services will be considered "public," unless otherwise required by applicable law, and is not subject to the privacy protections referenced herein. Lead Capture AI. We may collect personal information you provide when you submit your information to our lead engagement form on an Aurora Solar customer's website, including your address and the information you provide about your monthly utility bill. Sweepstakes or Contests. We may collect personal information you provide for any sweepstakes or contests that we offer. In some jurisdictions, we are required to publicly share information of sweepstakes and contest winners. Conferences, Trade Shows, and Other Events. We may collect personal information from individuals when we attend or host conferences, trade shows, and other events. Business Development and Strategic Partnerships. We may collect personal information from individuals and third parties to assess and pursue potential business opportunities. Job Applications. We may post job openings and opportunities on our Services. If you respond to one of these postings, we may collect your personal information, such as your application, CV, cover letter, and/or any other information you provide to us. B. Personal Information Collected Automatically We may collect personal information automatically when you use our Services. Automatic Collection of Personal Information. We may collect certain information automatically when you use our Services, such as your Internet protocol (IP) address, user settings, MAC address, cookie identifiers, mobile carrier, mobile advertising and other unique identifiers, browser or device information, location information (including approximate location derived from IP address), and Internet service provider. We may also automatically collect information regarding your use of our Services, such as pages that you visit before, during and after using our Services, information about the links you click, the types of content you interact with, the frequency and duration of your activities, and other information about how you use our Services. Cookie Policy (and Other Technologies). We, as well as third parties that provide content, advertising, or other functionality on our Services, may use cookies, pixel tags, and other technologies ("Technologies") to automatically collect information through your use of our Services. Our uses of these Technologies fall into the following general categories: Operationally Necessary. This includes Technologies that allow you access to our Services, applications, and tools that are required to identify irregular website behavior, prevent fraudulent activity, improve security, or allow you to make use of our functionality; Performance-Related. We may use Technologies to assess the performance of our Services, including as part of our analytic practices to help us understand how individuals use our Services (see Analytics below); Functionality-Related. We may use Technologies that allow us to offer you enhanced functionality when accessing or using our Services. This may include identifying you when you sign into our Services or keeping track of your specified preferences, interests, or past items viewed; Advertising- or Targeting-Related. We may use first party or third-party Technologies to deliver content, including ads relevant to your interests, on our Services or on third-party digital properties. See "Your Privacy Choices and Rights" below to understand your choices regarding these Technologies. C. Personal Information Collected from Other Sources Third-Party Services and Sources. We may obtain personal information about you from other sources, including through third-party services and organizations, such as our marketing partners with whom we have entered into joint marketing relationships. Also, for example, if you access our Services through a third-party application, such as a third-party login service or a social networking site, we may collect personal information about you from that third-party application that you have made available via your privacy settings. 3. HOW WE USE YOUR PERSONAL INFORMATION We use your personal information for a variety of business purposes, including to provide our Services, for administrative purposes, and to market our products and Services, as described below. A. Provide Our Services We use your information to fulfil our contract with you and provide you with our Services, such as: Managing your information and accounts; Providing access to certain areas, functionalities, and features of our Services; Answering requests for customer or technical support; Communicating with you about your account, activities on our Services,and policy changes; Processing your financial information and other payment methods for products or Services purchased; Processing applications if you apply for a job we post on our Services; and Allowing you to register for events. B. Administrative Purposes We use your information for various administrative purposes, such as: Pursuing our legitimate interests such as direct marketing, research and development (including marketing research), network and information security, and fraud prevention; Detecting security incidents, protecting against malicious, deceptive, fraudulent or illegal activity, and prosecuting those responsible for that activity; Measuring interest and engagement in our Services; Short-term, transient use, such as contextual customization of ads; Improving, upgrading, or enhancing our Services; Carrying out analytics; Developing new products and services; Ensuring internal quality control and safety; Authenticating and verifying individual identities, including requests to exercise your rights under this Privacy Policy; Debugging to identify and repair errors with our Services; Auditing relating to interactions, transactions, and other compliance activities; Sharing personal information with third parties as needed to provide the Services; Enforcing our agreements and policies; and Carrying out activities that are required to comply with our legal obligations. C. Marketing and Advertising our Products and Services We may use personal information to tailor and provide you with content and advertisements. We may provide you with these materials as permitted by applicable law. Some of the ways we market to you include email campaigns, SMS messaging campaigns, custom audiences advertising, and "interest-based" or "personalized advertising" or "targeted advertising" that may be done through cross-device tracking. If you have any questions about our marketing practices, you may contact us at any time as set forth in "Contact Us" below. D. Other Purposes We also use your personal information for other purposes as requested by you or as permitted by applicable law. With Your Consent. We may use personal information for other purposes that are clearly disclosed to you at the time you provide personal information or with your consent. De-identified and Aggregated Information. We may use personal information to create de-identified and/or aggregated information, such as demographic information, information about the device from which you access our Services, or other analyses we create. 4. HOW WE DISCLOSE YOUR PERSONAL INFORMATION We disclose your personal information to third parties for a variety of business purposes, including to provide our Services, to protect us or others, or in the event of a major business transaction such as a merger, sale, or asset transfer, as described below. A. Disclosures to Provide our Services The categories of third parties with whom we may share your personal information are described below. Service Providers. We may share your personal information with our third-party service providers and vendors that assist us with the provision of our Services. This includes service providers and vendors that provide us with IT support, hosting, payment processing, customer service, legal/auditing services and related services. Google Analytics.For more information about how Google uses your personal information (including for its own purposes, for example, for profiling or linking it to other data), please visit Google Analytics' Privacy Policy . To learn more about how to opt-out of Google Analytics' use of your information, please click here . Business Partners. We may share your personal information with business partners to provide you with a product or service you have requested, such as through our Lead Capture AI. We may also share your personal information with business partners with whom we jointly offer products or services. Affiliates. We may share your personal information with our company affiliates. Other Users or Third Parties You Share or Interact With. As described above in "Personal Information We Collect," our Services may allow you to share personal information or interact with our customers through other applications. Aurora Solar Customer. In cases where you use our Services as an employee, contractor, or other authorized user of an Aurora Solar customer, that customer may access information associated with your use of the Services including usage data and the contents of the communications and files associated with your account. Your personal information may also be subject to Aurora Solar's customer's privacy policy. We are not responsible for the Aurora Solar's customer's processing of your personal information. Advertising Partners. We may share your personal information with third-party advertising partners. These third-party advertising partners may set Technologies and other tracking tools on our Services to collect information regarding your activities and your device (for example, your IP address, cookie identifiers, page(s) visited, location, time of day). These advertising partners may use this information (and similar information collected from other services) for purposes of delivering personalized advertisements to you when you visit digital properties within their networks. This practice is commonly referred to as "interest-based advertising", "targeted advertising," "personalized advertising, or cross-context behavioral advertising." Facebook Connect. For more information about Facebook's use of your personal information, please visit Facebook's Data Policy. To learn more about how to opt-out of Facebook's use of your information, please click here while logged in to your Facebook account. APIs/SDKs. We may use third-party application program interfaces ("APIs") and software development kits ("SDKs") as part of the functionality of our Services. SDKs typically collect your mobile device identifier and information related to your use of the Services. SDKs may allow third parties including analytics and advertising partners to collect your information for various purposes including to provide analytics services and personalized advertising. For more information about our use of APIs and SDKs, please contact us as set forth in "Contact Us"below.   Disclosures to Protect Us or Others We may access, preserve, and disclose any information we store associated with you to external parties if we, in good faith, believe doing so is required or appropriate to: comply with law enforcement or national security requests and legal process, such as a court order or subpoena; protect your, our, or others' rights, property, or safety; enforce our policies or contracts; collect amounts owed to us; or assist with an investigation or prosecution of suspected or actual illegal activity.   Disclosure in the Event of Merger, Sale, or Other Asset Transfers If we are involved in a merger, acquisition, financing due diligence, reorganization, bankruptcy, receivership, purchase or sale of assets, or transition of service to another provider, your information may be sold or transferred as part of such a transaction, as permitted by law and/or contract.   YOUR PRIVACY CHOICES AND RIGHTS   Your Privacy Choices. The privacy choices you may have about your personal information are determined by applicable law and are described below. Email Communications. If you receive an unwanted email from us, you can use the unsubscribe link found at the bottom of the email to opt out of receiving future emails. Note that you will continue to receive transaction-related emails regarding products or Services you have requested. We may also send you certain non-promotional communications regarding us and our Services, and you will not be able to opt out of those communications (for example, communications regarding our Services or updates to our Terms or this Privacy Policy). Text Messages.If you receive an unwanted text message from us, you may opt out of receiving future text messages from us by following the instructions which may be available in the text message you have received from us or by otherwise contacting us as set forth in "Contact Us" below. Phone Calls. If you receive an unwanted phone call from us, you may opt out of receiving future phone calls from us by following the instructions which may be available on the call or by otherwise contacting us as set forth in "Contact Us" below. "Do Not Track. " Do Not Track ("DNT") is a privacy preference that users can set in certain web browsers. Please note that we do not respond to or honor DNT signals or similar mechanisms transmitted by web browsers. Cookies and Personalized Advertising. You may stop or restrict the placement of Technologies on your device or remove them by adjusting your preferences as your browser or device permits. However, if you adjust your preferences, our Services may not work properly. The online advertising industry also provides websites from which you may opt out of receiving targeted ads from data partners and other advertising partners that participate in self-regulatory programs. You can access these and learn more about targeted advertising and consumer choice and privacy by visiting the Network Advertising Initiative , the Digital Advertising Alliance , the European Digital Advertising Alliance , and the Digital Advertising Alliance of Canada . Please note you must separately opt out in each browser and on each device. Your Privacy Rights. In accordance with applicable law, you may have the right to: Confirm Whether We Are Processing Your Personal Information (the right to know); Access to and Portability of Your Personal Information, including: (i) obtaining access to or a copy of your personal information; and (ii) receiving an electronic copy of personal information that you have provided to us, or asking us to send that information to another company in a structured, commonly used, and machine readable format (also known as the "right of data portability"); Request Correction of your personal information where it is inaccurate or incomplete. In some cases, we may provide self-service tools that enable you to update your personal information; Request Deletion of your personal information; Request to Opt-Out of Certain Processing Activities including, as applicable, if we process your personal information for "targeted advertising" (as "targeted advertising" is defined by applicable privacy laws), if we "sell" your personal information (as "sell" is defined by applicable privacy laws), or if we engage in "profiling" in furtherance of certain "decisions that produce legal or similarly significant effects" concerning you (as such terms are defined by applicable privacy laws); Request Restriction of or Object to our processing of your personal information; Withdraw your Consent to our processing of your personal information. Please note that your withdrawal will only take effect for future processing, and will not affect the lawfulness of processing before the withdrawal; and Appeal our Decision to decline to process your request. If you would like to exercise any of these rights, please contact us as set forth in "Contact Us"below. We will process such requests in accordance with applicable laws. If applicable laws grant you an appeal right and you would like to appeal our decision with respect to your request, you may do so by informing us of this and providing us with information supporting your appeal.   INTERNATIONAL DATA TRANSFERS All information processed by us may be transferred, processed, and stored anywhere in the world, including, but not limited to, the United States or other countries, which may have data protection laws that are different from the laws where you live. We endeavor to safeguard your information consistent with the requirements of applicable laws. If we transfer personal information which originates in the European Economic Area, Switzerland, and/or the United Kingdom to a country that has not been found to provide an adequate level of protection under applicable data protection laws, one of the safeguards we may use to support such transfer is the EU Standard Contractual Clauses . For more information about the safeguards we use for international transfers of your personal information, please contact us as set forth below.   DATA PRIVACY FRAMEWORK   Aurora Solar complies with the EU-U.S. Data Privacy Framework ("EU-U.S. DPF"), the UK Extension to the EU-U.S. DPF, and the Swiss-U.S. Data Privacy Framework ("Swiss-U.S. DPF") as set forth by the U.S. Department of Commerce. Aurora Solar has certified to the U.S. Department of Commerce that, for transfers of personal information to the U.S., we adhere to: (i) the EU-U.S. Data Privacy Framework Principles with regards to the processing of personal information received from the European Union in reliance on the EU-U.S. DPF and from the United Kingdom (and Gibraltar) in reliance on the UK Extension to the EU-U.S. DPF, and (ii) the Swiss-U.S. DPF with regards to the processing of personal information received from Switzerland in reliance on the Swiss-U.S. DPF (collectively, the "DPF Principles"). If there is any conflict between the terms in this Privacy Policy and applicable DPF Principles, the DPF Principles shall govern. The Federal Trade Commission has jurisdiction over our compliance with the EU-U.S. DPF, the UK Extension to the EU-U.S. DPF, and the Swiss-U.S. DPF (collectively, the "DPF"). To learn more about the DPF and to view our certification, please visit https://www.dataprivacyframework.gov/ . If we receive personal information in the United States that is subject to the DPF Principles and subsequently transfer that personal information to a third party acting as an agent, we will remain liable under the DPF Principles if our agent processes such personal information in a manner inconsistent with the DPF Principles, unless we prove that we are not responsible for the event giving rise to the damage. In accordance with the requirements of the DPF Principles, Aurora Solar allows individuals whose personal information is subject to the DPF Principles the opportunity to choose (opt out) whether their personal information is (i) to be disclosed to a third party or (ii) to be used for a purpose that is materially different from the purpose(s) for which it was originally collected or subsequently authorized by the individuals. Individuals whose personal information is subject to the DPF Principles that wish to exercise these choices may contact us as set forth in "Contact Us" below. Please note that we may be required to disclose your personal information in response to lawful requests by public authorities, including to meet national security or law enforcement requirements. In compliance with the EU-U.S. DPF, the UK Extension to the EU-U.S. DPF, and the Swiss-U.S. DPF, we commit to resolve DPF Principles-related complaints about our collection and use of your personal information. EU, UK, and Swiss individuals with inquiries or complaints regarding our handling of personal information received in reliance on the DPF should first contact us using the contact details provided below. In compliance with the EU-U.S. DPF, the UK Extension to the EU-U.S. DPF, and the Swiss-U.S. DPF, we have further committed to refer unresolved complaints concerning our handling of personal information received in reliance on the EU-U.S. DPF, the UK Extension to the EU-U.S. DPF, and the Swiss-U.S. DPF to International Centre for Dispute Resolution-American Arbitration Association ("ICDR-AAA"), an independent dispute resolution provider located in the U.S. If you do not receive timely acknowledgment of your DPF Principles-related complaint from us, or if we have not addressed your DPF Principles-related complaint to your satisfaction, please visit the ICDR-AAA Data Privacy Framework Program for more information or to file a complaint. The services of ICDR-AAA are provided at no cost to you. Under certain conditions, as more fully described in Pre-Arbitration Requirements of Annex I of the DPF Principles , you may invoke binding arbitration for complaints regarding DPF compliance not resolved by any of the other DPF mechanisms.   RETENTION OF PERSONAL INFORMATION We store the personal information we collect as described in this Privacy Policy for as long as you use our Services, or as necessary to fulfill the purpose(s) for which it was collected, provide our Services, resolve disputes, establish legal defenses, conduct audits, pursue legitimate business purposes, enforce our agreements, and comply with applicable laws. To determine the appropriate retention period for personal information, we may consider applicable legal requirements, the amount, nature, and sensitivity of the personal information, certain risk factors, the purposes for which we process your personal information, and whether we can achieve those purposes through other means.   SUPPLEMENTAL NOTICE FOR CALIFORNIA RESIDENTS This Supplemental Notice for California Residents supplements our Privacy Notice and only applies to our processing of personal information that is subject to the California Consumer Privacy Act of 2018 (as amended from time to time) ("CCPA"). The CCPA provides California residents with the right to know what categories of personal information Aurora Solar has collected about them, whether Aurora Solar disclosed that personal information for a business purpose (e.g., to a service provider), whether Aurora Solar "sold" that personal information, and whether Aurora Solar "shared" that personal information for "cross-context behavioral advertising" in the preceding twelve months. California residents can find this information below:   Category of Personal Information Collected by Aurora Solar Categories of Third Parties Personal Information is Disclosed to for a Business Purpose Categories of Third Parties To Whom Personal Information is Sold and/or Shared Identifiers. Service Providers. Business Partners Affiliates Other Users or Third Parties You Share or Interact With Aurora Solar Customer (Authorized User) Advertising Partners Personal information categories listed in the California Customer Records statute (Cal. Civ. Code § 1798.80(e)) Service Providers N/A Protected classification characteristics under California or federal law Service Providers N/A Commercial information Service Providers Business Partners Affiliates Advertising Partners Internet or other electronic network activity Service Providers Business Partners Affiliates Other Users or Third Parties You Share or Interact With Aurora Solar Customer (Authorized User) Advertising Partners Geolocation data Service Providers Business Partners Affiliates Other Users or Third Parties You Share or Interact With N/A Sensory data N/A N/A Professional or employment-related information Service Providers Affiliates N/A Inferences drawn from other personal information to create a profile about a consumer Service Providers Business Partners Affiliates Other Users or Third Parties You Share or Interact With Advertising Partners The categories of sources from which we collect personal information and our business and commercial purposes for using and disclosing personal information are set forth in "Personal Information We Collect", "How We Use Your Personal Information", and "How We Disclose Your Personal Information" above, respectively. We will retain personal information in accordance with the time periods set forth in "Retention of Personal Information." If applicable from the table above, we "sell" and "share" your personal information to provide you with "cross-context behavioral advertising" about Aurora Solar's products and services and to measure and analyze performance, improve the services we provide, and detect illegal or harmful activities. Additional Privacy Rights for California Residents Opting Out of "Sales" of Personal Information and/or "Sharing" for Cross-Context Behavioral Advertising under the CCPA . California residents have the right to opt out of the "sale" of personal information and the "sharing" of personal information for "cross-context behavioral advertising." California residents may exercise these rights by following the instructions on the cookie banner upon visiting our website, or by clicking here and following the instructions found on the website. Disclosure Regarding Individuals Under the Age of 16. Aurora Solar does not have actual knowledge of any "sale" of personal information of minors under 16 years of age. Aurora Solar does not have actual knowledge of any "sharing" of personal information of minors under 16 years of age for "cross-context behavioral advertising." Disclosure Regarding Sensitive Personal Information. Aurora Solar only uses and discloses sensitive personal information for the following purposes: To perform the Services reasonably expected by an average consumer who requests such Services. To prevent, detect, and investigate security incidents that compromise the availability, authenticity, integrity, and or confidentiality of stored or transmitted personal information. To resist malicious, deceptive, fraudulent, or illegal actions directed at Aurora Solar and to prosecute those responsible for those actions. To ensure the physical safety of natural persons. For short-term, transient use. To verify or maintain the quality or safety of a product, service, or device that is owned, manufactured, manufactured for, or controlled by Aurora Solar, and to improve, upgrade, or enhance the service or device that is owned, manufactured by, manufactured for, or controlled by Aurora Solar. For purposes that do not infer characteristics about individuals. Non-Discrimination. California residents have the right not to receive discriminatory treatment by us for the exercise of their rights conferred by the CCPA. Authorized Agent. Only you, or someone legally authorized to act on your behalf, may make a verifiable consumer request related to your personal information. You may also make a verifiable consumer request on behalf of your minor child. To authorize an agent, provide written authorization signed by you and your designated agent and contact us as set forth in "Contact Us" below for additional instructions. Verification. To protect your privacy, we will take steps to reasonably verify your identity before fulfilling requests submitted under the CCPA. These steps may involve asking you to provide sufficient information that allows us to reasonably verify you are the person about whom we collected personal information or an authorized representative. Examples of our verification process may include asking you to provide the email address we have associated with you, opening a link sent to the contact information provided, and following the instructions on the website you are taken to. If you are a California resident and would like to exercise any of your rights under the CCPA, please contact us as set forth in "Contact Us" below. We will process such requests in accordance with applicable laws.   SUPPLEMENTAL NOTICE FOR NEVADA RESIDENTS If you are a resident of Nevada, you have the right to opt-out of the sale of certain personal information to third parties who intend to license or sell that personal information. Please note that we do not currently sell your personal information as sales are defined in Nevada Revised Statutes Chapter 603A. If you have any questions, please contact us as set forth in Contact Us below.   CHILDREN'S INFORMATION The Services are not directed to children under 16 (or other age as required by local law), and we do not knowingly collect personal information from children.   OTHER PROVISIONS, INCLUDING FOR EU/UK CITIZENS   Sensitive Personal Information. We do not generally require you to disclose any sensitive personal information (for example, details of race, religious belief, sexual orientation, or membership of a trade union) to us. If you do provide us with sensitive personal information for any reason, you consent to us collecting that information and then using and disclosing that information for the purpose for which you disclosed it to us.   Third-Party Websites/Applications/Services. The Services may contain links to other websites/applications and other websites/applications may reference or link to our Services or the Services may allow you to interact with third-party services. For example, our Services may allow solar professionals or their clients to access online services that offer financing for solar projects. These third-party services are not controlled by us. We encourage our users to read the privacy policies of each website and application with which they interact. We do not endorse, screen, or approve, and are not responsible for the third party's actions or omissions, including but not limited to their privacy practices, content of such other websites or applications, and errors or bugs in their software. Providing personal information to third-party websites or applications is at your own risk.   Our Lawful Basis for Processing Personal Information. If your personal information is subject to the EU General Data Protection Regulation or other related legislation, our processing of your personal information is supported by the following lawful bases:   Lawful Basis: Performance of a Contract (i.e., to Provide Our Services to You) Lawful Basis: Legitimate Interest Lawful Basis: Consent Lawful Basis: For Compliance with Legal Obligations To Provide the Services or Information Requested ✔ ✔ ✔ To Measure Performance and Carry Out Research ✔ ✔ For Customer Support ✔ ✔ ✔ ✔ For Advertising Purposes ✔ ✔ For Administrative or Legal Purposes ✔ ✔ ✔   Supervisory Authority. If your personal information is subject to the applicable data protection laws of the European Economic Area, Switzerland, or the United Kingdom, you have the right to lodge a complaint with the competent supervisory authority or attorney general if you believe our processing of your personal information violates applicable law.   EEA Data Protection Authorities (DPAs) Swiss Federal Data Protection and Information Commissioner (FDPIC) UK Information Commissioner's Office (ICO)   CONTACT US Aurora Solar is the controller of the personal information we process under this Privacy Policy. If you have any questions about our privacy practices or this Privacy Policy, need to access this Policy in an alternative format due to having a disability, or to exercise your rights as detailed in this Privacy Policy, please contact us at: Aurora Solar Inc. P.O. Box 7775 PMB 14534 San Francisco, CA 94120-7775 USA privacy@aurorasolar.com ### Terms of Use AURORA SOLAR TERMS OF USE PLEASE READ THE FOLLOWING TERMS AND CONDITIONS AND OUR PRIVACY POLICY CAREFULLY BEFORE ACCESSING AND USING THE SUBSCRIPTION SERVICES (DEFINED BELOW). THESE TERMS OF USE (“TERMS”) AND THE SERVICE ORDER(S) (COLLECTIVELY, “AGREEMENT”) GOVERN YOUR ACCESS AND USE OF THE SUBSCRIPTION SERVICES UNLESS YOU (“YOU”, “YOUR” OR “COMPANY”) AND AURORA SOLAR INC. (“AURORA SOLAR”, “WE”, “US” OR “OUR”) HAVE EXECUTED A SEPARATE AGREEMENT GOVERNING THE ACCESS AND USE OF THE SUBSCRIPTION SERVICES. Aurora Solar is willing to provide the Subscription Services to you, on a software as a service basis, only upon the condition that you accept all the terms contained in this Agreement. By clicking on the checkbox marked “Accept Terms” on the registration, log-in or similar page or by accessing or using the Subscription Services, you have indicated that you understand this Agreement, and you accept all of, and agree to be bound by, the terms of this Agreement, including these Terms. If the Subscription Services are to be accessed or used by or on behalf of a company or other legal entity, the individual expressing acceptance of this Agreement represents and warrants that he or she has the authority to bind that company or other legal entity to this Agreement, and “you”, “your” and “Company” will refer to that company or other legal entity. If you do not agree to all the terms of this Agreement, then you must not accept this Agreement and you may not use the Subscription Services. We may update these Terms from time to time in our sole discretion. If we do, we will let you know by posting the updated Terms on our website and/or may also send other communications. It’s important that you review these Terms whenever we update them or you use the Subscription Services. If you continue to access and/or use the Subscription Services after we have posted updated Terms it means that you accept and agree to the changes. Because the Subscription Services are evolving over time, we may modify features within the Subscription Services and/or update the Subscription Services from time to time, without prior notice to Company. DEFINITIONS 1.1 “Customer Data” means all data and information provided, input, submitted or made available by or through you or Authorized Users (defined below) to the Subscription Services. 1.2 “Intellectual Property Rights” means patent rights (including, without limitation, patent applications and disclosures), copyrights, trade secrets, moral rights, know-how and any other intellectual property rights recognized in any country or jurisdiction in the world. 1.3 “Person” means any individual, corporation, partnership, trust, limited liability company, association, governmental authority or other entity. 1.4 “Project” means a location or address for which you initiate creating a solar installation, sale proposal(s), site model(s), or Design(s) via the Subscription Services. The location or address of a Project needs not be unique and it is possible for multiple Projects to exist for a given location. A new Project can be initiated by an Authorized User (e.g. by clicking ‘Create Project’, ‘Copy Project’ or performing a similar action, in the application), or programmatically (e.g. via an API). For the purpose of this definition, “Design” means a site model and/or solar configuration that belongs to a specific Project. It is possible for multiple Designs to exist for a given Project. 1.5 “Service Order” means the online order form that describes the Subscription Services to be provided and sets forth fee schedule and other relevant terms. Each Service Order will form part of this Agreement and will be subject to the terms and conditions contained herein. 1.6 “Service-Generated Output” means any reports, drawings, images, documentation or other files or data that are generated by or through the Subscription Services and provided by or made available by Aurora Solar to you. 1.7 “Subscription Services” means Aurora Solar’s cloud-based solar installation design software and any and all related content, tools and other materials provided by or made available by Aurora Solar to you. SUBSCRIPTION SERVICES 2.1 Account and Authorized Users. In order to access and use the Subscription Services, you will need to register with Aurora Solar and create an account (“Account”). You may select individuals (employees or independent contractors) to access and use the Subscription Services on your behalf via your Account and you will obtain separate credentials, e.g., user IDs and passwords, from Aurora Solar for such individuals (each, an “Authorized User”). Aurora Solar reserves the right to suspend or terminate Company’s Account if any information provided during the registration process or thereafter is or becomes inaccurate, false or misleading. Company will ensure that Company’s Authorized Users, employees, agents, and representatives comply with all of Company’s obligations under this Agreement. You will at all times be responsible for all actions taken under Company’s Account, whether such action was taken by an Authorized User or by another Person, and whether such action was authorized by you or an Authorized User. You are responsible for maintaining the confidentiality of Company’s Account, including the logins and passwords for all Company’s Authorized Users. You will not share (and will instruct each Authorized User not to share) any user identifications, Account numbers, login user IDs, passwords, Account profiles or other credentials for Company’s Account with any other Person or otherwise permit any other Person to access or use the Subscription Services. You agree to notify Aurora Solar if any such credentials are lost, stolen, or disclosed to an unauthorized third party, or otherwise may have been compromised. You will promptly notify Aurora Solar of any unauthorized use of or access to the Subscription Services. 2.2 Provision of Subscription Services. Subject to your compliance with the terms and conditions of this Agreement including any payment due, Aurora Solar will provide you with the Subscription Services, and hereby grants you and your Authorized Users a non-exclusive and non-transferable license to: (a) access and use the Subscription Services solely for your internal business purposes and solely by no more than the number of Authorized Users for which you have paid the applicable Fees, and (b) reproduce and distribute to your solar clients or prospective solar clients a reasonable number of copies of Service-Generated Output relating to such client, provided that you do not modify, create derivative works of, publicly display or perform, or remove any identifying legend or marking from such Service-Generated Output. Your rights in the Subscription Services will be limited to those expressly granted in this Section 2.2. Aurora Solar and its licensors reserve all rights in and to the Subscription Services not expressly granted under this Agreement. 2.3 Restrictions. You shall not at any time and will not permit or assist any Person (including, without limitation, Authorized Users) to, directly or indirectly: (i) access or use the Subscription Services in any manner beyond the scope of rights expressly granted in this Agreement; (ii) copy, modify, distribute or create derivative works of the Subscription Services, in whole or in part, except as expressly permitted for Service-Generated Output in Section 2.2 above; (iii) reverse engineer, disassemble, decompile, decode, or otherwise attempt to derive or gain improper access to any component of, the Subscription Services, in whole or in part, or any systems or networks that connect thereto; (iv) frame, mirror, sell, resell, rent, lease, license, sublicense, or provide access to the Subscription Services to any other Person, or otherwise transfer any of your rights hereunder or allow any Person to access or use the Subscription Services for any purpose other than for your benefit as intended in, and in accordance with, this Agreement; (v) access or use the Subscription Services in any manner or for any purpose that infringes, misappropriates, or otherwise violates any Intellectual Property Right or other right of any Person, or that violates any applicable law; (vi) interfere with, or disrupt the integrity or performance of, the Subscription Services, or any data or content contained therein or transmitted thereby; (vii) access or search the Subscription Services (or download any data or content contained therein or transmitted thereby) through the use of any engine, software, tool, agent, device or mechanism (including spiders, robots, crawlers or any other similar data mining tools) other than software or Subscription Services features provided by Aurora Solar for use expressly for such purposes; or (viii) use or access (or permit any Person to access or use) the Subscription Services or any other Aurora Solar Confidential Information for purposes of monitoring the availability, performance or functionality of the Subscription Services or for any other benchmarking or competitive purposes, or to develop, commercialize, license or sell (or enable or assist any Person to develop, commercialize, license or sell) any product, service or technology that could, directly or indirectly, compete with the Subscription Services. You shall not allow access to or use of the Subscription Services by anyone other than Authorized Users. 2.4 Acceptable Use Policies. You acknowledge and agree that Aurora Solar does not monitor or police communications or data transmitted through the Subscription Services and that Aurora Solar shall not be responsible for the content of any such communications or transmissions. You and your Authorized Users shall use the Subscription Services exclusively for authorized and legal purposes, consistent with all applicable laws, regulations and the rights of others. You and your Authorized Users shall not use the Subscription Services to transmit any bulk unsolicited commercial communications. You shall keep confidential and not disclose to any third parties, and shall ensure that Authorized Users keep confidential and do not disclose to any third parties, any user identifications, account numbers and account profiles. You acknowledge that the Subscription Services are not designed, intended or authorized for use in hazardous or mission-critical circumstances or for uses requiring fail-safe performance such as the operation of nuclear facilities, aircraft navigation or communications systems, air traffic control systems or weapons control systems, or where failure could lead to death, personal injury or environmental damage. You shall not use, and the above license does not extend to the use of, the Subscription Services for such purposes or under such circumstances. 2.5 Data Maintenance and Backup Procedures. In the event of any loss or corruption of Customer Data, Aurora Solar will use commercially reasonable efforts to restore the lost or corrupted Customer Data from the latest backup of such Customer Data maintained by Aurora Solar’s third party hosted services provider. Aurora Solar will not be responsible for any loss, destruction, alteration, unauthorized disclosure or corruption of Customer Data caused by any third party. AURORA SOLAR’S EFFORTS TO RESTORE LOST OR CORRUPTED CUSTOMER DATA PURSUANT TO THIS SECTION 2.5 WILL CONSTITUTE AURORA SOLAR’S SOLE LIABILITY AND YOUR SOLE AND EXCLUSIVE REMEDY IN THE EVENT OF ANY LOSS OR CORRUPTION OF CUSTOMER DATA IN CONNECTION WITH THE SUBSCRIPTION SERVICES. FEES AND PAYMENT 3.1 Fees. You will pay Aurora Solar the fees set forth in the relevant Service Order in accordance with the terms therein and the terms of this Agreement (“Fees”). The Fees are non-refundable after the money back period as provided by Aurora Solar in the relevant Service Order. Aurora Solar reserves the right to change the Fees or applicable charges and to institute new charges and Fees at the end of a Subscription Term. Except as otherwise provided in the relevant Service Order, you will pay Aurora Solar the minimum monthly fee as set forth in the Service Order for use of up to fifty (50) Projects per Authorized User in the Account (the “Monthly Project Allowance”) for each calendar month following the effective date of the Subscription Term (a “Month”) within five (5) days following the beginning of each Month. If your Subscription Term is longer than one (1) Month, then at the end of each Month except for the last Month of your Subscription Term, the unused portion of the Monthly Project Allowance for such Month may be rolled over for use in the next Month in addition to the Monthly Project Allowance allocated for the next Month, provided that no unused portion of any Monthly Project Allowance may be rolled over from one Subscription Term to another Subscription Term and all unused Projects expire without any refund at the end of each Subscription Term. If your subscription is monthly, i.e. your Subscription Term is one (1) Month, you may not roll over any unused portion of any Monthly Project Allowance and all unused Projects expire without any refund at the end of each Subscription Term. Aurora Solar reserves the right to suspend or terminate Company’s Account for consistently repeated Overage under the Account. An “Overage” means when the total aggregate number of Projects used in a Month under your Account exceeds the Monthly Project Allowance. You agree that consistently repeated Overage is a material breach of this Agreement subject to Section 10.2. 3.2 Payments. Aurora Solar will charge the payment method provided by you for Fees on the applicable payment date, including any applicable taxes. If Aurora Solar cannot charge such payment method for any reason (such as expiration or insufficient funds), you remain responsible for any uncollected amounts, and Aurora Solar will attempt to charge the payment method again as you may update its payment method information. In accordance with local laws, Aurora Solar may update information regarding your payment method if provided such information by your financial institution. All payments due to Aurora Solar must be made in U.S. dollars. Except as expressly set forth in this Agreement, all payments are non-refundable. If you fail to make any payment when due, late charges will accrue at the rate of 1.5% per month or, if lower, the highest rate permitted by applicable law, and Aurora Solar may suspend your access to the Subscription Services until all payments are made in full. You will reimburse Aurora Solar for all reasonable costs and expenses incurred (including reasonable attorneys’ fees) in collecting any late payments or interest. 3.3 Taxes. You are responsible for all sales, use, ad valorem and excise taxes, and any other similar taxes, duties and charges of any kind (other than any taxes imposed on Aurora Solar’s net income) imposed by any federal, state, multinational or local governmental authority on any amount payable by you to Aurora Solar hereunder (“Taxes”). Without limiting the foregoing, in the event that you are required to deduct or withhold any Taxes from the amounts payable to Aurora Solar hereunder, you will pay the applicable additional amount, so that Aurora Solar receives the amounts due to it hereunder in full, as if there were no withholding or deduction. OWNERSHIP. As between Aurora Solar and you, Aurora Solar owns all worldwide right, title and interest in and to the Subscription Services including all Intellectual Property Rights therein. As between you and Aurora Solar, you own all worldwide right, title and interest in and to all Customer Data and Aurora Solar will not obtain any ownership rights or interests in such data. You hereby grant and will grant to Aurora Solar a non-exclusive, royalty-free, worldwide, transferable (in whole or in part), sublicensable (through multiple tiers of sublicenses) license to: (a) use the Customer Data as is reasonably necessary to provide the Subscription Services hereunder for the term of this Agreement and (b) archive and perform analytics on the Customer Data and to distribute, publicly display or perform or otherwise use the results of the same provided such results are in an aggregated form that does not personally identify an individual person, and this license in subsection (b) is irrevocable and perpetual, and (c) to list on its website or in other informational or promotional material your business name (first name and last initial if you are an individual), city, state, country and website address to identify you as an Aurora Solar customer, and this license in subsection (c) shall be perpetual unless and until Aurora Solar receives written notice from you revoking such license under this subsection (c). The parties agree that the use of Company’s name as provided for in subsection (c) and any goodwill arising therefrom shall inure to the owner of such name, and upon written request, Aurora Solar will provide specimens of its usage and take corrective action as reasonably necessary to protect any trademark or other rights therein. To the extent you provide suggestions or feedback to Aurora Solar about its Subscription Services or Service-Generated Output (collectively, “Feedback”), you hereby irrevocably assign and will assign to Aurora Solar all right, title and interest you may have in and to such Feedback, and to the extent such assignment is not valid or complete, you hereby grant and will grant to Aurora Solar an exclusive, royalty-free, fully-paid, transferable (in whole or in part), sublicensable (through multiple tiers of sublicenses), worldwide, irrevocable and perpetual license under all Intellectual Property Rights to use and practice such Feedback in any manner, and irrevocably waive and agree to never assert any claim against Aurora Solar, its directors, officers, shareholders, employees or successors in interest relating to such Feedback. NO WARRANTY; DISCLAIMER. THE SUBSCRIPTION SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTY OF ANY KIND. AURORA SOLAR DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT, AND ANY WARRANTIES ARISING OUT OF COURSE OF DEALING OR USAGE OF TRADE. NO ADVICE OR INFORMATION, WHETHER ORAL OR WRITTEN, OBTAINED FROM AURORA SOLAR OR ELSEWHERE WILL CREATE ANY WARRANTY NOT EXPRESSLY STATED IN THIS AGREEMENT. AURORA SOLAR DISCLAIMS ANY WARRANTY THAT THE SUBSCRIPTION SERVICES WILL BE ERROR-FREE OR UNINTERRUPTED OR THAT ALL ERRORS WILL BE CORRECTED. You assume sole responsibility and liability for results obtained from the use of the Subscription Services (including Service-Generated Output) and for conclusions drawn from such use. Aurora Solar will have no liability for any claims, losses, or damages caused by errors or omissions in any Customer Data provided to Aurora Solar by you or any results or Service-Generated Output produced by the Subscription Services based upon Customer Data. You acknowledge and agree that the results and Service-Generated Output produced by the Subscription Services based upon the processing of Customer Data are estimates only, that Aurora Solar does not guarantee that these estimates will match actual measurements taken at a given site, that Aurora Solar does not guarantee the accuracy of any engineering designs or plan-sets or customer proposals based on the results or Service-Generated Output produced by the Subscription Services, and that the Subscription Services shall not be deemed a substitute for an actual in-person analysis conducted at a given site. Aurora Solar cannot and will not be liable for third-party criminal intrusions into our Subscription Services, despite our efforts to prevent the same. YOUR OBLIGATIONS 6.1 Cooperation and Assistance. As a condition to Aurora Solar’s obligations hereunder, you shall at all times: (a) provide Aurora Solar with good faith cooperation and assistance and make available such information, facilities, personnel and equipment as may be reasonably required by Aurora Solar in order to provide the Subscription Services, including, but not limited to, providing Customer Data, security access, information, and software interfaces to your business applications; (b) provide such personnel assistance and other personnel, as may be reasonably requested by Aurora Solar from time to time; and (c) carry out in a timely manner all other of your responsibilities set forth in this Agreement. 6.2 Enforcement. You will ensure that Authorized Users comply with the terms and conditions of this Agreement. You will promptly notify Aurora Solar of any suspected or alleged breach of this Agreement and will cooperate with Aurora Solar with respect to: (a) any investigation by Aurora Solar of any suspected or alleged breach of this Agreement; or (b) any action by Aurora Solar to enforce the terms and conditions of this Agreement. Aurora Solar may suspend or terminate any Authorized User’s access to the Subscription Services without prior notice to you in the event that Aurora Solar reasonably determines that such Authorized User has breached this Agreement or violated the terms and conditions of any other agreement between Aurora Solar and such Authorized User pursuant to which such Authorized User is permitted to access and use the Subscription Services. You shall be liable for any violation of the terms and conditions of this Agreement by any Authorized User. 6.3 Customer Data Representations. You represent and warrant to Aurora Solar that: (a) you have all rights, power and authority that are necessary for your collection, use and processing of the Customer Data as contemplated by this Agreement; and (b) your use and provision of Customer Data to Aurora Solar pursuant to this Agreement will not breach any agreement between you and any third party or violate any applicable local, state or federal laws, regulations, orders or rules. 6.4 Telecommunications and Internet Services. You acknowledge and agree that you and your Authorized Users’ use of the Subscription Services is dependent upon access to telecommunications and Internet services. You are solely responsible for acquiring and maintaining all telecommunications and Internet services and other hardware and software required to access and use the Subscription Services, including, without limitation, any and all costs, fees, expenses, and taxes of any kind related to the foregoing. Aurora Solar shall not be responsible for any loss or corruption of data, lost communications, or any other loss or damage of any kind arising from any such telecommunications and Internet services. INDEMNIFICATION 7.1 Indemnification by Aurora Solar. Subject to Section 7.6, Aurora Solar shall defend any suit or action brought against you to the extent that it is based upon a third party claim that Aurora Solar, through the Subscription Services as provided by Aurora Solar to you pursuant to this Agreement, has knowingly infringed any U.S. copyright or misappropriated any trade secret, and will pay any costs, damages and reasonable attorneys’ fees attributable to such claim that are awarded in final judgment against or paid in settlement by you. 7.2 Exclusions. Notwithstanding the terms of Section 7.1, Aurora Solar will have no liability for any infringement or misappropriation claim of any kind to the extent that it results from: (a) the combination, operation or use of the Subscription Services with equipment, devices, software or data (including without limitation Customer Data) not supplied by Aurora Solar, if a claim would not have occurred but for such combination, operation or use; or (b) your or an Authorized User’s misuse of the Subscription Services or use of the Subscription Services other than in accordance with this Agreement. 7.3 Injunction. If your use of the Subscription Services is, or in Aurora Solar’s opinion is likely to be, enjoined due to the type of claim specified in Section 7.1, then Aurora Solar may at its sole option and expense: (a) replace or modify the Subscription Services to make them non-infringing and of equivalent functionality; (b) procure for you the right to continue using the Subscription Services under the terms of this Agreement; or (c) if Aurora Solar is unable to accomplish either (a) or (b) despite using its reasonable efforts, terminate your rights and Aurora Solar’s obligation under this Agreement with respect to such Subscription Services and refund to you a pro-rata portion of the fees paid for the remaining term during which you would have had access to the Subscription Services. 7.4 Sole Remedy. THE FOREGOING STATES THE ENTIRE OBLIGATION OF AURORA SOLAR AND ITS LICENSORS WITH RESPECT TO ANY ALLEGED OR ACTUAL INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS BY THE SUBSCRIPTION SERVICES. The parties acknowledge that Aurora Solar has entered into this Agreement in reliance upon the limitations of liability and the disclaimers of damages set forth herein, and that the same form an essential basis of the bargain between the parties. The parties agree that the limitations and exclusions of liability and disclaimers specified in this Agreement will survive and apply even if found to have failed of their essential purpose. 7.5 Indemnification by You. You shall defend Aurora Solar, its officers, directors, shareholders, employees and successors in interest (collectively, “Aurora Solar Indemnitees”), from and against any action or suit brought against an Aurora Solar Indemnitee by a third party in connection with your or an Authorized User’s use of the Subscription Services (other than any claim for which Aurora Solar is responsible under Section 7.1) including but not limited to a claim that the use or provision of Customer Data or your use of the Subscription Services infringe or misappropriate any Intellectual Property Rights or privacy rights of a third party, and will pay any costs, damages and reasonable attorneys’ fees attributable to such claim that are awarded in final judgment against or paid in settlement by Aurora Solar. 7.6 Conditions of Indemnification. As a condition to the parties’ respective obligations under this Section 7, the party seeking indemnification (the “Indemnitee”) will: (i) promptly notify the other party (the “Indemnitor”) of the claim for which it is seeking indemnification; (ii) grant the Indemnitor sole control of the defense and settlement of the claim; and (iii) provide the Indemnitor, at the Indemnitor’s expense, with all assistance, information and authority reasonably required for the defense and settlement of the claim. The Indemnitor will not settle any claim that involves a remedy other than payment without the Indemnitee’s prior written consent, which may not be unreasonably withheld or delayed. The Indemnitee has the right to retain counsel, at its expense, to participate in the defense or settlement of any claim. The Indemnitor will not be liable for any settlement or compromise that the Indemnitee enters into without the Indemnitor’s prior written consent. CONFIDENTIAL INFORMATION 8.1 Definition. “Confidential Information” means any business or technical information disclosed by one party to the other party that: (a) if disclosed in writing, is marked “confidential” or “proprietary” at the time of disclosure; (b) if disclosed orally, is identified as “confidential” or “proprietary” at the time of disclosure, and is summarized in a writing sent by the disclosing party to the receiving party within thirty (30) days after any such disclosure; or (c) under the circumstances, a person exercising reasonable business judgment would understand to be confidential or proprietary. For clarity, Customer Data is your Confidential Information and the Subscription Services are Aurora Solar’s Confidential Information. 8.2 Exclusions. The obligations and restrictions set forth in Section 8.3 will not apply to any information that: (a) is or becomes generally known to the public through no fault of or breach of this Agreement by the receiving party; (b) is rightfully known by the receiving party at the time of disclosure; (c) is independently developed by the receiving party without use of the disclosing party’s Confidential Information; or (d) the receiving party rightfully obtains from a third party who has the right to disclose such information without breach of any confidentiality obligation to the disclosing party. 8.3 Use and Disclosure Restrictions. A receiving party will not use the disclosing party’s Confidential Information except as necessary for the performance or enforcement of this Agreement, the exercise of any rights under this Agreement or reasonable internal business purposes and will not disclose such Confidential Information to any third party except to those of its employees and subcontractors who have a bona fide need to know such Confidential Information for the performance or enforcement of this Agreement, the exercise of any rights under this Agreement or to other fiduciaries with a bona fide need to know for a party’s internal business purposes; provided that each such employee, subcontractor and fiduciary is bound by a written agreement that contains use and disclosure restrictions consistent with the terms set forth in this Section. Each receiving party will protect the disclosing party’s Confidential Information from unauthorized use and disclosure using efforts equivalent to the efforts that the receiving party ordinarily uses with respect to its own confidential information and in no event less than a reasonable standard of care. The provisions of this Section 8.3 will remain in effect during the term of this Agreement and for a period of three (3) years after the expiration or termination of this Agreement or after the destruction or disposal of the other party’s Confidential Information, whichever is later. Please review Aurora Solar’s Privacy Policy, which also governs your use of the Subscription Services, for information on how we collect, use and share your information. 8.4 Permitted Disclosures. The provisions of this Section 8 will not restrict either party from disclosing Confidential Information pursuant to the order or requirement of a court, administrative agency, or other governmental body; provided that the party required to make such a disclosure gives reasonable notice to the other party to enable it to contest such order or requirement or limit the scope of such request. The party responding to such an order or requirement will only disclose that information that is expressly required. LIMITATION OF LIABILITY 9.1 Exclusion of Damages. IN NO EVENT WILL AURORA SOLAR BE LIABLE FOR ANY SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF USE, DATA, BUSINESS OR PROFITS) ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE USE, OPERATION OR PERFORMANCE OF THE SUBSCRIPTION SERVICES OR THE SERVICE-GENERATED OUTPUT, WHETHER SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE, AND WHETHER OR NOT AURORA SOLAR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE. 9.2 Total Liability. AURORA SOLAR’S TOTAL AGGREGATE LIABILITY ARISING UNDER THIS AGREEMENT, FROM ALL CAUSES OF ACTION AND ALL THEORIES OF LIABILITY, WILL NOT EXCEED THE TOTAL FEES PAID BY YOU IN THE TWELVE MONTH PERIOD PRECEDING THE CLAIM OR ACTION GIVING RISE TO THE LIABILITY HEREUNDER. TERM AND TERMINATION 10.1 Agreement Term. This Agreement commences on the date you click on the checkbox marked “Accept Terms” or first access or use the Subscription Services, whichever occurs earlier (“Effective Date”) and, unless terminated earlier by either party in accordance with the terms of this Agreement, will continue for the term specified in the applicable Service Order (the “Initial Term”). For clarity, if the Effective Date is not the first day of a calendar month, the Initial Term shall include the period of Subscription Term set forth in the Service Order plus remainder of the calendar month that the Effective Date falls within and each subsequent Subscription Term shall begin on the first day of a calendar month. This Agreement shall automatically renew for additional periods equal to the expiring term or as otherwise set forth in the Service Order (such additional periods, “Renewal Terms”) unless either party notifies the other in writing of its intent not to renew at least thirty (30) days prior to the end of the then-current term. The Initial Term and Renewal Terms are collectively referred to as the “Term”, and each of the Initial Term and Renewal Terms is referred to as a “Subscription Term”. 10.2 Termination for Breach. Either party will have the right to terminate this Agreement if the other party breaches any material term of this Agreement and fails to cure such breach within thirty (30) days after written notice thereof; provided that notwithstanding the foregoing, the cure period for any default with respect to payment shall be five (5) business days. 10.3 Effect of Termination. Upon the expiration or termination of this Agreement: (a) your and your Authorized Users’ right to access and use the Subscription Services will immediately terminate, and you and your Authorized Users will immediately cease all use of the Subscription Services; and (b) you will promptly destroy or return to Aurora Solar all of its Confidential Information in your possession or control. Aurora Solar may, but is not required to: (i) retain Customer Data after termination or expiration of this Agreement for the purpose of facilitating your reengagement of the Subscription Services, to derive anonymized statistics and/or for other internal business purposes related to the Subscription Services and (ii) destroy or otherwise dispose of any Customer Data in its possession. 10.4 Survival. The rights and obligations of Aurora Solar and you contained in Sections 2.3, 2.4, 2.5, 3, 4, 5, 6.2, 6.3, 7, 8, 9, 10.3, 10.4, 11, 12 and 13, will survive the expiration or termination of this Agreement. 11 FORCE MAJEURE. Neither party shall be liable for any alleged loss or damages resulting from any failure or delay in the performance of its obligations hereunder (except for the payment of money) due to events beyond the reasonable control of such party, which may include without limitation denial-of-service attacks, strikes, riots, insurrection, fires, flood, storm, explosions, natural disasters, power outages, acts of God, war, terrorism, governmental action, labor conditions, earthquakes and material shortages (each a “Force Majeure Event”). Upon the occurrence of a Force Majeure Event, the non-performing party will be excused from any further performance of its obligations effected by the Force Majeure Event for so long as the event continues and such party continues to use commercially reasonable efforts to resume performance. THIRD PARTY TERMS. Aurora Solar uses Google Maps, services provided by Google LLC (“Google”). The following links provide information on Google’s terms and conditions and policies with which the parties must comply. By using the Subscription Services or agreeing to be bound by this Agreement, you agree to be bound by the Google Maps/Google Earth Additional Terms of Service (https://www.google.com/help/terms_maps.html) and Google Privacy Policy (https://www.google.com/intl/ALL/policies/privacy/index.html). GENERAL. This Agreement will be governed by and construed in accordance with the laws of the State of California, without regard to or application of conflict of laws rules or principles, and you submit to the non-exclusive jurisdiction of the courts located in San Francisco County, California. The United Nations Convention on Contracts for the International Sale of Goods will not apply. You may not assign or transfer this Agreement or any rights granted hereunder, by operation of law or otherwise, without Aurora Solar’s prior written consent, and any attempt by you to do so, without such consent, will be void. Aurora Solar may freely assign or transfer this Agreement, in whole or in part, by operation of law or otherwise. Except as expressly set forth in this Agreement, the exercise by either party of any of its remedies under this Agreement will be without prejudice to its other remedies under this Agreement or otherwise. All notices or approvals required or permitted under this Agreement will be in writing and delivered by electronic mail, by overnight delivery service, or by certified mail, and in each instance will be deemed given upon receipt or confirmation where noted, provided that any notices or other communications provided by Aurora Solar under these Terms, including those regarding modifications to these Terms, may be given via email or by posting to the Subscription Services or on our website. Subject to the foregoing, all notices or approvals will be sent to the addresses set forth in the applicable Service Order or to such other address as may be specified by either party to the other in accordance with this Section. The failure by either party to enforce any provision of this Agreement will not constitute a waiver of future enforcement of that or any other provision. If any provision of this Agreement is held to be unenforceable or invalid, that provision will be enforced to the maximum extent possible, and the other provisions will remain in full force and effect. This Agreement (including our Privacy Policy, all Service Orders and documents incorporated by reference) is the complete and exclusive understanding and agreement between the parties regarding its subject matter, and supersedes all prior agreements, proposals, understandings or communications between the parties, oral or written, regarding its subject matter, unless you and Aurora Solar have executed a separate agreement governing use of the Subscription Services. Any terms or conditions contained in your purchase order or other ordering document that are inconsistent with or in addition to the terms and conditions of this Agreement are hereby rejected by Aurora Solar and will be deemed null. In case of inconsistency among these Terms and any other policy or statement on our website, these Terms shall control. The parties to this Agreement are independent contractors and this Agreement will not establish any relationship of partnership, joint venture, employment, franchise, or agency between the parties. Neither party will have the power to bind the other or incur obligations on the other’s behalf without the other’s prior written consent. CONTACT INFORMATION If you have any questions or concerns about this agreement, please contact us at: support@aurorasolar.com Aurora Solar Inc. 434 Brannan Street San Francisco, CA 94107 USA Last updated on: April 30, 2021   ### Cookie Notice Last updated: April 15th, 2025 This Cookie Notice explains how Aurora Solar, Inc. (“Aurora”, “we”, “us” or “our”) uses cookies and similar technologies in connection with our websites that link to this Cookie Notice (collectively, the “Sites”). What are cookies? Cookies are small data files that are placed on your computer or mobile device when you visit a website. Cookies serve different purposes, like helping us understand how a site is being used, letting you navigate between pages efficiently, remembering your preferences and generally improving your browsing experience. Our Sites may use both session cookies (which expire once you close your web browser) and persistent cookies (which stay on your computer or mobile device until you delete them). We use two broad categories of cookies: first party cookies, served directly by us to your computer or mobile device, which we use to recognize your computer or mobile device when it revisits our Sites; and third party cookies, which are served by service providers or business partners on our Sites, and can be used by these parties to recognize your computer or mobile device when it visits other websites for a variety of purposes, including site analytics, advertising and social media features. What types of cookies and similar tracking technologies are used on Aurora’s Sites? Our Sites employ cookies and other tracking technologies in the following categories: Other technologies In addition to cookies, our Sites may use other technologies, such as: Browser Web Storage We may use browser web storage (including via HTML5), also known as locally stored objects (“LSOs”), for similar purposes as cookies. Browser web storage enables the storage of a larger amount of data than cookies. Your web browser may provide functionality to clear your browser web storage. Web Beacons We may also use web beacons (which are also known as pixel tags and clear GIFs) on our Sites and in our HTML formatted emails to track the actions of users on our Sites and interactions with our emails. Unlike cookies, which are stored on the hard drive of your computer or mobile device by a website, pixel tags are embedded invisibly on webpages or within HTML formatted emails. Pixel tags are used to demonstrate that a webpage was accessed or that certain content was viewed, typically to measure the success of our marketing campaigns or engagement with our emails and to compile statistics about usage of the Sites, so that we can manage our content more effectively. Mobile Application Software Development Kits (SDKs) We may use third-party software development kits (“SDKs”) in our mobile applications. A SDK is third-party computer code that may be used for a variety of purposes, including to provide us with analytics regarding the use of our mobile applications, to integrate with social media, add features or functionality to our app, or to facilitate online advertising. SDKs may enable third parties to collect information directly via our App. Your choices Your options for controlling what information cookies and similar technologies collect about you include: Blocking cookies in your browser. Most browsers let you remove or reject cookies. To do this, follow the instructions in your browser settings. Many browsers accept cookies by default until you change your settings. Please note that if you set your browser to disable cookies, the Sites may not work properly. For more information about cookies, including how to see what cookies have been set on your device and how to manage and delete them, visit www.allaboutcookies.org. If you do not accept our cookies, you may experience some inconvenience in your use of our Sites. For example, we may not be able to recognize your computer or mobile device and you may need to log in every time you visit our Sites. Third party opt-out option. You can opt-out of interest-based advertising through some of the third parties listed in the chart above by using the corresponding third party opt-out tool provided in the chart. Industry association opt-outs. You may opt out of receiving interest-based advertising on websites through members of the Network Advertising Initiative by clicking here or the Digital Advertising Alliance by clicking here. You may opt out of receiving targeted advertising in mobile apps through participating members of the Digital Advertising Alliance by installing the AppChoices mobile app, available here, and selecting the user’s choices. Please note that we also may work with companies that offer their own opt-out mechanisms and may not participate in the opt-out mechanisms linked above. Blocking advertising ID use in your mobile settings. Your mobile device settings may provide functionality to limit use of the advertising ID associated with your mobile device for interest-based advertising purposes. If you choose to opt-out of targeted advertisements, you will still see advertisements online but they may not be relevant to you. Even if you do choose to opt out, not all companies that serve online behavioral advertising are included in this list, and so you may still receive some cookies and tailored advertisements from companies that are not listed. California ‘Do Not Sell My Personal Information’ Notice Like many companies, we use services that help deliver interest-based ads to users as described in the Interest-based advertising section above. While we do not “sell” Personal Information in the conventional sense, our use of these services may constitute a “sale” of your Personal Information for purposes of the CCPA. That’s because the advertising partners that provide the services collect information from our users (e.g., the device data and online activity data described above) to help them serve ads more likely to interest you. See the your choices section above for information on opting-out of the use of your information for interest-based advertising. For more information about how we collect, use and share your information, see our Privacy Policy. Changes Information about the cookies we use may be updated from time to time, so please check back on a regular basis for any changes. Questions If you have any questions about this Cookie Notice, please contact us by email at privacy@aurorasolar.com ### The 5 Solar Buyers ### Aurora AI ### Sales Mode ### Design Mode ### Contract Manager ### Product - API ### Expert Design Services ### Homepage ### Pricing ### About Aurora Solar ### Request Demo ### Contact Us ### Blog ### Aurora Solar Welcomes Bob Inglis, Former U.S. Congressman & Executive Director of republicEn.org, as Keynote Speaker for Empower 2025 Empower, the premier virtual gathering for the solar community, returns June 17 to spotlight industry innovation, practical software solutions, and expert insights amid a shifting market. May 13, 2025 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, today announced that Bob Inglis, former U.S. Congressman and Executive Director of republicEn.org, will keynote the sixth annual Empower event on June 17, 2025. A nationally recognized advocate for bipartisan climate action, Inglis will address how smart renewable energy policy can foster innovation, unlock new business opportunities, and drive economic strength. Empower 2025 offers a full day of learning, including a marquee panel, “Navigating Solar’s Policy Future with Clarity and Confidence,” which will leverage recent market research, including key insights from the 2025 Aurora Solar Snapshot, to decode homeowner sentiment and illuminate trends shaping the next phase of solar growth. Panelists will include leading solar industry voices Kristal Hansley, Founder & CEO, WeSolar and Chris Collins, Founder, Ohm Analytics. Empower is open to everyone and features dozens of solar experts as part of its speaker lineup Whether you’re a solar professional seeking to earn NABCEP CEUs, an industry advocate who is passionate about accelerating the clean energy future, or are involved in any other area of solar, Empower has something for everyone To learn more about Empower 2025, view the full agenda, and register for the event, visit https://aurorasolar.com/empower-2025/ About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and help solar businesses grow faster. More than 7,000 of the industry’s top organizations rely on Aurora Solar and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on Inc’s 2024 Fast 5000, TIME’s 2025 Top U.S. GreenTech Companies and the 2025 Top World Greentech Companies 2025; listed on the 2024 Deloitte Fast 500; named to Solar Power World’s 2024 Top Solar Software & Monitoring Products; and, the only climate tech business named to the 2022 Forbes AI 50. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. ### Aurora Solar Snapshot Reveals Growing Confidence, Gen Z Momentum, & Climate-Driven Solar Demand Despite a turbulent year marked by policy shifts & high interest rates, 76% of U.S. homeowners see solar as a good investment — up from just 43% in 2023 — according to Aurora Solar’s third annual Solar Snapshot. March 25, 2025 – SAN FRANCISCO – Aurora Solar, the leading global platform for solar sales and design, today announced its third annual Aurora Solar Snapshot. The report explores key 2025 trends in solar policy, politics, and energy resilience, with a clear message: The solar market is shifting, not stalling. “There’s no question, 2024 was a difficult year for solar. But this year’s Aurora Solar Snapshot shows us just how resilient the industry is,” said Chris Hopper, CEO and co-founder, Aurora Solar. “Faced with high interest rates, policy changes, and other economic headwinds, we found bipartisan support for solar among homeowners and business owners, more financing options focusing on third-party ownership, and increased interest in Inflation Reduction Act (IRA) benefits. This reveals some universal truths: Solar professionals are adaptive and tough, and the future of energy is in solar.” The 2025 Aurora Solar Snapshot offers one of the most complete pictures of the U.S. solar market, backed by data from over 12.5 million Aurora Solar projects plus surveys of 1,000+ solar professionals, 1,000 homeowners, and 500 commercial property owners.  Solar sentiment is rising sharply across generations and political lines, as grid instability and climate change refocus the case for solar. Key findings include: The Value of Solar Investment is Growing Among Property Owners Homeowners increasingly view solar as a smart financial move, with 76% believing it’s a good investment — an impressive increase from just 43% in 2023 Younger generations are especially enthusiastic about solar: 92% of Gen Z and 83% of Millennials think solar is a good investment, compared to 75% of Gen X and 67% of Baby Boomers 47% of commercial property owners view solar as a long-term investment, with 57% citing reduced energy bills as a top motivator for going solar The IRA Continues to Drive Solar Adoption, but Awareness Gaps Persist Overwhelmingly, 86% of homeowners and 74% of businesses do not want the IRA repealed; 70% of solar professionals said their businesses would be negatively impacted if the IRA were repealed 71% of businesses capitalized on IRA benefits, whereas nearly 40% of homeowners admit they still don't know how to take advantage of these incentives Awareness of the IRA surged from 23% in 2024 to 41% in 2025, but a majority of homeowners remain unaware of the full range of benefits Energy Resilience and Grid Reliability are Key Drivers for Solar Interest 60% of homeowners believe extreme weather and climate change are directly impacting their lives, a significant rise from 41% in 2024. Moreover, 65% of solar installers report a surge in solar interest following natural disasters, underscoring how climate-related events are accelerating the adoption of solar For businesses, solar’s environmental impact is now a primary motivator: 22% cite reducing their carbon footprint as a top reason for adopting solar, surpassing monthly cost savings (20%). Notably, 67% of businesses agree climate change is affecting their operations Climate change is becoming a less partisan issue, with 67% of Democrats and 56% of Republicans acknowledging its local impact For all the insights from the Aurora Solar Industry Snapshot, see here. About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and help solar businesses grow faster. More than 7,000 of the industry's top organizations rely on Aurora Solar and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on Inc’s 2024 Fast 5000, TIME’s 2025 Top U.S. GreenTech Companies and the 2025 Top World Greentech Companies 2025; listed on the 2024 Deloitte Fast 500; named to Solar Power World’s 2024 Top Solar Software & Monitoring Products; and, the only climate tech business named to the 2022 Forbes AI 50. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com # # #   ### Aurora Solar Expands Partner Ecosystem to Increase Access to Solar Leasing GoodLeap and LightReach debut in Aurora Solar's Third-Party Ownership ecosystem September 10, 2024 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, today announced its Third-Party Ownership (TPO) program with the addition of GoodLeap and LightReach to its platform. These companies will provide solar installers and their homeowner customers with affordable, accessible leasing and Power Purchase Agreement (PPA) options for going solar. Aurora Solar’s partner ecosystem empowers solar installers to optimize their sales and financing approach in every market they serve. GoodLeap and LightReach — the TPO market leaders — joining Aurora Solar’s platform will help installers quickly deploy the best TPO solutions to homeowners during this critical time for the solar industry. According to Aurora Solar’s 2024 Solar Industry Snapshot, 75% of homeowners who do not have solar (but are interested) said overall system and installation costs are a big concern. Of these respondents, 54% said interest rates are too high. At the same time, just 15% of homeowners said they were paying for their PV system through a leasing program. Education around third-party ownership could open doors for homeowners and installers to overcome high rates and move out of the “interest stage.”  “While the solar coaster has certainly been more ‘valley’ than ‘peak’ in recent years, we are resilient, and we are innovative. Aurora Solar is committed to its mission to create a future of solar for all; the additions of GoodLeap and LightReach to our partner ecosystem empowers solar pros and homeowners to access solar in today’s world of high interest rates and utility rates,” said Carina Brockl, Chief Revenue Officer, Aurora Solar. “We’re thrilled to help the solar community unlock accuracy, flexibility, and cost-savings to spur growth in residential solar through TPO — especially when paired with our whole home electrification solutions — to build trust with installers and make solar more accessible.” Debut companies in Aurora Solar's TPO ecosystem include: GoodLeap -  a technology company delivering best-in-class financing and software products for sustainable solutions, from solar panels and batteries to energy-efficient HVAC, heat pumps, roofing, windows, and more.  LightReach -  the TPO energy plan from Palmetto, an award-winning clean tech company and solar industry leader. LightReach uses modern technology to integrate with sales platforms like Aurora to make it faster and more efficient for homeowners to access lease and PPA financing for storage and solar projects, and start saving money on their utility bills. “With Aurora Solar’s new TPO ecosystem and growing list of partners, we can provide flexible financing options while streamlining the experience for both homeowners and our sales teams,” said Rob Angell, VP of Sales Operations at Freedom Forever. “By simplifying and increasing continuity throughout the solar installation process, all parties benefit from Aurora Solar’s industry-leading platform.” Schedule a personalized demo here. To inquire about a new TPO integration, see here.  About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on Inc’s 2024 Fast 5000, TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com # # # ### Aurora Solar Unveils HelioScope Similar Obstruction Detection Feature Revolutionizing Large-Scale C&I Solar Design with Cutting-Edge AI Integration August 27, 2024 – SAN FRANCISCO – Aurora Solar, the leading global platform for solar sales and design, today announced it will launch HelioScope Similar Obstruction Detection at RE+ in September. Built with Aurora Solar’s proprietary AI technology, HelioScope Similar Obstruction Detection streamlines the process of identifying and creating “keepouts” — or areas where modules should not be placed, such as a skylight — for rooftop obstructions in commercial and industrial (C&I) solar projects. As C&I solar projects get bigger and more complex, the challenge of managing numerous obstructions — everything from HVAC units to vents — has become increasingly daunting. Traditionally, finding and creating keepouts for these obstructions has been a time-consuming, manual task, extending design timelines and creating inefficiencies. HelioScope Similar Obstruction Detection addresses these challenges by drastically reducing the time required to locate and manage rooftop obstructions. Features and Benefits:  Increased Efficiency: As the first AI-based detection solution for large scale C&I solar projects, HelioScope Similar Obstruction Detection uses Aurora Solar’s proprietary AI technology to identify and create keepouts for similar obstructions in a fraction of the time. What typically takes 10-15 minutes to do manually can now be automated in just 10-15 seconds. Accelerated Project Timelines: By automating detection and keepout creation processes, solar developers and Engineering, Procurement, and Construction companies (EPCs) can accelerate their design timelines, enabling them to focus on higher-value tasks and deliver more proposals. Support for Larger Projects: While AI-based obstruction detection is not new to residential solar, its use in C&I solar has been limited to small rooftop projects. With the introduction of HelioScope Similar Obstruction Detection, C&I solar professionals will be able to confidently automate the accurate detection and creation of keepouts on even the largest rooftops systems. Paul Grana, GM, HelioSope at Aurora Solar said, “By integrating Aurora’s state-of-the-art AI technology in HelioScope, we're expanding our capabilities as the world's most trusted solar software, providing a solution that speeds up the design process, and enhances the accuracy of preliminary designs.” Visit us at Booth A59079 at RE+ to learn more about HelioScope Similar Obstruction Detection. About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on Inc’s 2024 Fast 5000, TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com ### Aurora Solar Acquires Lyra to Simplify Solar Permitting July 15, 2024 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, today announced it acquired Lyra*, the leading provider of instant plan set packages. Lyra’s permit packaging software helps solar professionals automate, create, and export permit-ready design plans. The solar permitting process can be challenging for homeowners and installers alike. Complex regulations from Authority Having Jurisdictions (AHJs) and the solar industry’s heavy reliance on manual data entry contribute to significant delays — and ultimately costs — to solar installations. Integrating Lyra into the Aurora Solar platform will help alleviate these challenges by providing instant, permit-ready proposals, backed by Aurora’s industry-leading accuracy. The integration will empower solar installers to deliver projects faster, with lower costs, to enable more solar installations. "Lyra’s advanced automation software for plan sets is the solution the solar industry needs to alleviate a key homeowner pain point — the often agonizing local permitting process – and cut down on wasted time and energy for solar professionals," said Chris Hopper, CEO at Aurora Solar. "We’re proud to be the most trusted and accurate solar sales and design tool, with 80% of the top U.S. installers relying on our platform. Our intention is to be the market leader in U.S. residential plan set services and automation; the acquisition of Lyra significantly accelerates our ability to achieve this goal." See here to learn more about Lyra’s integration into the Aurora Solar platform. About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com *Verdiseno, Inc. dba Lyra # # #   Excerpt: July 15, 2024 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, today announced it acquired Lyra*, the leading provider of instant plan set packages. Lyra’s permit packaging software helps solar professionals automate, create, and export permit-ready design plans. ### Aurora Solar Announces Whole Home Energy Management: Expanding Beyond Solar to Address Homeowners’ Electrification & Energy Needs Aurora Solar powers the energy revolution with proposals for whole home electrification, energy efficiency, and solar-plus-storage proposals. June 6, 2024 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, today unveiled new tools designed from the ground up to empower solar professionals to estimate a homeowner's holistic electrification and energy needs. With unpredictable utility policies and rising electricity prices, Aurora’s new offerings help homeowners create an energy efficient home for years to come with a solar-plus-storage system built for their specific needs. Aurora's new capabilities include: Energy optimization: Add any electrical appliance or energy efficiency solution, like heat pumps, duct sealing, or EV charging, to a homeowner’s energy load profile for clean energy proposals Storage retrofit proposals: Design proposals that add additional panels and/or storage to existing PV systems Comprehensive storage modeling: Optimize bill savings and energy independence with storage modeling for backup, self-consumption, or energy arbitrage in Aurora  According to Aurora Solar’s 2024 Solar Industry Snapshot, 10 percent of homeowners want to electrify their home before considering solar and 37 percent feel solar panels are more valuable when paired with whole-home electrification. That’s why this solution is essential for U.S. residential solar companies: it allows them to become trusted energy advisors by offering comprehensive clean energy proposals that increase credibility and deal value. Based on Aurora Solar’s deep experience in serving the solar community, whole home energy tools plus Sales Mode simplifies buying and selling solar. Benefits include: Differentiate proposals with holistic energy plans to advise homeowners on the best options for their energy needs Design for a more resilient energy future with solar-paired or storage-only options to meet a homeowner's planned energy needs Build credibility using trustworthy proposals made with Aurora's Sales Mode “Aurora Solar is the industry’s leading solar partner, committed to the success of the solar community,” said Patrick Donahue, Chief Product Officer, Aurora Solar. “We understand the unique challenges solar professionals face when it comes to selling solar, as well as the confusion homeowners often have around electrifying their home and going solar. With Aurora's new whole home energy tools, solar professionals and homeowners can partner to design a holistic clean energy solution, whether that means adding heat pumps, electric vehicles, more storage, or efficiency solutions as homeowners envision their electrified, resilient future home plans.” Aurora's set of whole home energy management features will be released throughout the summer; comprehensive storage modeling is available today. Schedule a personalized demo here. About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-ReinboldPR & communications directorpress@aurorasolar.com ### Aurora Solar Appoints Patrick Donahue as Chief Product Officer and Promotes Carina Brockl to Chief Revenue Officer Senior leadership growth announced as company exceeds 20M project milestone May 14, 2024 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, announces the appointment of Patrick Donahue as Chief Product Officer and the promotion of Carina Brockl to Chief Revenue Officer. With a strong background in technological innovation, underscored by his time as Vice President of Product at Cloudflare, Donahue will lead Aurora Solar’s product strategy and development. He will work with cross-functional teams to define and execute Aurora Solar’s product vision to deliver a better solar experience for all. Brockl, who has been with Aurora Solar for three years, will expand on her existing leadership role within the organization to continue to lead sales, marketing, global partnerships, and international market growth as Chief Revenue Officer.  “Aurora Solar was created to support the world’s transition to solar at scale,” said Christopher Hopper, Co-Founder and CEO at Aurora Solar. “With experts like Patrick and Carina at the helm of our executive leadership team, we are well positioned to embrace this fundamental market shift to drive sustainable industry growth.” These additions to the executive team come on the heels of the company’s recent inclusion on TIME Magazine’s Top GreenTech Companies 2024 list and the launch of its second annual Solar Industry Snapshot. This report investigates early 2024 U.S. residential solar trends and how they will affect the industry.  "The next phase of solar's growth will be unlike anything we've seen before," Donahue remarked. "I'm excited to join the industry's leading solar sales and design software company, where I'll be able to contribute to pioneering new innovations that will further expedite the adoption of solar." Aurora Solar recently achieved another milestone. Its platform, trusted by more than 7,000 solar installers around the world, has been used to generate 20 million solar project designs. More than 100,000 projects per week are now designed using Aurora Solar’s software.   "Doubling from 10 million to 20 million projects designed in less than two years speaks to the impact the Aurora and HelioScope solutions have made on the solar industry,” added Brockl. “Last year we expanded into Germany, and we continue to be excited by the prospect of exploring new markets.” To learn more about how Aurora Solar is creating a future of solar for all, visit the website here. About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and help solar businesses grow faster. More than 7,000 of the industry's top organizations rely on Aurora and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com  ### Aurora Solar Welcomes Alex Honnold and Dr. Jesse Jenkins to Keynote Empower 2024 Empower, the premier virtual gathering for the solar community, is where solar professionals come together to explore the latest innovations, ideas, and technologies that help advance their business, career, and the industry as a whole. May 7, 2024 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, today announced Alex Honnold and Dr. Jesse Jenkins as keynote speakers for its fifth annual virtual Empower event, June 5-6, 2024. Honnold will share how the solar community can help increase access to solar, while Jenkins will give an overview on the path to decarbonization and the challenges home and business owners face when going solar. In addition to insights from Honnold and Jenkins, Empower 2024 offers two full days of learning, including a marquee panel, “Uniting Forces to Unlock the Electrification Movement” moderated by Ari Matusiak of Rewiring America, and featuring Donnel Baird of BlocPower, Nate Walkingshaw of Torus, Reynolds Holmes of GAF Energy, Riley Neugebauer of Namaste Solar, and Victoria Garcia Massimo of AirZone North America. Empower will also feature six additional sessions across various solar functions, covering both residential and commercial solar. Empower is open to everyone and features dozens of solar experts as part of its speaker lineup. Whether you’re a solar professional seeking to earn NABCEP CEUs, an industry advocate who is passionate about accelerating the clean energy future, or are involved in any other area of solar, Empower has something for you. To learn more about Empower 2024, view the full agenda, and register for the event, visit https://aurorasolar.com/empower-2024. About Aurora Solar Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-ReinboldPR & communications directorpress@aurorasolar.com ### Aurora Solar’s 2nd Annual Residential Solar Trends Report Finds Homeowners Want Solar, But Trust in the Industry Declined March 26, 2024 – SAN FRANCISCO – Aurora Solar, the leading platform for solar sales and design, today announced its second annual “Solar Industry Snapshot.” This report examines early 2024 U.S. residential solar trends through three unique data sources: Aurora’s solar projects database of more than nine million projects over the past two years; a survey of 1,000 U.S. homeowners about their solar adoption behaviors and motivations; and, a survey of 500 U.S. solar professionals on the state of the industry. Key findings include: Interest in solar is high, but homeowners are stuck in the planning stage  More than half of homeowners said they believe solar is a good investment. However, 75% of homeowners who do not have solar (but are interested) said overall system and installation costs are a big concern. Notably, 15% of homeowners said they were paying for their PV system through a leasing program. In the current high-interest rate environment, we anticipate this percentage will increase as demand for leasing goes up. Education around third-party ownership could open doors for homeowners and installers to move out of the “interest stage.” Homeowner trust has declined, but hope remains in the power of education In 2023, 22% of homeowners said they were unable to find a trustworthy solar company. In 2024, the numbers doubled: 44% of respondents said it is hard to determine which solar companies are trustworthy.  Solar professionals backed this up — by far, the main problem they face in 2024 is homeowners being reluctant to commit to quotes (38%). It's more important than ever for solar sales professionals to educate homeowners. Homeowners find solar more valuable when paired with storage and other energy efficiency products  Only 10% of homeowners had battery storage, and they overwhelmingly did not understand net energy metering (only 16% were familiar with the term). We expect these numbers to increase in future years as net metering policies are examined across the U.S. and electricity rates continue to rise. In fact, nearly three-quarters of solar professionals reported seeing increased interest in energy storage plus solar. Moreover, 38% of homeowners felt solar panels are more valuable when paired with whole home electrification. For all of the insights from the Aurora Solar Industry Snapshot: Early 2024 U.S. Residential Trends, see here. About Aurora Solar  Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com ### Aurora Solar and EagleView Partner to Drive the Solar Industry Forward Integration unites best-in-class geospatial technology with the industry’s leading solar platform SAN FRANCISCO, CA AND ROCHESTER, NY — March 5, 2024 — Aurora Solar, the leading platform for solar sales and design, today announced its alliance with EagleView, the renowned provider of aerial imagery, geospatial software, and analytics. Through this technology-first partnership, Aurora Solar and EagleView are combining 30 years of engineering excellence to build best-in-class solar solutions. This integration will empower solar professionals to prospect, plan, and validate solar projects with the highest accuracy possible. EagleView’s high resolution aerial imagery, validated 3D roof models, and industry-leading structure measurements provide an additional layer of accuracy when selling and designing PV systems in Aurora — all without requiring physical site visits. Aurora customers will be able to use EagleView solutions to: Access even better high resolution imagery: With best-in-class aerial photography reaching sub-one inch resolution, Aurora with EagleView encompasses over 94 percent of the U.S. population with 70 times more detail than satellite imagery. Leverage high precision 3D roof models: An additional layer of accuracy in roof models — provided to customers as a service — will improve remote solar design outcomes. As a result, Aurora customers will see more installable projects, reduced costs, and less delays associated with redesigns, renegotiations, and shifting timelines. Provide proposals and designs that build trust: Designers in Aurora have the best tools to get the job done — including EagleView’s imagery and property data — improving the overall homeowner experience and creating better outcomes for solar professionals. “As solar continues its unprecedented global growth, Aurora Solar continues to invest in the industry's most trusted platform for selling, designing, and delivering solar projects," said Carina Brockl, CRO at Aurora Solar. "We’re delighted our groundbreaking partnership with EagleView will deliver new benefits to our customers as we double down on our commitment to design accuracy.” “Joining Aurora’s industry-leading solar capabilities with EagleView’s powerful property intelligence and analytics provides solar installers with an all-encompassing design and sales solution that drives results,” said Peter Cleveland, VP of Solar, EagleView. “The industry needs these tools now more than ever, and we are looking forward to building a better experience for solar professionals as well as homeowners.”  To learn more about how Aurora Solar and EagleView are providing greater accuracy and better data for the solar industry, see here and register here for Aurora Solar’s Sunrise 2024 Demo Day. About Aurora Solar Aurora Solar is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and nearly 20 million solar projects have been designed with the platform globally. The San Francisco-based company was: ranked on TIME’s 2024 Top U.S. GreenTech Companies; the only climate tech business named to the 2022 Forbes AI 50; listed on the 2022 Deloitte Fast 500; and, named to Solar Power World’s 2023 Top Solar Software & Monitoring Products. For more information, visit www.aurorasolar.com and follow on X @AuroraSolarInc. About EagleViewEagleView is a leader in geospatial technology, providing solutions that transform the way our customers work. EagleView has the largest geospatial data and imagery library ever assembled, encompassing 94 percent of the U.S. population. EagleView’s unique technology portfolio comprises more than 300 patents, enabling it to offer highly differentiated software, imagery, and analytics products for multiple industries. Contactpress@aurorasolar.com ### Aurora Solar Welcomes Jigar Shah, U.S. Department of Energy Loan Programs Office Director and Bernadette Del Chiaro, Executive Director at California Solar & Storage Association to Keynote Empower 2023 Empower, the premier virtual gathering for the solar installation community, is where solar professionals come together to explore the latest innovations, ideas, and technologies that help advance their business, career, and the solar industry as a whole. July 19, 2023 – SAN FRANCISCO – Aurora Solar, the leading cloud-based platform for solar sales and design, today announced Jigar Shah and Bernadette Del Chiaro as keynote speakers for its fourth annual Empower event. Shah and Del Chiaro will share how the solar community can best manage complexity and change during challenging economic events and turn it into an opportunity, as well as an outlook on California’s solar and storage market post-NEM 3.0, respectively.  “With the challenging market conditions facing the solar industry today, staying agile and adaptive will be critical for success in 2023,” said Christopher Hopper, co-founder and CEO, Aurora Solar. “That’s why we’re thrilled to welcome Jigar Shah and Bernadette Del Chiaro as Empower 2023 keynote speakers to break down how installers across residential and commercial solar can best demonstrate the value in trends like electrification and storage — aided by digital transformation — while we collectively manage the current economic and legislative climate.”  In addition to talks from Shah and Del Chiaro, Empower 2023 offers a full day of learning across functions: Design, Operations, and Engineering Participate in Aurora and HelioScope workshopsLearn actionable strategies for using tech to improve workflows and operationsSee how automation can make large-scale projects more efficient Sales and Marketing Boost sales and marketing with techniques from experienced solar marketersDiscover how to attach storage to every saleExplore the latest in solar sales technology, from lead generation to closing Leadership and Management Find out how solar leaders are navigating the latest bumps in the “solar coaster”Learn the ins and outs of the IRA, NEM 3.0, and other policy changes — and how they affect solar installation businessesDiscover how digital transformation is driving the future of the solar industry Empower is open for anyone to attend and features dozens of solar experts as part of its speaker lineup. From solar professionals seeking to earn NABCEP CEUs to industry advocates who are passionate about accelerating the clean energy future, Empower offers something for everyone. To learn more about Empower 2023, view the full agenda, and register for the event, visit https://aurorasolar.com/empower-2023#agenda. About Aurora Solar Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50, was listed on the 2022 Deloitte Fast 500, and voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc.ContactKaren DeVincent-ReinboldPR & communications directorpress@aurorasolar.com ### Aurora Solar Appoints Matthew Idema as New President and Chief Operating Officer Former VP of Meta brings more than two decades of global go-to-market and operations experience to the executive leadership team SAN FRANCISCO, CA — June 6, 2023 — Aurora Solar, the leading cloud-based platform for solar sales and design, announces the appointment of Matthew Idema to President and Chief Operating Officer. In this role, Idema will lead Aurora Solar’s global go-to-market and business operations functions including sales, customer success, marketing, business development, program management, and data analytics. “Throughout my career, I’ve been fortunate to lead businesses that have created meaningful value on a global scale. There is no question that Aurora Solar is on this path as well,” said Idema. “I am thrilled to be joining the team building the software that will power the solar industry to create a future of solar for all.” Idema has extensive and wide-ranging experience with global companies going through high growth periods. Most recently, he led all aspects of go-to-market efforts for B2B messaging across Meta platforms including WhatsApp, Instagram, and Facebook Messenger. Prior to Meta, he was Chief Operating Officer of WhatsApp where he built and led all go- to- market functions, business product teams and operations and helped grow the user base to 2 billion. “Our team and Matthew shared a vision for this role: we were all looking for someone who could help shape the business, the culture, and invest in our people,” said Christopher Hopper, Co-Founder and CEO at Aurora Solar. “Matthew is a people-first leader with a management style that aligns closely with Aurora Solar’s core values. We are excited to welcome him to the team and help make our shared mission of creating a future of solar for all a reality.” To learn more about how Aurora Solar is creating a future of solar for all, visit the website here. About Aurora Solar  Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50, was listed on the 2022 Deloitte Fast 500, and voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com ### Aurora Solar Announces Expansion of Operations in Germany to Accelerate Solar Adoption May 31, 2023 – SAN FRANCISCO  Aurora Solar, the leading cloud-based platform for solar sales and design, announced its expansion into Germany to empower solar organizations to streamline operations and accelerate growth. Aurora sees significant opportunity to support the growing number of German solar installers who are in need of digital solutions and automation. The company is establishing operations in Germany and the DACH region with dedicated Sales, Marketing, Customer Support teams. Powering upwards of 100,000 solar projects every week, top US solar organizations — including 90 percent of the top 100 US residential solar installers — count on Aurora to accelerate solar sales cycles using the power of technology and automation. “Aurora enables solar businesses to create highly accurate residential solar designs without having to visit the site, ultimately accelerating the sales process and empowering installers to scale operations. With demand for solar growing in Europe, we are confident our German expansion will help further our mission to create a future of solar for all,” said Christopher Hopper, co-founder and CEO. “This launch is incredibly exciting for our team; our platform will help advance the adoption of renewable energy in Germany.” Expanding Market Leadership to EuropeBuilding on an already strong foundation, Aurora Solar is proud to: Support over 7,000 of the solar industry's most successful organizations to help tackle climate change; Leverage its powerful software alongside its customers to avoid over 60 million tons of CO2 since inception; and,Be recognized on the 2022 Deloitte Fast 500 as well as the 2022 Forbes AI 50, and listed as one of the 2022 Best Remote Companies to Work For by Built In. To learn more about Aurora in Germany, please visit: https://aurorasolar.com/de/ About Aurora Solar  Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50, was listed on the 2022 Deloitte Fast 500, and voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com ### Introducing the Aurora Solar Industry Snapshot Aurora Solar has a database of over 10 million solar project designs, with more than 7,000 customers creating 100,000+ projects per week. March 23, 2023 – SAN FRANCISCO – Aurora Solar, a cloud-based platform creating a future of solar for all by powering industry professionals to make solar simple and predictable, today announced its first “Solar Industry Snapshot.” This report examines early 2023 residential solar trends through three unique data studies: Aurora’s solar projects database of more than six million projects over the past two years; a survey of 1,000 U.S. homeowners about their solar adoption behaviors and motivations; and, a pulse check on the state of the industry through the lens of 898 U.S. solar professionals. Key trends include: Residential Solar Interest in Early 2023: While it will take years to fully realize the Inflation Reduction Act’s (IRA) potential, over 85 percent of residential solar professionals expect it to have a positive impact on their business — or have already seen that positive impact. Additionally: Nearly 77 percent of homeowners either have solar or are interested in purchasing it; Over the past year, more than nine in ten residential solar professionals saw increased interest in solar, and 70 percent noted their business grew in size; and,U.S. solar project counts within Aurora grew by almost 40 percent year over year. Homeowners and Energy Resilience: With concerns growing around energy costs and grid reliability, the solar conversation is heating up — along with the appeal of storage, electric vehicles, and more: 62 percent of homeowners expect energy prices will continue to rise;Homeowners have concerns around power outages stemming from weather events (48 percent), followed closely by cyber attacks on the power grid (46 percent); 82 percent of solar professionals noticed increased interest in battery storage from homeowners; and,79 percent of solar professionals noted electric vehicle adoption is leading to interest in solar. Supporting Homeowners Through Solar Education: Solar installation costs are a top concern among homeowners (56 percent), as well as uncertainty around whether their home receives enough sun exposure (31 percent). Other notable homeowner concerns included: 50 percent of homeowners feel it is difficult to determine if an installer is legitimate;49 percent of homeowners think having a self-service portal for modeling their home’s energy savings is important for installers; and,48 percent of homeowners want installers to offer multiple financing options. For all of the insights from the Aurora Solar Industry Snapshot: Early 2023 U.S. Residential Trends, see here. About Aurora Solar  Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to help solar businesses streamline workflows and grow faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50, was listed on the 2022 Deloitte Fast 500, and voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com ### Aurora Solar Announces Expansion of Operations in Canada Fastest-growing solar software platform incorporates in Ontario to keep pace with hiring and ambitious plans for growth February 16, 2023 – SAN FRANCISCO – Aurora Solar, a cloud-based platform creating a future of solar for all by powering industry professionals to make solar simple and predictable, today announced it incorporated in Ontario with dedicated Engineering, Product, and Design teams to help scale the company to its next phase of growth. Valued at over $4 billion with more than $500 million in funding, Aurora Solar’s team of 500 and growing is proud to power upwards of 100,000 solar projects every week, with 90 percent of the top 100 US residential solar installers counting on Aurora’s AI-powered software to help meet the rapid demand for solar energy.  “We are thrilled to announce Aurora’s incorporation in Canada,” said Chris Hopper, co-founder and CEO, Aurora Solar. “Canada's work in the renewable energy sector combined with its experienced and skilled pool of SaaS talent make it an ideal location for Aurora Solar as we expand our footprint. Our Canadian presence highlights our commitment to creating a future of solar for all, and we look forward to furthering our mission with support from Canadian colleagues.” Globalizing and Scaling Technology That Combats Climate ChangeBuilding on an already strong foundation, Aurora Solar is proud to: Support over 7,000 of the solar industry's most successful organizations to help tackle climate change; Leverage its powerful AI software alongside its customers to avoid over 60 million tons of CO2 since inception; and,Be recognized on the 2022 Deloitte Fast 500 as well as the 2022 Forbes AI 50, and ranked as one of the 2022 Best Remote Companies to Work For by Built In.  “Aurora Solar's Canadian launch marks a long-term investment in Canada, offering remote-first flexibility, and a collaborative, inclusive environment enjoyed by all Aurorans as we unite on our mission to build a sustainable future,” said Thusha Agampodi, Director of Engineering, Aurora Solar. “As a resident of Ontario, I’m incredibly proud and excited to continue building on our team’s momentum here, leveraging the diverse talent pool across Canada.” Aurora Solar is now hiring for remote positions in Canada across Product, Design, Engineering, and more. For more information, see our careers page here. About Aurora Solar  Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50 and was listed on the 2022 Deloitte Fast 500, and voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. Contact Karen DeVincent-ReinboldPR & communications directorpress@aurorasolar.com ### Edward Norton — Award-Winning Actor, Filmmaker, and Conservationist — Joins Aurora Solar’s Speaker Lineup for Empower 2022, a Premier Virtual Event for the Solar Community Norton’s November 1, 2022 keynote will highlight the role of solar in creating resiliency and social equality; will touch upon the importance of distributed energy through his conservation work in Kenya. Free, virtual event on November 1-2, 2022 will feature sessions discussing innovations, ideas, and technologies influencing the digital future of the solar industry. October 24, 2022 – SAN FRANCISCO – Aurora Solar, a cloud-based platform creating a future of solar for all by powering industry professionals to make solar simple and predictable, today announced Edward Norton as a keynote speaker at its third annual Empower event. In addition to being a Golden Globe winner and Academy Award nominee, Norton has participated in numerous solar advocacy efforts over the past 25+ years and serves as US Board President of the Maasai Wilderness Conservation Trust (MWCT), which operates a range of programs where solar plays an important role in helping protect the ecosystems and biodiversity of East Africa. “Edward has a long history with the solar industry and as a conservationist,” said Chris Hopper, co-founder and CEO, Aurora Solar. “His passion for and views on solar closely align with our mission to create a future of solar for all. We’re thrilled to add Edward to Empower’s roster of world-class speakers who are collectively advancing the solar industry and creating a more sustainable, resilient future.”  During his keynote titled “The Importance of Solar for All,” Norton will share his views on the role of solar in creating resiliency and social equality. He will also discuss the importance of distributed energy and how it has come to life through the MWCT’s Chyulu Carbon Project, which he has been supporting for the past 20+ years. One of the organization's newest projects focuses on building energy storage and solar infrastructure to power electric vehicles in remote parts of Kenya to help protect wildlife. In support of this cause, Aurora Solar will donate five dollars to this initiative for every person who registers for Empower 2022, up to $25,000, and will match donations, up to an additional $25,000, made to this cause through the Aurora/MWCT GoFundMe page; donate here.   Empower is open for anyone to attend and features 35+ solar experts as part of its speaker lineup. From solar professionals seeking to earn NABCEP CEUs to industry advocates who are passionate about accelerating the clean energy future, Empower offers something for everyone. To learn more about Empower 2022, view the full agenda, and register for the event, visit https://aurorasolar.com/empower-2022-agenda/. About Aurora Solar Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50 and was voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. ContactKaren DeVincent-ReinboldPR & communications directorpress@aurorasolar.com # # #  ### Aurora Solar announces third annual Empower event, the premier virtual gathering for solar professionals: November 1-2, 2022 This free virtual event will be presented live online, featuring keynotes from Ari Matusiak, CEO of Rewiring America as well as Bill Parsons, VP for Federal and State Affairs at American Clean Power Empower is where the solar community gathers to get inspired by innovations, ideas, and technologies, moving the industry into the digital future. All 15-minute sessions will be available on-demand and qualify attendees for up to four NABCEP CEU credits October 13, 2022 – SAN FRANCISCO – Aurora Solar, a cloud-based platform creating a future of solar for all by powering industry professionals to make solar simple and predictable, today announced Empower, where the solar community shapes the future together. Empower is free of charge, hosted online, and attendees can earn up to four NABCEP CEU credits. Empower is for the entire solar community: design, operations, and engineering; sales and marketing; senior management; solar installers; and people curious to learn more about the rapidly growing solar industry.  “As the Inflation Reduction Act makes solar more accessible, our industry needs to prepare for the next wave of welcomed demand — SEIA estimates $600 billion in new solar investment over the next decade,” said Chris Hopper, co-founder and CEO, Aurora Solar. “At Empower, we’ll get inspired for what lies ahead with keynotes from Ari Matusiak and Bill Parsons. We’ll also learn how we can continue to drive growth, understand the evolving solar value chain, and prepare for the digital transformation of our industry.”  Learn more about Empower and register here.  About Aurora Solar Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50 and was voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc.ContactKaren DeVincent-ReinboldPR & communications directorpress@aurorasolar.com ### Aurora Solar Expands Partner Ecosystem to Increase Access to Solar Financing Industry-leading financing providers Dividend, Mosaic, and Sungage Financial support the Aurora solar community  September 20, 2022 – SAN FRANCISCO – Aurora Solar, a cloud-based platform creating a future of solar for all by powering industry professionals to make solar simple and predictable, today announced Dividend, Mosaic, and Sungage Financial as key integrations for the Aurora platform. The addition of these new partners will provide solar installers and their homeowner customers with simple, accessible funding to go solar. Aurora’s partner ecosystem empowers solar installers with the freedom to build a high-performing solar tech stack, tailored to their needs. “As the Inflation Reduction Act makes solar more accessible, we expect a large increase in the number of homeowners looking to go solar. It’s critical that the industry makes the solar experience as quick and easy as possible, from the first call, to the proposal and financing, to installation,” said Sam Adeymo, CRO and co-founder, Aurora Solar. “With Dividend, Mosaic, and Sungage Financial joining Aurora’s partner ecosystem — which makes financing accessible in one easy portal — we will collectively help the solar community sell, finance, and install solar faster and more effectively than ever before.”  Key financing partners within the Aurora partner ecosystem include: Dividend is a leading fintech point-of-sale lender to solar and home improvement contractors. In addition to its industry-leading suite of financial products, Dividend developed a comprehensive technology platform for its solar partners to streamline the financing process, manage project pipelines, and receive top-class support in every deal. The company currently operates nationwide through its network of solar and home improvement partners. The Dividend platform enables homeowners to access financing through a seamless and hassle-free customer experience. Mosaic makes financing solar, solar plus energy storage systems, and other sustainable home improvements accessible and affordable for homeowners by providing a fast and easy way to apply for financing. Customers are referred by approved solar installers and home improvement contractors, as well as other ecosystem partners, and can get a credit decision in minutes for no money down loans with fixed interest rates and multiple term options. Since 2012, Mosaic has helped more than 275,000 households switch to sustainable home improvements with its financing products. Sungage Financial is shaping the residential solar industry by offering reliable and flexible financing solutions with some of the lowest monthly payments in the industry. Sungage enables solar installers to build strong and resilient businesses while helping families save money and live more sustainably. To learn more about Aurora Solar, meet us at RE+ (booth #2464) today through September 22.  About Aurora Solar  Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50 and was voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com ### Aurora Solar Platform Generates 10 Millionth Solar Roof Design, Helping Millions Make the Switch to the Future More than 7,000 solar installers around the world depend on Aurora every day to deliver a new energy experience September 6, 2022 – SAN FRANCISCO – Aurora Solar, a cloud-based platform creating a future of solar for all by powering industry professionals to make solar simple and predictable, today announced 10 million solar sites have been designed within its platform. These projects deliver a combined savings of nearly 60 million metric tons of carbon dioxide emissions, which is equivalent to the total emissions produced by more than 16 coal-fired power plants over the course of a year. Reaching this milestone is a testament to the hard work and dedication of the solar installer community, the growing demand for sustainable energy, and the rapid maturation of the solar industry as it delivers new energy experiences.  “This month, the Aurora community of solar installers officially surpassed 10 million projects designed in the platform,” said Chris Hopper, co-founder and CEO, Aurora Solar. “We are so thankful to our customers for pushing the solar industry forward and making the switch to the future. With every solar installation, we’re moving toward a cleaner world and a brighter future.” The Rapid Growth of Aurora and the Solar Industry Powered by proprietary computer vision and machine learning algorithms, Aurora's platform streamlines the solar project lifecycle to radically accelerate revenue and lower the soft costs of delivering solar, helping installers keep pace with the market’s unprecedented demand. In the last decade, solar experienced an average annual growth rate of 33 percent1. Aurora’s 10 million project milestone is a significant step in its mission to create a future of solar energy for all. 10 Million Projects: a Thank You to Aurora’s Solar Community Aurora’s 10 million solar project milestone was made possible due to the Aurora customer community helping drive solar adoption and empowering homeowners with sustainable energy. “We couldn't have achieved this milestone without the hard-working and growing group of installers who are in the field every day turning the promise of solar into reality. These individuals directly empower their communities with the freedom and sustainability of solar energy and should be applauded,” said Sam Adeyemo, co-founder and CRO, Aurora Solar. “Solar Holler is a benefit corporation, which means we are not focusing on profits; we focus on savings for the homeowner,'' said Justin Kline, lead residential solar designer at Solar Holler and Aurora customer. “At the same time, the industry is growing faster than ever; we have to be quick on our feet in order to grow and scale as rapidly as the industry is changing. We've barely reached the cusp of what the possibilities are here, but we're well on our way and we're moving quickly, thanks to Aurora.” To hear more from Aurora customers Solar Holler, Semper Solaris, and Solar Union, watch this video celebrating Aurora’s solar installer community. To learn more about Aurora Solar, meet us at RE+ (booth #2464) from September 19-22, 2022. About Aurora Solar  Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over 10 million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50 and was voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. Contact Karen DeVincent-ReinboldPR & Communications Directorpress@aurorasolar.com # # #  1 SEIA/Wood Mackenzie Power & Renewables U.S. Solar Market Insight Q2 2022 ### Introducing Aurora Solar’s AI Solutions to Drive Solar Adoption and Accelerate a Clean Energy Future Built on the platform delivering over 100,000+ projects a week, Aurora's AI solutions simultaneously evaluate HD map imagery and LIDAR data to generate 3D models in 30 seconds July 19, 2022 – SAN FRANCISCO – Aurora Solar, a cloud-based platform trusted by solar professionals across marketing, sales, design, and operations, today unveiled new artificial intelligence (AI) solutions. Powered by proprietary computer vision and machine learning algorithms, Aurora’s AI offerings streamline the solar project lifecycle to radically accelerate revenue and lower the soft costs of delivering solar, ultimately driving solar adoption.  Next Generation Digital Marketing: Lead Capture AI  Aurora Solar’s Lead Capture AI empowers marketers to innovate the top-of-funnel experience with personalized, AI-generated 3D solar estimates for homeowners, enabling businesses to: Decrease acquisition and overhead costs: With just an address and utility bill estimate, homeowners are instantly presented with potential solar savings and a 3D visual of their own home outfitted with solar. By eliminating the back and forth of site visits, paperwork, and inaccurate estimates, solar businesses convert more web leads. Boost conversion funnels and streamline deals: Using the website to capture qualification data empowers sales and marketing to accelerate speed-to-lead. Stand out from the crowd: Digital-first marketing and sales strategies enable solar businesses to meet — and exceed — homeowners' expectations with a seamless, omnichannel experience. “In less than a month with Aurora’s Lead Capture AI, we quadrupled our web lead volume and saw 25 percent higher appointment set rates from our organic leads compared to what we generated through other marketing channels,” said Richard Murdocco, vice president of marketing, NY State Solar. “Lead Capture AI’s engaging visuals with readily quantified benefits help potential clients understand not only their savings, but what solar would realistically look like on their home.” Better Together: Aurora AI for Design and Sales Teams Available in Design Mode and Sales Mode, Aurora AI enables solar professionals to move fast and scale their business. Eliminating manual modeling and design from start to finish, Aurora AI develops reliable 3D models within 30 seconds. Top benefits include: Increased efficiency: With the click of a button, designers and sales teams can begin projects with an AI-generated site model. Accurate quoting: Sales Mode with Aurora AI empowers sales teams to quickly and confidently create a solar quote without sacrificing accuracy. Scalability: Design Mode with Aurora AI enables solar companies to scale up their design operations by focusing their limited engineering and design resources for the most valuable and advanced aspects of the design workflow.  “While the demand for solar grows, solutions haven’t kept pace; most solar software products offer a choice between speed or accuracy. At the same time, solar buyers want a dynamic, fast, and personalized experience,” said Chris Hopper, CEO and co-founder, Aurora Solar. "Our AI solutions deliver on all fronts: they power the marketing and sales teams, streamline the design process, and provide a delightful homeowner experience. Together with our customers, we’ve avoided nearly 60 million metric tons of carbon dioxide emissions since Aurora’s inception, and we look forward to further supporting the creation of a cleaner, more sustainable world as our AI-powered solutions accelerate solar adoption.” Learn more about Lead Capture AI and Aurora AI: schedule a personalized demo here. About Aurora Solar  Aurora is creating a future of solar for all. The company is putting the power of data and technology into the hands of every solar professional to make solar adoption simple and predictable. The cloud-based platform uses data, automation, and AI to streamline workflows and grow solar businesses faster. More than 7,000 of the industry's top organizations rely on Aurora and over nine million solar projects have been designed with the platform globally. The San Francisco-based company was the only climate tech business named to the 2022 Forbes AI 50 and was voted the best solar software by Solar Power World in 2021. For more information, visit www.aurorasolar.com and follow on Twitter @AuroraSolarInc. Contact Karen DeVincent-Reinbold PR & communications director press@aurorasolar.com ### Designing for New Construction: From Plans to Proposal in 20 Minutes More cities are enacting building energy efficiency standards and solar mandates for new construction. These mandates are a fantastic opportunity for solar professionals, but navigating new construction system design can present many new challenges.  This webinar will cover how to adapt your design processes for new construction. You'll learn how to design accurate, efficient installations with just a blueprint and sourced site images, winning more new construction opportunities in no time. ### 2025 Solar Industry Snapshot Executive Summary The U.S. solar market has always been dynamic, evolving with every new challenge and opportunity, and 2024 was no exception. Coming off a tough year marked by high interest rates, shifting policies, and uncertainty, the industry remains on the “solar coaster.” Despite these challenges, the industry remains strong and adaptable. The market is shifting, not stalling. Jump to: Homeowner data, Business owner data, Solar professional data, Aurora and HelioScope data, Methodology Solar Panel Investment I believe solar panels are a good investment for homeowners This year, our third-annual Aurora Solar Snapshot Report dives deep into the current landscape, tracking how homeowners, business owners, and solar professionals are adapting to new challenges, and identifies where there are long-term opportunities. While economic headwinds remain, the data makes one thing clear: Demand for solar isn’t going anywhere. Solar demand is adapting, rather than declining. Financing trends are evolving, with more than half of installers saying that customers are turning to third-party ownership (TPO) models like leases and power purchase agreements (PPAs). Battery storage is surging, driven by both cost savings and concerns over grid reliability, with 78% of installers reporting increased demand. Meanwhile, businesses are increasingly looking at solar to protect against rising electricity costs, with 57% listing monthly bill savings as a top reason for adoption. As installers refine their strategies and financing solutions improve, 2025 is shaping up to be a year of adaptation and opportunity. Homeowners find solar more valuable when paired with home electrification Policy remains another major driver for solar, albeit a complicated one. The Inflation Reduction Act (IRA), now in its third year, remains one of the most powerful policy drivers for solar adoption, but awareness still lags among homeowners. While businesses largely embraced IRA benefits, our survey data shows homeowners remain unclear on how to use the incentives. Nearly 40% of respondents admitted they don't know how to take advantage of the IRA, despite its generous 30% tax credit for solar, storage, and more.  This gap isn’t just a challenge — it’s an opportunity. Installers who educate customers about IRA benefits have a competitive edge. Homeowners who are aware of the IRA are twice as likely to say they are actively seeking ways to take advantage of it (60%) compared to those who are unfamiliar with it (30%). The more homeowners understand the IRA, the more likely they are to go solar. Overwhelmingly, homeowners & businesses don't want the Inflation Reduction Act repealed Solar professionals believe their businesses would be negatively impacted if IRA were repealed Beyond costs and incentives, another trend is driving solar adoption: the need for energy resilience. A growing number of homeowners believe the grid is becoming less reliable — extreme weather events and outages are pushing more people toward energy independence, and installers are taking note. Battery storage interest surged, with a majority of the homeowners we surveyed citing backup power as a major reason for considering solar and storage. For businesses, the equation is similar: Power outages mean lost revenue, and the ability to generate and store electricity is a compelling financial strategy. Homeowner opinions on solar 2023-2025 The key takeaway is clear: Solar remains one of the best long-term bets in the energy space. While 2024 was difficult, the underlying demand drivers — rising electricity costs, energy security concerns, and policy incentives — are still firmly in place. Residential system sizes are shifting, financing models are evolving, and the IRA continues to fuel interest. Ultimately, the data in this report tells a compelling story: While the solar market changed, installers who guide customers through financing and help both homeowners and businesses take advantage of incentives will be the ones best positioned for the industry’s next growth phase. The solar coaster is still climbing. The question is: Who's ready for the ride? Homeowner data Solar motivations, blockers, and opportunities There’s no way to sugarcoat it: 2024 was a tough year for solar. With high interest rates and policy uncertainty, the number of new residential solar installs fell almost anywhere you looked.  But there’s another truth that the data in this report makes equally clear: The long-term outlook for solar remains incredibly positive. We asked homeowners a range of questions about their solar experience, and there were a number of positive signs — including policies like the Inflation Reduction Act (IRA), increased interest in storage and whole home electrification, continued desire for energy independence, and even more awareness of climate change.  There’s also some clear work to do, especially around building trust with homeowners, educating them about solar’s benefits, and getting creative in a time when interest rates are still high. What exactly is motivating homeowners to consider solar? What’s holding them back? Where can solar installers step in and clear a path? Let’s look at the data. The growing interest in residential solar: Overcoming barriers & seizing opportunities Despite market challenges, solar remains an attractive investment for homeowners. We asked respondents to rank their top three motivations for installing solar, and the results confirm what the industry has long known. Why homeowners want to go solar Solar panels are a good investment for homeowners 2025 While cost savings remains the main driver for going solar, the data also reveals the full spectrum. And you can’t group everyone into one bucket. Sure, cost savings is likely high on every homeowner’s list, but getting to know customers and learning all their motivations can help tailor your pitch and close more deals.  Key takeaways: Cost savings is still the dominant driver, but energy independence and environmental impact are also major factors Younger homeowners (Millennials & Gen Z) are more likely to see solar as a long-term investment Tailored messaging matters — installers should identify a homeowner’s unique motivation and adjust their sales approach accordingly Now that we have the high-level view, let’s dive into some details. The IRA is a huge opportunity, but awareness gaps remain The data: 41% of respondents were familiar with the IRA’s benefits (up from 31% in 2023) 60% of respondents would like to take better advantage of the IRA’s benefits — whether they’re familiar with the specific benefits or not 40% of respondents still don’t know how to take advantage of the IRA Just 14% of respondents want the IRA to be repealed — signaling broad support across political lines Federal incentives like the IRA continue to shape the solar market, but awareness remains a challenge. That being said, homeowners overwhelmingly want the IRA to remain in place, showing that they're ready to take advantage of its benefits — provided someone can show them the way. Key takeaways: Installers who can clearly explain the IRA's financial benefits have a huge sales advantage in 2025 Homeowners who understand the IRA are twice as likely to actively seek ways to use it There is a massive education gap — bridging it can turn hesitant buyers into solar adopters Battery storage isn’t just about backup power: It’s an investment The data: Only 1% of respondents said they had no interest in battery storage 69% of homeowners were interested in battery storage to help lower their energy bills — surpassing resilience (56%) as the top benefit 72% are concerned about battery lifespan and replacement costs, showing that better education on warranties and ROI is needed The demand for solar + battery storage is evolving. While energy resilience remains important, financial motivations are becoming a key factor. What changed? Before: Storage was primarily about keeping the lights on during grid failures Now: Homeowners see it as a cost-saving tool, especially in states where net-metering policies changed (e.g., NEM 3.0 in California) One of the most important trends in the solar industry over the past year has been the increase in storage attach rate. Thanks to NEM 3.0, for example, Berkeley Lab found that by late 2024, California had a 60% battery attachment rate on residential solar projects compared to only 10% before 2023.  And it’s not just California. With many states revising net-metering policies to be less solar friendly, installers are seeing high storage attach rates across the country. This represents a real shift in how storage is used. While it has traditionally been a sale around energy resilience — keeping the lights on during outages — in many places storage can now deliver real ROI. And homeowners are starting to take notice. Key takeaways: In net-metering states, lead with the cost-savings story — storage maximizes ROI In storm- and/or disaster-prone areas, focus on energy security and resilience In some areas — especially California, Florida, and Texas — solar professionals will have more nuanced conversations around shifting policy changes and extreme weather Homeowners care about extreme weather & climate change The data: 60% of respondents believe “extreme weather events and climate change are impacting my area,” up from 41% in 2024 56% of Republicans and 67% of Democrats agreed with the statement  57% of homeowners listed “reducing my environmental impact” as one of their top 3 motivations for going solar A relatively new motivating factor is also emerging, and it’s one we’ve all heard of: climate change. And it’s not a political issue anymore — well over half (56%) of Republicans and two-thirds (67%) of Democrats agreed with the statement. There’s also not much difference when it comes to the homeowner’s age. At least 55% of people in every generation, from Baby Boomers to Gen Z, agree that climate change is impacting their life. What does this mean for installers? As we’ve seen, solar is still largely a money-saving purchase (63% listed this as a top reason), but more and more people are becoming aware of, and caring about, the effects of climate change.  Key takeaways: While saving money is still key, be prepared to tout environmental benefits Personalization has never been more important. Learn about each customer to determine which solar benefits resonate most with them Solar is bipartisan — period The data: 47% of Democrats and 55% of Republicans listed utility bill savings as their #1 factor for going solar  Reducing their environmental impact is a bigger driver for Democrats (18% selected it as #1 reason) than for Republicans (9%) Of those interested in solar, 39% are Republican homeowners and 38% are Democratic homeowners It can be tempting to draw conclusions about people and their motivations without having data. One overarching finding of this study is that solar transcends political views. Starting from the very first question — “Do you have, or are you interested in, solar on your house?” — when we split it out by political party, the results are stunningly similar. In fact, our survey of 1,039 people yielded 394 Democrats and 408 Republicans without including any selection criteria for political party. What’s more, 22% of both Republicans and Democrats in the sample already had solar on their home, while 78% were interested but had not yet installed solar. As we can see in the chart below, the top motivations for going solar is remarkably similar, regardless of political party… with one slight exception. While both Republicans and Democrats acknowledge being affected by climate change, just half the percentage of Republicans list reducing their environmental impact as their primary reason for going solar when compared to Democrats (9% vs. 18%). Reason for going solar Solar transcends political divides. And in large part, people in both major political parties have similar motivations for choosing solar. Democrat, Republican, Independent — everyone likes saving money and appreciates energy resilience. While different audiences may respond to different messages — some prioritizing savings, others focusing on sustainability — the value of solar remains universal. This is more than just a market opportunity — it’s a chance to push the industry forward. The solar community must advocate for policies and programs that make solar accessible to all. As demand continues to grow, ensuring solar remains accessible and widely supported will be key to its long-term success. Key takeaways: Cost savings is still the #1 motivator across all political affiliations Republicans are more motivated by energy independence, while Democrats prioritize independence and environmental impact equally The industry should frame solar as an economic and energy resilience investment first, with climate benefits as a secondary motivator Homeowners find it hard to trust solar professionals The data: 41% find it difficult to determine which solar companies are trustworthy (up from 22% in 2023) 67% prioritize strong warranties and support services when choosing an installer 55% say positive customer reviews are critical to their decision-making process Solar remains an attractive investment, but trust in solar companies has declined. High-profile cases of misleading sales tactics and failed installations made consumers more skeptical than ever. Trustworthiness of solar companies jumped to the top concern among people who had already installed solar and came in third for those who are interested but haven’t yet installed. No doubt the high-profile media reports about bad actors in the solar industry — as well as stories from unsatisfied customers — played a part. Finding a trustworthy solar company is difficult In 2023, just 22% of homeowners were concerned about finding a trustworthy solar company. In 2025, 40% of respondents had concerns about the trustworthiness of solar companies, with an additional 20% noting they heard of poor experiences with solar installers from friends, family, and/or online forums.This helps explain why “warranty and general maintenance” was the #1 concern about the solar install process among those who don’t yet have solar. When it comes to actually selecting an installer, strong warranty support jumps to 67%, while  proven technical expertise (56%), and positive customer reviews (55%) are also very important. Baby Boomers currently in the process of purchasing or interested in installing solar panels value strong warranty and support services the most (75%), followed by Gen X (68%), Millennials (60%), and Gen Z (49%). There’s a theme here that’s worth noting. For those in the industry, installing solar is an everyday thing, it’s routine. To homeowners? It’s a big financial decision — and likely one that not many of their friends, neighbors, or family members have made. What information was/would be most valuable when purchasing solar panels? We see in the data that the most valuable information for homeowners when deciding to go solar is savings estimates and other financial concerns. Then, when actually choosing an installer, the three most important things are warranty, reviews, and technical certifications. These can all be looked at as validators: reasons to believe you’re not making a big mistake — and assurances that your purchase is protected. Key takeaways: Increase transparency: Make financing, warranties, and contract terms crystal clear Strengthen referrals and case studies: Peer recommendations carry more weight than ever Invest in certifications and quality assurance: Homeowners are wary of fly-by-night installers Homeowners need better tools and information to choose solar Even with strong demand, many homeowners still struggle to navigate the solar buying process. How can installers help guide them through it? Here’s the information homeowners themselves say is most useful. Homeowner opinions on solar 2023-2025 The data is clear: Homeowners overwhelmingly want solar. It crosses age, income, gender, and, yes, even political affiliation. The overwhelming takeaway from our research, year after year, is that homeowners are interested in solar, battery storage, and whole home electrification. It’s up to the solar community to translate that interest into installs. Building trust, helping to educate consumers, and making it as easy as possible to buy will go a long way toward this goal. Business owner data Overcoming barriers and seizing opportunities Business owners have many reasons to go solar. Just like homeowners, the #1 driving factor remains cost savings, but the decision can be more nuanced for businesses. They generally have more complex taxes than individuals, and businesses may get some benefits to their reputation from being perceived as more “green.” And that’s just the beginning.  But, many businesses remain hesitant about solar due to a lack of clarity on costs, ROI, and financing options. Solar installers — which for commercial and industrial installs are often developers — have a unique opportunity to bridge this knowledge gap, build trust, and guide businesses through their purchase and install. Let's look at what’s driving business owners to install solar, how they choose an installer, what’s holding them back, and what solar installers can do to help.  Solar policy: Businesses want stability  The data: 52% of business owners say their business would be negatively impacted if the IRA were repealed or reduced 78% would like to make better use of the IRA’s benefits 71% benefitted from the IRA for upgrades that aren’t solar-related, such as electrification The IRA remains a widely recognized and utilized policy among business owners, and they want to keep it that way: 57% of business owners want the IRA to remain in place. Notably, 78% of businesses want to take better advantage of IRA benefits, and 71% already benefited from the IRA in other ways, such as electrification. These numbers highlight that commercial property owners are generally more aware of IRA benefits than homeowners, signaling an opportunity for targeted sales efforts. Business owners widely recognize and support the IRA Business owners largely aren’t concerned about losing access to incentives. This is true even in states with fluctuating energy policies, with only 20% of all business owners surveyed indicating concerns that federal incentives won’t be available when they go solar. This could simply be that business owners don’t fear incentives will actually be repealed. It also shows the appeal beyond cost savings, with many companies turning to solar to safeguard against utility price volatility and power outages. So, even while energy policies can and will shift, businesses recognize solar provides long-term energy cost certainty in an increasingly uncertain world, and ensures their operations can continue even if the grid goes down. Cost savings still matter  What is your primary motivation for considering solar? Those considering but not yet installed The data: 76% of respondents find a payback period of 9 years or less financially attractive, with the largest segment (35%) comfortable with 6-9 years The bigger the company by annual revenue, the more likely it is to have already installed solar Companies generating less than $100-500 million annually (53%) are the most concerned about affordability. Those making $5-10 million annually are actually the least concerned (35%) Businesses that have or are considering solar by annual revenue Do you currently have solar panels on any of your business properties? When given multiple choices, 63% of commercial property owners were most motivated by cost savings or potential gains — monthly bill savings, tax incentives, long-term investment, or increasing property value. This shows the universal truth: Financial benefits remain a critical factor in the solar decision-making process.They also see it as a long-term commitment, with 47% indicating solar is an investment that will eventually pay for itself. Yet, that “eventually” can’t be too long: 76% of respondents find a payback period of 9 years or less financially attractive, with the largest segment (35%) comfortable with 6-9 years.  For businesses with $100M to $500M in revenue, the average acceptable payback period is about 7 years, whereas businesses with $5M to $10M revenue prefer a payback period of 6 years on average. No respondents found payback periods beyond 15 years financially viable. All of this underscores the need for competitive financing and tax incentives to ensure that solar projects can offer an attractive return within these expected timelines. Provide cost transparency and financing support There’s no way around it, any investment as significant as a solar installation is going to come with cost concerns. And with solar most likely to be financed in some way, these concerns extend to financing options — including loans, leases, and PPAs. The more financing options, and the more informed an installer is about each, the better. Key takeaways: Provide side-by-side financing comparisons — including payback period — to clarify the best options Help businesses navigate tax credits and depreciation incentives with expert guidance Deliver bankable production estimates and financial analysis so clients can more easily secure financing Showcase case studies of similar businesses that successfully used financing to go solar Environmental impact and climate change concerns shouldn’t be ignored The data: 67% of all businesses in the survey believe climate change is impacting their operations 22% of businesses that already have solar cited reducing environmental impact as their primary reason for going solar 58% of businesses that have not installed solar yet cited reducing environmental impact as one of their top 3 reasons for going solar 54% cited energy independence as one of their top 3 reasons for going solar One of the most surprising findings from our survey was that 22% of business owners that already have solar selected reducing their environmental impact as the #1 reason for purchasing solar panels. For business owners, climate change concerns play a significant role in the decision to go solar, no matter what region they are in: 73% of businesses in the West agree climate change is impacting their business, along with 69% in the South, 65% in the Northeast, and 62% in the Midwest. Speak to business owners’ primary motivations While financial considerations are the top motivation for businesses considering solar, reducing their environmental impact and increasing energy independence follow close behind. Reminding them of how solar supports these goals in the sales process can help you close more deals. Key takeaways: Highlight the environmental impact of installing solar in your proposals Explore options for making your clients more energy independent Promote the environmental impact and energy independence of systems your company installed Trust in solar installers is a major concern for business owners Businesses concerns when purchasing solar Which of the following concerns, if any, do you have about purchasing solar panels? The data: 51% of businesses interested in solar have concerns over the trustworthiness of solar installers, followed by overall system and installation costs (44%) 54% of business owners in the process of purchasing solar said the most important factor in selecting an installer is positive customer reviews, ranking above transparency in pricing (42%) For business owners who already purchased solar, customer reviews were less important (37%), with factors like overall system and installation costs (49%) and warranty/support (46%) ranking higher These findings suggest that trust is a significant factor when companies are making the decision to go solar and choosing an installer. And business owners are going right to the source when it comes to getting information on a potential installer: other customers.  Once businesses make the decision and select an installer, they tend to prioritize cost considerations and system compatibility.So, when you’re selling to a potential customer, it’s important to remember that the solar community needs current happy customers to bring those new ones in. This means that when the sale ends, the work isn’t over. Make sure costs come in as promised, the install remains on time, and your crew is respectful to the customer (and their neighbors) while on site — and communication is clear throughout the process. It’s a tough balancing act, given the fact that one solar professional can’t control every aspect of a project — from sale all the way through install — but the right tools and technology can help.  Build trust While it may be a few bad apples spoiling the bunch, the trustworthiness issue creates an opportunity for installers to show they deserve that trust. Hard data and good references can set you apart from the pack.  Key takeaways: Use third-party data and case studies to validate performance and reliability Offer long-term O&M (Operations & Maintenance) contracts to ease concerns about system upkeep Present track record of successful commercial installations to build credibility Review designs, production estimates, and proposals in detail with your clients to give them confidence in your estimates Incentivize happy customers to leave reviews; referrals can pay off in the long run Business owners are driving solar growth, but trust, education, and cost remain key barriers The data shows solar still has great potential among business owners, but their motivations differ from homeowners’.  While cost savings is the major driver, environmental impact and energy independence ranked almost as high. While trust in solar companies remains a significant barrier for half (50%) of all business owners, those who moved forward to install tended to prioritize system cost first — likely because they found a trusted installer and moved forward. One key takeaway is the same for both groups, though: Customer education is key. Solar professional data Reflections on 2024 and the future 2024 tested the solar community. High interest rates made homeowners and businesses hesitant to commit, shifting net-metering policies added uncertainty, and broader policy questions loomed over the industry. Yet, despite these challenges, optimism remains.  This year’s survey reveals solar professionals are adapting, determined to guide customers through an evolving landscape. In this section, we’ll explore their outlook for 2025 and the strategies they’re using — from financing options to customer education and more — to keep the solar market growing. Inflation Reduction Act (IRA) & policy impact Financing and incentives go hand in hand in the solar sales process; educating the homeowner or business owner on the benefits they are eligible for is essential. Overall, installers feel the solar and electrification benefits made available through the IRA spurred interest, but installer feedback suggests many customers remain unaware of available incentives, and policy uncertainty continues to be a challenge for solar pros looking to close a sale.  50% noted increased interest in solar due to IRA incentives; this is about same compared to 2023 (48%) 70% of installers familiar with the IRA believe a repeal would negatively affect their business Awareness decreased slightly over time: In 2023, 79% were aware of the IRA. In 2025? 70% This year, we also asked installers if they “were not sure if [my] business would benefit from the IRA” — 20% said yes.  The majority of installers (60%) believe that homeowners are not aware of the benefits of the IRA Solar professionals believe their businesses would be negatively impacted if IRA were repealed Overwhelmingly, homeowners & businesses do not want the Inflation Reduction Act repealed Additionally, state policy changes, including the decline of net-metering incentives, are affecting demand. While 34% of installers reported increased solar demand due to state policies, 23% saw a decline, particularly in states that reduced net-metering compensation. Energy resilience as a driver for solar For the past three years, installers consistently pointed to a need for energy resilience concerns as a major motivator for solar adoption. From 2023 to 2025, installers said: 79% of installers saw an increase in energy storage paired with solar  The story remains the same for the amount of interest in solar due to the adoption of EVs by homeowners at about 78% There was a slight decrease in interest in solar due to natural disasters, falling 5%, from 65% in 2023 to 60% in 2025. California: 77% noted increased interest in solar following natural disasters  Gulf: 76% noted increased interest in solar following natural disasters   Northeast: 41% noted increased interest in solar following natural disasters  Homeowner trends observed by Installers Solar plus storage continues to grow One area where installers saw a large increase in interest was in storage attach rate: 78% of installers reported an increased interest from homeowners in pairing energy storage with solar installations — including 42% reporting a “large increase.”  As you would expect, there were large regional differences, with this trend being driven by policy changes like NEM 3.0 that make battery storage a cost-saving investment (in addition to the usual backup model). For example, in the West — a large part of which is California — a whopping 89% of installers indicated increased interest in solar + storage. This is a real bright spot, and one we should expect to continue, as utilities and regulating organizations increasingly adopt time-of-use rates and variable export rates, and other policies that: 1) decrease the price homeowners get for solar power they export during daylight hours, and 2) increase the cost they charge homeowners for electricity during peak times. The growing challenge of solar financing and how installers can lead the way The financing challenge High interest rates have changed how homeowners and businesses approach solar financing. Gone (for now) are the days of low-interest solar loans, making affordability a top concern in the decision-making process. Survey data shows cost remains a hurdle to solar adoption: 23% of customers abandon projects due to cost concerns 10% walk away over uncertainty about ROI 7% cancel because they can't secure suitable financing Solar installers underestimate homeowners’ cost concerns The shift toward third-party ownership (TPO) As traditional loan financing becomes less attractive, third-party ownership (TPO) models like leases and power purchase agreements (PPAs) are filling the gap. More than half of installers (51%) now report that their customers prefer TPO over cash or loan financing. Why? TPO offers: No upfront cost: removing the biggest financial barrier. Predictable payments: making budgeting easier in a high-rate environment. Simpler qualification: helping more homeowners get approved. This shift underscores a new sales reality: Installers who clearly explain TPO options are more likely to convert more hesitant customers into buyers. Aurora and HelioScope data Trends in system size and price per watt (PPW) The U.S. solar market faced headwinds in 2024, particularly due to high interest rates and shifting net-metering policies. However, there are still strong opportunities for solar installers to focus on in 2025. Below is an analysis of the trends from Aurora (residential) and HelioScope’s (commercial) combined 7,000+ customers, highlighting areas where solar professionals can find growth. Aurora residential solar trends: system size and PPW shifts Mean residential system size: 7.6 kW in 2024 (-9% YoY) Homeowners may be opting for smaller systems due to cost concerns, which could be a strong opportunity to sell battery storage for energy resilience and long-term savings. PPW decreasing nationally: national mean PPW: $3.74/W (-7%) The 7% drop in the national mean PPW to $3.74/W, could indicate a reduction in the hard costs, despite potential homeowner sentiment.  Residential solar opportunities in 2025 Battery storage demand growing: Battery add-ons surged +67% YoY in 2024, presenting a strong upsell opportunity. With homeowners opting for smaller systems, storage solutions are increasingly attractive for energy resilience and long-term savings. Competitive pricing strategies: Lower PPW can indicate cost reductions, but also margin pressure. Installers should differentiate through financing solutions, premium offerings, and performance guarantees. HelioScope commercial solar trends: system size and PPW shifts System Size and PPW Developments Median Commercial System Size: 340 kW (-25% YoY) Smaller projects (<300 kW) remain a core market segment PPW Declining Across Regions: National mean  PPW: $2.30/W (-11%) Commercial solar opportunities in 2025 Emphasizing Smaller Project Demand: While large PPA projects grab attention, most commercial demand remains in sub-300 kW installations Smaller rooftops across industrial and commercial sectors present steady opportunities. Competitive Positioning in a Lower PPW Market: As hardware costs decline, project economics improve, allowing for expanded market reach Installers should focus on financial solutions, such as PPAs, tax credits, and energy cost savings messaging to differentiate themselves. Installers who adapt their strategies — focusing on financial solutions, storage, and high-growth regions — will be well-positioned for success in 2025. Methodology This report was informed by multiple data studies: Coleman Parkes Homeowner and Business Owner Study Aurora Solar commissioned Coleman Parkes, an independent market research company, to conduct the research. Two distinct surveys were employed using an online (CAWI) methodology, ensuring a broad, representative sample of participants. Commercial Property Owner Survey:This survey targeted 500 business owners in the United States who own businesses with annual revenues of $5 million or more and operate directly from their site(s). All participants were pre-screened to exclude those who rejected the idea of adopting solar panels. The objective was to capture insights from businesses that are both financially capable and open to solar solutions. The fieldwork for this survey was conducted between January 16 and January 31, 2025. Homeowner Survey:The homeowner survey included 1,039 participants across the United States, specifically targeting individuals who were not opposed to the adoption of solar panels. This group was selected to ensure responses were relevant to those considering or open to solar energy solutions. The fieldwork for this survey was conducted from January 7 to January 10, 2025. Note: there were 1,001 respondents screened out due to lack of home ownership, their property already had solar, or they were not interested in purchasing solar. 803 people were not interested in solar.  Both surveys were designed to gather comprehensive insights into the current attitudes toward solar energy, with a focus on participants’ willingness to engage with solar solutions. The methodology ensured that only individuals who were not outright dismissive of solar technology were included, offering valuable perspectives on adoption potential. Dynata Homeowner Survey Homeowner insights referenced from 2023-2024 for this report were obtained via a survey of 1,000 U.S. adult (18+) homeowners who had expressed interest in solar, and was conducted by Dynata in January 2024 and January 2023. As the world’s largest first-party data company, Dynata has a global reach of more than 62 million consumers and business professionals, fully permissioned with billions of verified data points. Dynata uses a variety of online sample sources and recruitment measures to invite its respondents and panelists for survey research participation. Aurora Solar Proprietary Data Study Findings pertaining to Aurora Solar’s system size and pricing data examine residential and C&I projects created in Aurora and HelioScope between 2021 and 2024, with the following parameters: The state region is based on U.S. Census Regions. Project size looks up the median size of projects designed in Aurora and HelioScope. Since each project may contain multiple designs, only the most recent design is used. Project pricing looks up the median price per watt (cash price) of projects quoted in Aurora and HelioScope. Excludes outliers. Note: A residential project is one that is marked as “residential” by the user and has a system size of 50kW or less. Qualtrics Residential Solar Professionals Survey Residential solar professional insights for this report were obtained via a survey of 900 U.S. solar professionals conducted by Aurora Solar. The online survey was distributed via Qualtrics in February 2025 with built-in quality checks to monitor attention and response time. The target population for this study was defined as U.S.-based professionals actively involved in the residential solar industry, including roles in sales, design, operations, marketing, engineering, installation, and C-suite.Confidence Interval calculated at 95% ### Aurora AI v2: Powering more solar projects than ever Aurora AI v2 is now faster and more accurate than ever, thanks to a larger dataset, key infrastructure upgrades, and advanced training techniques. It can now generate a 3D model in under 10 seconds, detect obstructions with 25% more accuracy, and provide more consistent outputs whether you run AI SmartRoof or AI Roof Faces. Watch now to discover the latest enhancements in Aurora AI v2 and explore real-world success stories from customers who have streamlined workflows, reduced errors, and improved project efficiency. Discover how your team can harness AI-driven automation to work faster, reduce costs, and stay ahead in the evolving solar market. Key Takeaways: How Aurora AI v2 improves design speed and accuracy with advanced automation, saving valuable time for your team. Practical ways sales and design teams can leverage Aurora AI to streamline workflows, collaborate seamlessly, and scale operations. Real-world results from solar companies using Aurora AI to boost efficiency and achieve measurable success. ### Winning with TPO: faster approvals, fewer change orders, and seamless sales Join us for a deep dive into Aurora’s new TPO integrations and discover how Sales Mode can streamline your TPO project funnel while delivering a seamless experience for homeowners. Learn how Aurora’s unmatched accuracy — trusted by top TPO providers — significantly reduces change orders and accelerates the approval process, unlocking faster payouts. We’ll showcase real-life customer examples, including cases where change orders were reduced by 75% and installations reached the market more swiftly, and explore key TPO trends, including its growing market share, so you can stay ahead in this evolving landscape. Register now! Click the image to register! ### Powering growth: How Our World Energy streamlined TPO operations and saved 48+ hours per project Our World Energy (OWE) scaled its third-party ownership (TPO) financing strategy to meet growing homeowner demand, but faced operational bottlenecks due to frequent change orders and inefficiencies. By adopting Aurora Solar’s AI-powered platform, OWE reduced change orders from 40% to less than 10%, cut site survey times in half, and saved up to 72 hours per project. Seamless design accuracy and integrated workflows enabled OWE to expand into high-demand markets while maintaining efficiency. Now, with 85% of its projects TPO-based, OWE continues to deliver precise, trust-building solar solutions. See how OWE is setting the standard for scalable solar success. ### How Solaris Renewables thrives with Aurora’s all-in-one solar platform We've all heard of the concept of an all-in-one solar platform, but what does it mean in practice? And how can it help your business? For Solaris Renewables, Aurora's all-in-one platform has helped them increase their close rate by 5-10%, create custom proposals about three times faster (less than 5 minutes per proposal), and ultimately double their project throughput. Get all the details, and actionable intel on exactly how Solaris did it, and why, in the full case study. ### 25% Fewer Change Orders, 2 Hours Saved Per Project: Kasselman Solar’s Success with Aurora Solar Discover how Kasselman Solar, a leader in New York's solar industry, overcame workflow inefficiencies and design inaccuracies with Aurora Solar's Expert Design Services. By automating pre-sales workflows and leveraging permit-quality 3D designs, they achieved a 25% reduction in change orders and saved 2 hours per project. This streamlined process eliminated 10% of manual errors and improved customer satisfaction, enabling the team to focus on delivering exceptional solar solutions. Learn how Aurora's integration transformed their operations and customer experience. ### Success Beyond the Sale: Elevating Post-Sales Processes with Aurora Solar In the solar industry, closing a sale is just the beginning. A well-optimized post-sales process is key to sustaining customer satisfaction, reducing delays, and ensuring project profitability. In this webinar, we’ll explore how you can empower your team to streamline post-sales workflows. From generating precise plan sets to enhancing communication with customers, this session will equip you with essential tools to excel beyond the sale and drive long-term success. Key Takeaways: Leveraging plan set tools to improve design accuracy and efficiency Best practices for maintaining customer satisfaction after the sale Effective strategies for overcoming permitting and inspection challenges ### Enhancing accuracy with EagleView Powered Models in Aurora To stay competitive in the ever-changing solar market, residential designers and installers need accuracy at every step of the design process. Anything that wastes time and resources, from change orders to extra site visits, can put your company at a disadvantage. But where to begin? Download our e-book to see how you can measure less and install more with the most accurate roof measurements available. ### Empowering Efficiency: NYSS Cuts Survey Time by 40+ Minutes with EagleView Powered Models NY State Solar (NYSS) has transformed its operations by integrating EagleView Powered Models (EVPM) into Aurora’s platform. With EVPM, NYSS reduced site survey times by 45+ minutes, eliminated repeat visits for 20% of projects, and doubled the speed of project true-ups. These efficiencies allow them to schedule 2–3 additional surveys per week and confidently tackle complex projects, including multi-story homes. By streamlining workflows and enhancing accuracy, NYSS has accelerated installations, expanded into new markets, and continued to deliver exceptional customer experiences. ### New Precision Powered Tools for Slashing C&I Solar Design Time Slash your C&I solar design time with HelioScope’s latest innovation: Similar Obstruction Detection — the first AI-based obstruction detection solution for large-scale C&I solar projects. Powered by Aurora’s proprietary computer vision technology, this new feature simplifies and speeds up the process of identifying and creating keepouts for rooftop obstructions, freeing you up to focus on more valuable tasks.  In this webinar, you’ll learn how to pair Similar Obstruction Detection with LIDAR, Independent Tilt, bulk actions, and new keyboard shortcuts to create accurate designs faster, with significantly less manual effort. Discover how these advanced tools will help you not only scale your business and deliver greater value to your customers but also stay ahead of the competition, giving you a competitive edge in the market. Key Takeaways: Speed up preliminary design creation with Similar Obstruction Detection  Leverage LIDAR data to enhance design accuracy and accelerate design creation Save time and boost productivity with other new features in HelioScope, like keyboard shortcuts, bulk actions, and Independent Tilt ### Optimizing Your TPO Project Funnel: Accuracy, Flexibility, and Faster Approvals with Aurora Join us for a deep dive into Aurora's new TPO integrations, and learn how Sales Mode can help you streamline the TPO project funnel and deliver a seamless experience for homeowners. Discover how Aurora’s unmatched accuracy, trusted by TPO providers themselves, reduces change orders and speeds up the approval process, unlocking faster payouts.  With best-in-class TPO partners and customizable proposals, you’ll gain the flexibility to optimize your financing offerings for any market and provide a consistent, high-quality experience with every project. Learn how to boost efficiency, minimize cancellations, and close more deals by leveraging the industry’s most trusted platform for TPO projects.   In this webinar you will learn how: To minimize change orders and delays in TPO projects. Aurora's integrations with top TPO providers deliver flexibility across multiple financing products and markets. To enhance efficiency and boost your TPO project success. ### Achieve Unmatched Solar Design Precision with EagleView Powered™ Models in Aurora Discover how EagleView PoweredTM Models, exclusively available within Aurora, combine the industry’s most precise 3D models with the best-in-class Aurora simulations and design platform. This webinar will explore how this integration can streamline your operations, maximize ROI, and enhance post-sales accuracy. We’ll also examine the efficiency gains from reducing on-site surveys and the benefits of superior obstruction detection. In this webinar, you’ll learn how to: Reduce change orders due to fitment issues using EagleView PoweredTM Models Decrease time required for onsite surveys, saving you time and money Achieve best-in-class obstruction detection and unmatched design accuracy ### TPO Cheat Sheet — More TPO Options = More Sales More TPO options = more sales. Third-party ownership (TPO) is becoming more and more popular with homeowners looking to avoid high interest rates or upfront costs. But what exactly is TPO, and how can you use it to grow your business? This TPO Cheat Sheet walks through why you should offer TPO options, and how to make your offer most attractive — all in a quick, easy-to-read format. Get it free! ### Unlocking the Power of Data: Revolutionizing Commercial and Utility-Scale Solar Utility-scale solar is booming in 2024, with 12 gigawatts deployed in the first half of the year — double the amount from 2023. This growth reflects the increasing demand for renewable energy, positioning utility-scale projects as a critical driver of the U.S. energy transition. If this pace continues, 2024 could see a record 37 gigawatts of new capacity. Despite this growth, solar investors, developers, and EPCs face significant challenges, including permitting delays, rising interest rates, and potential tariffs. As projects grow larger and more complex, the need for innovative solutions is greater than ever. This playbook explores how data and AI can unlock new efficiencies in site assessment, design, performance forecasting, and more. Packed with insights, it offers strategies to help solar stakeholders stay competitive in an evolving market. Whether you're a solar investor, developer, or EPC, this playbook is packed with insights to help you stay competitive and lead the way in the utility-scale solar revolution. Don't get left behind — dive into the strategies that are shaping the future of solar. ### From Solar to Heat Pumps: Mastering Whole Home Electrification According to Aurora Solar’s 2024 Solar Industry Snapshot, 37% of homeowners feel solar is more valuable when paired with whole home electrification. But what exactly is whole home electrification? What incentives are out there? And how can homeowners benefit? Our free new e-book, “From Solar to Heat Pumps: Mastering Whole Home Electrification,” has the answers to those questions and many more, including: Trends to keep in mind Incentives and policies to know Common myths, busted A checklist for getting started Read it now to start electrifying today. ### 75% Storage Attach Rate: How Cape Fear Solar Systems Sets the Standard Cape Fear Solar Systems (CFSS) has been at the forefront of solar energy innovation since 2007, delivering top-tier solutions that empower homeowners and businesses in North Carolina. Their story highlights how adopting Aurora’s platform has significantly enhanced their sales process, particularly in the growing solar+storage market. By leveraging Aurora's advanced tools, CFSS achieved a 75% storage attach rate and a 10x return on investment. The story also showcases their streamlined proposal process, which has saved over 180 hours, and their continued commitment to sustainability with over 4,800 installations completed. Discover how CFSS is setting new benchmarks in the solar industry through cutting-edge technology and customer-centric strategies. ### Adapting and Thriving: projetsolaire’s Path to Rapid Growth in the French Solar Market Discover how projetsolaire.com has rapidly grown to become a leading force in the French solar market. By leveraging cutting-edge technology like Aurora Solar, they have empowered over 520 local installers to deliver precise, transparent, and efficient solar solutions. Starting from just 67 installers, projetsolaire.com expanded their network more than sevenfold within a year, while their annual installations surged from 200 in 2021 to over 4,000 in the first half of 2024. Learn how their commitment to innovation and accuracy is transforming the solar landscape in France. ### Building Resiliency: Expanding From Solar to Whole Home Energy Proposals Explore the future of solar energy with our webinar, "Expanding from Solar to Whole Home Energy Proposals." Aurora Solar and Earth Right Mid-Atlantic join Solar Power World to share their vision for comprehensive energy solutions that go beyond traditional solar-only installations. This webinar highlights the shift towards a holistic approach to home energy, where electrification and energy efficiency measures are integrated into solar proposals. Don’t miss this opportunity to hear firsthand how AI-powered design tools and advanced consumption modeling are transforming the industry. In this webinar you'll learn: Valuable insights on the benefits of adopting a whole home energy solution into your sales process How to work with homeowners to design their roadmap to higher energy efficiency How to increase referrals by working with homeowners to address all their energy needs How to create comprehensive and future-proof whole-home energy proposals with Aurora’s cutting-edge software ### Mastering Battery Storage Modeling in Aurora: Trends, Tools, and Techniques Join us for an insightful webinar on designing solar systems with integrated battery storage, featuring Gabe Amey, Chief Marketing Officer of Cape Fear Solar Systems. We’ll walk you through how to design and pitch personalized solar + storage solutions in Aurora based on customer needs, such as backup, grid independence, and bill savings. Then, Gabe will share insights and best practices based on his experience selling in North Carolina, where time-of-use rates and limited capacity storage incentives are in play. Whether you're looking to get started selling storage or refine your storage pitch, this session is tailored to equip you with the necessary tools and strategies to succeed. You’ll learn: How to design the optimal battery storage solution to create seamless proposals, whether for backup, self-consumption, or energy arbitrage How to show how battery storage can optimize bill savings, even in time-of-use markets How to customize storage configurations to meet each customer’s needs and close more deals efficiently Insights from Cape Fear Solar Systems on how they’re using storage modeling to educate homeowners and sell more storage Don't miss this opportunity to gain valuable insights and practical strategies from industry experts and enhance your solar + storage offerings! ### The 5 Minute Storage Sales Cheat Sheet Whether it’s for EV charging, taking advantage of TOU and variable export rates, or just peace-of-mind, interest in storage is exploding… but that doesn’t necessarily mean sales. That’s why we created this cheat sheet. Learn how to position storage effectively when pitching it in your sales proposals and how to vary your pitch based on the homeowner’s needs. Access it now to learn: How to position storage based on the homeowner’s needs When to model storage backup and consumption in Aurora How to use current incentive programs to boost storage sales ### The Pocket Guide to Selling Storage According to Aurora's Solar Snapshot, three-quarters of installers saw increased interest in solar + storage last year. But despite the increased interest — and market growth — a lot of installers are still having a hard time successfully converting buyers. To help you grow your storage business, we put together this Pocket Guide to Selling Storage. Inside you'll find: How to position storage to a new customer Common objections you'll come across and how to overcome them Detailed analysis of specific storage use cases: backup, self-consumption, and energy arbitrage Get the guide and jump start your storage sales today! ### HelioScope vs. PVsyst: What's the Difference? Join us to explore the key differences between two leading solar design tools: HelioScope and PVSyst. We’ll examine what the process looks like to align HelioScope’s estimates with PVSyst’s, focusing on opportunities for error reduction in rooftop applications. Whether you're looking to optimize your solar design process or simply curious about the technological differences, this webinar will equip you with the knowledge to make informed decisions in your solar projects. Join us to learn: What the process looks like to align HelioScope’s estimates with PVSyst’s How to streamline the input process, minimize human error, and increase accuracy The benefits of using HelioScope vs. PVSyst with project simulations. ### Empowering Energy Independence: How MSS combines Solar with Storage Michigan Solar Solutions (MSS) excels in combining solar installations with advanced storage solutions, achieving an impressive 45% storage attach rate, far surpassing the industry average. Utilizing Aurora’s cutting-edge storage modeling, MSS provides tailored proposals that meet homeowners' specific needs for energy independence and reliability. With Aurora’s AI-powered design tools, MSS has significantly reduced design time by 70%, while achieving a remarkable 98% accuracy in production estimates. This efficiency and precision have not only streamlined operations but also built strong customer trust, positioning MSS as a leader in the solar industry. ### How Sunrun Uses HelioScope to Scale Efficient Solar Solutions in Multifamily Housing Sunrun, a leader in bringing solar energy to multifamily housing, partnered with HelioScope to streamline their complex design processes. By integrating HelioScope's Commercial Modeling Services (CMS), Sunrun overcame operational inefficiencies and design bottlenecks, achieving a 27% year-over-year increase in proposal delivery. The Villa Loma project in California exemplifies their impact, saving residents an average of $60 per month on electricity. CMS enabled Sunrun to deliver accurate 3D designs within 24 hours, saving 2,208 hours annually. This partnership has revolutionized their approach, setting new standards in solar project efficiency and scalability. ### Design Precision Redefined: How to Leverage EagleView’s Detailed Imagery The foundation of any good solar design is a detailed, high resolution, aerial image. The higher the image’s fidelity and clarity, the easier it is to design an accurate system for your customers. In this webinar, we’re joined by EagleView, a leader in aerial imagery. We’ll show you how to use EagleView’s crystal-clear, highly detailed imagery to level up your solar designs in Aurora. You’ll learn how EagleView in Aurora can: Give you detailed imaging covering 94% of the U.S. Increase your design accuracy and streamline your design processes Reduce truck rolls, saving you time & money ### Selling Solar in 2024: Key Insights from the Latest Industry Report In 2023, the U.S. residential solar industry navigated through growth and challenges, shaped by rising interest rates, policy shifts, and evolving financing dynamics. Despite these challenges, the 2024 Aurora Solar Industry Snapshot Report reveals significant opportunities, highlighting the sector's resilience and potential for expansion. This webinar delves into the 2024 Solar Industry Snapshot, using Aurora Solar’s extensive database of over seven million solar projects, insights from homeowner surveys, and expertise from more than 500 solar professionals. We will explore how the industry can continue to thrive amid obstacles, providing participants with actionable insights to enhance sales strategies and capitalize on emerging opportunities. In this webinar, you’ll learn: Strategies to build homeowner trust in 2024, supported by comprehensive data Current trends and future projections for solar adoption Essential tools to navigate present challenges and seize opportunities in 2024 and beyond ### Operational Efficiency: A Deep Dive into Improving Your Post-Sale Workflows Join us to learn how you can enhance your solar operations, saving time and money while increasing sales success. We'll dive into the core elements that set high-performing solar companies apart and explore how these insights can be applied to your operations in 2024 and beyond. From optimizing project planning and execution to mastering post-sale workflows, this webinar is a comprehensive guide for solar professionals. Join us to learn: Actionable strategies for operational efficiency that can be implemented throughout the entire solar project lifecycle Strategies deployed by successful solar pros to stay ahead Insights that will position you for success in the evolving solar market ### The Solar Sales Toolkit A big part of selling solar is educating homeowners on its benefits. Just as important is educating homeowners in the way that's best for them. Do they want you to explain it to them? Do they want to read for themselves? Do they want something printed out? Inside you’ll find: Solar 101: The basics of a solar installation from what solar energy is to how we use it How to read an electric bill Solar storage in practice System costs & benefits primer No matter how each of your customers learns, this Toolkit is all you need. Read it for yourself and pass the knowledge on or send them a link and let them peruse it at their own pace. ### The Commercial Solar Starter Bundle Dive into the commercial solar market with confidence using our starter bundle. Packed with expert insights from industry leaders, these resources address key challenges and reveal the tools you’ll need to enter this growing industry. Whether you're a newcomer or looking to expand, our bundle is designed to guide you through the journey of becoming successful in the solar industry. Inside the bundle you’ll get: Ebook: The Big Book of Commercial Solar Software Must-Haves Webinar: Expanding into C&I: Discover the Tools Needed for Success Webinar: The Art of Commercial Solar Design: Your HelioScope Walkthrough Webinar: Beyond the Basics: Advanced Tactics for Commercial Solar Optimization Case Study: Skyview Ventures’ Route to 20% Yearly Growth and Accelerated Solar Design Unlock your free bundle now! ### Innovating Solar Sales with Software To succeed in solar sales, building homeowner trust is key. To do that, you need up to date, accurate, and reliable software — continuous innovation is not an option, it’s a requirement. Over the past 20 years, change has been one of the only constants in the booming US solar industry, which itself continues to evolve in many unique ways from state to state. In this guide, solar professionals will get actionable strategies on adopting innovative sales tools like Aurora Sales Mode to drive revenue growth and scale sustainably, including: The opportunities and challenges in the current market Strategic planning tips and tricks How to generate and measure ROI … and much more. Download the guide now to get started! ### Simply Solar's Journey from Sales to Install with Aurora AI and Plan Sets Adopting Aurora AI and Plan Sets, Simply Solar significantly refined its workflow, elevating project accuracy and operational efficiency. This pivotal move enhanced both the design and installation phases, leading to heightened customer satisfaction. With this step, Simply Solar showcases its commitment to embracing innovative solutions for sustainable solar energy. ### Beyond the Basics: Advanced Tactics for Commercial Solar Optimization Join us as we discuss cutting-edge strategies to maximize the potential of your commercial solar projects. From precision in solar panel placement, even in the most complex scenarios, to harnessing the power of predictive modeling for unparalleled project performance, we'll equip you with the tools to navigate challenges and seize opportunities. We’ll also explore the intersection of compliance and efficiency, gaining a nuanced understanding of design considerations crucial to your success. In this webinar, we’ll cover: Strategies for optimizing solar panel placement in complex scenarios Predictive modeling for project performance Design considerations for compliance and efficiency Don't miss this opportunity to take your skills to the next level. Register today! ### The Art of Commercial Solar Design: Your HelioScope Walkthrough In this demo, we’ll walk through everything you need to know about designing a commercial solar system in HelioScope. You’ll gain practical insights into optimizing system performance, overcoming common design challenges, and integrating the latest industry standards to meet the specific needs of commercial solar projects.  From overcoming the learning curve to mastering sophisticated design tools, we’ve got you covered. If you have any burning “how to” questions, come join us! ### Data-Driven Transformation: Utility-Scale Solar Development in the Digital Age This webinar will explore the pivotal role of data and AI in reshaping the landscape of large-scale solar projects. From harnessing data analytics for site selection and resource assessment to optimizing construction and operation through real-time monitoring, you’ll gain valuable insights into the power of data-driven decision-making. Join us to explore the intersection of technology and utility-scale solar development, unlocking the potential for increased efficiency and success in the evolving digital era of renewable energy. Join us to learn: Understand the increasing role of data and AI in large-scale solar projects Learn how to leverage data analysis to ensure maximum performance and reliability Explore cutting-edge tech to drive success and efficiency. ### The 2024 Solar Industry Snapshot It’s no secret: 2023 was a challenging year for the U.S. residential solar industry. While installs kept growing, and installed capacity reached new highs, new roadblocks made this one of the more challenging years in recent memory. While we may be in a dip of the ride, we can see the ascent ahead of us. But when? And how? The data in this report will reveal the challenges the industry faces today. But it will also spotlight areas of hope, new growth, and technologies that are leading the way. This is the second annual Solar Industry Snapshot, and it certainly shows a different environment than last year’s. We again looked at three unique datasets: Aurora’s own database of solar projects, a survey of homeowners, and a survey of solar professionals. Get the full report below for a pulse check of where the solar industry is in 2024, where the potential areas for growth are, and what potential roadblocks lie in wait. ### Mastering the Art of Trust-Based Selling Recent Aurora research also showed that 50% of homeowners find it hard to determine which solar contractors are legitimate. Unfortunately, this problem affects all solar contractors, even the ones who are doing things right. So, what exactly can legitimate solar installers do about this? It’s called “trust-based selling.” In this guide, you'll learn: What trust-based selling is How trust-based selling can increase your sales How Aurora’s Sales Mode enables trust-based selling every step of the way ### The Big Book of Solar Software Must-Haves for Design Pros Solar software has become an integral tool for design professionals. But with the amount of software solutions currently on the market, it can be difficult to discern which provider is worth investing in to address your company’s needs.  This comprehensive guide explores the design software must-haves you need to succeed in this increasingly complex — and crowded — solar market. We’ve also included some special sales features that make the top software solutions stand out from the rest of the competition. ### Speed to Lead: Increasing Your Solar Sales with AI and Automations According to recent solar studies, 27% of homeowners felt that getting solar was a lengthy and difficult process. And installers are noticing similar friction, with 1-in-5 solar installers experiencing homeowners being reluctant to commit to quotes. One of the most important factors to successfully selling solar is how smooth you can make the buying process for the homeowner. Join Aurora Solar as they share how to use smart automations that can help you create a better sales experience for your customers. In this webinar you will learn how to: Speed up your site modeling from minutes to just 15 seconds Use smart automations to remove friction from your process Keep the the homeowner engaged and answer their questions ### The Big Book of Commercial Solar Software Must-Haves Powerful commercial software has become an integral tool for solar professionals. But with the amount of software solutions currently on the market, it can be difficult to discern which provider is worth investing in to address your company’s needs.  To help businesses navigate the commercial solar software landscape, we’ve created The Big Book of Commercial Solar Software Must-Haves.  Inside you’ll find:  14 Must-have features you should have for design, financing, and sales 10 Smart features that can accelerate your business and optimize your processes  2 DesignOps bonus features that will amplify your team’s value and impact at scale  Download the guide and start unlocking more opportunities for your solar business today. ### The HelioScope Edge: Davis Hill Development's Route to 30% Yearly Growth and Accelerated Solar Design Witness the impactful synergy as Helioscope accelerates design, slashes timelines, and fuels a forecasted 30% growth for Davis Hill Development. From boosting bid confidence to delivering 20+ more proposals annually — each worth tens of thousands of dollars — dive into the success story of Davis Hill Development with HelioScope. This partnership is reshaping the landscape of clean energy projects, setting new standards for efficiency and excellence. ### The Blueprint for Success: Designing High-Performance Solar + Storage Systems Are you a solar industry professional looking for ways to stay ahead of the curve? Join us as we explore the latest advancements in solar technology, shedding light on design principles and innovations to optimize solar + storage efficiency. We'll examine trends in storage capacity optimization and seamless storage integration to create high-performing energy systems. In this webinar, you’ll learn: How to design robust, high-performance solar and storage systems Strategies for optimizing storage capacity to enhance overall system performance The latest advancements in solar technology ### How to Get Permit-Ready Solar Plan Sets Directly From Aurora Whether it’s your first design or 100th installation, creating compliant and accurate plan sets is one of the most laborious and important aspects of your PV project lifecycle. Without high-quality, accurate solar plan sets, you may run the risk of being denied a permit, leading to project delays, increased costs, and a handful of avoidable headaches. In this demo, we’ll show you how you can streamline your permitting process using Aurora’s Plan Sets Service. Aurora's Plan Sets Service offers dependable and AHJ-ready plan sets, inclusive of essential engineering stamps, as and when needed. Join us to learn how you can: Get accurate, stamped permit-ready plan sets directly from the Aurora app Achieve higher approval rates with Aurora’s AHJ identification process Improve team efficiency with well-defined workflows ### Elevating Trust and Efficiency in Solar Solutions with Freedom Forever and Boundless Embark on an illuminating journey through the partnership of solar pioneers Boundless and Freedom Forever. Discover how their strategic integration of Sales Mode is reshaping the solar industry, fostering trust, and delivering sustainable energy solutions. ### Artificial Intelligence & Aurora Solar — 2023 Report AI can already recognize patterns, predict future trends, write essays, and even create images. And while its popularity has grown quickly, finding the best ways to apply the technology won’t happen all at once. This is especially true in the solar industry, as Aurora and others have made significant progress in the ways we use AI, and also see the potential for more. Aurora AI already: Generates 3D models in about 30 secondsHas been run over 1.6M times since its launch 70% of the runs are completed to create sales proposals In this report we share in-depth data on some of the benchmarks we’re tracking, discuss what we've learned so far, and look at how AI will help solar installers become more efficient in the future. ### Propelling Solar Sales: Orizon Energy's 400% Growth and Game-Changing Proposal Speed Discover how Orizon Energy, founded by Oren Zamir in 2021, revolutionized the solar energy market with their innovative, no-pressure sales approach and partnership with Aurora Solar. This case study explores Orizon's challenge of establishing trust in a new market, their solution through lightning-fast, data-driven proposal generation, and the remarkable impact of these strategies on their sales and operational efficiency. Witness Orizon's impressive 400% growth, driven by their commitment to transparency, accuracy, and customer education in the solar industry. ### Enhance Your Sales Strategy with the Latest Aurora Updates You’re invited to Aurora’s Quarterly Product Release Webinar series! Join us for product updates, new releases, and conversations with leaders from Aurora’s product team. Discover how the latest Sales Mode updates provide a dynamic and adaptable approach to your proposals, empowering your team to navigate diverse customer needs and preferences. We’ll also explore the enhanced user settings and utility rate configurations. These updates will add more precision to your sales, ensuring accurate system designs and giving homeowners a comprehensive understanding of energy costs. This webinar will show you how these updates: Help ensure accurate savings estimates, even in deregulated and international markets Equip your dealers for success with comprehensive partner and user settings Adapt quickly by tailoring individual proposals to your customer preferences ### Expanding into C&I: Discover the Tools Needed for Success The C&I sector is booming, and there are plenty of opportunities for installers. If you're considering entering the commercial solar market, join us to learn about the essential tools to fast-track your entry into C&I. From overcoming the learning curve to mastering sophisticated design tools, we've got you covered. Don't miss out! Register today to learn how you can thrive in this profitable sector. Join us to learn how HelioScope can help you: Speed up your design to sales handoff with LIDAR Avoid error-prone data entry and keep your teams synced with APIs Create a better customer experience and close fast with financial analysis tools ### Simplify Solar Financing with Aurora & Dividend Exciting news for solar contractors! Dividend has joined Aurora Solar’s sophisticated yet easy to use, cloud-based sales and design platform. Simplify the solar proposal and design process to offer your prospects a more personalized experience.  Aurora’s Sales Mode enables you to provide a customized solar experience and even secure loan pre-approval directly* within the Aurora platform. With Dividend’s integrated financing, you can streamline loan pre-approval and documentation to unlock more revenue, achieve higher close rates, and provide a simple, accurate, and easier experience for your customers. In this webinar, you’ll learn how you can: Increase sales while saving time with Dividend’s streamlined financing process Avoid redundant and error-prone data entry across multiple systems Build trust and provide a better customer experience from proposal to PTO ### From Weeks to Minutes: CertainTeed's Efficiency Leap with Aurora AI CertainTeed adopted Aurora Solar's platform, including Sales Mode with Aurora AI, reducing the solar sales process from weeks to 10 minutes in front of homeowners. Aurora's support and services facilitated contractor onboarding and improved the overall customer experience. ### How to Sell with Credibility in a Changing Market Trust, education, and professionalism are always at the core of solar sales. It’s not enough to sell your prospects on the value of solar. You need to sell them on your company and prove to them why you’re the best one for the job.  Backed by Aurora's industry-leading design technology, Sales Mode empowers your sales team to sell with credibility and enhance the reputation you've worked so hard to build. Join us to learn how you can deliver a customizable sales experience that helps your team adapt quickly to changing market conditions and close deals with confidence. In this webinar, you’ll learn how to: Inspire customer confidence with fast, accurate designsEmpower reps with custom proposals designed to sellScale your sales network with the controls you and your teams need ### Unified for Growth: How Aurora Streamlines 1 Earth Solar's Dealer Partnerships Explore our case study to see how 1 Earth Solar streamlined their operations, achieving a 50% reduction in labor costs and enhancing productivity, enabling one professional to manage 25% more projects. Learn how their strategic use of Aurora’s platform led to these impressive efficiency gains ### Sales Mode: Proposals You Can Build Your Reputation On Solar is a big commitment. When you pitch solar to a homeowner, you’re also asking them to invest thousands of dollars and alter the look of their home. So, building homeowner trust and credibility is essential to closing the sale. In this webinar, you'll learn how the newest Sales Mode enhancements will help your team adapt quickly and sell with credibility, even in an ever-changing market. Backed by Aurora’s industry-leading design technology, you'll be able to deliver a faster, easier, and more customizable sales experience that'll help your team close with confidence. Join us to learn how you can: Build a customizable sales experience that helps differentiate your businessEasily educate homeowners on complex topics like solar + storageDeliver fast, professional sales proposals you can build your reputation on See how we've reimagined Sales Mode to empower your sales team to sell with credibility and uphold the reputation you've worked so hard to build. ### Aurora Updates: Flexible Pricing, Dealer Customizations & Post-Sales Plan Sets You’re invited to Aurora’s Quarterly Product Release Webinar Series! Join us for product updates, new releases, and a conversation with leaders from Aurora’s product team. Our latest product releases deliver flexible customizations, a seamless route to plan sets (including stamps!), and even more accurate pricing. Learn all the details, and see how these updates can help your business scale faster than ever. In this webinar, we’ll show you how these updates: Deliver customizations dealers want, with the control channel managers needReduce change orders with accurate pricing and designs at the point of sale Move faster using one design from sale to install with Aurora’s Plan Sets service ### A Roofer's Guide to Selling Solar Have you been thinking about expanding your service offerings into solar? You’re in the right place! This ebook explains why solar can be a lucrative addition to your business and shows you how to get started. We’ll review the additional skills you’ll need (you already have a lot of them!), plus some helpful tech that can make it easier to expand your business offerings and scale. Get your free copy today! ### Sales Mode Reimagined You asked, and we listened. We've reimagined Sales Mode so your teams can deliver a faster, easier, and more customizable sales experience and close deals with confidence. Get a first look at the big updates coming soon to Sales Mode that you won't want to miss. ### Pitch smarter and sell faster with SalesRabbit + Aurora Solar Selling solar can be complicated, but it doesn’t have to be. Join us to learn how the game-changing partnership between SalesRabbit and Aurora Solar can remove the complexity and help you level up your solar sales game.In this webinar, you’ll learn how you can: Pitch smarter with one integrated solutionFinalize deals on the spot with Aurora + SalesRabbit Reduce truck rolls, saving you time & money  Unlock the potential to close deals faster, engage homeowners effectively, and deliver exceptional solar designs. ### How 1 Earth Solar Mobilizes their Dealers with Aurora In the ever-changing landscape of the US solar industry, dealer networks are becoming a big part of the businesses that deliver PV systems, from well-known solar brands to installers within designated service areas. Creating a dealer network program can be an effective sales model for expansion into new regions and scaling faster. In this webinar, Thibaut Woolace, CEO of 1 Earth Solar, joins us to discuss how he’s scaling a successful dealer program using Aurora’s new Partner Management capability. Join us to learn how you can: Arm your dealers with the industry's most accurate and flexible sales solution Deliver customizations dealers want, with the control channel managers need Get to install faster with accurate designs at the point of sale ### The Guide to Solar Dealer Networks While it can seem like a big lift — and it is — standing up a dealer network can help you expand your reach, introduce solar to more customers, and ultimately make more money. You just need the know how, the right tools, and, of course, the right partners. In this resource, we'll look at what it takes to start a successful dealer network. We'll start with the basics, then get into what you need to stand up your network, and finally we'll investigate the software tools you need to succeed. ### Solar Software Must-Haves for Sales Pros This comprehensive guide explores the solar software must-haves you need to succeed in this increasingly complex — and crowded — solar market. We’ve also included some special sales features that make the top software solutions stand out from the rest of the competition. ### Aurora Updates: Sell Smarter, Better, Faster You’re invited to Aurora’s Product Release series! Join us for product updates, new releases, and a conversation with leaders in the enablement community.  Our latest product releases will address common challenges seen in teams, helping create a smoother process so your solar business can win more deals and scale faster than ever.   In this webinar, we’ll show you how these updates will: Improve accuracy of production and pricing simulationsEasily upsell homeowners on storage and increase your attach rateHelp sellers deliver memorable experiences & easily follow up at the right timeEnable sellers to personalize all customer-facing content ### Solar Masters: How to Supercharge your Sales Teams with AI and Automations 47% of homeowners get 3+ quotes before deciding to go solar. Empowering your sales reps to be fast, agile, and responsive is one of the best ways to make sure your teams are performing at their peak. In this final webinar of the series, we’ll be looking at the heartbeat of every solar organization: the sales team. We’ll reveal real customer workflows that can remove significant delays from your solar projects. We’ll also look at ways to free up your sales team’s time so they can close more deals, faster.  Join us to learn how to: Empower your sales reps to pre-qualify customersBuild workflows that remove the “busy work”Use AI to speed up the most time consuming parts of the sales process ### Solar Masters: How to Streamline your Design Process with Automations In this second webinar of the Solar Masters series, we will explore the latest strategies and technologies that can revolutionize your approach to solar design and empower your team to achieve remarkable results. Join us as we delve into the transformative power of intelligent solar design and how it can elevate your team's capabilities.  We will cover a range of topics, including:  How to use cutting-edge tools to streamline your design processesBest practices to reduce truck rolls, saving you time & moneyHow to increase design efficiency to sell more, faster ### Solar Masters: How to Empower Your Teams with Smart Workflows Inefficient processes cost the average solar project an extra $7,000. Bottlenecks, change orders, and clunky workflows can add significant delays to a solar project, slowing down your ability to scale. In our first webinar of the Solar Masters series, we'll be joined by project management and workflow automation experts from Scoop Solar who will show us how to better manage one of the most important assets of your solar business: your teams.  Join us to learn: How to spot and solve bottlenecks in your installation pipelines with real-time analytic dashboards How to improve communication between your office and field teams, including with subcontractors. How to use customizable project templates and apps to automate your installations and reduce change orders How to connect all your business tools to ensure smooth dataflow and prevent delays due to missing information ### SunFarm Energy Stands Out from the Competition with Lead Capture AI and Aurora AI One of the biggest bottlenecks for any solar business is generating high quality leads. In this case study, we’ll share how SunFarm Energy uses Aurora to stand out in a crowded market and achieved a 25% open-to-lead rate on their website. How SunFarm Energy achieved a 25% open-to-lead rate with Lead Capture AIHow they use Aurora to differentiate themselves from the competitionHow their sales reps use Aurora AI and Contract Manager to close deals quickly ### How to Get 3D Designs Fast with HelioScope's Commercial Modeling Service Ready to see how you can scale your C&I design needs on-demand? This webinar will introduce you to HelioScope’s Commercial Modeling Service (CMS). This powerful new service can help you overcome growing pains and design backlogs with on-demand access to trained experts. Join us to see how CMS can quickly qualify sites and deliver accurate and efficient 3D designs fast for you, so you can focus on creating winning proposals and closing more sales. You’ll learn how HelioScope’s Commercial Modeling Service can: Expedite your C&I workflow with on-demand access to trained expertsGet 3D designs delivered in 24 hours or lessMove faster on the sale while meeting your RFP deadlines  See how HelioScope CMS can help you close more projects & seamlessly scale. ### How to Sell More Storage 82% of solar installers are noticing an increased interest in storage from homeowners. Whether it’s for EV charging, taking advantage of TOU rates, or just peace-of-mind, storage is exploding in interest…but that doesn’t necessarily mean sales. In this webinar, we’ll share how to position storage effectively when pitching it in your sales proposals. We’ll explain how to vary your pitch based on the homeowner’s needs and we’ll do a live demo of Aurora’s new advanced storage modeling.  You’ll learn how to: Quickly figure out whether a homeowner is a good candidate for storagePosition storage based on the homeowner’s needsModel both storage backup and consumption in Aurora ### Solar for New Construction: From Plans to Proposal in 20 Minutes More cities are enacting building energy efficiency standards and solar mandates for new construction. These mandates are a fantastic opportunity for solar professionals, but navigating new construction system design can present many new challenges.  This webinar will cover how to adapt your design processes for new construction. You'll learn how to design accurate, efficient installations with just a blueprint and sourced site images, winning more new construction opportunities in no time. ### Automations Deep Dive: Streamline Your Operations with APIs Automated workflows and streamlined processes are the basis of competition for high-growth solar companies. By taking a deeper look at solar API capabilities, you may be surprised to uncover new ways to deliver superior customer experiences and scale your business. You’ll learn how Aurora APIs can help you: Streamline communications throughout your organizationKeep your teams aligned by syncing design assets across systemsPromote accuracy & efficiency with auto-synced homeowner consumption profiles Watch now to learn how you can automate complex workflows seamlessly using powerful and flexible APIs.  ### How to Sell Solar in 2023 Despite NEM 3.0 NEM 3.0 is almost upon us and with it come several obstacles that solar installers will have to overcome including changing TOU rates and anemic export rates. In this webinar, we’ll explain the most important changes NEM 3.0 brings and we’ll share new sales strategies that can help you increase your sales despite these new policies. Join Aurora Solar for this deep dive into NEM 3.0 and, even if your business isn’t located in California, get ideas on how to sell more solar in your local area.  Attendees of this webinar will learn how to: Position solar in the new NEM 3.0 environment.Overcome the “we’ll wait for better conditions” objection.Model NEM 3.0 rates during the sales process. ### Solar Industry Snapshot There’s a common term called the “solar coaster” that’s used to describe what it’s like being a solar installer. And while there’s no doubt installers have seen their share of ups and downs, the overall market for solar power continues to grow at a rapid pace. Years of falling equipment prices, combined with decades of rising utility rates, have made solar an excellent investment — and that’s before accounting for the overall good it does for the planet. And homeowners have taken notice. The Inflation Reduction Act (IRA) brings the potential for even more growth. The biggest highlight is the extension of the Investment Tax Credit (ITC) for solar until 2032, and restoring it back to its original 30 percent credit. This eliminates a great cause of uncertainty in the industry — but it also removes some of the urgency some consumers may have had to go solar right now. As we plan for the rest of the year, it can be difficult to make sense of all the competing factors. Where should we look for clues on what to expect during 2023 and beyond? The cure for uncertainty is hard data. With that in mind, we curated and examined in detail three data sources to help us understand where the solar industry is now, and where it’s going. The first dataset is Aurora’s own database of solar projects. As the leading provider of design and sales software to the solar installation industry, we anonymized and brought together over six million projects over the past two years to help shine some light on where the solar market is in early 2023. The residential solar market is made up of two distinct groups: homeowners and solar professionals. Any analysis of the market, then, is incomplete without extensive data on both demographics. To gain insight into the frame of mind of homeowners, we partnered with Dynata, the world’s largest first-party data research company. In January 2023 we surveyed 1,000 U.S. adult (18+) homeowners about their concerns and intentions about solar, and about solar installers. To click in the final puzzle piece, in February 2023 we surveyed 898 U.S. solar professionals. We gathered data on what they’re seeing from the sellers’ side of things: how their business is doing, what they’re expecting in the future, what they need to succeed, and their views on homeowner trends. These three data sources together give us a pulse check of where the solar industry is in 2023, where the potential areas for growth are, and what potential roadblocks lie in wait. ### Add Roofing to Your Solar Pitch with Roof Summary API In addition to delivering solar proposals, you can now use Aurora to build out comprehensive roof replacement quotes with Roof Summary API. Join us to learn how to leverage Aurora’s industry-leading software to generate real-time roof quotes. You’ll learn: How roofing & solar installers can deliver roof replacement quotes in real-timeHow to leverage comprehensive data to sell roof replacements with confidence & easeHow accurate, fast roof data quotes can complement your solar quotes ### Automate Your Residential Design Process with Nearmap The foundation of any good solar design is a detailed georeferenced image. The higher the image’s fidelity and clarity, the easier it is to design an accurate system for your customers. In this webinar, we’re joined by Jeff Saunders and Nicole Adams from Nearmap, the leading aerial imagery company. We’ll show you how you can use Nearmap’s crystal-clear imagery to level up your solar designs in Aurora. You’ll learn: How to identify every obstruction & elevate your designs with HD imagery How Nearmap optimizes your design process in AuroraHow to reduce truck rolls, saving you time & money  ### From Piecemeal to Perfection: How Perihelion Sold 3x More Deals with the Full Suite of Aurora Products One of the biggest bottlenecks for solar installers is building a tech stack that works smoothly. Most installers use one platform to buy leads, another platform to sell a prospect, and yet another platform to sign the deal. In this session, we’re joined by Perihelion, a solar installer who transitioned from using Aurora just for design to the full Aurora suite. As a result, they ended up selling more deals in 2 months than they did in the last 6 months combined. ### How Operations Teams Use Scoop and Aurora to Automate Workflows When your systems are connected, your teams feel united. By taking a deeper look at the API and integration capabilities offered by your solar softwares, you may be surprised to uncover new opportunities to automate workflows and scale your business. In this session with Scoop Solar, get inspired with real-life examples of how solar operations teams designed automated workflows using Scoop Solar's CRM and Aurora Solar to unlock growth. ### Automate and Scale for the Future with APIs Workflow and process are the basis of competition for the modern high-growth solar company. The only way to deliver superior customer experiences at scale is to invest in systems that empower teams. Through Aurora's powerful, flexible APIs, solar businesses of all sizes automate complex workflows. If you feel like your existing workflows inhibit your growth, join this session to learn how to scale your organization seamlessly with Aurora's suite of APIs. ### How HelioScope is Transforming the Future of C&I Design and Sales Designing and selling C&I is complex. Design bottlebecks, site qualification issues, and interconnection delays are just a few challenges in a typical C&I project. In this session we will hear from HelioScope General Manager, Paul Grana on how HelioScope helps overcome those obstacles, and how it is changing how C&I is being designed and sold in the market today. ### Qualify Project Sites Faster with LIDAR Prospecting multiple site locations to find a viable project site can be an obstacle causing project delays and cancellations. With HelioScope's new LIDAR feature, customers can quickly model multiple site location options to narrow or prioritize their proposals. In this session, we will show you how you can qualify sites by completing tasks like estimating tree heights and determining the slope of a roof face — all without a site visit. ### When 4 became 1: How Lumio Revamped their Design Worflow with Aurora When four solar companies joined forces to form Lumio, it created some unique challenges. Chief among them was aligning all the new company's disparate teams on one solar design software, and onboarding them on the software in the best way possible. In this session, Paul Tollefson shares why Lumio chose Aurora to be that software. They'll go in-depth on how they aligned pre-sale design with sales, and even post-sale, and how Aurora helps them achieve their goals, including faster turnaround times while maintaining design quality. ### Design Mode - A Designer's Ultimate Toolkit A lot has advanced in the field of solar design. From LIDAR to drones, the tools solar designers have at their disposal have improved exponentially. Yet, one thing has remained frustratingly constant: The struggle to correctly identify AHJ requirements for each individual project, and balance those with homeowner expectations and system design optimization. Until now. Aurora’s new software tools and services enable solar companies to produce quality designs, avoid costly change orders, and scale efficiently. Join this session to learn how to revamp your designs with Aurora AI, advance your design process with Aurora’s AHJ identification and fire pathways tool, and streamline your post-sales workflow with on-demand plan sets directly from Aurora. Aurora. ### How Saguaro Solar Simplified their Sales Process with Sales Mode Customer experience and education is always top-of-mind for any successful solar company – and the software you use can have a major impact. Piecing together multiple softwares throughout your sales and design process often leads to a lot of repetition, manual effort, and inaccuracies across your entire team. Saguaro Solar previously used Aurora as a post-sale tool to verify design accuracy; but in this session, they'll share how they were able simplify their sales process with a fast, accurate proposal solution: Sales Mode. ### Sell Faster and Easier with Sales Mode Selling solar can be complicated, but it doesn't have to be. From lead to close, Aurora has you covered. First, learn how Lead Capture AI lets you capture higher-quality leads using AI-generated 3D solar estimates directly from your website. Then, Sales Mode enables your reps to turn those leads into customers with interactive, customized proposals in minutes. Sales Mode is easy to use and backed with Aurora's industry-leading design accuracy, integrated financing, and automated contract generation. Join this session to see how Lead Capture AI and Sales Mode can take the guesswork out of selling and increase close rates. ### Tackling Every Sale Under the Sun Our habits drastically changed during the pandemic. From getting our burgers delivered to our door to meeting with the doctor over video, we truly jumped years into the future with digitization. In his keynote address, "Tackling every sale under the Sun," VP of Product Justin Durack will share why 2023 is shaping up to be a really exciting year for our industry, and how we can use this momentum to meet homeowner expecations. ### How to Get the Best Loan for your Customers in 2023 With rising interest rates and an uncertain economy ahead, it is becoming harder and harder to convince homeowners that solar is a viable option for them. In this webinar, we’ll show you how to overcome the financing objections you’ll hear this year so you can continue closing more deals. We’ll be joined by expert speakers from GoodLeap and Aurora Solar, who will share some of their best strategies you can use in 2023.  Attendees of this webinar will learn how to: Position solar in a rising rate environment.Overcome tough financing objections.Use easy-to-understand visuals to close more deals. ### The Ultimate Guide to PV System Losses This guide highlights the leading causes of energy losses in solar PV systems, and how you can avoid them. You'll get tips for improving the accuracy of your performance simulations as well as research-backed recommendations for different loss types. Inside you’ll learn: How basics such as tilt, orientation, and shade affect system performanceHow equipment mismatches can cause hidden inefficienciesAdvanced concepts, including incident angle modifiers, module nameplate rating losses, and more. ### Optimize Your Commercial Solar Designs with LIDAR in HelioScope Light Detection and Ranging (LIDAR) has become a critical technology teams need to design sites accurately and efficiently. In this webinar, we’ll show you how to speed up your commercial designs using HelioScope’s new LIDAR feature. You’ll learn how LIDAR in HelioScope can help you: Optimize your commercial design processDecrease the number of design changesSpeed up your design to sales handoff ### How NY State Solar Quadrupled Its Web Lead Volume with Lead Capture AI One of the biggest bottlenecks for any solar business is generating high quality leads. In this case study, we’ll share how NY State Solar quadrupled their web lead volume and saw 25% higher set rates. You’ll learn: How NYSS implemented Lead Capture AI on their websiteHow they increased their organic lead volume by 4xHow they increased their set rates by 25% ### Capture High-Quality Web Conversions with Lead Capture AI Generating quality solar leads is one of the most difficult parts of the solar sales cycle. But, top solar installers have started taking a new, AI-driven approach and started seeing incredible conversion rates. In our upcoming webinar, we’ve invited Richard Murdocco, VP of Marketing for NY State Solar, to share how his company has increased the leads they get from their website by 4x! We’ll show you how to capture your site visitor's attention with an interactive experience that impresses them from the very first click.  Join us to learn how you can: Drive more leads & decrease your customer acquisition costsCapture high-quality leads with just an address & estimated utility billEngage homeowners and act quickly on high-quality leads ### The Ultimate Commercial Solar Bundle Commercial solar leaders are working harder than ever to overcome obstacles like the uncertain economy, supply chain & interconnection issues, and much more. Solar leaders agree, however, that there are still many untapped opportunities waiting to be seized. In this content bundle, we’ll share top insights from commercial solar leaders, hidden growth opportunities you can tap into, and new features that can streamline your solar business. Inside the bundle you’ll get: Webinar: Optimize Your Commercial Solar Designs with LIDAR Ebook: The Big Book of Commercial Solar Software Must-Haves Webinar: How to Get 3D Designs Fast with HelioScope’s Commercial Modeling Service Case Study: Skyview Ventures’ Route to 20% Yearly Growth and Accelerated Solar Design ### The Ultimate Solar Sales Bundle High interest rates and new policies in the solar market means that solar sales teams have to bring their A-game to continue closing deals. Top sales leaders know, however, that there is still a lot of opportunity out there waiting to be seized. In this content bundle, we’ll share top insights from sales leaders, hidden growth opportunities you can tap into, and new strategies that can increase your sales numbers. Inside the bundle you’ll get: Panel Discussion: Solar Plus: Expanding Your Business With Solar-Adjacent ProductsPanel Discussion: Take the Lead: Acquisition Strategies in a New Digital-First WorldWebinar: How to sell with Aurora in 20 minutesGuide: The 5 Solar Buyers ### The 2022 Solar Objections Throwdown In this unique webinar, solar sales pros from across the industry will show us how to tackle those difficult objections that homeowners raise during the sales process. Join us for this fun (and informative) sales objection throwdown and learn how to handle real-world situations from experienced sales professionals. We’ll also have live voting so you can pick the objection handling you think is best, complete with prizes awarded to the winners!  Attendees of this webinar will learn: How to improve your sales pitch using tried-and-true sales techniques.How to handle tough objections and keep a deal moving forward.Interesting ways to get around potential roadblocks in the sales process. ### The Ultimate Guide to Solar Objections Your guide to turn objections into sales Objections are a critical part of the sales process. Rather than being discouraged, the best sales pros see objections as an opportunity to help the homeowner learn — and get that much closer to closing the deal. We recently identified 5 of the most common solar objections and asked a group of solar sales experts how they typically address each one.  In this guide, you’ll learn: How to handle 5 tough objections that you’re likely to come across How to keep a deal moving forward How to use any objection as a selling point ### Leading Through Turbulence and IRA Opportunities This session will bring together a panel of CEOs from leading solar companies to discuss how they're navigating their organizations through inflation, supply chain issues, labor shortages, while still keeping an eye on the big opportunities ahead with the passage of the IRA. ### Edward Norton: The Importance of Solar for All During his keynote session titled “The Importance of Solar for All,” Norton will share his views on the role of solar in creating resiliency and social equality. He will also discuss the importance of distributed energy and how it has come to life through the Maasai Wilderness Conservation Trust's Chyulu Carbon Project, which he has been supporting for the past 25 years. One of the project’s newest initiatives focuses on building electric vehicle, energy storage, and solar infrastructure in remote parts of Kenya to help protect wildlife. ### Aligning Teams and Processes to Deliver a World-Class Customer Experience Keeping up with the growing expectations from modern customers is no easy task. In addition to the obvious promise of solar, they want an easy buying experience, fast response times, a streamlined and quick installation process, and much more. To be able to deliver a world-class customer experience, solar companies will need to rethink their organization structure and processes. In this panel, experts will share how they’re structuring their companies both in terms of teams and processes to make sure they can deliver consistent results as they expand their businesses. ### How solar software delivers ROI: A discussion with Aurora and Wood Mackenzie We recently teamed up with Wood Mackenzie to run a full analysis of where solar companies might be losing ROI during their solar sales. In this whitepaper we share the findings from their study and some surprising ways that solar installers have lowered their costs and improved their sales processes. Inside you’ll find: Eye-opening findings from the Wood Mackenzie studyThe biggest opportunities during the sales process that most solar installers are missingHow to potentially reduce change orders by over 90% ### Storage: The Next Frontier With the passage of the IRA and attachment rates at an all-time high, battery storage is poised to become an even more integral part of purchasing solar. In order to keep up as demand continues to grow, solar companies will need to overcome new challenges.In this fireside chat, we'll speak with 2 storage experts about: Key challenges towards the adoption of storage at scaleInnovations in storage hardware & software that will make storage more attractiveHow to position storage to the solar buyer of the future ### Welcome and Keynote Address: Unpacking the Inflation Reduction Act and Its Opportunities Bill Parsons is the Vice President of Federal and State Affairs at American Clean Power. In that capacity, he oversees the federal policy team in Washington, D.C. and state policy team across the country. Prior to joining ACP, Bill was Chief Operating Officer at the American Council on Renewable Energy (ACORE), managing ACORE’s day-to-day operations, including policy, programs, and strategic communications. A 14-year Hill veteran, Bill served as Chief of Staff and Legislative Director for Congressman Chris Van Hollen, where his portfolio included climate, energy, tax, financial services, and the environment. He ran the House Renewable Energy and Energy Efficiency Caucus for eight years and was a founding Board Member of the Montgomery County Green Bank. Bill is a graduate of Harvard University and lives in Bethesda, MD. ### Solar Plus: Expanding Your Business With Solar-Adjacent Products More and more solar installers are expanding their offerings. With the rising interest in the electrification of everything — from EVs to smart thermostats to batteries — adding these products is increasingly becoming more important for installers and necessary for homeowners. Moderated by Peter Gajdos, Climate Tech Partner at 5th Wall, this session will explore the case for a ‘solar plus’ business, including proven benefits from cross-selling, industry trends, and market outlook. ### How to Qualify a New Customer in 10 Minutes using Aurora Time is too valuable to spend on leads who aren’t a good fit for solar. This micro-webinar will show you how to quickly determine whether to pursue a lead or move on to better prospects in just 10 minutes. You’ll learn how to: Qualify leads with near-instant virtual site assessmentsAvoid expensive truck rolls and costly change ordersMove faster with AI-driven design  ### Take the Lead: Acquisition Strategies in a New Digital-First World The future of solar starts now, but why is solar marketing stuck in the past? In this session, we’ll hear from leaders in marketing and customer experience about their innovative approaches to customer acquisition. In the age of digital transformation, how can the solar industry turn a new leaf and provide homeowners with a seamless, digital-first experience? ### Keynote Address: State of Play on Solar Job Trends, Workforce Development, and IRA’s Impact Dr. Janell Hills is the Director of Workforce Programs at the Interstate Renewable Energy Council (IREC), an independent nonprofit working to build the foundation for rapid adoption of clean energy and energy efficiency. She has 15 years of experience in higher education, 12 years of experience in grant administration including development, implementation, and management. Dr. Hills has developed work-based learning and apprenticeship programs for innovative occupations such as pharmacy technician, information technology, and also had the opportunity to enhance the plumber’s apprenticeship program by adding digital plumbing layout design equipment for course implementation. Dr. Hills is an enthusiastic leader who is passionate about education and workforce equity. She thoroughly enjoys working to develop programs for underrepresented and underserved populations and BIPOC communities. ### Digitalization: Scaling for the Future Through Enabling Technologies With new technologies and innovations emerging at an exponential rate, we can’t help but feel paralyzed by Moore’s Law. What works, and what doesn’t? In this fireside chat, we’ll discuss one company’s path to success and identify the key pitfalls to avoid when executing change management. Join us in taking a deeper look at what transformational change really looks like when evaluating and introducing new digital initiatives and solutions such as AI- and API-driven workflows to your company. ### Improving Post-Sale Customer Experience: Different Challenges For Different Stakeholders As solar goes mainstream, many jurisdictions have been swamped with permit applications and inspection requests, making the post-sales process a long and painful one for installers and customers alike. This, in turn, has led to increasing innovations in technologies, building codes, and laws. In this session, we'll discuss what each stakeholder can do to help make permitting and post-sales processes as smooth and painless as possible for everyone. ### HelioScope Workshop: Tricks & Tips, Hands-on Training Desmond Pressey, Aurora Solar’s Customer Success Manager, will be leading this HelioScope workshop session. We will dive deeper in this hour, covering topics typically not included in our group training sessions, including: how to produce accurate simulations at scale, ways to customize designs and reports for clients, and answering your burning ‘how to’ questions. ### The 5 Solar Buyers When it comes to solar sales, one size does not fit all—at least if you want to close your deals. As every experienced solar salesperson has discovered, people have widely differing reasons for why they’re looking to go solar. To uncover what makes a buyer say “yes,” Aurora’s research team completed 1-on-1 interviews with homeowners who purchased solar. Download our comprehensive guide to get insights into the solar buyer’s mind and how to sell each of them. In this guide, you’ll find: Each persona’s primary, secondary, and tertiary motivations for going solarHow to speak to each buyer’s wants and needs Pro tips that will make your solar pitch resonate with your prospects ### The Solar Sales Follow Up Kit Purchasing solar can be an overwhelming experience for homeowners who aren’t familiar with the basic process, equipment, and tech involved. In this toolkit, you’ll find four guides that you can use to help educate a homeowner about the basics of solar and make them feel confident about making their buying decision with you. Inside you’ll find: How to read an electricity billThe basic principles that guide solar system costsHow a solar installation worksHow solar energy storage works ### Northwest Renewables: Keeping the Customer First While Scaling Up ### How Semper Solaris Reduced Change Orders & Redesigns on Solar Jobs by 99% ### How Aurora’s Enterprise Solution Helped Lumina Solar Scale Their Business ### How Better Technology Helped Semper Solaris Increase Sales and Employee Retention ### How Green Terra Energy Gained Control of Their Solar Sales Process Amid the Pandemic ### Fast and Accurate: How Altair Solar Stands Out in a Competitive Market ### High-End Designs, High-Quality Installations: ilumen Solar Ups Its Sales Game with Aurora ### PV Education 101: A Guide for Solar Installation Professionals In this guide we'll go over the basics of how to size and design a solar PV system. By learning these key solar design topics, you'll be able to improve your solar designs, save time, and close more solar sales. Inside you'll learn:- How energy, power, and irradiance work- How to size a PV system correctly and efficiently- Different techniques to mitigate shade losses ### How Baker Electric Home Energy Went Virtual While Staying Customer-Focused ### How to Succeed Under California's Residential Solar Mandate All new homes in California will now be required to have solar panels. According to SEIA, this new mandate (Title 24) is expected to increase solar demand in the state by over 800 MW from 2020-2023. In this webinar, we’re joined by the California Energy Commission (CEC) and solar installer, SunStreet, to discuss how these changes will impact solar installers and what you need to know. In this webinar, you'll learn: How to comply with Title 24 requirements How to design solar systems for new construction What SunStreet recommends for installers going forward ### How to Design Solar + Storage in Under 15 Minutes ### Empower 2025 - Navigating New Horizons ### Uniting Forces to Unlock the Electrification Movement ### Winning with TPO: Faster Approvals, Fewer Change Orders, and Seamless Sales ### Aurora AI v2: Powering more solar projects than ever ### Achieve Unmatched Solar Design Precision with EagleView Powered™ Models in Aurora ### Empower 2024 Tampa ### Empower 2024 Salt Lake City ### SolarCon 2024 ### Empower 2024 ### Sunrise 2024 ### Intersolar North America 2024 ### D2DCon 7 ### NYSEIA 2023 ### RE+ Florida ### How to Get 3D Designs Fast with HelioScope’s Commercial Modeling Service ### How to Sell with Credibility in a Changing Market ### Empower 2023 Post Registration ### How to Sell More Storage ### Solar for New Construction: Your Quick & Easy Design Walkthrough ### Automations Deep Dive: Streamline Your Operations with APIs ### Designing a System in Aurora Walkthrough ### Add Roofing to Your Solar Pitch with Roof Summary API ### How to Sell with Aurora in 20 Minutes ### Designing a System in Aurora Walkthrough ### How to Get the Best Loan for your Customers in 2023 ### K2 Systems K2 Systems is a global leader in cutting-edge solar mounting solutions, revolutionizing the industry with its reliable, easy-to-install systems. With installations in over 130 countries and offices across 11 nations. K2 Systems offers innovative solutions for pitched roofs, flat roofs, and ground-mounted systems.. Solution Overview: Build a racking system in the K2 Quote design app without leaving Aurora and automatically store the racking bill of materials with your Aurora design. ### Unirac Unirac is a well-established provider of solar mounting solutions, specializing in residential, commercial, and utility-scale installations. The company has supplied racking systems for over 2.5 million solar projects, totaling more than 25 gigawatts of capacity. Unirac’s product line includes roof-mounted and ground-mounted solutions, designed to simplify installation and improve system durability. With a strong focus on innovation, quality, and U.S.-based manufacturing, Unirac is recognized for its commitment to industry-leading standards and customer support. Solution Overview: Build a racking system in the Unirac's U-Builder without leaving Aurora and automatically store key racking data (e.g., bill of materials) with your Aurora design. ### UtilityAPI UtilityAPI offers secure access to customer utility data through easy-to-use products and solutions. With the Aurora Solar and UtilityAPI integration, customers can pull homeowners’ consumption data into their Aurora projects at 15, 30, or 60-minute intervals, streamlining the quoting process and making it easier for companies to drive the clean energy transition. Solution Overview: With the UtilityAPI and Aurora Solar integration, you can seamlessly pull homeowners’ consumption data into an Aurora project in 15, 30, or 60-minute intervals to execute solar modeling and quoting with unparalleled accuracy. Connect UtilityAPI to your Aurora Solar account and get faster quoting turnarounds, precise modeling, and automated data pulls in standard formats. ### EcoFasten EcoFasten, an Enstall Company, has established a reputation for being one of the industry’s leading innovators by providing expert solutions for mounting solar PV on any roof. EcoFasten’s broad portfolio of solar rooftop mounting systems and attachments stems from the direct needs of solar PV installers. EcoFasten takes pride in providing the right solution for every application. Solution Overview: Build a racking system in the EcoFasten Design Assistant without leaving Aurora and automatically store key racking data (e.g., bill of materials) with your Aurora design. ### Station A Station A is the climate action platform for commercial buildings. We've created the easiest and most cost-effective way to analyze and procure clean energy. Our evaluation tools leverage an AI-powered building evaluation engine that identifies onsite solar, community solar and EV charging potential based on industry-leading data. Our marketplace gives you comprehensive, price-competitive proposals from the leading clean energy developers in the nation and accommodates various technologies including solar PV, battery storage, and EV charging. You are in the right industry, at the right time - and you are working with the right partner to maximize your impact. What We Do: Portfolio Evaluation - evaluate your portfolio with AI: With just an address list, our platform analyzes and grades each building to identify your best sites for clean energy. Evaluation is free for buyers. Feasibility Study - enrich estimates with actual data: Add your own building data or enlist Station A to collect data on your behalf. Your portfolio evaluation will recalculate instantly. RFQs & RFPs - build a project listing that fits you: Whether you need indicative pricing or fixed and firm proposals, our Marketplace project listings are delivered to 1,000+ providers and can be customized to fit your needs. RFQs & RFPs - easily collect project proposals: List your project in our Marketplace to get comprehensive and competitive bids from our large provider network. Proposal Evaluation - select the best provider for your needs: We levelize and present all proposal submissions to you can make quick and confident decisions. ### Sunrun Despite the real challenges facing the energy industry, and homeowners, the future is bright. Solar is no longer an experiment - it is a key part of the solution. Combining solar with battery unlocks the solution as homes can run on the sun day and night. In working with Sunrun you are becoming a partner - and ally in showing homeowners a better way to power their home. And, in the process with innovations like virtual power plants, we can help stabilize the grid. This creates more reliability for homeowners and their neighbors. Your customers will get the benefit of working with you and knowing you're backed by the best in the business. Our growth isn't about bragging rights - it's about the ability to make an even bigger impact in this industry and make massive investments in customer experience and innovation. You are in the right industry, at the right time - and you areworking with the right partner to maximize your impact. Solution Overview: Aurora customers who have a relationship with Sunrun are eligible to activate a hyperlink solution in Sales Mode that optimizes the rep’s path from Aurora to Sunrun ONE. The convenience and time-savings provided by this solution create a better proposal experience for sales reps and the homeowners they serve. Click here to learn more about becoming a Sunrun affiliate through Aurora’s partnership.  ### GoodLeap America's #1 Residential Solar Financing Company GoodLeap is a technology company delivering best-in-class financing and software for solar and home efficiency solutions. Over 1 million homeowners and thousands of professionals have benefited from GoodLeap’s simple, fast, and frictionless technology that makes the adoption of these products more affordable, accessible, and easier to understand. Join the GoodLeap platform today!  Lightning-fast approval times Flexible payment options Greater financing amounts Seamless integration Higher Approval Rates We pull credit from all 3 bureaus  & use the highest score to qualify Soft credit check until funding for loans. Soft credit check only for TPO.  Only need last 4 of SSN Solution Overview: Aurora’s integration with GoodLeap enables you to access GoodLeap loans, leases, and PPAs, then present quotes to pre-qualify homeowners with a credit application — all within Aurora’s Sales Mode.  Once the integration has been configured in Aurora, all your GoodLeap financing products and related pricing options will be accessible in Sales Mode proposals. With this integration you can:  Conduct a soft credit check on behalf of the homeowner and pre-approve them for a loan, lease, or PPA from GoodLeap  Avoid errors from manual data entry across the GoodLeap portal and Aurora Compare multiple financing options from GoodLeap in a single proposal ### EnFin by Qcells EnFin is a subsidiary of Qcells, the #1 manufacturer of residential solar panels in the USA. EnFin offers competitive residential solar loans for solar installers. We are helping residential solar installers grow by enabling homeowners to take control of their home energy costs with affordable financing. Solution Overview: Aurora’s integration with EnFin enables you to access EnFin leases and PPAs, and present quotes then pre-qualify homeowners with a credit application, within Aurora’s Sales Mode.  Once the integration has been configured in Aurora, all your EnFin TPO products and related pricing options will be accessible in Sales Mode proposals. With this integration you can:  Conduct a soft credit check on behalf of the homeowner and pre-approve them for a lease or PPA from EnFin  Avoid errors from manual data entry across the EnFin portal and Aurora Compare multiple lease and PPA options from EnFin in a single proposal ### Dividend Finance Dividend Finance is a leading national provider of technology enabled financing solutions for renewable energy, energy-efficient upgrades, and general home improvement. Dividend has joined Aurora’s end-to-end solar platform, combining our financing offerings. Solution Overview: Aurora Solar’s financing integration with Dividend enables you to connect your Dividend and Aurora accounts to access Dividend loan products in Aurora’s Sales Mode. Once the integration has been configured in Aurora, all your Dividend loan products will appear in Sales Mode as Financing options. With this integration you can:  Conduct a soft credit check on behalf of the homeowner and pre-apply for a loan from within Aurora’s Sales Mode;  Show the homeowner Dividend loan products using approved language; Avoid errors from manual data entry in both your Dividend portal and Aurora ### Mosaic Mosaic is an industry-leading climate fintech platform committed to 100% clean energy across America. Through an expansive network of pros, we provide homeowners affordable financing options for solar, battery storage and sustainable home improvements. Our reliable technology and robust API provides a better sales experience, allowing pros to easily offer financing without leaving their SaaS tools. Our seamless Saas integration, flexible financing options and near-instant pre-qualification decisions mean fewer friction points for contractors and homeowners. Solution Overview: Aurora Solar’s financing integration with Mosaic enables you to connect your Mosaic and Aurora accounts to access Mosaic loan products in Aurora’s Sales Mode. Once the integration has been configured in Aurora, all your Mosaic loan products will appear in Sales Mode as Financing options. With this integration you can:  Conduct a soft credit check on behalf of the homeowner and pre-apply for a loan from within Aurora’s Sales Mode;  Show the homeowner Mosaic loan products using approved language; Avoid errors from manual data entry in both your Mosaic portal and Aurora ### EagleView Together, Aurora and EagleView empower solar professionals to improve remote solar design outcomes.  High Precision 3D Models and Imagery: EagleView Powered™ models combine the most accurate 3D model technology with Aurora’s trusted simulations and design platform. Simplify your site survey process and know every inch and angle of the roof all within Aurora’s most-trusted platform – no drone or ladder required on site.  High-Resolution Top-Down Imagery: See and access more project sites in Aurora with EagleView’s best-in-class imagery, encompassing over 94 percent of the U.S. population. Design with even more precision with EagleView imagery that provides 70X more detail than satellite with up to sub 1-inch resolution.  Solution Overview: EagleView’s top-down orthogonal imagery is available directly in Aurora. This high resolution aerial imagery is available to all Aurora customers at no charge. Some benefits of EagleView’s high resolution imagery are: Covers 94% of the US population Coverage includes the top US urban markets that are updated annually 4x the detail of standard aerial imagery, which includes access to sub 1-inch imagery Where EagleView imagery is available in Aurora: Design Mode Sales Mode EagleView imagery and Aurora AI: Aurora AI leverages high resolution aerial and satellite imagery, including EagleView imagery, in combination with LIDAR data and insights from over a half million site models in the Aurora platform. Aurora’s proprietary machine learning engine improves over time, and variability is to be expected. Accuracy is dependent, in part, on the quality of the data leveraged. Aurora AI will automatically select the best high resolution imagery for a project address.  ### LightReach Founded 13+ years ago, Palmetto is a leading U.S. clean energy & home sustainability platform providing comprehensive services, from fulfillment to consumer finance, to value-added services. Launched in 2023, LightReach, an operating unit of Palmetto, provides consumer finance and asset ownership solutions through a scalable GTM strategy focused on solar and storage with planned expansion into additional home electrification products and services. LightReach is an API-first consumer finance platform purpose built for integrations and superior user experience. LightReach’s proprietary and modern technology creates a plug-and-play ecosystem across stakeholders which increases efficiency, profitability, and scalability Solution Overview: Aurora’s integration with LightReach enables you to access LightReach leases and PPAs, and present quotes then pre-qualify homeowners with a credit application, within Aurora’s Sales Mode. Note: only current LightReach partners can activate this integration in Aurora. To become a partner, click here. Once the integration has been configured in Aurora, all your LightReach TPO products and related pricing options will be accessible in Sales Mode proposals. With this integration you can:  Conduct a soft credit check on behalf of the homeowner and pre-approve them for a lease or PPA from LightReach  Avoid errors from manual data entry across the LightReach portal and Aurora Compare multiple lease and PPA options from LightReach in a single proposal ### Sungage Financial Sungage Financial is a leading fintech platform that provides technology-driven and customer-focused solutions for the residential solar financing industry. Aurora and Sungage have been partnered since 2022 and offer an integrated solution that allows Aurora customers to take their residential solar proposal to the next level and go from proposal to financing application, fast!Sungage’s commitment to best-in-class products, an outstanding homeowner experience, and streamlined processes support the success of our installer partners. Solution Overview: You can now configure your Sungage account and connect it directly with your Aurora account within Sales Mode.  Once the integration has been configured in Aurora, all of your Sungage loan products will appear in Sales Mode as Financing options. With this integration you can:  Conduct a soft credit check on behalf of the homeowner and apply for a loan from within Aurora’s Sales Mode Show the homeowner Sungage loan products in approved language Say goodbye to manual data entry into the Sungage Portal, and the need to manually manage your Sungage products in Aurora ### Scaling Smarter: Automation Strategies that Drive Success ### 5-Minute Stretch Break ### Navigating New Horizons - Closing Remarks ### Navigating Solar’s Policy Future with Clarity and Confidence ### Thriving in the Current Market: Flexible Solutions to Accelerate Business Growth ### 5-Minute Coffee Break ### TPO: What You and Your Customers Need to Know ### Revolutionizing Solar Permit Packages with Aurora's Instant Plan Sets ### Solar Trends for 2025 and Beyond ### Closing Remarks ### The Solar Keepout Creation Contest ### Workshop 3: Streamlining Commercial & Industrial (C&I) Solar Projects ### Workshop 2: Whole-Home Solutions: Expanding Your Solar Offering ### Closing Remarks ### Customer-Centric Innovation: The Accuracy Advantage with EagleView and Aurora ### Solar Resilience in Florida: Successes, Challenges, and Insights with Solar Bear ### Workshop 1: Leveraging AI for Solar Design and Sales ### Lunch ### Powering the Energy Transition: Aurora’s Vision for a Brighter Future. ### Keynote: Florida’s Solar Market: Navigating a Mixed Policy Environment ### Welcome Coffee ### Thank you for attending ### Workshop 3: Expanding into C&I with HelioScope ### Workshop 2: Expanding Your Solar Offerings with Whole-Home Solutions ### Workshop 1: Leveraging AI for Solar Design and Sales ### Product Workshops (Choose One) ### Customer-Centric Innovation: The Accuracy Advantage with EagleView and Aurora ### Lunch and Networking ### Navigating the Utah Solar Market: Successes, Challenges, and Insights with Blue Raven Solar ### Solar & Storage Success in Utah’s Evolving Market ### 15-minute break ### Innovative Solutions for Solar: What’s Now and What’s Next ### Welcome Coffee & Networking ### Live Demos: Aurora and HelioScope ### Hands-On Workshops: Aurora and HelioScope ### Brighter Horizons: Charting the Future of Solar ### Empower Roundtable: Navigating Tomorrow's Solar Landscape [INVITE ONLY] ### Day 2: Closing Remarks ### Customer-Centric Innovation: The Accuracy Advantage with EagleView and Aurora ### Powering the Energy Revolution: Aurora’s Vision for a Brighter Future ### Day 1 Closing Remarks ### Strategic Growth: Leveraging Transferability and Other IRA Incentives for C&I Expansion ### How the Global Solar Energy Market Will Use AI to Optimize for Demand ### Trends Driving the Residential Solar Market and How to Adapt ### Uniting Forces to Unlock the Electrification Movement ### Keynote: A Solar Future for All ### From Sunrise to Success: Launching into your Brightest Future with Aurora ### HelioScope’s Advanced Capabilities: Today and Tomorrow ### Optimizing Solar Partnerships: CertainTeed's Journey with Aurora ### Shining Sales: Crafting Trustworthy Solar Proposals with Freedom Forever & Boundless ### Faster, Stronger, Better: Accelerating Solar Designs with Aurora’s AI-Powered Software ### Sparking Homeowner Savings with Aurora’s Consumption Toolkit ### C&I Solar Takes Flight: Evolving Commercial Solar in the AI Era ### Powering Sustainable Living with HelioScope | Multifamily Solar ### Supercharge your Proposals with Advanced Storage Modeling ### End-to-End Excellence: Powering Simply Solar's Journey from Sales to Installation ### Beyond the Panels: Finding Success in the C&I Industry with HelioScope ### Powering Progress: Building Trust Together ### Solar's Digital Frontier: Automation and Digitalization in Large-Scale Solar ### Decoding the IRA for C&I: Insights and Opportunities ### Design Mode 101 ### Operations unlocked: Using tech to streamline your solar processes ### The Sales Objection Throwdown ### Powering the Future: Unlocking Business Growth through Solar Storage ### Shedding Light on AI: Demystifying Artificial Intelligence in the Solar Industry ### CEOs Speak: The Challenges and Opportunities Solar Leaders Are Talking About ### California’s Solar & Storage Market: Where we’ve been, Where we are headed ### Managing Through Complexity and Change — Solar in 2023 and Beyond ### Introduction ### Shedding Light on AI: Demystifying Artificial Intelligence in the Solar Industry ### California’s Solar & Storage Market: Where we’ve been, Where we are headed ### Managing Through Complexity and Change — Solar in 2023 and Beyond ### Introduction ### Design Mode 101 ### Solar's Digital Frontier: Automation and Digitalization in Large-Scale Solar ### The Sales Objection Throwdown ### Decoding the IRA for C&I: Insights and Opportunities ### Operations unlocked: Using tech to streamline your solar processes ### Powering the Future: Unlocking Business Growth through Solar Storage ### CEOs Speak: The Challenges and Opportunities Solar Leaders Are Talking About ### How HelioScope is Transforming the Future of C&I Design and Sales ### Design Mode - A Designer's Ultimate Toolkit ### Trends, Tech and Tools for Residential Solar Design with Aurora ### From Piecemeal to Perfection: How Perihelion Sold 3x More Deals with the Full Suite of Aurora Products ### When 4 became 1: How Lumio Revamped their Design Workflow with Aurora ### How Saguaro Solar Simplified their Sales Process with Sales Mode ### How Operations Teams Use Scoop and Aurora to Automate Workflows ### Automate and Scale for the Future with APIs ### Sell Faster and Easier with Sales Mode ### Opening Remarks - The State of Aurora Today ### Qualify Project Sites Faster with LIDAR ### Speed Networking: Get Introduced to New Connections ### Improving Post-Sale Customer Experience: Different Challenges For Different Stakeholders ### HelioScope Workshop: Tricks & Tips, Hands-on Training ### Taking C&I to the Next Level ### Demystifying Solar Financing ### Take the Lead: Acquisition Strategies in a New Digital-First World ### Keynote Address: State of Play on Solar Job Trends, Workforce Development, and IRA's Impact ### Storage: The Next Frontier ### Break ### Welcome and Keynote Address: Unpacking the Inflation Reduction Act and Its Opportunities ### Digitalization: Scaling for the Future Through Enabling Technologies ### Aurora Workshop: Tricks & Tips, Hands-on Training ### Solar Plus: Expanding Your Business With Solar-Adjacent Products ### Aligning Teams and Processes to Deliver a World-Class Customer Experience ### Strength in Numbers: Grassroots Advocacy Works, and We Need More Of It ### Edward Norton: The Importance of Solar for All ### Leading Through Turbulence and IRA Opportunities ### Break ### Welcome and Keynote Address: The Case for Electrifying Everything