The Secret Weapon Against Solar CancellationsSamantha Bezich
According to a Solar Energy Industries Association (SEIA) study, 19% of residential solar jobs are cancelled. Some recent reporting indicates that the number has jumped to 30% or more. From long lead times due to supply chain issues, buyer’s remorse due to delayed projects, challenges with getting permits, and more, solar cancellations are on the rise. For consumers, going with solar can be a complicated, uncertain, and nerve-racking experience. Besides the significant investment, there are limitless options, permits, and misunderstandings that can create challenges throughout the project pipeline. While the future is murky, it is difficult to envision a scenario where these rising rates don’t continue to rise and impact the industry without changing trajectories.
For solar providers, that 19% can really add up. Cancellations can cost up to $2,000 per project. That cost can go up to $5,000 if the cancellation is during or after permitting. All in all, terminations lead to lost time and money. Lost out-of-pocket costs for solar providers are one part of the equation – lost revenue is another. Cutting a 19% cancellation rate in half can boost revenues by 12%.
Tried-and-true practices matter. Communicating with the homeowner after the contract has been signed and guiding them through what’s next in the project process establishes a channel for engagement and rapport. It is integral to develop trust at the very beginning. This can be done by advising and clearing up any confusion on upcoming steps, such as sight surveying and permitting. Over-communicating, including leveraging email and text, will reinforce your reliability.
But – these tried-and-true practices only go so far.
Another tool to combat costly cancellations is the addition of energy reduction services to your mix. Duct sealing from Aeroseal – added on to your solar services – can help mitigate some unavoidable delays. Consumer psychology tells us that after a project is started, the likelihood of cancellation drops precipitously. And with Aeroseal – you can get the project started immediately, providing immediate value and improved comfort for the homeowner.
Aeroseal uses innovative duct sealing technology to effectively eliminate leaks in HVAC ductwork. Leaky ductwork represents a big problem – and sealing ductwork can decrease energy consumption by up to 15%. Adding Aeroseal to your mix can increase project revenue and give you pricing flexibility to structure deals to beat the competition.
High cancellation rates are a problem that the solar industry needs to tackle on all fronts. Adding Aeroseal to your solutions to get projects started more quickly should be a key tool in your arsenal for offsetting cancellations.
Visit our website to learn more about Aeroseal.