#SolarWebinar

#SolarWebinar

q  This webinar will be available afterwards at solarpowerworldonline.com & email

q  Q&A at the end of the presentation q  Join the conversation at #SolarWebinar

Before We Start

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Meet your Speakers MODERATOR FEATURED SPEAKER

FEATURED SPEAKER FEATURED SPEAKER

Kathie Zipp Managing Editor Solar Power World

Deep Chakrabotry CEO Enact Systems

Jim Jenal Founder & CEO Run on Sun

Bob Giles CEO PACEfunding

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SaaS Empowering Distributed Energy

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2008

298

DISTRIBUTED ENERGY

2009 2010 2011 2012 2013 2014 2015

385

852

1926

3373

4782

6287

7286

Source: GTM Research 2015, US Department of Energy

Annual Installed (MW)

$15B+ Market!

58% 42%

Hard Costs • Module • Inverter • Racking & B.O.S.

Soft Costs • Customer Acquisition • Financing • Labor & Operations • Servicing

Residential Solar Project ($20K)

Massive growth in U.S. Distributed Solar…

… but high soft costs and an inefficient channel

$30B+ Market! By 2020

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Customer Management Analytics Financing Operations Asset

Servicing

• Location • Energy bills • Energy usage • Utility rates • Credit approval

ENACT SAAS AUTOMATION

• Savings forecasts • Rate plan Optimization

• Hardware choices • Pricing analytics • Incentives, rebates

• Financing contract • Underwriting • Contractor fees • Progress Payments • Portfolio reporting

• Contract management • Workflow management

• Site Surveys • Permit plan sets • Interconnection

• Monitoring • Verification • Notifications • Billing management • Audits & Reporting

Automating solar energy services

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• CRM integration

•  Lead management

•  Sales team reports

• Workflow management

CUSTOMER MANAGEMENT

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•  Type of roof choice •  Roof pitch and shading •  Layout of panels •  Hardware choices (Panel, inverter, racking) • De-rate factors •  Post-solar electric rates

SYSTEM DESIGN

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• Compare pre-solar and

post-solar kWh usage • Compare pre-solar and

post-solar $ bills •  Tier-wise breakdown of

usage and bills • Demand charge impact •  Impact of net metering

ENERGY ANALYTICS

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•  Type of financing choice (Cash vs. PACE, PPA, Loan etc.) •  Property reports •  Landlord vs. tenant benefits •  Target IRR checks •  Target monthly cash savings •  Tax credit financing • Depreciation benefits •  Incentives and rebates

FINANCING ANALYTICS

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• Workflow set-up • Document set-up •  Scheduling of resources • Notifications / alerts •  Financing process

automation • Management reporting

OPERATIONS MANAGEMENT

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•  Fleet management •  Reminders and checklists •  Team activity logs • Document management • Calendars and scheduling

ASSET SERVICING

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Customer Management Analytics Financing Operations Asset

Servicing

• Location • Energy bills • Energy usage • Utility rates • Credit approval

ENACT SAAS AUTOMATION

• Savings forecasts • Rate plan Optimization

• Hardware choices • Pricing analytics • Incentives, rebates

• Financing contract • Underwriting • Contractor fees • Progress Payments • Portfolio reporting

• Contract management • Workflow management

• Site Surveys • Permit plan sets • Interconnection

• Monitoring • Verification • Notifications • Billing management • Audits & Reporting

Automating solar energy services

#SolarWebinar

Put More Money in your Pocket with Property Assessed Clean Energy (PACE) Financing

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PACE Programs- Expanding Nationwide

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Opportunities for PACE in Solar

v Monthly PPA is likely first preference v No opportunity for PACE

v 100% financing of Prepaid PPA v Lowest 20 year fixed interest rate

v NO FICO required, only equity v 100% financing

Solar dealers originate a number of lead types

Monthly PPA

Prepaid PPA

PACE Loan

Good FICO:

Prepaid PPA

Good FICO:

Monthly PPA

Low FICO

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Why Do Home Owners and Solar Dealer Like PACE?

•  No money down •  Competitive interest rates •  Lengthy payback period (i.e. 25 years) •  Does not require a credit check •  Does not encumber personal credit- based only on home value •  PACE tax assessments may be transferable in property sale

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How Is PACE Different From Unsecured Loans?

•  Does not require a FICO score! On balance, we hear from most contractor that about 25% of homeowners have credit scores below 650, which disqualify them from most loan products. PACE is different- only requires there is enough equity in the home.

•  Does not rely on an applicant’s income- low income wage earners can participate

•  Does not require a down payment •  Does not encumber personal credit- based only on the home

value

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How Is PACE Different From Home Equity Loans?

•  In addition to no credit or income verification- no need for a formal appraisal which can take months and cost money

•  Immediate turnaround in processing. Especially important when a property owner’s roof is leaking during rainy season or their HVAC system goes out in middle of summer- owners need to be able to have the installation completed in hours or days- not weeks or month

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Quick and Easy Process

Check Address Eligibility

Apply to PACE Funding Online

E-Sign Financing Docs- Receive Notice to Proceed and Completion Certification Complete Project E-Sign PACE Funding Completion Docs

Once Approved, Receive Payment

1

1

1

3

2

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5

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PACE Market Dynamics

•  Residential so far limited to CA and FL but other states are considering opening up soon

•  PACE Interest rates still high relative to security •  Contractual subordination in sale/refinance accepted •  Expect new models where contractors

see greater benefits than the leading PACE firms currently offer to them

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Heading off the Crisis of Confidence in

Solar Contracting Jim Jenal, Founder & CEO

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We face a looming crisis … •  Sharp business practices erode consumer confidence

o  From questionable financing schemes, to shoddy work, to outright fraud.

•  News reports provide ammunition for our critics o  From all sides of the political spectrum

•  Don’t take my word for it…

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So what do we do? •  This is not a sustainable environment! •  So far, self-policing is not working

o  Witness Daily Caller article accusing firms of ignoring SEIA ethics code

•  Either we get better fast, or we will face a backlash o  For example, regulations that could become onerous, especially for small shops

•  A change in mindset is needed o  Transition from Customers to Clients!

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Not Customers, Clients •  Customers represent a transactional relationship

o  Gas stations, grocery stores, and fast-food joints have customers o  The customer pays and receives something back – end of story

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Not Customers, Clients •  Customers represent a transactional relationship

o  Gas stations, grocery stores, and fast-food joints have customers o  The customer pays and receives something back – end of story.

•  Clients represent a trust-based relationship o  Attorneys have clients o  Long-term relationship wherein the client’s best interests are the sole focus o  You are the expert; your client needs to be able to rely on what you say!

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Developing Client Focus •  Build trust first, and enhance trust with everything you do •  Duty of candor – truth telling even when contrary to a sale

o  Because this isn’t about a single transaction!

•  Duty of communication – keep client in the loop •  Fiduciary duty – protect your client’s financial well-being

o  Comprehensive proposal, not constant change orders

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5 Rules for Treating Clients 1.  Beware how you generate leads 2.  Perform an honest site evaluation 3.  Prepare a comprehensive proposal 4.  Provide an appropriately detailed contract 5.  Execute the contract completely and transparently

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1. Ethical Lead Generation •  “Do Not Call” lists mean what they say

o  Verengo is about to pay out $2.4M! o  If you farm this out, you are liable for third-party conduct

•  If you canvass, avoid overly enthusiastic canvassers

•  Instead, focus on referrals & driving clients to your website

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2. Perform an Honest Site Evaluation

•  Qualified personnel only o  Must know about fire department setbacks,

code limits (20% rule), etc.

•  Don’t let them promise what your company cannot deliver o  Such as products that you cannot supply,

or savings beyond what is realistic

•  Sometimes you have to walk away… o  We all know that not every site will work for solar,

yet someone is always willing to make that sale! o  Don’t let that be you – or your sales staff –

better a missed sale than an angry client

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3. Prepare a Comprehensive Proposal

•  Disclosure is the key! o  Products: panels, inverters, racking – down to actual model numbers/designations o  Assumptions: utility rate increases, system performance factors, etc.

•  Provide a realistic performance model •  Provide a legit savings model

o  Tied to actual utility rate tariff, not some generic ¢/kWh

•  Provide a legit payback model

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4. Provide an Appropriately Detailed Contract

•  Complete contract terms o  Products, price, start date o  Known contingencies o  Process for Change Orders o  Evolve your contract over time

•  Don’t be this guy o  Must be able to explain!

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5. Execute Transparently •  Do what you said you would do,

when you said you’d do it •  Do it for the price that you

promised •  Provide proper owner’s materials

o  As-builts, data sheets, warranty information

• 

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5. Execute Transparently

•  Do what you said you would do, when you said you’d do it

•  Do it for the price that you promised

•  Provide proper owner’s materials o  As-builts, data sheets, warranty information

•  Manage your crews o  Please – not this

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Is this enough? •  Of course not…

o  Lots of other issues to address (like training, warranties, repairs, etc.)

•  But this is a really good start… o  Think back to those news stories…

•  If every solar company adopted these simple rules, we would go a long way to restoring consumer confidence in the solar installation industry.

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Questions? MODERATOR FEATURED SPEAKER

FEATURED SPEAKER FEATURED SPEAKER

Kathie Zipp Managing Editor Solar Power World

Deep Chakrabotry CEO Enact Systems

Jim Jenal Founder & CEO Run on Sun

Bob Giles CEO PACEfunding

#SolarWebinar

q  This webinar will be available at solarpowerworldonline.com & email

q  Join the conversation at #SolarWebinar

q  Connect with Solar Power World

q  Discuss this on EngineeringExchange.com

Don’t Forget!

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