what are sustainable energy technologies (sets)? · energy saved up to 80% of electricity can be...
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WHAT ARE SUSTAINABLE ENERGY TECHNOLOGIES (SETS)?
Consultation and Workshop for Financiers:
Financing Sustainable Energy in the Caribbean
CURRENT ELECTRICITY MIX BY TARGET COUNTRY
0%
20%
40%
60%
80%
100%
Antigua & Barbuda
The Bahamas
Dominica Grenada St. Kitts & Nevis
St. Lucia St. Vincent & the
Grenadines
Shar
e (
%)
of
Ele
ctri
city
De
rive
d b
y So
urc
e
Biomass
Hydropower
Oil
Source: REEGLE 2007-2011
THE CASE FOR SUSTAINABLE ENERGY TECHNOLOGIES
• Energy cost savings
• Protection against price shocks
• Fuel supply diversity
• Decentralized electricity generation
• Local employment
• Environmental protection
THE TARGET COUNTRIES HAVE ABUNDANT RENEWABLE ENERGY RESOURCES
IFOK Analysis 2012, Adapted from Nexant 2010, NREL 2012
OUR GUIDE FOCUSES ON RESIDENTIAL SETS
• Residential SETs are physically located at the host-site
• Typically generate electricity bill savings for residential
utility customers
• Residential SETs offer opportunities for financiers to
create new, community-focused financing programs
SETS RELEVANT FOR THE RESIDENTIAL CONTEXT
Solar Photovoltaic Electricity
Solar Hot Water Systems
Energy Efficient Appliances
THERE IS A HIGH POTENTIAL FOR SOLAR PV THAT IS UNDER-UTILIZED IN THE TARGET COUNTRIES
Energy Source Sun
Energy Displaced
Fuel oil or electricity purchased from the power grid
Requirements Access to sun; roof facing north or south; sturdy roof that can carry added weight of installation and will not leak
Generating Capacity
Small systems typically start at 100 W (to power 1-2 light bulbs) and a larger residential system have capacities of up to 3.5 kW (to power higher energy appliances such as televisions, refrigerators, and air conditioning units)
Payback time Varies; As low as 8 – 10 years
Cost Per Unit Varies depending on installation size, quality, manufacturer, installation costs; US$3,000 - US$12,000 for entire system
Useful Life 20 – 30 years
• All target countries have a
high potential for solar PV
• Each target country has a
greater resource potential
than is being currently
utilized
MANY CONSUMERS IN THE TARGET COUNTRIES ARE FAMILIAR WITH SHWS
• SHWS are becoming more
common in the Caribbean
Successful deployment in Barbados, Grenada, St. Lucia
• SHWS costs are decreasing
due to demand increases
and high penetration levels
Energy Source Sun
Energy Displaced
Fuel oil or electricity purchased from the power grid
Requirements Access to sun; roof facing north or south; sturdy roof that can carry added weight of installation and will not leak
Generating Capacity
A solar hot water system has the capacity to supply an entire household with hot water, approx 200 liters
Payback time Varies; As low as 3 – 10 years
Cost Per Unit Varies depending on installation size, quality, manufacturer, installation costs; $ 1,000 – $3,000 per system installed
Useful Life 15-40 years (depending on maintenance)
MANY DOMESTIC APPLIANCES CURRENTLY SOLD AND USED IN THE TARGET COUNTRIES ARE NOT ENERGY-EFFICIENT
• Labeling systems and other
information mechanisms Voluntary labels being
introduced at national level Mandatory standards and
labels at regional level needed Control mechanisms need to
be established Information campaigns and
access to consumer information are essential
Focus Refrigerators, TVs, Air Conditioners, Lighting, Washing machines, Fans
Energy Saved Up to 80% of electricity can be saved by substituting existing appliances through best available technologies.
Requirements Efficient appliances need to be offered on the market; consumers need to be aware of options and energy consumption.
Barriers Consumers see energy-efficiency as minor important criterion for purchasing decision; operational long-term costs not taken into account. Information often incomplete or misleading.
Payback time Varies; often lower than 1 year; no linear ratio between energy-efficiency and appliance price.
Supporting incentives
Some countries offer fiscal incentives (VAT reduction; import duty exemption); Legally binding commitment for EE information necessary.
CARIBBEAN HOUSEHOLDS ARE WELL EQUIPPED WITH (OFTEN INEFFICIENT) APPLIANCES
Source: GIZ/OECS, ECELP Survey 2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Refrigerator or fridge/
freezer combi
Freezer Fan (mobile) Washing machine (Top
loader)
TV (Colour CRT)
TV (LCD/ Plasma)
Stereo music system
Major Electrical Household Appliances in SLU, GND, A&B
SLU
GND
A&B
CONSUMERS CAN CHOOSE APPLIANCES WITH A VARYING DEGREE OF ENERGY EFFICIENCY
Category
Potential Energy Savings of best available
technologies vs. low-efficient products
Air Conditioning Units 70%
Lighting 70% - 80%
Washing Machines 30%
Refrigerator/freezers >50%
Televisions 80%
Source: TopTen EU/Spain
ENERGY-EFFICIENT APPLIANCES ARE WIDELY AVAILABLE BUT LIFE-TIME COST CALCULATION NOT COMMON
• Consumers in all of the target countries could benefit from
energy-efficient appliances Since they consume less electricity to operate, they result in lower
electricity costs for the consumer (not always visible due to increasing fuel surcharge rates)
• National benefits in terms of lower fuel imports and reduced
environmental impacts
• However, purchasing of energy-efficient appliances could
require more up-front investments Consumers may require additional financing that will repay through
energy/operational cost savings
CARIBBEAN HOUSEHOLDS VERY OFTEN USE HIRE PURCHASE CONTRACTS
Source: GIZ/OECS, ECELP Survey 2012, data from SLU
25% 34%
43% 31%
23%
40%
47% 27% 46%
31%
15%
1%
5%
2%
Fridge/ freezer combi
Freezer Fan mobile Washing machine
TV (Color CRT) TV (LCD/Plasma)
How was the appliance purchased?
Cash Hire Purchase Loan
ENERGY EFFICIENCY IN THE BUILDING SECTOR
Focus Insulation of roofs and walls, shading of windows, double glazing, use of natural air-flow and daylight, use of energy-efficient construction material
Energy Saved Varies from case to case. Under optimal conditions up to 100% possible. In other cases (exit situation with no use of AC) improvement of inner room comfort.
Requirements Construction material and components need to be available.
Barriers No legal requirements or financial incentives for energy-efficient building. Even professionals have limited know-how and experience. Most material has to be imported at higher costs.
Payback time Depends on individual cases, but many low-investment measures possible with payback periods of less than 10 years.
Supporting incentives
Almost none so far as energy-efficient building has not been seen as a priority in the past. Some initiatives have supported energy audits in specific sectors (e.g. for hotels and guest-houses)
• Building codes difficult to
implement with insufficient
administrative enforcement
capacity
• Financial and fiscal incentives
could stimulate the market
• Knowledge base improvement
and advisory services are
essential
BARRIERS TO SUSTAINABLE ENERGY FINANCING IN THE CARIBBEAN REGION
Consultation and Workshop for Financiers: Financing Sustainable Energy in the Caribbean
www.mc-group.com
AGENDA
• The case for SET investments
• Regulatory framework
• Financial incentives available in target countries
• Barriers for the consumers
• Barriers for the financiers
SET INVESTMENTS: WIN-WIN FOR FINANCIERS AND CONSUMERS
• SETs generate energy savings that produce long-term savings or an income stream
• This improves free cash flow for the consumer and enables them to more easily
service debt
$2,633 $3,164 $3,723 $4,310 $4,927
$13,331 $14,013 $14,730 $15,484 $16,276
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Yearly electrical bill without investing Yearly electrical bill after investing + loan payments Yearly net savings
Loan is
paid off
REGULATORY ENVIRONMENT IN TARGET COUNTRIES
REGULATORY ENVIRONMENT FOR SET INVESTMENTS DIFFERS FROM ONE TARGET COUNTRY TO OTHER
Coun
try
Electric
utility
NEP
approved
Feed-in
permission
Feed-in tariff Net-metering Observations
SVG VINLEC Yes,
February
2009
Yes, voluntarily
by VINLEC
no yes Up to 10 kW for
individuals
SLU LUCELEC Yes, June
2010
Yes, voluntarily
by LUCELEC,
ceiling: 3 MW
no yes Up to 10 kWp or based
on special agreement
GND GRENLEC no Yes, From 2011:
0.45 EC$/kWh
Yes till middle of
2011 with ceiling
of 300 kWp
Change fo GRENLECs
policy in 2011 after
arrival of 300 kWp-limit
BBD BL&P no Yes, based on
“RE rider” for
up to 1.6 MW
or 200 systems
1.8 times the
fuel surcharge,
minimum 0.315
Bd$/kWh
“RE-Rider” approved
by Fair-Trade
Commission
DOM DOMLEC no Yes, by law PPA to be to be
defined
individually
ESA was amended in
2009, Independent
Regulatory
Commission in place
Grants Rebates VAT Reduction Capital Subsidies Import Duty Waiver
Antigua & Barbuda The Bahamas Dominica Grenada St. Kitts & Nevis St. Lucia St. Vincent & the Grenadines
Antigua & Barbuda The Bahamas Dominica Grenada St. Kitts & Nevis St. Lucia St. Vincent & the Grenadines
Antigua & Barbuda The Bahamas Dominica Grenada St. Kitts & Nevis St. Lucia St. Vincent & the Grenadines
Antigua & Barbuda The Bahamas Dominica Grenada St. Kitts & Nevis St. Lucia St. Vincent & the Grenadines
Antigua & Barbuda The Bahamas Dominica Grenada St. Kitts & Nevis St. Lucia St. Vincent & the Grenadines
The country has implemented the financial incentive The country is drafting the financial incentive The country has no financial incentive
FINANCIAL INCENTIVES STILL NEED FURTHER DEVELOPMENT
THERE ARE TWO MAIN BARRIERS THAT PREVENT SETS INVESTMENT
• General awareness
• Upfront investment cost
• Consumer creditworthiness
• Loan terms
Consumer Barriers
• Equipment and installer quality
• Transaction costs
• Financing tools
Financier Barriers
THE FOUR MAIN BARRIERS THAT CONSUMERS FACE
Consumer Barriers
General Awareness
Upfront Investment
Costs
Consumer Creditworth
iness
Loan Terms
CONSUMERS NEED MORE INFORMATION BEFORE INVESTING IN SETS
General Awareness
• The typical consumer…
Spends a large proportion of their paycheck on energy costs.
Is unfamiliar with relevant technologies for their home.
Is unaware of the possible positive benefits of investing in SETs.
• Many questions regarding the costs and benefits as well as regarding...
MANY CONSUMERS NEED FINANCING TO AFFORD SETS
Benefits Costs • SETs typically cost more
than their conventional
product counterparts
• Costs are prohibitively
high for many consumers
Can take months / years for investment recovery and to generate savings
Upfront Investment
Cost
SOME CONSUMERS MAY LACK THE CREDITWORTHINESS TO ACCESS FINANCE
• Consumers and project developers may lack the
necessary creditworthiness and collateral to access
financing
• Our research indicates financiers may require high
collateralization for SET financing
This can be cash or property
Consumer Credit-
worthiness
EVEN CREDITWORTHY CONSUMERS MAY FIND THE LOAN TERMS PROHIBITIVE
• The loan tenors and the interest rates typically available
for SET financing can make SETs cost-prohibitive
Consumer loan tenors are 12-36 months, but SET lifetimes are usually 25-30 years
• Our research indicates that many consumers currently
investing in SETs have higher incomes and are able to
afford the technology without the need for financing
Loan Terms
Financier Barriers
Transaction Costs
Financing Tools
Equipment and
Installer Quality
THE THREE MAIN BARRIERS THAT FINANCIERS FACE
UNCERTAINTY ABOUT EQUIPMENT QUALITY INCREASES RISK TO THE FINANCIER
Determine which product
is EE
Assess reliability and
calculate payback
Lack of standards and labels poses
challenges for financiers
Understanding and trusting
labels
Revenue stream can become non-existent due to a faulty product
Some technology is non-suitable for
the region Equipment Quality
UNQUALIFIED INSTALLERS INCREASE THE RISK FOR FINANCIERS
• Poor installation can ruin
equipment, thus SET will not
provide savings
• Without savings, consumers
lack additional cash flow to
service debt
• Lack of national and regional
vetting, warranties and
certifications perpetuates cycle Installer Quality
FINANCIERS FACE A ‘CHICKEN AND EGG’ SCENARIO
• High transaction costs make
lending for consumer level
SETs unattractive
High customer acquisition costs
Small portfolio size
• No market growth without
development of financial
products
Transaction Cost
HIGH CUSTOMER ACQUISITION COSTS
• Lack of customer awareness
and demand
• Consumer level RE and SET
is typically small
• Credit unions and local
banks tend to provide
smaller value loans, unlike
larger banks in the region
0%
20%
40%
60%
80%
100%
120%
140%
160%
Credit Union Penetration Rate in the Region
Source: World Council of Credit Unions, 2012
Transaction Cost
SMALL PORTFOLIO SIZE DOES NOT DRAW ENOUGH ATTENTION AND RESOURCES
• Sustainable energy is a small
portion of FI’s portfolios
• Other portfolios are much
larger (e.g. auto loans) and
receive more attention
• No incentive to create
products for small demand
Transaction Cost
LACK OF FINANCING TOOLS TO CREATE CONSUMER SCALE RE AND EE RELATED LOAN PRODUCTS
• Limited availability of practical tools and resources to
create products
FIs with no experience in RE related lending usually charge higher interests
• Main areas where support is needed are:
Risk evaluation
Payback calculation
Financing Tools
DISCUSSION OF BARRIERS UNIQUE TO THE CARIBBEAN
THE FINANCING LANDSCAPE IN THE CARIBBEAN REGION
Consultation and Workshop for Financiers: Financing Sustainable Energy in the Caribbean
FINANCIAL INSTITUTIONS
Credit Unions Commercial
Banks Development
Banks
• 41% average penetration rate
• $5,000 average loan size
• Typical loans: home mortgages, auto loans, small equipment, etc.
• 3 intl. commercial banks & many local commercial banks
• Typical loans: Commercial entities and higher income. Micro businesses and households (region dependant).
• International, regional and national
• Typical loans: Financing windows or lines of credit. Portion may be dedicated to RE/EE lending at subsidized rates.
CONSUMER CREDITWORTHINESS EVALUATION CRITERIA
Ability to pay
• Present and projected disposable income available for debt service
Willingness to pay
• Even though able to pay, consumer may prioritize other payments
• More difficult to predict late or defaulted payments
Collateral available
• Can be cash, property or the asset itself
• Incentivizes customer to repay, or financier claims the collateral
Down payment
• Upfront payment
• Helps evaluate ability to pay and set favorable loan terms
AVERAGE LOAN TERMS FOR SET IN TARGET COUNTRIES Loan Type Credit Unions Local Banks Commercial Banks Development Banks
Tenor
Consumer
(Personal or
equipment loan)
Up to 5 yrs (avg.
3 yrs)
24-36 months1 5-6 yrs
Commercial 10-15 yrs 15 yrs 12-15 yrs
Mortgage 25-30 yrs 25 yrs 25 yrs
Collateral
Consumer 10% cash,
sometimes
accept asset as
security
Cash or property secured. Can use
equity in property for 100%
financing. 50% down payment if
equipment itself is the security, as
low as 25% if secured with other
collateral
Commercial, real
estate, retail
Bill of sale on piece
of equipment
Commercial Cash 10% -20%
Mortgage 80% cash or
property
Property
Interest
Rate
Consumer 12% 9% - 10.5% 11% - 15% Fixed interest rate
Commercial 9% - 13% 9%
Mortgage 8% - 10% 7% - 8% 7-8%
Origination
Fees
Consumer
Commercial
Mortgage
Recovery2
Rate
Consumer
Commercial
Mortgage
KEY TAKEAWAYS FROM LOAN TERMS
• Bank rates are more competitive, but loans have specific requirements (e.g.
collateral)
• Less competitive loan terms when offered as personal or equipment loans vs.
mortgages
• Mortgages and refinancing may not always be feasible for consumers
• Shorter loan tenors for equipment loans can distort payback for customer on SETs
• Absence of second hand markets for SETs creates adverse collateral requirements
VALUATION OF SET LENDING IN THE PORTFOLIO
SET loan in FI’s
portfolio
Current risk
perception
Target profit
margin
Target default
rate
Loan term
• SET financing is a formalized product line in some institutions
• Loan promotions can hedge risk by partnering with other stakeholders
GROUP DISCUSSION OF THE FINANCING LANDSCAPE
AVERAGE LOAN TERMS FOR SET IN TARGET COUNTRIES Loan Type Credit Unions Local Banks Commercial Banks Development Banks
Tenor
Consumer
(Personal or
equipment loan)
Up to 5 yrs (avg.
3 yrs)
24-36 months1 5-6 yrs
Commercial 10-15 yrs 15 yrs 12-15 yrs
Mortgage 25-30 yrs 25 yrs 25 yrs
Collateral
Consumer 10% cash,
sometimes
accept asset as
security
Cash or property secured. Can use
equity in property for 100%
financing. 50% down payment if
equipment itself is the security, as
low as 25% if secured with other
collateral
Commercial, real
estate, retail
Bill of sale on piece
of equipment
Commercial Cash 10% -20%
Mortgage 80% cash or
property
Property
Interest
Rate
Consumer 12% 9% - 10.5% 11% - 15% Fixed interest rate
Commercial 9% - 13% 9%
Mortgage 8% - 10% 7% - 8% 7-8%
Origination
Fees
Consumer
Commercial
Mortgage
Recovery2
Rate
Consumer
Commercial
Mortgage
$2,633 $3,164 $3,723 $4,310 $4,927
$13,331 $14,013 $14,730 $15,484 $16,276
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Yearly electrical bill without investing
Yearly electrical bill after investing + loan payments
Yearly net savings
Loan is paid
off
SET PRODUCT OFFERING
Consultation and Workshop for Financiers: Financing Sustainable Energy in the Caribbean
SUSTAINABLE ENERGY MORTGAGE PRODUCT OFFERING
Objective:
To offer competitively priced mortgages for RE/EE investments compared to those offered for traditional home mortgages
Needs addressed:
RE/EE has higher upfront cost but can yield savings over long run, if mortgage is adjusted for SET
Opportunities:
Increase mortgage size
Expand customer base
Expand product line offering
Market differentiation
Risks:
Time investment to evaluate installers
Time investment to evaluate eligible RE/EE products
Technologies may underperform
Mortgage Product Offering
• Work with experts (e.g. universities, consultants, government) to
determine qualifying sustainable energy technologies for a new
build or a home improvement (product type and required funds). – Develop a list of possible products offered by several installers or – Form a partnership with a single installer who sells/installs qualified
products
• Determine baseline rates for SET mortgage terms that are slightly
shorter than the baseline for standard home mortgages. – The SET terms would be adjusted depending on customer
creditworthiness.
• Determine terms if the home is sold or owner defaults on loan.
• Promote offering in partnership with approved installers or
associated partners
POSSIBLE STEPS FOR FINANCIERS
ON-BILL FINANCING MODEL
Objective:
To expand the lending market for energy improvements to residential rental units
Needs addressed:
Split incentive problem solved by tying an EE loan to the unit’s gas or electric meter. Monthly charge is less than the monthly savings. Financier expands lending base
by partnering with utility.
Opportunities:
Expand customer base
Expand product line offering
Market differentiation
Reduce administrative costs
Risks:
Less control due to partnership with utility
SETs may underperform, leaving borrower with less disposable income
On-Bill Financing
Model
POSSIBLE STEPS FOR FINANCIERS
• Engage the local utility to determine the political and logistical feasibility
of instituting an on-bill financing program
• Identify energy improvements that are eligible for an on-bill financing
loan. – Explore a partnership with a vendor that can offer audits for interested customers.
• Determine loan interest rates and terms based on the credit rating and
utility payment history for eligible customers. Provide interest rates are
favorable enough to provide a reasonable return on investment for the
customer
• Agree to terms of partnership with utility
• Determine administrative costs and implement necessary fees
• Promote offering in partnership with utility to the utility customers
PROPERTY ASSESSED CLEAN ENERGY (PACE) MODEL
Objective:
To implement a mechanism for institutions to offer low interest loans for residential energy improvements without the higher administrative costs and risks associated with a traditional loan program
Needs addressed:
Traditional loans are riskier and carry higher interest. PACE integrates repayment mechanism into the property tax bill.
Opportunities:
Expand customer base
Expand product line offering
Market differentiation
Reduce investment risk
Scale up
Risks:
Less control of administration due to partnership with local government
SETs may underperform, leaving borrower with less disposable income
PACE Model
POSSIBLE STEPS FOR FINANCIERS
• Engage the local government to determine the political and
logistical feasibility of instituting a PACE program
• Identify energy improvements that are eligible for a PACE loan.
– Explore a partnership with a vendor that can offer audits for interested customers.
• Determine loan interest rates and terms based on the credit rating
and tax payment history for eligible customers. Ensure that the
interest rates are favourable enough to provide a reasonable return
on investment for the customer
• Determine administrative costs and implement necessary fees
• Promote offering in partnership with local government
PAYROLL DEDUCTION SCHEME
Objective:
To implement a mechanism for FIs to offer finance for durable consumer goods. The authorizing lender deducts regular loan payments directly from the employee’s payroll.
Needs Addressed:
Consumers don’t have the financial capital to invest in SETs. A FI can mitigate the risks of default by integrating the repayment mechanism into the consumer’s payroll.
Opportunities:
Expand customer base
Mitigate risks of default
Reduce transaction costs
Risks:
Less control due to partnership with other entity
SETs may underperform, leaving borrower with less disposable income
Payroll Deduction
Scheme
POSSIBLE STEPS FOR FINANCIERS
• Engage the local organisations and companies to assess the
feasibility of instituting an on-bill financing program
– The Financial Institution establishes a relationship with various employers
• The Financial Institution establishes an agreement with the
employer to allow for loan payments to be deducted from
payroll
• The Financial Institution utilizes the payroll deduction scheme
with creditworthy consumers who have at least 1-2 yrs of
employment tenure and a strong employment record
VENDOR FINANCE AGREEMENT
Objective:
To provide quality assurance to the FI and the consumer by offering a minimum warranty and regular service and maintenance agreement.
Needs Addressed:
Address equipment and installer quality issues. Under this structure, the vendor/installer assures the minimum warranty and regularly services the SET.
Opportunities:
Expand customer base
Mitigate risks of default
Increase willingness to pay
Reduce transaction costs
Risks:
Time investment to evaluate installers
Time investment to evaluate eligible RE/EE products
Vendor Finance
Agreement
POSSIBLE STEPS FOR FINANCIERS
• The Financial Institution solicits applications for local
vendors to participate in a loan promotion
• The Financial Institution evaluates the applications
(through internal knowledge or a hired consultant) to
determine which vendors are credible
• The Financial Institution establishes an agreement with
the vendor to offer consumers warranties and regular
maintenance – Such an agreement can also include buyback provisions
SECOND HAND MARKET
Objective:
To establish a re-sale market for repossessed SETs to enable FIs to recover some/all of their costs. Partner with companies that offer hire-purchase schemes .
Needs Addressed:
In the event of a consumer defaulting on a SET loan, FIs need a mechanism to recoup their costs. With a second hand market, the SET can be re-sold or re-financed.
Opportunities:
Expand customer base
Mitigate risks of default
Recoup costs during defaults
Reduce transaction costs
Risks:
Time and cost to establish market
Costly diligence and valuation of second hand SET
Second Hand Market
POSSIBLE STEPS FOR FINANCIERS
• The Financial Institution establishes a relationship with a
large retailer (such as Courts) to offer competitive
financing to consumers – Many large retailers already offer financing on SETs, so a
partnership with an FI can help make SETs more affordable to consumers
• The Financial Institution establishes an agreement with
the large retailer to offer financing for SETs
• The retailer agrees to re-possess and re-sell or buyback
the SET in the event of default.
SOLARIZE
Objective:
To expand the market of residential solar loans by increasing the financial feasibility through group purchasing and by mitigating the customer inertia problem through community organizing.
Needs Addressed:
Residential solar is still a nascent market due to high upfront costs, unfamiliarity with the technology, and a complex decision process.
Opportunities:
Expand customer base
Expand product line offering
Market differentiation
Overcome customer inertia problem
Risks:
Solar may not be financially feasible even with the discount
Technical issues may prevent potential customers from installing solar
Solarize
POSSIBLE STEPS FOR FINANCIERS
• Select a qualified installer through a Request for Proposal process
• Negotiate an installed price for a residential solar installation
through the program. – Some programs will offer a tiered pricing structure based on how many
people sign up
• Set a sign up deadline for interested customers
• Engage the local community through a marketing campaign
focusing on the limited time offer and financing options
• Once the deadline is reached, work with the installer to review the
houses that have signed up to ensure that they are technically
feasible for a solar installation
• Contract with the residents that have roofs feasible for solar
GROUP CASE STUDIES
THANK YOU!
Presenters: Sean Flannery, Chief Operating Officer, Director of Investable Sustainability
Christina Becker-Birck, Senior Consultant