June 2, 2023
The economy seems to be facing new blows every day, especially with respect to the solar sector. Inflation and mass layoffs continue to shrink customers’ budgets or price them out of the market completely. Cuts to solar incentive programs have been issued all over the country. And bank failures have put numerous contracting businesses at risk.
Such volatility has sparked anxiety among solar pros, who are looking for any way to gain a sense of stability. Fortunately, there are a few measures that can be taken to get on a surer footing.
Level Up Financial Practices
The recent Silicon Valley Bank (SVB) banking crisis underscores the importance of careful and diligent solar financing practices. SVB’s abrupt failure resulted in numerous renewable energy companies losing access to their deposits and other financial resources without warning, disrupting operations and countless projects. It took several days before the federal government restored order and enabled these companies to recover their funds. But the panic continued to spread, resulting in the rapid failure of two other banks.
To protect themselves against such disasters, solar companies must improve their financial practices. This requires seeking out well-managed banks that understand the intricacies of the solar industry. By taking a more cautious approach to financial partnerships, contractors can safeguard their earnings and ensure that they won’t find themselves monetarily stranded.
Solar contractors should thoroughly vet potential financial partners, evaluating the following:
- The bank’s experience in the solar industry
- Their track record of financing companies and projects
- Their approach to resolving troubled credits
This due diligence can be done by reviewing news and financial reports and holding detailed discussions with the bank’s risk-management team. Putting this can provide valuable insights into a bank’s resilience.
Given the considerations above, “green” banks should be higher-ranking candidates when it comes to finding loan providers. Because they focus on financing renewable energy businesses, they are not only more comfortable underwriting solar companies but also have a better understanding of the industry’s current trends and policies. They may even offer tailored financing products, including long-term fixed interest rates, which might not be available from traditional banks.
Partner with a Dependable Solar Lead Provider
Other types of partnerships can also contribute greatly to the stability of a solar business. Namely, partnerships with tried and true solar lead generation companies.
These agencies connect contractors with customers who are on track to become solar adopters. Though rare, the best of these agencies will leverage extensive marketing, screening, and competition-cutting practices to provide leads that are primed for their first contractor meeting. Those at the top will even schedule this meeting for the purchasing contractor, leaving it fully prepared to be added to their calendar.
Using these solar lead generators as the primary method of customer sourcing is one of the most efficient ways to create a safety net for sales. Instead of relying on enough organic leads to come through every month, contractors can rest assured that they’ve already booked enough consultations to get the sales they need.
Grid Freedom rises above the rest as one of the most reliable partners for solar contractors. Offering exclusive, scheduled appointments with promising leads has enabled the agency to help contractors all over the country fight market uncertainty. No binding terms or contracts also make it one of the fairest, most transparent lead services in the industry.