Is Solar a Commodity?

As awareness of solar power grows, and more and more installers spring up around the country, how will consumers base their solar purchase decisions in an exploding market? Will solar become a mere commodity, with customers rushing the lowest bidder, or will sales be driven by the customer experience and quality associated with a given brand?

When consumers become motivated primarily by numbers, whether they be related to fat grams, miles-per-gallon, or price, does brand become insignificant―or a deciding factor?

With competition heating up, manufacturers are going to be forced to reconsider the way they manufacture, distribute, and install product in order to remain competitive in the eyes of the consumer. Given this “commodity” environment, will the quality of solar panels drop industry-wide?

If you ask any potential solar power customer what the differences are between the offerings of Company X, Company Y, and Company Z, you would probably be told which company’s product is the most or least expensive, period.

In five years, go back to that same customer and ask about the three offerings they considered when making their solar purchase. Having lived with their system for a while, you will likely hear more about quality and brand.

The upshot here is that, in today’s (and tomorrow’s) solar energy marketplace, whether customers know it yet or not, brand does matter. And given that, what should savvy consumers be thinking about?

- Innovation: If a manufacturer is offering rock-bottom prices, but 1970s technology, keep shopping.

- Customization: One Size Does Not Fit All when it comes to solar. Lot orientation, roof pitch, landscaping, and many other factors dictate how a solar power system should be mounted. Your expert installer needs to know this.

- Customer Care: Don’t use a solar installer that only wants to install. Get what you pay for, and that means full-service assistance in permitting, design, and government rebate paperwork.

- Warranties: Solar systems are supposed to be built to last for around 30 years, but if they don’t, you need to make sure your installer offers warranties on both panels and inverters so that your investment is protected.

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