Be More Than a Solar Company

Your electric utility is about to do something really unfair in an attempt to make more money. How do I know? Because they always do. So what can solar companies do to prepare for economic shocks like this?

This was a topic we covered this week in Entrepreneurial Strategy. Bob Caspe is the course instructor and here’s a story he shared:

My community in Florida put in an EV charging station with a solar canopy. Soon afterward our electric utility introduced demand charges based on the highest amount of electricity we use during any 15-minute interval. Now instead of making money on the charging station, we are losing money and paying higher rates.

Our response? Now we’re planning to install a battery system to bring down peak load and reduce our rates. Under the new rules this will save us money. 

But I already know that the utility will look at that and come up with a new rate structure so they win again. It’s like the old comic, Spy vs. Spy. As soon as we find a way to game the system, the utility will change the rules of the game. It’s just going to keep happening, which is really frustrating.

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Be more than a solar company

Bob says the big opportunity is for the installer is to become more than a solar canopy company. The solar canopy was just a means to an end (lower utility bills). Today the best product might be solar. Tomorrow it might be batteries. In a few years, maybe it’s an energy management system with load controllers. 

The best solar companies know this already. They build long-term relationships and invest in systems to stay in touch with customers.

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Entrepreneurial strategy is just good business

An entrepreneurial strategy is one that focuses more on customer relationships and less on any particular product. Unfair rate structures will come and go. Political winds will shift. But your customers will continue to live their lives and operate their businesses and if you build a track record of delivering solutions then you’ll build a resilient business.

How do I know that your electric utility is about to do something unfair that hurts your business? Because they always do! And they always will. It’s Spy vs. Spy.

Entrepreneurial Strategy is a course that’s open to anyone. Whether you are a business owner or an employee at a big business, we’d love to have you join the course.