As a solar sales professional, the company you represent has a significant impact on your sales approach, customer relationships, and overall job satisfaction. Two of the most common paths in the solar industry are working for an EPC (Engineering, Procurement, and Construction) or installation company, versus working for a solar dealer. While both offer opportunities for growth and success, there are notable differences in how they operate and what that means for you as a salesperson. Let’s break down the key distinctions between these two paths of selling residential solar.
Understanding EPC/Installation Companies
An EPC (Engineering, Procurement, and Construction) company is a full-service solar provider that handles every aspect of a solar project. These companies oversee everything from system design and procurement of solar equipment to installation and ongoing maintenance.
Advantages of Selling for an EPC/Installation Company
- One System to Navigate: Selling for an EPC means you typically only need to know one design software platform. You also will get quickly familiar with their overall procedures including financiers, adders, welcome calls, and more.
- Consistency in Service Level: After your first few sales you will quickly discover the level of service, installation times, communication to you and the homeowner, and overall quality of installation.
Challenges of Selling for an EPC/Installation Company
- Limited Options: Because you are working with one company, you will be limited to the equipment and financier options offered.
- Geographical Limitations: You will be limited in the scope of your market as most EPCs only sell in a regional area.
- Redline Pay Structure: Most installation companies pay salespeople on a redline commission model. They take the hard costs and their profit on each sale. Whatever is left over is paid to you as a commission. Although this can be attractive if you sell at a high price per watt (PPW), it does limit your ability to compete against other company’s quotes. Given the above, you must know the market in your area and be sure to receive a competitive redline PPW from the EPC.
- In Home Selling: You may prefer face-to-face in-home sales. If you do, this is an advantage to working with an EPC. However, if you want flexibility, time savings, and lower cost of doing virtual sales, most installation companies only use the in-home sales method.
Understanding Solar Dealers
A solar dealer focuses on the sales side of the solar business, often partnering with a network of EPCs or installers who handle the technical aspects of the project. Solar dealers operate as intermediaries, connecting homeowners with the right installation company while focusing primarily on customer acquisition and sales.
Advantages of Selling for a Solar Dealer
- Focus on Sales: Solar dealers like REACH Solar often have in-house project managers that will assist in the process of getting your sale to installation and Permission to Operate (PTO). Your primary role is to educate and close deals.
- Multiple Options: Dealers often have pre-negotiated partnerships with several installers, allowing them to offer multiple equipment and finance options to customers. This can lead to faster sales as you have the flexibility to meet different price points and installation needs quickly. REACH Solar is partnered with the top regional installers in the country.
- Potential for Wider Reach: Since solar dealers don’t manage the installation process, they can expand into multiple markets more easily. This can mean a larger target audience and a broader sales territory, allowing for more sales opportunities. When working with REACH Solar, you have 35 states to choose from to grow your solar business.
- Profit Share Compensation Model: Some solar dealers like REACH Solar take a percentage of the profit in each sale versus a fixed dollar amount. In this way, when you raise or lower the PPW to price a project, the dealer’s profit adjusts as well. This allows you to be more competitive in the market and potentially make larger commissions per sale.
- Virtual Sales: It’s easy to see that the solar sales industry is moving to a virtual sales model. Although REACH Solar does allow door-knocking and in-home sales, it is set up very nicely for sales to be done virtually.
- High Level of Service to Homeowners: In the case of REACH Solar, only the very best regional solar installation companies have been chosen. The criterion for selection includes installation times, communication with homeowners and salespeople, Better Business Bureau ratings, Google and other reviews, and more. This ensures your homeowners will receive a shorter installation time and smooth installation process.
- Ability to Switch EPCs Quickly: We have seen several EPCs go out of business since 2022. If an installation company closes its doors, the dealer can quickly pivot to another installer. Your projects will be moved over to the new installer and your homeowner will not be affected. Additionally, you’ll be able to continue to sell in that area.
- Ability to Build a Large Solar Business: REACH Solar gives each Sales Rep the ability to start building a team all over the country immediately. This provides the ability to earn overrides on each sale done by that team. You can grow your income and the foundation of your business by not just relying on the sales that you do each month.
Challenges of Selling for a Solar Dealer
- Learning Different Systems: Because you may be working in a wider geographical area, you may also need to learn design tools, financiers, and deal submission processes of multiple installation companies.
- Changes and Updates: Each EPC and their corresponding financiers will change processes, policies, adders, finance terms, and more. You will need to stay informed of these changes when working with multiple installation companies.
- Multiple Contact Points: You will need to become familiar with a point of contact at each EPC in your sales area. If you are selling in 3 different states like California, Florida, and Texas, you may be working with 3 or 4 different installation companies.
Which Path Is Right for You?
Selling residential solar for an EPC/Installation Company is a great option if you want to only sell solar. In a small market area. This works best for someone that wants to knock on doors to procure leads.
Selling residential solar for a Solar Dealer offers more flexibility and the ability to build a larger solar business for yourself. If you want to grow a large develop long term residual income this may be your best option.
In the end, the choice comes down to your personal strengths and what kind of work environment you thrive in. Both career paths offer opportunities for growth and success in the booming solar market, but understanding the key differences will help you make the most informed decision.
