Most solar companies are struggling in the present economy due to higher interest rates, policy changes, and import tariffs. In fact, 3 powerhouse companies, Titan Solar Power, SunPower, and Lumio closed their doors in 2024. Since 2022 over 100 solar companies have gone out of business. This has occurred while utility rates have gone up in some states from 50% to over 100% since 2020. It would be easy to conclude that solar companies should be thriving. But sadly, most are not. We’ll explore the reason why as we also share that at least one player in the industry is thriving. You’ll learn about the REACH Solar company expansion plans for 2025.
So, other than the factors noted above, why aren’t solar companies expanding when consumers are looking for a solution to ever-increasing utility bills? One theory adopted by the REACH Solar company founders is that the industry needs a shake-up. Solar companies haven’t changed their business model in decades. What may have been successful when interest rates were at historic lows and net metering was the prevalent policy by utility companies, isn’t working today. REACH Solar changed nearly every aspect of the traditional solar company business model when they started in late 2023.
REACH Solar – The Primary Changes from Traditional Solar
Prior to the REACH Solar company launch, it was already decided that to excel in this industry there were 3 parts of the business model that had to be different. At the top of the list was changing how sales reps were paid. Following closely was finding a way to make customer acquisition more affordable. And 3rd was seeking out the very best solar installation companies in the country to work with. When looking closely at the REACH Solar business model there are more than just these 3 changes. However, these are the 3 that most provide an enhanced homeowner experience when deciding to go solar.
Solar Sales Rep Compensation
Solar companies have typically paid Sales Reps according to what is known in the industry as a Redline. Sales Reps in most industries get paid a percentage of the sales price. But not historically in solar. Essentially the Redline is the total of the hard costs of the solar system installation, dealer fees, installation company profit, and solar dealer profit. Sales Reps being paid in a Redline model can add as much as they can on top of that for their commission. In most cases this is not good for the homeowner especially if they didn’t take the time to get multiple quotes. They end up paying more than they should or could have. But in some cases, this is also not good for the salesperson when the homeowner does get multiple quotes. In order to compete for the sale, the Sales Rep may need to lower the price. of the system. But they can only go so low on the price, or they won’t make any commission. Therefore, they need to walk away from the sale.
REACH Solar pays their salespeople differently. It’s called a Revenue Share model. What is different in the Revenue Share model is that REACH Solar adjusts their profit margin according to what the Sales Rep offers to the customer. Therefore, the salesperson can typically offer a lower price to the homeowner and still make a good amount on commission because REACH is talking less of the price of the system as their profit on the deal. This allows salespeople the opportunity to make more sales and REACH Solar to gain more overall profit on the larger number of sales.
Get a more detailed explanation of the Redline vs Revenue Share model.
Solar Customer Acquisition
Traditionally in solar, companies use either door-to-door appointment setters or online marketing, or both to find customers. Both methods can be effective, but they also are very costly. Like in any business, those costs are recuperated in the form of higher prices to the customer.
Instead REACH Solar uses the tried and true, and lower cost method of word of mouth to find its customers. REACH Solar has Setters that are taught how to utilize their network of friends, family, and colleagues to get the word out about the value for homeowners of going solar.
The Setter is then compensated out of each sale. Setters can be students, people looking for extra income, or professionals that work in industries that allow them to speak with homeowners. Professionals in any home improvement business or real estate agents are good examples. Someone with a large following on social media is also a good candidate to become a REACH Solar Company Setter.
This method of customer acquisition lowers the overall cost to the homeowner. This benefits the homeowner, the Sales Rep, REACH Solar, and our planet as it creates more people that are going solar.
Learn more about becoming a REACH Solar Setter
The Top Solar Installers in the Country
One of the challenges for the founders of REACH Solar when they started the company was finding a good solar installation company to take care of their customers. If they chose just one national company to work with, could that company perform at a top level in every market around the U.S.?
After seeing Titan Solar Power and SunPower fail, they decided to do things differently once again. REACH Solar has searched for and chosen the very best solar installation companies in the country. These companies are chosen based on their level of customer service to the homeowner. They must have a superior rating with the Better Business Bureau and a high 4.6 stars or better in Google reviews. They must communicate well with the customer and with REACH Solar. As a result, the REACH Solar company has partnered with 20 of the very best solar installation companies that cover 46 U.S. states.
REACH Solar Company Expansion in 2025
Because of everything shared above and more, REACH Solar is now included in the minority of companies that are profitable in the first year in business. They made this happen while many solar companies are struggling, and dozens have gone out of business.
As a result, REACH Solar is looking for Setters to help with the expansion in 2025. REACH Solar has positioned itself to become one of the top solar companies in the country. To do this, we need people to join us and speak to homeowners that they know and homeowners in general about going solar.
To Learn About Becoming a Part-Time or Full Time Setter with REACH Solar
Visit Solar Sales from Home
There you’ll see a REACH Solar overview video with CEO, Mike Fedick. If you like what you see,
click the link under the video to schedule a Zoom meeting with us to learn more and get started.
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