Everyone that is currently selling solar or running a solar company would tell you that the landscape of the solar business has changed significantly in recent years. Some of the changes, if not all, are for the better in my opinion. Yes, higher interest rates and a shift away from net metering have made sales a bit tougher to come by. But we have been able to utilize third-party owned (TPO) products, cash purchases, and consumption batteries to offset that. Higher interest rates have also contributed to the demise of some industry giants and some smaller companies that were hanging on by a thread. There has been a thinning of the herd in solar. This is not necessarily a bad outcome for the long term of the industry either. Given market conditions and trends, what are some strategies for selling solar in 2025?
I started selling solar in 2022. I knew nothing about the history of the industry or how solar was traditionally sold. However, I have been in sales and sales management most of my career. I share this because I have a different perspective than someone that has been in solar for many years. What I believe that we’re witnessing, and will continue to, is the maturing of the residential solar industry in the United States. Residential solar will not be an outlier working on its own, setting prices higher than it should, and tolerating solar installers to walk away from homeowners and not paying sales reps. The residential solar industry is changing. Only those companies and salespeople that uphold high levels of integrity and customer service will survive.
Residential solar in the U.S. is going to become and will stay very competitive. Pricing needs to be fair to the homeowner and to the salesperson. Installers will need to be very efficient in buying equipment and managing installations. And salespeople will need to better recognize what the needs and desires of the homeowner are and treat each one as a unique buyer.
Strategies for Selling Solar in 2025
Increased Consumer Awareness
Solar is not yet a mainstream product or industry. But it is becoming both. As more consumers understand the need for solar to keep their utility costs in check and to keep this planet healthy, they will also become more educated. They will be a very different type of customer than what the solar industry has been used to. Homeowners will know why they are seeking solar and what benefits they want to receive from it. But they will also know more about solar equipment than ever before. Salespeople need to be prepared for educated customers.
Customer Education
Until what I mentioned above becomes common, solar salespeople will need to spend more time educating homeowners on how solar can provide them with the benefits they want to receive from it. Of course, that means spending more time up front learning what each homeowners’ needs and desires are. This will require a different approach to each homeowner.
The One Sit Close
The “one sit” close, where a salesperson walks into someone’s house or gets on a Zoom call with them, and comes away with a sale after never having spoken with them before, will not occur as often as it has in the past. Consumers will become much more discerning and want to do some of their own research before deciding to purchase a $20,000 to $50,000 solar system. You might say, “people do that all the time when they buy a car”. I will disagree with you. When buying a car, it is comparatively simple for a consumer to determine the type of car, even the make and model of the car they want to buy, and research average pricing in their local area before walking into a dealership. In other words, they are far more educated about what they are buying before they ever talk to a salesperson.
However, a consumer can’t do that quite as easily with solar. Each design is unique to the home and the consumption of the occupants of the home among other variables. So, the price of one solar system can be very different from another. However, consumers will more often take the time to find information online before making their decision. Salespeople are going to have to slow their roll a bit and spend more time understanding needs and benefits as mentioned above, and then educating the client, which was also mentioned above.
Homeowners will also want to get competitive quotes more often than in the past. Therefore, salespeople are going to have to make a solid connection and develop trust with a homeowner and provide a very competitive price upfront to win their business.
Lowering the Cost of Customer Acquisition
One of the strategies for selling solar that solar companies, dealers, and salespeople should adopt to lower the price of solar to homeowners and be more competitive is to lower their customer acquisition cost. Traditionally homeowner leads are procured through either door-knocking, online advertising by the solar company or salesperson, or the purchase of leads from an online marketing company. The effectiveness of each of these methods varies but each can be. However, each is also expensive. All leads must be paid for even if most of these leads do not result in a sale.
You might think that salespeople that door-knock to get their own leads do not have to pay for those leads. They are paying for them in time. It takes a great deal of time to walk a hundred houses to perhaps get one or two leads.
Innovative solar dealers and salespeople are taking a different approach to acquiring leads. Nearly every single American over the age of 18 knows homeowners. Some people are in professions in which they connect with homeowners every day. People that are in real estate, roofing, windows and doors, and many other businesses can be a great source of leads for solar companies. These people do get paid when one of their leads decides to install solar. However, they are not being paid for leads that do not result in a sale. Therefore, the overall cost of sale acquisition is significantly lower.
Strategic Partnerships
Another of the strategies for selling solar in 2025 is that solar salespeople should explore relationships with professionals in industries that speak to homeowners on a regular basis as mentioned above. A real estate agent or roofer that has already closed a transaction with a homeowner already has their trust and has built credibility. They may also want to have the opportunity to earn another commission by referring that homeowner to you for solar.
Pricing of Solar Systems
The solar industry, whether it’s deserved or not, has a reputation of overpricing solar systems when homeowners are unaware of what they should cost. Because salespeople are paid on a price-per-watt (PPW) basis, the higher the cost or sales price, the more money the salesperson makes. The practice of selling solar systems at an unfair or over inflated price has seen its days. Dealers are no longer rewarding salespeople for gouging homeowners. A fair price for the homeowner and a fair commission for the salesperson is now the standard.
Use of Technology
AI technology has changed virtually everything and solar is no exception. Solar salespeople use software to design a solar system which includes equipment, placement of panels, shading, pricing, financing, and more. What is changing is the capability and accuracy of the software being used. Companies like Subcontractor Hub are taking this software to a level that enhances speed, accuracy, integrates with financiers, and more. The platform also offers a dedicated customer portal, allowing clients to monitor project progress, view proposals, and communicate directly with their sales and project management team, fostering trust and loyalty.
Brand Awareness
Moving forward salespeople will benefit from branding themselves instead of simply acting as an employee of a solar installation company or dealer. A personal brand establishes you as a knowledgeable and reliable expert in solar energy. Real estate is a good example of this. Real estate agents brand themselves independently and alongside their broker. This provides homeowners with the comfort level that they are dealing with a professional that has long term aspirations for staying in that business. Sharing testimonials, certifications, and a history of successful projects builds trust with potential customers.
Branding highlights what makes you unique, such as your approach to customer service, expertise in specific solar solutions, or dedication to sustainability. In a crowded market, standing out can help attract more customers. A recognizable personal brand opens doors to connect with industry professionals, influencers, and potential clients. And because solar salespeople tend to switch companies periodically, a strong personal brand helps you remain relevant even if you do change companies or enter new markets.
Customer Reviews
Your branding efforts should include customer reviews. Online reviews are incredibly important. Not just for the company that would install the system but also for the salesperson. Independent online reviews give prospective customers a comfort level when doing business with you and your installation company.
Conclusion
To be relevant and competitive in the solar industry moving forward, salespeople will need to conduct themselves as a business owner. They should not just be a 1099 salesperson working for a solar company. They must treat what they do as an entity independent from their employer. Solar salespeople must adopt strategies for selling solar in 2025 that previously were not necessary. This will help them with developing credibility in the marketplace, and leverage should they have issues with their present employer.
