New SunWize Grid-Tie Systems

Addendum: Best Practices
Addendum
Steps-To-Success Commercial Installation
Introduction
While the steps involved in residential and commercial PV installation are virtually identical, what transpires within each step is significantly
different. Residential and commercial installations are like apples and oranges, but both require disciplined progression through a
progress where steps must be followed in sequence and not short-cut or skipped. This document examines each step in more detail for
commercial installations, highlighting common pitfalls as well as proven practices. It is intended as a companion and contrast to Stepsto-Success:
Residential Installation.
Lead Generation
Like its residential counterpart, the key to success in a commercial solar installation
business is to have a steady volume of incoming leads. However, generation of commercial
leads is completely different than residential. Commercial leads come from
direct solicitation of businesses, responding to public RFPs (Requests for Proposals),
and through third parties such as PPA (Power Purchase Agreement) providers.
Common Pitfall: Many installers do not sufficiently focus their efforts into opportunities
where they have the experience and competencies to be successful. Partnering
with experienced commercial installers on projects is one way to avoid this pitfall.
Proven Practice: Successful commercial installers target specify groups of customers
through vertical marketing (e.g. wineries, national retailers, storage companies,
education, government agencies).
Lead Qualification
Once a commercial opportunity comes in, it needs to be carefully evaluated using a
different set of criteria than that used for residential homeowners. Installers examine
factors such as project size, location, customer credit worthiness, competition,
performance warranty requirements, need for partners, and technology. The most
important factor is the potential financial return, as virtually all commercial systems are sold on the basis of their economic merits.
Common Pitfall: Pursuing a commercial opportunity requires a significant investment of resources. A common mistake is not obtaining
the previous 12 months of utility bills to analyze the financial return and determine upfront whether it is sufficiently attractive.
Proven Practice: Residential installers successfully expanding into commercial installations begin with small commercial projects in the
10 to 50 kW range and work up from there.
Site Evaluation
Each commercial roof is different, with many considerations. Unlike residential, shade analysis is seldom needed, structural analysis is
a requisite, and the electrical service often requires upgrading. Commercial projects out to bid typically have a formal walk-through that
includes all bidders.
Common Pitfall: Inexperienced installers often fail to pay adequate attention to the roof and its warranty.
Proven Practice: An effective way not to void the roof warranty is to contact the contractor who installed the roof and have them specify
and install any flashings and waterproofing. Non-penetrating racking solutions may also help.
Customer Proposal
Commercial proposals contain sophisticated financial analysis and are at the heart of a long and complex sale. Commercial proposals
undergo frequent revisions taking anywhere from 6-12+ months, including preliminary designs and technology selection. In addition, the
sales cycle is measured in months and often exceeds a year in duration. Instead of a homeowner, the proposal has to be sold to multiple
stakeholders, including owners/top management, CFOs/controllers, operations and facilities managers.
Common Pitfall: Many installers do not develop the financial expertise to understand the more complex commercial rates structures, tax
accounting, and the advanced financial modeling focused on return on investment, internal rates of return, net present value, etc.
Proven Practice: Many commercial systems are sold using the “peak shaving” model of financial justification; using solar to eliminate the
most expensive electricity.
Financing
Financing is often the most critical consideration and biggest obstacle in a commercial project. Financial leases are available to companies
who want to own the systems at the end of the lease period. Power Purchase Agreements, where third parties own and operate the
system and sell the electricity at an attractive rate to the business, are the most common form of financing for businesses. Also, Federal
cash grants (30% of the system cost) are now available to businesses that need a cash rebate to help pay for the system or do not have
enough of a tax bill to be able to make use of a tax credit.
Common Pitfall: Most installers underestimate the difficulty in obtaining financing for a large project. Credit markets are currently very
tight and PPA providers and lenders are extremely selective, working only with the lowest risk and highest creditworthy businesses.
continued
144