June 8, 2022
Ever wondered who actually buys solar panels? Spoiler alert: it’s not just the super-green or super-rich. While environmental values and income do play a role, there are surprising patterns in who adopts solar technology—and why.
Who Is Most Likely to Buy Solar Panels? Understanding Solar Customers
The solar industry is booming—but not everyone is equally likely to buy solar panels. From eco-conscious homeowners to large-scale developers, understanding who your ideal customer is can make or break your sales strategy.
In this blog, we’ll explore who’s most likely to invest in solar panels, what motivates their decision, and how you can tap into these buyer segments more effectively.
Key Takeaways
- People interested in environmental issues, with higher incomes, or living in sunny areas are more likely to purchase solar panels.
- Buyers are motivated by ROI, environmental benefits, government subsidies, and clean energy adoption.
- Younger generations are more likely to invest in solar energy due to environmental awareness and energy cost savings.
- Solar panels can appeal to nearly all demographics, making them a versatile product for sellers.
Solar Customers
A recent study has found that there are certain characteristics that make someone more likely to buy solar panels.
This can be very useful information for solar panel companies, as they can use it to target their advertising and marketing towards people who are more likely to respond positively.
The study also found that people who are interested in environmental issues and those who have a higher income are more likely to purchase solar panels. This is likely because these groups of people are more aware of the benefits of solar energy and can afford to invest in it.
Additionally, people who live in sunny areas are also more likely to buy solar panels, as they can take advantage of the free energy from the sun.
Who are the big solar purchasers?
Now, if you are a seller or one in the making, then this question probably has already crossed your mind- "I am selling these, but who is possibly going to buy these?"
We have come up with a list of potential buyers you can target when it comes to sales, after research.
1. Solar developers
2. Utilities
3. Commercial & industrial (C&I)
4. Residential
5. Government & non-profit organizations (NPOs)
6. Other power producers
For each of these categories, we will go into more detail:
1. Solar developers
They are the ones who finance, engineer, procure, operate, and maintain the solar plants on behalf of the owners, i.e., utilities or other commercial entities that buy electricity under long-term agreements known as power purchase agreements (PPA).
Developers typically have long-term visions and seek to hold their solar projects for 10 years or longer to maximize returns through avoided land costs, economies of scale, and operational efficiency gains.
In order to finance their projects, developers often seek out tax-equity investors such as large banks or insurance companies.
2. Utilities
A utility is a company that provides electricity, natural gas, or both to customers in an area where it operates as a monopoly.
Solar photovoltaic (PV) systems are connected to the utility grid and generate electricity that is used to offset energy that would otherwise be provided by the utility.
When solar PV systems produce more electricity than is needed at a given time, the excess electricity is typically sold back to the utility under what’s known as net metering arrangements.
These relationships between utilities and solar PV system owners are governed by state laws and regulations.
3. Commercial & industrial (C&I)
Commercial businesses are those that sell goods or services to other businesses, while industrial businesses are involved in manufacturing products.
Solar PV systems for commercial and industrial customers are often used to offset on-site energy consumption, lower energy bills, and earn renewable energy credits (RECs).
In some cases, solar PV systems can also be used to provide power for on-site electric vehicle charging stations or backup power in the event of a grid outage.
4. Residential
A residential solar customer is an individual who purchases electricity for personal use at a home or apartment.
Solar PV systems for residential customers are often installed as part of a lease or power purchase agreement (PPA), which allows homeowners to pay for the system over time while receiving the benefits of lower energy bills.
In some cases, solar PV systems can also be purchased outright by the homeowner.
5. Government & non-profit organizations (NPOs)
Governments and NPOs are often large consumers of electricity, making them good potential customers for solar PV systems.
Solar PV systems can be used to offset the cost of energy consumption, lower carbon emissions, and earn renewable energy credits (RECs). In some cases, government incentives may be available to help offset the cost of installing a solar PV system.
6. Other power producers
These are companies that generate electricity from sources other than the utility grid, such as natural gas, coal, nuclear, or hydro power.
Solar PV systems can be used to offset the cost of energy consumption, lower carbon emissions and earn renewable energy credits (RECs).
In some cases, solar PV systems can also be used to provide power for on-site electric vehicle charging stations or backup power in the event of a grid outage.
What drives the potential buyers to go solar?
Now that you know who your potential buyers are, it is important to understand what drives their purchase decisions. The main drivers are:
1. Economics
This is probably the most important driver, as buyers want to see a return on their investment (ROI). They will want to know how much money they can save by switching to solar power, and how quickly they will see a return on their investment.
2. Sustainability
Many buyers are interested in solar power because it is a clean, renewable source of energy. They may be motivated by a desire to reduce their carbon footprint or to support the growth of renewable energy.
3. Government incentives
In some cases, buyers may be eligible for government incentives that can offset the cost of installing a solar PV system. These incentives can vary depending on the country and state where the buyer lives.
4. Personal preferences
Some buyers may simply prefer solar power because it is a cleaner, more sustainable option than traditional sources of energy. Others may want to install solar PV systems as a way to support the growth of renewable energy.
Also Read: Solar Sales Playbook: Scripts and Tactics for Field Teams
The Benefits of Installing Solar Panels
We caught you up on who is most likely to buy solar panels. Now, let's discuss the benefits of installing solar panels. Knowing the benefits of solar systems is important for a solar company since that is how you'll be marketing it to your solar customers.
Benefits of solar energy-
1. Clean Energy Source
The benefits of solar power are many. Solar energy is a clean, renewable resource that can be used to generate electricity, heat water, and provide space heating and cooling for homes and businesses.
Solar power is becoming increasingly popular as the cost of installing solar panels continues to fall.
It is an environmentally friendly way to generate electricity because it does not produce emissions or pollutants.
The systems also have a small footprint and can be installed on rooftops or in open spaces.
2. Reduce the electricity bill
Solar power can help reduce your electric bill by offsetting the cost of purchasing electricity from your utility company. Solar systems can also generate income through the sale of Renewable Energy Credits (RECs).
RECs are credits that represent the environmental benefits of generating electricity from renewable sources. Solar power can also help you become less reliant on the electric grid and reduce your carbon footprint.
3. Solar System Lifespan
Solar systems require little maintenance and have a long lifespan. Once installed, solar panels will continue to generate electricity for 25 years or more.
4. Government incentives
The upfront cost of installing a solar panel system can be offset by state and federal tax credits, as well as utility rebates. Solar power is an investment that will pay for itself over time and increase the value of your home or business.
What demographic buys the most solar panels?
There is no definitive answer to this question, as there are a variety of factors that can contribute to someone's decision to purchase solar panels.
However, some studies have shown that younger generations are more likely to invest in solar energy, with Millennials and Gen Zs being the most likely to do so.
This could be due to a variety of reasons, such as an increased awareness of environmental issues or a desire to save money on energy costs.
Whatever the reason, it seems clear that solar panels are and will be becoming increasingly popular, which is good news for solar companies!
How Sunbase Can Help
Selling solar panels effectively requires reaching the right customers, managing leads efficiently, and streamlining proposals. Sunbase offers tools that make this easier for solar companies:
- Lead Management: Track and manage leads from multiple sources in one place, ensuring no potential customer slips through the cracks.
- Proposal Software: Quickly create professional proposals for residential, commercial, or industrial clients, saving time and improving conversion rates.
- Customer Insights: Access data on customer preferences, purchase drivers, and demographics to target the right audience with personalized offers.
- Workflow Automation: Automate follow-ups, reminders, and documentation so your sales team can focus on closing deals.
- Reporting & Analytics: Monitor sales performance, ROI, and campaign effectiveness to make informed business decisions.
- Mobile Access: Access leads, proposals, and CRM data on the go to stay productive in the field.
- Appointment Scheduling & Follow-ups: Schedule site visits and consultations with automated reminders to stay organized.
- Customer Relationship Management (CRM): Maintain detailed customer profiles and track communication history for better engagement.
By using Sunbase, you can reach the right audience, streamline operations, and ultimately increase sales while providing better service to customers.
Conclusion
As a solar panel seller, you were probably wondering who is most likely to buy solar panels. The answers probably may have surprised you, as it's not just environmentally-conscious people or those who live in sunny climates and are worried their inverter might emit greenhouse gas emissions.
In fact, anyone can benefit from solar power or a solar energy system, as they can provide significant cost savings.
So, who is most likely to buy solar panels? The answer is everyone in the world who believes in science and who believes climate change is real and is interested in paying less for their electricity!
Whether you're looking to save money or do your part for the environment, solar panels are a great option.
If you're thinking about selling solar panels, be sure to target a wide range of demographics - there's sure to be a market for them, no matter who you're talking to. With so many benefits for your company and obviously customers, what is stopping you from making a sale?
About Sunbase
Sunbase helps solar companies succeed through a suite of Solar CRM tools like Solar Lead Management, Solar proposal software, etc.! To book your free demo or an appointment, contact us here.
FAQs
How long do solar panels last?
Solar panels typically last 25 years or more with minimal maintenance.
How should solar companies target customers?
Companies should focus on multiple demographics and buyer segments while highlighting financial, environmental, and personal benefits of solar energy.
Do solar panels require a lot of maintenance?
No, solar panels require minimal maintenance. Cleaning a few times a year and routine inspections are usually enough.
Are there financing options available for solar panels?
Yes, many providers offer loans, leases, and Power Purchase Agreements (PPAs) to make solar systems more affordable.
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