Friday, June 14, 2013

Shopping for solar just got easier

By TIM FAULKNER/ecoMass.org News staff

CAMBRIDGE — Think of it as the Expedia for the residential solar business. EnergySage, the online one-stop shop for going solar, tries to take the confusion and indecision out of making the leap to renewable energy. The solar marketplace offers multiple quotes from local installers that include rebates, tax incentives, financing options and an accurate payback on your investment.
The company rolled out the service in February in five states, including Massachusetts and Rhode Island.

Here’s how it works:

Fill out the online form by adding your address, phone number and monthly electricity costs.

Installers reach out to you. Pre-approved installers call to arrange a visit to your home or business for an estimate.

Get quotes. After the site visit, installers post quotes on your EnergySage page. Their quotes include information about the brand of panels, out-of-pocket costs, net annual savings and annual rate of return. All of the state and federal incentives are included, as well as lease-vs.-buy comparison.

Make a decision. All the information is there to compare prices, including profiles of the installers, their completed projects and customer testimonials. There’s plenty of educational information about how solar works, as well as definitions of solar lingo and terms.

As solar panel prices continue to fall, the EnergySage platform aims to lower the so-called soft costs. These include installation and the customer acquisition costs, which is the time and money installers spend to reach prospective customers.

Soft costs can account for as much as 50 percent of installing solar panels. That cost also includes fees for permitting and inspection, financing, and connecting to the grid.

“The cost of the panels is now cheaper than acquiring the customer,” said Vikram Aggarwal, CEO and founder of EnergySage. As solar becomes more cost competitive with other energy sources, there is still a vast area between the customers and installers for saving money and "that’s where EnergySage is playing,” he said.

Installers like EnergySage because it reduces a customer’s decision time from months to weeks. The installers pay EnergySage a commission for any new business, presumably a worthwhile investment for the time saved.

Customers benefit by having an aggregated cost comparison that simplifies the search and helps them make a decisive choice about going solar.

Hence, the company's slogan: “Solar Shopping Made Simple.”

Solar projects of 1 megawatt or less for homes, businesses and multi-housing units are the target market, but expansion of other renewables such as wind and geothermal are planned.
EnergySage is also available in Connecticut, New York, New Jersey and Colorado.

Aggarwal said the Massachusetts and other markets are doing well while Rhode Island continues building its network of installers within the service.

Rhode Island solar installers, developers and consultants have expressed frustration about the lack of growth in the small-to-medium renewable market. As the solar market continues to create jobs and grow nationally, states such as Massachusetts, Connecticut, Vermont and New Jersey consistently rank in the top 10 for new solar projects installed per capita. Meanwhile, Rhode Island sits well in the bottom half of national rankings.


Eileen Newman, corporate communications spokeswoman for EnergySage, said Rhode Islanders likely need more information about rebates and other incentives offered by the state. A state tax credit and new financing system are making their way through the Rhode Island General Assembly.