Solar Dealer Networks
The basics
Much like in the car industry, where authorized local businesses sell nationally known products, solar dealer networks connect top photovoltaic (PV) brands or installers to their end consumers through a “network” of qualified dealers — sales-focused companies or individual contractors.
In the ever-changing landscape of the US solar industry, dealer networks are becoming a big part of the nationwide businesses that deliver PV systems from well-known solar brands to customers within designated service areas.
How do solar dealer programs work?
Also known as solar “partnership programs” or “dealer programs,” solar dealer networks consist of sales organizations (“dealers”) that close deals on behalf of PV brands and installers.
For large-scale dealer networks, the PV manufacturer, distributor, or installer will have an application process that a solar business must complete to be a part of a brand’s partnership program. There may also be fees and product training as part of the onboarding process.
Many of today’s top solar manufacturers and brands offer dealer programs, with a wide variety of contract structures, tiered membership levels, and unique value propositions available.
To illustrate how a typical solar dealer network operates, here is a look at the business model’s three key players.
Installer or Manufacturer
At the top of the pyramid, the solar brand, whether its a manufacturer, large installer, or other company, controls the program details and is responsible for accepting or rejecting applicants. Although companies offer various levels of support, most dealer network programs are designed to help solar businesses with the majority of their project operations, including everything from leads, sales, and design to hardware sourcing, logistics, and installation. It even includes things like financing and after-sales customer support.
Dealers
Once accepted into a dealer network, a solar sales business or “dealer” can begin selling the PV energy systems using components and systems available through the partnership. Talking directly to property owners, it is the dealers' responsibility to design and sell solar energy systems that work for their customers within the parameters of their network partnership agreement.
Customers
At the end of the dealer network chain, the end consumer (or customer) is the property owner, person, or business that will actually be benefiting from the solar power production. Depending on the level of support offered by a network program, customers may be able to contact their dealer or the solar brand directly to ask questions or request service for their PV system.
Why companies join dealer networks
If you’re considering starting a dealer network, you need to know exactly why other companies would want to join up.
By partnering with a strong solar brand or installer like yours, dealers can focus on things like lead gen and sales. Selling within a dealer network lets sales reps confidently talk to customers about the quality of the system that will be on their property, while also guaranteeing a great experience through third-party support for project logistics, financing, and warranty agreements.
By offloading some (or all) of their company's back-end project operations to the resources within a dealer network, partners can spend more time on the growth aspects of their business like marketing, hiring new employees, and educating customers about their PV systems.
Pros and cons
Of course, it can be tough for partners to give up control of certain aspects of their business. Here are some other pros and cons of dealer networks, as seen through the eyes of dealers.
Let's get started
Essentially, sales organizations see solar dealer networks as a great way to join forces with an established brand to deliver high-quality customer solutions. By operating within a solar dealer network, they can streamline many aspects of ongoing operations and run a lean solar business designed for sales and growth.
On the other hand, they may also worry that joining a solar dealer network could limit their ability to provide unique customer solutions, or that product options or contract agreements might restrict the possibilities they can offer.
It’s your job, then, to make the pros compelling, and minimize the cons. But how? That's what we'll cover in the next section.
In Aurora
Aurora for Channel Managers has everything you need to run a successful dealer network. Get a demo to see how we can help with your network.