Core Solar Business Models Home and Business
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- RESCO/PPA Model (Third-Party Ownership)
- How it works: A solar company (RESCO) finances, installs, and maintains the system on the customer's property.
- Customer's role: Pays only for the electricity produced, often at a lower rate than the utility.
- Benefit: Eliminates upfront investment for the customer and provides operational savings with minimal hassle.
- Best for: Customers who want solar benefits without the upfront costs or maintenance burdens.
- CAPEX Model (Customer Ownership)
- How it works: The customer makes a significant upfront investment to own the solar system.
- Customer's role: Pays for the system, which is often subsidized or incentivized by government programs.
- Benefit: Allows the customer to retain ownership and potentially gain accelerated returns through tax credits and energy savings.
- Best for: Customers with available capital and a desire for long-term control over their energy assets.
Other Efficient Business Models
- Installation Services: A major revenue stream comes from providing professional, reliable installation of solar systems for residential, commercial, and industrial clients.
- Maintenance and Monitoring: Offering ongoing services like performance monitoring, regular check-ups, and proactive maintenance can create recurring revenue and foster long-term customer relationships.
- Energy Auditing and Consulting: A valuable service is auditing a client's current energy use to identify inefficiencies and recommend customized solar solutions, even helping them reduce consumption before installing panels.
- Financing and Loan Services: Assisting customers with financing options and helping them access government subsidies and incentives makes solar adoption easier and more accessible.
