As a successful solar business, you understand the challenges of reaching the top. From marketing to selling systems, every project requires significant attention to detail. Now that you have established processes and are efficiently managing installations, you may be considering expanding your business by starting a sales dealer network. This network can provide complementary expertise and help you scale faster by connecting with other companies facing similar constraints.
Starting a dealer network may seem like a daunting task, but it can help you expand your reach, introduce solar to more customers, and increase your profits. In this series, we will explore the steps to successfully start a dealer network, starting with the basics of what dealer networks are and what potential partners are seeking. Dealer networks, similar to the car industry, connect top photovoltaic (PV) brands or installers to end consumers through a network of qualified sales-focused companies or individual contractors. These networks play a significant role in delivering PV systems to customers within designated service areas.
Solar dealer networks, also known as partnership programs or dealer programs, consist of sales organizations or dealers that close deals on behalf of PV brands and installers. Large-scale dealer networks typically have an application process, fees, and product training for solar businesses to complete in order to join. Many top solar manufacturers and brands offer dealer programs with different contract structures, membership levels, and value propositions.
By starting a dealer network, you can expand your business and gain access to more customers. Three key players are involved in the typical operation of a solar dealer network: the installer or manufacturer, the dealers, and the customers. The solar brand controls the program details, supports solar businesses in various project operations, and accepts or rejects applicants. Once accepted into a network, dealers can sell PV energy systems using components and systems available through the partnership. Customers, as the end consumers, benefit from the solar power production and can contact their dealer or the solar brand directly for any questions or service requests.
Companies join dealer networks to focus on lead generation and sales, confident in the quality of the system offered and the support provided by the network for logistics, financing, and warranties. By offloading back-end operations to a dealer network, partners can dedicate more time to business growth, marketing, hiring, and customer education. However, joining a dealer network may entail giving up some control over certain aspects of the business, limited flexibility in product options and project control, and potential competition within the network. Nevertheless, the benefits of joining a network, such as access to high-quality solar products, streamlined installation services, connected customer financing options, training, and ongoing support from industry experts, outweigh the drawbacks.
In the next blog post of this series, we will dive deeper into how to build a successful solar dealer program and address the concerns or challenges that partners may have. To learn more about dealer networks, visit our dedicated page for channel managers or schedule a personalized demo.
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