Commercial vs. Residential Solar Market
As the solar industry continues to expand, we are starting to see a shift from solar companies previously focussing on residential projects starting to see great success in the commercial market.
This blog post explores the contrasts between the two, drawing upon extensive experience in the field to uncover why commercial solar projects could be the next big frontier for solar companies.
The Residential Solar Market: A Crowded Space
Residential solar has been a booming sector for years. Homeowners across the U.S are increasingly aware of the vast benefits of solar systems. However, the growth in demand has led to an increasingly saturated market. According to industry reports, residential solar installations have seen a consistent decrease in costs, benefitting consumers but intensifying competition among providers.The Untapped Potential of Commercial Solar
In contrast, the commercial solar sector is burgeoning with opportunities. The U.S. Small Business Administration reports that there are over 30 million small businesses in the country, yet virtually no one seems to be targeting these companies. Small to mid-sized commercial solar projects (ranging from 20 kW to 200 kW) are particularly lucrative. They offer manageable yet profitable ventures, with a faster return on investment compared to larger projects. The commercial sector's growth rate, hovering around 10% annually, further underscores the expanding opportunity.Why Focus on Small to Mid-Sized Businesses?
These businesses represent the backbone of the American economy, yet their solar energy adoption rate is relatively low compared to the potential market size. Our clients has seen an increasing amount of traction within this space of larger projects with higher profit margins compared to residential.
With commercial electricity prices generally being higher than residential rates, the cost-saving benefits of solar for businesses are substantial.
Moreover, government incentives are in some states covering as much as 80% of the costs which makes solar companies able to present a solar system with an ROI within 1-5 years followed by decades of free energy.Leveraging Market Opportunities
Our role at Jako Media is more than just lead generation; it's about creating meaningful connections between solar companies and untapped market segments. With a nuanced understanding of the commercial sector's needs, we strategically position our clients to capitalize on these opportunities.Conclusion:
The commercial solar market is ripe for growth, offering a less competitive yet highly profitable avenue for solar companies. At Jako Media, we’re committed to helping our clients tap into this potential by providing high-quality leads and appointment setting services that cater specifically to the commercial solar sector. With millions of such businesses across the U.S. still untapped for solar energy, the potential for growth and expansion is immense.