After numerous cuts to solar incentives across the nation, 2024 has brought tough conditions for contractors.
Incentive reductions have been a trend from coast to coast, with several states choosing to reduce compensation for those
who return their excess energy back to the grid.
This has dealt a big blow to local markets, in some cases plummeting demand for installations. So how can contractors cope? In this post, we examine how sourcing exclusive pre-set appointments is becoming a lifeline for solar businesses in affected areas.
Hacking Away at Solar Support
In California, the adoption of Net Energy Metering 3.0 (NEM 3.0) has drastically reduced the financial benefits of solar.
This new policy effectively reduces the value of electricity exported to the grid by 75% compared to previous rates.
Its rollout brought on an 80% contraction in the state’s solar market, and companies have reported sales decreased by as
much as 30% compared to previous years. Many contractors were forced to shut their doors. Around 17,000 jobs were lost
due to the steep drop in demand.
Idaho followed suit soon after, cutting its own NEM program and adding a monthly charge for solar customers. The state’s main utility, Idaho Power, also covers territory in Oregon. There it also attempted to achieve similar reductions, and despite official rejection, is continuing to pursue rate reductions.
In West Virginia, Mon Power and Potomac Edison also pushed for their own revisions, aiming to halve the original 1-to-1 compensation rate. Negotiations instead ended with a 21% drop in the compensation rate, set to go into effect on January 1st, 2025.
Arizona’s own solar compensation policy has been rife with conflict over the past years, with program cuts being re-voted every election cycle. Its latest vote saw a 10% reduction, though 37% was originally proposed.
Finding Certain Sales Requires Stronger Leads
Such instability has made homeowners increasingly wary of investing in solar, translating to lower sales numbers for contractors. Long-term, the outlook isn’t great: projections warn of a potential contraction in nationwide solar installations due to elevated interest rates and slowed legislative support for incentives.
If contractors want to ensure a healthy revenue stream moving forward, it’s time to leverage more targeted lead-generation methods. Teaming up with a supplier that can deliver booked appointments with customers who have been confirmed as enthusiastic prospects is one of the best ways to sidestep current sales struggles. By focusing on informed leads that demonstrate a real commitment to going solar, contractors can lose less time to customers who will be scared off by recent incentive cuts.
Grid Freedom is one of the few agencies in the industry capable of delivering leads of this caliber, 100% exclusive and competition-free. Installers have come to rely on us for solid sales opportunities, not just for lead quality, but also for our pro-contractor terms and business model.
Contractors pay no extra fees, subscription dues, or other tacked-on charges - a problem that is all too common among other lead dealers. Moreover, our service requires no contracts or minimums, leaving one free to source leads at the frequency and number they actually need. With this resource, installers can breathe easier knowing that paying customers can be found and converted quickly, even as the market slows.
Meet Install-Ready Customers: Book Pre-set Solar Appointments at www.GridFreedom.com
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