Task 24
Task 24
SHC Task 24

Active Solar Procurement

Lessons Learned

Project Approach:

Do

  • Define complete projects from start to finish including; preparation, tenders, campaigning, quality control in design, installation and evaluation.
  • Obtain commitment and financing for the entire project, preferably through a formally financed project proposal.
  • Focus on larger buyer groups large enough for large sales so that price reductions are possible.
  • Try to maintain a continuity of specialists and champions through the whole period of project life.
  • Analyze and define organizations and groups that benefit from the project. Have them support the project.
  • Analyze and define organisations and groups opposed to the project. Address their obstacles.
  • Have a simple project approach with clear benefits for both buyers and the intermediary organizations.
  • Formalize buyer commitment, i.e. contracts, participation in foundation, company etc.

Don't

  • Do not introduce new systems, components or installation procedures in large amounts. Before introduction important field-testing should take place in real buildings outside laboratories.
     

Buyer groups:

Do

  • Look for cases and examples within the following categories:
    • Complimentary Product Based Buyers
    • Sole Product Based Buyers
    • Utilities
    • Home Builders & Construction Co.
    • Landlords & Housing Association
    • Municipalities
    • Non-Government Organization
    • Vacation Resorts & Hotels
    • Tenant Organizations
       

Installers:

Do

  • Clearly define the installers role
  • Insure that the benefits for the installer is clearly understood and competitive with the benefits of their other activities.
  • Make sure that the installer is educated in the installation of solar water heaters.
  • Utilize the installer for what he is good at: installation of components.
  • Be aware that some installers might persuade the customer not to invest in solar.
  • Be aware that some installers might give the customer an unrealistically high offer.
  • Preferably use installers that you know maintain high standards of quality and are in favour of solar.
  • It is possible to agree with installers on standard prices for the installation that gives the customer a fixed and known end price.
  • Be aware that installers are used to having margins on components and expect compensation if they do not deliver the component.

Don't

  • Do not expect installers to place more effort in marketing solar than other products.
  • Do not expect installers to accept lower margins on solar products than on other products.
  • Do not assume that the installation of solar water heaters is understood and well known for installers.
  • Do not rely on the installer to do the marketing and completion of contract.
  • Do not expect all installers to be in favour of solar.
  • Do not expect installers to read large texts.
     

Manufacturers:

Do

  • Notice that many manufacturers are vulnerable for external interventions on the market and have had bad experiences i.e. from subsidies stop's and go's etc.
  • Notice that many manufacturers need high margins for financing marketing efforts and investments.
  • Define projects that increase sales, but that do not change market conditions to be unfavourable for sound manufacturers not involved in the project.
  • Make sure that manufacturers are aware of the education and skill of the installers of their products.

Don't

  • Do not introduce projects that will stop the market for a period.
  • Do not expect manufacturers to be in favour of projects that will change market conditions.
     

Marketing:

Do

  • All experiences show that the marketing effort to sell a solar water heater is substantial.
  • Customers needs a salesman to speak with who can answer their questions.
  • Customers needs clear and easily understood arguments about:
    • Economy
    • Environment
    • Quality
    • Independence
  • Customers demands environmentally and economically sound heating solutions - not necessarily solar - they compare with other alternatives.

Don't

  • Do not expect customers to sign up just from being informed about the good qualities of solar water heaters.
  • Do not make choices and arguments complicated.
     

Internet sales:

Do

  • Use the Internet to provide information.
  • Be aware that to convince customers needs other means (direct contact etc.)

Don't

  • Do not expect customers to make the final order via internet.
     

Quality:

Do

  • Good quality is a must.
  • Use only products tested as minimum according to new European standard.
  • Insure that installers are well educated in the installation of the specific solar water heaters.

Don't

  • Do not rely on usual installation practices to secure the quality of the solar water heating installation.
     

General:

Do

  • Be enthusiastic about solar - it is the energy source of the future.