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Have you ever thought about why most MicroFIT solar companies are still charging $35-40,000 to complete a 10 kW installation? It is a good question to ask yourself. We already know that the equipment costs less than $20,000 since Paid4Power is offering complete 10 kW MicroFIT Kits for less than that amount.
So where does the other $20,000 go to?
The obvious answer to this question is: Company Profit, but the problem digs a little deeper.
Lets say you had a Pizza business. Each pizza you sell costs the customer $15 on average. Your cost for all of the toppings is $5 and the average labour, overhead and marketing cost is $5. So from your $15 sale of the pizza, you now only have $5 left in profit. Not much is it? So you are only making $5 in profit, how do you expect to stay in business.
The answer: Volume
Earning $5 per Pizza only makes sense when you are selling 100-200 Pizzas per day. Now you are earning $500-$1000 per day in Profit!
Now, lets bring it back to solar panel systems. Most solar companies are selling 1-2 systems per month. Lets say the average profit per system (for the other guys) is $10-15,000, so their business is earning $10,000 to $30,000 every month. Not bad for a small business.
Now lets look at the Paid4Power business model. Yes, our prices are drastically lower than the competition, but lets look at how many installations we are doing each and every month. Our typical sales volume is between 10 and 20 systems per month. So, like the Pizza business, we are earning less per sale, but in the end we are a more profitable and stable business.
Here is how you can save on your solar project:
Cost Saving Tip Number One: Work with a Professional
Hire a MicroFIT Solar Installer that is qualified and experienced to get the job done. Working with a guy who does solar on the side, or a friend of the family may be a good solution for them, but in the end you could be left with an over-priced installation and poor workmanship or materials. In the solar industry we are often asked for a reference to a good roofer because sometimes people will replace their roof before the solar panels are installed. We recommend a company that is not only professional and efficient, they are always the cheapest bid. Customers often associate high cost with high quality. Unfortunately, this is usually not the case in the construction industry. The contractors that are usually the lowest price are actually the best ones to hire. These contractors work fast and efficiently in their specific trade, they are always busy, never looking for work, and they always get the job done right the first time.
Cost Saving Tip Number Two: Buy only what you need
Most of the solar companies in Ontario a pushing expensive products that will not increase your return on investment. They are looking for ways to justify the high cost of their systems. When a MicroFIT solar company demands that you buy the most efficient panel, it is usually not in your best interest. Keep in mind that when it comes to solar panel efficiency, it has nothing to do with how much energy the solar panel will produce, rather it has everything to do with the size (square footage) of the solar panel relative to its STC (standard test conditions) nameplate rating.
So, a 10 kW system of high efficiency solar panels will produce the exact same amount of energy as a 10 kW system of lower efficiency solar panels. What is the difference? The high efficiency system will take up about 100 sq ft less of your roof space. If you are not limited in the area of your roof, you will save a lot by using a more economical solar panel than by choosing the panel that is more efficient.
Cost Saving Tip Number Three: Don’t Delay, Buy Today!
Well this might be an overstatement, the principal holds true. Since MicroFIT solar is mainly supported by government incentives, the longer you wait, the less money you could earn from your system. The government incentives almost always go down year over year, so waiting for the price to come down on your equipment could result in a much lower government incentive. The savings in reduced equipment cost will likely not outweigh the benefits the high subsidies paid by the government. I have seen way too many clients wait for better pricing only to be too little too late to get the best incentive from the government. Don’t Delay, Buy Today!