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It’s not much, but SEIA and its partner, GTM Research, have included some very general solar water heating market information in its 3rd quarter executive summary.
Free Hot Water has talked to GTM researchers before about the lack of solar water heating data in their reports. They explain that there are two problems:
First, not enough solar installers are willing or able to give them enough data to create a report. So, if you’re a solar water heating installer or financier or manufacturer who’d like participate, please contact me at solarfred@freehotwater.com, and I will connect you with the person who collects data.
The second problem is a little more challenging. That is, it costs money to produce these reports, and despite the number of installers and solar thermal distributors and manufacturers in the U.S., few want to shell out the money for the full report.
As our CEO Paul Burrowes commented a few months ago at Intersolar, there’s little need for solar thermal install data. Why? Because there is such huge untapped potential. Every roof is a market opportunity, and, sadly, there are plenty of empty roofs in the U.S. that are ripe for solar heating and cooling.
Nevertheless, there is a lot of press around these reports, and it would benefit the U.S. solar thermal side to be included in those releases. But without data, that’s not going to happen. So, we hope, with your participation, that the industry can receive and process more data for these quarterly reports.
So, what third quarter data was in the latest 2011 3rd quarter executive summary?
It was only about three paragraphs, one of which was summary of previous data. Here’s a link to get the full executive summary.
In any case, the main points:
Solar Thermal PPAs are growing for commercial solar projects.
Massachusetts has a pilot project that is allowing $30,000 construction grants for commercial solar thermal.
European and Chinese solar thermal manufacturers are increasingly showing up at solar trade shows, increasing competition, and….
“The main competitor to SWH, however, is the price of natural gas. For as long as the price of natural gas remains low, it is difficult for many to see the long-term value in installing a system.” (A recent Free Hot Water blog post mentioned this insight too.)
So nothing really new here, but we do believe that the increase in solar thermal PPA financing will indeed make commercial solar thermal competitive for apartment buildings, multifamily homes, hotels, hospitals, etc, and beat low natural gas prices.
And when that happens more often, we look forward to more in-depth coverage about solar water heating in these quarterly reports.
We love to give solar thermal marketing advice at Free Hot Water. We’re a manufacturer and a distributor of solar hot water equipment, so our job isn’t to sell solar thermal jobs, but to support our installers with engineering, equipment, and marketing.
So, your success is our success, and right now, we’re anxious to see solar thermal grow as fast as solar PV has grown. So here are 3 tips that you can use to sell some solar thermal commercial jobs.
1) Go to events where your customers are. And by customers, I mean your apartment building owners, hospital administrators, Laundromat owners, hotel owners, nursing home owners, and all of the other businesses that use a lot of hot water. And where are they?
They’re at their own trade shows, talking about their challenges. Solar thermal is a solution for all of the above businesses. Invest in a booth at their respective trade shows and perhaps even participate in a panel discussion about plumbing, energy efficiency, etc. You’ll be seen as an authority and owners will want more information from you.
2) Do a case study for each of the above market segments. Yes, every solar thermal job is different. (That being said, there are some that are right for pre-engineered commercial systems too.) So, you’ll have to mention in your case study how usage, utility prices, state rebates, existing pipes, different solar collectors and tanks can all make prices go up or down. Nevertheless, show the incentives applied, and perhaps give a range of prices. Do this for a hotel with so many rooms, for example, and an apartment with so many units, etc. A case study for each segment. If you have some type of financing to go along with it, mention that too.
Once put together in a PDF, offer these case studies to prospects by making them available on your web page or as a free download. Don’t hide them! Have a “case study” link to them on your website’s home page.
3) Offer prospects a tour of a similar business that you’ve done. By now, you have happy commercial solar water heating customers, right? You’re a Free Hot Water installer, so of course you do. See if you can’t strike up some kind of co-marketing arrangement to have a tour of the finished installation with new prospects.
People respond to examples. This is an excellent touch-feel moment, where you can not only explain how solar thermal works, but also show it working, while answering real time-live questions.
Bonus, you could even have someone videotape the tour and then post this very visual, educational (edited) video on your website and on YouTube.
What’s in it for the existing customer? Marketing and branding, for one. Second, you can offer some kind of referral fee on any closed sale. Up to you how much you want to give, but that fee should be worked into your margins.
Solar thermal works. If you’re a Free Hot Water solar pro, you know that. But we have to continue to get the word out to everyone else. Here are three tips to help do that, and we sincerely hope you’ll use them.
It’s no secret that many plumbing contractors are starting to look at expanding their business to include solar water heating sales and service. It’s a natural fit, since there are many similar water and space heating concepts, including pumps, tanks, pressure valves, etc.
Of course, you have to learn some new solar concepts too, such as shading and insolation, and ideal solar orientation and angles, not mention some roofing concepts.
But let’s say you learn all that through some program, such as, I don’t know, Free Hot Water’s 6-Day intensive training classes through Boots on the Roof.
Now that you’ve got the knowhow, where do you find prospects?
Plumbers have several advantages that non-plumber solar water heating contractors don’t have: Broken hot water tanks, clogged sinks, clogged tubs, leaking pipes, etc. If you’re a heating and cooling contractor, as well, even better.
The following solar water heating marketing guide is for plumbers and general contractors who visit homes and businesses for non-solar jobs.
Step One:Be ready with an elevator pitch.
The elevator pitch is an old marketing term. Essentially, it’s a 30-second pitch about your service, which you could tell to a prospect during the time of a short elevator ride.
Don’t take this literally, of course. The point here is to always have a brief, conversational opening about your solar water heating service. For example:
“I noticed you have an electric/gas/propane water heater tank. Ever thought about going solar instead? There are some great rebates and tax credits now, which have brought down the cost a lot. If you’re interested, let me know, and I can give you a free estimate.”
Don’t force this, but if you find an opening in your conversation about your current work, go for it, and see where that new solar conversation leads.
Step Two: Have your solar site evaluation tools with you.
Keep your sun eye site evaluation tool, a ladder, and perhaps even your lapt0p or iPad in your truck or van. If the above elevator pitch generates a serious conversation about solar water heating, try to do an assessment immediately. If you don’t have another appointment, the customer is free, and it’s during the day, at least do a rough evaluation. Check the integrity and type of plumbing, the roof, or pool system. Note the size and placement of their current storage tank. Ask about their water heating bills, number of people in household, etc. The more useful, valuable info you gain, the easier it will be to make the case for solar.
Step Three:Use and demo Free Hot Water’s Online solar thermal calculators
Another reason to have your laptop or tablet computer with you is so that you can use our online calculators. These tools can give you a lot of resources on-the-go, which you can use for your site assessment and/or estimate.
Also, keep in mind that Free Hot Water’s solar calculator’s price estimates are programmed at full retail markups. That’s good, because then you can use our quote to beat the calculator’s price. Of course, as a Certified Free Hot Water installer, you receive a generous discount off the components, so you’ll know your margins and size needs, especially for our pre-engineered residential and small commercial systems.
Step Four: Have brochures, estimate forms, or even better… iPad examples.
You may have come to fix a clogged sink, but that doesn’t mean you shouldn’t have gorgeous solar marketing materials on hand to show off . Those materials could  also include a photo slide show on your iPad, showing your successful solar installations. Integrate these rich, color photos into your regular presentation and allow the prospect to flip through these photographs. You might even offer to email a PDF with the photos and your brochure.
Step Five:Do a great install with quality products and great customer service. Whether or not you select products from Free Hot Water’s catalog of products, the most important marketing tool is a satisfied customer who likes your work and you.
We’re assuming you are always helpful and polite during the sales and install process. But also remember that this is the beginning of the customer referral process. So, after the install, make sure you touch base with your new solar customer every once in a while to make sure everything is working right. I guarantee that high customer satisfaction, whether for plumbing or solar installs, will lead to more referrals and more business.
That’s the plan, solar-plumbing contractors. Now get to work on that elevator pitch.
I wish I had the exact answer to that question. All of the research regarding consumer attitudes toward solar is generally PV related, rather than solar hot water related. At the same time, solar hot water has some obvious challenges, especially in the residential space.
1) Solar hot water competes with dirty (and cheap) natural gas. With the exception of Hawaii, natural gas is currently fairly inexpensive right now. The amount of hot water that an average residential customer uses typically makes for a slower return on investment. Check out our solar hot water calculator, plug in the numbers for any state for residential, and you see for yourself.
Some solutions: Either home solar water heating systems have to become less expensive or natural gas prices have to rise. While the latter solution may appear to be a long shot, recent news about the environmental cost and abuse of hydraulic fracturing (fracking) may add more cost pressures on natural gas when stricter Federal regulations are enforced, but that remains to be seen.
2) There are fewer local and federal incentives for solar hot water. While California has just passed some generous rebates that make solar thermal very attractive for commercial customers, the incentives don’t apply to pool heating and take up perhaps 25% of the cost of residential systems. The 30% Federal investment tax credit can also help reduce up front costs, but only to non-pool heating applications. While that extra 30% is great, it generally benefits those who often owe taxes at the end of the year.
Some solutions: One solution would be to make the 30% tax credit refundable, so that you could get money back from the IRS if you were due a refund. As it stands now, the credit can be carried over for 5 years, but that’s a difficult sales case to make. In addition, governments could increase the rebate amounts for solar water heating systems, making a faster ROI. Finally, local and federal governments could allow the 30% Federal ITC to apply to pool heating, opening a huge opportunity for Western and Southern states, where pools are largely not being used due to cold weather and the high cost of heating them during the non-summer months.
3) Solar hot water has fewer marketing resources. While I genuinely appreciate the money and time that SEIA put into its solar generations videos and PSAs, solar water heating was barely mentioned throughout the series. Most of the images and statements were all PV related.
Some solutions: It would be great if SEIA and other solar organizations would dedicate a campaign or three or four to solar water heating for homes and businesses. In addition, it would be great if solar water heating manufacturers could increase their marketing budgets. Given the lukewarm demand in the residential sector, it’s understandable why manufacturers are tightly holding the purse strings for now.
4) More financing options for solar hot water. It’s wonderful how there are so many solar leasing and PPA (a.k.a. home solar agreement) options for solar PV today. The same cannot be said for solar thermal. These arrangements take the sting out of the upfront cost of solar PV and would do the same for solar hot water consumers.
Some solutions: Obviously, solar PPA companies and venture capitalists could design more programs for solar thermal, but banks and venture capitalists have to find the right financial formula. Reviving PACE programs could help, as well, but that appears to still be in recovery mode. Additionally, solar PV companies that currently only offer solar leases and solar PPA’s of PV could expand into solar water heating.
The good news is that even without high subsidies, solar water heating does make financial sense for large commercial applications, such as apartment buildings, hotels, hospitals, etc. The disconcerting news is that these venues are still largely unaware of solar hot water and solar thermal financial benefits. Even when they are aware of the cost savings, they must find the courage and the financing to move forward.
Those are my general observations. Admittedly, they’re not based on hardcore market research data, but just my experience hear at Free Hot Water, and talking with other solar thermal installers.
Got more challenges or solutions? By all means, please add to them here in the comments section below.
Solar Fred loves it when utilities realize that the future is solar hot water and solar photo voltaics for homes and businesses. That’s why I’m glad to read that Valley Electric Association (VEA), a utility that straddles California and Nevada, is selling domestic solar hot water systems at face value to its residents. Read More.
Developers are also starting to realize that the future is hear now with solar hot water. Down in Orlando, Florida, many homes heat their pools and home hot water tanks through very expensive electric water heaters. Not so for this new home, which is the model of energy efficiency, including a solar thermal system. Read More.
I also love it when very old, traditional, institutions like Appleton Farms, one of the oldest continuously operating farms in the country, is saying that they can still be modern and energy efficient. As a result, they’ve applied for and received a grant from stimulus funds. Appleton will be using some of the money to install solar thermal hot water systems on the old farmstead. Good for you, Appleton. Oh, and by the way, this installation is another example that breaks the myth that you can’t install solar thermal hot water systems in cold climates like New England. Read More.
If you have any questions about solar hot water or solar thermal systems for your home or business, please contact us. You’re also welcome to use our solar calculator to give you an idea of how much a solar thermal hot water system will save you.
Okay, I’m a solar geek. Come on, my nickname is “Solar Fred.” But I was seriously thinking the other day that solar power is not only a great technology, but also a great metaphor for life, money, and happiness. For example:
1) Clouds and darkness are temporary. The sun still rises in the morning.
Bad weather can ruin daily solar production, but it never lasts. Same thing in life. When faced with a bad day or some set back, I take a step back and realize it’s temporary and move forward. Like the sun, good times do return.
2) Thinking long term pays off in the end.
If you’re going to buy a solar hot water system, it’s going to be an investment. People and businesses are often scared of that upfront payment, but it does pay off in spades. (Check our calculator.) Short term thinkers would rather spend extra money on a Lexus—a depreciating asset—instead of a Honda. I used to think that way too, but now I look at a solar system and I think long term. Investing in my 401k and enjoying life. There’s just less bling and more balanced goals for the future.
3) Solar power is about embracing change.
The default energy source in the world for the last few hundred years has been fossil fuels like coal and gas. Solar hot water and solar PV (and other renewables) are going to change that this decade. Politicians who try to slow down solar policies are fighting the future instead of embracing it. Similarly in life, whether it’s a job or relationship, stuff happens. Instead of fighting change, we need to look forward and not hold onto things that may not only be gone, but may also be unhealthy.
4) Even on cloudy days, you can count on the back up systems.
There are cloudy days when your solar water heating system doesn’t produce enough solar hot water, but no worries. Solar hot water systems are almost always backed up by conventional power for the less productive times. So too in life. Family and friends have always been there for me, and they’re often as automatic as solar back up systems.
5) Solar is inspiring, but you don’t have to go solar to make a positive difference.
I know. Our restaurant and apartment building customers mainly go solar because it makes financial sense thanks to the subsidies. But money aside, given a choice between polluting fossil fuels and solar, wouldn’t everyone choose clean, renewable solar? Outside of solar, there are many things we can do that are also good—though  inconvenient at first. Like not using plastic water bottles, or taking reusable bags to the grocery store. Yes, it’s a pain, but personally, I feel great when I do it, and so it’s becoming a habit.
I hope all of the above solar-inspired thoughts and habits become habits for the world as well. If you want to learn more about solar hot water, please feel free to ask us or become a fan and post a question on our new Facebook page.
Guilford College in North Carolina is going all solar… for hot water. The college will install 188 solar thermal collector panels and create 9,000 gallons of heated water a day. Way to go solar and save the college both money and add to its green reputation for sustainability. Read more.
Similarly, in New England, Bowdoin College in Maine has been awarded a $50,000 grant from the Maine Public Utilities Commission toward the installation of a solar hot water project for its Thorne Hall. The project includes 24 glazed flat plate solar collectors, which will make up a 960-square-foot solar thermal array, and the piping to solar storage tanks. Read more.
Nantucket residents are starting to install solar electric and solar hot water systems on the resort island. In 2008, the Historic District Commission approved 10 applications for solar panels and wind energy conversion systems, and even more in 2009. Read more.
Green celebrity, Ed Begly, jr, is giving some great tips about solar hot water, solar elctric (solar PV), and geothermal energy for your home, and more. He really lives what he talks about. Check out his interview. Read more.
Have any questions about solar hot water for your home, college, hotel, or apartment complex? Give a call or send an email to one of our solar experts.
For those of you who don’t know Solar Fred, I’m not a solar engineer by any stretch, but I’m a serious solar geek and advocate. Ever since I was as a kid, I’ve been fascinated by how the sun’s energy could be turned into electricity and hot water. That’s why I’m in this business.
So when I asked one of our company founder’s, Gal Moyal, to write some solar technology blog posts, I was really looking forward to some great geeky solar information that would show our readers the power of the sun…and Gal’s engineering know-how. Gal’s first assignment: The Nature of Sunlight and Solar Hot Water, Part 1
What Gal returned to me was a brief course in the nature of sunlight and solar thermal physics. Personally, I’m not sure I understand it all, but if there’s one thing that the Gal show’s our customers is that:
A great solar installation involves some thoughtful engineering.
Gal is an engineer.
Gal is more of a solar geek than I am, and so I’m proud to be a part of Free Hot Water.
So, without further delay, here’s a brief solar lesson from Free Hot Water’s co-founder, Gal Moyal, with some interspersed translation by Solar Fred. Please let him know how much you appreciate it in the comments section, won’t you?
The Nature of Sunlight and Solar Hot Water, Part 1
Solar Insolation and Radiation (Solar Fred Translation: Sunlight and Solar Emitted Heat)
The Sun emits light primarily in the visible spectrum, but it also emits at other wavelengths, in the infrared and ultraviolet regions of the electromagnetic spectrum. (Solar Fred’s translation: The Sun shines rainbows of light and it is good.)
Figure 1
The intensity of solar radiation just outside the earth’s atmosphere (Solar Constant) is approximately 1,368 w/m2. However; the intensity of this radiation is reduced before it reaches the earth’s surface due to absorption by gases, vapors and dust particles in the atmosphere. On average, about 70% of that radiation hits the earth’s surface and can be calculated using the following formula: (Solar Fred translation: 70% of the sun’s warmth and light is responsible for bronze bikini model tans and warming the earth, including our solar hot water panels.)
Insolation: Solar Radiation Striking the Surface
I = S cos Z
I= Insolation
S~ 1000 W/m2 (Clear day solar insolation on a surface perpendicular to incoming solar radiation. This value actually varies greatly due to atmospheric variables.) (Parenthesis, Gal’s)
Z = Zenith Angle (Zenith Angle is the angle from the zenith (point directly overhead) to the Sun’s position in the sky. The zenith angle is dependent upon latitude, solar declination angle, and time of day.) (Parenthesis, Gal’s.)
(Solar Fred translation: Gal is an engineer. There was actually more calculus formulas below this formula, but I edited because I couldn’t translate. and brain started hurting. Please contact Gal if you would like the full formula. Moving on. )
A typical solar insolation intensity of clear day solar radiation on a south-facing surface can be seen in figure 2. Â One can easily see that the time of the day with the most insolation is at noon when the sun is directly above the equator and most of the insolation is a direct solar radiation. (Solar Fred Translation: Solar panels work best when facing South and get the most sunlight at high noon, which is usually my lunch hour.)
Figure 2
Solar Zenith Angles
The Earth’s axis is tilted from perpendicular to the plane of the ecliptic by 23.45°. This tilting is what gives us the four seasons of the year – and the different insolation intensity during a given year. Summer is warmer than winter (in each hemisphere) because the Sun’s rays hit the Earth at a more direct angle during summer than during winter and also because the days are much longer than the nights during the summer. During the winter, the Sun’s rays hit the Earth at an extreme angle, and the days are very short. These effects are due to the tilt of the Earth’s axis. (Solar Fred’s translation: Gal explains it pretty well below.)
Practical applications
Based on the above science, when Free Hot Water solar thermal engineers design a system, we need to pay attention to the following:
For best results, panels should face the equator. Therefore, in the U.S and Canada and most of Europe, the solar panels should face south. While in the Southern hemisphere countries such as Australia and Argentina, solar panels should point north.
True south does not align with the magnetic south. That magnetic declination can be precisely determined for any location based on latitude and longitude using the calculator at the following Web site: http://www.ngdc.noaa.gov. (Solar Fred Translation: That was part of the calculus I didn’t put in. Sorry.)
We also offer complete design services, including material selection, engineering analysis, thermal consideration and blueprints. Our in-house design and engineering capabilities allows Free Hot Water to give our clients customized approaches to solar hot water system design, allowing us to meet any need, large or small. (Solar Fred translation: We’ve got a team of professional solar hot water engineers that can design anything, fast.)
On behalf of the whole Free Hot Water team, thanks for reading this brief solar insolation introduction. We have fun here at Free Hot Water, but rest assured, we’re very serious about providing the best solar hot water solutions in the world.
If you have any comments, please feel free to leave them in the comments section below.
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