Manufacturer
The manufacturers are the companies that make all the equipment (solar panels,
inverters, batteries, etc.). They have manufacturer warranties which apply to the purchaser of the
equipment (in the case of a CASH or LOAN, the purchaser is the customer / in the case of a PPA/LEASE,
the purchaser is the financier).
Installer
Installers purchase the equipment in bulk from the manufacturers. The installer’s install crews
install the equipment on the homes. The installer has their own warranties regarding their installation
work. The duration can vary but it’s normally 25 years covering issues regarding their installation and 5-10
years regarding roof leaks due to the roof penetration.
Financier
In the case of a LOAN, the financier is the loan company. The loan company makes a loan for
the customer and pays the installer for their work and the equipment used. In the case of a PPA/LEASE,
the financier is the solar company (i.e. Sunrun, EverBright, Lightreach, etc.). The solar company is the
purchaser of the system and gets the 30% federal tax credit. The solar company pays the installer for
their work and the equipment used.
Where do we fit in as a partner / broker and how do we get paid?
We are partnered with installers.
Essentially, we are the sales department for each respective installer. The installer gets paid regardless of which option the customer chooses to go solar. It’s just a matter of whom the installer is getting paid
from. CASH = installer paid by customer. LOAN = installer paid by loan company. PPA/LEASE = installer
paid by solar company. The installers set a redline for our company that we are not to go under. But
anything over the redline but after adders is all revenue to our company. Then our company sets a redline
for our reps with the same rule being anything over the redline but after adders is all commission to the
rep.
Wouldn't it be cheaper for a customer to go directly to the installer?
In theory, it makes sense. However, this is not necessarily the case. Hiring a direct sales staff and doing marketing & advertising is expensive. An installer already has its own share of expenses to deal with in its operations. That is why there is a place in the industry for brokers / partners.