Solar Industry Growth in Wisconsin: Can You Handle It?

Last November Niels Wolter, head of PV programs at Focus on Energy, was asked how the solar industry was faring in Wisconsin.

"It's been a remarkable year," he replied. "We're projecting out 73% growth over last year. Before that it was growing at about 80% per year since 2002. So it's slowed down a little bit in the growth rate, but it's still a booming market."

WOW! With growth like that even in the most sluggish economy since the great Depression it's no wonder solar is considered one of the hottest up-and-coming industries around. Solar providers must have it made, right? Can providers even keep up with all the work?

Well, maybe. If you're a solar provider you've probably already figured out that succeeding in this industry is no simple task. Here are a few of the challenges you're facing:

• A Tiny Market: The solar industry is still a tiny, tiny fraction of the state's economy – barely a blip on the charts. While growth in terms of percent is off the charts, the actual numbers of installations per capita is still miniscule. I'm still researching to get more current numbers, but in the meantime keep in mind that Focus on Energy reports only 78 professionally-installed PV systems in 2006. Even assuming 80% growth since then, that's still only a few hundred systems per year. Not what you'd call unlimited potential, at least not yet.

• New professional competition: Between the often-cited growth percentage numbers, the increase in eco-conscious thinking in the last few years, and the growing numbers of unemployed or underemployed, solar is attracting a lot of attention from those looking to change careers. Solar installation classes at the Midwest Renewable Energy Association in Custer, WI are routinely filled to capacity, and new certification programs through unicersities and technical colleges are sprouting like mushrooms. Will industry sales growth keep up with the growth in the number of providers in the state? Time will tell.

• Other competition: Did you know that Sam's Club now offers 3 and 1.2 KW grid-tied solar PV systems? www.samsclub.com/sams. Or that enterprising direct marketing veterans are already successfully selling solar thermal kits (like this one offered by Sunward www.gosunward.com) to homeowners via mail order? As the solar market heats up in this country you can expect to see more and more of this kind of thing.

• A tough sell: Been to a trade show lately? Probably you spent a lot of time talking about solar. But how many systems did you actually sell? Solar is hip and trendy, but it's big and expensive, and a lot of people view it as a luxury. Which means it's not as easy to sell as you might think.z

I'll be addressing many of these issues in depth in future posts. But for now let's just say that wild industry growth numbers don't eliminate the need for good marketing practices. Image, branding and developing a solid marketing plan based on industry realities are as important as ever – and, like solar itself, will prove to be a smart investment for the long run.

Cummings | Designs provides sales driven branding and design services for the solar industry. To find out how we can help you position your company as a go-to provider, call (414) 378-2747 or contact us at carl@carldesigns.com.