Is Solar Grids A Good Franchise?
Solar Grids is a national leader in solar panel installation, maintenance, and asset management. Founded in 2009, the company has quickly grown to over 100 locations across the U.S. [1] As a franchise, Solar Grids provides an opportunity for entrepreneurs interested in the renewable energy space to own and operate a business in this rapidly growing industry. According to the Solar Energy Industries Association, solar installations increased 43% in 2021 alone. [2]
For potential franchisees, Solar Grids offers the chance to capitalize on the demand for renewable energy while benefiting from the systems and brand recognition of an established national company. The franchise provides end-to-end support, from initial training to ongoing marketing and lead generation. As interest and adoption of solar continues to accelerate, Solar Grids aims to be at the forefront, empowering local owners to meet the needs of their communities.
[1] https://www.franchisegator.com/franchises/solar-grids/
[2] https://www.seia.org/solar-industry-research-data
Startup Costs
The initial franchise fee to start a Solar Grids franchise ranges from $24,950 to $49,950 according to franchising information on Solar Grids’ website https://solargrids.com/franchising/. This one-time fee allows you to use Solar Grids’ trademarks, systems, and proprietary information to run the business.
The total initial investment to open a Solar Grids franchise location is estimated between $50,000 to $108,500 according to Franchise Gator https://www.franchisegator.com/franchises/solar-grids/. This covers the franchise fee as well as other expenses like inventory, deposits, legal fees, insurance, marketing, and working capital.
The initial investment covers setting up the infrastructure and systems to run the solar sales and installation business. Franchisees need to purchase equipment like solar panels, inverters, racking and mounting hardware that is installed on customers’ properties. Inventory costs depend on sales volume and number of installations.
Ongoing Fees
The ongoing fees for a Solar Grids franchise include a monthly royalty fee of 6% of gross sales, according to https://solargrids.com/franchising/. This helps pay for the franchisor’s ongoing support, brand marketing, and other centralized services.
There is also a monthly marketing fee of 2% of gross sales, as noted on https://topfranchise.com/products/solar-grids-energy-company-franchise/. This goes towards local, regional, and national marketing campaigns.
Additional fees may include monthly software fees, insurance, accounting services, and other operational costs. However, the main ongoing fees are the royalty and marketing fees.
Training & Support
Solar Grids provides extensive initial and ongoing training for franchisees. The initial training program lasts 5-10 days and covers all aspects of the business including sales, operations, marketing, and technology (Solar Grids Franchising). New franchisees receive hands-on field training with a dedicated support person who will ride along on sales calls and appointments. Ongoing training is provided through weekly webinars, an online training portal, and national conferences held multiple times per year.
In terms of field support, Solar Grids assigns a Franchise Business Consultant to each franchisee to provide ongoing mentoring and assistance. The company also has a team of experienced operations managers who are available to troubleshoot issues and come on-site when necessary. There is a franchisee hotline for urgent questions and issues. Solar Grids emphasizes that “we don’t just train you and throw you out there” and aims to provide extensive ongoing support through the life of the franchise (Solar Grids Franchising).
Territory & Customers
According to Solar Grids’ official franchise website, the company grants exclusive territories to its franchisees which ensures no other Solar Grids franchise will compete in the same area. Territory sizes vary but typically span around 50,000 households. Franchisees have the ability to operate within their assigned territory without facing competition from company-owned Solar Grids locations.
Solar Grids targets residential homeowners as its primary customer base. Franchise owners market to homeowners in their designated territory who could benefit from installing solar panels on their property. Key demographics include environmentally-conscious homeowners, people with high energy bills, and those interested in energy independence.
Franchisees are expected to generate leads, schedule consultations, close sales, and oversee installations within their exclusive territory. Solar Grids provides training and software tools to help franchisees effectively target and communicate with homeowners in their assigned area.
Proven Business Model
Solar Grids has established a proven business model and track record of success for its existing franchisees (Solar Grids® is the fastest way to start your solar energy business. Our proven franchise model makes it easy for you to focus on just closing solar deals,…). According to the Solar Grids website, the company has attracted exceptional franchisees such as seasoned franchisees who recognize the company’s potential for extraordinary success (Solar Grids® has attracted exceptional franchisees such as seasoned franchisees who recognize the company’s potential for extraordinary success. The …). With a proven franchise system in place, new franchisees can benefit from the processes, training, and support already established by the franchisor.
By leveraging the Solar Grids brand name, franchise model, and support systems, new franchisees can focus on sales and operations rather than building a solar business from scratch. The proven business model reduces risk and improves the chances of success for franchisees. With Solar Grids’ track record, new franchisees can be confident that the system works if properly implemented.
Growth Potential
The solar power industry is projected to see massive growth in the coming years. According to the Solar Energy Industries Association (SEIA), solar PV capacity is forecast to more than double over the next 5 years, reaching over 400 gigawatts (GW) by 2026, up from 168 GW at the end of 2021 (SEIA). Deloitte also projects exponential growth for solar through 2040, with total capacity potentially reaching 1,600 GW (Deloitte).
This continued growth presents major business expansion opportunities for solar companies. As demand increases, there will be needs for more equipment manufacturing and installation services nationwide. Companies that establish strong brand recognition and scale up intelligently during this growth period stand to gain significant market share. There is also room for innovation in solar technology, financing models, and ways to reduce soft costs. Overall, the industry outlook is highly favorable for solar business growth and expansion.
Competition
When evaluating solar franchises, it’s important to compare Solar Grids to other major players in the industry. Some key competitors include:
SunPower – One of the largest solar companies that offers franchises. They have over 30 years of experience and proven solar technology (https://www.sunpower.com/). However, their franchise fee is higher at $50,000.
Momentum Solar – An established national solar provider that offers franchises starting at $25,000. They provide training and support but require higher monthly fees (https://www.momentumsolar.com/).
Sunrun – A leading home solar company with operations in over 20 states. They acquired a solar sales franchise called AEE Solar in 2018 but seem to be moving away from the franchise model.
ADT Solar – A newcomer in 2019, they leverage the ADT brand for their solar sales and installation services. Low startup fees but less proven franchise support.
Solar Grids compares favorably to these other franchises in terms of startup costs, ongoing fees, and franchisee support. However, some competitors have more national brand recognition in the solar industry.
Risks & Challenges
Like any business, there are risks associated with launching a solar grid franchise. Some of the main challenges include:
Fierce competition in the solar industry. There are many existing solar companies trying to sign up customers, which makes customer acquisition more difficult (https://www.convoso.com/blog/solar-sales-challenges).
High operational costs. Installation, maintenance, and overhead costs can make it hard for solar companies to be profitable, especially smaller franchises entering the market (https://www.greenlancer.com/post/common-hurdles-to-growing-a-solar-company).
Building infrastructure and supply chain delays. Solar projects often depend on equipment delivery and third party contractors, which can cause unexpected delays and added costs (https://www.saveonenergy.com/solar-energy/solar-energy-industry-challenges).
Meeting customer demand. As a smaller company, it may be challenging to complete installations fast enough to keep up with sales demand and customer expectations.
Managing cash flow. There are upfront costs to securing supplies and hiring staff before revenue starts coming in from completed installations.
Compliance requirements. Navigating permits, utility requirements, incentives and tax credits involves regulatory complexities.
While challenging, these risks can be managed through careful planning, strong partners, efficient operations, and outstanding customer service.
Conclusion
So is becoming a solar grids franchisee a good opportunity? Based on the information covered, it seems that the solar grids franchise model offers an excellent chance to own a profitable, scalable business in the booming renewable energy industry. While the startup costs are significant, the ongoing fees and costs seem reasonable for the amount of training, support, proven business model, and access to customers you receive as a franchisee. The growth potential also appears strong as demand for residential solar continues to expand across the country. However, make sure to carefully evaluate your territory and do competitive research to determine if it’s saturated or has room for a new franchisee. While any business comes with risks and challenges, solar grids seems to have found a solid model for their franchise system. If you have the available capital and are willing to put in the work, a solar grids franchise provides an attractive opportunity to earn great income while making a positive environmental impact. Just be sure to thoroughly research the franchise company and speak with existing franchisees before moving forward.
