Community solar and the transformation of the energy market

Chris Black says community solar offerings, backed by mature use of data analytics, could help energy suppliers thrive in a rapidly changing market.

There’s something unique about community solar. It makes the promise of renewable energy a reality for everyone — consumers and energy providers alike.

For consumers, community solar offers an ownership stake in a coveted renewable market that has so far been accessible only to a chosen few.  Rooftop PV is steadily gaining popularity, but it only works for people with single-family homes, with roofs facing certain directions, angled certain ways, free from too much shade.  And it often demands a financial investment feasible only for homeowners with significant disposable income.

Community solar, conversely, is available to anyone, living anywhere — multi-family dwellings and rentals included — at stable prices and in amounts that suit individuals’ different needs. And even though the panels aren’t on customers’ roofs but are instead in nearby gardens, customers own them and can manage them with the same engagement experience as if they’re attached.

For energy providers, community solar gives an entry into a crucial corner of the energy market. Private solar providers sell rooftop PV, taking those customers at least in part off the grid. Traditional energy providers risk losing potential customers completely if they don’t provide their own solar offerings.

Community solar gives them the chance to be the chosen solar provider – a viable alternative to rooftop PV – and to compete with private players to bring better solar programmes to the table.

Additionally, with energy providers’ favorable cost of capital, renewable portfolio standards, and options for green tariffs, community solar projects can solve multiple problems for energy providers and allow them to play in a field that has been seen only as competitive previously.

It all sounds rather simple. And it can be, once consumers learn from their energy providers what community solar is and what it can do for them — but there’s the catch.

The magic is in the marketing and engagement, and to succeed with community solar, or any energy service, providers need to adopt consumer-centric, data-based communications practices.

Energy providers win with personalised engagement

When energy providers put consumers at the center of all of their marketing efforts, they succeed.

By getting to know their end-users, they can tailor their offerings to meet those users’ needs, which leads to higher adoption rates. Then, energy providers can sustain these customers’ engagement by continuing to communicate relevant content — and only relevant content — through customers’ desired channels.

This part may not sound so simple. But it can be, with the right software and data analytics.

Energy providers potentially have access to terabytes of data, including billing and past programmes participation stats, as well as demographics. They also have actual home data, which is a resource they often don’t know they can use. Actual home data includes building insulation, HVAC configuration, thermostat set points and more. When Energy Services Management (ESM) software aggregates all of this data, it can determine what types of products and services will bring value to individual customers. Then energy providers can reach out to those customers accordingly.

By way of example, in the context of community solar, using data analytics to inform marketing would enable energy providers to micro target its community solar offering to customers with the highest propensities to participate in the programmes.

Data analytics technology could tell energy providers which customers are most concerned with going green, which are early adopters of new energy tools, which live in multi-family dwellings, or any other sub-category likely to benefit from community solar.  Then, the technology could help tailor communications further to fit the interests of each of these customers. Consumers would receive messages that relate directly to their interests, fit their housing arrangements, and make sense to their lives, which makes the messages and the programmes they describe meaningful.

After consumers have signed on to any programmes, data analytics continue to add value.

For instance, community solar customers can log into web portals or receive texts or emails that show them how they’re helping the environment by engaging in the solar programmes.

Outside of community solar, these data tools keep customers informed, giving them control of and insight into their energy use. Energy providers can send proactive high bill notifications that include personalised tips for energy use reduction and customers can take in time to avoid anticipated higher costs. All of this ongoing personalised communication keeps customer satisfaction rates high, reduces churn, creates opportunities to up-sell products, and ensures a steady customer base.

The day of the consumer is here

Whether it’s for community solar or other energy products and services, providers need to market their offerings with the ultimate goal of meeting consumers’ needs.

Those that choose to maintain the status quo of delivering energy the way they always have will fall behind. Emerging solar and storage providers are a real market force, and they will take customers away, especially because they already operate as consumer-centric businesses.

But it’s not hard for energy providers to join the consumer economy. With the right technology platforms in place, they will have all the tools they need to attract and retain customers. Using data to micro target and craft relevant messaging makes all the difference, and it’s a practice that’s scalable to all new offerings. Community solar is a great opportunity to put consumer-centric practices in place and realize their benefits. Kind of like renewable energy itself, a consumer-centric approach to energy is sustainable, economical, and healthy for everyone.