Tuesday Tuneup- #17
Riding the Waves of NEM3 in California
Happy Tuesday Everyone!
I was asked to write about this week's topic directly from one of our vendors and wanted to thank you for the idea (you know who you are). Keep them coming!
This week is all about NEM3 and how to continue to thrive and make sales after the big change.
First…..What on Earth is NEM3?
NEM3, or Net Billing Tariff, is the new metering rule for the three largest utilities in California and significantly changes how solar energy is compensated in the state. Under NEM3, the compensation rates for excess solar power sent back to the grid are lower than they had previously been.
Simply put, if you want to put solar panels on your home in California, you need to either A) Use the power real time as its made on the roof B) Store it in a battery for later use or C) accept the fact that you will get less credit selling it back to the grid then you probably paid to make it.
So…. Does solar still make sense in the Golden State?
First and foremost, let’s have a little reality check Mr.Customer. You have Three options. For those that don’t know, a kWh is how you are charged for using electricity.
A) Pay $.40 cents a kWh (or more during many times of the day)… With rates going up significantly every year…And have your power literally made by burning natural gas (Imagine a generator running in your backyard 24 hours a day).
B) Pay $.18 cents a kWh (many times lower)… That rate is fixed forever…and your power comes from the sun. However, there is a catch…. if you don’t use the power real time, you have to sell it back and only get $.5 cents for it.
C) Pay $.30 cents a kWh in Option #2 instead of $18/cents… Get a battery installed so you never sell power back to the grid AND even have power when the grid goes down.
Which option do you choose?
If you picked option #2 or #3…. congrats….. you just decided to put solar on your home.
If that’s the case, why is everyone freaking out and what’s the problem?
1.Solar companies are their own worst enemy.
If you work for a solar company and you are reading this article, please, for the love of God stop talking about how NEM3 has ruined your business and you don’t know what to do. You’re creating your own problems and complaining about your business…… isn’t going to help you get more business. I saw a guy on the news a couple months back telling everyone he didn’t know what he was going to do and didn’t know if he could make payroll. Seriously, why would anybody want you installing a 20+ year product on their house when you’re telling the world you’re week to week. Please stop. You’re hurting everybody.
2. Sales people don’t know what they’re doing.
Solar, like any rapidly growing industry has had a flood of new characters rushing in to try and capitalize on the moment. Large companies used to be able to take a Barista and turn them into a solar pro within a couple days….. by the hundreds. That game has changed tremendously. Building codes are stricter, systems are more complex and honestly the general public expects more… and that leads me to #3.
3. Lack of trust.
If there’s anything that #1 and #2 speak to, its lack of confidence and trust. Are you going to be around if I need you? Are you going to damage my home? Will I get the benefits I’m signing up for? How can I TRUST YOU?
Let’s face it, every negative news article or pushy sales person makes our industry look bad. Beyond that, these are expensive projects… and customers want to know that they are spending money with the right people. If you are spreading negativity and don’t know what you’re doing…. you’re not helping develop trust.
How do we continue to grow and evolve as an industry?
1.Stop the hysterics…
The best time to go solar wasn’t yesterday….. it’s RIGHT NOW. Electricity isn’t getting cheaper, and neither are electricians, permits, engineers, insurance, ect. Not to mention the tax credits and incentives will eventually go away. I’ve been a part of over 100,000 solar systems in my career and I’m telling you right now, not ONE person has told me they regret going solar 10 years ago and wish they had waited till today…. NOT ONE. Get excited about what you do and get back to basics.
Customers choose solar today for the same reason they did when I first started
1- Running generators to make electricity is a losing idea 100% of the time.
2- We all want FREEDOM from having other people dictate what we pay every month. That’s why we buy houses instead of renting apartments
2. Know your stuff…
The baristas have gone back to working at coffee shops while the real pros are still in the game. If you don’t know what you’re talking about, you’re going to be eaten alive. This doesn't mean you throw up every technical nugget you’ve learned in your career, but it means that you need to put in the work to be prepared. Act like the trusted advisor your customer needs you to be, not the desperate sales person trying to stay afloat.
3. Act in trustworthy ways…
You’re going to have to be a better brand, company, consultant, or leader then you’ve ever been if you want to make it. Sponsor the little league team, give good advice for free, call when you say you’re going to call and take care of your reputation. Get the accolades, win that award and celebrate the wins of others. When somebody in Solar wins… celebrate it as a win for everybody. When somebody loses, lend a hand to help those in need.
4. Solve your customers problems…
If there’s one thing you take away from today, let it be this. Your ability to succeed as a sales person 100% has to do with your ability to solve your customers problems. NEM3 didn’t make the power company any less crappy. It didn’t somehow make the rates not go up every year. It didn’t change the way we get our power and somehow make the grid more reliable…. Those are still all problems your customers are having today that you need to solve. If you somehow think option #1 is the best option above, then do yourself a favor and go work at the DMV so at least you can get good medical insurance.
As a sales person, you are customer #1. You are the first person you have to sell every day and if you’re not 100% in, you need to be 100% out. Bleeding to death is a terrible way to go and that’s what will happen if you’re not all in.
Start your conversations the same way I started this post…. by identifying the problems your customer is facing and giving them simple options to fix it.