Gustavo Cintra

Imagine a world where everyone has to pay for their car in cash. Vehicle sales would plummet, right? Now think about the solar energy sector: without affordable financing, many people would not be able to install a photovoltaic system. And that’s why credit is the fuel that drives the growth of solar energy in Brazil! Today, in the residential market, half of solar system sales in the country are financed. And do you know what happened after the banks started getting heavily involved in this game in 2019? The market has exploded! More consumers had access to technology, more projects were installed, and integrators saw their sales take off. But not everything is rosy. If credit is an engine, default can be the sand in the gears. If the industry doesn't learn to play this game the right way, rates go up, banks tighten the rules, and everyone loses. So, let's understand how this machine works and how integrators can get the most out of it? Credit: How does it work and why is it so important? Let's simplify: credit is basically trust. It's like lending the keys to your new car to your cousin, but only if he promises to take good care of it and return it with a full tank of gas. Banks do the same with solar financing: they bankroll the project, betting that the project will be delivered and the customer will pay correctly. Now think about it: if the project is not well done, if the equipment is bad or if the client does not fully understand what they are hiring, the chances of problems are huge. And trouble for him means trouble for everyone in jail. What does this mean? This means that, in addition to selling, integrators need to understand how credit works and help the customer get the best conditions. Whoever masters this process, sells more and grows in the market! Now let's spice up our chat by bringing up a big problem that few people talk about: the main reason for default in the solar sector is not customers without money, but rather poorly dimensioned projects that do not generate the expected savings. Controversial, right?! Here's the thing: if a customer financed a system expecting to reduce their electricity bill by 90% and replace this cost with a financing installment, but the savings were only 40%, they would be frustrated and their monthly costs would increase. And guess what happens? He chooses to pay the electricity bill and lets the financing fall behind. This creates a snowball effect: Banks begin to see that default rates are high; Credit conditions worsen (interest rates rise, approval rates fall); Fewer customers are able to obtain financing, and the market slows down. And when that happens, it's not just the bank that loses, but everyone! So, if integrators want to sell more and grow in the long term, they need to ensure that projects deliver on their promises! Now comes the golden question: "How can integrators secure more credit approvals and sell more?" If you want to increase your approval rates and sell more financed projects, you need to understand what banks and investors value. Here are four tips that I think help a lot. 1) Focus on quality and training There is no point in pushing any equipment just to close a deal. If the installation is not good, the customer will be frustrated. Use quality equipment, invest in training and ensure that the system delivers the promised savings. 2) Maintain an active after-sales service Your work does not end with the installation. Monitoring system performance and providing ongoing maintenance helps prevent problems and keeps customers satisfied. 3) Know the customer profile well There is no point selling a solar system to someone who cannot pay the financing. Yes, I understand and agree that this is the Bank's role, however, you are an expert, you know the client and have a relationship with them, so before closing a deal, evaluate whether this is the best time for the investment and whether the client will in fact be able to afford this investment. It makes sense?! Another point: This does not necessarily mean losing a sale, after all, you can present other solutions such as Distributed Generation (rental), Leasing, Free Energy Market, among other topics that we can leave on the agenda for a new chat. 4) Build a strong relationship with banks Banks are not just financiers, they are partners in your business. The more trust you convey, the better credit conditions your customers will have. Be transparent, send accurate data and help keep defaults low. And if by any chance your client defaults, having a leading role in supporting this collection helps a lot! How? Generating a second payment method, updating contact information for the bank, supporting and publicizing the bank's renegotiation channels, among others. Yes, this will not be your priority role, but in a partnership relationship, no one lets go of anyone else's hand, do you agree? I will conclude this topic by sharing my perception: the solar energy market in Brazil still has a lot of room to grow. But for this to happen in a healthy way, it is essential that integrators and banks work together. If you are an integrator and want to grow, the recipe is clear: Work with quality and ensure that projects deliver what they promise; Understand how credit works and help your clients in the process; Build a long-term relationship with banks and lenders; Train your team and stay up to date with changes in the sector. Solar energy is no longer the future, it is the present! And whoever knows how to adapt will lead this market in the coming years. Did you like this content? Share this with other professionals in the sector and let's strengthen this discussion!

Gustavo Cintra

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