Search for cost cuts heats up solar franchise market

Solarprime's franchise network, for example, increased by 24% from January to August this year
4 minute(s) of reading
06-09-21-canal-solar-Busca por corte de gastos aquece mercado solar de franquias

The rise in electricity bills, due to the worsening of the water crisis in Brazil, has meant that the number of Brazilians, who are looking to reduce their electricity costs through solar sources, grew in the first seven months of the year

Furthermore, according to a survey carried out by Datafolha, 90% of Brazilians want to generate own energy, whether through photovoltaic panels or other renewable sources. This percentage was 77% in 2014.

With this growing number of consumers who are betting on sustainability, the possibility of business models for different types of entrepreneurs, such as the solar energy franchise sector, increases.  

According to Lyana Bittencourt, CEO of Grupo Bittencourt – a consultancy specialized in the development, management and expansion of business networks and franchises – the franchising has been an option to scale these businesses through strategic partners and franchisees. Some models are beginning to appear on the market, and one example is the franchise home-based, a trend that allows you to operate your entire business directly from your own home. 

Another is the store in store (inside another store), in which the franchise is installed in a space within an existing commercial outlet, whether owned or owned by third parties, which, as in the previous model, has the advantage of greatly reducing costs when compared to the costs of own commercial location.

“We are positive about the studies we have carried out on the possibilities of expanding the market in Brazil in relation to solar energy. With the pandemic, consumers have demanded even more sustainable positioning from companies, whether due to ideology or the need for more conscious consumption”, he pointed out.

According to the executive, companies, on the other hand, have become aware of the impacts they cause in both social and environmental aspects and the need for greater governance to manage these aspects. “This has proven to be an opportunity in the market.”

“Therefore, this segment is profitable and environmentally responsible. And this brings benefits to both the entrepreneur and society”, he concluded.

Data on solar energy franchises

To exemplify the growth of this sector, Sandro Cubas, franchise manager at Solarprime, brought some data. From January to August this year, the company's solar energy franchise network grew by 106 units, currently having 430 in total – that is, an increase of 24%.

“This segment is expanding in Brazil, due to the country’s need to see that the electricity bill is an important part of the final consumer’s costs. So, especially during the pandemic, this focus turned a little more to how much is spent at home, and companies, consequently, also started to look at the costs that increase their profits”, he explained. 

“In this vein, Solarprime has been working to deliver to candidates a business model that has already been tested and proven in the area that trains entrepreneurs for the photovoltaic sector,” said Cubas. 

According to the expert, the highlight goes to the home-office model, which holds the majority of the company's franchises, as it is a lean, viable, fast and well-structured category – which aims to increasingly qualify the market. 

“In this case, the entrepreneur, without the need for a commercial location, starts to build his portfolio and already has all the know-how. Another advantage is that he will have the operation in hand. We format the franchisee so that they have all the prospecting, sales, installations, financial control and complete training”, he highlighted. 

“We have a team of more than 100 engineers who will provide the entire structure, so that both franchisees and end customers are guaranteed excellent installations”, emphasized the executive.  

To give you an idea, the franchise manager commented that Solarprime has franchisees who started in 2021 and have already obtained a return on investment in just two months. “In fact, they already have revenues of more than R$ 1 million in the year, thus showing high performance with good profitability”, he concluded. 

Picture of Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. Has been following the Brazilian electricity sector since 2020.

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