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 is 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 banks started to get involved in this game in 2019? The market exploded! More consumers had access to the technology, more projects were installed, and integrators saw their sales take off.
But not everything is perfect. If credit is an engine, default can be the sand in the gears. If the sector doesn't learn to play this game the right way, rates will rise, banks will tighten the rules and everyone will lose. So, let's understand how this machine works and how integrators can you make the most of it?
Credit: How does it work and why is it so important?
Let's put it simply: 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 credit. solar financing: they bankroll the project, betting that the project will be delivered and the client 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 he is hiring, the chances of problems are huge. And problems for him mean problems for everyone in the chain.
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. Those who master this process sell more and grow 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 90% of their electricity bill and replace this cost with a financing installment, but the savings were only 40%, they become frustrated and their monthly costs increase. And guess what happens? They decide to pay the electricity bill and let the financing fall behind.
This snowballs:
- Banks are beginning to see that default rates are high;
- Credit conditions worsen (interest rates rise, approval rates fall);
- Fewer customers are able to obtain financing, the market slows down.
And when this happens, it’s not just the bank that loses, but everyone else! So, if integrators want to sell more and grow in the long term, they need to ensure that their projects deliver what they promise!
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 will 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 job doesn’t end with installation. Monitoring system performance and providing ongoing maintenance helps prevent problems and keeps your customers happy.
3) Know the customer profile well
There is no point in selling a solar system to someone who cannot pay the loan. Yes, I understand and agree that this is the role of the Bank, however, you are an expert, you know the client and have a relationship with them, so before closing the deal, evaluate whether this is the best time for the investment and whether the client will in fact be able to afford this investment.
Does that make 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 lenders, they are partners in your business. The more trust you create, the better credit conditions your customers will have. Be transparent, send accurate data and help keep default rates low. And if by any chance your customer defaults, playing a leading role in supporting this collection helps a lot! How?
Generating a second payment method, updating the bank's contact information, 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. However, 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 customers through the process;
- Build a long-term relationship with banks and lenders;
- Empower your team and stay up to date with industry changes.
Solar energy is no longer the future, it is the present! And those who know how to adapt will lead this market in the coming years.
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The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.
An answer
Unfortunately, the biggest competitor for those who sell photovoltaic systems are banks or financial institutions, because they have not yet understood that these products do not bring expenses to the customer, but rather relieve fixed expenses. They want to use the same criteria for financing vehicles, since a car brings many expenses, such as insurance, IPVA, maintenance and fuel. Solar energy should be taxed independently, a cheap and specific credit, because the customer goes from an electricity bill of 1000 reais to an average installment of 600 reais, each month he saves 400 reais.