The B2C market in the solar energy sector has cannibalized itself – Unregulated competition: How the solar market has lost its professionalism

🌞⚡🔥 The B2C market for solar systems has changed dramatically in recent years and faces significant challenges. Originally, the market was dominated by specialized companies that professionally handled not only consulting but also the installation and commissioning of photovoltaic (PV) systems. However, the situation has drastically changed. Competition in the solar market has become almost cannibalized, leading to a confusing and sometimes unprofessional competitive landscape.

📈🔍 Unregulated competition in the PV market

Today, offers and consulting services for photovoltaic systems are practically everywhere. From social media to personal networks, potential customers are being courted. The competition for lucrative sales is fierce. Even students with part-time jobs or homemakers working from home are now offering consulting services. Online marketing agencies have recognized this trend and specialized in lead generation, resulting in a flood of providers inundating the market with cheap offers.

However, this massive presence of providers does not necessarily lead to higher service quality. While there are more and more consulting services available, the number of actually qualified professionals needed to commission solar power systems has not increased accordingly. The shortage of trained and certified electricians authorized to properly connect PV systems to the power grid is becoming increasingly apparent.

🛠️🔑 Qualified installation as a key issue

According to Section 13 of the Low-Voltage Connection Ordinance (NAV), electrical installations downstream of a building's mains connection may only be carried out by installation companies registered in the installer directory of a network operator. This means that only certified specialist companies are authorized to connect and commission the installations professionally.

Nevertheless, it is often not these specialized companies that gain the upper hand in the competition for solar panel sales. Instead, online marketing agencies and their part-time "consulting experts" dominate the market, driving sales but neglecting installation—and certainly not proper connection. This is one of the main problems: while sales boom, technical and legal requirements are often overlooked. The responsibility for proper connection is then shifted to specialized companies, who, however, often have to deal with the inadequate preparation and false promises of the previous "consultants" and the subsequent installations.

🏷️📉 The price war in the solar market

In addition to these structural problems, aggressive price competition has further destabilized the market. Prices for photovoltaic systems are falling continuously, which at first glance appears attractive to end consumers. However, this price decline also has its downsides. Where previously a specialist company could win one contract out of three offers, the ratio is now as high as 1:10. This means that a company now has to submit ten offers to secure a single contract. The result is an enormous burden on specialist companies, which on the one hand have to invest in expensive consultations, but on the other hand often fail to close a deal.

Suitable for:

• Background information on the current situation and developments related to China
• The aggressive export of cheap Chinese modules to Europe and other markets has led to a distortion of global competition

One reason for this development is digitalization. Thanks to advanced technology, potential customers can now obtain countless quotes and receive non-binding advice with just a few clicks. The barrier to obtaining multiple quotes is lower than ever before. For specialist companies, this means an enormous amount of work that is not always proportionate to the revenue generated.

In addition, there is growing competition from other trades such as roofers and scaffolders, who also offer photovoltaic systems. They, too, mostly lack the certification for proper installation.

Suitable for:

• Difficulties in the photovoltaic market: Specialist company is insolvent – ​​Dramatic drop in sales and staff reductions

💻📞 Questionable business model for lead generation

Particularly problematic are the business models of online marketing agencies specializing in lead generation. These agencies place targeted advertisements to generate customer contacts, which they then sell to solar energy companies with their installation teams, mostly from abroad. These supposed "installation and consulting experts," who often lack in-depth technical training, focus almost exclusively on sales.

While some of these agencies offer training, the quality of this training often leaves much to be desired. In many cases, promises are made that cannot be kept in practice. Customers are lured with unrealistic expectations that later lead to disappointment when the system is put into operation. By this point, however, the online marketing specialists have long since moved on to the next potential customer, and the responsibility remains with the specialist companies.

😠🚧 Frustration among specialist companies and end customers

The result is a high degree of frustration for both specialist companies and end customers. Specialist companies are confronted with disappointed customers because the promised services were not provided. In many cases, the specialist companies then have to bear the brunt of the damage, even though they were not responsible for the initial consultation. This places an additional burden on these already heavily strained businesses.

The situation is far from satisfactory for customers as well. They often feel misled and, in the worst-case scenario, have to live with inadequately installed or poorly sized systems. The problems frequently only become apparent during commissioning, for example, when the feed-in tariff is not as expected or the system fails to deliver the promised performance.

🏛️🔍 The need for regulation and transparency

In light of these developments, the call for greater regulation and transparency in the solar market is growing louder. Clear guidelines are needed to ensure that only qualified professionals are authorized to advise on, install, and commission PV systems. Furthermore, suppliers of solar systems should be held more accountable for complying with legal and technical requirements.

It is also necessary to critically examine the role of online marketing agencies. While they offer an important service in customer acquisition, their consulting services should be provided at an appropriate level. Certifications or minimum requirements for consultants could be introduced to ensure that clients are not given false promises.

🚀🔄 Opportunities and challenges for the future

Despite the challenges, there are also opportunities for the B2C solar energy market. Demand for renewable energy remains high, and with the right regulations and standards, the market could stabilize again. Specialized companies that focus on quality and transparency could benefit from a long-term advantage in terms of trust. Digitalization also offers opportunities if implemented correctly. Automated processes could help specialized companies work more efficiently and tailor their consulting services more precisely to customer needs.

The B2C market for solar systems is currently undergoing a period of restructuring. Competition is fierce, and quality requirements are high. To be successful in the long term, both suppliers and installers must focus on transparency, quality, and sound advice. Only in this way can customer trust be regained and the long-term development of the market secured.

📣 Similar topics

• 🌞 Changes in the B2C solar market: Challenges and opportunities
• 🏠 Solar power plants in competition: Unregulated chaos
• 🔧 Installation of PV systems: Why specialist companies are essential
• 📉 Price war in the solar market: What's wrong with it
• 💼 Lead generation: A questionable business model
• 😠 Frustration among specialist companies and end customers: What's going wrong
• 🏛️ Calls for regulation and transparency in the solar market
• 📈 Opportunities for the future: How quality can prevail
• 🌐 Digitalization in the solar market: Curse or Segen?
• 🔦 Transparency and trust: Key to success in the solar market

#️⃣ Hashtags: #UnregulatedCompetition #QualifiedInstallation #PriceWar #LeadGeneration #Transparency

While the number of service providers is increasing, the quality of the services offered often suffers. This is particularly problematic in a technically demanding and safety-critical field like solar panel installation. The shortage of qualified professionals, especially trained electricians responsible for connecting the systems to the power grid, is becoming increasingly apparent. Despite rising demand, there are not enough certified specialists to carry out the installations properly and safely.

More about it here:

• From green dream to harsh reality: PV online marketing under scrutiny

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