Solar Clubs – A good idea, or just a marketing ploy??

Solar clubs seem to be cropping up everywhere??

If you’re not familiar with the concept, then here it is::

The general idea is that a group of people (within a small area) who are interested in an installation of solar panels “club” together in order to obtain a “group” discount on solar PV..

Discounts of around 20% are usually quoted, which sounds fantastic?!

Now, here’s something you may not be aware??

Usually, solar clubs are run by someone, who has an “agreement” in place with a “preferred” installer to promote said installer, who in turn pays the solar club a small “commission” for the privilege, usually to “cover costs”?
Often the solar clubs are set up as “not for profit” organisations, which sounds great, but in effect means very little, as all “profit” is taken as a salary??!!

Now, whilst group discounts are a great idea, can work and are not new, it is a very difficult process in an industry, such as solar, that has not reached it’s potential? Even though more and more installations are being done each week, it’s not common. To get, let’s say 5 people in a small catchment area, to commit to spending £8,000 all at the same time, is very difficult?
Therefore, what, typically, happens is that the 20% discount applies regardless??

But here’s the reality::

Our research suggests that whilst the installation costs are good. They certainly don’t represent a discount of 20%! In some instances, the discounted price, is higher than you could get elsewhere!!

Viridis has been negotiating deals for clients for the last 3 years. Below, shows a couple of examples of our negotiated prices, compared to a solar clubs prices:

Solar club – 1.85kwp system = £7,200.
Viridis – 1.88kwp system = £7,200.

Solar club – 2.3kwp system = £8,500.
Viridis – 2.7kwp system = £8,600.

As you can see, solar club prices aren’t that great!!??

My advice – whilst solar clubs are a great concept, the prices are good. But, they are not good enough, and certainly don’t represent a 20% saving!! You can do better??

If you have any experience of a solar club, good or bad. We’d like to hear from you??

If you want further advice on solar clubs, or solar in general. Then please call us on 0845 437 4484, or email info@viridisec.co.uk


2 Responses to “Solar Clubs – A good idea, or just a marketing ploy??”

  1. Liam says:

    Very interesting report. I have been toying with the idea of a similar scheme (with real discounts!) but will be sure to stay away from some of the pitfalls you mention.

    Liam.

  2. Val Whitter says:

    Informative, as always.

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