The solar industry is based on a “payment replacement” model, comparing utility spend with financing payment. But relying on this model as a company can put you at the mercy of interest rates. And in a recession, those rates can discourage customers.
Cash purchases actually go up during a recession
With interest rates high, many customers want to pay cash for their solar. They understand that 15-30% of solar is in the financing. But they also mistrust the transaction process. So for those who can go the cash route, it is an advantage if they trust the process.
Cost of materials goes up during inflation
Cost of materials, labor, financing, even permitting increases during inflation. Solar companies try to find ways to keep the costs low for customers, but margins can only be squeezed so far before you are losing money.
Less people qualify for financing during a recession
tough economic times squeeze many buyers out, or at least postpone their commitment until wages catch up with rising prices. Suddenly the pool of prospects is shrinking, and fast.
Change your marketing to focus on cash customers
Cash customers can utilize the 30% ITC as well as pay up front. But they still don’t like writing those big checks. You can ease their anxiety by using PayKeeper.
PayKeeper is a Federally Insured Escrow Account. It’s a safe place for the customer’s cash and it shows in the receivables in your account. No hassle collecting payments a bit at a time, no “slow-pay.” With each milestone reached, PayKeeper releases money to you. Accounts Receivables doesn’t have to chase it down. And if there is a dispute, PayKeeper only holds back 5% until the problem is fixed. That frees up your installation teams, saves your AR team time, and makes it much easier for your sales team to close deals.
PayKeeper is easy to use
Schedule a demo with us today. Let us show you how to turn AR into an asset!