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Solar Fred's 5 Lessons Solar Companies Can Learn from Steve Jobs and Apple

Tor 'Solar Fred' Valenza
October 06, 2011  |  16 Comments

Update 10/5/2011: This post was originally written after Steve Jobs stepped down from being Apple's CEO. However, the content is still appropriate as a eulogy today. I've also just written a new post for solar thermal here. RIP, Steve. Thanks for your vision. — Solar Fred.

As I write this blog post, I’m writing it on a 2010 MacBook Pro. If you call me, I’ll answer on an iPhone 4, and if I’m reading your PDF’d report or a new marketing book, it is on an iPad2 — and I’m one of millions who can say the same thing. What was Steve Jobs’ secret of success and what can solar companies learn from his tenure and life at Apple?

Books have been written about Steve Jobs and Apple. This is a mere blog post, but I sincerely believe that these basic observations are valuable to the solar industry, from panels to inverters to BOS to installations. Naturally, if you have more observations to add, please do contribute your comments below. Meanwhile, here are my thoughts:

Apple-Solar Lesson #1: Innovate and take risks. In 1984, Jobs and Apple co-founder Steve Wozniak introduced the first Macintosh with an unforgettable Orwellian ad campaign launched at the Super Bowl. At the time, Microsoft PCs dominated the market and still do to a large extent, but that didn’t stop Apple from saying: “So what? We can do personal computing better and profit.”

While solar PV and hot water appear to be getting more commoditized, my suggestion to you is to stretch and take risks. Like the first Mac, take the solar cell, inverter, or solar service, and continually challenge yourself and your engineers to improve it, perhaps even radically, breaking the PV Orwellian mold.

In addition, apply the same risks to your solar marketing. Apple’s 1984 commercial not only launched a new computer, but I would argue that it launched their brand personality that has only grown stronger since. At its core, Apple’s brand says, “We are very special and creative, and we don’t care what’s been done before. We’re here now and we are the future. Microsoft, eat your heart out.” Can you apply that same attitude to your marketing? My belief is that everyone can if you’re willing to take risks and have confidence in the value of your solar product.

Apple-Solar Lesson #2: Cheap doesn’t necessarily mean success and profits. I am well aware that solar PV manufacturers and installers are chasing prices. I doubt this will change any time soon. But remember that computers and laptops are also commodities. So are cell phones. Apple’s computers have never been the cheapest computer in the store. And while they don’t have the largest market share of computers, they have zero debt and are one of the most profitable companies in the world today.

Why would people pay consistently more for your solar product? Lesson #1 above has something to do with it, but there is also the intangible brand mystique factor.

Apple products are essentially luxury items. When people buy it, they don’t just need a laptop or a cell phone, they want and desire that iPhone and that MacBook, and they're willing to wait hours in line to get it first, despite the price and the time.

Can your solar product be a luxury product? Probably not, for reasons I won't go into here. However, if it’s solid technology and performs as advertised or better, and you can get customers to evangelize about how well it works, perhaps how good it looks on the roof, and how helpful your sales staff is, then I think you’re justified in charging more for fostering and maintaining that feeling of security and brand ownership. Easier said than done, I know, but hard work never stopped Jobs. And that brings me to:

Apple-Solar Lesson #3: Failure is part of the journey to success. Looking at Apple’s success now, many forget that it was near bankruptcy in the late 1990’s. As for Jobs, people also forget that he left Apple in the early 90’s to create NEXT, another computing platform that was quietly folded into Apple when Jobs returned in the late 1990’s. Jobs failing never stopped him from continuing to innovate and charge higher prices. It also didn’t stop him from finding partners. In this case, it was merging back with his old company, but it could have been Dell or another manufacturer—assuming they were on the same page.

Two points here. First, success doesn’t happen over night, so plan for a long journey to riches. Second, unique visions and creativity often fail for one reason or another.  It takes courage and more hard work to learn, recover, and try again. Once a stock market darling, Evergreen Solar is in liquidation today. Whoever buys their assets and takes their talent into their folds, good for you. It’s a dark time now, but Jobs is a lesson to former Evergreen innovators to move forward and try again.

Apple-Solar Lesson #4: Simplicity, design, and customer service.  You know why I switched to Mac? Because I was so fed up with my PC crashes, the long start up times, the complicated ways it forced me to do simple tasks, plus the long wait times and defensive customer service. My MacBook and iPhone changed all of that. I paid a higher price, but I’m so satisfied with my computing and phoning (not to mention my music selection process) that I don’t care about the extra cost.

Whatever solar widget you sell to whatever sector, try to keep your sales and designs as simple and elegant as Apple products. Eliminate installation steps where possible. Have patient customer service personnel who know solar and know your product and for the business-to-business (B2B) world, know solar installer business concerns. If your product breaks, replace it without a fuss or a complicated return process. All of this will probably cost more, so you may not be THE cheapest solar widget, but if you’re 10 percent higher with extra-mile service and support – and you can simply explain/market those added values – like Apple, customers will pay more, and it’s a win-win for you and them.

Apple-Solar Lesson #5: Perhaps you’re not just a solar company after all. Apple recently dropped “computers” from its official brand name. They no longer want to be seen as just a computer company, but as a general electronics brand. Even that doesn’t describe it well, since they’re also a music and media and book distribution service too. With the iPad, the book, magazine, and newspaper businesses are being transformed.

I know that many solar companies have merged with or are starting to offer their own energy efficiency services. Roofing companies are also branching into solar, and visa versa. Perhaps just focusing on these two related sectors is good enough – or not.

SunPower just made a deal as one stop solar shop for Ford’s new electric car launch. Are they in the car business?  They are now. A few solar companies are now offering services in Home Depot and Lowes. Are they in the home improvement business? Yup. And where will these new relationships lead?

I believe in focusing on one thing and doing it well. At the same time, I also know that people like Steve Jobs can see beyond their focus. They can make ah-ha connections and say, “nobody’s doing that with solar. We could. Let’s try.” (See Lesson #1 again.)

Want more insights about solar and Apple? I’ve got plenty more, but they’re not going to be the same as yours. So here’s my suggestion: This weekend, go to your nearest Apple store. Play with their products. Talk to the blue shirt “geniuses.” There’s a lot to be learned from HOW they do things, not what they do.

To me, it’s just another way to UnThink Solar.

Tor Valenza a.k.a. “Solar Fred” advises solar companies on marketing, communications, and public relations. Contact him through UnThink Solar or follow him on Twitter @SolarFred.

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

16 Comments

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Mike Mendes
Mike Mendes
October 13, 2011
Great article, Solar Fred! I spent 15 years in the personal computer industry so have an insight into both solar and computers.

1 - How does a solar, especially a PV company, add value to their product as Apple did in most of their products? They were always looking to do the PC, or the cell phone or the personal portable device (iPad) BETTER than anyone else in a way that you could touch, feel and experience. I don't see how you do that with solar.

2 - As one of the other bloggers noted, a solar system is an appliance - you HOPE you don't interact with it. The beauty and elegance of many Apple products and inventions is their ease of use and intuitive interface. (To use a couple of old school buzz phrases from the 80's and 90's!) The way you intereact with an Apple product is precisely what sets them apart.

I remember in about 1995, Apple did an infomercial for their dealer channel, where they basically introduced the idea for the iPad. WOW! It was SO far ahead of it's time that we thought they had all been smoking dope. It took longer than they planned, but how many have they sold now?! Incredible.
Mike Mrozek
Mike Mrozek
October 11, 2011
Re: Can your solar product be a luxury product?

Please look at our equally efficient colored solar energy products http://www.GoldCoastSolar.com

We are American made, and put American products/jobs on roofs in this country.
Ingmar Kruse
Ingmar Kruse
October 11, 2011
Wow - how inspiring your posts are, thank you! So far, the pv industry was selling solar plants while the users are buying pv production sites for more than 30 years. Cost of ownership, productivity and maintanance was not in the focus of the solar companies - at least for a lot of them.

If we are aware that one module can limit the power of all other modules in the string then we need more transparency in pv plants! Here is a German product which has a chance to change this industry:
http://www.youtube.com/watch?feature=player_profilepage&v=F3hB-h87Kd8
The video is in English the web site is unfortuantely in German. But this product could bring this industry what Apple did for the PC industry. It is an OS for solar modules. Cool!
Michael Keller
Michael Keller
October 11, 2011
I believe the lesson is build your products off-shore, say in Asia.
Michael Fleming
Michael Fleming
October 11, 2011
Nice post Tor Valenza,
branding can be important in solar , both pv & thermal. - Working with Kingspan, who have an excellent brand in Thermomax solar thermal. Long warranty, quality product - Now they aren't queing up around the block to purchase these panels! , however it is a step in the right direction.
mike f
thomas dinkel
thomas dinkel
October 7, 2011
Great Post Solar Fred - there are LOTS of things to learn from Apple and Steve Jobs that can be directly transferred into the solar business.

For instance - apple sells 'ease of computing', not computers. How often in the solar biz are we selling $/watt or payback period when our customers are interested in renewable energy, and making a LOW RISK purchase....yet we often fail to remove the risk from the purchase equation and make the purchase decision simpler for our customers.

I advocate making the purchase decision easy for the customer, standing by them to ensure system performance, and demonstrating that we are paying attention by monitoring their system for them....not leaving it to them to ascertain whether the complicated system that they don't fully understand is operating to its potential.

Let's embrace Steve's philosophy and do stuff differently.

Best Regards,

Tom Dinkel
CEO
SunRepoorts, Inc.
Anumakonda Jagadeesh
Anumakonda Jagadeesh
October 7, 2011
Good Post.

Here are famous quotes of Steve Jobs(From experience):

A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.


Be a yardstick of quality. Some people aren't used to an environment where excellence is expected.

Design is not just what it looks like and feels like. Design is how it works.

I think we're having fun. I think our customers really like our products. And we're always trying to do better.

Innovation distinguishes between a leader and a follower.

It is piracy, not overt online music stores, which is our main competitor.

It took us three years to build the NeXT computer. If we'd given customers what they said they wanted, we'd have built a computer they'd have been happy with a year after we spoke to them - not something they'd want now.


Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being Wal-Mart. We make it by innovation.


Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.


To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of disciplines.

You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new.

Every Entrepreneur and Industry can follow Ste Job's Bible.

Dr.A.Jagadeesh Nellore (AP), India
E-mail: Anumakonda.jagadeesh@gmail.com
Shawn Smith
Shawn Smith
September 14, 2011
Great article Solar Fred however I strongly disagree on point 2.
A solar system is, by and large, installed once and interacted with rarely for most users. An Apple i-Whatever is interacted with everyday, sometimes every minute. The ease of use, the cool factor and the brand loyalty for a relatively non-interactive purchase are fairly weak. You might pay a little more for a home furnace of a well recognized brand over a cheap import, but few will pay significantly more, and it must be a very well recognized name or have some significant benefit.
If the idea that an innovative "luxury" brand solar panel were valid, it wouldn't have taken until 2010 for solar to truly start to gain ground in the US. Many premium brands like BP solar and others existed for decades but a mass of consumers were not willing to invest. Some did; mostly wealthy eco-conscious homeowners but not average Joe, and not large companies or investors bringing millions to the table. While selling a 5-20kw home system is nice for a company, booking a 20MW order for power plant is what really drives a company's top line.
The power plant level buyers will only care if your product is bankable and the most cost effective total cost per watt installed vs. kW hour produced per sunlight hour. After that, all the all the cool features in your product are just noise.

Shawn Smith
Ned Harvey
Ned Harvey
August 31, 2011
Successful products add value to the customers in the markets they serve. Apple is an interesting example as the values they target (great design, simple reliable operation, etc) were for a very long time limited to niche markets; however, over time, were adopted by an increasingly broad audience.

Maybe the appropriate question for the Solar PV Industry is - What values do we address and for which markets, or maybe more appropriately stated - what important problems exist today that we can solve for what markets.
The speed with which our industry grows and the ultimate scale it achieves will be dependent on one of two things:

1) The numbers of unique markets we can design our businesses and PV systems to serve better than they are being served today
2) The speed with which the broad markets move from their current system of values and drivers to a set that is uniquely served by Solar PV


Being inexpensive (actually inexpensive is the wrong concept, it's more appropriately being cost advantaged to alternate options) is a value, but I am not sure its the big one that will drive mass market adoption or long term success in the PV industry.

Mass adoption of PV will require that the industry focus its products on the problems faced by its varying customers, including utilities, other big independent power purchasers and individual business and homeowners.

The ultimate cost of the power provided by a PV system will be a factor, but how will it compare to other values around which we may want to design our PV systems and business models, including among others:
- Supplying reliable and durable power
- Eliminated the cost volatility inherent in fuel based generation
- Providing peak power generation
- Providing an easier and less expensive option when looking to renew aging infrastructure - both generation and T& D
- Enhancing the customers brand or other aesthetics
k parcell
k parcell
August 31, 2011
Time is more valuable than money, but Jobs had to market to people who got that. Gates got it and got out to put his time to better use. Maybe Jobs is following that lead now.
Pamela Cargill
Pamela Cargill
August 30, 2011
Apple is a lifestyle product. Solar companies that offer solar solutions as a lifestyle brand will do well reaching a less niche market.
Anumakonda Jagadeesh
Anumakonda Jagadeesh
August 30, 2011
Excellent post by Tor 'Solar Fred' Valenza . Yes. The life of Steve Jobs and spectacular Growth of Apple and an Entrepreneur par excellence, the marketing strategies of Apple and many other unique features can be adopted in Renewable Energy industry. The very fact software Giant Google has entered Renewables in a big way shows the inclination of other industries.

Here are some Famous Quotes from Steve Jobs (Source: Ririan Project):

"Innovation distinguishes between a leader and a follower."
"Be a yardstick of quality. Some people aren't used to an environment where excellence is expected.
"The only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it."
"You know, we don't grow most of the food we eat. We wear clothes other people make. We speak a language that other people developed. We use a mathematics that other people evolved… I mean, we're constantly taking things. It's a wonderful, ecstatic feeling to create something that puts it back in the pool of human experience and knowledge."
"There's a phrase in Buddhism, 'Beginner's mind.' It's wonderful to have a beginner's mind."
"We think basically you watch television to turn your brain off, and you work on your computer when you want to turn your brain on."
"I'm the only person I know that's lost a quarter of a billion dollars in one year…. It's very character-building."

"Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma – which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

Dr.A.Jagadeesh Nellore(AP),India
Wind Energy Expert
E-mail: anumakonda.jagadeesh@gmail.com
David Zwarych
David Zwarych
August 30, 2011
Re: Can your solar product be a luxury product?

Energy systems are part of the Mechnical and Electrical Engineering industry - systems that are often hidden away to perform their silent work. In contrast, solar can be visible, very beautiful and desirable as a showcase project.

Look at Sarah Hall's solar chimney project that combines colored translucent solar cells, stained glass and LED lighting - a shimmering monolith of art and and design both night and day.http://www.solaripedia.com/13/206/vancouver_wind_tower_employs_photovoltaics.html

Success,
DaveZ
Bman Bman
Bman Bman
August 27, 2011
Capable, competent companies advertise their strengths in detail and without embellishment. Shady companies use generalizations to describe their abilities, promote their claims to good character, and defend the merits of the industry they wish to serve.

When reading the websites of renewable energy companies, elementary information about natural resources is a real turn off. A serious client does not want to read about the total amount of sunlight that falls on the earth or the total amount of wind that circles the earth.

As for Apple, the love is getting a little heavy. Apple is a typically ruthless corporation, exploiting workers and making windfall profits. Apple does make good products, and their website is very usable and informative. But Apple's strengths only stand out because of the failure of its contemporaries. The ascendancy of political conservatism has damaged industrial design because modern conservatives are cheap and have bad taste.

In any event, solar panels are about standardized quality at the lowest price. They, like Henry Ford's Model T, come in one color, black. The aims of the solar industry should be long term growth based on useful products. The market for solar panels as a status symbol will be saturated in 5 years. And, unlike an iPod, which even a homeless laborer could save up to afford, a solar installation is a serious investment.

America needs to return to Yankee values, hard work instead of hard sell. New Urbanism is a good model for architecture, and Apple is a good model for gadgetry. But most people don't identify as hipsters. The solar industry should serve something deeper: a measure of earned independence from the pressures of survival (i.e. lower power bills).
Tor 'Solar Fred' Valenza
Tor 'Solar Fred' Valenza
August 26, 2011
Great point, Jim! Thanks for reading and adding your own insights.

Packaging/presentation definitely adds to the brand mystique. As you said, when you open an apple product, it's almost exciting seeing the cleanly designed box and how they fit everything perfectly inside. Can that be applied to installs and parts? You gave a couple of great examples and I'm sure there's more.
Jim Jenal
Jim Jenal
August 26, 2011
I think this is a really insightful post. Apple is a fascinating company and I do believe there is much that we in the solar industry could learn from them.
Here's one additional insight if I may - there are no details so small that Apple ignores them. Case in point - their packaging. Everyone ogles their final products but if you are lucky enough to have bought one of these devices you couldn't help but marvel at the attention paid to how the products are delivered to the end customer. (Contrast sharply with a PC that I just purchased this week whose packaging was all function, no fashion.)
For solar companies that translates into providing exceptional attention to detail in everything that we do - from our websites to our proposals to our conduit bends. Bring a sense of style to what you do and your clients will take notice - just as they do for Apple!

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UnThink Solar

UnThink Solar

UnThink Solar is a strategic solar marketing and communications company. Clients include Panasonic, One Block Off the Grid, Free Hot Water and other solar PV and Thermal companies who desire to stand out in an increasing competitive solar...
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