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SolarCity Teams Up with Honda: Who's Your Non-Solar Co-Marketing Partner?

Tor 'Solar Fred' Valenza
February 22, 2013  |  9 Comments

 

Sometimes it feels like solar installers have to make their own way in the world, but as SolarCity has just shown, that’s really not true at all.

In case you missed it, SolarCity and Honda recently announced that they would be partnering to offer SolarCity products to Honda car buyers in 15 states states. In addition, Honda — a profitable company — will be funding SolarCity leasing and PPA products and benefit from the solar tax credits, as well as enable dealers to put solar on dealerships and set up EV charging stations.

For solar marketing purposes, let’s put aside the investment side of this new partnership. Plain and simple, SolarCity is co-marketing with a respected and famous household brand: Honda. Sungevity has done this with Lowes home improvement chain, and SolarCity has a similar relationship with Home Depot. SunPower, a panel manufacturer and commercial integrator, has also partnered with Ford to generate leads for their EV's, but I think this goes a step farther, especially with the investment fund.

Marketing wise, solar and home improvement and EV's are very related. This SolarCity move is more akin to Batman Forever co-marketing with McDonald’s. Burgers and Batman really don’t go together, but they can if they’re marketed in the right way, allowing both companies to benefit through brand recognition, word of mouth, and referrals.

Why SolarCity and Honda are a Good Fit

In the case of SolarCity and Honda, both have similar sustainability goals and both have similar customer demographics: They’re environmentally conscious, homeowners, and have enough income to get a car loan, so will probably pass SolarCity’s solar leasing/PPA credit standards.

It remains to be seen how this relationship is executed, but it’s not difficult to imagine Honda dealerships proudly showing how green their dealership is with a SolarCity solar installation. The dealership is saving money, and, hey, Mr. and Mrs. Car Buyer, so can you with a SolarCity lease with little or no-upfront cost and guaranteed annual savings.

For SolarCity, it’s like having an extra national lead generation team. For Honda (aside from the investment and tax equity benefits), it’s a way to call attention to their line of hybrid cars and EV’s, which don’t (yet) have the green cache of Toyota’s Prius line. But being aligned with a solar company makes them seem even more green, doesn’t it?

How You Can Co-Market Like SolarCity

SolarCity isn’t the only installer that can co-market. No, it’s not going to be a national brand like Honda, but think local. I don’t care how Mom & Pop you are, there’s always a way to find an unrelated local business to co-market. It’s really an ideal relationship, when you think about it. Partner companies aren’t competitors, yet when structured creatively, both companies can have a vested interest in supporting the other to their customers.

And that’s the key this marketing strategy — similar customers. You have to choose a partner company that has similar customer demographics; i.e. homeowners with good credit ratings. If they don’t have an environmental interest, then perhaps they have an energy independence interest. Regardless, most homeowners have a money-saving interest.

With that in mind, let’s go through three examples that might work for any size installer in any city or town.

1) Offer an exclusive discount to large law firms, bank employees, or any large company in town. Contact the company's human resources department and ask if you can make a catered lunchtime presentation about solar and its financial benefits. Couch it as a company perq to employees, and offer a discount to any employee. Be sure to have a solar leasing or PPA option, or if you’re presenting at a local bank, co-market a home improvement loan through that bank.

2) Co-market with a popular family restaurant. Is there an independently owned restaurant in your area that everyone loves? Would they like to be more green and perhaps make some green? First, see if they’re interested going solar. Ya never know. Second, I love, love, LOVE giving customers free solar parties after every install. They invite their friends, learn about solar, and who knows how many referrals you get. Cater these parties with this local popular restaurant. In exchange, ask if the restaurant can create a dish or a desert or cocktail, and tag it with a name that relates to your solar company. You can also offer a special discount code to the restaurants’ customers and special drink coasters set up at the bar or have brochures at the hostess station.

3) Sponsor a little league team or other youth league. Families own homes and families go to little league and other kid sports events. First, offer every player’s family special discounts for going solar. Second, contribute to purchasing new equipment or uniforms, and be sure to advertise that fact in any team program or calendar. You can also offer a referral fee to be donated to the team for each sale generated by the team’s discount code. Or why not donate a certain amount of money for every home run, goal, or touchdown? You get the idea.

Got more co-marketing ideas that have worked for you? Please share them in the comments section below.

Those are just three simple examples, but really, the sky's the limit for co-marketing your solar installation company. It’s really just up to you to be creative… and to UnThink Solar.

Tor Valenza a.k.a. “Solar Fred” advises solar companies on marketing, communications, and branding. Want more solar marketing info? Sign up for the Solar Fred Marketing Newsletter, or contact Solar Fred through UnThink Solar. You can also follow @SolarFred on Twitter.

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.

9 Comments

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Thom at Spiffy Solar
Thom at Spiffy Solar
March 1, 2013
Ray, here's a good resource on the own vs. lease quandary. https://www.energysage.com/solar-lease/should-buy-or-lease
David Coles
David Coles
February 28, 2013
Rolls Royce is considering partnering with DCAirSolar Systems. Will keep you informed. www.dcasystems.com for more information.
Thom at Spiffy Solar
Thom at Spiffy Solar
February 26, 2013
Sister companies, now that's really committing to co-marketing. I can think of several roofers whose businesses were saved from the construction downturn by diversifying into solar. Another company which started out in home theater and security now has an even bigger solar business.
Andrew Skinner
Andrew Skinner
February 25, 2013
You guys are right on about the roofer relationship. In fact I have helped a roofing company in the Washington DC (Prospect Waterproofing) area start a sister solar a solar company (Prospect Solar). There are ample opportunities for cross marketing/selling for us. It's much easier to build clients trust as a solar installer when you are able to uphold roofing warranties. We've been able to train some of the roofing installers in solar, which is nice because they are certified installers of most every roofing manufacturer we are installing on. Symbiotic for sure.

Recently we've begun to develop a co-marketing relationship with a landscaping company, and are very excited about the opportunities. We are going to set up demonstrations at their garden centers and arm their landscapers with solar sales materials. It's great for their sustainable image, but also earns them a bit of business with some of the ground mount solar installs (trenching etc.). Not to mention green roof maintenance with Prospect Waterproofing, and referrals back and forth in general.
I would definitely encourage other solar companies to get out there and develop relationships across different business sectors. You never know what may come out of it. For me it was a dream job, and I'm very thankful.
Tor 'Solar Fred' Valenza
Tor 'Solar Fred' Valenza
February 23, 2013
Ray, ditto what Thom said. Thanks, Thom!

Also, as he mentioned, it's off topic, so please let's keep the conversation going about co-marketing residential solar, not about how to finance it. Great topic, but not for this post.
Thom at Spiffy Solar
Thom at Spiffy Solar
February 23, 2013
Not really on topic, Ray, but I'd like to respond. I'm sorry that the bids you obtained in your area were not favorable. Although the technology is simple, the logistics can be very complex. Your savings figures do seem really low, so maybe solar actually is not worth doing where you live. I suggest that you look for an installer with a pre-pay option. These are often very favorable, wouldn't have the issues of transfer that you mention, and would still come with a full-term maintenance agreement. PACE financing, which began in spots a few years ago, also addressed your concerns. Unfortunately, Fannie and Freddy Mac didn't like the idea, so they killed it. I wouldn't sign up for solar either, if the savings were what you describe. I found a much better deal and obtained a twenty year lease for a single cash payment of less than I would have paid the utility over five years (without a rate increase). The system was designed to cover 85% of our usage, but after a few simple efficiency measures, it now supplies 100% of our electricity. At the end of the term, I will opt NOT to purchase the system. If the 'owner' wants to remove a greatly depreciated system, they are free to do so (this will cost them more than it's worth). Frankly, I don't think that they will bother, in which case the system is mine. If they do take it back, I still got twenty years worth of electricity for the price of five. Like I said, every region is unique as well as timing and I'm sorry that it wasn't favorable for you. Maybe you are just fortunate enough to live in a place with low utility rates? And, unfortunately with low incentives. As you said, the technology is pretty affordable. So, if you don't like the lease and still want solar, I suggest you save your pennies (or get a loan, as you suggest), purchase the equipment and install a system on your own. Your findings, however, can not be universally applied across the entire country or the industry as a whole.
Ray Boggs
Ray Boggs
February 23, 2013
Solar leasing or solar fleecing ? You decide. The solar leasing companies want your roof so that they can take your 30% federal tax credit worth thousands of dollars. They will also take any and all other financial incentives such as cash rebates and REC credits. In exchange you'll only get a 10 to 15% reduction in your electric bill after you factor in the lease payments and you'll be stuck with 20 years' worth of lease payments on forever ageing solar equipment that you can't sell because it won't belong to you. In fact after making 20 years' worth of lease payments, if you want to keep the system, you'll have to buy it from the leasing company at fair market value. And good luck ever selling your home with a lease attached to it. What home buyer will want to assume your lease payment on used equipment when they can buy a brand new, state of the art system for as little as 1/3 the cost of your lease payments. Today you can buy a complete, name brand, grid tie solar system for only $1.66 a watt. And that's before any incentives. Instead of a solar lease why not get an FHA $0 down solar loan so you can keep the 30% federal tax credit and all the other financial incentives for a much better return on your investment. Oh, and that discount that the leasing company is offering you, who do you think is paying for that in the end? Right, how generous of you.
Tor 'Solar Fred' Valenza
Tor 'Solar Fred' Valenza
February 22, 2013
Indeed, Thom. Look no further than http://www.oneroofenergy.com/ on a large scale, but that can happen locally too.

There are other larger companies also co-marketing their subdivisions, such as Vivant Solar, a division of home security and alarm firm, Vivant. But that's a subdivision, not an entirely separate company.
Thom at Spiffy Solar
Thom at Spiffy Solar
February 22, 2013
The most obvious symbiotic marketing relationship that I see would be with roofers.

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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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