Navigant Research Blog

Group Buying Comes to Residential Solar

Anissa Dehamna — January 3, 2012

As I mentioned in an earlier blog post one of the key drivers for community and residential energy storage is distributed solar photovoltaics (PV).  Although the typical assumption is that the market for distributed solar power will be driven by economic incentives for residential generation, one factor often ignored is how impractical or challenging installing solar PV at a home can be for a homeowner.  For homeowners, understanding the economic benefits and vetting individual vendors and installers can be a daunting process.

One organization working to remedy this is One Block Off the Grid (1BOG), which is attempting to adapt the group-buying concept for consumers installing solar power systems.  Group-buying has taken off with several well-known deal sites (Groupon, LivingSocial) offering discounted deals on goods and services.  While the idea of a middleman who connects a vendor with a customer is a cornerstone of business-to-customer strategy, 1BOG takes this concept further.  The company is one part advisor, one part matchmaker, and one part dealmaker.

The purpose of 1BOG is to educate and advise potential residential solar PV adopters on the benefits and drawbacks of installing solar power systems (including rebates, other incentives, and return on investment).  Once clients decide whether or not to go forward with a project, they can then take advantage of a promotional deal on a system that suits them.

Installers and vendors benefit because participation in 1BOG differentiates them from the crowd of other businesses in the space.  Customers benefit by understanding the practical and financial implications of installing solar PV in their homes.

1BOG is not the only model for this type of service.  Community-based models such as the Mt. Pleasant Solar Cooperative in Washington, D.C. are less business-driven but operate on similar principals: education and facilitation.  In the case of the Mt.  Pleasant neighborhood, two neighbors’ struggle through the process of installing solar PV on their homes led them to found an association to give other neighbors an easier path to opting into solar.  The cooperative is one of eight covering various neighborhoods in Washington.

Where this gets interesting for energy storage is that 1BOG concentrates its efforts (and consequently, group buying discounts) in specific, geographically bounded markets.  Similarly, community co-ops do the same by virtue of their association-based models.  Although this is a natural model for residential PV diffusion, it’s also likely to wreak havoc with low voltage networks.  Therein lies the opportunity for energy storage technology.

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