Data Analytics Reducing Solar Customer Acquisition Costs

Originally published on Cleantechnica

As the U.S. solar industry continues to see year-over-year growth[i], solar companies are met with a unique set of challenges to take advantage of this growth and market opportunities. Whether focused on generating sales via door-to-door efforts or traditional marketing channels, all solar companies stand to benefit from looking at the data behind their leads, and existing customers, to help streamline future sales. Businesses looking to gather actionable customer insight often utilize solutions like those from Epsilon to reach out to existing and potential customers more effectively. The need for analytics in solar sales is of particular importance as solar systems have a “unique selling proposition and typically represent a one-time sale”, according to Marc Guy, CEO of Faze 1. Robbie Adler of Faraday saw the need for their analytics platform as the solar industry continued to see a “dramatic decrease in hardware costs over the past decade while soft costs remained flat.”

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Marketing to clean energy customers is fraught with inefficiencies, according to experts in data analytics for clean energy and according to Guy,”80-90% of homes” currently contacted by solar companies are “immediately unqualified.” Pasi Miettinen, CEO of Sagewell, Inc. calls attention to the “wastefulness” in spending on unproductive sales leads due to a lack of sufficient differentiation and filtering.Miettinen highlights the need to “define the best customer,” and reach “high value and satisfied” customers.

Because of its greater variability and complexity, the use of analytic tools and techniques has been most useful in the residential solar market, says Dr. Beau Peelle, President of Clean Energy Experts. Being able to analyze data immediately is vital for a lot of companies. It can help them to detect patterns and spot any anomalies in their data. In order to do this successfully and efficiently, a lot of companies have been looking into stream processing. For those who are wondering What is Stream Processing? – Ververica can offer some useful advice to help more companies understand the benefits of processing data this way. Peelle also calls attention to the importance of big data in defining and targeting qualified customers. As he notes, the combination of user profiles and activity data with geographic information filtered with rapid data profiling is particularly effective in “producing higher quality leads” in clean energy, and many other industries.

Peelle claims that Clean Energy Experts has “tripled the production of qualified customer prospects in solar”, and the cost per customer acquisition for solar companies using their analytics platform “has dropped by 30-60%” due to resulting efficiencies in their sales process. Peelle added that when overhead costs are factored in, “fully loaded customer acquisition costs” of their clients have declined even further.

In an effort to better target higher value solar customers, Guy notes that Faze 1 focuses on those customers that have already purchased solar and on homeowners with high credit scores, high interest in solar, and other key attributes. The use of such data can help clean energy businesses generate leads that are “85-90% more qualified, which is two to three times higher” than the traditional qualification rate. The company “aggregates solar installation information, demographics and sensing information, and analyzes the likelihood someone will purchase solar.”

By applying analytics to customer acquisition Adler shares that the “Faraday data management platform uncovers superior customer acquisition strategies-using a map-driven platform-improves lead conversion rates for companies selling considered purchases, such as solar, into the home. The Faraday platform has helped leading organizations in the energy industry win new business more effectively, producing customer conversion rate lift of over 30%.”

In addition to analyzing data to attract future customers, it is imperative to know who your current customers are and what drove their buying decision. Miettinen underlines the value of examining the “entire lifecycle of customers” using analytics tools. By doing so, clean energy companies are able to identify customers that are best suited to their sales organizations in order to “produce the best result.”

Sagewell “uses big data and predictive analysis extensively, in order to estimate the value of a customer and determine key attributes of customers that work for some time,” says Miettinen. He notes that these attributes “are continually evolving,” and that “adjustable models need to be created that track sales outcomes over time and examine geographic, seasonal, and other factors that account for varying sales results.”

No matter what resources solar companies utilize, big data and intelligent analytics are helping to lead clean energy companies to better customer prospects. This renders the customer acquisition process far more cost-effective. Miettinen notes that this process creates a “virtual referral circle.” Where your one-time customers now become advocates for your product, spread the word and drive more qualified leads to your lead pipeline-traditionally at a greatly reduced acquisition cost. While better data on qualified customers alone won’t necessarily lead to significant sales boosts, it’s a starting point where all clean energy companies stand to gain.

To find out how customer data analysis can help your business, visit

Amanda Brodbaek and Michael Mascioni contributed to this article.


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Jake is the CEO & Founder of Eco Branding. He has dedicated his career to advancing cleantech industries through marketing innovation. Jake leads Eco Branding’s client strategy, business development and operations. He serves on the Advisory Board at EmPower and the Virginia Advanced Energy Industries Coalition. Before starting Eco Branding, Jake had more than six years of experience planning and executing media and marketing campaigns in agency, non-profit and private-enterprise environments. Jake studied Government and Politics with a focus in Environmental Policy at the University of Maryland.

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