Eieio
November 20th, 2009, 09:58 AM
Solar Panel Makers Seek Local Ties
By JERRY A. DICOLO
Solar panel makers, taking cues from industrial products like Trane air-conditioners and Andersen windows, are racing to roll-out networks of installers across the U.S. and internationally as they try to establish their brands in the residential market.
SunPower Corp., Suntech Power Holdings Co. and others are enlisting hundreds of locally-owned installers with partnerships that offer training, sales support and help with marketing and advertising.
Poco Solar Energy workers install panels in Gilroy, Calif. The company says some customers are asking for panels by brand.
SOLAR_TECH
SOLAR_TECH
With the dealer networks, the manufacturers hope to build brand awareness in what many see as a commodity product. But the moves come as solar-panel manufacturers battle weak demand due to the recession and an oversupply of panels.
Companies such as First Solar Inc. and SunPower have recently lowered their forecasts for the year, hurt by excess inventory and price competition.
Most panel makers sell directly into the utility market and use distributors to reach consumers. Now some are betting that by cutting out distributors and working directly with small local installers, they can increase the loyalty of installers to one brand while raising profits.
"It's going to be a significant part of the business," said Mark McKahan-Jones, head of Suntech's dealer sales division. The company, which is based in China and said Monday it plans to open a U.S. facility near Phoenix, has enrolled 200 U.S. installers so far.
Smaller rival SunPower, which is based in San Jose, Calif., has about 900 installers, including 200 in the U.S. In addition to sales and distribution support, SunPower offers its installers access to training programs and co-marketing funds.
By agreeing to work directly with a panel manufacturer, small installers say they pay less for panels than from larger distributors. They also have credit agreements, can get help arranging loans for customers and are offered technical support.
Link to full article here: http://online.wsj.com/article/SB10001424052748704431804574541632529226084.html
By JERRY A. DICOLO
Solar panel makers, taking cues from industrial products like Trane air-conditioners and Andersen windows, are racing to roll-out networks of installers across the U.S. and internationally as they try to establish their brands in the residential market.
SunPower Corp., Suntech Power Holdings Co. and others are enlisting hundreds of locally-owned installers with partnerships that offer training, sales support and help with marketing and advertising.
Poco Solar Energy workers install panels in Gilroy, Calif. The company says some customers are asking for panels by brand.
SOLAR_TECH
SOLAR_TECH
With the dealer networks, the manufacturers hope to build brand awareness in what many see as a commodity product. But the moves come as solar-panel manufacturers battle weak demand due to the recession and an oversupply of panels.
Companies such as First Solar Inc. and SunPower have recently lowered their forecasts for the year, hurt by excess inventory and price competition.
Most panel makers sell directly into the utility market and use distributors to reach consumers. Now some are betting that by cutting out distributors and working directly with small local installers, they can increase the loyalty of installers to one brand while raising profits.
"It's going to be a significant part of the business," said Mark McKahan-Jones, head of Suntech's dealer sales division. The company, which is based in China and said Monday it plans to open a U.S. facility near Phoenix, has enrolled 200 U.S. installers so far.
Smaller rival SunPower, which is based in San Jose, Calif., has about 900 installers, including 200 in the U.S. In addition to sales and distribution support, SunPower offers its installers access to training programs and co-marketing funds.
By agreeing to work directly with a panel manufacturer, small installers say they pay less for panels than from larger distributors. They also have credit agreements, can get help arranging loans for customers and are offered technical support.
Link to full article here: http://online.wsj.com/article/SB10001424052748704431804574541632529226084.html