Installers can pitch with the compelling offer: “install solar with no upfront cost.”
Voltaic has a number of excellent relationships with installers around the country. The relationships are win-win. As a source of funding, installers can pitch to clients “install solar on your roof without paying a dollar.” Voltaic, in return, has access to a number of PPA funding opportunities.
Voltaic is growing. We are looking to grow our relationships with installers with a common goal of putting more solar panels on rooftops. However, we are selective about who we work with and we limit the number of installer relationships. We don’t have an endless supply of capital and we want to ensure funding is available for our installers when opportunities arise.
At the time of writing, we have excellent relationships with two installers (one national and one based in Queensland). We are looking to add one or two more with a view to developing long-term relationships.
Why offer PPAs to clients?
For those newer to PPAs, the reason why you should offer PPAs to clients is simple: it allows you to say “install solar without paying a dollar.” Or, “save $40,000 off your energy bills without spending a cent.” These are compelling statements. They are completely true and they are quick to gain the attention of possible clients.
PPAs really are a win-win-win: a win for the client as they save on their energy bills, a win for installers as it gives them a tool to attract clients and a win for Voltaic as we can generate a reasonable, low-risk return for our investors. We think PPAs are better options than loans or leases. PPAs transfer all the risk to Voltaic, and we can spread that risk over the many projects that we invest in.
What installers can expect from Voltaic
Communication – we are responsive, professional and communicative. We respond to emails and phone calls. It sounds simple but it still amazes us how rare it is to find people that communicate as they should. If you send us an email, we will respond (usually very promptly). If we miss a call from you, we will call you back. We attend meetings on time. If we like a project, we’ll let you know and we’ll want to keep talking about it. If we don’t like a project, we’ll let you know where we stand. In short, we are reliable, professional and we respect your time.
Actions – actions speak louder than words. Above just being good communicators, we back it up. We say what we do and we do what we say.
Commitment – we are committed to the solar industry. We are in it for the long run – we need to be if we’re entering into 20 year contracts! Accordingly, we’re looking to develop mutually beneficial, long-term relationships.
Transparency – we discuss projects transparently, both with installers and with clients. We don’t keep secrets or tricks up our sleeves. We like to share the models we use to calculate our returns, so we can discuss our inputs and assumptions to arrive at a fair proposal for clients.
Honesty – all of the above culminates in being good, honest operators.
Projects
Below are some of the factors we assess in considering projects:
Long Operating History – in entering long-term contracts, we want to make sure the client is going to be around for a long time. We prefer to fund projects for clients that have been around a while with an established track record.
Financials – we look to fund projects for clients with a strong balance sheet and strong financial performance.
Operating Hours – we prefer clients that operate 7 days a week as this will lead to a higher rate of self-consumption.
Size – we’re nimble at Voltaic and very happy to look at small projects; anything as low as 25kW.
Industry – “change is the only constant.” We prefer clients that operate in industries that are less likely to be affected by technological and societal changes. For example, car mechanics will hardly exist in 20 years as we move to electric vehicles which don’t need to be serviced. Examples of industries we like include consumers staples, embedded networks for accommodation and hospitality, health care and education.
Batteries – we are open to funding battery projects. Batteries are more expensive, but PPAs can work where there is significant consumption outside of daylight hours. We have separate PPAs with separate rates for solar installations and battery installations.
What we expect from installers
We largely expect the same from installers as what we promise above, with one key allowance – communication. We understand that some installers might need to balance being on the tools and admin work. We get it and we don’t expect an immediate response to our calls and emails.
Quality – we expect installers to take pride in their work.
Warranty – we also expect installers to stand by their work. If something goes wrong, we expect it to be fixed. No excuses or “I’m too busy with other jobs” – do a good job and back it up.
Alignment – projects need to be sized appropriately to match client consumption. It’s clear to us that as the rapid rate of solar installation continues, in a few years solar systems will be curtailed during the day. Grid operators will control inverters and dial them back to balance the output of solar systems and the grid-wide demand for electricity. If solar systems are too large, if clients are exporting too much solar, output will be dialled back and Voltaic will be effectively left with the bill. We work with installers that size systems appropriately.
If you work for an installer or know good quality installers that might be interested in speaking with Voltaic, please feel free to get in touch at tim@voltaic.fund. We promise we’ll respond 🙂