John Fay & Becca Choi, Infinity Solar
Solar energy is prospering and business-savvy roofing contractors are taking action. As the solar industry booms, partnerships between roofing contractors and solar companies offer various benefits for all parties, including business growth, access to new customers, a positive customer experience and environmental benefits.
Many roofers and solar installation teams have already joined forces, but there are still growth opportunities for those who haven’t yet secured a business partner.
The U.S. solar market was valued at $33 billion in 2021 and is on the rise. The growing need to supply power to electric vehicles and the collective desire to move away from fossil fuels are growing trends that will serve as catalysts for rapid solar energy growth in Florida for the coming years. The solar industry’s goal is to produce 30 percent of all energy in the U.S. by 2030.
Meanwhile, roughly 2.3 million single-family, standalone homes will need a new roof each year. Of these homeowners, a majority already perceive value in installing solar panels on their homes, but many are unaware of the process and costs involved. Roofers who make the choice to introduce a solar provider who then works to educate homeowners, will position all parties involved to benefit. Plus, of the homeowners who seek out a solar company first, roughly 20 percent of homes will require a new roof before solar installation is possible. By partnering with a solar company, roofing companies gain access to a motivated customer base through warm referrals.
According to Forbes Magazine, 75 percent of homeowners would like to switch to solar in the next five years and only a third have hesitations regarding the upfront cost of solar installation.
Considering many solar installation companies currently offer no money down options to homeowners, the benefits of installing solar are beginning to outweigh the costs for homeowners of both new and old properties.
While a roof replacement returns roughly 60 percent of its value when a home is sold, solar panels can increase a home’s value by $5,000 to $32,000 and that is in addition to the monthly savings experienced from lower electricity rates as a result of the solar system.
Residential solar energy systems are also eligible for a federal tax credit that can result in an eligible homeowner receiving a tax return in the thousands, many times justifying the cost of a new roof. Systems installed between 2022-2032 can receive a 30 percent tax credit, which decreases to 26 percent for 2033 and 22 percent for 2034, further incentivizing homeowners to make the switch in the next ten years.
Renewable energy is the future of dependable energy in Florida, providing environmental and financial benefits to homeowners. As the affordability and accessibility of solar installations increase, millions of homeowners will choose to install solar.
Homeowners in the U.S. see the value in switching to solar and they also see the value in switching at the right time – during a roof replacement. Standard roofs and solar panels have similar lifetimes of 20-30 years, which means installing them together presents a cost-saving solution for homeowners.
Customers in need of a new roof are often shown how to fund a new roof and solar through long term financing. Homeowners are provided the option of redirecting the exact amount they are paying each month to their utility provider for electricity, towards
instead investing into a solar panel system that they will eventually own. The options then equate to either “renting or owning” their electricity production.
Financing the solar system is an important factor to consider and, as interest rates climb, lenders are extending solar system loan terms to 25 and 30 years, which may still provide for a cost effective long term advantage compared to paying a utility provider and receiving no ownership in the utility. In short, homeowners are going to pay for electricity regardless, so paying a long term loan with the benefit of ownership is almost always going to outweigh the option of “renting” electricity production with nothing to show for it after 25 or 30 years.
While many homes are ready for solar installation, some will require a new roof before solar installation is possible. Solar companies are more likely to convert these customers if they can offer an all-in-one solution or a team approach.
Without a partnership with a roofing company, a solar installation company must ask customers to search for, vet and choose their own reliable roofing contractor. Customers don’t want the hassle of doing the extra work required to replace their roof, so if the solar company can offer everything their customer needs to get started, they’re more likely to sell a solar system.
The solar industry is expanding at a rapid pace, creating millions of jobs for Americans. But these jobs aren’t always filled quickly. It’s a common issue for solar installation companies to run low on staff.
A partnership with a roofing company can potentially provide a solar company with the staffing support needed to complete an installation. While roofers can’t handle every aspect of solar installation, they can install the framing that the solar panels are
attached to.
The Solar Energy Industries Association (SEIA) predicts that in the next ten years, the United States will increase its amount of solar capacity by over 350 percent. The U.S. currently possesses 131 gigawatts (GW) of solar energy and plans to install 480 GW of new solar capacity in the coming decade.
The 131 GW of solar in the U.S. are powered by over 3.5 million solar energy systems, which means Americans can expect to see 13 million more solar energy systems arise in just ten years – that’s over 1 million each year.
By the end of 2020, 2.7 million solar energy systems were residential PV solar energy systems, which means most solar energy comes from panels on residential homes rather than solar farms. A strong desire to avoid land use pushes solar companies to
pursue solar roofing, which further decreases the environmental impact of solar and many of these new solar systems will require American homeowners to consent to solar installation.
Some states anticipate solar panels becoming a requirement for new home construction. When this happens, roofing contractors already partnered with solar panel companies will reap the benefits of this partnership by appealing to contractors building new
homes.
Solar energy has seen immense success across the U.S., especially in states that receive plenty of sunlight and possess supportive infrastructures for solar development, such as California, Texas and Florida. Roofing contractors in Florida are especially poised to benefit from the nation’s adoption of solar.
Throughout the next ten years, as the solar industry makes major pushes for growth, the demand for solar and roofing installation services as an all-in-one package will increase and businesses with established partnerships will benefit the most from this increase in demand.
As the U.S. moves forward with technological advancements and the widespread popularity of solar, roofers that don’t offer solar installation or replacement may fail to meet the needs of their consumers, especially if solar panels become a mandatory requirement for new builds in their area.
Roofing contractors must meet the need for solar installation to survive in the changing market. Like any business owner, roofing contractors across the nation will benefit from taking notice of changes in the market and adapting accordingly for long-term success.
In the U.S., there are over 10,000 solar energy businesses and roughly 80,000 roofing contractors. Although the number of solar energy businesses is on the rise, the select roofing businesses that have already chosen to establish a connection with a solar
provider have already experienced the beneficial side effects of the growing solar industry. For those who haven’t already partnered with a solar sales and installation company, perhaps now is the time.
John Fay and Becca Choi of Infinity Solar in Tampa. Contact Infinity Solar to find a local solar provider in all 67 counties in Florida. For information, visit: www.infinitysolarnow.com/contact/.
Previous Article