Wholesale - Lifting The Lid On Solar Panel Distribution

As a client, its necessary to understand the method by which solar panels get from

manufacturers to end users to ensure you are getting a sensible deal. Normally, most solar panel manufacturers are huge firms who turn out in terribly giant quantities. This means they generally like to sell to only a few giant distributors in high volumes rather than have tons of smaller customers.

This makes their sales method easier since managing many customers is terribly tiny time-consuming and costly. The massive distributors then sell to either smaller distributors or to installation companies. The distributors aim to provide all the mandatory parts for installers, permitting them to buy in little quantities and providing technical support.

Examples of well known solar distributors within the UK are Dulas, Segen, Solar Century and Waxman. Because the UK solar business is so small and therefore new but, these UK wholesalers are terribly little compared to their European counterparts in Germany, Spain and France. One in every of the largest solar distributors in Germany, IBC Solar, will sell 500MW of solar equipment this year. This compares to a complete expected UK market size this year of 60MW! Therefore IBC Solar sells nearly 10 times the full UK market, and is simply one company!

Unsurprisingly, since the UK is now seen as an fascinating emerging market within the solar business, several of those giant European distributors are moving over here. I spoke to at least one last week that is investing two hundred thousand pounds this year to set up a warehouse and employ a five person team to handle the UK market. This is sensible news for UK installers as a result of they can currently have access to pricing that was solely previously available to their counterparts in mainland Europe. The UK wholesalers on the opposite hand could struggle to compete with such large competitors.

Competition is coming from all sides however, and there are currently solar panel manufacturers who are moving downstream and changing into additional like wholesalers. It's now doable for smaller installers to shop for directly from a few of the European manufacturers, thereby bypassing the wholesalers and their margins. To face up to this competition the big European wholesalers are making an attempt to achieve advantage by developing an array of advanced support services for wholesalers to win them over. This includes things like credit lines, coaching and design software.

It's unclear whether or not these features will suffice since there is conjointly competition from the big in-house installers. In the US there is a terribly large installation firm known as SolarCity which goes head to head with the wholesalers for marketshare, but does all installations using its own in-house team. This has blessings in-terms of pricing and quality of service - there are no middlemen and they can guarantee the tip to finish service - the drawback is that growth is capital intensive and slow.

The market is evolving so rapidly it remains to be seen which business model will win out in the future, what's clear is that there can be a lot of movement in the market - all of that is nice for patrons since it means that prices can fall and client service will improve. Therefore when choosing a solar panel system, try to seek out out where the installer buys their solar panels from, not just who the manufacturer is. This will help you tell if you are getting a good deal or not.

by: Chuck Ramirez

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