TECHNOLOGY INVESTMENT TRENDS 2016

Transcription

1 SOLAR CONTRACTORS TECHNOLOGY INVESTMENT TRENDS 2016 EagleView Technologies 2016 Solar ereport Solar Contractors Technology Investment Trends

2 Introduction The solar industry is growing rapidly and continuously morphing as installers, manufacturers, and government agencies attempt to keep up with the pace of change. According to GTM Research, the recent five year extension of the Investment Tax Credit (ITC) in will foster $40 billion in incremental investment in solar between 2016 and In this environment, leveraging technology can be the difference between success and failure. Impacts of Solar Investment Tax Credit Extension. Retrieved March 10, 2016, from Solar Contractors Technology Investment Trends

3 By Q the cumulative number of U.S. homeowners with rooftop solar will eclipse the 1-million mark. In an effort to help greater understand what to expect in the coming year, we have surveyed over 200 solar industry professionals in both the residential and commercial sectors in order to gain insight on where solar is heading, according to the frontlines. Many contractors are aware of the solar industry s rapid growth and want to shift their business to take advantage of this activity. How big is this shift to solar? By Q1 2016, the cumulative number of U.S. homeowners with rooftop solar will eclipse the 1-million mark, according to GTM Research. With that in mind, data has been analyzed to provide insights that can help in building a successful solar business. U.S. Residential Solar Economic Outlook (2016). GTM Research. Retrieved from Solar Contractors Technology Investment Trends

4 Who we are: EagleView is the leading provider of high-resolution aerial imagery and exterior property measurement reports. A fleet of 90 aircraft flying year-round and proprietary, patented 3D technologies allows for delivery of accurate, detailed remote measurements including dimensions, orientation, tilt and obstructions. Delivered in a CAD file, it can be imported into existing workflows for precise proposals and designs. Solar Contractors Technology Investment Trends

5 Contents Chapter 1: Technology Investment: Residential Versus Commercial Chapter 2: Technology Budget Allocations in 2016 Chapter 3: Technology Investments by Company Size Chapter 4: Technology Investments by Region Chapter 5: Technology Investment by Type Solar Contractors Technology Investment Trends

6 CHAPTER 1 TECHNOLOGY INVESTMENT: RESIDENTIAL VERSUS COMMERCIAL EagleView Technologies 2016 Solar ereport Solar Contractors Technology Investment Trends

7 Contractors that plan to invest in technology in % OF RESIDENTIAL & 71% OF COMMERCIAL Solar Contractors Technology Investment Trends

8 Due to the recently passed ITC, it is predicted that solar industry revenue will increase at an average annual rate of 6.5 percent to $4.4 billion in (Source: IBIS World Solar Industry Report) Understanding the rapid growth rate and opportunity, certain behaviors are impacted and one of those is the investment in technology. In order to remain competitive and improve business processes, technology investment is a must in any industry. Solar industry growth is predicted to grow 6.5% annually or $4.4 BILLION in the next 5 years How many solar industry professionals are planning on investing in technology in 2016? According to those surveyed, on average 75 percent of residential and commercial (79 percent and 71 percent respectively) solar professionals stated that they are planning on investing in technology in the coming year. With that knowledge it is evident that in the solar industry, remaining competitive with peers in 2016 will require investing in technology. Ulama, D. (march 2016). IBISWorld Industry Report 22111e Solar Power in the US. IBIS World Inc. Retrieved from Solar Contractors Technology Investment Trends

9 CHAPTER 2 TECHNOLOGY BUDGET ALLOCATIONS IN 2016 EagleView Technologies 2016 Solar ereport Solar Contractors Technology Investment Trends

10 Technology Budget Allocations in 2016 Respondents to the survey were asked to project how deeply they intended to invest in technology in the coming year as a percentage of total revenue. Residential 62 percent of all residential stated that they will be investing over 2 percent of total revenue in technology 23 percent of all residential stated that they will be investing over 5 percent of total revenue in technology Commercial 55 percent of all commercial stated that they will be investing over 2 percent of total revenue in technology 19 percent of all commercial stated that they will be investing over 5 percent of total revenue in technology 62%of all residential solar contractors will be investing over 2% of total revenue in technology Solar Contractors Technology Investment Trends

11 With these insights, professionals not investing at least 2 percent of total revenue in technology may want to re-evaluate budgets to ensure that the proper capital allocations are planned in order to remain competitive. Solar Contractors Technology Investment Trends

12 CHAPTER 3 TECHNOLOGY INVESTMENTS BY COMPANY SIZE EagleView Technologies 2016 Solar ereport Solar Contractors Technology Investment Trends

13 In both residential and commercial markets, the majority of the companies planning to invest in technology in 2016 are relatively smaller sized companies. This may be driven by demand of communities served, wanting to take advantage of the government s initiatives, and the reduction in costs of photovoltaic (PV) panels. Solar Contractors Technology Investment Trends

14 Of the residential solar contractors surveyed, we discovered the following: 87 percent of residential companies that plan to invest in technology perform an average of 50 installs or fewer per month. 63 percent of residential companies that plan to invest in technology perform 10 installs or fewer per month. Of the commercial solar contractors surveyed, we discovered the following: 84 percent of commercial companies that plan to invest in technology perform an average of 50 installs or fewer per month. 71 percent of commercial companies that plan to invest in technology perform 10 installs or fewer per month. 63% of residential companies that plan to invest in technology perform 10 installs or fewer per month Solar Contractors Technology Investment Trends

15 CHAPTER 4 TECHNOLOGY INVESTMENTS BY REGION EagleView Technologies 2016 Solar ereport Solar Contractors Technology Investment Trends

16 50%of contractors investing in technology will be doing so in the Northeast and the Southwest Solar Contractors Technology Investment Trends

17 Indications from survey respondents point toward the Northeast and Southwest as the primary regions of the country where technology investments will be made. Residential and commercial contractors stated that 48 percent and 51 percent respectively, will be invested in the Northeast and Southwest. These directional indications of where technology investment will be occurring in 2016 fall in line with reports from GTM Research in which they stated, The U.S. solar market remains concentrated in key states, with the top ten states accounting for 87 percent of installed capacity in 2015, said Shayle Kann, Senior Vice President of GTM Research. But growth has been widespread, and 24 of the 35 states that we track individually saw market growth in accounted for 87 percent of installed capacity 10states in 2015 U.S. solar market breaks record by installing 7.3 GW of PV in (n.d.). Retrieved March 10, 2016, from Solar Contractors Technology Investment Trends

18 CHAPTER 5 TECHNOLOGY INVESTMENT BY TYPE EagleView Technologies 2016 Solar ereport Solar Contractors Technology Investment Trends

19 Reasons for Investing in Technology in % OF RESIDENTIAL 53% & OF COMMERCIAL contractors say detailed design & lead generation Solar Contractors Technology Investment Trends

20 Reasons for Investing in Technology in 2016 More than 75 percent of all solar contractors plan to invest over 2 percent of revenue in technology, but where will they invest? What is the process that they are trying to improve or what problem are they trying to fix? The residential and commercial contractor respondents to the survey, 44 percent and 53 percent respectively, stated that the reason for investing in technology was primarily to meet two needs: lead generation and detailed design. Residential solar contractors said they plan to invest in technology for the following reasons: Lead Generation 23 percent Detailed Design 21 percent Proposal 19 percent Commercial solar contractors said they plan to invest in technology for the following reasons: Detailed Design 29 percent Lead Generation 24 percent Ongoing Maintenance and Monitoring 20 percent Solar Contractors Technology Investment Trends