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Home Depot offers Solar Power Installations

10 Oct 07 | General Business, Solar Electric

I was walking into a Home Depot the other day and I saw a hand written sign hung from a table that said:

WE DO SOLAR!

Interesting. So I went to there website to see what I could find out about the Home Depot’s solar program. It seems they have some sort of deal with BP Solar to do Photovoltaic installations around the country. This is from their web site:

Now you can reduce or even eliminate your electric bill, increase your home’s value and contribute to a cleaner environment, all at the same time. It’s a great time to join the move to renewable energy resources, and the perfect time to take advantage of the generous government and local utility financial incentives that can cut thousands of dollars off the price. It’s Win – Win, for you and the environment!

At The Home Depot, we’ve teamed with BP Solar to offer you BP Solar Home Solutions – the best in solar power systems and installation. State and utility incentives now available cut thousands of dollars off the cost, making solar power more affordable than ever. For a comprehensive review of available incentives visit the Database of State Incentives for Renewable Energy (DSIRE) website.

I am not sure how I feel about the country’s second largest retailer offering solar installations. Normally, what this would mean is more work for certified installers because the Home Depot does not use it’s own employees to do this work, they contract it out.

The economic implications

On the one hand, it could mean more work for everybody in the solar business. If the Home Depot is involved in solar installations, then it clearly has gone main stream. More and more people will be installing photovoltiacs in the coming years, and that is good for business.

On the other hand, as is the case with so many other things, when large corporations get involved, the little guy often gets hurt the worst. This is because of their often strong arm tactics to drive prices lower so they can make more sales. What I fear will happen is the Home Depot will start dictating what solar installers can charge for an installation. An installer in the Home Depot network would likely get a steady stream of work. Because of this, they will be able to lower prices somewhat. This will lead other installers to lower their price to remain competitive. Next thing you know, the Home Depot installers will be asked to lower their prices again. And so it goes.

These anti competitive actions could put a damper on the photovoltaic installation business, especially for new startups who have higher overhead expenses in the first few years.

Fortunately, I am concentrating on solar thermal installations, so it may not effect me that much. However, it will be something to keep an eye on.

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10 Oct 07 | General Business, Solar Electric
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Reader's Comments

  1. Duane | October 10th, 2007 at 8:48 pm

    Do you recommend the solar installers from Home Depot?

  2. Paul Thurst | October 11th, 2007 at 8:51 am

    Hi Duane,

    Since it is a new program, it is hard to say. I would say find out who the installer is, then ask that person directly for references. If they are reputable, they should have plenty, like any good contractor would.



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