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Sun Volt

Sun Volt Solar

earth, the final frontier

Clean Energy, Clean Environment

We are at a cross roads in human history, we can choose to continue on as we have been, or we can make a change to improve our future and quite possibly the future for several generations to come. We are here to promote energy independence, a better environment, a secure future and a higher return on investment for your hard earned dollar. It is what I believe in, it is why I am in the solar business.

Delinquent Clients

20 May 09 | General Business

This happens to every business. You provide a service and the customer decides not to pay. There are several reasons for this, some of which are predictable and thus can be avoided.  They include:

  1. Sudden loss of income.  During the installation the customer looses his or her job.  This happens and there is almost nothing that can be done about it.  My business model has always relied on down payments, e.g. 1/3 on order, 1/3 on delivery and 1/3 on completion of a job.  Therefore, at any point in a project I am not that far behind.
  2. Inability to pay.  This is completely preventable and can be determined during the early stages of a project.  It is the reason why a contractor should always completely explain the costs and get a signed contract with the customer.  If there are any doubts, as for a different payment plan, e.g. 1/2 on order, 1/4 on delivery and 1/4 with completion of the project.
  3. The customer is an asshole.  This one should be apparent during the sales presentation.  Things to look out for; customer has a past history if stiffing contractors,  suing contractors, seems dishonest, etc.  Sometimes it is nothing more than a bad feeling.  Often times when this happens my schedule suddenly becomes booked solid for the next 6 – 12 months.

It is important to follow up on things.  This means sending out an invoice promptly when payment is expected.  After 30 days, a statement of monies due and a follow up phone call.  Often times, simply asking if they received the invoice and statement, then asking when you could expect a check will suffice.  Sometimes not, however.

In many cases, things can be worked out.  In case number one, often times a payment plan can be put into place.  Generally, these people want to do the right thing, but due to circumstance beyond anyone’s control, they cannot.

In the case where the customer never had the ability to pay, this is the fault of both parties.  The customer is at fault for lying and the contractor is at fault for not checking out his potential customer before starting work.  Chances are that this customer will never have the wherewithal to pay, nor would any legal proceedings be fruitful.  This may end up being a business loss that is written off at the end of the year.  It does happen occasionally, but a credit check can almost eliminate these situations.

If you are dealing with a customer that can clearly pay but for some reason has decided not to, then there is something called a Mechanic’s Lien.  This is a last resort measure and requires a solid paperwork trail.  The requirements vary from state to state, however, in New York, a Mechanic’s Lien must be filed within four months of the completion of work.  What then happens is the property cannot be sold, transferred or refinanced without the lien being satisfied.  Often times, on a new construction, the bank will not release the next draw until the lien is satisfied.  It becomes public record.  I would not go to this well very often, but if you are out a lot of money, it is a way to get payment.

In short, if you want to stay in business, then you need to get paid.

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20 May 09 | General Business | Comments (0)

Business Insurance for the Solar Installer

23 Jul 08 | General Business

For a contractor it is a must. Not only do most town building departments require a valid certificate of insurance to issue a building permit, the state of New York requires it to be an eligible installer for their PV program. It is also necessary to protect you from undue expenses in this highly litigious society we currently have.

It is a drag, but shopping around is necessary to find the best price. Here is what I found:

  1. State Farm, would not even talk to me. I spoke with three of there agents who stated that the field (solar installations) has not been around long enough, and that I had not been in business long enough. I will remember that in a few years when “The good neighbor” comes a calling looking to sell insurance.
  2. Local insurance agencies can vary greatly. Some people know what they are talking about, some do not.
  3. I found the best insurance deal through my bank, the Hudson Valley Federal Credit Union. They have and insurance company called Insurance Agency of the Hudson Valley, who have been very helpful

Even so, I gave them as much information as possible. The issue with solar equipment installation is it encompasses many areas. For example, I may do some light plumbing during a solar hot water system installation, but I am not a plumber. I may also do some electrical work during a PV installation, but I am not an electrician. I may place solar panels on a roof, but I am not a roofer. The generic category that best encompasses all of the many areas a solar installer may work is “Millwright.” From the Bureau of Labor Statics web site:

Millwrights install, replace, dismantle, and repair machinery and heavy equipment used in power generation, including wind power, hydroelectric damns, and natural gas turbines, and in manufacturing plants, construction sites, and mining operations. The development of new technologies requires millwrights to work with new industry-specific and highly complex precision machines. Some of these machines have tolerances smaller than the width of a human hair.

The millwright’s responsibilities begin before a new piece of machinery arrives at the jobsite. Millwrights consult with production managers, industrial engineers, and others to determine the optimal placement of the machine in the plant. Some equipment, such as a metal forging press, is so heavy that it must be placed on a new foundation. Millwrights either prepare the foundation themselves or supervise its construction. As a result, they must know how to read blueprints and to work with a variety of building materials.

When the new machine arrives, millwrights unload, inspect, and move the equipment into position. To lift and move light machinery, millwrights use rigging and hoisting devices, such as pulleys and cables. With heavier equipment, they may use hydraulic-lift trucks or cranes. Lifting such heavy equipment requires millwrights to understand the load properties of cables, ropes, hoists, and cranes.

While that is not a dead on description, it is pretty close.

As far as limits go, pretty standard:

  • $1,000,000 each occurrence
  • $100,000 rented property damage
  • $5,000 medical expenses any one person
  • $1,000,000 Personal injury
  • $2,000,000 general aggregate
  • $1,000,000 products

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23 Jul 08 | General Business | Comments (0)

To sell on line or not to sell on line

17 Oct 07 | General Business

I am currently debating on whether or not to have an online renewable energy store.  It seems like quite a bit of work to set up, and there would also be some liability issues associated with retail sales of renewable energy products, especially wind equipment.

On the other hand, it may be a good side income stream, particularly if I can get the manufactures/distributors to drop ship directly to the customer (that way I am not actually handling the merchandise).

There are currently several retail online renewable energy stores.  When I compare there online prices to the wholesale prices I am getting from distributors, I can see about a 8-10 percent markup.  Not too bad considering that there is minimal overhead.

The other downside I can see would be customer returns and restocking.  Also, I have seen quite a few shady characters in my life.  There are likely more than a handful that would likely try create some scam or something.

The other question is how much time would be taken up with answering customer questions?  Obviously, the online sales would be mostly to do it yourselfer’s.  This could mean that they would expect someone to tell them step by step on how to do a solar installation.  They may also install the equipment wrong, damage it, et cetera, then expect a refund.
Likely I will have a product feature section, which introduces the equipment to potential customers, but not necessarily sell directly to the public unless I am going to install it as well.  I think that is the best compromise.

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17 Oct 07 | General Business | Comments (0)

Dealer Opportunities

12 Sep 07 | Business administration, Solar Electric, Solar Hot Water, wind power

I have been looking around at solar product manufacturer’s web sites and noticed that many of them have “dealer opportunities” links. This is also true of many online solar suppliers as well. I find this interesting because if you can become an equipment retailer, you have another good income stream for your solar business. Here is a brief list of solar manufacturer’s and online solar distributors which have dealer opportunities:

  1. Alternative Energy Technologies (AET), Manufacture of solar collectors, solar water storage tanks and parts.
  2. AEE solar, photovoltaics, microhydro, small wind
  3. SunWize, photovoltaices, small wind
  4. Evergreen Solar, Photovoltaic manufacture
  5. Solar Depot, Photovoltaics
  6. Bergey Windpower Co, Small wind
  7. Southwest Windpower, Small wind

I am sure that I missed a few others that are floating around. A good google search should turn up more if you are interested.

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12 Sep 07 | Business administration, Solar Electric, Solar Hot Water, wind power | Comments (0)