Is the solar/ renewables market saturated yet

[sbrown2]

As someone who is just going through the registration process(in partnership), I wondered if the renewables market is saturated yet? Or is there still masses of potential in this market. The plumber/builder I am in partnership thinks there will be ongoing potential in this market. I also see a market in compliance and testing as with NAPIT we are looking at assessment for full scope electrical, plumbing, heating, ventialtion and at another assessment air conditioning plus the MCS for heat pumps and solar.
I think my apprehension is because I am currently employed (in manufacturing) and realise, if lucky, I could have to make the jump and leave my job.
Any ideas and views would be appreciated.

Regards

Sbrown2

 

[cookiemonster]

is it saturated? in a word? Yes

 

[Worcester]

Is there room for quality installers, Yes

 

[sbrown2]

Cookiemonster, what brings you to this view. Are all of the trades coming into MCS. My wife works for a large power company and her view is to get accredited and work for the big boys. Im not sure if good money can be made this way.

 

[sbrown2]

To become a quality installer takes time as you have to build up experience. Are there are a lot of rogues in this trade?

 

[TedM]

At the smaller scale (below the massive commercial wind-farm scale of operations) I think you have to recognise four distinct renewables markets:

- retrofit domestic PV 1-4kW
- commercial PV > 4kW
- domestic solar, heat pumps and biomass
- commercial solar, heat pumps and biomass

Each of these segments are affected in different ways by government legislation covering FiTs and RHI.

And the government change their minds about these things on a regular basis - as evidenced by the recent fast-track review for > 50kW PV and the delay in implementing domestic RHI. You need to build-in a risk assessment of those possible changes to any SWOT analysis for your business.

I'm currently working on some figures to predict the domestic PV market over the next 4 years based on present knowledge of government FiTs budget. I'll post details later.

 

[callan]

There are loads of franchisors in this business offering franchises in solar renewable energy. Mipower, caregreen, FPTP to name just a few. Their franchise fees range from 14k to 33k minimum. You're offered an area and, so it seems to me, you hawk their services to potential customers. Every sale you make you take 25%. The franchisor arranges their MCS accredited installer team to do the install.

Some franchisors like Mipower offer you the MCS training so you can set up your own teams on your own area to do the installs and sales commissions.

Am I missing something? Isn't it better to just pay for the MCS course yourself and set up your own solar install service?

Are these solar franchises a scam?

 

[Pablosanchez]

It certainly is extremely competative. Most of the customers that I survey are having 5 or 6 quotes done.

 

[jerriais]

And prices on larger systems are down to about half what they were a year ago meaning much slimmer margins for installers.

 

[sbrown2]

But still good margins non the less. Can I ask how long it takes to prepare the MCS documentation if not already set up as a company?

 

[BDY5600]

I speak to lots of people who are considering it for domestic (they hear I have it) <4kw and not a lot of competition in my area, but it does depend on the government FIT remaining, if it goes so will the installs.

 

[edexlab]

There are loads of franchisors in this business offering franchises in solar renewable energy. Mipower, caregreen, FPTP to name just a few. Their franchise fees range from 14k to 33k minimum. You're offered an area and, so it seems to me, you hawk their services to potential customers. Every sale you make you take 25%. The franchisor arranges their MCS accredited installer team to do the install.

Some franchisors like Mipower offer you the MCS training so you can set up your own teams on your own area to do the installs and sales commissions.

Am I missing something? Isn't it better to just pay for the MCS course yourself and set up your own solar install service?

Are these solar franchises a scam?

In some cases yes

One of the firms you've mentioned have less than 50 installs under their belts a friend of mine from the north enquired and the person on the other end boasted about how they were a hugely experienced installer and a market leader, and when subjected to some scrutiny emphasised that, as they had done so many jobs this would place them in the top 10% in the country whereas I would say that the low number of installs mostly under 10kw would suggest they still have some way to go.
I was amused by this and spoke to a member of their team and asked for a satisfied client list/case studies which did have some genuine sounding customers but funnily enough several had the same surnames as the companies Directors, quick google search revealed this to be true and also some of the Directors claims to be Pv experts were highly dubious
Also they could'nt show a case study over 4 Kw which is no big deal unless you are purporting to be a company of the size and experience they are claiming.

So I would agree be wary about this kind of arrangement, I think there are enough parasites in this industry already

 

[SRE]

But still good margins non the less. Can I ask how long it takes to prepare the MCS documentation if not already set up as a company?

Good margins if you don't keep the documentation up to scratch, don't deliver a bespoke service to customers, invest in training and marketing. A decent living but not a fortune.