Eric Carlson
Many state policies create a friendly environment for solar businesses, but what happens when laws change in ways that are not helpful? How do you keep your company from suffering financially?
Hawaiian contractor RevoluSun found itself in this situation after Hawaii’s utility changed its net-metering policy. The contractor realized its best business move was to expand its offering and provide a holistic approach to energy generation, consumption behavior, energy storage and interactive technology throughout the home.
Hawaii’s changing solar policy
Today, Hawaii has installed roughly one solar panel (312 W) for each resident—seven times higher than the national average, according to a recent report by Environment America. Hawaii’s aggressive 100% renewable energy goal is in part a recognition of the island state’s vulnerability as an isolated landmass.
Until recently, Hawaii had a successful net energy metering (NEM) program. The program, like others across the country, credits homeowners at the full retail rate price for the rooftop solar energy fed into the utility’s electric grid. This NEM program incentivized the growth of an extensive solar industry for seven years.
In October 2015, the Hawaii Public Utilities Commission (PUC) abruptly terminated the NEM program and unveiled two new residential solar interconnection programs. According to the PUC filing, the change was “necessary to ensure a smooth transition to a re-designed market-based structure for distributed resources in Hawaii.”
But the new programs drastically cut the value of exported solar power by roughly half of what the original NEM program offered, forcing the solar industry and consumers to quickly adapt to dramatically different and less predictable rules.
Developing a “Plan B” from strengths and values
RevoluSun realized that a changing solar landscape meant the firm needed to evolve, so it looked inward to chart its course ahead. RevoluSun is in the solar business because it understands how critical renewable energy development and improved efficiency are to addressing the threat of climate change. The company’s owners also have an extensive background in residential construction and home energy services. RevoluSun knew its team’s strengths and values would allow it to gain lifelong customers by offering other products and services. So in 2014, RevoluSun launched its Smart Home line of products, drawing on its experience with more than 6,000 customers to determine what homes needed most and what could be installed without PUC or utility approval.
RevoluSun’s Smart Home line initially included products for advanced sustainable home technology, such as EV charging stations, solar water heaters, energy-efficient house fans and lighting, and even security solutions. The company is now expanding to traditional residential construction offerings, such as roofing and air conditioning.
Also, Hawaii is currently facing a 66,000 housing unit shortage and recently legislation was passed to allow homeowners to build Accessory Dwelling Units (ADU’s) to help fill it. The ADU’s can range from 400 to 800 sq ft. depending on the lot size. RevoluSun is unveiling a line of pre-designed units, that can be added to a existing home for either rental income or used as a “mother in-law” suites.
In 2015, RevoluSun designed and moved into a showroom where a curated collection of Smart Home products is on display. The space offers a one-stop shop and gathering place for eco-conscious homeowners, architects and residential home developers to meet and collaborate, while those interested in solar can also learn more about the latest in PV solar options and financing.
RevoluSun’s “Innovation Center” is a showroom where both homeowners and design professionals can explore all the products and services the company.
Results of diversifying
RevoluSun’s old and new customers have enthusiastically embraced its smart home vision. By offering Smart Home products, RevoluSun has cast a larger net for customers and, in addition to growth in Smart Home products sales, it has also seen the benefit to its core PV business. RevoluSun’s PV sales more than doubled in 2015. The company attributes much of that success to its reimagined approach to PV and Smart Home integration. The products not only save clients money, but also make their homes a healthier, more attractive and comfortable places to live.
Traffic in RevoluSun’s showroom continues to grow month after month. The space is now seen as a valuable resource for the local design community. Architects and contractors send their clients to the showroom to see all the products offered.
One of the additional products RevoluSun offers is an EV charging station for home installation.
A growing trend for success
Having a more holistic approach to the home’s energy needs is something most at RevoluSun always wanted to do. The pressure to diversify its business pushed it to pursue this passion. Laying out the plan with the team for a more robust product offering has built a greater level of security for RevoluSun employees. It also provides more avenues to grow into new positions as the business continues to evolve. In addition, RevoluSun hired more specialists to help meet the demand for new projects.
RevoluSun represents the evolution of the solar industry into a service provider that offers much more than just energy production. PV as a specialization was a result of a nascent industry trying to keep up with pent-up demand. As PV becomes increasingly common for households, it will become just another product in a broader home improvement and building portfolio geared toward harnessing renewable energy and reducing energy usage wherever and whenever possible for every element of the home.
By: Eric Carlson, Chief Innovation Officer of RevoluSun