GrowthThe solar industry is growing, and fast. In the 5-year span from 2007 to 2012, solar installations increased by 1400% according to votesolar.org, and the U.S. broke the 20GW barrier for installed PV at the end of last year. The growth rate is largely due to the cost to install solar having dropped by more than 73% since 2006 according to SEIA. This is great news for consumers who are able to save money by going solar, and our quest to find solutions to climate change.

In any growth industry, a few giants emerge, and the solar industry is no exception. In terms of installation work, our industry primarily consists of smaller, local solar installers, who complete a limited number of solar installations a year. But, the majority of installations occurring today are being done by a few national entities that have vertically integrated services ranging from installation, to sales and marketing, engineering, project financing, and asset management.. This tips economies of scale, making it hard for those smaller independently owned solar installers to compete.

This is where a cooperative comes into play. A cooperative allows its membeDollarrs to obtain the scale and knowledge base of a national installer, while maintaining control of their own company. For example, in the area of purchasing power, our 34 member owners installed 40MW of residential systems in 2014, equivalent to the 3rd largest residential installer in the country. This means Amicus is able to negotiate direct with manufacturers for better pricing, whereas an individual solar installer, with much smaller purchases, has to rely on distributors, which includes an upcharge.

Not only are lower prices negotiated by a cooperative, but rebates for reaching certain levels also apply. With the member owners pooling their purchases, these incentive levels are more likely to be reached. This is essentially putting money back in the pockets of the member owners.

Being part of a cooperative also allows the members to stay true to their individual missions. In many industries, large-scale producers sacrifice quality for quantity in order to meet the demands of a market that desires cheaper, plentiful goods. Due to the pace of work, sometimes quality of workmanship and customer service can be lost. But in a cooperative, the smaller, locally owned, and independently run companies can maintain their beliefs in quality over quantity and an environment where their customers, employees, and all stakeholders can be prioritized.. Small installers can better differentiate themselves because they go to the same grocery store, have kids on your kids’ baseball team, etc. They know the local gossip. In the construction trades, trust and knowing someone personally and knowing they will be accountable to you and the community is a big deal.

MembershipA cooperative is a group of people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically. So, the actions of the cooperative are determined by the will of the majority of its members. Amicus is supporting independent, family-owned businesses that play a vital role in our nation’s economy.  Not large corporations, but those with an average of 15 years experience running successful businesses. Almost all of our members did not get into this business to simply make money.  Propagating solar energy is a personal mission for them and a hallmark of their lives.

In this case, the member owners of Amicus Solar Cooperative have a say about which manufacturers to negotiate with and purchase from. They are not limited by the brands that their local distributors carry, nor do they need to carry accounts with multiple distributors in order to get the products they need. In a cooperative purchasing is centralized. Amicus Solar Cooperative offers its member companies discounted pricing on many of the major brands in the solar industry, based on what the members themselves decided was desirable.

Price breaks are not the only advantage to joining a cooperative. Other business relationships can be forged through the cooperative that are less likely for an individual member. For example, helping support working capital. Cash and related funds are the lifeblood of any firm. In an industry with higher priced goods, this is even more evident. The ability to secure financing for major purchases to support the needs of the business for successful performance is critical. In this area, Amicus Solar Cooperative provides long-term credit to help our members finance large purchases of solar panels and inverters.

Also, acting as a whole, Amicus Solar Cooperative has been able to partner with more competitive project financing options for the homeowner. This makes offering financing for solar installation more affordable for both our member owners and the consumer, which fulfills one of the primary missions of our members—increasing renewable energy resources and thereby reducing environmental impact.

ConnectAnd then there’s the true nature of the cooperative. By its definition a cooperative is about sharing. Amicus Solar Cooperative’s member owners join together by sharing experiences on topics including design and engineering or sales and marketing. This allows the individual members to troubleshoot problem issues and improve their businesses by learning through their peers.

Sharing best practices on successful operations of a solar installation business allows our member owners to form a community of like-minded business leaders; leaders that can initiate change in the world.

All these factors: achieving scale to receive industry best pricing on products and project financing; receiving patronage dividends based on purchases; maintaining a firm as a strong independent company in the face of national competition; working together to solve individual member business challenges; sharing best practices; and becoming part of a special community of like-minded business leaders are why a cooperative is so important to the solar industry.