![]() Q5: On Customer Bonding – How are you taking care of existing customers?Ī: We recently launched a dealership and referral program, and many of the participants are our existing customers. But as banks gain more familiarity with the asset class, financing solar projects in the Philippines should become simpler and more cost-effective, as has been the case in developed markets. We are currently financing our projects in partnership with local banks, and interest expense is now an even larger component of a project’s cost than the solar panels themselves. Enabling consumers to avail of solar at zero upfront cost is thus essential for mainstream adoption, especially now that a consumer saves more from a solar system than its monthly amortization, meaning solar makes sense and is accessible to every Filipino. ![]() Given your expansion plan, why do you think banks, which usually offer higher rates, would be the best way to go?Ī: Consumers are accustomed to paying for electricity over time, instead of buying their next 25 years worth of electricity all at once, which is what paying for solar panels effectively is. But banks require a certain asset to liability ratio. Q4: On Revenue Model – You intend to generate a lock-in revenue model based on the bank financing your equipments. These may consist of “Building Integrated Photovoltaics” (BIPV), like Tesla’s newly introduced solar roof tiles, and solar micro-grids which would enable entire communities to go solar together. Selling and installing rooftop solar has inherent challenges to scale, and needs more revolutionary steps forward to reach 100% of households. Yet less than 1% of Filipino rooftops have solar as of today, and even in the world’s most advanced solar markets, no more than 20% of households have switched to solar, even if all would benefit from doing so. Software also enables our engineers and salespeople to serve more customers. How are you addressing this in the pre-sale portion of your distribution?Ī: Henry Ford said, “Any customer can have a car painted any color that he wants, so long as it is black.” Standardizing products and simplifying sales processes is key to scaling solar to every rooftop. There are also a lot of time and efforts wasted on proposals that are not turned into contracts. Potential customers don’t get a proposal overnight because of the need to climb and measure rooftops. Q3: On Channel – There are a lot of inefficiencies in marketing solar services. By bringing reliable 24/7 power to certain provinces for the first time in history, we address a great need and enter markets where there is less or no competition, as the private sector traditionally neglects provinces in favor of metropolitan areas. That said, we believe solar’s strongest value proposition is in provinces that suffer daily brownouts or lack electricity, and instead of merely savings, we offer a whole new experience: the benefits of electricity itself. By vertically integrating manufacturing, construction, development, and operations, we generate solar cheaper than any other power source in the Philippines, lowering the cost of electricity and contributing to economic development. What competitive differentiation or one-word would you want to own before more competition comes in?Ī: A Meralco executive once told me, “Only three things matter in our selecting power suppliers: Price, price, and price.” While other factors are also important, electricity is ultimately a commodity that consumers want at the lowest cost. Q2: On Value Proposition – You offer no upfront investment and guaranteed cost savings vs. ![]() That said, we believe in the importance of participating in diverse market segments, because residential will surpass commercial in scale in the coming years, and meanwhile, operations in each segment help scale and complement each other. Installing solar on mall rooftops also raises consumer awareness, and as there are only a few large rooftops, there’s more urgency to move early into commercial. Q1: On Target Market – What made you choose the commercial / industrial segment over the residential segment first?Ī: Commercial projects have economies of scale, which help lower costs for residential projects. He shares the business model and strategy of Solar Philippines Leandro Leviste is the President and CEO of Solar Philippines, a company he founded in 2013 and is today’s largest solar company in Southeast Asia’s.
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