Some small solar companies are finding it difficult to thrive in the Valley’s solar industry — but they’re not giving up on the future. One company owner is investing extra time and money into his solar business in hopes of surviving and eventually growing. Another says his solar company isn’t his full-time business. “The free quotes we give include a lot of extra information that you don’t normally get in a quote,” said Bruce Hatchett, owner of Tujunga-based Energy Options, which mostly provides solar installations for homeowners. Hatchett said he’s hoping that the added service eventually pays off. So far, he said, business hasn’t changed much since last year. John Novak, owner of R.D. Solar Electrical Systems, says business has been more challenging than he initially expected. “I may get about 60 jobs, but at the end of the day, clients are usually not that serious about solar once they find out how expensive it can be,” Novak said. To offset the lackluster business at his Simi Valley solar panel installation company, Novak also runs a general contracting business on the side. “If it (the solar installation business) was a full-time business, I think we’d have a very hard time,” Novak said. Tad Rose, owner of California Sun Systems in Glendale, says despite the ongoing challenges associated with selling solar energy products, business is picking up speed. The company provides solar electric systems for homes and businesses, though about 80 percent of its customers are homeowners. “Compared to last year, we have signed contracts for three times what we did,” Rose said. Having lower bids and a good reputation has helped the business to grow, he added. Company owners say business in the Valley’s solar industry could improve if the state reinstated its Solar Incentive Program. The program was designed to reduce the costs associated with installing solar panels in homes and businesses, according to the Los Angeles Department of Water and Power system officials. In April, the LADWP ceased its rebate program for 90 days due to the increased amount of applicants for the program. “There isn’t stability as far as the future goes,” Rose said, referring to the availability of incentives for customers. It’s also difficult for owners of small solar companies to receive financial support for their business, Hatchett said, noting he works with 14 different lenders. Business owners may have to assume more risk in order to grow operations. Energy Options has taken three steps to improve business, Hatchett said. “We have invented our own tracking system, we risk more with initial proposing, and we spend a huge amount of time in getting lots of financing options,” Hatchett said. Business owners such as Hatchett and Rose are optimistic the solar industry will grow in the next five years. “It’s a tough business with a lot of challenges, but I do believe the future is bright,” said Rose.
Small Firms Work to Survive, Thrive in Valley Solar Business
