Solar adoption gets a boost with Geostellar

Solar adoption gets a boost with Geostellar

Bringing Big Data down to earth isn’t just a figure of speech for Geostellar, a Washington, D.C.-based startup using social media to drive solar adoption. A big part of the $16 million it’s raised is being spent on crunching data and getting it into the hands of homeowners who want to generate their own clean energy.

“We’re all about the home owner,” CEO David Levine said in an interview at SXSW. “The energy industry hasn’t done them any favors. What people need is an advocate, something that works for them.”

What works is a transparent ROI, some marketplace effects and a sliver of competition, which Geostellar describes as the “Glory” piece in its marketing campaign.

For the past three years, Levine’s team has been building out its 3-D models, based on data that’s gathered by the same planes that Google, Apple and Microsoft use to snap pictures of the earth.

By combining its satellite imagery with the latest utility and energy rates, Geostellar uses your ZIP code to render three different snapshots of your home’s energy potential. Playing to different motivations, it displays the results under the categories, “Money,” ”Power” and “Glory," which show electricity savings, electricity output and CO2 emissions, respectively.

Guessing that most of us aren’t experts in the last two -- kilowatt-hours and carbon-dioxide tonnage -- it breaks those benefits into something more digestible, like how many flights or loads of laundry you avoided.

That’s where the social media part kicks in. They’re betting peer pressure will drive much of the adoption as neighbors try to one-up each other. Recent developments from companies like Opower -- which uses social media to encourage energy efficiency in the home and works with with more than 70 utilities -- show the approach is catching on. By liberating customer data around energy usage, behaviors and costs are amplified. In Geostellar’s case, current users can share their information within the application or externally on Facebook and Twitter.

When homeowners are interested enough to get bids, it collects estimates from a large pool of installers and provides a detailed comparison of the proposals. According to Levine, part of the difficulty in assessing a homeowner’s options is the lack of standardized vendor processes and the variance around Solar Renewable Energy Credits.

Some vendors, for example, could have a pricing advantage because its models are based on a different set of assumptions than its competitor: The lower-priced proposal might assume utility rates would rise an average of 7 percent over the 25-year life of the panel, while the other vendor, with worse savings, only assumed a 4 percent rate increase.

By functioning as the broker, Geostellar meshes all the rates and best practices from vendors and delivers an “apple-to-apples” comparison, as Levine describes it.

That helps both parties. Confusion is removed from the bidding process and installers can focus on scaling installation, instead of spending on soft costs associated with things like marketing and customer churn.

In a March research brief, financial services firm Raymond James Financial cited data from the Rocky Mountain Institute that estimated soft costs represent more than 60 percent of total U.S. system costs, and are roughly four times higher than in Germany, despite higher labor prices. That’s a key metric because Geostellar charges installers a transaction fee, one it says is less than a solar installer’s cost to acquire a customer.

“With solar, now that the technology is proven, the industry’s biggest challenge is driving down costs," Raj Prabhu, managing partner at Mercom Capital Group in Austin, Texas, said in a recent Bloomberg article. "The new money is going downstream to help build markets. The industry is now mainstream.”

Image of a solar panel on a house provided by AmericanSolarDirect via Flickr.