What’s Wrong With The Solar Industry And Why Source Energy Group Is Fixing It

The solar industry doesn't have a technology problem. It has a trust problem. Too many homeowners are sold a cheap promise, pushed to pay a big deposit, handed over to subcontractors they've never met, and then left on their own when something stops working. I'm Jason. I'm Cam. We're the owners of Source Energy Group, where we've designed and installed countless solar and battery systems for Australian homeowners. In this episode, we're joined by our licenses and business partners, Tim from New South Wales and Luke from North Queensland to talk openly about what's broken in the industry, why good homeowners keep getting burned, and exactly how we're building a company that does solar and battery differently from the first conversation through to long-term support.

Cheers for coming back everyone. Here with Jace and Luke and from North Queensland and then Timbo from down New South Wales going to be talking about what's exactly wrong with the solar industry and u all solar and battery industry air industry and why we're trying to fix it. Solar and battery. Solar and battery and battery. Solar and battery SMB. SMB. Um or is it battery and solar? Uh yeah. So the biggest thing first chicken I Yeah. Well, the chicken um so we've we've established in plenty of episodes before or pretty much this whole product but or this whole sorry subject.

Uh but uh we haven't really covered directly on it. Um like a big big reason why we are here to fix the solar industry I suppose solar and battery industry. M. So what's what's the biggest thing you guys can see from where you guys are from that that that you're seeing go wrong? Solar company, sales companies going out there and just selling for bottom dollar and then expecting installers to come across and pretty much cop on the chin. How long's that been happening for?

Years. Many years. For years. Too many years. Three, four, five, 10. Yeah. Yeah. It's just been like something that hasn't been made too public. um other than like well I guess your Facebook pages and stuff like crap solar and that sort of stuff but yeah no one's really put it out there to try and try and fix it. I mean they either know about it and they just run with it because they know they can make money with it. Yep. 100% what it is. That's pretty much what's happening.

Squeeze every dollar out of that deal to keep rolling. And like don't get me wrong, we're here to make money but as a business but you do that be sustainable. You can do that in a way where the customers clients are actually getting what they should be getting and receiving what they're they pay for% 100%. Um and if you can do that well then it's a win-win situation you know. Yeah cuz it goes from one end like people expect something for nothing which that's not going to happen but sustainable for everyone.

Yeah. Yeah. Most definitely. I think showing the difference between oh someone answered you know what we're trying to achieve we need some help to I cannot get in contact with you. Yeah where is this company gone? Yeah most definitely. Yeah. So I guess the whole sales company thing it's like we know what that means and we think that when we just say it I guess everyone does but end of the day to the um customers and clients and people out there looking into solar and battery to them everyone is a solar and battery company are they?

They're not going, "Oh, that's a sales company." Whereas us in the industry, we understand the difference between a sales company and a solar and battery company that does sales installs and support. Yeah. And not just one piece of the puzzle and makes it up with someone else. I guess I guess to break that down, it does take sales in any business to find customers, doesn't it? Marketing and sales in any business, not just solar and battering. It does take the admin team and the I guess it's the fulfillment team in any business, isn't it?

So, we're not just talking solar and battery here, but you need someone to fulfill something, but in our industry, that is the administration and the installers, isn't it? Yeah. And then any business, you need some kind of support system for to look after the clients. And that comes back to our admin support team and part of the installers as well, isn't it? Nice. Definitely. So just about every business is broken up into those three categories. So I guess when you say sales companies and what we're getting at is in this industry there are companies that are purely just a sales company.

They know how to market and sell. So they'll go out and just sell whatever the hell they can and then they find someone else to do the other parts, don't they? Yeah. Yeah. I think a big drama with that like we say so it's not a drama I suppose but it just depends on what their setup is in the back end. Like they'll they'll push tooth and nail to to sell a job, but do they price it right? Because they are just the sales company. They don't have internal installers.

They'll use any contractor that they can get to say yes to a price list. Y um that is one of my biggest qualms with the industry, I suppose, is that it's if they're just pushing an installer to do a price list and then every sales company is just pushing an installation team to go over and over, this is the price list, this is what it is, and that becomes the industry standard. But it's a bottom dollar price list. No one can afford to install at it. So are they just going to lower their standard just to be able to get their dollar over the line?

Yeah. Well, yeah. Exactly that. And on top of that, most of these companies that are screwing you for the bottom dollar are selling you bottom dollar product. Exactly. Right. They're not selling you the the stuff that you know at the end of the day after sales for them because their product is that Yeah. But their after sales doesn't it's not there. Like if there's any dramas, there's no they're not chasing warranties or anything. And you're as the installer getting the you're the meat in the meat in the sandwich and you're getting jammed with the client going really.

Yeah, that too. What I was promised. Exactly. We've seen that firsthand ourselves. Exactly. Right. What what happens in um that scenario like when you become the meat in the sandwich and they're offering a bottom dollar price list, bottom dollar product, something goes wrong for the end consumer and then the first person they chase is the person who sold them the job. Y but they'll go to the sales company who will then put it straight off to the installer.

Yep. Passing the blame. Installer like, "Well, I didn't sell it to you. Yeah. Well, we've done what we can do with what we've been given." Exactly. Right. Contracted to do a job and the job was completed. This isn't what the sales rep told us we'd get. But if that if that price list goes lower and lower and lower and it's a race to the bottom on like say the way I sort of see it is the the sales company don't really lower their price but they lower the installers price that they're getting paid.

Yeah. Company pushes for whatever they can get at whatever price and then they've got to find someone to install it and then they're usually looking for the person that's going to install it for the cheapest. Yeah. Yeah. And that person installing for the cheapest, if their price is going lower and lower and lower, what are they going to do? They're going to try and find ways to do it cheaper. Shortcuts pretty much. Either shortcuts or products or plenty of brands out there you can name.

It's not even that. It kind of it's a beast that just gets worse and worse if it if it's left to its own device. Cuz like I say all the time, the installers themselves aren't going waking up and going, I'm going to go work and do a job today. Yeah. They're generally waking up and going, you know, they're generally wanting to do a good job. But what happens is if all these sales companies are selling systems and then going, "Oh, we're only going to pay you this to install." Becomes a point in time where if they don't do any work, they're just going to have to accept that rate.

Exactly. And then if they're start working on this rate, they got to start doing two jobs a day instead of one job a day. And then then that's where the rushing comes and the shortcuts come and the bad work. And that's actually what's given the industry a bad name. Y so many electricians that are qualified electricians could become a SAA electrician but they just don't want it because of the industry and it's also liability but also it's not just about the price the job sorry it's it's about the fact of that sales company depending on how they sell it and if they've actually pre-planned it and not done site visits and that this installer might get there on the bottom dollar and half the install's back to front compared to what it was sold as and that's nine times out of 10 you get that on those cheap companies because you get the client going, "Oh, well that's not how it was meant to be." Well, that's because we've had to come here and change it to what happens in that scenario like they'll turn around and walk you away because then the customer doesn't want to go ahead.

Yep. Sales company just looks at you and go, "Oh, well, next one. They don't care like in their head. It's done and dusted." rolls downhill. Or they'll they'll go get the next bloke to do it. That's what they do. I just if you don't agree to something or I've had it in the past, they'll just go, "All right, sweet. Don't worry about it." And they'll go get another install. 6 months later, drive past that house. So, exact same system. Exactly what we're talking about here.

Sales companies use it as a tactic to get you to sign up to them. And they say, "We use in-house installers cuz subcontractors are are dodgy." As I keep saying, it's the subcontractor doesn't wake up and say, "I want to go to work for a job." Because they all generally just want to go and do a good job and get paid. Everyone's got to get their build. They don't give them the chance based on the conditions and and the prices and everything like that. What's the way we fix it?

I suppose like what's what's the way we're trying to fix it? I think uh one thing look we and we've all probably been through it is you know that constant battle between sales team and installers. It's couldn't count how many times I've come to site and obviously we have their our accreditation and we know how stuff has to be done properly. So for us to get there, okay, look, this won't work, but we can make this work. It might be a decrease in their system size or whatever, change a location.

We're doing what's right, but we're the one that's coping the flock. Like we're we always do, you know, that like I said before, oh, but the sales rep, well, I'm sorry, but no, it's not happening. All right, this is how it has to be. And you know, it makes where it makes us look bad even though we're trying to do the right thing. So, I really like our structure where we've dealt with that. We have a really good communication system, you know, and it's as simple as a WhatsApp group between our reps and our, you know, installers and our installers where when the customers are in an appointment, they can flick over a message, what do you think of this?

Can we get this done? like finalizing and knowing exactly what is going to go on and what is going to happen at the job just gives the customer so much more ease. Yeah. If we need like I'm happy to go do a side check. I want to I'd love to go meet the people that we're installing for. I love having a good chat, have a laugh, like and they get to meet us. They can see that we're just trying to be professional. So, builds trust. It builds trust. Exactly. Builds trust.

Good rapport with the clients and Exactly. and it builds hopefully, you know, a tree for other customers to come on board that we can help out. So, I think we're doing that really well. Yeah, I agree with that. I remember when we met just having a bit of a discussion and everything like that. Well, this is cute. Um, it was four years. It was a full moon. No, you know, having a chat around, you know, you know, you breaking out and sort of going out on your own, doing your own business and everything like that.

M um I won't go into too much detail, but just a couple little things. I think that was one of them what you just brought up, how the communication between sales and install was there and you straight away just like oh that's never happened. Yeah. And it's just it's like well it should. Yeah. That's the difference in a team. Yeah% that's it. That's that's the biggest stigma and I think when we all kicked this off was one of the biggest reasons we wanted to do this is the take that separation away between installations and sales.

That's that's the biggest thing that that's been a divide. You and I spoke about that ages ago. You and I bang on about for years. Y it's that stigma between sales and installation where they need to be separate. I don't know why it ever existed. Every business should have a north star, you know, something to guide them when Ours is quite simple. It's like if a camp simple. He's actually wearing jeans today. What the hell? They're like, "Ours is quite simple." And we even had it today when we were sitting down in brekie.

Yep. Braden said the boys on site wanted to do something and my response was, "Well, is that the best thing for the customer?" 100%. As simple as that. Yep. That's all it comes back to. Anything comes up. All right. Is that the best solution for the customer? Everyone thinks about it. If it is, well, then that's what we do. Y doesn't matter if it's more work for us or if it costs us more. If we've committed to doing it and something comes up, it's going to change the outcome.

That's what we're going to do. 100%. Down the same line with the staff like the employees and anyone in the office, the sales team, anything like that. It's not our job to make our day easier. It's our job to make their day easier. If it makes takes us five more minutes, you just said that. I thought you were saying that about the customers. I'm joking. No, I'm just saying. No, you're right. I'm just stirring him up. Oh Old chef over here. The North Star. Were you talking about the customers?

Yeah. Yeah. Throwing you off. Yeah. Yeah. Long story short. Yeah. Same. Smooth process. Yeah. Smooth process. 100%. Yeah. You get the old flow chart. you get hiccups like you know is what you find when you start crawling through a roof, you know. Yeah, exactly. But it's open. It's the it's the teamwork to lay the foundation for like a smooth install, you know, and that's what we're that's I think we're achieving that. Yeah, agreed. Yep. mentioned it a couple times before, but we've seen a few people start changing the way they do their ads and whatnot on on social media and yeah, they approach clients and um yeah, yeah, they sort of brandish their own company and what they're putting out there.

Hopefully, they are actually putting out that exact same product and situation they say they are, but yeah, seen seen a bit of advertising getting out there on how a bit of shift in the industry. Yeah, that's a that feels great to me. Not not saying we're taking all the all the props to it, but Yeah. No, it's definitely Yes, we're seeing firstand Yeah. Um, you know, we done another episode with sort of red flags and there was one of those red flags was a 50% deposit.

And in another episode, we also had one of our reps on here who just come over and I talked about how she'd stepped in a pile of in her journey through solar and battery. Yes. Unfortunately, it was a big pile of that that pile of showed its face again and it's to do with the 50% deposit thing. So someone that she was within the past and this was over 12 months ago that company still hasn't committed to installs that they took 50% deposit. How can you sleep at night?

Seriously. Yeah. It's just grubby. 50% deposit. Yeah. Obviously. Yeah. That's paying that power bill. That's crazy. Still installed. So yeah, right. Right. So those customers are started again, but we're doing it again. Well, that's Yeah. So we're only doing 48% deposit. I can't believe it. That's It's if it's on finance, there's no deposit whatsoever. Z upfront. Um if someone's paying outright, look, there is a 10% deposit and that's got nothing to do with the dollar value.

It's just like that's just showing commitment like any business transaction. That's actually a legal standard. So you sign a contract and a contract with an exchange of money is a secured signed legal contract. Yep. Yeah. Holy demon. Obviously plenty of things wrong with the industry. The the ironic thing just about those 50% deposits. The way they got people to pay that 50% deposit was to secure an That's what 2032 when the Olympics is on. Yeah. Far out. You probably got it in fine print too that they won't match the rebate.

Yeah. If the rebate drop. I was thinking I was thinking that too. The push, you know, the push on us. Yeah. Get it done. Yeah. And no matter what, get it done. Yeah. Look, I was under that push for the single day install type of thing. No matter how big, you know, two a day. Yeah. Look, we're doing it. It helps in summer because you got more daylight, but it's it takes its toll and you know I know that you you get so focused in like I got to get it done. Got to get it done and you can easily miss stuff.

It you know regardless I think regardless of how good you are. So it's nice to like for us to just take that pressure off our installer because we don't want to fogg them to death you know. We we we want the best possible outcome. It's hard enough as it is. Yeah. Oh yeah. It's I think a lot of Sparkies stay away from solar cuz they know it's you know hard work like Sparky's we don't like that. Not I do but yeah like it's nice to be able to say look we're going to take two days to do this.

You know we're getting it right because that's how it should be done. If you need to take two days take two days you know and the guys don't feel under pressure. They're getting paid like you know our employees are getting what they you know paid well what they deserved they and what they deserve. So yeah it's the the push the push the push just ultimately leads to bad installs things missed. So that's it. That's where it comes from all the dodgy work.

Again it's not the guys are wanting to go to work and do a dodgy job. It's the pressure that gets put on them. Yeah. I look I feel the pressure myself cuz I got five kids. I got I got mouths to feed. So you know you I know I know what it take like I know what I need to come in each week. So I have a hard time saying no to a job but it's now you also that's where you know we are taking the right step in just easing up. Yep. Yeah. You know take the time do it right.

The way we look at it is you know look after the boys doing the work on the job. They're going to look after the client. Yeah. Everyone wins. Um, so if you are an installer out there getting point that word getting pushed and getting vlogged and everything like that. Yeah. Jump on our website, submit an inquiry, get in line cuz we do have a lineup. Yeah. But there will be a spot for you if you're good at what you do. Newcastle, please. Okay. Castle Queensland.

Let's go. Yeah. Well, on the other bank of that, what's the what's the point going to work and vlogging just to get home and support your family every day when there's a potential you might not if you are rushing and you make a misstep and only takes a small misstep that can just absolutely change everything for the rest of your life. Yeah. And like you want to get home, you want to get home safely, you want to give a good job to a customer, you don't want to burn their ass down.

Like that rushing can lead to one of the boys slipping off the roof. Yep. 100%. A homeowner doesn't want to come home and see someone installing their solar with a broken neck at their front door or something silly like a bloody installer going wrong. Well, me and Braden were talking about the other day, something as simple as and you mentioned it right at the get go and still have through it. But housekeeping, general housekeeping, if if you're rushing, you're not tidying up around your feet, keeping your tools nice and tidy as you go, like packing down your boxes, chuck them in the trailer, that's so much you can slip over.

You can doesn't even have to be working on the roof. It can change your life. But also for the customer, too. Yeah. Like, you know, I get it. We get out a lot of materials and that, but keep it keep it, you know, have a designated location. You know, take take your rail out the front, you know, you know, on a grass area away from Cut it on the Get the apprentice behind the guy that's cutting it. Catching the We want all that medal. Yeah, that's it. Yeah. No, you know, we're doing work on people's pride and joy.

You know, it's their home. That's it. Pumping their money in, hardearned money into their mortgage to provide a place for their family. Yeah. Last thing they want is someone coming to do something that's supposed to be improving it with just having spread from to breakfast and not potentially looking after it, potentially damaging the place. So, yeah. the guys, just the small things, looking after like picking up the rubbish straight away, putting it in the bin, not leaving crap everywhere, you know, little things like that make the big difference.

Um, and it shows through what they do. Like what the customers say about our teams when they're on site is just phenomenal. Yep. Yeah. Yeah. That's the big difference between us and cheap sales companies. Yeah. Yeah. Exactly right. That's about everything I got. Like the big deposits, the Yeah. Oh, it's as I said earlier touched on the materials like the the stuff they actually sell at the end of the day cuz you do end up being the meat or the mince and the sandwich because when say someone sells you a dodgy product or sells you something that's not say what they suppose they sold you like full home backup and it's not partial home backup and you're getting jammed in the middle because that's what they got sold on the day but you get there and you're like hold up no it's partial like you're not getting the full potential out of this to what you've been sold.

Yeah. So sure we could actually wrap it up. The biggest problem with the solar industry is sales companies. Yeah. Hyundai. Yeah. Yeah. In short. Yep. So, ones that pass the buck. Yeah. A sales company that's not actually part of actual install teams. Yeah. Yeah. Pass the buck and don't pay their bills. Simple as that. Yeah. Definitely not saying don't use subcontractors. If you're I guess looking for solar and battery, it's just there's plenty of good companies out there.

We're obviously the best, but at the end of the day, it's make sure you pick someone that is designing it right, designing it for your household. They are actually a team of installers themselves and you're just getting the right thing and they are doing the right thing by you and your household because there's too many out there just doing the quick sale just to get that quick sale and you know move on to the next one. Definitely look at the reviews.

Yeah. Y jump on our website, submit an inquiry or give us a call on the 1-800 number