How cutting soft costs just might help solar companies build a renewable future (and boost ROI in the process)
By Mark Fisher, VP Marketing, Paystand and Jan Rippingale, CEO, Blu Banyan
The effects of climate change are undeniable.
In 2012 alone, the US suffered a devastating loss of $20 billion, making it one of the costliest droughts in history. But such cases are only the beginning: in 2020, the Earth
surface temperature was calculated at approximately 0.98 degrees Celsius warmer than the 20th century average, and now we are in the midst of what some call the most historic drought in the west – which means we must prepare for the inevitable destruction that will follow.
But there is hope: Renewables are an important way to combat the already dire effects of climate change. If we ever hope to reduce CO2 emissions, we will have to rely on developments in this sector to drive the widespread use of alternative fuels. The fact is, however, that while developments in solar energy, electric vehicle batteries and even advances in nuclear energy are essential to building a sustainable future, we cannot ignore the developments in software that help these innovations gain ground. can ignore.
According to the Solar Energy Industries Association, the total cost of residential PV systems has fallen sharply by more than 65% in the last 10 years; however, hard costs have fallen much more sharply than soft costs, meaning that it may be cheaper than ever to manufacture solar panels, solar companies need to learn how to be more innovative when it comes to almost every other facet of their business. Today, solar companies must learn to deal with transaction costs, customer acquisition costs, permit installation costs, indirect operating costs, supply chain costs, ERP system costs and all other costs associated with running a business.
Today, Blu Banyan and Paystand are teaming up to radically reduce the price of soft costs by offering an integrated solution that helps solar installers reduce transaction costs and scale more effectively. Blu Banyan is a cloud-based solution that helps businesses eliminate operational inefficiencies by connecting multiple software tools into a single data source. The SolarSuccess software is designed to help solar companies manage workflows and projects more efficiently, leading to a faster and more effective implementation of solar installations. Paystand is a cloud and blockchain-based payment network that makes B2B payments cashless, foolproof and intuitive. It also streamlines critical AR functions, saving finance teams an average of more than 200 hours per year. When solar companies use Blu Banyan and Paystand together, they not only save on soft costs – they can also deliver a superior experience across the board: their customers have access to a more seamless experience, installers get paid faster and communities everywhere see a faster installation of solar panels.
“Green energy and an open financial system are two of the most important advancements we can make in our lives,” said Jeremy Almond, Paystand CEO. “By bringing both innovations together, we can create unprecedented change for our planet as a whole. Blockchain technology today is the only technology that has the potential to restructure our financial system as we know it – making it fairer, more open and just for the solar industry and every other industry.”
The current fee-based B2B payment model that relies on credit card networks shifts critical revenues away from solar companies in an industry where margins are already paper thin. Paystand is on a mission to restart commercial finance by helping businesses transition to a no-fee payment infrastructure — one that enables businesses everywhere to become profitable faster, improve access to cash flow, and grow without penalties. The company is also committed to helping finance teams move away from paper-heavy and labor-intensive processes. By providing tools that automate essential AR tasks, Paystand enables solar companies to not only reduce transaction costs by 30-75%, but also significantly reduce their paper consumption and save countless hours of manual labor.
“To get out of financial debt, everyone knows that first you have to stop digging and make it worse,” explains Blu Banyan CEO Jan Rippingale. “Taking small, consistent steps to improve composition over time until you are able to pay off one debt and apply that payment to the next debt. Eventually, inevitably, financial health is restored. Likewise, this is the approach we should use to restore climate health and stability. Biden’s goal of a carbon neutral network by 2035 is an important step towards the first goal of ‘stop digging’,” Rippingale confirms. “As modest a goal as that may sound, it requires an increase in pace of solar energy and renewable installations by 500%.”
Reducing soft costs is critical to increasing the speed at which installations can be deployed while solving one of the biggest threats to the solar industry: lost revenue. Built on NetSuite, SolarSuccess provides the necessary tools for solar business operations, including accounting, project management, customer acquisition, and more. It even optimizes accounting processes for ease of use, streamlines the ability to calculate commissions and month-end closing, and provides accounting consolidation for projects, new project configuration, and revenue recognition. The platform integrates with any API application, such as Paystand, to centralize all data in one location.
Clear, Paystand and Blu Banyan’s partnership will help companies achieve their carbon neutral goals faster and also help them to significantly save on ROI in the process. In addition to reducing overhead costs, speeding up payment processing, increasing project profitability and gaining operational clarity, this integrated solution is designed to transform the way solar companies operate, enabling them to achieve their goals as it’s about profitability and mitigating the effects of climate change. change. Now is the best time to evaluate SolarSuccess and Payment bank as an integrated solution for installers to position themselves for growth and to deploy more solar energy faster.
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