In 2022, NY State Solar (NYSS) realized that the residential solar market was evolving due to rising Federal rates. In the wake of the pandemic, inflation soared, leading to increased prices for essential items like rent and food. In response, the Federal Reserve started raising interest rates to slow the rapid price hikes, increasing its benchmark rate 11 times between March 2022 and July 2023. These changes diminished the financial viability of traditional solar loans, prompting NYSS to explore new solutions to stay competitive. “NYSS was first introduced to PosiGen and began collaborating with them in the summer of 2022 as the residential solar landscape started to shift,” said Reid Garton, CEO & President of NYSS.
As interest rates increased, solar loans became less appealing, reducing potential savings for customers. Garton noted, “You’re selling a product that’s supposed to be saving the customer money, if the numbers don't pencil for the customer as predicted there will be a considerable volume drop.” NYSS identified that a pivot to a new financial model was essential to navigate this changing landscape.
Becoming PosiGen’s first traditional solar partner, NYSS redirected its efforts towards third-party ownership (TPO) products designed specifically for the New York market. “With rising rates and existing loan products providing minimal savings for customers, we decided to prioritize TPO offerings in Q4 2022,” Garton explained. “PosGen’s solutions aligned perfectly with our goals and met the needs of our customers seeking to lower their utility bills and enhance their energy efficiency.”
This transition required retraining the sales team, who were accustomed to selling loans and cash options. “Our sales team took a few months to retrain and get adapted to selling the lease instead of the loans that they were used to,” Garton added. Despite initial challenges, the sales team adapted, and by March 2023, NYSS began to see the fruits of their labor.
Since adopting PosiGen's leasing model, NYSS has consistently broken its sales records. By the end of 2023, NYSS was up about 10% from 2022, while many competitors saw declines of 20-30%. “Starting in 2024, just a few quarters after shifting our model to include leasing with PosiGen, we have significantly surpassed our company sales record almost every month!” said Garton.
NYSS continues to set sales records monthly, trending toward an impressive 40% year-over-year increase compared to 2023. “Thanks to PosiGen’s product, we’re growing our sales at a rate that far exceeds the residential solar industry,” Garton emphasized.
A key benefit of partnering with PosiGen has been the ability to reach previously underserved communities. “The PosiGen product has allowed us to reach communities that were previously inaccessible. It has allowed us to let solar be an option for ALL New Yorkers whereas selling loans was only an option for upper-middle-income homeowners,” Garton remarked.
This broader approach has enabled more individuals from varying income levels to save by switching to solar energy. “Partnering with PosiGen has dramatically expanded the group of people that are able to access the savings from solar, which is a positive for the community and us as a company,” he added.
NYSS's strategic pivot to PosiGen’s leasing products has not only transformed its sales approach but has also made solar energy accessible to a wider range of customers across New York. Through adaptability and a commitment to quality, NYSS has positioned itself as a leader in the residential solar market, demonstrating the power of innovative partnerships in overcoming industry challenges.