Case Study: Revolution Solar and PosiGen - A Partnership to Empower Low-Income Communities in D.C. Through Solar Financing
Founded in 2006, Revolution Solar initially focused on home improvements for low-income families in Baltimore, Maryland. In 2017, they shifted their focus exclusively to solar energy, relocating to Washington, D.C., where incentives allowed them to offer affordable solar solutions to low-income households.
Revolution Solar’s commitment to serving these communities distinguished them from competitors. They view their mission as not only delivering energy savings but empowering customers financially by helping them invest in sustainable home improvements.
Revolution Solar is also driven by a broader vision: building a greener world powered by the sun. They believe that the widespread adoption of solar energy is inevitable, and they work tirelessly to bring effective, financially beneficial solar solutions to their clients. This mission keeps Revolution Solar focused on providing sustainable energy solutions accessible to everyone, especially those who might otherwise face barriers to adopting clean energy.
Reaching more customers.
“Our close rates have gone up, and we’re turning away fewer customers. PosiGen has unlocked a deeper level of savings for those who need additional home improvements outside of solar.”
Connor McFadden, Dir. of Strategy
Challenge
As Revolution Solar’s business grew, they faced a significant hurdle: financing solar projects for homeowners who required major electrical or structural upgrades. To bridge this gap, Revolution Solar previously offered in-house TPO (third-party ownership) financing, but this approach strained their cash flow, limiting their ability to expand. "We had been the same size company since day one and hadn't really grown," Connor McFadden, Director of Strategy, explains. "We felt that our values are underrepresented in the solar community, and we really do want to grow and challenge others to do better."
Solution
Revolution Solar sought a financing partner that shared its mission-driven approach, ultimately connecting with PosiGen, a company known for prioritizing consumer welfare in the solar financing sector. This partnership introduced PosiGen’s TPO services to Revolution Solar’s offerings, allowing them to offer homeowners low-cost financing without bearing the financial burden internally.
Impact on Homeowners
The partnership has transformed Revolution Solar’s ability to serve low-income communities, allowing homeowners to pursue necessary home improvements alongside solar installations. McFadden highlights the impact of these improvements on customer satisfaction: "We compiled almost $30,000 of home improvements with a $40,000 solar system into one woman’s home for a $35 monthly payment. Her jaw dropped. It was an emotional moment; she went from watching her house crumble around her to now having an almost fully renovated home and no electric bill.”
Empowering Low Income Households
For Revolution Solar, PosiGen’s focus on customer well-being aligns perfectly with its philosophy of responsible service. “Something that jumped off immediately to us was PosiGen’s deep-rooted concern for the consumer,” McFadden shares. "Their representatives have a rule: if the customer doesn’t see immediate savings benefits from the solar system, they won’t do the installation. That has been our philosophy as well.”
Business Benefits
Revolution Solar has experienced significant growth and operational flexibility through the partnership with PosiGen. McFadden notes, “Our close rates have gone up, and we’re turning away fewer customers. PosiGen has unlocked a deeper level of savings for those who need additional home improvements outside of solar.” Not only does the partnership improve cash flow for Revolution Solar, but it has also increased their legitimacy among potential customers.
“Having PosiGen backing us legitimizes our offers for free solar installations, reassuring customers that they won’t face hidden costs or future liabilities.”
This legitimacy and financing flexibility contributed to Revolution Solar’s 14% year-over-year sales growth in Q3, with PosiGen-financed deals making up 30% of sales. Revolution Solar aims to have PosiGen represent more than 50% of its sales in the next fiscal year.
Conclusion
The partnership between Revolution Solar and PosiGen exemplifies the power of mission-aligned collaboration to make sustainable energy solutions accessible to underserved communities. With PosiGen's support, Revolution Solar has expanded its reach, provided extensive home upgrades to those in need, and legitimized the solar financing process for wary customers. As McFadden succinctly puts it, “It’s a no-brainer.”
