Powur PBC, a leading platform-based solar energy company, announced a new fulfillment model that utilizes an actuarial pricing model to pinpoint project cost from the outset, eliminating the need for late-stage change orders and shortening the timeline for solar installation.
The new model, called COGS+, uses data science to build on Powur’s innovative, transparent COGS (cost of goods sold) model and is expected to eliminate 90% of changes that occur after a statement of work has been created.
“We have completely redesigned and innovated a new fulfillment model as a result of the experience we gained after $1.1 billion in revenue,” said Powur CEO Jonathan Budd. “You can’t learn this stuff without scale, and we’ve taken what we learned and redesigned our process.”
COGS, introduced by Powur in 2019, allowed solar sales professionals to set their own margins on solar projects, propelling the company through years of rapid growth. However, the complexity of solar meant those margins could be volatile, rising and falling when projects ultimately cost more or less than expected. COGS+ retains the flexibility and control over margins while establishing pricing accuracy and predictability from each project’s beginning, which Powur is referring to as the first 15%.
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“If you get the first 15% right, the next 85% actually flows seamlessly, smoothly, effortlessly,” Budd said.
To get that first 15% right, Powur has introduced a comprehensive universal scope of work confirmation process that makes the accuracy of COGS+ possible. When a homeowner signs a contract, a site survey is scheduled within two days. Powur’s design team then gets to work reviewing every aspect of the project to create a statement of work that incorporates the equipment, finance provider, site details, and other components that are specific to that project. Because of Powur’s vast experience across a wide array of project types, it is uniquely positioned to create customized statements of work that incorporate all of the layered complexity inherent in solar projects, from financing restrictions to battery compatibility to net metering regulations.
That highly customized SOW is agreed to by Powur, the solar professional, and the homeowner, creating a concrete plan and price for the project and giving build partners clear direction and a defined scope before they start work.
COGS+ and the new universal SOW process further enable Powur’s decentralized fulfillment model that leverages local certified partners. Powur has long believed that decentralizing solar is the only way to scale the industry, and its business model and sales enablement platform are designed to support local providers with the tools, resources, and connections they need to serve their customers.
“We’re committed to a frictionless customer experience – for every user in our ecosystem,” Budd said. “We believe we nailed it with the innovative combination of our battle-tested front-end sales enablement, our decentralized fulfillment platform, and now our COGS+ model.”
SOURCE: Businesswire