March 2024

Service as a Business Model: What Are the Opportunities?

2Solar service as a business model

In the realm of installations, providing service and maintenance post-sale is often a neglected subject. But what if we consider service as the heart of our business model? In this article, we delve into answering several questions: What exactly does service as a business model entail? Why should you utilize service as a business model? Which opportunities arise when you implement this? And how can 2Solar by Sollit support you during this process?

What is a service business model?

The service business model revolves around creating, delivering, and maintaining services to provide added value to customers while generating revenue. It starts with a fresh perspective on service: don’t view it as merely solving problems for all your clients but as a service provided to every existing customer. You truly add value when, alongside product installation, you can promise your customers the service they expect and need.

Why choose service as a business model?

The motivation for adopting service as a business model varies for each company. Many entrepreneurs employ this model to build better and stronger relationships with their customers. Another reason is to generate more revenue and keep it stable. In addition to relationship-building and revenue stabilization, regular maintenance is essential for the installation of sustainable energy products. Every installed product has an expected lifecycle, so your customers eventually will need your company’s services.

Annual Installations vs. Required Service

The graph below illustrates a conservative scenario that may not exactly reflect the current situation of most installation companies. Taking an example of the most common product, a PV system, here are some basic facts demonstrating the impact of services for a growing solar energy company:

Annual number of installations is 1000 systems with no growth.
The product inverter has a lifecycle of 10-15 years.
 Most systems operate well for the first three years, after which approximately 8% (at best) of all installations may encounter service issues.

anual installs versus services

From the graph, it’s evident that the number of service calls an installer receives over time surpasses the number of installations they complete monthly. This doesn’t necessarily mean no new products can be sold, but it does show that as the number of completed installations continues to grow, so does the number of customers in need of service and maintenance. Therefore, structuring your company to focus on providing services is a wise choice.

How do you implement a service business model?

The nature of service varies for each company and product. By providing service and maintenance, you help your customers understand that they are not just owners of solar panels but also users. You show them how to optimize product usage and the importance of maintenance. Examples of PV system maintenance include periodic checks, troubleshooting, regular maintenance, and panel cleaning.

The frequency of service you provide and the number of solar panels your customer has, are factors that influence the revenue you could generate. Customise your maintenance contracts in a way that fits your company and the service you want to provide your customers. 2Solar can assist you in setting up the system to streamline this process.

Utilizing service as a business model: these are the opportunities

✓ Keep your workload under control: Service will always be recurring. Even if your business model primarily relies on sales now, a maintenance contract helps distribute workload by allowing you to anticipate the services to be provided in the future.

✓ Stable income: It offers consistent revenue, both from existing customers and new leads through regular maintenance.

✓ Building customer relationships: Stronger relationships with customers lead to increased engagement and loyalty.

Utilizing service as a business model: 2Solar can assist you

Adjusting your business model is a best practice for installers managing their services. 2Solar can assist in setting up a dashboard with customizable elements. This way, we can help your company achieve three goals:

Building recurring activities: Send and sign process for service contracts.
Enhance customer service: Service lead management for all incoming services.
Reduce costs: Efficiently manage services using the service module.

These features can be added to your current 2Solar system, which provides all the tools to derive revenue from your services. We ensure you are prepared and always in control of all services.

2Solar Monitoring Module

To save time in maintaining PV installations, constant monitoring of the system is essential. The 2Solar by Sollit Monitoring Module has a crucial role in this part. This module automatically detects faults and error codes in, for example, a PV installation and automatically sends a notification. Upon receiving the notification, an inspection form is sent to your client. This form aids in identifying the specific fault, enabling efficient scheduling of a service visit.
This automated approach ensures both you and your team are relieved of the maintenance process. By integrating this module into your operations, you can increase the efficiency of your service process and provide even better customer service. Additionally, you can ensure your customers derive maximum benefit from their solar panels and other sustainable energy products.