ceg solar marketing report august 2009

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  • 8/8/2019 CEG Solar Marketing Report August 2009

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    Clean energy state program guide

    Smart Solar Marketing Strategies

    Prepared by

    Clean Energy Group and SmartPower

    A U G U S T 2 0 0 9

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    ce; Ann Marie McShea and Scott Hunter from the New Jersey Board of Public Utilities; Sam

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    that is referred to in this report. References in this report to any specic commercial prod-

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    ac. th vw x h wb c -ect those of the United States Government or any agency thereof, or the individual mem-

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    smart solar marKeting strategies

    Prepared by

    Clean Energy Group and SmartPowerA U G U S T 2 0 0 9

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    Executive Summary

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    spective reects a narrow denition of marketing one that primarily focuses on communi-

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    can address the major market barriers. The American Marketing Association denes mar-

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    .

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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

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    4. Inertia. The lengthy decision-making process and nancial complexity of the solar sale

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    able energy and energy efciency that the environmental message is not the answer to

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    stand the environmental benets of solar power, but those benets have not been persua-

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    lines that should be integrated into their overall marketing approach. SmartPowers ndings

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

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    for a solar programs nancial incentive to purchase and install a solar energy system. While

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    Mark Sinclair,CeaEegGp

    Lyn Rosoff, SmatPweAugust 2009

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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

    i a 2008, C e g (Ceg)

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    kc Clean Energy State

    Program Guide: Mainstreaming Solar Electricity:

    Strategies for States to Build Local Markets. th

    report identied critical state policies and pro-

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    equipment ratings, long-term nancing, building

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    This report is designed to complement the nd-

    f Ceg Mainstreaming Solar Electricity

    Program Guide v hf h fc hw k v

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    Background

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    grams. The 2008 solar market was ve times the

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    80,000 h u s 2007

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    Many customers with a nancial focus are nowv b v b

    look at solar power for the rst time. However,

    with an uncertain economy and nancial resources

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    Introduction

    http://www.cleanegroup.org/Reports/CEG_Mainstreaming-Solar-Electricity_Apr2008.pdfhttp://www.cleanegroup.org/Reports/CEG_Mainstreaming-Solar-Electricity_Apr2008.pdfhttp://www.cleanegroup.org/Reports/CEG_Mainstreaming-Solar-Electricity_Apr2008.pdfhttp://www.cleanegroup.org/Reports/CEG_Mainstreaming-Solar-Electricity_Apr2008.pdfhttp://www.cleanegroup.org/Reports/CEG_Mainstreaming-Solar-Electricity_Apr2008.pdfhttp://www.cleanegroup.org/Reports/CEG_Mainstreaming-Solar-Electricity_Apr2008.pdf
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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    Marketing and the 4 Ps

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    sage in the most efcient and effective manner.

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    The classic elements of marketing the 4 Ps:

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    fying both the opportunities the strengths and

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    the barriers the concerns and issues that pre-

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    dressing the nancing of solar to help overcome

    consumer price concerns. Today, nancing mecha-

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    ers are aware of these new nancing strategies

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    demand; ensuring that customers can easily nd

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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

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    market research, focus their efforts on specic tar-

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    effectively and efciently (communications). This

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    site, make a donation to a nonprot organization,

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    been addressed. If consumers are not condent

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    Building a Marketing Plan

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    Inerts those who express interest in solar by

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    studies, the key ndings point to several essential

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    f w w k h

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    The recent proliferation of creative solar nancing

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    relatively new, they reect the need to give con-

    sumers more nancing options and reduce the

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    many programs are providing innovative nancing

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    new solar nancing mechanisms are tools that can

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    An example of how to use these new nancing

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    Make a SolarSmart choice today and

    enjoy a new home that is more affordable,

    comfortable, and environmentally friendly.

    Buy a SolarSmart HomeSM and reduce your annual

    electric bill by as much as 60 percent. SolarSmart

    Homes combine the most cost effective energy ef-cient features and roof top solar electric genera-

    tion in a package that makes homeowners money

    every month.

    SolarSmart Homes are a wise investment

    that make doing the right thing easy.

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    /p/x.x

    Highlighting the specic monthly cost of a solar

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    energy audit customers conrmed this. Customers

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    http://www.smud.org/en/residential/solarsmart/Pages/index.aspxhttp://www.smud.org/en/residential/solarsmart/Pages/index.aspxhttp://www.smud.org/en/residential/solarsmart/Pages/index.aspxhttp://www.smud.org/en/residential/solarsmart/Pages/index.aspx
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    C l e a n E n e r g y G r o u p l 0 l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

    SolarLease Example for Typical 3-

    Bedroom Home

    For a home with a monthly electricity bill of

    $200, we would recommend installing a 16

    panel solar system.

    This system will generate enough electricity

    to offset what you are currently paying to

    the utility company from $200 down to

    $75 per month. Your monthly SolarLease

    payment would be $100, so you could ac-

    tually save $25 per month from day one.

    http://www.solarcity.com/residential/solar-

    lease.aspx

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    diate nancial relief and guarantees, maintenance

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    ts are important, but savings are of greater value

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    shops specically targeted to municipal leaders to

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    nancing the purchase of a home, an automobile,

    or a college education, nancing options for solar

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    http://www.solarcity.com/residential/solar-lease.aspxhttp://www.solarcity.com/residential/solar-lease.aspxhttp://www.solarcity.com/residential/solar-lease.aspxhttp://www.solarcity.com/residential/solar-lease.aspx
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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    Marketing Plan Action Step #1:

    IMPROVE THE VALUE EQUATION

    1. idetfteageffacaptscetaaaetcstmes wtmaet.

    - Are lease arrangements, PPAs and other monthly financing strategies available?

    - What new approaches, if any, should you offer?

    2. Eaatewcetpmtefacaptstpspecte

    cstmes.

    - Are you reaching a broad audience with these options and bringing new

    customer groups to solar?

    - Can you leverage the resources of strategic partners (such as lendingorganizations) to create broader awareness?

    3. Deepateacpa.

    - Prominently promote the affordability message in collateral material, public

    relations and advertising that go beyond the website.

    4. Ceateastgaffdatmessage.

    - Use the website to show monthly payment options for solar technology

    purchases or leases.

    5. Wwtstaes.

    - Ensure that they are promoting the financing options that are available to

    their potential customers.

    6. Fcswtpafsa.

    - Ensure that workshops and other solar seminars highlight financing as a key

    component, remembering that this is the biggest barrier to broader adoption.

    7. hstspecasafacgeets/wsps.- Identify target groups such as business associations, municipal and institutional

    customers, and developers.

    8. Edcatemewesadcmmecacstmes.

    - Work with local utilities to promote the value of combining solar with energy

    efficiency for optimum financial effectiveness.

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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    Celebrity endorsement If a celebrity uses

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    benets. For example, Californias New Solar

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    high trafc venues across California. h://

    http://www.aps.com/main/news/releases/release_443.htmlhttp://www.aps.com/main/news/releases/release_443.htmlhttp://cbs4denver.com/local/denver.convention.delegates.2.798582.htmlhttp://cbs4denver.com/local/denver.convention.delegates.2.798582.htmlhttp://www.aps.com/my_community/StoryArchive/StoryArchive_51.htmlhttp://www.aps.com/my_community/StoryArchive/StoryArchive_51.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.aps.com/my_community/StoryArchive/StoryArchive_51.htmlhttp://www.aps.com/my_community/StoryArchive/StoryArchive_51.htmlhttp://cbs4denver.com/local/denver.convention.delegates.2.798582.htmlhttp://cbs4denver.com/local/denver.convention.delegates.2.798582.htmlhttp://www.aps.com/main/news/releases/release_443.htmlhttp://www.aps.com/main/news/releases/release_443.html
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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

    www.cf./b/k-

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    on efciency and renewables. The Science

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    National Solar Tour the largest grassroots solar

    v h c. nw 13h , h

    Tour, which kicks off on the rst Saturday in

    October National Energy Awareness Month

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    th pg&e s sch p Cf

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    http://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarsweepstakes.com/http://ctsciencecenter.org/exhibits/energy-city/default.aspxhttp://ctsciencecenter.org/exhibits/energy-city/default.aspxhttp://ctsciencecenter.org/exhibits/energy-city/default.aspxhttp://www.smartgrowthadvocates.org/user/SunEdisonPueblo.pdfhttp://www.smartgrowthadvocates.org/user/SunEdisonPueblo.pdfhttp://www.smartgrowthadvocates.org/user/SunEdisonPueblo.pdfhttp://www.ases.org/index.php?option=com_content&view=article&id=549&Itemid=94http://www.ases.org/index.php?option=com_content&view=article&id=549&Itemid=94http://www.ases.org/index.php?option=com_content&view=article&id=549&Itemid=94http://www.ases.org/index.php?option=com_content&view=article&id=549&Itemid=94http://www.smartgrowthadvocates.org/user/SunEdisonPueblo.pdfhttp://www.smartgrowthadvocates.org/user/SunEdisonPueblo.pdfhttp://ctsciencecenter.org/exhibits/energy-city/default.aspxhttp://ctsciencecenter.org/exhibits/energy-city/default.aspxhttp://www.gosolarsweepstakes.com/http://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.htmlhttp://www.gosolarcalifornia.org/builders/marketing_resources/index.html
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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    2004, pg&e s sch p h -

    h 125 ch,

    more than 3,000 teachers, and beneted al-

    200,000 .h://www..c/

    ch/

    a c c

    vc h -

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    ch. a wh c ffcv

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    f o, w wk wh

    z v f-

    h h k

    cfb b h q v f

    w. h://www../-

    _ h://www..c.v/

    2009bc/CeC-180-2009-006/CeC-180-

    2009-006.pdF

    s ecc pw ac (sepa), c-

    z h w c f c-

    wh, h xcv f

    23 u.s.-b z

    fact-nding trip to Germany in 2008. Execu-

    v h h k wh h

    e c -f-

    c cc, c b.

    th w xc h- c

    f u.s. xcv, wh

    c w wh ch c

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    c. i 2009, sepa h

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    u p mch h w

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    can host similar educational fact nding

    wh h f k k-

    h. h://www.ccw./

    /x.h

    http://www.pge.com/solarschools/http://www.pge.com/solarschools/http://www.solaroregon.org/realtors_appraisershttp://www.solaroregon.org/realtors_appraisershttp://www.energy.ca.gov/2009publications/CEC-180-2009-006/CEC-180-2009-006.PDFhttp://www.energy.ca.gov/2009publications/CEC-180-2009-006/CEC-180-2009-006.PDFhttp://www.energy.ca.gov/2009publications/CEC-180-2009-006/CEC-180-2009-006.PDFhttp://www.solarelectricpower.org/peer/index.phphttp://www.solarelectricpower.org/peer/index.phphttp://www.solarelectricpower.org/peer/index.phphttp://www.solarelectricpower.org/peer/index.phphttp://www.energy.ca.gov/2009publications/CEC-180-2009-006/CEC-180-2009-006.PDFhttp://www.energy.ca.gov/2009publications/CEC-180-2009-006/CEC-180-2009-006.PDFhttp://www.energy.ca.gov/2009publications/CEC-180-2009-006/CEC-180-2009-006.PDFhttp://www.solaroregon.org/realtors_appraisershttp://www.solaroregon.org/realtors_appraisershttp://www.pge.com/solarschools/http://www.pge.com/solarschools/
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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

    Marketing Plan Action Step #2:REINFORCE THE RELIABILITY OF SOLAR

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    taffccats.

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    7. Ceateaspeaeseafmewesadsesseades

    wwspeaatteeffecteessfsapwetmeet

    teeegadfacaeeds.

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    th c-k c f c

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    they often encountered difculty getting estimates

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    Oregon, 223 respondents

    MArkETinGSTrATEGy#3

    rEDuCinGThECoMPlExiTyoFSolAr

    Ci

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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

    k h , f h w

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    . spw v hw h

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    Oregon, 63 respondents

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    difculty of getting installers to make a site

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    Energy Efciency Department to provide the

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    the added benet of serving as a trusted advi-

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    http://www.energytrust.org/forms/SLE_FS_ResSolarNow.pdfhttp://www.energytrust.org/forms/SLE_FS_ResSolarNow.pdfhttp://www.energytrust.org/forms/SLE_FS_ResSolarNow.pdfhttp://www.energytrust.org/forms/SLE_FS_ResSolarNow.pdfhttp://www.energytrust.org/forms/SLE_FS_ResSolarNow.pdfhttp://www.energytrust.org/forms/SLE_FS_ResSolarNow.pdf
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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    m, Wc, s ac C

    , c e avc -

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    dence about moving forward. h://www.

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    project planning, permitting and nancing op-

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    .x?=38064

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    customers the condence to move forwardwh h c . h://www.-

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    Marketing Plan Action Step #3:

    REDUCE THE COMPLEXITY

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    2. Eaateppttestceateasaamassadpgamtat

    cectsestgsacstmeswtpspectecstmest

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    3. Csdeffegfeeestmatesad/aeegadspgam tgdepspectstgtesaceteappcatpcess.

    http://www.solaramericacities.energy.gov/Cities.aspx?City=Madisonhttp://www.solaramericacities.energy.gov/Cities.aspx?City=Madisonhttp://www.solaramericacities.energy.gov/Cities.aspx?City=Madisonhttp://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=38064http://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=38064http://www.solaroregon.org/get-involved/solar-ambassadors-programhttp://www.solaroregon.org/get-involved/solar-ambassadors-programhttp://www.solaroregon.org/get-involved/solar-ambassadors-programhttp://www.solaroregon.org/get-involved/solar-ambassadors-programhttp://www.solaroregon.org/get-involved/solar-ambassadors-programhttp://www.solaroregon.org/get-involved/solar-ambassadors-programhttp://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=38064http://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=38064http://www.solaramericacities.energy.gov/Cities.aspx?City=Madisonhttp://www.solaramericacities.energy.gov/Cities.aspx?City=Madisonhttp://www.solaramericacities.energy.gov/Cities.aspx?City=Madison
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    C l e a n E n e r g y G r o u p l 0 l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

    a cx c k ch, wh

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    with share of mind and share of action.

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    was satised by just researching and attend-

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    position is better than rst to market.

    MArkETinGSTrATEGy#4

    ovErCoMinGCuSToMErinErTiA

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    sh H, v f w h,

    z hh- t g H b

    the rst builder to roll out a national solar offer-

    . t H ff free 3 kW -

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    2008. sh cv bc f c

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    promotion was designed to drive trafc. Follow-

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    condence to move forward in their decision-

    k h h c.

    Marketing Plan Action Step #4:

    HELP CUSTOMERS OVERCOME INERTIA

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    ecagescstmestactw.

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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

    Solar programs that address the rst four barriers:

    Cost, Reliability, Complexity, Inertia wh

    customer-focused initiatives will nd that they are

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    v k c h c h

    f h the environmental message

    is not the most compelling to the broad public.

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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    v bf f kw h

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    Marketing Implications of the Research.

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    C l e a n E n e r g y G r o u p l l C l e a n E n e r g y S t a t e P r o g r a m G u i d e

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    Marketing Plan Action Step #5

    FIND THE RIGHT MESSAGE

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    fcsadmessage.

    http://www.gosolarcalifornia.org/csi/faqs.htmlhttp://www.gosolarcalifornia.org/csi/faqs.htmlhttp://www.solarnoworegon.org/http://www.solarnoworegon.org/http://www.nyserda.org/LoanFundLenders/nyserda/pickbanke4.asphttp://www.nyserda.org/LoanFundLenders/nyserda/pickbanke4.asphttp://www.nyserda.org/LoanFundLenders/nyserda/pickbanke4.asphttp://www.nyserda.org/LoanFundLenders/nyserda/pickbanke4.asphttp://www.nyserda.org/LoanFundLenders/nyserda/pickbanke4.asphttp://www.nyserda.org/LoanFundLenders/nyserda/pickbanke4.asphttp://www.solarnoworegon.org/http://www.solarnoworegon.org/http://www.gosolarcalifornia.org/csi/faqs.htmlhttp://www.gosolarcalifornia.org/csi/faqs.html
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    C l e a n E n e r g y G r o u p l l S m a r t S o l a r M a r k e t i n g S t r a t e g i e s

    i cc b h c b

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    tops in the city and offered nancial incentivesf h c wh . m

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    AbouTThEAuThorS

    Lyn Rosoff, SmartPower

    Principal Author

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    SmartPower is a national, nonprofit marketing organization that promotes clean,

    renewable energy and energy efficiency. SmartPowers award-winning marketing

    campaigns have created unprecedented demand for wind, solar and hydropower.

    In 2001, a group of forward-thinking, private foundations and the Connecticut

    Clean Energy Fund founded SmartPower. These groups believed that renewableenergy needed the same consumer marketing techniques that traditional consumer

    brands use. SmartPower has recently expanded its focus to include energy

    efficiency and conservation. In addition to helping consumers choose clean

    renewable energy sources, SmartPower wants to educate consumers about ways

    they can conserve energy in their day-to-day lives.

    SmartPowers goal is for the nation to produce more clean energy while using less

    energy. SmartPower works on three key fronts to advance this mission.

    Research

    SmartPower conducts research to identify why consumers do not make choices

    towards a clean energy and an energy efficient lifestyle. This research is especially

    important when 80% of consumers say they believe renewable energy is better

    than energy produced from fossil fuels and they are willing to spend more to have

    it, but less than 3% actually purchase clean, renewable energy.

    Marketing

    SmartPower uses its research to construct targeted marketing campaigns to

    convince consumers to make the switch to clean energy and energy-efficienthabits. SmartPower spreads its message through marketing, advertising,

    promotion, public relations, blogging and social networking.

    Community Organizing

    SmartPower builds partnerships with utility companies, state agencies,

    municipalities, clean energy funds and community groups to promote clean energy

    to consumers at a grassroots level. SmartPower also provides marketing tools to

    local organizations so they can market clean energy in their communities

    Contact:

    Lyn Rosoff, Deputy Director

    SmartPower

    1120 Connecticut Avenue, N.W.

    Suite 1040

    Washington, DC 20036

    Phone: 202-775-2040

    Email: [email protected]

    www.smartpower.org

    http://www.smartpower.org/http://www.smartpower.org/
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