The Solar Industry Marketplace

Specialization within the solar industry generally falls into one of the following categories: integrators, installers, and solar energy service providers.

Solar Integrators
A system integrator is a manufacturer that resells solar products and equipment. Typically integrators maintain direct sales and marketing teams for power plant systems. The customer then pays for the system with up-front capital outlays or through lease agreements. Installers are then sub-contracted for the system installation at the customer's facility. Integrators may or may not have in-house program managers and system designers, and typically do not have their own installation crews, or service teams. Once a system is installed, integrators play a limited role with the ongoing customer relationship. Maintenance and service may not be offered at all, or it may be outsourced to a third party. All energy production issues fall on the responsibility of the customer who purchased the power plant system.

Solar System Installers
A system installer is focused on the installation of solar systems. Installers typically do not sell systems to buyers. They are often sub-contracted by manufacturers or integrators to install systems. While they may play a role in system design, they typically are not certified engineers. Installers may be the outsourced service and maintenance team for an integrator, but this is typically not their core business. It is important to know that the integrator business is dependent on a large workforce of trained installers.

Solar Energy Service Provider (SESP)
SESP's finance, design, install, operate, and maintain photovoltaic power plants at their customer's sites. The SESP then sells the energy produced to the customer. An SESP offers power purchase agreements whereby the customer does not pay up-front capital outlays, but pays only for the energy produced. In addition, the general structure of a power purchase agreement with an SESP does not require a customer to pay for the service or maintenance of the power plant.