Molly Kiick
Bard MBA in Sustainability
Kristina Kohl
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Simplicity, joy, and above all affordability: with this simple strategy, SunCommon has grown renewable energy in Vermont and New York from a curiosity into a thriving business. Beyond acting as a compelling sales proposition, these core values have become central to their operations and are simply “how they roll.”
SunCommon’s success came from its unique focus on customer adoption and product offering.
When SunCommon began its pilot ten years ago, the prevailing messaging in the market focused on the threat of climate change and not the beauty of clean energy. The technology to bring renewable energy to residents was now available, but the onus was still on customers to seek it out and absorb the high up-front costs.
SunCommon was able to jumpstart adoption by flipping this message on its head and simplifying the transition, making it affordable, and keeping it fun. According to co-founder Duane Peterson, “The relationship most people have with power is you pay your utility a monthly check and you get to turn your lights on. They are not really looking to wrap their heads around alternative technologies and return on investment and payback and all the mumbo jumbo. We thought ‘Gosh, they’re missing a huge opportunity here.’ Let's just find a way to make it really easy and maybe even joyful, but for sure affordable, and I bet especially in Vermont a boatload of people will want this.”
Framing their mission around increased customer adoption has resulted in SunCommon’s differentiated product offering from their peers. Though traditionally solar companies have specialized within distinct product lines, SunCommon has found success by extending their offering to include residential, community, and commercial solar. For homeowners, traditional residential rooftop solar may be a good fit. Community solar farms extend the opportunity to homeowners with shady roofs, renters, and anyone unwilling to commit to a new installation. For community members who are part of larger organizations and businesses, SunCommon is able to provide commercial-scale solutions meeting their unique needs.
By focusing on making the adoption process simple, joyful, and affordable, SunCommon has grown from their 350 roof pilot to a wider offering of solar and home energy projects that are making the clean energy dream a reality for more than 9,000 customers in Vermont and New York.
SunCommon founders Duane Peterson and James Moore started the company with no experience in the energy industry, but Peterson sees this as an advantage. As he describes it, “one of the qualities of people who start stuff is the benefit of not knowing what they are doing”. By entering as outsiders, they were able to move past business as usual and approach problems with fresh eyes. Having met while community organizing for Vermont Public Interest Research Group (VPIRG), they took a community organizing approach to customer acquisition and met their prospective customers where they were.
Initially agnostic about the energy solution they would use, rooftop solar seemed like an obvious place to start. It is a visible signal of a commitment to clean energy and it starts producing energy immediately. Though installation of rooftop solar had initially involved a significant upfront cost, SunCommon was able to provide financing that traded the initial investment for a low monthly fee. From there, SunCommon continued to evolve to meet customer needs.
Though rooftop solar was successful, they soon found that it left many potential customers behind. If the roof did not face the same direction or was soon in need of replacing, the investment in solar panels would not pay off; if the potential customer was a renter, they would not be able to commit to the panel installation. A few years into operation, SunCommon began constructing larger solar arrays on local family farmland, allowing all Vermonters the opportunity to save money and support clean energy.
Unfortunately, two years into their community solar operation, regulations in Vermont changed and community solar was no longer an option. In 2018, SunCommon merged with Hudson Solar in New York, allowing them to regrow their community solar business. In the meantime, instead of laying off their staff aligned with the product line, SunCommon pivoted to add small commercial solar panels. At the time there were a lot of players in big commercials, but their relationships in the community allowed them to leverage their connections and start talking to people about bringing solar to their workplace.
Today, SunCommon has evolved to offer complementary energy products. Propane and oil boilers are common in Vermont and New York, but SunCommon has begun selling Air Source Heat Pumps that run on electricity and double as air conditioners in the summer. Diesel and gas generators have also risen in popularity as more harsh storms result in more power outages to vulnerable rural areas, but SunCommon has begun offering an alternative through Tesla’s battery storage. SunCommon is now one of the country’s leading providers of that technology. These solutions not only allow their customers more independence from fossil fuels, but they also save them money.
By continuing to extend its product line, SunCommon has opened the opportunity to support clean energy while saving money to new audiences in two states. One in forty households in Vermont now gets solar from SunCommon. Extending their product lines to provide alternatives to dirty boilers and backup generators has brought cleaner air, and the new battery storage has brought resilience to rural communities that were previously particularly vulnerable to power outages.
As Vermont’s ninth registered benefit corporation, this success has meant additional opportunities to create impact. As Peterson sees it, he is entrusted with the responsibility for managing their growing operating budget, and how he spends it matters. “The building, the fleet- you just go down the list, and each business decision is an opportunity to reflect our values. It’s a total joy and honor to get to do that- sometimes it is a little more difficult than just buying things off the shelf, but this way is more fun.”
Their community-focused customer acquisition strategy required staff on the move, and they would need a way to get around. They found leasing a fleet of hybrid, and later electric, vehicles were most economical, and wrapping those cars in the SunCommon colors and logo, was also an opportunity to advance the brand. When they grew to need their own building, they built a gorgeous, simple building with no furnace. According to Peterson, it is “cheap to operate, colorful, and speaks to who they are.”
The staff of Hudson Solar received a crash course in SunCommon values following their merger. Knowing the fearful reputation of mergers and acquisitions, SunCommon attempted to turn that fear on its head and instead shower the new employees with love. The staff was brought up to their new headquarters for the monthly meeting and an open-book review of their financials but were first met by Suncommoners in the yard, waiting to greet them with music, signs, balloons, and inflatables.
By framing its mission around renewable energy adoption, SunCommon’s business success has grown alongside its mission. Making the process easy, fun, and affordable has allowed them to attract a customer base while increasing the sustainability of their grid.
SunCommon’s expansion from residential to community and commercial solar expanded the size of their total addressable market while lowering their customer acquisition costs. If their initial proposal is not a fit, they are able to propose one of their other product lines.
Though SunCommon was hurt when Vermont regulations changed and removed the opportunity of community solar, their diversified approach allowed them to avoid closure. Expanding to a second state has further helped them to diversify against regulatory risk.
As a mission-driven company, SunCommon aims to do all it can to address the climate crisis. Their projects have allowed nearly 10,000 customers to enter the clean energy market and have offset more than 32,000 tons of CO2. Additionally, their energy-positive offices and electric vehicle fleet minimize the impact of their own operations.
Though they have succeeded in many respects, they continue to find new areas for improvement. Aware that intent is not the same as impact, they have begun more meticulous measurement of their DEI goals. To supplement their internal experience in attracting diversity, they are seeking outside support to examine who they are hiring, how they are retaining, what community groups they are partnering with, and what products are they making available to underserved populations. They have already seen some early success: though previous applicants had all been male, adjusting the images and language in the job description for installer positions resulted in new female recruits.
Though this effort may present new challenges, using their business as a force for good is simply how they roll.
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Duane Peterson, Co-President
SunCommon’s mission is to make clean, renewable energy simple and affordable. They offer options through home solar, community solar, solar heating and cooling, and battery storage — all at no upfront cost.