Driving stable growth and solar customer satisfaction for Aspen Power Partners
When it builds new solar developments, Aspen Power Partners has to determine how many subscribers it needs to make each solar array financially viable, find those subscribers, and set up billing for each one. It’s a lengthy and stressful process, made harder by the fact that Aspen Power Partners often gets only a single data point for a subscriber. All too often, it turns out that the subscriber is actually inactive or in default, or has moved.
To avoid that nightmare scenario, Aspen Power Partners leverages Arc to quickly and reliably qualify subscribers by connecting to their utility accounts. With visibility into subscribers’ typical energy use, Aspen can easily optimize its developments and avoid underuse. And once subscribers become active customers, Aspen Power Partners uses Arcadia’s Bundle product to create an improved billing experience that simplifies things for customers and solidifies the developer’s revenue flow. The result is stronger retention, more consistent cash flow, and reduced risk.
Getting customers is only the first step
For a customer, the single billing experience that Aspen Power Partners provides through Arc creates greater satisfaction. It shows exactly what they are saving and allows them to pay their utility and the solar farm in a single transaction, rather than receiving multiple bills. But there are important benefits for the solar power provider on the back end, as well.
Jorge VargasManaging Partner, Aspen Power Partners
With Arcadia, you know your subscribers are sound. I can pull a report that is current to the day and show it to investors at any time. That gives everyone involved tremendous confidence and enables community solar projects to be financed efficiently.
Transparency and stability make it easier for Aspen to secure new funding and continue to grow its profile
The billing and collection happens on a dynamic basis. Charges are levied as soon as a customer’s utility bill is issued, rather than waiting to aggregate all customer charges around the solar project’s monthly billing cycle. This creates a continuous cash flow with less associated risk.
The incredible retention and payment rates delivered by Bundle reduce risk even further. The predicted default rate from the Consumer Financial Protection Bureau for a 700 FICO score customer is 5%. The default rate on a solar loan typically grows to 4-5% by year three. But customers billed via Arcadia hold at a persistent default rate of 0.5%, year after year (as of May 2020).
As their latest development moves toward its intended launch, Aspen Power Partners continues to see an outstanding return on its investment with Arcadia. Success in the immediate term is secure, with even greater growth on the horizon.