At Sunnova, we work with a select group of dealers and installers with proven track records of success and expert knowledge of their local markets. And we don’t accept just anyone into our award-winning organization.
Each solar dealer or installer is meticulously vetted before we invite them to join our nationwide network. The companies we bring on are established, as we review at least 12 months of financial statements during the initial screening.
We’ve learned through dealer feedback that our onboarding process is the most rigorous in the industry. We dig deep and conduct third-party background checks for anyone with a vested material interest in the business, in addition to the company itself. We review complaints made against them and scour their resolutions policy. We confirm the appropriate level of insurance for any subcontractors they use.
As tedious as it might be for our dealers, our process has proven successful in weeding out the bad players and making sure our customers receive the highest-quality installations supported by professional interactions and consistent communication. Because our dealers work directly with our customers, their conduct is reflective of Sunnova. Therefore, it’s important that they act with the utmost integrity and commitment to customer satisfaction.
In this blog, we’ll detail our strict vetting process so that you, the homeowner, can feel confident in your decision to choose Sunnova.
Step 1: Dealer Application & Supporting Documentation
Any residential installer or dealer in the U.S. interested in growing their business with an industry leader will start by applying and completing a compliance questionnaire. Our team will conduct an operational review to determine whether or not they meet our standards of excellence.
Sunnova will evaluate a potential dealer’s sales volume, and review their financial statements to validate the information they’ve provided.
From there, we’ll perform a risk analysis that involves:
- Collecting their licenses
- Understanding their business model
- Assessing their compliance with local and federal laws
- Evaluating their information technology
- Gauging their online footprint
This initial step helps us understand how the solar dealer works legally and identify any compliance concerns.
Step 2: Sales & Compliance Benchmark Review
The next phase combines vetting and onboarding, where we continue evaluating a dealer or installer’s background while educating them on Sunnova’s tools and capabilities.
This stage involves:
- A pricing analysis: We analyze a potential dealer’s pricing with their current lenders to ensure Sunnova pricing allows them to remain competitive while maintaining quality.
- Operations alignment check: We review the dealer’s current operations process to ensure our equipment standards are aligned.
- Proprietary tools demo: We demonstrate Sunnova Catalyst®, our quoting and design tool that lets dealers generate proposals, compare pricing estimates and manage the entire installation process.
- Go-to-market (GTM) strategy: We use the information gathered in our above sessions to create a comprehensive plan, from lead generation to customer in-service.
PRCC Review & Sunnova Scorecard
Sunnova has established a Partner Review & Compliance Committee (PRCC) comprised of team members from our pricing and legal departments as well as executive leadership. This committee is given a prospect analysis that outlines the following information:
- Dealer introduction and background
- Sales and install volumes
- Alternative financing providers
- Reasons they want to join our network
- Why we believe they’re a good fit for Sunnova
The committee then performs three pillars of review, outlined below.
Step 3: Legal & Compliance Review
To ensure a prospective dealer stands on solid financial ground, our team evaluates their balance sheet and P&L statement to gauge their risk. If we find the dealer to be heavily in debt, for instance, they may be inclined to cut corners or refuse to pay staff, which ultimately creates a negative customer experience.
We review a dealer or installer’s employee manual, licenses and any complaints against them. Our team also evaluates their complaint policy to see how they respond to accusations and unhappy customers. If we identify a lack of ethical standards, we won’t move forward.
During this stage, we investigate the business’s background and order third-party background checks for anyone with 25% or more interest in the company.
Our team is looking at:
- Any legal or civil matters filed against them
- Bankruptcies, criminal histories, money laundering activities
- Credit reports and tradelines
We also assess their website, looking for any guarantees they make to customers and gauge how they follow through on those promises. Our team also looks for consent language on their lead forms to ensure it complies with consumer laws.
If a dealer hires a subcontractor, we confirm that this business has the appropriate level and type of insurance, as well as proper licensure. We may have a direct relationship with these subcontractors in the future, should a dealer be terminated with projects underway.
This step aims to ensure that a business demonstrates accountability, ethical decision-making and compliance with all applicable laws.
All materials are submitted to the PRCC, which reviews the information, asks questions and decides whether or not to approve the prospective dealer.
Step 4: Channel Partner Agreement & Code of Conduct
Once a dealer is approved, they must agree to and sign off on our Channel Partner Code. This involves:
- Business integrity and ethical standards
- Human rights and labor law compliance
- Environmental impact reduction pledges
- Health and safety standards for workers
- Operational and general compliance standards
- Strict guidelines for marketing and sales practices
Dealers must then earn a compliance certificate from the Solar Energy Industries Association (SEIA). Sunnova performs annual compliance audits, and we have rules in place to prevent a dealer from quoting unless all requirements are fulfilled.
After that, the dealer or installer is business-ready.
Sunnova has established an in-house Learning & Development (L&D) team that conducts trainings and webinars that all dealers can access. Our goal is to see these companies excel and grow, as we offer them access to the broadest product suite in the industry. To facilitate success, our sales managers work with general managers to support dealers’ sales, while the L&D team determines what materials are needed to successfully sell our services.
With the amount of due diligence on behalf of Sunnova, it’s rare that a dealer is terminated. But it happens. Letting one of our dealers go is not a decision we take lightly. The primary causes for termination are inactivity and violating any of the rules outlined in our code of conduct.
If a dealer engages in unethical business practices, we immediately remove them from our platform and ban them from doing business with us. Dealers who are terminated due to inactivity are allowed to return, but they must be prepared to explain the changes they’ve made and how they intend to maintain acceptable sales volumes.
Ensuring You Receive the Best
Why do we require dealers to undergo this level of scrutiny and onboarding? For you, the homeowner.
By bringing on established dealers and refusing to make any exceptions regarding how a business is run, we offer the highest-quality installations by the most reputable companies in the industry. Our reputation as an energy service leader is integral to our success. Any deceitful or dishonest dealer can tarnish our reputation to both customers and investors. Therefore, we take responsibility for weeding out bad players through our strict standards, while emphasizing ethics and compliance.
Through careful selection of our dealer network, we’re able to increase our service footprint and enhance our positive impact on communities nationwide.
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