If you ever needed a great example of synergy, the news of SunRun and Nest technology’s partnership should be it. No word sums up the partnership better than synergy since we’re talking about a great marriage of two different companies’ strengths.
SunRun is a company that installs solar panels on consumers’ homes but charges consumers not for the solar panels or the installation but for the energy that they consume from the solar panel. On the other hand, Nest creates thermostat systems that recalibrate your home’s thermostat based on your schedule. This means that your home will run colder while you’re away from home and the thermostat will only kick in once you are actually inside your home. As a result, your gas and electricity bills go down because your home’s temperature is geared towards your actual usage and enjoyment of your home.
The companies have partnered up in such a way as to get each other’s market interested in energy efficient technology. SunRun customers will get a free Nest device and also $250 worth of free electricity. This is a great value because the Nest device is worth $250. The current customers of Nest, on the other hand, will get free $500 worth of free electricity from SunRun if they sign up with SunRun. This is a great example of leveraging each other’s strengths and existing market share to help each other to achieve a common goal.
SunRun is quite attractive because solar penetration in the United States is only one percent of the market. Think about that one percent everybody talks a good game about the beauty and value of solar energy but when it comes to actually installing and buying solar panels most people choke at the price because on a per kilowatt basis, solar power is still quite expensive despite the cheap panels coming out of China. SunRun takes all the headache out by shouldering the cost of the installations and solar panels and the consumer only just pays for the electricity. To sweeten the pot, the rates charged by SunRun is actually quite low compared to traditional solar energy. It should definitely be interesting how both these companies fare under this arrangement and if this can help them increase their market share.