Powur says COGS+ model will reduce solar project change orders

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Powur PBC, a cloud-based residential solar and storage sales and project management platform, debuted a new fulfillment model this week that they believe can “eliminate 90% of change orders that occur after a statement of work has been created.”

The new model, called COGS+, uses data science to build on Powur’s innovative, transparent COGS (cost of goods sold) model. It utilizes an actuarial pricing model to pinpoint project cost from the outset to cut down on late-stage change orders and shorten solar installation timelines.

“We have completely redesigned and innovated a new fulfillment model as a result of the experience we gained after $1.1 billion in revenue,” said Powur CEO Jonathan Budd. “You can’t learn this stuff without scale, and we’ve taken what we learned and redesigned our process.”

What is COGS?

Powur thrives on a decentralized fulfillment model that leverages local certified partners, so its business model and sales enablement platform are designed to support local providers with the tools, resources, and connections they need to serve their customers.

COGS, introduced by Powur in 2019, allowed solar sales professionals to set their own margins on solar projects, propelling the company through years of rapid growth. However, the complexity of solar makes those margins volatile, rising and falling when projects ultimately cost more or less than expected.

Enter COGS+

COGS+ retains the flexibility and control over margins while establishing pricing accuracy and predictability from each project’s beginning, which Powur is referring to as the first 15%.

“If you get the first 15% right, the next 85% actually flows seamlessly, smoothly, effortlessly,” Budd said.

To get that first 15% right, Powur has introduced a comprehensive universal scope of work confirmation process that makes the accuracy of COGS+ possible.

  • When a homeowner signs a contract, a site survey is scheduled within two days.
  • Powur’s design team then gets to work reviewing every aspect of the project to create a statement of work that incorporates the equipment, finance provider, site details, and other components that are specific to that project.
  • That highly customized SOW is agreed to by Powur, the solar professional, and the homeowner, giving build partners clear direction and a defined scope before they start work.

Powur leadership feels they are positioned to create customized statements of work that incorporate all of the layered complexity inherent in solar projects, from financing restrictions to battery compatibility to net metering regulations.

“We’re committed to a frictionless customer experience – for every user in our ecosystem,” Budd said. “We believe we nailed it with the innovative combination of our battle-tested front-end sales enablement, our decentralized fulfillment platform, and now our COGS+ model.”

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