Our online marketplace functions as a barometer for the commercial photovoltaic market. We have analysed the data and evaluated market trends to learn how demand in various market segments has developed for us this year.
Current market trends are always interesting to us. They allow us to use actual demand to derive solutions and learn the market segments with which we can optimally contribute to the green energy transition. In this context, B2B sales of project rights and new systems currently stand out from the crowd, and show where we can support project development and construction of turnkey PV systems.
In this article, you will learn more about market trends in 2022, what benefits we can provide through the professional marketing of PV projects, and how this aids in the energy transition.
Market trends on the Milk the Sun marketplace
Let’s start with the plain figures:
The total volume of sold or purchased project rights already amounted to over 400 MWp in 2022. Together with turnkey systems, project rights on the Milk the Sun marketplace accounted for a market share of 40 percent of all sales. There was growing trade of new systems which approached existing systems in terms of importance.
The span of time from a listing being posted to the sale of a PV project on the Milk the Sun marketplace averaged just under 52 days across all system types in 2022. In the turnkey PV sector, sales only required about 24.5 days this year. A comparison to the overall average shows that project sales were particularly quick this year: From the launch of our marketplace (2012) up to today, sales have taken an average of 167 days.
Why have project sales happened so fast in 2022?
This year, the demand for photovoltaic systems once more increased. The trends evident in the sector of private rooftop systems, as indicated by overfilled orders at installation companies and longer waiting times for those interested in PV system installations are extending to commercial PV systems. A key driver here is the rising cost of energy. But even before the energy crisis, demand was up in earlier years. Renewable energies benefit from a steadily growing interest in sustainable investments.
Rapid transaction times are also helped by the streamlined and optimized sales processes on the Milk the Sun marketplace. Milk the Sun’s systematic transaction process has been further developed and perfected year after year. The investor pool and number of potential buyers has also grown steadily over the years.
Benefits for providers of project rights and new systems
Companies that regularly sell PV projects particularly benefit from outsourcing their sales to Milk the Sun. Optimizing the sales processes results in the greatest savings. Companies which continuously sell system include, for example, project developer, general contractors (EPCs), and some portfolio management companies.
Using Milk the Sun saves on distribution costs,
- because project presentation is standardized.
- because a free standardized data space is available.
- because it makes approaching investors easier and more effective.
- because suitable interested parties are easily found due to the huge pool of investors where all system sizes and classes are searched for.
In one swoop, over 8,700 vetted investors can be approached via the marketplace. In this pool, competition ensures high demand for projects and creates optimized sales prices. Our account management supports both sides in an advisory capacity and checks both investors and project offers to ensure that they are investor-ready. We also ensure that all sales prices on the Milk the Sun marketplace are in line with the market using an in-house valuation.
By the way, projects can still be sold on your own network at the same time, as Milk the Sun does not demand any exclusive marketing rights for itself.
Benefits for the green energy transition
Streamlining the sales processes counteracts the shortage of skilled workers. This is because pressure is taken off of sales staff who can then be deployed in their companies where skilled workers are lacking: in project management. This is where PV Think Tank identifies the shortage of skilled workers in the commercial photovoltaics sector.
Most B2B sellers are well qualified for the task. They are technically and communicatively competent and are already familiar with their company processes. If this internal shift in task focus is successful, PV companies can reduce their project costs and increase their implementation capacities. As a result, more PV systems can be added with the same number of employees, something with a clear benefit for the green energy transition.