My good friend, Jason Kaplan, in his article, "The Fallacy of the 100% Churn Guarantee in Community Solar," rightly highlights critical concerns surrounding these promises in our industry. He articulates how a seemingly ideal solution can become a significant liability when providers fail to honor their commitments, often due to a lack of underlying financial stability or operational capacity.
Like PowerMarket, we've seen these "100% churn guarantees" unravel firsthand, leaving developers and asset owners in a difficult, costly position. We have had to step in and assist several times when "empty promises" fell apart. However, it's crucial to differentiate between a flawed guarantee model and a sustainable approach to churn management. While Kaplan correctly identifies the pitfalls of guarantees offered purely as sales hooks without the necessary support, it's important to recognize that not all churn replacement strategies are created equal.
At Solar Simplified, we offer free acquisition and churn replacement as well, but with a critical distinction. Our approach is fundamentally profitable, inherently scalable, and, importantly, something lenders actively underwrite and feel comfortable with. This isn't just a marketing claim; it's built on transparency and accountability, combined with sophisticated systems and time-tested processes that ensure we can deliver on our commitments. Most importantly, we intentionally built our company from the ground up with this differentiated approach in mind. While competitors tried to steer us toward following the industry's conventional path, we stayed committed to a strategy that was not only unique but was also designed for long-term sustainability. Changing course midstream is difficult, but from the beginning, we designed every system and process to deliver on our promises.
Kaplan's emphasis on due diligence, such as examining a partner's track record, operational history, financial stability, and acquisition strategy, is spot on. This rigorous assessment precisely distinguishes a reliable partner from one offering an unsustainable promise. Our model is designed to withstand such scrutiny, providing developers with true peace of mind, not a false sense of security.
We agree with Kaplan's premise that mindlessly relying on a 100% churn guarantee is risky. The real solution lies not in avoiding guarantees altogether, but in demanding transparent, financially sound, and operationally robust churn management solutions. It's about partnering with organizations that have a proven ability to keep subscribers engaged and, more importantly, the financial and operational capacity to back their promises when churn inevitably occurs.