With the maturity of the solar energy industry, more and more regulations and supply chain bottlenecks have become a part of daily business. In order to maintain competitiveness and profitability, wholesale buyers must diversify their business models.

One method is to implement a secondary market strategy, including collaborating with solar equipment brokers to expand the accessibility of photovoltaic hardware pricing and supply. Wide coverage is necessary to achieve stability in fluctuations.

What is hindering the company from exploring and implementing secondary market solutions? Perhaps the main reason is a misunderstanding of what the secondary market is and what services brokers can provide.

One misconception is that the secondary solar energy market does not exist.

I think people in the solar industry underestimate the size of the secondary market, "said Christian Adams, CEO and founder of Alchemy Solar Distribution. And it's growing, especially since I founded the company three years ago

Another misconception is that the secondary market only includes second-hand products. In fact, a large portion of the secondary market in the United States today consists of brand new products with warranty.

I originally thought that by 2016, the excess supply of modules would dry up, "said Yousri Abdou, founder of Aten Solar. But that's not the case. There are always people who want to sell those unnecessary, brand new original components

EnergyBin is a consortium of photovoltaic professionals dedicated to promoting the resale and recycling of solar equipment, of which Aten Solar and Alchemy Solar Distribution are members. According to the alliance, 1.7 million components have been listed for resale on its exchange since 2020. By 2024, 95% of components will be new, with over 90% achieving an efficiency of 19.0% or higher.

The secondary market provides a distribution channel for components and other photovoltaic equipment that were previously sold but are now being resold due to project surplus, cancellation, or liquidation. The purpose is to re market and deploy these products to projects that currently require equipment, rather than storing them in warehouses and depreciating over time.

Solar equipment brokers (also known as resellers) are committed to matching products with buyers' needs. Brokers have a vast network of relationships and are able to find products that are usually priced lower than what buyers purchase on their own.

In turbulent markets, prices and supply conditions are influenced by supply chain issues, geopolitical factors (including tariffs, net measurement changes, and gradual elimination of incentives), and technological advancements. Smart wholesale buyers may benefit greatly from partnering with brokers who can expand the range of products purchased by buyers.

In addition, brokers can also help negotiate purchase terms, which is very helpful for developers, EPCs, and contractors who need complex projects spanning months or years.

However, the third misconception is that solar equipment brokers do not bring any value to wholesale buyers.

In practice, brokers will conduct in-depth research on product research and industry news, informing buyers why a certain component is suitable for their project. Brokers are well versed in the financing capabilities, performance, reputation, and craftsmanship of components. Moreover, as brokers are not subject to brand restrictions, they act as image ambassadors for buyers.

When the brokerage services I provide encounter resistance, I often ask in return: Why do you want to go to Pricing, Travelocity, or Expedia? Usually, it's because you want a one-stop query for supply status and prices. Besides labor, components are the largest component of project costs. A good broker will provide the most favorable price based on the supply situation, "said Abdou from Aten Solar.

Some solar energy companies have adopted brokerage services as a service and a strategy to diversify their business models in an increasingly competitive industry. The EnergyBin Alliance is currently composed of over 500 audited professionals who provide brokerage services to buyers.

I hope this industry no longer holds a negative view of brokers. Overall, we have a positive attitude towards real estate brokers and insurance brokers. In addition, there is Amazon - the world's largest broker. No one would hesitate to click the 'pay now' button because Amazon offers better deals and services that can save you time. This is exactly what solar equipment brokers do for wholesale buyers, "said Adams from Alchemy Solar Distribution.

To ensure a positive experience when working with a broker, Abdou and Adams recommend that buyers conduct due diligence.

Request recommendation letters from customers and manufacturers. Be sure to communicate with brokers. Don't just exchange emails, "Abdul said.

Ask your peers if they know which broker you are about to work with. If no one knows about this broker, it's a red flag, "Adams said.

Obtaining a recommendation letter is a solid step in verifying a company's reputation. EnergyBin provides trade recommendations for wholesale buyers of alliance member companies. In addition, EnergyBin also provides a free guide that includes tips for buyers to verify solar equipment dealers.