SOLAR POWER & DEALERSHIPS: A NATURAL MATCH There are many ways to approach running a business sustainably, but when we hear the phrase “going green”, solar panels are often top-of-mind. While dealerships seem to be perhaps a little late to the party when it comes to widespread use of solar energy, that may be changing: Freedom Solar Power has installed panels at eight dealerships in their home state of Texas, many in the last two years. According to CFO Kyle Frazier, investment in solar makes such economic sense that the environmental benefits are almost an afterthought, and dealerships are prime candidates to take advantage of solar power: “Going green” is nothing new. Some OEMs and dealers have been engaged in environment-minded efforts for some time. In a year when EVs outsold manual transmissions for the first time (Q3 of 2019, by nearly two to one), the trend toward dealerships making novel and clever strides toward sustainability might be seen as a sign of the times, the beginning of a paradigm shift towards a more efficient “new normal”. While reducing contribution to climate change is a fairly mainstream notion these days, the American automotive industry has generally not been seen as leaders in the green movement. As more consumers make purchasing decisions based on beliefs, a number of dealerships are changing those perceptions with intelligent initiatives to reduce their footprints. These dealerships are finding ways to reduce expenses and improve customer experience while cleaning up their environmental act. Going green as a dealership has progressed far beyond keeping a hybrid or two in stock, sometimes to a surprising level of detail: do you use recycled wood name tags?
“Auto dealers offer the ideal circumstances. Car lots are almost always owner-occupied real estate with plenty of roof space to accommodate a meaningful amount of energy. More owners are realizing that going solar has less to do with generating renewable energy and more to do with generating attractive returns on their cash. Clean energy is the positive byproduct of investing in solar. Solar happens to be an investment that generates cash in a very real sense. It produces kWh which is no different than pulling oil out of the ground. It’s this ongoing annuity that allows them to fuel future investments. The average cost savings for our clients is several hundred thousand dollars with a typical payback of 4-6 years.” Given the climate of the region, some dealers are using solar panels to improve the customer experience by using solar to help beat the Laredo heat for consumers browsing the lot. “Another trend we’re seeing is an interest in solar carports, and Sames Automotive is one of the dealerships leading the way. Carport structures with solar solve two problems at once for Texas dealerships given our long, hot summers,” Frazier said.