By offering solar equipment brokering as a value-added service, solar distributors can go above and beyond for their customers. One main reason why brokering is a necessary service is the fact that the global solar supply chain is more complex than ever. Brokers help wholesale buyers navigate these complexities and ensure buyers get the best deals for quality PV hardware that’s delivered on time.
But the word ‘brokering’ tends to have a negative connotation among PV professionals. This is quite baffling because we’re all accustomed to real estate brokers, insurance brokers, and of course the mega broker, Amazon.
We interviewed Christian Adams, Founder & CEO of Alchemy Solar Distribution, to gain insights on solar equipment brokering as a viable way to diversify a solar company’s business model. He also shared why partnering with a broker can give wholesale buyers a competitive edge. Alchemy has been a member of EnergyBin since 2022.
EB: Tell us about your career in solar. When and where did you start out? What have you learned since then that’s stuck with you all these years?
I’ve been working in the solar industry for the past 20 years. I grew up in New Jersey. In my twenties, I tried my hand at selling insurance and worked in the mortgage industry during the housing boom in the mid-2000s.
Around 2005, my uncle mentioned that solar was going to take off. I was intrigued and started contacting solar companies about job opportunities. I went to work for a company in the New Jersey / New York area that was on a rapid growth projection. In two years, we grew from five to sixty employees.
In 2009, I had the opportunity to move to Hawaii to work for various contractors. This was a great move for me. Solar was booming throughout the state. But then in 2015, net metering ended, which caused the market to implode. The state went from 300 contractors to about 30. That event made me realize that I couldn’t limit my work to one state. Such a narrow focus is too volatile. I went to work for Soligent as the Sales Director. A few years later, I joined Kinect Solar. About three years ago, I started my own company, Alchemy Solar Distribution.
What I’ve learned throughout the years is that to thrive in the solar industry, your company must have flexibility and freedom. To achieve that status, you need to diversify your business model – whether the diversification comes from the products you offer, the expanse of your sales region (states and countries), or the services you offer your customers. If you can position your company in different markets and segments, then you’ll be able to ride the waves of the solar industry.
EB: You started Alchemy Solar Distribution in 2022. How’d you come up with the name for your business?
Well, I’m a surfer living in Encinitas, California (just north of San Diego). One day, I was sitting in the lineup waiting for the next wave. As I waited, I was thinking about the book, The Alchemist by Paulo Coelho. The word ‘alchemy’ means combining two unique elements into a third highly valuable element. In the solar business, we’re combining the elements of silicon and the sun to produce electricity. It seemed like a fitting name for my company.
EB: How would you best describe your company and the services you provide?
Our primary focus is distributing solar panels to contractors, EPCs, developers, and resellers. We tap into our expansive network of relationships to make this happen. We have direct relationships with most manufacturers, and we also buy from resellers.
Furthermore, we help contractors and developers resell excess leftovers from their projects, whether they have a few pallets or a few megawatts. Having a variety of relationships gives us the flexibility to find specific products that our customers are looking for.
As an example, say a contractor wants QCells 450-watt modules that the manufacturer hasn’t produced in the last six months. Alchemy would tap into our relationships to find this module or an alternative module that matches exact specifications. That’s the value we offer as a secondary market dealer. Additionally, we provide inverters and batteries as well.
EB: You just referred to Alchemy as a secondary market dealer. How do you define the term ‘secondary market’?
What I’m referring to when I say ‘secondary market’ is a market that consists of any products that have been sold once and are now available for sale again. These products could be new or used. In our case, we deal in new products. These products could be project leftovers, or they could be coming from cancelled orders or liquidations – to name a few scenarios.
The secondary solar market is a large market. I think people in the solar industry underestimate how big it is. The market has further grown within the past few years since I started my company.
EB: How would you define ‘solar equipment brokering’?
Brokering translates into having the relationship network to find the products that the customer needs. Often, brokers can locate specific products for less cost than what a buyer could find by their own means. When it comes to finding a deal, a buyer may provide their project specifications that a broker then uses to come back with different options for the buyer to choose from.
In many cases, brokering is a form of distribution. But a major difference between the two is that brokers tend to not take ownership of the products. Rather, they act as intermediaries between the supplier and buyer to coordinate a drop-ship to the buyer’s designated location.
Whenever possible, I strive to not take ownership of the products. I have a warehouse, but my greater value resides in the relationships I bring to the table, not in holding inventory. There are times when I will outright buy a bulk lot to get a good deal, but that’s not the norm.
EB: You touched on the similarity and difference of brokering to distribution. In what other ways do these two business models differ from one another?
Brokering differs from distribution in two main ways.
First, brokering allows a company to be flexible within the volatile solar industry. If Alchemy stored inventory in warehouses across the country, we’d be forced to lock into just a few manufacturing brands and models. Distribution would limit our product line. Rather, a broker like Alchemy is uninhibited by brand. In a way, we’re agnostic, which gives us the freedom to seek out what modules make the most sense for our customers.
Second, by being open to all manufacturers, we become experts in product knowledge. When we present options to the buyer, our product knowledge affords us the ability to consult on performance, quality, bankability, and price variances. Providing the buyer with this information empowers them to be the decision maker, and we’re functioning more like their consultant. I prefer the consulting approach to sales because then I’m not some pushy salesperson who’s making the buyer choose between A, B, or C Module when D Module is likely the better fit. Brokering gives me the freedom to be the buyer’s advocate.
EB: What benefits do brokers provide to wholesale buyers?
In a nutshell, working with a brokerage firm expands the buyer’s scope for sourcing products. At Alchemy, we’re a team of eight professionals, who each have expansive relationship networks to tap into on behalf of our customers.
The other big benefit of working with a broker is helping to negotiate buying terms. Say a buyer needs one to two megawatts of modules delivered over the next 12-18 months. A broker can help find a partnering manufacturer to honor such terms. Having a broker working for you in this capacity saves you time and relieves your bandwidth.
The question on every professional’s mind is how to gain efficiency. You only have X amount of bandwidth to do your job. It all comes down to considering what parts of your job you can delegate to others to free up bandwidth.
EB: What is it that makes a good broker stand out from the rest?
A good broker works to get in front of impeding issues. There are all kinds of challenging issues that can arise in PV hardware trade. There are some things you can control; there are others, like shipping carriers and even manufacturers, that are out of your control. But a good broker will do whatever they can to ensure the buyer gets the right order on time.
I was recently on vacation in Guatemala when I got a call from a customer about a 1.1-megawatt order for a solar carport project. He explained that the modules were delivered. They were the right wattage and brand, but the model was totally different. These modules were six inches shorter than what was ordered. This purchase came from overseas; it took four months to receive them. Exchanging them with the manufacturer wasn’t an option due to the project timeline.
That day, my team went to work to find an exact match module for the project specifications that could be delivered without delaying the project timeline. We took back the other modules from the customer and had the new order drop-shipped to his project site.
Getting in front of issues is always the best option for your customer. In this example, I couldn’t control the manufacturer or the amount of time it took to ship the modules from overseas. But I was there for my customer and worked to find an alternative solution.
EB: That’s a great story, and no doubt Alchemy is a reputable broker. Are there any red flags that buyers should be aware of when choosing a broker to partner with?
There are a few red flags that come to mind.
First let me say that there are many established brokers in the industry. These companies can provide business references and have excellent track records.
The absolute biggest red flag is when a ‘broker’ requires you to pre-pay for product before they have control of it. To illustrate what this looks like, say you pay me money for something, and I go to my supplier who no longer has it. Now I have your money, and you have no product. If I’m an honest person, I’d refund your money. Unfortunately, most cases don’t end that way.
To reduce your risk, do your due diligence. Ask your industry peers if they know who you’re about to do business with. If no one knows the broker, that’s a red flag. Ask for trade references. If the broker can’t provide any, that’s a red flag.
EB: What myth about solar equipment brokers do you want to debunk for our readers?
I want readers to stop thinking negatively of solar equipment brokers. In general, we think positively of real estate brokers and insurance brokers. Then there’s Amazon – the world’s largest broker. No one thinks twice about clicking that Pay Now button because Amazon offers better deals and service, and they save you time.
In the solar industry, I think the reason why companies like Alchemy are growing is because we’re able to find better deals for our customers, and we provide exceptional service.
EB: Alchemy has been a member of EnergyBin since 2022, your founding year. Tell us why you decided to join our exclusive B2B trading community.
Actually, I’ve been a member of EnergyBin since 2018. I joined back when I was working at Kinect Solar. Joining the community was a no-brainer for me. EnergyBin is a great fit for anyone in the industry who’s buying pallet quantities or more.
Last year, a friend of mine who’s getting into the solar industry asked me if he should join EnergyBin, and I told him to go for it – it’s a no-brainer. Not only can you buy and sell products on the platform, but you also meet other members who deal in PV hardware trade. You network and form relationships with other members. In this business, it’s all about relationships.
EnergyBin also provides us with access to market intelligence – for example, what products are available for sale, pricing, and what’s happening in the market. The platform is easy to use, and our account manager is super responsive to our needs.
We’ve also been able to re-engage with former customers on EnergyBin. For instance, if we haven’t heard from a customer in a while and see them send a Want-to-Buy broadcast on the platform, we reach out to ask if we can help with their need. EnergyBin is the centralized platform for PV professionals dealing in solar equipment.
EB: Thanks for that. Throughout this interview, you’ve emphasized the importance of relationships. What advice do you have for forming sustainable business relationships?
My advice is based on my sales experience, and this is the same advice I give to my sales team at Alchemy.
1. Dispel the scarcity mindset. The sales gig is tough sometimes, which can give way to urgent pressure to get the deal done. But if you’re operating in this mindset, it’s not going to end well.
2. Be patient with the process. It takes time and hard work to build new relationships. Plan to spend an average of 4-5 hours per day on outbound calls and expect at least six months before you have a steady income.
3. Pick up the phone and call people. Don’t cop out on this by just sending emails! A phone call makes it so much easier to have a real conversation.
4. Aim to have 10 meaningful conversations every day. If you consistently do this for a few months, you’ll see your relationships grow.
5. Do what you say you’ll do. Be honest and genuine.
Oftentimes, it’s just that basic. When you invest your time in building solid relationships where others can trust you, people respond positively to your efforts. They’ll want to do business with you.
Bonus: Some of these people will become your life-long friends.
A special thanks…
To Christian Adams, Founder & CEO of Alchemy Solar Distribution, for sharing about the benefits of working with a solar equipment broker.
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