6 Signs Your Solar Business Needs a Cloud ERP

Cloud ERP systems like ours (SolarSuccess) can transform solar businesses by solving common challenges like project management inefficiencies, financial disorganization, and inventory issues. Here’s a quick overview of the six signs that your solar business may need a cloud ERP system:

• Project Management Struggles: Difficulty managing multiple projects and resources effectively.
• Disorganized Financial Data: Financial information scattered across various platforms, causing errors and delays.
• Scaling Challenges: Existing systems can’t handle growth or new market demands.
• Inventory Issues: Poor stock management leads to delays and cost overruns.
• Slow Data Access: Lack of real-time reporting hampers decision-making.
• Document Management Problems: Reliance on paper-based systems slows operations and creates compliance risks.

What can our Cloud ERP SolarSuccess do?

• Reduce installation costs by $0.03–$0.05 per watt.
• Triple project throughput without adding staff.
• Improve materials accuracy by 20%.
• Shorten project-to-cash cycles by 40%.

If you’re facing these issues, an ERP system can centralize operations, automate workflows, and provide real-time insights to boost efficiency and profitability.

1. Project Management Issues

Problems with Manual Tracking

Managing complex solar projects becomes much harder with manual tracking. Keeping tabs on multiple cost categories like materials, labor, and overhead is a frequent obstacle, especially when juggling multiple projects that require detailed investor reporting ^[1].

“Solar installation has many moving parts, all generating soft costs, and there is no single application that solves them all, because you have to address inefficiencies across all functions of the entire company.”

• Aaron Casillas, Technology & Infrastructure Director ^[3]

Here’s what manual tracking often leads to:

These issues highlight the need for digital tools that simplify processes and improve efficiency.

Cloud ERP Project Tools

Cloud ERP systems provide real-time insights and better control. By integrating project data, these platforms simplify workflows and cut down on admin work. For example, Norwich Solar boosted profitability with SolarSuccess by gaining real-time visibility, which helped them make smarter pricing decisions and reduce accounting time for multi-entity clients ^[2].

Some of the key results include:

• Cutting project costs by 3–5¢ per watt
• Tripling project throughput without increasing office staff
• Improving materials accuracy by 20%
• Shortening the project-to-cash cycle by 40% ^[2]

“We’re doing more with the same number of people and we have a system that’s more reliable and less stressful than tracking a million different spreadsheets.”

• Joe Marhamati, Co-Founder & VP Ipsun Solar ^[3]

Titan Solar Power saved $0.04 per watt by automating transactions, while Ipsun Solar sped up payment cycles with automatic milestone-based invoicing ^[2]. Modern cloud ERP systems like SolarSuccess offer features like real-time cost tracking, automated workflows, mobile access, centralized document management, and integrated financial tools ^[2]. These capabilities allow teams to focus on delivering projects efficiently, leading to quicker completions and higher profits.

2. Limited Financial Control

Split Financial Systems

Disjointed financial systems create major hurdles for accurate reporting and cash flow monitoring. This is particularly challenging in the solar industry, where complex cost structures and multi-entity operations demand precision. Many solar companies operate with tight cash flow, making it essential for accounting teams to stay on top of accounts receivable ^[1].

“We had a project management system, a file storage system, an accounting system, and others. Sharing data across these systems was difficult, and in most cases our only way to ‘patch the holes’ was by adding labor.” – Aaron Casillas, Technology & Infrastructure Director ^[3]

Here are some common issues caused by split financial systems:

Switching to a unified platform can eliminate these challenges by centralizing financial data.

Single Financial Platform

A single financial platform is the solution to these problems. A unified cloud-based system provides real-time visibility and automation, which is especially beneficial for solar companies managing multiple projects under limited partnerships. Accurate tracking and investor reporting become much easier ^[1].

“Our financial close was incredibly complicated and fraught with errors because we have so many subsidiaries consolidating together. That problem has almost gone away completely. We can look at all of our subsidiaries as standalones or consolidate them into our main financials. That’s been incredibly useful from a financial planning standpoint.” – Spencer Newman, CFO, Norwich Solar ^[3]

Examples from the industry highlight the benefits. Ipsun Solar sped up receivables with automatic milestone-based invoicing ^[2], while Norwich Solar improved pricing and management decisions by gaining real-time insights into project profitability ^[2].

Key benefits of a unified financial platform include:

• Automated Workflows: Reduces manual tasks with milestone-based invoicing.
• Real-time Analytics: Provides instant access to critical financial data for better decisions.
• Streamlined Reconciliation: Simplifies managing multiple accounts and subsidiaries.
• Improved Cash Flow: Enhances control over receivables and payables.

Centralizing financial operations not only simplifies accounting but also boosts overall efficiency for solar businesses.

3. Growth Limitations

Old System Constraints

Older systems can hold solar businesses back, especially when scaling up. Spreadsheets and outdated tools often can’t handle the demands of managing multiple projects or expanding into new markets, leading to inefficiencies and missed opportunities.

Take Titan Solar Power as an example. They faced transaction bottlenecks that required additional office staff just to manage everyday tasks. By switching to a cloud-based solution, they cut costs by $0.04 per watt through better automation ^[2].

Some common challenges with older systems include:

These issues highlight why moving to a cloud ERP system can be a game-changer.

Cloud ERP Growth Support

Cloud ERP systems provide the adaptability and scalability businesses need to grow. They can handle increased demands without requiring significant infrastructure changes or causing downtime.

Norwich Solar is a great example. They used a cloud ERP system to consolidate an unlimited number of subsidiaries and significantly cut accounting time as their operations expanded ^[2]. This kind of scalability is especially important for projects involving multiple entities, each with its own bank accounts ^[1].

Key advantages of cloud ERP systems include:

• Automated Workflows: Boosts project throughput by 3X without adding more staff.
• Real-time Visibility: Cuts project costs by 3–5¢ per watt.
• Streamlined Operations: Reduces project-to-cash cycles by 40%.
• Improved Accuracy: Enhances material tracking by 20% ^[2]

4. Inventory Control Problems

Stock Management Issues

Managing inventory poorly can throw solar project timelines and budgets off course, especially when dealing with multiple partnerships and entities ^[1].

Here are some common inventory challenges and their effects:

These problems highlight the importance of using integrated tools that provide real-time updates, ensuring materials arrive when needed.

Better Stock Control

Improving inventory management can help align material availability with project needs. Cloud ERP systems are particularly useful, as they provide accurate, real-time inventory tracking. This helps solar companies maintain the right stock levels while navigating price changes ^[2].

Here’s how better stock control makes a difference:

• Improved Accuracy: Reduces errors by 20%, cutting down on overstock and shortages ^[2].
• Streamlined Procurement: Ensures materials arrive on time, keeping installation schedules on track ^[2].

5. Delayed Data Access

Split Department Data

When information is siloed across different systems within departments, it creates headaches for solar businesses. This disconnect slows processes, creates inefficiencies, and impacts both deadlines and profitability.

Here are some common data access challenges and their effects:

Norwich Solar faced these exact issues before adopting an integrated solution. Their team struggled to manage multiple entities and consolidate financial data, which delayed critical pricing and management decisions ^[2].

Switching to a unified system simplifies data collection and ensures everything is connected, improving overall efficiency.

Connected Data Systems

Connected data systems can completely change how solar companies handle and use essential business data. Ipsun Solar is a great example – they cut payment cycles significantly by using automated milestone-based invoicing tied to payment portals ^[2].

Some key advantages of connected systems include:

• Real-Time Project Visibility: Leaders can monitor progress without wading through endless reports.
• Automated Workflows: Speeds up approvals and eliminates paperwork bottlenecks.
• Unified Financial Tracking: Provides accurate insights into costs and profitability.

The results speak for themselves – companies have reported cutting project-to-cash cycles by up to 40% with automated, connected systems ^[2].

6. Document Management Gaps

Paper-Based Problems

Relying on paper-based systems can create serious challenges for solar businesses. Similar to how fragmented project and financial systems can stunt growth, outdated document management slows operations. Businesses often deal with scattered permit files, inconsistent filing methods, and manual tracking – all of which can lead to installation delays and compliance issues.

Switching from paper storage to a centralized digital system helps address these challenges.

Digital Document Control

Cloud ERP systems offer a solution by securely organizing all key documents in one place. For example, Ipsun Solar improved its solar permitting process by using the AHJ Registry for solar permitting, which simplified the management of permits and compliance records ^[2].

Here are some notable benefits:

• Automated Tracking: Cuts installation costs by 3–5¢ per watt ^[2].
• Centralized Access: Titan Solar Power reduced costs by $0.04 per watt through automated transactions and streamlined document management ^[2].
• Simplified Compliance: Norwich Solar improved operations across multiple subsidiaries by consolidating documentation ^[2].

These changes deliver measurable results:

Conclusion

Operational challenges often indicate the need for a cloud ERP solution like SolarSuccess. These examples highlight how cloud ERP systems can simplify workflows and fuel growth.

Titan Solar Power reduced costs by $0.04 per watt using automated transactions while keeping office operations lean ^[2]. Norwich Solar improved its pricing decisions with real-time profitability tracking ^[2].

By tackling hurdles like project management issues, financial oversight problems, growth bottlenecks, inventory mishaps, data lags, and document inconsistencies, cloud ERP addresses the key obstacles facing solar businesses. The results speak for themselves:

These numbers demonstrate how SolarSuccess can boost efficiency and elevate solar business outcomes ^[2].