María José Soto García, founder of Neofunnel, a marketing agency specialized in renewable energy companies, describes this growth as a “perfect storm,” where factors like the European Union’s 2030 Agenda, subsidies, and high energy costs from the war in Ukraine all came together.

This context favored the massive entry of new players into the sector, many of whom saw business opportunities in the residential and self-consumption sectors. However, the increase in competition also brought new challenges.

From her experience as a marketing consultant, she highlights that “with the decline in demand, companies are facing market saturation where service quality and adaptability become decisive factors.”

In a context where the installed capacity in self-consumption fell by 28% in 2023 compared to the previous year, according to the APPA Renovables report, the challenge for these companies is to remain competitive through customer acquisition and retention strategies.

In an interview with Energía Estratégica España, the executive suggests “adopting sales funnel strategies” so that companies with the best service can survive and thrive by adapting to current customers and understanding changes in their behavior.

These types of market techniques allow companies to capture leads from the earliest stages of customer interest.

“It’s crucial to generate demand and guide potential customers through an educational process about the benefits of renewable energy,” says Soto García, “because currently many consumers have doubts or misinformation about the advantages of photovoltaic and renewable energy.”

In this sense, the creation of informative and educational content takes on particular importance, not only as a tool for customer acquisition but also as a means of raising awareness and educating users on the positive impact these technologies have on energy independence and sustainability.

“We need to start talking about benefits beyond the price, such as energy independence and reducing the carbon footprint,” the specialist explains.

A company’s ability to survive in a highly competitive market largely depends on its ability to tailor its message to the current state of the customer.

Soto García observes that, in the current context, communication strategies should move away from focusing on subsidies and immediate savings and instead address the deeper needs and concerns of consumers.

“Customers are no longer as willing to invest just for the sake of saving. There is growing demand for information on topics like environmental impact and independence from large energy companies,” points out the consultant.

She also mentions that one of the most common mistakes in the sector is applying a uniform customer acquisition strategy without considering the level of knowledge and needs of each segment.

She recommends creating different resources for each customer profile and establishing communication that guides potential customers through a “ladder of awareness,” from the earliest stages of curiosity to the purchase decision.

This approach allows companies to maintain continuous contact with customers, facilitating lead retention through emails and targeted campaigns based on their interests.

She also notes that many companies have made the mistake of “investing large amounts in advertising campaigns without a clear return objective.” In fact, she has seen cases where customer acquisition costs reach 500 euros per lead, which is unsustainable in such a competitive market.

Looking to the future: a restructuring market

With a 26% slowdown in the pace of self-consumption installations and a projection for normalization in the coming years, Soto García predicts that only the most prepared companies, with effective marketing strategies and a clear understanding of market needs, will be able to sustain themselves in the long term.

“The market is cleaning up,” she states, emphasizing that the strongest players will be those who have managed to professionalize their marketing strategies and adapt their messages to the current customer profile.

Additionally, the possibility of exploring new niches, such as energy communities and storage, offers a diversification path for companies looking to differentiate themselves and add value.