Bulk buys are when a group of individuals or organisations come together to purchase products or services at a discounted price. The idea is to make solar power (or something else) more affordable by buying in large quantities.

The most common products are solar PV or solar hot water systems (although solar hot water is becoming less attractive compared to solar PV paired with heat pump hot hot water). More recently electric vehicle bulk buys have also become a thing.

Bulk buys can be organised by community organisations, local government, or private companies specialising in bulk solar buys. The scheme typically provides information and assistance as well as the product itself, such as helping participants understand the costs and benefits of solar power, and connecting them with suppliers and installers.

Benefits of arranging a bulk buy

• Lower prices: economies of scale drive prices down for participating customers. The MASH project (see project examples) advertises that prices are typically 15-20% lower than standard retail prices.
• Less hassle: Bulk buys dramatically reduce the burden of having to find and quality check the suppliers .
• Improved quality: Working with trusted suppliers can ensures high-quality products or services.
• Reliable delivery: A trusted supplier will be more likely to deliver on time and to the required standards.
• Better terms: Negotiating with suppliers for a large number of customers can lead to better payment terms and warranties.
• Strong relationships: Building strong relationships with suppliers through regular interactions and feedback can lead to better deals and better terms in the future.
• Return to the community: the group can collect a service fee for each sale. This can be structured in lots of ways, for example, MASH provides a free 5kW solar PV system to a local community group or school for every 100 homes installed.

Some challenges of arranging a bulk buy

• Risks: the group needs to do their homework to ensure high quality products and installation and high quality after sales service. This does not eliminate reputational risk if things go wrong. There are examples of bulk buys selecting suppliers who later go bankrupt or exit the market, thereby making warranties and after sales service very difficult. Financial due diligence checks are vital, but cannot eliminate such risks.
• Resource intensive: Bulk buys can be time-consuming, as you need to do product research, negotiation and evaluation of any offers.
• ‘Stealing the low hanging fruit’: if you arrange bulk buys for just the energy option with the most attractive business case, it may be harder for customers to later justify investing in measures with longer payback periods.

When is arranging a bulk buy a good choice?

• Bulk buys offer a high visibility, time limited initiative that can achieve a big impact . This can be good for putting a new group on the community’s radar.
• The group needs to have sufficient resourcing available to do product research, negotiation and quote evaluation. However, effort declines substantially with later repeats.
• It may also be possible for your group to partner with a third party with experience running bulk buys.

Project examples for arranging bulk buys

Willoughby Council (NSW): - Bulk buy scheme for solar panels and batteries. Willoughby residents can get discounted prices on solar panels, solar and batteries, or batteries alone.

More Australian Solar Homes (MASH) Bulk Buy project partnership between community energy group and council in Castlemaine, Victoria, which has facilitated 480 solar homes in less than 2 years

Hepburn Energy EV Bulk Buy - Community energy group bulk buy for EVs (in development)