While franchises are a common sight — fast food restaurants, oil change shops and hair salons are around every corner — the franchise model isn’t prevalent in the solar industry. There are many national installation brands, but they use that name recognition to keep things under one banner. Or mom-and-pop shops pride themselves on their small size and dedication to their communities. Astrawatt Solar (No. 227 on the 2023 Top Solar Contractors List) has found that franchising keeps the best of both sides — local business owners get the support of a larger brand while still providing solar customers with a close-to-home experience.
“Our goal is to be the largest solar sales and installation company through a network of franchisees in the country, and within probably five to six years we should be able to achieve that,” said Astrawatt CEO Keith Murphy.
It’s quite the bold, yet still attainable, goal from a company that began in a Kansas City, Missouri, garage in 2016. That’s when Murphy decided to use his years of installation experience to start his own solar business. From the beginning, he wanted to do things differently.
“We’re not pushy salespeople. We don’t put out misleading advertisements. Our approach is truly a consultative approach,” he said. “We sell solar, obviously, but it’s more so helping customers through their journey, answering their questions, making sure they understand the federal tax credit.”
With Astrawatt’s humble beginnings — Murphy was at one time mowing lawns on the side to make money for marketing — the company was able to build a strong foundation in the community and has plenty of glowing customer reviews online. Astrawatt has been featured on the Inc. 5000 list for the last three years and is one of the fastest-growing companies in Kansas City. This success led Murphy to open additional Astrawatt locations in St. Louis and Houston, while still holding on to the same mission.
“We’ve grown pretty fast and quite a bit,” he said. “And our five-star reviews haven’t faltered because of it, which is something we’re very proud of.”
Astrawatt’s Houston location is co-owned by Tyler Tucker, a former solar colleague of Murphy’s who reached out and asked to partner in Texas. Tucker was ready to start his own solar business, but Murphy already had that strong foundation. It would be easier to partner than to start from scratch. It was only after successfully operating the Houston branch for a few years that someone pointed out that it was operating like a franchise.
“I went through this mentorship program, and my mentor asked if we’d ever thought about franchising. I was like, ‘No, that’s dumb. Why?’” Murphy said. “He’s like, ‘Well, your Houston location is pretty much a franchise.’ Wow, it is, isn’t it? It’s working. We didn’t even know what we were doing. That was the nudge — we’re going to start franchising.”
The Astrawatt franchise program was unveiled in early 2022, and franchisees are already set up in Oklahoma, New York, Tennessee, Florida and Arizona — with more starting the process right now. Murphy said he’s only aware of a few other solar franchises, but Astrawatt appears to be the only that got its start in the solar industry rather than as a franchise business model.
Astrawatt receives multiple franchisee requests each day, but all applicants are vetted to ensure they fit the Astrawatt brand. Franchisees are required to be vertically integrated to provide sales and installation — no subcontracting. Before unveiling the franchisee to the community, the new sites have to complete the Astrawatt training program, which covers every position, from sales to marketing and project management to installation. In addition, franchisees are encouraged to attend Solar Energy International and NABCEP courses.
“Our goal is simple: stay true to our values and our mission to provide better experiences,” Murphy said. “And [we] offer a solution to people that want to get in the solar industry, where they can get access to financing and vendor and manufacturer relationships, and our processes, branding, training.”
The franchise model has allowed Astrawatt to grow without losing sight of its mission. Murphy himself couldn’t operate an Astrawatt branch in New York while living in Missouri and continue to provide customers with the proper solar experience.
“The main attraction for us to become a franchisor was local ownership and having someone who not just wants to succeed but is invested in succeeding. Their livelihood is on the line, just like my livelihood is on the line as a small business owner,” he said. “We don’t want people just punching the clock as a manager of a location. Local ownership is the most important factor in how customers are being treated. The process isn’t being handled by a project manager in Phoenix; it’s being managed by someone who is your neighbor.”
Murphy is continuing to focus on the day-to-day operations of the original Astrawatt branches, but he expects the franchise side to soon require more of his attention.
“My goal was never to become a franchise; it just happened to work out that way,” he said. “It’s been really cool to see.”
This story was featured exclusively in our 2023 Top Solar Contractors issue. See the issue and full list of top U.S. solar installers here.
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