Photos courtesy of Demand Construction: Demand Leadership (from left to right), Harrison Reid, VP of Sales; Chase Hamiter, VP of Sales; Karl Johnstone, CRO; Damla Bahlounian, CMO; Hosep Bahlounian, President; Jack Patterson, Director of Brand; Jorrel Patterson, CEO; Nathan Roberts, Chief Experience Officer.
The solar industry, once seen as a shining beacon of hope for sustainable energy, now seems to be weathering a never-ending storm of instability, particularly in California where the aftershock of Net Metering 3.0’s passing with major utilities has been evident for the past year. Homeowners in major utility markets like Los Angeles, Orange County, and San Diego are witnessing a tumultuous period marked by the collapse of several major solar installers, stringent financing options, and evolving regulations. However, in the midst of this chaos, some solar installers have emerged as resilient and forward-thinking companies, seemingly prepped and ready to navigate these challenges with a steadfast and unique approach and robust foundation- Demand Construction is one such company that is turning heads in the industry.
It’s no secret to those that are in the loop with the green energy ecosystem that residential and commercial solar installation have experienced a significant upheaval in recent years. Financing options for solar projects have become increasingly restrictive, creating barriers for both installers and homeowners. The collapse of one of the largest solar companies in the nation, serves as an austere reminder of the volatility in this sector. Solar companies, once considered too big to fail, have shuttered their operations, leaving a gap in the market and raising concerns about the future of solar energy as a viable option for the nation’s future. However, paradoxically, the adoption of solar has been at all time highs across the board, with solar installations outgrowing predicted expectations by almost 100% in the past year alone (source: IEA; Energy Institute; BloombergNEF)
California is markedly unique as one of the states with the greatest demand for renewable energy. The “Golden State”’s power infrastructure is threadbare and gluttonous, as utility rates continually reach historic highs and policies continue to constrain those connected to the grid. The introduction of Net Metering 3.0 in California has further obfuscated the regulatory landscape from a solar perspective. This regulation, which requires the integration of battery storage with major utilities, caught many solar installers off guard. Companies that lacked proficiency in battery installation found themselves struggling to meet the new requirements, leading to increased operational costs and project delays. The market, heavily reliant on third-party ownership (TPO) financing, faced additional pressure as financing companies continually tightened their approval processes, further straining the industry’s capacity to sustain growth.
One company, however, has navigated these challenges with strategic foresight. By maintaining a lean operation and focusing on efficient project management, Demand Construction has been able to sustain its growth even in the face of financial pressures.
“The storm started with NEM 3.0—a lot of companies suffered after that law passed. After one year the industry started to gain stability, but it never went back to normal,” reflects CRO, Karl Johnstone.
Amidst this turmoil, Demand has uniquely positioned itself as a beacon of stability and innovation with their operations. Based in California, active in California, Texas and Florida, the company was inadvertently designed to thrive in this new regulatory environment. Demand’s existential focus on quality service, battery proficiency, and competitive pricing has allowed it to not only survive, but blossom in unexpected ways as they continue to expand their operations.
At a glance, the company’s leadership is a key factor in its resilience, each leader bringing a unique brand of their own magic to the equation. The executive team includes CEO, Jorrel Patterson; President, Hosep Bahlounian; CRO, Karl Johnstone; CXO, Nathan Roberts and CMO, Damla Bahlounian, piece by piece bringing over a decade of experience in the solar industry from renowned companies like Freedom Forever, ESP, Better Earth, and Nation Energy Services. Veteran owned, Demand also takes great pride in Hosep Bahlounian’s history as an honorably discharged former marine. Bahlounian’s military background instills a sense of discipline and commitment to excellence that permeates the company’s culture to its core.
An ingredient to the company’s continued success at this time seems to lie in their passion for navigating the axis between being approachable and accessible; placing a strong emphasis on customer service and communication, and ensuring that homeowners and sales representatives alike can easily reach executives when needed. “With (Demand), there’s never a situation where you aren’t able to talk to executives at the company—we always make ourselves available,” says CMO, Damla Bahlounian, “We’ve always wanted to offer more of a mom and pop approach rather than something distant and corporate with how we view our relationships. Things are more futuristic than ever right now- when I call a lot of places it’s a robot that answers… We want to make sure people know we’re human beings at the end of it all; not machines.” Their model of ‘open chain of command’ is a stark contrast to the often impersonal approach of larger organizations.
As an axiom of profit and scalability in enterprise, many companies cut corners to reduce costs in their respective industries; solar is no exception. Installers will often opt for what makes them the most money, quickest: cheaper, less durable panels and inverters with remarkably higher degradation, which hurts their clients down the road, and often leads to financial insolvency for the company itself. Repeat offenders have hopped from one shipwreck of a company to another, in a cash-grab game of hopscotch, leaving aggrieved homeowners and a tarnished reputation for solar as a whole in their wake. “At the end of it all, it’s really simple- We are taking a long term approach with our customers and partners – we are the change needed in the solar industry.”, says CEO, Jorrel Patterson.
Demand takes the opposite approach to most EPC’s with their model, with a steadfast focus on ethics. Most of the products Demand uses are American made, and all equipment and personnel working with the company are thoroughly vetted. Their commitment not only supports domestic manufacturing but also ensures that the products used in Demand’s installations meet their elevated standards. Furthermore, the company’s focus on quality extends to every aspect of the company’s operations, from the materials used, to the back end operations, install service, and the training provided to new, customer-facing representatives – a testament to their exceptional online ratings and customer referrals.
Looking to the horizon, the leadership at Demand Construction is not merely content with surviving the current challenges. The company is slated to expand its operations and increase its market presence. “We are bigger than nearly every company in our space was, at the same stage and age – and it’s a symptom of our resolution to putting the customer first… by continuing to do that we believe we will be the largest in a fairly short amount of time,” says Patterson. Their greater vision includes becoming a fully vertically integrated company, where everything from the panels to racking is proprietary, produced in-house, and delivered directly to their clientele.
One of the cornerstones of Demand Construction’s strategy is its commitment to training and development, according to Patterson, “Our #1 core value is ‘DWYSYGTDWYSYGTDI’ or ‘Do what you say you’re going to do when you say you’re going to do it”. The company offers some of the best training programs in the industry for new employees and representatives, ensuring that they are well-equipped to provide high-quality service. This foundational focus on training with customer facing representatives (who in many cases do not have experience) is not just about improving technical skills but also about fostering a culture of excellence and customer care.
In a sector where many companies have faltered, Demand Construction stands out for its dedication to quality, customer service, and sustainable growth. With a unique and diverse leadership team, a commitment to American-made products, and a strategic approach to financial challenges, Demand has positioned itself as a resilient player in the competitive Southern California market. Its ability to adapt to regulatory changes and maintain high service standards has earned the company an A+ Better Business Bureau accreditation and a 4.8-star rating on Yelp.
Amid the solar industry’s challenges, Demand Construction offers hope for a stable, ethical, and sustainable future, charting a course for long-term success. For homeowners in California looking to save money with solar energy, Demand Construction represents one of the most reliable and forward-thinking partners in the journey towards sustainable living.
