Shoals Bundle
Who are Shoals' Customers?
Understanding customer demographics is key in the booming renewable energy sector. For Shoals Technologies Group, a provider of electrical balance of system (EBOS) solutions, this knowledge is crucial for sustained success. Founded in 1996, the company transitioned from automotive components to the solar industry in 2002.
Shoals' evolution into a comprehensive EBOS solutions provider for utility-scale solar, battery storage, and EV charging showcases its adaptability. This strategic shift positions them to capitalize on the growing energy transition market.
What is Customer Demographics and Target Market of Shoals Company?
Shoals' primary customers are developers and owners of utility-scale solar projects. These are typically large energy companies, independent power producers (IPPs), and infrastructure funds that manage substantial solar farms. The company also serves commercial and industrial (C&I) solar developers, though utility-scale remains its core focus. Their target market includes entities seeking integrated EBOS solutions that streamline installation, enhance reliability, and reduce overall project costs. This often involves customers looking for a single, trusted partner for critical electrical components. The company's offerings, such as its Shoals PESTEL Analysis, are designed to meet the demanding requirements of these large-scale projects, emphasizing efficiency and long-term performance. In 2024, the company reported that approximately 80% of its revenue came from utility-scale projects.
Who Are Shoals’s Main Customers?
Shoals Company's primary customer base consists of businesses within the renewable energy sector. These clients are predominantly solar developers, Engineering, Procurement, and Construction (EPC) firms, and utility companies. Their focus is on developing and executing large-scale solar farms and energy storage projects.
Utility-Scale Solar Developers
These are major players in the renewable energy infrastructure. They are responsible for the planning, financing, and construction of large solar power plants.
EPC Firms
Engineering, Procurement, and Construction companies manage the entire lifecycle of renewable energy projects. They require reliable components for efficient project execution.
Utility Companies
Utilities are increasingly integrating renewable sources into their energy grids. They seek robust solutions for managing and distributing solar and storage energy.
Battery Energy Storage Solutions (BESS) Providers
This segment is a growing focus, with companies specializing in energy storage systems. Shoals provides components essential for the integration and operation of BESS.
The company's reach extends to over 62 GW of solar systems globally, underscoring its significant market penetration. Beyond its core utility-scale solar market, Shoals is actively expanding into new and emerging sectors. This includes providing components for Battery Energy Storage Solutions (BESS) and serving as an Original Equipment Manufacturer (OEM) for the broader global energy transition. A notable area of recent expansion is the datacenter market, where quoting activity has seen a substantial year-over-year increase, indicating a promising new avenue for growth and diversification. As of June 30, 2025, the company's backlog and awarded orders reached $671.3 million. International markets represent over 13.2% of this total, reflecting a strategic push to broaden its market penetration and diversification efforts across international, Commercial & Industrial (C&I), BESS, and OEM segments, thereby expanding its total addressable market. Understanding Target Market of Shoals is crucial for grasping its strategic positioning.
Emerging and Diversified Markets
Shoals is strategically broadening its customer base beyond traditional utility-scale solar. This diversification aims to capture growth in related and new energy sectors.
- Battery Energy Storage Solutions (BESS)
- Original Equipment Manufacturer (OEM) components
- Datacenter market
- Commercial & Industrial (C&I) projects
- International markets
Shoals SWOT Analysis
- Complete SWOT Breakdown
- Fully Customizable
- Editable in Excel & Word
- Professional Formatting
- Investor-Ready Format
What Do Shoals’s Customers Want?
The customer needs and preferences for Shoals Company are centered on improving efficiency, ensuring safety, and maximizing the performance of large renewable energy projects. Customers prioritize these aspects, understanding the significant financial and safety implications of system failures. Shoals Company addresses these core requirements through its innovative solutions.
Efficiency and Safety Focus
Customers seek solutions that boost project efficiency and guarantee safety. They recognize that failures can lead to substantial revenue loss and potential hazards.
Streamlined Installation
A key purchasing driver is the desire for simplified installation processes and reduced labor expenses. Shoals' 'plug-and-play' EBOS systems facilitate this.
Reduced Labor Costs
The use of general labor instead of specialized electricians, enabled by push connectors, significantly cuts down installation time and associated costs.
Optimized Site Layouts
Eliminating costly trenching and utilizing prefabricated components further accelerates installation, directly addressing labor shortages in the solar sector.
Long-Term Reliability
High-quality design, rigorous factory testing, and premium materials foster customer loyalty by ensuring dependable, long-lasting solutions.
Product Development Feedback
The company actively integrates customer input into product development, leading to innovations for diverse applications and panel configurations.
The Shoals Company customer profile indicates a strong preference for solutions that offer tangible benefits in terms of operational efficiency and safety, often outweighing initial cost considerations. This is particularly true for projects designed for longevity, where the total cost of ownership and reliability are paramount. Understanding these customer needs and preferences is crucial for identifying the Shoals Company target market segments. The company's approach to product development, as detailed in its Brief History of Shoals, directly reflects a commitment to meeting these evolving demands.
Key Customer Motivations
Customers are driven by the need to enhance project efficiency and ensure the safety of their renewable energy installations. Reliability and safety are prioritized over initial price points.
- Increased installation efficiency
- Improved system performance and reliability
- Reduced risk of equipment damage and injury
- Long-term operational stability
Shoals PESTLE Analysis
- Covers All 6 PESTLE Categories
- No Research Needed – Save Hours of Work
- Built by Experts, Trusted by Consultants
- Instant Download, Ready to Use
- 100% Editable, Fully Customizable
Where does Shoals operate?
Shoals Company has a significant geographical market presence, with a dominant position in the United States. The company holds an estimated 30% market share in the utility-scale electrical balance of system (EBOS) sector within the U.S.
U.S. Market Dominance
Shoals' solutions are integral to major U.S. solar markets. Utility-scale solar projects accounted for approximately 75% of total megawatts installed in the U.S. in 2023, highlighting the company's embeddedness in this key sector.
International Expansion Focus
The company is actively pursuing international expansion, targeting regions such as Latin America, Australia, and EMEA. As of June 30, 2025, international markets represented over 13.2% of its total backlog and awarded orders, valued at $671.3 million.
Localized Offerings
To cater to diverse global needs, Shoals localizes its product offerings. New ranges of combiner boxes are being manufactured in Europe and Australia to meet specific regional demands and delivery expectations.
Strategic Global Wins
Recent successes, like the Maryvale Solar and Energy Storage Project in Australia announced in August 2025, demonstrate the effectiveness of its global outreach strategy.
Shoals is also strategically expanding its domestic market penetration by focusing on smaller-scale solar projects. This initiative is projected to increase its Total Addressable Market (TAM) by an estimated 10%, broadening its customer base and market reach. Understanding the Marketing Strategy of Shoals is key to appreciating its market penetration efforts.
U.S. Utility-Scale Leadership
Shoals holds a significant 30% market share in the U.S. utility-scale EBOS sector. This leadership is built on providing essential components for solar installations.
International Growth Drivers
Latin America, Australia, and EMEA are key target regions for international expansion. International backlog and awarded orders reached over 13.2% of the total by mid-2025.
Market-Specific Product Development
Localization of products, such as combiner boxes manufactured in Europe and Australia, ensures alignment with regional delivery expectations and market-specific needs.
Expanding TAM Domestically
Targeting smaller-scale solar projects domestically is a strategy to increase the Total Addressable Market (TAM) by 10%.
Global Project Footprint
Strategic wins in international markets, like the Australian project in August 2025, validate the company's global expansion efforts.
Customer Profile by Geography
The Shoals Company customer profile includes major solar developers and EPCs in the U.S., with a growing segment of international clients in key renewable energy markets.
Shoals Business Model Canvas
- Complete 9-Block Business Model Canvas
- Effortlessly Communicate Your Business Strategy
- Investor-Ready BMC Format
- 100% Editable and Customizable
- Clear and Structured Layout
How Does Shoals Win & Keep Customers?
Shoals Company employs a robust strategy for customer acquisition and retention, focusing on product innovation, strategic partnerships, and exceptional service. Direct sales efforts and alliances, such as the collaboration with First Solar for U.S. manufacturing, are key acquisition drivers. The company also actively engages potential clients at industry events like Intersolar Europe and RE+.
Direct Sales and Strategic Partnerships
Acquisition is heavily reliant on direct sales teams and cultivating strategic alliances. A notable example is the partnership with First Solar, aimed at boosting U.S.-based solar production.
Industry Engagement and Promotional Tactics
Participation in major industry conferences, such as Intersolar Europe and RE+, serves to connect with international developers and EPC contractors. Promotional pricing and product mix adjustments are also used to expand the customer base.
Product Reliability and Integrated Solutions
Customer retention is significantly bolstered by the high quality and reliability of its electrical balance of systems (EBOS) products. These solutions are critical for the long-term performance and safety of solar installations.
Diversification and Market Penetration
The company is actively diversifying its market reach into international, commercial and industrial (C&I), battery energy storage systems (BESS), and original equipment manufacturer (OEM) sectors. This expansion is supported by dedicated leadership for international business.
The company's strong backlog and awarded orders, totaling $671.3 million as of June 30, 2025, underscore sustained customer demand and loyalty. Shoals differentiates itself by offering comprehensive, integrated system solutions that include engineering, design, and installation support, simplifying complex project needs for its clients. Continuous investment in research and development to introduce cost-reducing and efficiency-improving innovations further solidifies its customer acquisition and retention framework. Understanding the Competitors Landscape of Shoals is also crucial in appreciating these strategies.
Product Innovation
Continuous investment in R&D to develop solutions that lower costs and improve efficiency for customers.
Integrated System Solutions
Offering a complete package including engineering, design, and installation support to simplify customer project requirements.
Market Diversification
Expanding penetration into international, C&I, BESS, and OEM markets to broaden customer base.
Revenue Visibility
A robust backlog of $671.3 million as of June 30, 2025, indicates strong future demand and customer commitment.
Customer Loyalty Drivers
High product quality and reliability are central to retaining customers and ensuring long-term project success.
Sales Tactics
Utilizing promotional pricing and product mix adjustments to attract new customers with the aim of developing higher-margin relationships.
Shoals Porter's Five Forces Analysis
- Covers All 5 Competitive Forces in Detail
- Structured for Consultants, Students, and Founders
- 100% Editable in Microsoft Word & Excel
- Instant Digital Download – Use Immediately
- Compatible with Mac & PC – Fully Unlocked
- What is Brief History of Shoals Company?
- What is Competitive Landscape of Shoals Company?
- What is Growth Strategy and Future Prospects of Shoals Company?
- How Does Shoals Company Work?
- What is Sales and Marketing Strategy of Shoals Company?
- What are Mission Vision & Core Values of Shoals Company?
- Who Owns Shoals Company?
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.