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Sharing Profits to Engage Your Team

This topic came up last week with a client. (Actually, this comes up with almost every client.)

Sharing Profits to Engage Your Team

 

This topic came up last week with a client. (Actually, this comes up with almost every client.)

 

They struggle to know and identify the key metrics. These will give them something to focus on so they can decide what to share. They want to share the profits, but it can be confusing.

This will change the dynamics in your company. It will also inspire motivation and focus for the team.

 

“Give me an example”, is what I get asked.

 

When we sell something, we assign costs to come up with a selling price.

The difference between what we sell something for and our cost is the gross profit (GP).

 

Let’s walk you through some calculations on GP, Labor, SalePrice and Cost.

 

You can use any example for any work that you do. Whether you are selling just your time or selling your time and materials (a solar project), the rules are the same.

 

Example: 6kW residential solar project at $2.50/W

 

Sale Price: $15,000 (6kW x $2.50)

Cost: $10,000 (This is what it cost you to do the work, turnkey)

GP (Gross profit) = Sale - Cost = $15,000- $10,000 = $5,000

GP/Man-Hour = GP/ Man-Hour = $5,000/ 24 (hours to do the work) = 208.33

GP% = GP/Sale * 100 = $5,000/$15,000 * 100 = 33%

 

Ok, we have those basic calculations.

 

If you know you make $5,000 on each project like this, how many do you need to do in a month to cover your overhead? Once this is covered, you will then know how much you can share.

 

And on the labor, if you create metrics, like the 208.33, then you can start to group projects into categories. Like in this example, you would be able to communicate to the team, that these kinds of projects have this kind of “score”.

 

When I say score, I’m using a sports analogy. Sports are littered with metrics, but the one we all pay attention to is the score. During the game and at the end of the game. It is a way to tell us how we are doing. Use this same metaphor in your company.

 

Back to sharing profits.

 

What can you share or what do you want to share?

 

Some basic guidelines:

 

1.    Know your GP goals as they will drive a lot of what you do; you will be able to predict what a good job is going tobe and how many jobs in that category will cover your overhead for the month/quarter/year.

2.    Cultivating ownership thinking takes time.Education and adoption is slow. However, you will sculpt your next generation of future leaders in your orbit. Make the time to go over this with your team.They will then know what is at stake and either participate in the group and its success or you will find new team members that want to be part of your tribe. This is about everyone’s future.

3.    Track the numbers like a pro sports coach. The math will be your flag to follow. People can debate your style of leadership and management, but the math will be the equalizer to getting the team focused on the right activities and direct the company towards solidarity.

4.    Set aside 33% (or about 1/3 of what you make to pay the taxes (or determine what this number needs to be- ask your accountant).Out of what is left, can you share the rest 50%-50% with the team? Consider investing a percentage back into the company for the rainy-day fund and other activities.

5.    Make GP your “religion”. People often needs rules to govern how we live and behave. When there is money left over after each project (profit), then you can do more. You can pay better salaries.Better benefits. Be able to serve your clients 24/7. Attract top people. More for community projects that are important to you.

 

Lastly, when your team is focused on these metrics, itallows you, the owner to focus on long term strategy. It also gives you time off. Most business owners that I know and work with, often wish for this morethan anything. Working Monday to Sunday is not fun. It makes you question why you got into the business in the first place.

 

 

Increase your gross profits by using Chilicon Power micro-inverters and cortex gateway. Install half the micros and get off the roof fast. Your team will be more energized and you can share those profits with them.

 

About product

Microinverters CP-720

Overview

Chilicon Power CP-720 inverter performance leads the industry with sustained power production of 720 watts AC which provides well scaled output power compatibility for 60-cell (series), 72-cell (series), 96-cell (parallel), or 128-cell (parallel) modules up to 860W DC. Grid-interactive conversion occurs with a CEC rating of 96% with peak efficiency of 96.6%. The inverters are Rule-21 compliant and can provide reactive power on demand.

Reliability is provided through design that has all components rated to at least 200,000 hours service lifespan (or about 50 years of operating time). Firmware provides high frequency grid monitoring to ensure safe operation during any anomalous events. Surge protection to 6000VAC is integrated and the inverter enclosure and inputs are galvanically isolated from the grid connection to provide the ultimate safety barrier.

Magnetic component optimization and on-line adaptive switching techniques maximize efficiency and reduce cost. Chilicon inverters have been designed ground-up to provide reliability, efficiency, and lean construction to provide customers with the best possible inverter solution for their power generation project.

The Power Line Communication (PLC) technology was developed from the ground up and offers the best robustness of any PLC system, vastly superior to the competition. It is so robust that the Gateway can be installed anywhere in the house. This saves on installation costs.

General Features

  • 25 year standard warranty
  • 60-cell, 72-cell, 96-cell, 128-cell module compatibility in the same device.
  • 240VAC and 208VAC
  • UL1741SA-Rule-21, IEEE std 1547, IEEE std C62.41.2, CSA C22.2 NO. 107.1 & CISPR 22 Class B
  • NEC 690.12 Rapid Shutdown Compliant
  • Designed and manufactured in California, USA

Technical Overview

  • Efficiency: 96% CEC, 96.6% Peak
  • Output Power: 720VA Max
  • Recommended max input power: 2 x 430 W

Features

  • Robust and secure adaptive rate communication
  • On-line switching optimization
  • Wide-band harmonic suppression
  • MPPT Range: 57 - 82V (240V); 48.5 - 82V (208V)
  • Remote firmware upgrade
  • Reactive Power from 60% leading to 60% lagging

Reliability by design:

  • No electrolytics
  • Thermal management without potting

Resources

About product

Microinverters CP-250E

Overview

Chilicon Power CP-250E inverter performance leads the industry with sustained power production of 289 watts AC which provides well scaled output power compatibility for 60-cell and 72-cell modules up to 345W DC STC. The CP-250E has extended input voltage range and supports 72-cell (CP-250E) modules. Grid-interactive conversion occurs with a CEC rating of 96% with peak efficiency of 96.6%. The inverters are Rule-21 compliant and can provide reactive power on demand.

Reliability is provided through design that has all components rated to at least 200,000 hours service lifespan (or about 50 years of operating time). Firmware provides high frequency grid monitoring to ensure safe operation during any anomalous events. Surge protection to 6000VAC is integrated and the inverter enclosure and inputs are galvanically isolated from the grid connection to provide the ultimate safety barrier.

Magnetic component optimization and on-line adaptive switching techniques maximize efficiency and reduce cost. Chilicon inverters have been designed ground-up to provide reliability, efficiency, and lean construction to provide customers with the best possible inverter solution for their power generation project.

The Power Line Communication (PLC) technology was developed from the ground up and offers the best robustness of any PLC system, vastly superior to the competition. It is so robust that the Gateway can be installed anywhere in the house. This saves on installation costs.

General Features

  • 25 year standard warranty
  • 60-cell and 72-cell module compatibility with same device (CP-250E)
  • 240VAC and 208VAC
  • UL1741, IEEE std 1547, IEEE std C62.41.2, CSA C22.2 NO. 107.1 & CISPR 22 Class B
  • NEC 690.12 Rapid Shutdown Compliant
  • Designed and manufactured in California, USA

Technical Overview

  • Efficiency: 96% CEC, 96.6% Peak
  • Output Power: 285W Max (Ext. Range Enable)
  • Recommended max input power: 330W

Features

  • Robust and secure adaptive rate communication
  • On-line switching optimization
  • Wide-band harmonic suppression
  • MPPT Range: 22 - 38.5V
  • Remote firmware upgrade
  • Reactive Power from 85% leading to 85% lagging

Reliability by design:

  • No electrolytics
  • Thermal management without potting

Resources and links

About product

Cortex GATEWAY

Overview

The GATEWAY monitoring system communicates with Chilicon microinverters, consumption monitoring clamps, and other smart home devices. It can be cloud interconnected or can run stand-alone. The GATEWAY provides a 7" 800 x 480 LCD Touch Screen making it informative and easy to use. Commissioning of the solar array's configuration occurs on the gateway screen and site configuration is automatically posted to cloud.chiliconpower.com when a customer enables cloud interaction. There is no need to use a laptop to connect the customer's site to the cloud since registration details are filled out on the touch-screen directly. PV array topology is also organized on the touch screen which enables single-step setup and verification of the system.

Powerline communication with the GATEWAY uses a sophisticated multi-rate, error-resistant, and encrypted powerline communications technology to connect to each microinverter without additional wiring. In addition, every inverter is part of a mesh network where each one can also act as a repeater, thereby extending the range and ensuring reliable communication in any situation.

In addition to the power line communications interferace to inverters, the GATEWAY also has a Z-Wave (908 MHz) wireless interface that enables power consumption monitoring via current clamps placed in any utility panel. Ethernet and WiFi are integrated in every gateway.

Features

  • Plug & Play setup
  • Wi-Fi Enabled for easier installation
  • Communicates over existing electrical wires
  • Remote-control login
  • Secure Encryption to retain privacy
  • Multi-rate, Error-Resistant Technology
  • 255 microinverters per Gateway
  • Stand-alone mode for privacy

Home Automation - Home Security

In addition to solar monitoring, the Gateway is also capable of being the home security center of the home controlling Z-Wave sensors and Sirens. The Gateway Home Security center is fully featured with user management, status, arm away, arm stay and loggin of any relevant information to the security of the home. This enables installers to sell new features and differentiate themselves further to win more contracts.

Privacy & Security

The GATEWAY can optionally work in complete stand-alone mode where no data is transfered to the cloud. This means complete privacy of your data since it remains on your GATEWAY at home or in the office. Exporting data to the Cloud server ensures full data backup on a regular basis.

The security of one's power generation and consumption data is important (since it is an indication of occupancy and type of devices that you may be running in your home or office). All of our data transfers from the microinverters to the GATEWAY and from the GATEWAY to the Cloud are securely encrypted.

Resources

zWave Device Compatibility

  • Aeon Labs Home Energy Meter Gen5, ZW095-A
  • Aeon Labs Siren Gen5, ZW080-A17
  • Aeon Labs Door/Window Sensor Gen2, DSB29-ZWUS
  • Aeon Labs Range Extender/Repeater Gen 6, ZW117-A01 (908.42 MHz)
About product

CSIP Aggregator Server CP-1000

Overview

The GATEWAY monitoring system communicates with Chilicon microinverters, consumption monitoring clamps, and other smart home devices. It can be cloud interconnected or can run stand-alone. The GATEWAY provides a 7" 800 x 480 LCD Touch Screen making it informative and easy to use. Commissioning of the solar array's configuration occurs on the gateway screen and site configuration is automatically posted to cloud.chiliconpower.com when a customer enables cloud interaction. There is no need to use a laptop to connect the customer's site to the cloud since registration details are filled out on the touch-screen directly. PV array topology is also organized on the touch screen which enables single-step setup and verification of the system.

Powerline communication with the GATEWAY uses a sophisticated multi-rate, error-resistant, and encrypted powerline communications technology to connect to each microinverter without additional wiring. In addition, every inverter is part of a mesh network where each one can also act as a repeater, thereby extending the range and ensuring reliable communication in any situation.

In addition to the power line communications interferace to inverters, the GATEWAY also has a Z-Wave (908 MHz) wireless interface that enables power consumption monitoring via current clamps placed in any utility panel. Ethernet and WiFi are integrated in every gateway.

Features

  • Plug & Play setup
  • Wi-Fi Enabled for easier installation
  • Communicates over existing electrical wires
  • Remote-control login
  • Secure Encryption to retain privacy
  • Multi-rate, Error-Resistant Technology
  • 255 microinverters per Gateway
  • Stand-alone mode for privacy

Home Automation - Home Security

In addition to solar monitoring, the Gateway is also capable of being the home security center of the home controlling Z-Wave sensors and Sirens. The Gateway Home Security center is fully featured with user management, status, arm away, arm stay and loggin of any relevant information to the security of the home. This enables installers to sell new features and differentiate themselves further to win more contracts.

Privacy & Security

The GATEWAY can optionally work in complete stand-alone mode where no data is transfered to the cloud. This means complete privacy of your data since it remains on your GATEWAY at home or in the office. Exporting data to the Cloud server ensures full data backup on a regular basis.

The security of one's power generation and consumption data is important (since it is an indication of occupancy and type of devices that you may be running in your home or office). All of our data transfers from the microinverters to the GATEWAY and from the GATEWAY to the Cloud are securely encrypted.

Resources

zWave Device Compatibility

  • Aeon Labs Home Energy Meter Gen5, ZW095-A
  • Aeon Labs Siren Gen5, ZW080-A17
  • Aeon Labs Door/Window Sensor Gen2, DSB29-ZWUS
  • Aeon Labs Range Extender/Repeater Gen 6, ZW117-A01 (908.42 MHz)
About product

Modular Trunk Cabling

Overview

The trunk cabling portion of a microinverter system is extremely important since it directly impacts labor costs at an installation site. The Chilicon modular trunk and branch cabling system incorporates industry standard 10 AWG VNTC tray cable with a UV and cut resistant outer jacket. Each 'modular' component of the the 4 conductor cableplugs together right on the job site. For the first time, you can mix landscape and portrait mode PV module layouts side-by-side on the same string. In addition, the trunk cable is 'Self-Terminating' as shown in the figure below. There is no longer a need to procure 'termination caps' for the end of each microinverter string.

The trunk cable's 10 AWG cabling enables use of 30 A OCP devices (typically a 2 pole circuit breakers). This means that 20 CP250e devices running 289W output can be wired on a single 30 A string in 240V split phase mode, or 18 CP250e devices running 277W output can be wired on a single 30A string in 208V three phase mode. In the case of the 720W output, CP-720 device, 8 inverters (16 modules) can be wired to a 30A breaker in 240V split phase mode, or 7 inverters (14 modules) in 208V three phase mode. See the CP-250E Datasheet or the CP-720 Datasheet for detailed current and voltage scaling information.
see self-terminating layout
Click here for a more detailed Diagram of the modular trunk cable components and a self-terminating layout. Note that wiring for CP-720 twin inverters has special considerations. Examples of common configurations can be found in CP-720 Wiring Diagram Examples.  Note that to land the MTC cable in a JBOX, the MALE end of any cable (MTC-1.025, MTC-1.7, MTC-2.15) can be cut and have its wires stripped back. Chilicon also stocks a HR-1.7 cable with pre-cut ends.

Integrated Grounding

Chilicon Power inverters feature Integrated (DC isolated) Ground. Because the DC circuit is isolated and insulated from ground, these microinverters do not require a Grounding Electrode Conductor (GEC) connected between each microinverter. This means you don’t need to attach a separate copper grounding conductor to each microinverter or worry about a continuous run to ground.

Electrical code requires two types of grounding conductors: the Grounding Electrode Conductor (GEC), which is used between the grounding electrode and the point where a normally current carrying conductor is intentionally bonded to ground and the Equipment Grounding Conductor (EGC), which grounds noncurrent carrying metal parts of the system, such as the racking and module frames. Because Chilicon Power microinverters have DC integrated (isolated) ground, they do not require a GEC. However electrical code still requires that exposed metal in the array be grounded (NEC 690.43 and 250.136(A)). This requirement is met for the microinverter because the ground conductor internal to the modular trunk cable acts as the EGC. It may be met for racking and modules with use of an EGC or WEEBs to provide bonding to this ground system.

Trunk Cable Part Numbers

  • MTC-1.025  (1.025 meter modular trunk cable)
  • MTC-2.15 (2.15 meter modular trunk cable)
  • MTC-1.7 (1.70 meter modular trunk cable)
  • MBC (0.65 meter modular branch cable)
  • MTC-HR-1.7 (1.7 meter open ended home run cable for JBOX connection)

Accesories

  • T6 Male Cap (Covers Open T Junction Socket)
  • T6 Female Cap (Covers Open T6 Male Plug)
  • AC-TOOL (Modular Trunk Cable Unlocking Tool)
  • DC-TOOL (DC Connector Unlocking Tool)
  • Tape-Roll  (10' Silicone Self-Adhesive Tape Roll -- Secures T6 Caps; Recommend one roll per every 4 T6 caps)
see cables schemes