Bulk and Group Purchasing

Bulk purchasing programs, also known as “collective purchase” or “group buy” programs, involve the purchase of large quantities of decarbonization-related products and services in order to capitalize on economies of scale and decrease the cost to homeowners.

Table Of Contents
  1. Why This Matters
  2. Policy Solution
  3. Model Policy Features
  4. Potential policy Drawbacks & Pitfalls
  5. Complementary Policies
  6. Examples
COMMUNITY BENEFITAffordability, Decarbonization
KEYWORDSDecarbonization, Financing, Electrification
REGIONState, Local
AFFORDABILITY STRATEGYResidential Decarbonization, Funding and Financing
OVERSIGHTState or Local Procurement or Contracting Offices
POLICY MECHANISMLegislation, Regulation

Why This Matters

The purchase of heat pumps, solar panels, and other residential decarbonization-related products and services can typically cost tens of thousands of dollars,1 even though many of these technologies will save money over time. Incentives and tax credits at the federal level that made the upfront costs of decarbonization more affordable have now been rescinded.2 Without grants, low- or zero-interest loans, rebates, or other financing mechanisms, decarbonization and weatherization can be out of reach for low- and moderate-income households.

Policy Solution

Bulk purchasing programs, also known as “collective purchase”3 or “group buy”4 programs, involve the purchase of large quantities of decarbonization-related products and services, such as heat pumps, solar components or installations, and weatherization services,5 in order to decrease the cost to homeowners.6 Bulk purchases capitalize on economies of scale and can typically result in volume discounts of 10-20%.7 Savings can be less or more depending on the number of participants. 

Such programs are generally implemented as three- to six-month campaigns8 sponsored by state or local governments, non-profit organizations, or other community-based groups.9 Savings to participants are achieved through reduced acquisition and marketing costs on the part of the contractor.10 The degree of administrative and promotional costs associated with campaigns can depend upon a number of factors, including a reliance on volunteers, but can range between $10,000 and $50,000, which can be funded through grants, general funds, or a small surcharge on participants.11 Once homeowners agree to participate, they sign a contract as they typically would for services received.

Model Policy Features

  • Includes provisions for bulk purchasing of one or more weatherization or decarbonization products or services, such as weatherization services, solar installations or components, heat pumps, and battery storage.
  • Vets contractors who are qualified to conduct cost-effective and timely installations through a competitive bidding process.12
  • May provide the option of a contractor reverse auction, where successful bidders are determined by the lowest price for services while ensuring quality products and services delivered with consumer protections.
  • Refers registrants or interested homeowners with homes that lack suitable roofs or in need of other structural improvements to qualified contractors and/or assistance programs to facilitate participation in the bulk purchasing program.
  • Refers registrants or interested homeowners to other incentive programs, rebates, and tax credits to further reduce costs.
  • Offers a no-cost, no-obligation registration process.
  • Includes a community engagement and education component to increase understanding of the benefits of decarbonization and electrification and engage the community in program operations.13
  • Provides transparent information about pricing, available discounts, financing options, expected payback period, and anticipated bill savings.
  • Makes technical assistance available to residents to support them through the procurement, financing, and installation process.
  • Easy-to-read and -understand contracts, with technical assistance provided.
  • Prioritizes contractors committed to workforce development or owned and operated by underrepresented groups. 14
  • Prioritizes outreach to low- and moderate-income groups to ensure equitable participation.15

Potential policy Drawbacks & Pitfalls

  • Although such programs can lower the price of residential decarbonization, services and products may continue to be unaffordable to low- and moderate-income households without additional funding or financing options.
  • Applicants may experience delays in purchases, services, or installations due to the time required to assemble a large enough group to make the acquisitions.
  • The administrative cost of campaigns may require additional funding for the sponsoring entity, whether a local or state government or a non-profit organization.

Complementary Policies

Complementary policies that can enhance the functionality of bulk purchasing policies include:

  • Community solar programs to facilitate access to solar energy for renters, those who cannot afford a rooftop solar installation, or those with roofs that are not suitable for a rooftop system.
  • Efficient residential electrification programs that provide financing for the adoption of heat pumps and energy efficient electric appliances.

Examples

1. Solarize Programs,16 Nationwide

Details:17

  • A solar bulk purchasing model implemented in communities across the country. 
  • Includes a competitive bidding process to identify contractors, community engagement, and a campaign ranging from three to six months.
  • Identifies the need to have tailored engagement and financing strategies to be inclusive of low- and moderate-income households.
  • Includes anticipated savings for residential solar purchases and installation of 10-20%.

Challenges:

  • Requires a local government, non-profit organization, or other entity to develop, implement, and manage the campaign.
  • Depending on the design of the campaign and workforce engaged in campaign implementation, administrative costs may be cost-prohibitive for some entities.
  • Requires local contractors with the skills and expertise to conduct the work in alignment with community priorities and values.

2. Grow Solar, Illinois, Missouri, Wisconsin, and Iowa

Details:18

  • Administered by the Midwest Renewable Energy Association, Grow Solar offers a solar bulk purchasing program. 
  • Offers residential and commercial services in partnership with local governments, utilities, and community groups.
  • Provides community education and outreach and technical assistance, including support in identifying and accessing additional financing options.
  • Includes free, no-obligation assessments for solar installations.
  • Some local group-buy campaigns feature community advisory boards that select contractors.

limitations:

  • Does not identify tailored incentives or financing options for low- and moderate-income households.

3.  Switch Together, Virginia

Details:

  • In 2026, Governor Abigail Spanberger announced that Virginia was the first state to offer the Switch Together program statewide as part of her Affordable Virginia Agenda.19
  • Switch Together is a partnership of Solar United Neighbors, the Midwest Renewable Energy Association, the Citizens Utility Board, and iChoosr,20 a private company operating in five countries.21
  • The program offers solar+storage purchase opportunities with free, no-obligation registration.22
  • Utilizes a reverse auction to identify contractors.23
  • As with other bulk purchasing programs, Switch Together offers a time-limited window for enrollment.24

Challenges:

  • Despite the announcement that the program would be available statewide, it is currently only being offered in a few Virginia counties.25
  • The program is currently limited to solar+storage installations. 26
  • Offers educational webinars but not more individually-focused education, outreach, and technical assistance.27
  • Does not offer repair services for those homes with inadequate roofs.28

Written: September 2026

  1. See, for example, Parkman, K. (2026). How Much Do Solar Panels Cost in 2026? Consumer Affairs and Rewiring America. Here’s how much heat pumps cost to install. Accessed: September 17, 2026. ↩︎
  2. See, for example, Nazaire, E. (2025). The One Big Beautiful Bill Act: Changing the landscape for US clean energy. Thompson Reuters. ↩︎
  3.  Efficiency Maine. Collective Purchase. Accessed: September 18, 2026. ↩︎
  4.  Midwest Renewable Energy Association. Grow Solar: Find a Group Buy. Accessed: September 18, 2026. ↩︎
  5.  A Climate To Thrive. Solarize & Weatherize Campaign. Accessed: September 21, 2026. ↩︎
  6. For descriptions of this approach, see Takemura, A. (2026). Want a deal on a heat pump? Team up with your neighbors. Canary Media and Citizens Utility Board. (2023). CUB Explainer: What is a solar group-buy program? ↩︎
  7. Takemura, A. (2026). Want a deal on a heat pump? Team up with your neighbors. Canary Media. ↩︎
  8.  Barbaro, D. (2026). Understanding How Solarize Energy Campaigns Work. Solar Review. ↩︎
  9. For an example of a collection of local solar bulk purchasing programs organized by a non-profit organization, see Midwest Renewable Energy Association. Grow Solar. Accessed: September 18, 2026. 
    For an example of a collection of local solar bulk purchasing programs organized by a non-profit organization, see Midwest Renewable Energy Association. Grow Solar. Accessed: September 18, 2026.
    ↩︎
  10. Barbaro, D. (2026). Understanding How Solarize Energy Campaigns Work. Solar Review. ↩︎
  11.  Brito, J. (2021). Solarize: the Grassroots Initiative that Cut Solar Costs up to 35%. EcoBlock ↩︎
  12. Hausman, N. and Condee, N. (2014). Planning and Implementing a Solarize Initiative A Guide for State Program Managers. Clean Energy States Alliance. ↩︎
  13. American Cities Climate Challenge. Procurement Guidance: Solarize. Accessed: September 18, 2026. ↩︎
  14.  Energy Efficiency and Conservation Block Grant Program. (2023). Key Activities Summary, Blueprint 3C: Solarize Campaigns. U.S. Department of Energy. ↩︎
  15. Energy Efficiency and Conservation Block Grant Program. (2023). Key Activities Summary, Blueprint 3C: Solarize Campaigns. U.S. Department of Energy. ↩︎
  16.  Energy Efficiency and Conservation Block Grant Program. (2023). Key Activities Summary, Blueprint 3C: Solarize Campaigns. U.S. Department of Energy. ↩︎
  17. American Cities Climate Challenge. Procurement Guidance: Solarize. Accessed: September 18, 2026. See also Energy Efficiency and Conservation Block Grant Program. (2023). Key Activities Summary, Blueprint 3C: Solarize Campaigns. U.S. Department of Energy. ↩︎
  18. Midwest Renewable Energy Association. Grow Solar. Accessed: September 21, 2026. ↩︎
  19. Governor Abigail D. Spanberger. (2026). Governor Spanberger Announces First-in-the-Nation Energy Affordability Initiative.  ↩︎
  20. Switch Together. Switch Together Virginia. Accessed: September 18, 2026. ↩︎
  21. Switch Together. Frequently Asked Questions. Accessed: September 21, 2026. ↩︎
  22. Switch Together. Switch Together Virginia. Accessed: September 18, 2026. ↩︎
  23.  Switch Together. How Does Switch Together Work?. Accessed: September 21, 2026. ↩︎
  24. Governor Abigail D. Spanberger. (2026). Governor Spanberger Announces First-in-the-Nation Energy Affordability Initiative. ↩︎
  25. Switch Together. Switch Together Virginia. Accessed: September 18, 2026. ↩︎
  26. Switch Together. Switch Together Virginia. Accessed: September 18, 2026.  ↩︎
  27. Switch Together. How Does Switch Together Work?. Accessed: September 21, 2026. ↩︎
  28.  Switch Together. How Does Switch Together Work?. Accessed: September 21, 2026. ↩︎