Introduction to bulk-buy programs

Donna Luckman • 20 May 2020

Author: Sarah Morton

You can organise bulk-buy for any product or service. It's where several people group together to get things at a lower price - by buying in bulk. Bulk-buys are becoming more common, particularly to promote renewable energy installations.

1. What can I bulk-buy?

You can bulk-buy many goods and services. Solar power system installations are the most common sustainable technology bulk-buy, while solar water heater (SWH) systems and batteries, are also popular. But you can apply the same concept to energy efficient lighting, insulation and many other sustainable products.

Some groups have done a number of bulk-buys, for the same or different technologies.

2. Why should I start a bulk-buy program?

You can use a bulk-buy project to promote community renewable energy installations. Common aims are to:

  • take advantage of Government assistance for renewable energy installations
  • overcome information barriers (too little or too much information and lack of technical confidence) through community education and support decision-making through access to credible, accurate information
  • provide greater value for money for the community
  • help build local sustainability capacity.

There may also be other benefits such as:

  • saving money for individual members or a community group
  • providing a service for group members
  • supporting the wider community through free installations on public buildings.

3. Who organises bulk-buys?

In most cases, local councils or community organisations, such as local sustainability groups or climate action groups.

4. How do bulk-buys work?

There are many different ways to run bulk-buys, but they all involve people getting together to buy things (either goods or services) at a lower price per unit. A bulk-buy group may be less hands-on, and simply promote information about an offer. Or it may be more hands-on, and take on many of the functions a supplier would normally perform, such as:

  • sourcing equipment
  • administering rebates and Renewable Energy Certificates (RECs)
  • managing finances
  • delivering equipment
  • performing installations.

Generally speaking, the more active the organising group are, the greater the discount they can achieve for their participants, or the greater the benefit for the community as a whole.

5. Who benefits?

The bulk-buy model works to benefit the people involved — often in the form of discounted installations. But there may also be benefits to particular community organisations. For example, a supplier may install a free system on a community building, in exchange for a certain number of paid installations. Some groups have retained part or all of the value of the RECs, and used this to cover administration costs or provide seed funding for other projects.