How to make a great solar proposal?

New solar entrepreneurs often get confused when designing their first solar proposal for a client.

The right design that includes all the aspects can convert the prospect into a customer.
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Therefore, a solar proposal is an important draft for any solar entrepreneur, new or experienced.

I am writing this post for my friends who are new to the solar business.
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Let us write down the points while drafting a solar proposal.

1. Go for a personal meeting

A good solar proposal includes equipment sizing, designing the system, costing, and the financial return.

All this requires a good number of questions from the client.

Talking to your prospects over the phone and asking for details may annoy them and make them disinterested.

A personal visit to the client’s place gives you the actual picture.
Therefore, in your first call, ask for a personal meeting with the client.

In case he insists on remote communication (Due to the Pandemic).

Then it is better to ask a few questions over the phone and e-mail the remaining ones to answer in a day or two.
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Let me write the relevant questions that you need to ask or write in the e-mail.

• Provide a copy of the latest electricity bill/ what percent of energy needs he wants a solar power system
• Days of battery backup (if required)
• Shade-free roof area in m² or ft²
• Direction and the condition of the roof
• Budget
• Expected time going solar
• Own or loan or mix

I am writing this post for my friends who are new to the solar business.
​
Let us write down the points while drafting a solar proposal.

2. High electricity prices and escalation

The average annual escalation in the last 10 years in my area is 5%.

The present grid rate is Rs. 7 per unit.

After 25 years, I would pay close to Rs. 24 for the same unit I am paying Rs. 7 today.

And

It makes sense to switch to solar now.

Highlight this price escalation in your solar proposal.

This will create a sense of urgency.

​Delay in switching to solar means paying more to the grid for the same units consumed.

3. Size and design the solar power system

After taking inputs from the client, start sizing and designing the solar power system based on his energy needs.

For example, the client lives in a sunshine region with good Peak Sun Hours, and his daily energy needs are 20 units.

In that case, a 5-kW solar power system is the right choice to fulfill his energy demands.

You can size other components like batteries, solar charge controllers, solar inverters, and wiring.

The solar feasibility spreadsheet does this effectively, and you can size the complete solar power system in minutes.

​(The solar feasibility spreadsheet considers all the factors such as sunshine, degradation in solar panels, LID losses, loss due to temperature rise, dirt de-rating factor, shading loss, conversion losses, transfer losses, and more while sizing and designing the solar power system).

4. Add the cost breakup in your solar proposal

After sizing, provide the cost breakup of the proposed solar power system, including your installation charges.
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The cost heads in any solar power system are:

• Cost of the panels
• Inverter cost
• Cost of the Batteries
• Solar charge controller cost
• Racking and mounting structure with wiring and other connectors
• Permit charges
• Installation charges
• Transportation charges

Mention equipment brands of the proposed solar power system.
It gives a fair idea to the prospect about the system cost.

5. Mention the financial benefits in the solar proposal

The solar proposal is incomplete without the financial benefits.
These benefits help in deciding on going solar.

Most solar installers include only payback (in years).

Did you know that the payback period does not consider the time value of money?

The future financial benefits might get diminished due to inflation.

Therefore, I say it is not the complete metric for finding the return from the solar power system.

Financial metrics such as the Internal Rate of Return (IRR) and Net Present Value (considers the time value of money) are a more comprehensive and accurate method of finding the system return.

Include financial terms like:

• Payback
• The units produced in 25 years
• IRR and net savings in 25 years.
• Cost of solar electricity, and more

​The solar feasibility spreadsheet considers all the relevant variables and finds the system’s return.

6. Offer multiple financial options for Solar

The solar power system is an investment and not everyone can afford or like to invest 100% equity.

Therefore offering multiple investment options with different debt-equity mixes would be a great idea.

Also, mention the expected return in each case.

Such as:

• 100% equity (highest return)
• 100% loan (least return)
• 50% equity and 50% loan (moderate return)

List some of the best banks or NBFCs that can offer solar loans to clients.

​He would be delighted to get this financial comparison.

7. Facility of Net-Metering

Mention the benefit of net-metering with the solar power system.

In net metering, the excess units produced by the solar power system are fed to the grid which is deducted from the total units consumed, and the client gets the reduced bill.

For example, the monthly consumption of a house is 1000 units.
A 5-kW solar power system generated 600 units in a month.

• Grid units consumed 600 units
• Solar units consumed 400 units
• Unconsumed solar units 600 – 400 = 200 units

8. Mention your company in the solar proposal

Write a brief about your company.

Mention the following things in the solar proposal:

• Year of establishment
• Mission
• Vision
• Number of installations
• Services and service locations

Don’t worry even if you are a 1-day-old company.

This detailed and well-drafted solar proposal makes you stand on par with experienced giants of the solar industry.

Show your enthusiasm, professionalism, and devotion to work with the client in the first personal meeting.

The newbie solar entrepreneurs can also tie up with experienced installers initially.

Complete one or two installations assisting them.

These 200 solar units are fed to the grid and deducted from the 600 grid units consumed.

​The consumer gets an electricity bill on 600 grid units – 200 solar units = 400 units.

9. Offer after-sales service

Always include after-sales service in the solar proposal.

It benefits both

First, it gives peace of mind to the client that you are there if anything goes wrong.

Understand you are new in the business and likely to make mistakes during installations.

Second, this after-sales service contract gives you the chance to rectify the mistakes and build trust with the client.

​Finally, the client will eventually forgive you for the minor design errors that you rectified in after-sales service and will appreciate you for your committed service.

10. Add customer reviews

Adding customer reviews to the solar proposal is always a good idea.

List the happy customers in the neighborhood so that the client may ask and inquire about your credentials.

And

be genuine.

Solar is a long-term business where you and your client would be interacting for years.