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// Skill profile

Solar Installation Business Operations

Complete operational knowledge base for residential and commercial solar installation companies. Covers system design, permitting, sales, installation management, financing, and growth.

by 1kalin · published 2026-04-01

开发工具数据处理
Total installs
0
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★ 0
Last updated
2026-04
// Install command
$ claw add gh:1kalin/1kalin-afrexai-solar-installer
View on GitHub
// Full documentation

# Solar Installation Business Operations

Complete operational knowledge base for residential and commercial solar installation companies. Covers system design, permitting, sales, installation management, financing, and growth.

Industry Overview

  • US residential solar market: $30B+ annually, 700K+ installations/year
  • Average residential system: 8-12 kW, $2.50-$3.50/watt installed
  • 30% federal ITC (Investment Tax Credit) through 2032
  • 12,000+ solar installers in the US
  • Growth rate: 20-25% annually

    • System Design & Engineering

    Residential Systems

  • Site assessment: roof age, orientation, shading analysis (Aurora Solar, Helioscope)
  • Panel selection: monocrystalline (21-23% efficiency) vs polycrystalline (17-19%)
  • Inverter types: string ($1,000-2,000), microinverters ($150-250/panel), power optimizers ($50-80/panel)
  • Battery storage: Tesla Powerwall ($12,000-16,000), Enphase IQ ($15,000-20,000)
  • System sizing: annual kWh usage / (365 × peak sun hours × system efficiency 0.78)
  • Design software: Aurora Solar ($250-500/mo), Helioscope ($200/mo), OpenSolar (free tier)

    • Commercial Systems

  • Flat roof: ballasted racking, 10-15 degree tilt
  • Typical size: 50-500 kW
  • PPA structures: $0.08-0.14/kWh, 20-25 year terms
  • Interconnection: utility coordination, net metering vs feed-in tariff
  • Demand charge reduction: pair with battery for peak shaving

    • Permitting & Compliance

    Federal

  • ITC: 30% tax credit (residential + commercial through 2032)
  • Adders: +10% domestic content, +10% energy community, +20% low-income
  • IRS Form 5695 (residential), Form 3468 (commercial)

    • State & Local

  • Permits required: electrical, building, sometimes structural
  • AHJ (Authority Having Jurisdiction) varies by municipality
  • Typical permit cost: $200-$1,500
  • Plan sets: site plan, electrical single-line diagram, structural attachment details
  • SRECs (Solar Renewable Energy Credits): varies by state ($10-$400/MWh)
  • Net metering policies: state-specific, track NEM 3.0 changes

    • Interconnection

  • Utility application: pre-construction approval required
  • PTO (Permission to Operate): final utility sign-off, 2-8 weeks typical
  • Meter upgrade may be needed for systems >10 kW

    • Sales & Customer Acquisition

    Lead Sources

  • Door-to-door: $0.50-2.00/door knocked, 1-3% close rate
  • Digital marketing: $50-200 per qualified lead
  • Referrals: lowest cost ($0-500 incentive), highest close rate (40-60%)
  • Partnerships: roofers, realtors, home builders
  • Lead buying: $20-80/lead (shared), $100-300/lead (exclusive)

    • Sales Process

    1. Initial consultation (15-30 min phone/video)

    2. Site survey (drone or in-person, shade analysis)

    3. Custom proposal: energy offset, savings projection, financing options

    4. Contract signing: include change order process, warranty terms

    5. Typical sales cycle: 2-6 weeks residential, 2-6 months commercial

    Proposal Software

  • Aurora Solar (design + proposal), Enerflo, Solo, Sunbase
  • Include: system size, production estimate, 25-year savings, financing comparison
  • Always show: cash purchase vs loan vs lease vs PPA side-by-side

    • Pricing Strategy

  • Cost-plus: total cost + 20-35% margin
  • Market-based: competitive analysis by zip code
  • Average residential gross margin: 25-35%
  • Average commercial gross margin: 15-25%
  • Adders: battery (+$10K-20K), panel upgrade (+$0.10-0.30/W), critter guard ($500-1,500)

    • Financing

    Residential Options

  • Cash purchase: highest ROI, 6-10 year payback
  • Solar loan: $0 down, 12-25 year terms, 4-9% APR (GoodLeap, Mosaic, Sunlight Financial)
  • Lease: customer pays fixed monthly, no ownership
  • PPA: pay per kWh generated, no upfront cost
  • Dealer fees: 15-30% of project cost (baked into loan rate)

    • Commercial Options

  • PPA: most common, off-balance-sheet
  • Capital lease: ownership at end of term
  • PACE (Property Assessed Clean Energy): repaid through property tax
  • MACRS depreciation: 5-year accelerated + bonus depreciation

    • Installation Operations

    Crew Structure

  • Install crew: 3-4 people per residential job (1 lead installer, 2-3 helpers)
  • Electrician: licensed, for panel/inverter/meter work
  • Target: 1-2 residential installs per crew per day

    • Installation Timeline (Residential)

    1. Permitting: 1-4 weeks

    2. Equipment procurement: 1-2 weeks

    3. Roof install: 1-2 days

    4. Electrical: 0.5-1 day

    5. Inspection: 1-2 weeks

    6. PTO: 2-8 weeks

  • Total contract-to-PTO: 6-16 weeks

    • Equipment & Inventory

  • Keep 2-4 weeks of panel inventory
  • Racking: IronRidge, Unirac, SnapNrack
  • BOS (Balance of System): conduit, wire, disconnects, monitoring
  • Fleet: box trucks or trailers with roof racks

    • Quality & Warranty

  • Workmanship warranty: 10-25 years (industry standard)
  • Panel warranty: 25-30 years (manufacturer)
  • Inverter warranty: 12-25 years
  • Document everything: photos before/during/after, torque specs, wire labels

    • Team & Compensation

    Key Roles

  • Sales reps: $60K-120K OTE (base + commission 5-10% of contract)
  • Install lead: $55K-80K + performance bonus
  • Installer helper: $35K-55K
  • Project coordinator: $45K-65K
  • Electrician: $60K-90K (or subcontracted $75-150/hr)
  • Design engineer: $55K-85K

    • Certifications

  • NABCEP PV Installation Professional: gold standard, increases close rate
  • OSHA 10/30: required for job sites
  • State electrical license: required for electricians
  • Manufacturer certifications: Tesla Powerwall, Enphase, SolarEdge

    • Financial Benchmarks

    Revenue Per Install

  • Residential: $25,000-$50,000
  • Commercial: $100,000-$2,000,000+
  • Battery add-on: $10,000-$25,000

    • Cost Structure (Residential)

  • Panels: 25-30% of project cost
  • Inverter/BOS: 10-15%
  • Labor: 10-15%
  • Permitting/interconnection: 3-5%
  • Sales/marketing: 15-25%
  • Overhead/G&A: 10-15%
  • Net margin (healthy): 8-15%

    • Key Metrics

  • Cost per watt installed: track monthly
  • Customer acquisition cost (CAC): target <$3,000
  • Install time per kW: benchmark efficiency
  • PTO timeline: track bottlenecks
  • Net Promoter Score: target 60+
  • Referral rate: target 30%+

    • Growth Playbook

    Phase 1: Foundation (0-50 installs/year)

  • Focus on residential in 1-2 markets
  • Build referral network: roofers, electricians, realtors
  • Nail the install process before scaling
  • Get NABCEP certified

    • Phase 2: Scale (50-200 installs/year)

  • Add dedicated sales team
  • Digital marketing: Google Ads, solar review sites
  • Subcontractor network for overflow
  • Add battery storage as standard offering

    • Phase 3: Expansion (200-500 installs/year)

  • Enter commercial market
  • Multiple crews running simultaneously
  • In-house design and engineering team
  • Regional expansion or franchise model

    • Phase 4: Market Leader (500+ installs/year)

  • EPC for commercial/utility scale
  • O&M (Operations & Maintenance) recurring revenue
  • White-label installer for national brands
  • Energy storage and EV charging integration

    • Common Pitfalls

  • Underestimating permitting timelines (varies wildly by AHJ)
  • Over-reliance on dealer fee financing (margin erosion)
  • Not tracking cost-per-watt by project (can't optimize what you don't measure)
  • Ignoring roof condition (warranty liability if roof fails)
  • Poor change order management (scope creep kills margins)
  • Not building recurring revenue (O&M, monitoring, battery upgrades)

    • ---

    Resources

    Build your AI-powered solar business operations:

  • [AI Agent Context Packs](https://afrexai-cto.github.io/context-packs/) — Industry-specific AI agent configurations ($47/pack)
  • [AI Revenue Leak Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/) — Find where your solar business is losing money to manual processes
  • [Agent Setup Wizard](https://afrexai-cto.github.io/agent-setup/) — Deploy AI agents for your solar company in minutes

    • Built by [AfrexAI](https://afrexai-cto.github.io/context-packs/) — AI Data Automations

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