How to Read a Solar Proposal: A Line-by-Line Breakdown of Every Number

I review solar proposals for a living, and I can tell you the average homeowner reads maybe three numbers on the page: the monthly payment, the "total savings," and the system size. Those are the three the installer WANTS you to focus on. The numbers that actually determine whether you're getting a fair deal are buried below.

Here's every line that matters, top to bottom.

## 1. System size (kW DC)

The direct-current rating of your system, e.g. 8.4 kW. This is the honest measure of how much equipment you're buying. Memorize it — every other number should be sanity-checked against it.

## 2. Price per watt ($/W)

The single most important number, and it's almost never printed. Calculate it yourself: **total system cost ÷ (system size in kW × 1000)**. An $28,000 quote on an 8.4 kW system = $3.33/W. Florida fair market in 2026 is ~$2.80/W. That gap ($0.53/W × 8,400 W = $4,452) is your markup.

## 3. Total system cost (gross)

The price before any incentives. This is what you're actually paying for. Watch for proposals that ONLY show the "net" number after tax credit — they're hoping you forget the credit isn't guaranteed money in hand until you file taxes.

## 4. Federal tax credit (30%)

Should be a clearly labeled line: 30% of gross system cost, applied when you file. On a $23,500 system that's $7,050. If your proposal shows the net price as if the credit is automatic, ask them to break out the gross and the credit separately.

## 5. Net cost after incentives

Gross minus federal credit minus any state/utility rebates. This is your true out-of-pocket if paying cash. For most FL homeowners there are no state rebates, so net = gross × 0.70.

## 6. Financing: APR, term, and dealer fee

Three sub-numbers: - **APR** — should be 5.99-7.99% in 2026. Above that is a red flag. - **Term** — 10, 15, 20, or 25 years. Longer = lower payment but way more interest. - **Dealer fee** — THE hidden one. Solar lenders charge installers a fee to "buy down" the displayed APR. That fee (often 15-30% of the loan) gets baked into your system price. A "0.99% APR" loan often hides a 25% dealer fee, meaning your $23,500 system was quoted at $29,375. Always ask: "What's the cash price vs the financed price?" If they differ, the difference is the dealer fee you're paying.

## 7. Monthly payment

What you'll actually pay. For a lease, check the next line carefully.

## 8. Escalator (lease/PPA only)

The annual percentage your payment increases. **This should be 0%.** Anything above 0% (commonly 2.9-3.9%) compounds over 25 years and can nearly double your payment. A $145/mo lease at 2.9% becomes $295/mo by year 25.

## 9. Year-1 production estimate (kWh)

How much electricity the system will generate. Divide your annual utility usage (on your bill) by this number — it should cover 90-110% of your usage. If the proposal promises 130% coverage, they're overselling system size to inflate the price. If it covers only 60%, you'll still have a big utility bill on top of your solar payment.

## The distraction numbers (ignore these)

- **"25-year savings: $94,000!"** — based on aggressive utility-rate-hike assumptions. Real but inflated. Don't let it anchor you. - **"Environmental impact: 142 trees planted equivalent"** — nice, irrelevant to price. - **"Lifetime value"** — marketing math.

## The 30-second proposal audit

1. Calculate $/W (line 2). Above $3.20 in FL? Markup. 2. Find the escalator (line 8). Above 0%? Walk or renegotiate. 3. Check cash price vs financed price (line 6). Different? That gap is dealer fee. 4. Confirm production (line 9) covers 90-110% of your usage.

If all four check out, it's probably a fair deal. If any fail, you're likely overpaying.

## Want me to do it for you?

Send me your proposal PDF and I'll mark up all 9 lines within 24 hours — tell you exactly what's fair and what's padding. Free, any installer. [solarfying.com/review](https://solarfying.com/review).