In solar sales, the proposal is the most tangible document the customer is left holding. Customers often collect proposals from several companies and lay them side by side. The proposal that stands out in that comparison is not simply the cheapest one; it is the one that explains most clearly what is being offered, why, under which assumptions and on which terms. In this guide we cover the sections a good solar proposal should contain, how to state production and savings assumptions, pricing, validity and revision management, and follow-up after the proposal is sent.
A 10-point checklist for a good proposal
- Cover and company details: Company name, logo, contact details, proposal number and date. The proposal number is the basis for tracking revisions.
- Customer and project details: Customer name, installation address, subscriber type, roof or land information.
- System summary: System type (grid-connected, off-grid, hybrid, agricultural irrigation), installed capacity (kWp), number of panels, inverter power.
- Layout visual: How the panels are placed on the roof or land. The customer should see what will be installed and where.
- Production estimate: Estimated monthly and annual production (kWh), the data source and the losses assumed.
- Savings and payback analysis: Comparison with the current bill, estimated savings and payback period, together with all assumptions.
- Bill of materials: Brand, model and quantity of panels, inverters, mounting structure, cables, switchboards and protection devices.
- Price table: Prices per item or per group, currency, taxes and payment plan.
- Scope and exclusions: Which work is included in the price (installation, design, application procedures, transport) and which is not.
- Terms: Validity period, delivery time, warranty terms, payment terms, and a clause on exchange rates and price changes.
The order of these sections can change with the customer type. For a residential customer the savings and payback section comes to the front, while an industrial customer's technical team may want to see the datasheets and the bill of materials in detail.
State production and savings assumptions clearly
The kWh and savings figures in a proposal are estimates. A large share of later disagreements with customers comes from not writing down which assumptions the estimate is based on. State at least the following in the proposal:
- Source of irradiation data: For example a database such as PVGIS and the location used.
- System losses: How temperature, cable, inverter, soiling and shading losses are handled. A production estimate given without shade analysis can produce a figure that has no basis on site; see our shade analysis guide for details.
- Annual degradation: The rate assumed for the decline in panel output over the years.
- Consumption profile and self-consumption rate: How much of the energy produced will be used on the spot and how much will be exported to the grid.
- Unit price and price increase assumption: The electricity unit price used in the calculation and the assumption made for future price changes.
- Net metering terms: How exported energy is credited depends on current regulations and the distribution company's terms; state this as an assumption in the proposal rather than as a firm commitment.
We explain how the payback period is calculated in detail in our payback period article. Presenting savings as an "estimate" rather than a "guarantee" is both honest and protective for your company.
Pricing: from cost to sales price
A sound price starts with adding up every cost item completely:
- Materials: Panels, inverters, mounting structure, cables, connectors, switchboards, protection devices, earthing and consumables.
- Labour: Installation crew, electrical work, testing and commissioning. High roofs, scaffolding or crane requirements should be assessed separately.
- Logistics: Freight, handling to the site, travel and accommodation for the crew.
- Design and application procedures: Time spent on engineering, drawings and official procedures.
- Profit: The company's target profit.
Margin and markup are not the same thing
A common mistake is to add 20% on top of cost when the target is "20% profit". With example values: if the cost is 100,000, a 20% markup gives a sales price of 120,000, but the margin is 20,000 / 120,000 ≈ 16.7%. If you really want a 20% margin on the sales price, the price must be 100,000 / 0.80 = 125,000. Make clear within the company which method you use; otherwise the sales team will quote below target without realising it.
Currency and exchange rates
The cost of items such as panels and inverters is often in foreign currency. State in which currency the proposal is given, if foreign-currency items were converted, which rate on which date was used, and how any exchange rate difference on the payment date will be handled. If you offer payment by credit card, also decide how the commission cost is reflected in the price.
Managing discounts
Discounts are inevitable in sales conversations. Defining in advance which sales representative may give discounts up to which rate prevents the margin from melting away at the table.
Validity period and revisions
Because material prices and exchange rates change, every proposal should have a clear validity period. When the customer asks for changes, revise the proposal and give it a revision number instead of writing a new document. That way it is always clear which version was sent to the customer, why the price changed and which proposal is the latest valid one. An expired proposal should not be processed without being reconfirmed at current prices.
Common mistakes
- Quoting without a site survey, or with an incomplete one. A design that does not fit the site leads to costly revisions later; our site survey form guide covers this step.
- Writing the production estimate without accounting for shading and losses.
- Leaving the scope vague, for example not stating whether "installation included" covers transport, scaffolding or application procedures.
- Sending a proposal without a validity period and an exchange rate clause.
- Different sales representatives preparing proposals with different templates and calculations.
- Not following up after the proposal is sent.
Follow-up and customer approval
Sending the proposal is not the end of the sale; it is the middle. Calling the customer within a few days to answer questions is the most effective way to clarify the proposal. Record the customer's approval or rejection with the date and, where available, the reason. Over time, the reasons for rejected proposals (price, brand preference, timing) become valuable data for improving your pricing and product choices. An approved proposal is the starting document for the contract, the work plan and material preparation; if that transition does not require re-entering data by hand, the risk of errors drops.
Preparing proposals with PVAGE
In PVAGE, a proposal starts with choosing the system type (grid-connected with net metering, off-grid, hybrid, agricultural irrigation). You add items from the catalogue by category, and labour and logistics items are included as well. Profit and discount are set per line, and a discount authorisation threshold can be defined. The proposal can be prepared in TRY, USD or EUR using the Central Bank of the Republic of Türkiye exchange rate, and a card commission can be added. Revisions and the validity period are tracked. You can set the order and visibility of the cover, environmental impact, solar map, financial analysis, bill comparison, main proposal, attachments, datasheet, thank-you and pro forma sections, and you can produce the proposal and pro forma in English. Through the approval link sent to the customer, the customer can approve the proposal or reject it with a note; the link closes when it expires, and a 3D scene can be attached. An approved proposal moves to the contract, the work schedule and stock deduction in a single step. See the automatic proposal feature page for details.
Explore the feature: Solar Proposal Software with Online Approval