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 a "net" number after incentives — in 2026 there is no federal credit on a purchased system, so the gross is the number you're actually paying.

4. Federal tax credit line (should be $0 in 2026)

For any system you own yourself — cash, loan, or any other structure — the 30% federal residential credit (Section 25D) was terminated for expenditures made after December 31, 2025, and an expenditure counts as made when the original installation is completed (26 U.S.C. §25D(h), as amended by P.L. 119-21 §70506(a)). If your install was completed in 2025 and the credit exceeded your tax bill, the unused amount still carries forward — take that one to your CPA. A 2026 proposal that still subtracts 30% of gross — $7,050 on a $23,500 system — is either a stale template or a deliberate net-price trick; either way, the gross is your real number. What it means when a quote still shows the credit. On a lease or PPA, the company that owns the system may claim a commercial credit — that shows up, if at all, in your rate, not as a line you receive.

5. Net cost after incentives

Gross minus any state or utility rebates. This is your true out-of-pocket if paying cash. On a 2026 purchase the federal line is $0, and most FL homeowners have no state rebate either — so net = gross. If a proposal shows a net that lands 30% under the gross, it is still running 2025 math.

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.