More than 1,000,000 consumers visit a SolarReviews website each month.
SolarReviews has generated 309,618 solar leads and appointments in 2024 so far. In 2023, we generated 749,348.
We are responsible for up to 40% of sales for our biggest partners.
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These are the minimum bids ranges for each lead type in the service areas you have listed. Lead costs vary depending on the number of companies a lead is sold to as well as the location of the lead. Our system is unique because we give consumers the ability to choose how many quotes they want.
Leads can be delivered either by email, text, or through integration to your CRM system.
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Delivery of leads into your CRM system can be set up in the control panel once this wizard is complete. You can pause lead buying at the end of this wizard, until this is done.
Initially, when accounts are set up, we set your bid price for leads at the lowest allowable bid for each lead type in your service areas. Depending on the level of competition in service areas, this may mean you get few leads allocated to you initially.
You are able to raise bids to increase your lead volume in the control panel once you’ve finished this setup wizard.
Before you buy our leads, we want to make sure that you understand your responsibilities and that you have a realistic expectation from your lead buying.
A lead is somebody who has expressed interest in receiving a quote or information about solar. This person may or may not buy solar at all. Alternatively, they may buy solar but from a different company. A realistic expectation with an efficient lead processing function is:
This means that approximately 93 - 97% of the leads you buy will not close. However, you will be required to pay for all leads purchased.
If you visit the lead buying return calculator, you’ll note that even with only a 5% close rate (1 out of every 20 leads), you generate a 10 X (1000% return) on your lead purchasing spend.
The secret of lead purchasing is to make sure that you contact leads within minutes, not hours.
Provided you do this, you then only need to monitor your close rate and ensure it stays above 3%.
Most new lead buyers become disheartened by the 19 out of 20 leads that don’t convert to a sale. They have an emotional reaction to unsuccessful leads and pull back their investment without properly analyzing how profitable the one success out of 20 is.
Leads can not be returned simply because the client is no longer interested or another solar company has got them on the phone first. Leads can only be rejected where the phone number is incorrect or the details supplied are fake.
You should also be aware that the percentage of leads that you reject will affect your priority in the queue to receive leads. In most competitive solar markets, our leading clients have a 0% lead rejection rate.
Delivery of leads into your CRM system can be set up in the control panel once this wizard is complete.
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By Andy Sendy
Are you a solar installer looking to grow your business in 2024? With the federal tax credit reauthorized as part of the Inflation Reduction Act, this is a great year to grow your sales organization and grab additional market share.
Many solar company owners have been burned in the past by low-quality lead vendors or having too small a sales force to profitably work the leads they’d purchased. However, when done right, buying solar leads or appointments is extremely profitable.
In this article, we’ll give you an overview of how much solar leads cost, the different types of solar leads, and what to avoid when it comes to buying leads. With these tips, you can allocate your sales and marketing budget more effectively in 2024.
In this article, we’ll give you an overview of:
With these tips, you can allocate your sales and marketing budget more effectively in 2024.
Most installers who are trying to grow their sales teams need to buy high-quality solar leads at a reasonable cost. So, what’s considered reasonable?
On average, solar leads cost between $25 and $300, with prices changing due to factors like where you’re located and how many other solar companies the leads are shared with. We’ve seen per-lead prices increase across the board in the hottest U.S. solar markets, primarily due to growing competition.
The biggest factor that plays into the price of a lead is how it’s sourced. For example, exclusive opt-in web leads (leads matched only to you) that have been through a screening process in a solar market dense with installers — like San Diego — will sell for as much as $300 per lead. A lead generated by a call center in India in that same market might sell for $25.
Leads that are generated through large platforms, such as Google and Facebook ads, have prices that are set by each platform. Generally speaking, the more attractive solar is in a particular city or county, the higher the price of traffic in that area, which raises the cost of leads or appointments.
The profit margin in the U.S. residential solar industry is phenomenal compared to similar home improvement industries or by international comparison.
For example, installed residential solar systems are sold in Australia at around $1.20 per watt, compared to around $3 per watt in the U.S. This means that you get paid $16,000 more than a company that installs the same 8 kW system in Australia.
Given this profit margin, it is unsurprising that so many are investing heavily to attract solar leads. However, this means that solar companies are competitively bidding up the cost of traffic and leads. From October 2021 to October 2022, our cost per lead across all paid traffic searches increased by 38.5%, while the cost per click increased by 65%. Since 2017, our cost per click has increased by more than 300%.
Additionally, if you are working with ethical lead gen partners, you get what you pay for. If you look closely into companies that are selling dirt-cheap leads, you’ll likely find them following one (or multiple) of the following shady business practices:
To get away from cheap leads, solar installers with the best digital lead processing tend to focus more on their cost per appointment or cost per close, rather than their cost per lead.
Most installers in competitive solar markets, like the Northeast and California, are trying to get their cost per close (lead spend/number of closes) under $1,500. Installers in emerging solar markets, like Florida, Colorado, and Texas, are usually aiming for $800 to $1,300.
Savvy sales organizations that track their solar lead processing measure not just their cost per close, but also the amount of sales rep time it takes to get to each close. There’s a big difference between needing to process 50 leads to get a deal versus closing after 15 leads, both in terms of what it costs financially and in terms of your available bandwidth as an organization.
If you have a small team with under 20 sales reps, every minute counts. You want your reps to be spending as much time as possible in conversations with actual prospects, whether that be via phone, text, email, or in person. That means incorporating software to help with contacting leads and measuring activities, as well as working with solar lead companies that have a good screening process in place, so you don’t have to sift through 49 dud leads to get to that one closed deal.
Solar leads and appointments are absolutely worth the price — if you’re purchasing leads from a reliable, trustworthy, and fair company.
Consider the success enjoyed by SolarReviews customers. In 2021, we saw two companies that started as small solar buyers with us sell for a combined value of nearly $1 billion. In the last couple of years, several others have received valuations of over $100 million during acquisitions or VC funding rounds.
Their secret to success was simple: With SolarReviews driving their customer acquisition, these companies could regularly acquire customers at the lowest cost possible.
SolarReviews is both the largest and highest-quality supplier of leads and appointments to the residential solar industry. On average, our customers generate $6-$8 of gross margin for every $1 they spend with us on either leads or appointments. This means you could see a 600% to 800% return on your investment.
If you’re not buying solar leads by now, you’re likely missing out on an incredible opportunity to take your business to the next level. Current levels of profitability in the solar industry will not be around forever, and solar company owners would be wise to aggressively make the most of these excellent trading conditions.
Our solar leads profitability calculator allows you to enter your cost per lead or appointment, your conversion percentage from lead/appointment to sale, and the metrics of how profitable jobs are for you. This includes the average job size, selling price, and cost of labor and materials.
Let’s take a look at a snapshot of a live dashboard of one of our smaller clients in California:
Let's follow the math. They bought 92 leads and won eight jobs. That is a conversion percentage of 8.6%. This is a little above average, as normal conversion rates from lead to sale are around 6%, but vary greatly depending on how you price your systems.
This installer has an average job size of 10 kW and an average gross margin of $1.20 per watt. They sell at $3.00 per watt, and their labor, equipment, and permitting costs total $1.80 per watt. So, they have generated eight jobs with a total value of $240,000 and a gross margin of $96,000.
Even though approximately 19 of the 20 leads this company purchased did not buy solar from them, they still made a 10x return on their ad spend.
There are many types of solar leads available, which we give an overview of below. These are critical to understand when entering the lead-buying space, as many of them should not be considered viable options for your business.
Yes, SolarReviews leads are among the best in the industry. This is partly because SolarReviews runs an incredibly high-quality verification process in which only 48% of the raw leads pass and are sold. Here are the key reasons why SolarReviews leads far surpass the quality of leads from other vendors:
All leads’ addresses are checked for:
An onshore, American-based QA team completes this qualification. They disqualify over 50% of the raw leads we generate from paid traffic, meaning we only sell approximately 50% of our raw leads.
Many of the leads and appointments sold by SolarReviews are generated via Google Ads and Facebook.
Some solar company owners have tried both SolarReviews leads and generating their own leads using the Google and Facebook platforms. Many concluded that they could purchase leads themselves for the same price. However, they noticed their cost of acquisition was higher with self-generated leads.
While you can set up traffic-buying accounts on these platforms relatively easily, it’s unlikely that you’ll achieve the same cost per lead or cost per sale as we do. This is because:
Many family-owned solar companies want to avoid investing time and cost into a sales infrastructure that can support lead-buying and converting leads into customers.
Smaller, owner-operated solar companies are at a disadvantage when it comes to chasing up leads quickly. However, they are at an advantage once they are in the home with the customer. Owner-operated companies are typically local, and the salesperson generally has a much broader range of knowledge than a salesperson for a larger, more corporate company.
This is why we often recommend that owner-operated companies buy appointments rather than leads. The appointments cost more but they yield a lower cost of acquisition and give the company a way to grow even before they have a complex CRM and dialer set up.
Solar appointments are between three and four times more expensive than solar leads. This is because it takes three leads to generate an appointment. In the process of trying to press the consumer to make an appointment, you may disqualify other leads. The consumer may grow wary, believing you were only after their information, and then refuse to enter into a serious shopping process.
These disqualified leads do not earn any revenue. However, the clicks from Google or Facebook that generated these leads still need to be paid for and are reflected in the cost.
Solar appointments usually cost between $200-$500, depending on the location and the number of set appointments. Once you’ve set up your account, the cost of appointments in your area can be found in your company dashboard.
We only set one or two appointments per consumer. This is because the no-show and cancellation rate is too high when more than two appointments are set.
This is the most affordable way to generate appointments. Dozens of clicks need to be purchased to generate just one in-home appointment. With a cost per click in Google Ads sitting around $8, this can equate to $200-$300 worth of traffic. Then, it’s time to follow up on those leads and find the appointment-ready customer.
Yes! SolarReviews offers both in-home appointments and pre-set virtual appointments. Virtual appointments are generally a lower cost compared to in-home appointments. Ultimately, it is the consumer's choice which they prefer. We are then guided by the consumer’s selection, the type of appointment that best fits their needs, and how many appointments they want to schedule.