Introduction: Solar Sales Roles in the Industry
In a world turning towards renewable and cheap energy solutions, solar energy stands at the forefront of this revolution and Solar Sales Representatives are driving the adoption of the technology across the country. Sales Reps not only educate consumers about the benefits of solar power but also play a critical role in the success of their solar companies, ensuring that installations are successful. The cost of acquiring a solar customer remains very high today given it is a complex sale where the customer may take many years to make back their investment. Solar Sales Reps are at the frontlines educating customers.
This blog aims to demystify the compensation structure in solar sales, which can vary significantly across employers in the industry. Whether you're considering a career in solar sales or looking to better understand your earning potential in this field, this comprehensive guide on compensation will give you more information to help make the decision for a new job or career in Sales.
The Basics of Solar Sales & Salary Background
The vast majority of Solar Sales jobs focus on Residential Sales. While the past year has seen a slowdown in hiring due primarily to the NEM 3.0 changes in California, there are still thousands of jobs across the country and we expect the residential market to rebound in the next couple of years. Take a look at the latest Solar Sales opportunities on our Job Board.
Residential and Commercial Solar Sales cater to distinctly different markets with unique needs and challenges. Residential solar sales focus on individual homeowners, offering solutions tailored to household energy consumption and rooftop specifications. The sales process often involves educating homeowners about the benefits of solar energy, including cost savings and environmental impact. In contrast, commercial solar sales target businesses, industrial clients, or large-scale projects, requiring a deeper understanding of complex energy needs, higher power demands, and often more intricate installation logistics. Here, the sales approach hinges on much more detailed financial analyses, long-term energy savings projections, and the integration of solar solutions into broader business operations and sustainability goals. Both sectors are integral to the solar industry's growth but require different sales strategies and expertise. For more detail, check out our Solar Sales Career Page.
As we outlined in a recent blog, most entry-level jobs will focus on residential. You’ll likely need industry and Sales experience to secure a Commercial Solar Sales jobs. It is a common path to bridge from Residential to Commercial Solar Sales after gaining a few years of experience on the job.
One key difference to contextualize the difference between Residential and Commercial is that Residential reps will be focused on closing high-volume and lower-dollar deals. Commercial Sales Reps will invest much more in customer development, understanding their intricate needs to craft a unique proposal.
Types of Compensation in Solar Sales
Solar Sales compensation is not standardized today. The structure will vary by company, so it is important to create a model to better understand how much you could be paid for any job offer you are considering. Below, we’ll outline how compensation varies by a few of the different roles.
Solar Lead Generators / Canvassers Compensation
These roles are responsible for getting appointments/meetings on the calendar for more senior sales reps to “close” the deal. Base solar sales salaries are usually very low for these roles (approximately around minimum wage).
Base Salary
$30,000 per year
Base Salary + Fixed Commision per meeting booked
$20,000 per year + $100 per meeting
Base Salary + Fixed Commision per meeting booked that leads to a close sale
$20,000 per year + $250 per closed sale that came from one of your initial meetings
Base Salary + % of Project Size
$20,000 per year + 1% of any closed sale that came from one of your initial meetings (avg. residential installation is $20,000, so 2% would be $200)
These roles may often have “accelerators.” If you book more than X meetings per month, you may get paid more per additional meeting. For example, if your quota is 100 meetings, you may get $100 per meeting for those first 100 meetings, but then get compensated $150 per meeting thereafter. Note that these have to be quality meetings (i.e. the prospect is a good fit for purchasing solar panels), which is why many employers don’t pay you until a deal is closed. While you may get a short-term bump in compensation from booking meetings that are lower quality, you can be sure that it will affect your medium-term compensation and your reputation at the employer. Keep in mind that Solar should be a win-win-win for you, the customer, and your employer.
Residential Solar Sales Reps Compensation
These roles are the deal “closers.” You will help assess if the customer is a good fit, plan the installation, work through the paperwork, and ensure the installation process is a success with the client. Again, compensation is not standardized, so make sure you do your diligence before accepting an offer.
Base Salary + Fixed Commission per Sale
$40,000 + $1,000 per sale
Base Salary + % Commission of Sales Price
$40,000 + 10% of sales (avg. residential installation is ~$20,000, so 10% would be $2,000)
Note that the % commission is variable. We’ve seen on the low end 3%-4% commission, but commission can be up to ~10%
Base Salary + $ per KW installed
This is similar to a % of commission, but it is tied to power installed. The average power installed is 6-8 kW, so you may earn $200-$400 per kW installed.
$40,000 + $300 per kW ($2,100 for a 7kW installation)
No Base Salary + any of the above commission structures
Some employers may not offer any base salary, but compensate you purely based on your performance. You should expect to see higher commission amounts or %s for these types of roles
Like Canvassers, these roles may also have accelerators to encourage you to go above and beyond. You may earn 10% commission on your first 10 deals in the month, but then earn 12% for any deal thereafter
Commercial Solar Sales Reps Compensation
Commercial Sales Reps will have similar compensation structures to Residential Reps listed above. You will typically see compensation tied to the size of the project (kWs or $s), as Fixed Commission is very unlikely given the variance in the size of Commercial deals.
With Commercial sales, remember that you will be managing fewer opportunities, but each of them may have a big payout. This can result in much more uncertainty with each paycheck and more emotional ups & downs when a large deal doesn’t close near the end of negotiations.
Final Advice For Solar Sales Compensation
Understanding how these commission structures work and what is required to achieve them is essential for deciding which job to accept and maximizing your potential earnings. Sales can be a highly rewarding and lucrative career path if you’re up for the challenge. Staying motivated and resilient is critical to advancing the industry. Even the absolute best sales reps aren’t closing every deal.
When interviewing and deciding whether or not to accept an offer, make sure you understand how reps are compensated (as we outlined above) and what the average performance looks like today on the team. While you may be very confident in your abilities, you should expect to jump into being a “top 1%” rep off the bat. Be wary of employers who say you can earn massive salaries quickly. You’ll need time to ramp, build your pipeline, and gain a great understanding of the solar market in your region.