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Solar & battery

Solar Lead Value Calculator

Works what a solar lead is worth, where two conversion stages apply.

Your numbers

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$
%
%
Spending the whole value leaves nothing for the business.

Result

Value of one lead $7,018
From the first job alone $2,064
Value of one customer $21,930
Most to pay per lead $1,754
One lead is worth $7,018 in gross profit once the close rate and repeat work are counted. Paying more than $1,754 for one leaves too little behind to be worth doing.

This is gross profit, not revenue, and it counts the whole relationship rather than the first job. It assumes the repeat work is real for your business, which is worth checking against your own records before spending against it.

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How the calculation works

Close rate times installation rate times the gross profit on an installed system gives a lead's value. Both conversion stages have to be applied, because a lead that becomes a contract and then cancels produced cost rather than value, and the installation rate is specific to solar.

What moves the number

  • Close rate from lead to contract.
  • Installation rate from contract to installed.
  • Gross profit per installed system.
  • Whether the lead source is exclusive.

Where this one goes wrong

Applying only the close rate overstates lead value by the whole cancellation rate, which is the error that makes purchased lead programmes look viable when they are not. Apply both stages. Lead source also affects the installation rate and not just the close rate, since some sources produce customers who sign readily and qualify poorly, which is worse than a source that converts less and installs reliably.

Before you quote

  • Apply both the close rate and the installation rate.
  • Track installation rate by lead source, not just close rate.
  • Compare lead price against value per installed system.

Questions

About this calculator

What is a solar lead worth?

Close rate times installation rate times gross profit per installed system. Both conversion stages matter, because a lead that becomes a contract and then cancels produced cost rather than value, and leaving the second stage out overstates everything.

Do lead sources differ in installation rate?

Yes, and that matters as much as close rate. Some sources produce customers who sign readily and qualify poorly, which is worse than a source converting less often and installing reliably. Tracking both by source is what reveals it.

Why do purchased lead programmes disappoint?

Frequently because the value was calculated on close rate alone, which overstates it by the cancellation rate. Applying both stages before agreeing a lead price is what keeps a programme from losing money quietly.

How useful was this calculator?

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The formula

lead value = close rate x first job profit x (1 + repeat jobs)

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How to use this calculator

  1. Share of leads you win (%). Enter your own figure; the page starts at 32%.
  2. Average first job ($). Enter your own figure; the page starts at $21,500.
  3. Gross margin (%). Enter your own figure; the page starts at 30%.
  4. Extra jobs over the relationship. Enter your own figure; the page starts at 2.4.
  5. Share of value you will spend (%). Spending the whole value leaves nothing for the business.

The result updates as you type, so you can try a figure, see what it does to value of one lead, and change it back. Nothing you enter is sent anywhere or saved.

A worked example

These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.

What goes in

InputValue
Share of leads you win32%
Average first job$21,500
Gross margin30%
Extra jobs over the relationship2.4
Share of value you will spend25%

What comes out

ResultValue
Value of one lead main result$7,018
From the first job alone$2,064
Value of one customer$21,930
Most to pay per lead$1,754

One lead is worth $7,018 in gross profit once the close rate and repeat work are counted. Paying more than $1,754 for one leaves too little behind to be worth doing.

How sensitive the answer is

Holding everything else steady and changing only average first job, this is what happens to value of one lead. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.

Average first job ($)Value of one lead
$10,750 $3,509
$16,125 $5,263
$21,500 example above $7,018
$32,250 $10,526
$43,000 $14,035

Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.

What each figure means

Share of leads you win (%)
A percentage, between 0 and 100, starting at 32%.
Average first job ($)
A money amount, starting at $21,500.
Gross margin (%)
A percentage, between 0 and 95, starting at 30%.
Extra jobs over the relationship
A number, between 0 and 50, starting at 2.4.
Share of value you will spend (%)
Spending the whole value leaves nothing for the business.

What the results tell you

ResultWhat it is
Value of one leadThe headline result. A money figure.
From the first job aloneA money figure.
Value of one customerA money figure.
Most to pay per leadA money figure.

A design still needs a site visit

Output and sizing figures use the assumptions you enter, not measured irradiance, shading or roof orientation at your address. Real production depends on all three, plus inverter behaviour and local interconnection rules.

Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.