Net Price Per Watt
Net Price Per Watt
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The industry prices solar installation by the price per watt of the solar array.
Net Price Per Watt is the “price per watt” (PPW) of the solar array per watt after all adders have been removed including dealer fees and other costs.
Manually Calculating NetPPW
Manually Calculating NetPPW
Total/Gross Price
The price of the system that the customer will pay.
Total Watts
An average system on a home will be around 7 kW or 7000 Watts.
1 Kilowatt (kW) = 1000 Watts (W)
Net Price
Total/Gross Price
- Dealer Fee
This is the finance charge for borrowing money. It is a way to buy down the interest rate. It is a percent of the Total/Gross Price. If the customer does not use Freedom financing and brings cash, there is no Dealer Fee. Learn More
- Solar System Adders
These costs are solar system upgrades and costs associated with the solar system. e.g. roof tilt, system size, multiple planes, inverters, etc. Learn More
- Market Adjusters
e.g. Some markets/states have additional costs
- Additional Costs
Additional Costs are the items that help prep for the solar array, but are not upgrades for the solar system. e.g. MPU, roof, trees, electrical work, trenching, MSP Relocation, etc.
= Net Price
This price is the cost of the solar array without all upgrades, other costs, and financing charges.
Net Price Per Watt
Net Price Per Watt = Net Price / Total Watts
Calculating Net Price Per Watt with "Scope of Work" Tab
Calculating Net Price Per Watt with "Scope of Work" Tab
① System_Size
② Gross_Price
③ Total_Adder_Cost
Gross_PPW = ③ Gross_Price / ( ① System_Size * 1000)
Total_Adder_PPW = ② Total_Adder_Cost / ( ① System_Size * 1000)
NetPPW = Gross_PPW - Total_Adder_PPW
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