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.
The price of the system that the customer will pay.
An average system on a home will be around 7 kW or 7000 Watts.
1 Kilowatt (kW) = 1000 Watts (W)
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.
- 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.
- 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 / Total Watts
(1) System_Size
(2) Gross_Price
(3) Total_Adder_Cost
Gross_PPW = Gross_Price / (System_Size * 1000)
Total_Adder_PPW = Total_Adder_Cost / (System_Size * 1000)
NetPPW = Gross_PPW - Total_Adder_PPW