Path-Q Solar
What financial information should I request before accepting an installer’s payback estimate?
Answer
Request the complete cash-flow model and every assumption behind the payback estimate, including system cost, financing, production, degradation, bill rates, exports, maintenance, incentives, taxes, replacement costs, and roof-related work. A payback number without these inputs is not enough to evaluate the offer.
Key points
- Ask for annual production, energy offset, self-consumption, and export assumptions.
- Confirm whether the estimate uses cash price, financed price, or payments after financing.
- Identify assumed rate escalation, equipment replacement, maintenance, and degradation.
- Require incentives and tax benefits to be shown separately from core project economics.
- Check whether roof repairs, insurance, monitoring, and interconnection costs are included.
What it depends on
- System price and payment method
- Production model
- Utility bill structure
- Incentive and tax assumptions
- Lifecycle costs and contract obligations
Risks and trade-offs
- Payback can be shortened by optimistic production, rate escalation, or incentive assumptions.
- A low monthly payment does not establish a low total cost.
- Simple payback may ignore financing costs, degradation, replacement, and the time value of money.
Information you may need
- Itemized cash price and financed price
- Annual production and degradation schedule
- Utility-bill savings calculation
- All incentives, taxes, fees, and maintenance assumptions
- Contract, warranty, and roof-work terms
Your next step
What to do next
Ask the installer for an editable or line-item model and independently recalculate payback using conservative assumptions and total project cost.
Path-Q
Find the right next step
Answer a few questions and we’ll narrow your options.
Loading…
SQ02464