Where’s the profit in solar businesses?

The data used in this article can be found in the latest iteration of SunBiz Enlighten

Your business depends upon it.
But what margin should you add?
What price can you competitively charge?

Well, the answer is: it varies from business to business. A lot.

And depends upon whether you want to be a one-man band, a boutique company, a high-volume low-margin business, or a solar legend.

What margin do you add?
How does that compare to the rest of the industry?

SunBiz Enlighten – by SunWiz
Over 80 companies have authorized SunWiz to analyse their solar software accounts and provide them with valuable feedback on their performance. In an approved process, we then anonymise and aggregate their information.

Therefore we now have an excellent dataset on what profit margins are being added across the industry.

We call it SunBiz Enlighten.

We can reveal the typical business applies a gross margin of 18%.
Some businesses scrape by on even less.
And margins of 23% aren’t uncommon!

What do you think of these figures?

SunBiz Enlighten also shows:

Smaller businesses tend to have higher margins, but there are larger companies with healthy margins!

There are plenty of small businesses operating with low margins.

The profit on a system that costs you $2/W is more than twice the profit of the system that costs you $1/W!

Get all the information you need to supercharge your solar business metrics, in SunBiz Enlighten, by SunWiz.
Discover the Market Intel range