D2D glossary / Solar terms
What is price per watt (PPW) in solar sales?
Price per watt (PPW): Price per watt is the total price of a solar system divided by its size in watts. It lets customers compare quotes for systems of different sizes and is the unit solar commission is built on.
Solar systems are sized in kilowatts, so a contract price alone says little: a bigger system costs more. Dividing by the wattage gives one number that can be compared across quotes and companies.
For a rep, price per watt is the selling price and the redline is the floor beneath it. Most companies cap how high a rep may price a system, and lenders and installers set limits too. Pricing far above the market wins a larger commission on paper and loses the deal when the customer gets a second quote.
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Price per watt (PPW): quick answers
What is price per watt (PPW) in solar sales?
Price per watt is the total price of a solar system divided by its size in watts. It lets customers compare quotes for systems of different sizes and is the unit solar commission is built on.