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COMPENSATION · 6 MIN READ

Solar sales compensation: redlines, splits, and payment milestones

A commission number means little without the rules behind it. Compare the formula, the work that makes payment eligible, and the time between a sale and a payout. This guide explains sample mechanics; your written agreement determines actual terms.

Start with the role and the payment trigger

A lead generator, canvasser, setter, closer, and dealer can have very different compensation arrangements. Ask whether eligible work is an accepted lead, a held appointment, a sale, an installation, or another milestone.

A booked appointment is different from an attended appointment. A signed sale is different from an installed project. Ask how those milestones are recorded and what happens when a customer cancels, reschedules, or changes the project.

Understand an illustrative redline calculation

A redline model commonly compares a sale price per watt with an agreed base price per watt. In one sample calculation, a $3.00/W sale price minus a $2.35/W redline creates a $0.65/W difference. For an 8 kW system (8,000 watts), that is $5,200 before any project deductions and split.

If that same illustration includes $1,000 in deductions and a 50% share, the result is ($5,200 − $1,000) × 50% = $2,100. This is arithmetic using sample inputs, not offered terms, typical pay, or guaranteed earnings. A real agreement may calculate deductions or splits differently.

Compare self-generated and company-sourced business

Ask whether lead source changes the split, what counts as self-generated, and how referrals or reassigned opportunities are handled. Compare scenarios with the same system size, sale price, and adders.

Ask about lead availability and quality separately from the compensation formula. A favorable split does not tell you how many appointments you will receive or how many projects will become eligible for payment.

Map the timing and adjustments

Request the payment schedule and the conditions for each milestone. Clarify the treatment of financing, installation, activation, customer changes, cancellations, and any chargebacks. Ask who resolves discrepancies and what project information you can review.

Evaluate gross commission alongside the expenses you would cover, such as travel or tools. Do not confuse gross commission with take-home income. Discuss your own tax and financial circumstances with an appropriate professional if needed.

Get the complete agreement before committing

Record the proposed redline or rate, eligible activity, split, deductions, payout timing, expenses, and cancellation terms together. For setter and canvasser roles, request the specific pay model instead of relying on a closer calculator.

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02 — UNDERSTAND THE NUMBERS

Understand the math.
Compare the full picture.

For closers and dealer conversations: explore how price, redline, adders, and your share affect a sample commission. Setter and canvasser compensation uses different milestones.

Price − redline× system watts − adders× your share = illustrative commission

Illustration only. These inputs are examples, not offered terms or typical earnings. Actual results depend on completed projects, eligibility, expenses, taxes, and your written agreement.

YOUR SCENARIOIllustrative only
1 installation15 installations
Illustrative monthly gross commission$20,800/ mo

$5,200 per eligible installation · before expenses & taxes

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