More than 1,000,000 consumers visit a SolarReviews website each month.
SolarReviews has generated 733,370 solar leads and appointments in 2023 so far. In 2022, we generated 990,018.
We are responsible for up to 40% of sales for our biggest partners.
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These are the minimum bids ranges for each lead type in the service areas you have listed. Lead costs vary depending on the number of companies a lead is sold to as well as the location of the lead. Our system is unique because we give consumers the ability to choose how many quotes they want.
Leads can be delivered either by email, text, or through integration to your CRM system.
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Delivery of leads into your CRM system can be set up in the control panel once this wizard is complete. You can pause lead buying at the end of this wizard, until this is done.
Initially, when accounts are set up, we set your bid price for leads at the lowest allowable bid for each lead type in your service areas. Depending on the level of competition in service areas, this may mean you get few leads allocated to you initially.
You are able to raise bids to increase your lead volume in the control panel once you’ve finished this setup wizard.
Before you buy our leads, we want to make sure that you understand your responsibilities and that you have a realistic expectation from your lead buying.
A lead is somebody who has expressed interest in receiving a quote or information about solar. This person may or may not buy solar at all. Alternatively, they may buy solar but from a different company. A realistic expectation with an efficient lead processing function is:
This means that approximately 93 - 97% of the leads you buy will not close. However, you will be required to pay for all leads purchased.
If you visit the lead buying return calculator, you’ll note that even with only a 5% close rate (1 out of every 20 leads), you generate a 10 X (1000% return) on your lead purchasing spend.
The secret of lead purchasing is to make sure that you contact leads within minutes, not hours.
Provided you do this, you then only need to monitor your close rate and ensure it stays above 3%.
Most new lead buyers become disheartened by the 19 out of 20 leads that don’t convert to a sale. They have an emotional reaction to unsuccessful leads and pull back their investment without properly analyzing how profitable the one success out of 20 is.
Leads can not be returned simply because the client is no longer interested or another solar company has got them on the phone first. Leads can only be rejected where the phone number is incorrect or the details supplied are fake.
You should also be aware that the percentage of leads that you reject will affect your priority in the queue to receive leads. In most competitive solar markets, our leading clients have a 0% lead rejection rate.
Delivery of leads into your CRM system can be set up in the control panel once this wizard is complete.
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Updated 12/6/2022
Many owners of solar companies have an incorrect view that buying solar leads is not highly profitable. Often this view has come about because of an experience they have had with a low-quality lead vendor or because they have bought leads or appointments when they did not have the systems in place to work them profitably.
However, when done right, buying solar leads or appointments is, in fact, extremely profitable.
Consider the success enjoyed by SolarReviews customers. In 2021, we saw two companies that started as small solar buyers with us sell for a combined value of nearly $1 billion. During 2022 several others have received valuations of over $100 million during acquisitions or VC funding rounds.
Their secret to success was simple: these companies could regularly acquire customers at the lowest cost of acquisition possible because SolarReviews was driving their customer acquisition.
SolarReviews is both the largest supplier of leads and appointments to the residential solar industry and also the highest quality. On average our customers generate $6-$8 of gross margin for every dollar they spend with us on either leads or appointments.
In this article, I’ll show how you can utilize solar leads and appointments to achieve the same levels of success. I’ll explain:
If you are a solar company owner or manager, understanding the economics of customer acquisition and the options available is essential knowledge. Reading this article will give you a unique insight into the customer acquisition landscape for residential solar as it exists in 2023.
Solar lead costs vary between $35 and $200, depending on the location and the number of solar companies they are shared with. This cost is set by solar companies competing to bid for traffic on large platforms such as Google and Facebook.
Generally speaking, the following two points are true regarding the cost of solar leads:
Want to see the price of leads in your area? Set up an account through the registration link above.
I have included a discussion about the cost of appointments further below in this article.
The profit margin in the U.S. residential solar industry is phenomenal compared to similar home improvement industries or by international comparison.
For example, installed residential solar systems are sold in Australia at around $1.20 per watt compared to around $3 per watt in the U.S. This means that you get paid $16,000 more than a company that installs the exact same 8 kW system in Australia.
Given this profit margin, it is unsurprising that so many are investing heavily to attract solar leads. However, this means that solar companies are competitively bidding up the cost of traffic and leads. From October 2021 to October 2022, our cost per lead across all paid traffic searches increased by 38.5%, while the cost per click increased by 65%. Since 2017, our cost per click has increased by more than 300%.
Yes, they are. SolarReviews runs an incredibly high-quality verification process in which only 48% of the raw leads pass and are sold. Here are the key reasons why SolarReviews leads far surpass the quality of leads from other vendors:
All leads are checked for:
An onshore, American-based QA team completes this qualification. They disqualify over 50% of the raw leads we generate from paid traffic, meaning we only sell approximately 50% of the raw leads we generate.
Some solar company owners have tried both SolarReviews leads and generating their own leads using Adwords. Many concluded that they could generate leads themselves for the same price.
However, they noticed their cost of acquisition was higher with self-generated leads. Solar company owners realized they needed to generate two raw leads equating to one SolarReviews-quality lead. Most solar companies don’t realize that half of our raw leads fail our QA standards and are deemed unfit to be sold.
When they instead look at cost per appointment and cost for sale, it’s clear that SolarReviews leads generate a significantly lower cost of acquisition.
Absolutely. As stated above, for every dollar a SolarReviews customer spends on leads or appointments, they will generate between $6-$8 of gross margin. This means you could see a 600% to 800% return on your investment. If you’re not buying solar leads by now, you’re missing out on an incredible opportunity to take your business to the next level.
Current levels of profitability in the solar industry will not be around forever and solar company owners need to be aggressively making the most of these excellent trading conditions.
Our solar leads profitability calculator allows you to enter your cost per lead or appointment, your conversion percentage from lead/appointment to sale, and the metrics of how profitable jobs are for you. This includes the average job size, selling price, and cost of labor and materials.
Let’s take a look at a snapshot of a live dashboard of one of our smaller clients in California:
Let's follow the math. They bought 92 leads and won eight jobs. That is a conversion percentage of 8.6%. This is a little above average, as normal conversion rates from lead to sale are around 6%, but vary greatly depending on how you price your systems.
This installer has an average job size of 10 kW and an average gross margin of $1.20 per watt. They sell at $3.00 per watt, and their labor, equipment, and permitting costs total $1.80 per watt. So, they have generated eight jobs with a total value of $240,000 and a gross margin of $96,000.
Even though approximately 19 of the 20 leads this company purchased did not buy solar from them, they still made a 10x return on their ad spend.
Many of the leads and appointments sold by SolarReviews are generated via Google Ads and Facebook.
While you can set up traffic-buying accounts on these platforms relatively easily, it’s unlikely that you’ll achieve the same cost per lead or cost per sale as we do. This is because:
There is no cheap, high-quality, and high-volume source of solar leads. Period.
It might be possible to generate a low volume of low-cost local leads from referrals, but volume and quality can only be obtained from larger platforms.
Large platforms like Google, Bing, Facebook, YouTube, Outbrain, Taboola, and others own the consumer and sell the traffic to the highest bidder. They are aggressively making it harder to generate organic leads from their platforms. In many Google search engine result pages, or SERPs, the ads are above the fold, and you have to scroll down to see any organic content.
Unfortunately, this means paying for clicks is the only way to get a reasonable volume of leads from those platforms.
A lead generation company like SolarReviews is performing this traffic-buying function for you. We spend money on journalists to generate organic solar leads and paid traffic to generate additional volume.
At SolarReviews, we have the ability to efficiently and effectively mix paid leads with high-quality organic leads. This allows us to deliver you a premium lead at a lower overall cost of acquisition.
There are two reasons why you may not have succeeded with solar leads previously:
It is a prerequisite to success with lead buying that you are not dealing with a fraudulent lead vendor. Here is a link to an article where I discuss tips to recognizing fraudulent lead vendors.
It is incredibly competitive to take a good solar lead and convert it into a sale. Automated CRMs are essential to the solar lead sales process. The best solar sales organizations are calling leads back almost immediately. Manual systems cannot compete with automated CRMs or dialing systems, and we highly recommend that companies invest in this specific infrastructure – especially if they’re in a highly competitive market.
Many solar company owners believe they have the personnel to work leads effectively. The reality? They don’t.
In almost every case where clients have complained about their returns, we have provided them with a dummy lead to follow up with. We soon learn that these companies do not call the dummy number for hours, and only call it once or twice over the following week.
Other companies burn leads because they have poorly-trained people making the initial calls to consumers or have very inflexible sales models where they will only answer questions if the consumer agrees to an in-home appointment. Your SolarReviews account manager can offer advice on setting up your follow-up process.
With SolarReviews leads, you will generally get a contact rate of 80% if you call the consumer immediately and regularly over the first few hours after the lead is generated.
Unfortunately, you can’t return the 20% of leads you don’t contact. Just as Google will not refund us for the 12 clicks we bought to generate that lead, you cannot return a lead that does not answer their phone.
When a lead falls through, it’s natural to be upset – you may even want to throw in the towel on buying leads completely. However, we would advise you to stick with it. Remember, even selling just one lead out of 20 purchased will make an 800% return on your lead investment. Focus on the fact that one lead out of every 20 turns an $80 purchase into a $15,000 margin – and that lead is coming. Be patient!
Drop-off rates are an unfortunate reality when it comes to lead buying. Even with the most honest and high-quality lead vendors, there will always be many more leads that fail than convert.
The conversion rate of SolarReviews lead to appointment, complete with a best practice follow-up, averages around 33% nationally.
Many family-owned solar companies want to avoid investing time and cost into a sales infrastructure like the one we mentioned above.
Smaller, owner-operated solar companies are at a disadvantage when it comes to chasing up leads quickly. However, they are at an advantage once they are in the home with the customer. Owner-operated companies are typically local, and the salesperson generally has a much broader range of knowledge than a salesperson for a larger, more corporate company.
This is why we often recommend that owner operated companies buy appointments rather than leads. The appointments cost more but they yield a lower cost of acquisition and give the company a way to grow even before they have a complex CRM and dialer set up.
Solar appointments are between three and four times more expensive than solar leads. This is because it takes three leads to generate an appointment. In the process of trying to press the consumer to make an appointment, you may disqualify other leads. The consumer may grow wary, believing you were only after their information, and then refuse to enter into a serious shopping process.
These disqualified leads do not earn any revenue. However, the clicks from Google or Facebook that generated these leads still need to be paid for and are reflected in the cost.
Solar appointments usually cost between $200-$500, depending on the location and the number of set appointments. Once you’ve set up your account, the cost of appointments in your area can be found in your company dashboard.
We only set one or two appointments per consumer. This is because the no-show and cancellation rate is too high when more than two appointments are set.
This is the most affordable way to generate appointments. Dozens of clicks need to be purchased to generate just one in-home appointment. With a cost per click in Google Ads costing around $8, this can equate to $200-$300 worth of traffic. Then, it’s time to follow up on those leads and find the appointment-ready customer.
Yes! SolarReviews offers both in-home appointments and pre-set virtual appointments. Virtual appointments are generally a lower cost compared to in-home appointments. Ultimately, it is the consumer's choice which they prefer. We are then guided by the consumer’s selection, the type of appointment that best fits their needs, and how many appointments they want to schedule.