Budgetary Quote
A budgetary quote is a preliminary cost estimate provided to a homeowner, commercial client, or developer to give an early understanding of the expected price of a solar project before detailed engineering and final site verification are completed. It is not a binding offer, but rather an approximate financial snapshot used to support early decision-making, feasibility assessments, and sales conversations.
In the solar industry, budgetary quotes help customers evaluate ROI, project viability, financing options, and system sizing long before a full engineering design and permit-ready plan set are produced. Modern platforms like Solar Proposals and design tools such as Solar Designing are often used to generate accurate budgetary quotes quickly, combining system layouts, production estimates, equipment choices, and financial modeling.
Key Takeaways
- A budgetary quote is a high-level, non-binding cost estimate for a solar project.
- Helps customers evaluate project feasibility early in the process.
- Accuracy improves after site surveys, engineering, and structural assessments.
- Used widely in residential, commercial, and utility-scale workflows.
- Modern design tools dramatically improve the quality and speed of budgetary quotes.
What Is a Budgetary Quote?
A budgetary quote is a high-level cost estimate that outlines the expected cost range of a solar project based on preliminary site data. It typically includes:
- Estimated system size
- Equipment type (modules, inverters, racking)
- Expected energy production
- Preliminary installation costs
- Projected savings and ROI
- Financing or payment options
- Assumptions and disclaimers
Unlike a formal proposal or engineering quote, a budgetary quote is based on initial assessments, satellite imagery, or customer-supplied information, and may change after site surveys or structural/electrical evaluations.
Related concepts include Financial Modeling, Solar Savings Calculator, and Payback Period Calculation.
How a Budgetary Quote Works
1. Gather Preliminary Site Information
This may include:
- Address
- Utility bill
- Roof orientation
- Available area
- Power consumption
Design teams may use tools like Shadow Analysis to identify shading losses that influence energy yield.
2. Create a Preliminary Solar System Design
Using software such as Solar Designing, designers create:
- A rough layout
- Estimated module count
- Inverter configuration
- Expected kWh/year
3. Apply Preliminary Pricing
Pricing is based on:
- Market rates
- Equipment choices
- Labor assumptions
- Soft costs (permitting, engineering, O&M)
4. Run Financial Calculations
Including:
- Payback period
- Cash/loan/PPA modeling
- Net savings projection
- Tools like Solar Loan Calculator or Solar ROI Calculator often support this process.
5. Deliver to the Customer
The output is typically a non-binding document showing:
- Estimated system size
- Estimated cost
- Expected savings
- Installation timeline
- Next steps
A budgetary quote helps customers decide whether to move forward to a full site survey or engineering design.
Types / Variants of Budgetary Quotes
1. Residential Budgetary Quote
Quick, high-level estimate using satellite data and typical equipment choices.
2. Commercial Budgetary Quote
Includes system sizing, layout options, energy modeling, load analysis, and high-level structural considerations.
3. Utility-Scale Budgetary Estimate
Used for early-stage land assessment, grid interconnection feasibility, and capacity planning.
4. Equipment-Only Budgetary Quote
Given to EPCs or installers for procurement planning—modules, inverters, racking, BOS components.
5. EPC Turnkey Budgetary Quote
Includes engineering, procurement, construction, commissioning, and O&M assumptions.
How It’s Measured
Budgetary quotes typically include measurements that influence pricing:
System Size (kW or MW)
Determined from available area and module selection.
Estimated Energy Production (kWh/year)
Often based on POA irradiance—see POA Irradiance.
Installed Cost ($/W or $/kW)
A common industry metric for quoting.
Financial Metrics
Including:
- Payback period
- LCOE
- ROI
- Lifetime savings
Assumptions & Contingencies
Important since the quote is non-binding.
Typical Values / Ranges
In all cases, accuracy improves significantly after site survey and engineering review.
Practical Guidance for Solar Designers & Installers
1. Clarify that it’s a non-binding estimate
Ensure the customer understands this is preliminary.
2. Base the quote on realistic assumptions
Avoid artificially low pricing to “win the lead”—this increases cancellations later.
3. Use automated design tools to improve accuracy
Platforms like Solar Designing help reduce guesswork.
4. Incorporate shading and POA calculations
Use Shadow Analysis for shading impacts.
5. Provide multiple equipment options
Premium vs. standard components help customers compare value.
6. Include financial pathways
Refer to tools like the Solar Loan Calculator and Solar ROI Calculator.
7. Update the quote after site survey
The budgetary quote becomes accurate only after real-world verification.
Real-World Examples
1. Residential Budgetary Quote
A homeowner submits a utility bill and address.
Designer uses satellite imagery and produces a 6.5 kW estimate for $15,000–$17,000 with a 6-year payback.
2. Commercial Office Building
A 50 kW system is preliminarily quoted at $85,000–$105,000 pending structural review and roof access verification.
3. Utility Solar Farm
A developer receives a budgetary quote estimating a 5 MW array at $0.85/W based on site grading assumptions and preliminary interconnection capacity.
.svg)
