Most solar installers do not fail because they cannot install. They fail because the business around the install is loose: a margin nobody has calculated, a quote that promised last month’s certificate rate, a trader that pays in three weeks while suppliers want seven days. The roof work is the skilled part. The business work is what keeps the roof work paid for.
These are the tips we would give a crew of three to fifteen people, based on how installers actually lose money. They are practical, and most cost little to put in place. They apply whether you are new or a decade in. If you are starting from scratch, see how to start a solar installation business first.
Know your real margin per job
Most installers know their quoted margin. Fewer know their delivered margin: what is left after rework, callbacks, waste, delays and the cost of chasing paperwork.
Work it through on one job. A 6.6 kW system quoted at $6,200 after STC discount, with equipment at $2,900, labour at $1,300, overheads allocated at $600 and a certificate value of $1,710 taken off the customer price:
- Customer pays $6,200
- STCs sold for $1,710
- Total revenue $7,910
- Costs: $2,900 + $1,300 + $600 = $4,800
- Margin: $3,110, or 39% of revenue
Now add a callback (two hours and a truck, say $350), one rejected claim that takes a week to fix and delays $1,710 of cash, and a supplier price rise of 4% on equipment ($116). The margin on that job is about $2,640 and the cash arrives later. Do this exercise on ten recent jobs and you will find where the leak is.
Quote with discipline
Quotes are where margin is won or lost.
- Show the STC line separately, with the certificate count and the rate you used. It keeps the customer honest and protects you.
- Use a conservative rate. At the time of writing the market has been roughly $38 to $40. Quoting at $37 leaves a buffer.
- Keep validity short. Fourteen days is plenty. A quote valid for 60 days is a free option for the customer.
- State the deeming year. From 1 January the certificate count falls, and a quote that straddles the date needs a clause. See what changes in January 2027.
- List exclusions such as switchboard work, network fees and roof access.
Cash flow is the business
A solar job has an awkward cash shape. You pay suppliers early, you pay crews weekly, and the certificate value lands after the job. The customer’s deposit covers some of it, but not all.
| Item | Typical timing | Cash effect |
|---|---|---|
| Customer deposit | At signing | In |
| Equipment | Before install | Out |
| Crew wages | Weekly | Out |
| Customer final payment | At completion | In |
| STC proceeds | After claim lodged | In, later |
The last row is the one you can change. If your trader pays in 20 days, a month of 40 jobs at $1,710 each means $68,400 outstanding at any time. If it pays in 24 hours on established claims, the outstanding figure shrinks to about two days of work. That is the difference between needing an overdraft and not. Our answer on installer cash flow and the guide on how long payment should take go through the numbers.
Make compliance routine
A rejected claim is a cost, and a failed audit is a threat to the whole business. The cheapest fix is a checklist.
- Photograph to a fixed list on every job
- Collect the signed assignment form before leaving site
- Have the person who signs the written statement be the person who was there
- Review each claim before lodging, using a second pair of eyes
Our compliance checklist for solar installers sets out the full routine, and the rejection reasons show what to look for first.
From the desk: Track three numbers weekly: claims lodged, claims queried or rejected, and days from lodgement to money. If the middle number is above 2 to 3 percent, look at the process. If the last number is above five days, look at your trader. These three numbers tell you most of what you need to know about your back office.
Choose your certificate partner on net dollars and days
Trader choice is a business decision with a cash value. Compare offers on net dollars per certificate and days to payment, not just headline rate. Ask whether the rate is locked on lodgement, whether any fees apply, and whether claims are pre-checked. Our certificate trader checklist lists the questions, and STC pricing explained shows how to compare cards. If your volume is steady, ask about volume tiers or a partner program: we describe ours on the partner program page.
Protect your reputation
A solar business runs on word of mouth, and the review you earn in year one is the lead you get in year three.
- Respond to every review, good or bad, within two days
- Follow up at 30 days and again at 12 months
- Fix problems quickly and visibly
- Hold your workmanship warranty and explain it plainly
Pay attention to the regulator as well. The Clean Energy Regulator has made clear that installers who give false written statements can be removed from the scheme, and it suspended 21 companies in the April to June 2026 quarter. A reputation for clean work is also protection against the regulator.
Diversify before the discount does
The STC discount shrinks every January until the scheme ends on 31 December 2030. A business that relies on large upfront discounts to win work has a countdown on it. Think now about adding batteries (see the Cheaper Home Batteries Program guide), heat pump hot water, maintenance contracts and monitoring. Each adds revenue that does not fall with the deeming period, and some create their own certificates. Read what ends in 2030 for the planning side.
Tax and bookkeeping basics
Certificate sales can have GST and income tax consequences. If you are GST-registered, STC sales are generally taxable supplies, and many traders issue a recipient-created tax invoice for them. Keep your ABN and bank details consistent, and reconcile each remittance against your claim. For anything beyond that, ask an accountant who knows the industry. Our GST and ABN guide covers the basics.
What to do next
- Work out delivered margin on your last ten jobs
- Fix your quote template: separate STC line, conservative rate, 14-day validity
- Measure days-to-money for your last 20 claims
- Review your trader terms against the pricing page and see how it works for what fast, locked settlement looks like