Updated 5 hours ago

How much do solar leads cost in each state?

Written by Andy Sendy

The cost of solar leads fluctuates from state to state. For example, states with highest energy prices and strongest incentives are typically the busiest — and most competitive — solar markets in America, so solar leads are more expensive in these areas. Leads in states with less homeowner interest in solar may be cheaper overall, but because there’s a lower supply of leads, you may pay a premium for them. Areas that have a lack of solar installers should see low lead prices.

So, what’s the average cost of a solar lead in your state? Take a look at the table below, which breaks down each state’s average lead cost, conversion percentage, and cost per sale.

State

Average lead cost per sale for multi-installer leads from a defined, organic source

Average lead cost per sale for multi-installer leads from an undefined, lower-quality source

Alaska

$450

$450

Arizona

$613

$833

Arkansas

$450

$400

California

$1,929

$3,167

Colorado

$557

$725

Connecticut

$1,286

$2,667

D.C.

$900

$1,750

Delaware

$357

$833

Florida

$488

$550

Georgia

$483

$400

Hawaii

$563

$975

Idaho

$360

$1,167

Illinois

$360

$400

Indiana

$360

$400

Iowa

$360

$400

Kansas

$360

$400

Kentucky

$360

$600

Louisiana

$360

$600

Maine

$360

$400

Maryland

$1,333

$2,167

Massachusetts

$1,400

$2,500

Michigan

$360

$367

Minnesota

$650

$900

Mississippi

$450

$367

Missouri

$450

$400

Montana

$450

$333

Nebraska

$450

$333

Nevada

$483

$600

New Hampshire

$557

$967

New Jersey

$1,400

$2,500

New Mexico

$557

$833

New York

$1,357

$2,633

North Carolina

$363

$600

North Dakota

$225

$333

Ohio

$300

$400

Oklahoma

$360

$333

Oregon

$414

$733

Pennsylvania

$360

$500

Puerto Rico

$483

$600

Rhode Island

$656

$1,300

South Carolina

$613

$725

South Dakota

$450

$400

Tennessee

$483

$600

Texas

$557

$633

Utah

$700

$1,300

Vermont

$483

$733

Virginia

$360

$667

Washington

$483

$800

West Virginia

$450

$300

Wisconsin

$450

$400

Wyoming

$450

$333

Please note that this is a compilation of prices that we see in the market and this does not reflect pricing of SolarReviews leads at any specific time.

See how much solar leads could cost for your business

Factors impacting the cost of solar leads

There are many factors that will change the cost of solar leads, from the quality of the lead source to the state of the overall solar market. Here are some location-specific factors that change the cost of leads state to state:

  • Availability of consumers

  • Average conversion rate in the state 

  • Attractiveness of solar as an investment

  • Electricity prices and local solar incentives

  • Demand for regional leads from solar companies

No matter where you’re located, there are some additional factors that will impact the cost of a solar lead. These include:

  • The quality of the lead source: Lead source can tell you a lot about the intent of the customer, and thus, the chances you may convert the lead in to a sale. Low-intent audiences usually come from sources like social media, while high-intent leads come from Google search and direct website traffic.

  • Source of initiation: Organic lead sources initiated by the consumer charge more than outbound lead generation methods where the interaction with the consumer is generated by telemarketing or email.

  • Whether the origin of the lead is defined or is not disclosed: Some lead aggregator sites will sell cheap leads but won’t disclose how they’ve acquired the leads. Be wary of lead prices that seem too good to be true.

  • The number of solar companies that a lead is sold to: Exclusive leads, which are only sold to one company, are much more costly than leads sold to two or more companies. Aggregators will sell the same lead to dozens of companies, lessening the lead price and quality. Reputable lead-gen companies will only sell to a maximum of four companies — and will tell you exactly how many other companies have purchased the lead.

  • The date of lead acquisition: Staler leads are cheaper than fresh leads from newly interested homeowners.

Click to learn more about solar leads

What makes up total customer acquisition costs, and what part of this is lead generation cost?

Customer acquisition costs have two major components:

  • Wages and/or commissions paid to salespeople who sell the system

  • Lead, appointment or warm transfer costs paid to either third-party providers or spent on internal marketing efforts. 

Whether you buy leads externally or generate them all yourself, you can work out how much you’re spending on leads by deducting your sales team’s payments from your overall customer acquisition costs. Lead generation costs can then be converted to a cost per job won and a cost per watt of solar installed.

How much is the average cost of solar leads in the U.S.?

To work out the average cost of solar leads per job in the U.S., we need to deduct the average amount of money paid to sales people (currently $0.18 per watt) from the average total cost of customer acquisition (currently $0.43).

This gives us an average cost of $0.25 per watt for residential solar lead generation in America. Given the average residential job is 5.6 kW, this equates to an average lead spend per residential solar job of $1,400.

However, this number varies greatly by state. Anecdotally, we can say it varies from as little as $500 per job in places like Texas and Florida up to around $2,000 in states like California and Massachusetts.

Final thoughts

As you can see, solar lead costs vary widely by state. The cheapest solar leads are available in North Dakota, while California sees the most expensive lead prices. The average lead spend per residential solar job is $1,400 in the U.S.

If you’re ready to see how much you can purchase solar leads for, click below to register your company with SolarReviews or schedule a no-obligation demo with one of our client success managers.

Find out if solar leads are a good choice for your company

Written by Andy Sendy Solar Industry Expert

Andy Sendy is a well-known and trusted figure within the solar industry with more than 15 years of experience. His video reviews of the leading brands of solar panels and home energy storage batteries are a must-watch each year for both homeowners and solar industry professionals alike. In 2021, an article he wrote about a clause in the Tesla solar panel rental contract caused Tesla to change this clause within days. He was the founder of Sola...

Learn more about Andy Sendy