Solar Business Valuation
Solar Installation Business Valuation Calculator & Exit Planning Built for Solar Company Owners
We built one platform that tracks your solar company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Solar Company Owners Have No Idea What Their Business is Actually Worth
Current Solar Installation Valuation Multiples (2026)
Solar installation valuations depend on scale, recurring revenue, and market position. Here's the market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Solar Installation Value
Your installation quality matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Installation Volume
Consistent MW Deployed
How many megawatts do you install annually? Volume demonstrates market presence and operational scale. Track your MW deployment over time—buyers want to see consistent or growing volume. Declining volume raises concerns about sales capability or market position.
Low volume = scale concerns
O&M Contracts
Recurring Service Revenue
Operations and maintenance contracts create recurring revenue from installed systems. O&M provides predictable cash flow that installation-only businesses lack. Building O&M from your install base transforms project revenue into recurring value.
No O&M = transactional only
Commercial vs Residential
Commercial/Industrial Focus
Commercial and industrial projects are typically larger with different economics than residential. C&I solar often has longer development cycles but larger project values. Understanding your market focus helps position for the right acquirers.
Residential-only = smaller projects
Sales Model
Direct Sales, Referral Network
How do you generate leads? Direct sales teams, dealer networks, referral partnerships, and marketing all have different economics. Sustainable lead generation that doesn't depend on the owner is valuable. Track your customer acquisition cost and source mix.
Owner-dependent sales = key person risk
Installation Team
Trained, Licensed Crews
Skilled installation crews with proper electrical licenses, NABCEP certifications, and training are your production capacity. Crew retention affects installation capability and quality. Building installation capacity beyond owner involvement increases value.
Owner installs = job replacement
Financing Relationships
Multiple Financing Partners
Most solar customers need financing—loans, leases, or PPAs. Relationships with solar lenders and financing platforms enable customer acquisition. Understanding your financing options and attach rates helps assess competitive position.
No financing = customer limits
How to Value a Solar Installation Business
The U.S. solar installation industry includes thousands of companies generating approximately $30 billion in annual revenue. Solar companies provide residential and commercial photovoltaic system design, installation, and maintenance.
Seller's Discretionary Earnings (SDE) is used for smaller installers, while EBITDA applies to larger operations. Solar installation businesses typically sell for 2.0x to 4.0x SDE, or 4.0x to 7.0x EBITDA. Companies with commercial installation capabilities, O&M (operations and maintenance) contracts, and strong regional market positions command the highest multiples.
Revenue multiples generally range from 0.25x to 0.55x annual revenue. Companies with recurring O&M contracts and battery storage installation capabilities achieve the upper end.
The unique valuation factor for solar businesses is the pipeline visibility, O&M revenue, and regulatory environment. The solar industry is policy-dependent — federal tax credits (ITC), state incentives, and net metering policies directly impact demand. Companies with strong pipelines of contracted projects provide revenue visibility. O&M contracts for monitoring, maintenance, and warranty service on installed systems create recurring revenue that stabilizes the business beyond project-based installation. Battery energy storage system (BESS) capabilities represent a growing revenue opportunity.
The solar industry's long-term growth trajectory is supported by declining technology costs and decarbonization policy. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do solar companies sell for?
Solar installation companies typically sell for 2.5x – 5.0x SDE or 4x – 8x EBITDA. Companies with O&M recurring revenue, commercial capability, and sustainable sales models command premium multiples.
How does O&M affect solar company value?
Significantly. O&M contracts create recurring revenue from installed systems. Building O&M transforms transactional install revenue into predictable recurring value.
Who buys solar installation companies?
National solar companies, regional solar consolidators, electrical contractors adding solar, PE-backed clean energy platforms, and utilities building distributed generation.
Does commercial vs residential focus matter?
Yes. Commercial/industrial projects are larger with different economics. Market focus affects which acquirers are interested and valuation approach.
How important is installation volume?
Critical. MW deployed demonstrates market presence and scale. Growing volume signals sales capability. Declining volume raises concerns about market position.
What's the fastest way to increase my solar company value?
Three high-impact moves: 1) Build O&M program from installed base, 2) Develop sales capability beyond owner, 3) Grow consistent installation volume with trained crews.