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EnergySage's Approach to Solar Savings and Cost Estimates

EnergySage provides solar estimates to help consumers make informed decisions about solar investments.

Summary

EnergySage provides solar savings and cost estimates throughout our marketplace to help consumers make informed decisions about going solar. These estimates are based on a combination of real-time data from our marketplace and industry standards to ensure accuracy and transparency. This article explains how we calculate these estimates, what data is included, and how different financing options are modeled to provide consumers with financial information about their potential solar investments.

Where we estimate costs and savings

EnergySage estimates are designed to give consumers realistic expectations about their solar costs while highlighting the benefits of solar and energy storage based on their home. EnergySage displays solar cost and savings estimates in several key areas of our platform:

Pre-Quote Costs and Savings Tools

EnergySage's pre-quote tools provide shoppers with preliminary estimates based on their location, electricity usage, and available roof space. 

  • Solar Calculator: Our Solar Calculator tool allows consumers to get an estimate for solar on their home based on prices recently quoted in our marketplace and real time electricity cost data from trusted industry sources like NREL. 
  • Estimate Experience: Beginning in March 2025, some EnergySage users will be provided with a cost estimate before opting to receive formal quotes. We’re clear with consumers that these are based on benchmarks and are not exact predictions. 

By offering estimation tools, EnergySage helps ensure consumers are informed and motivated to make decisions about choosing solar. 

Quote Views of Costs and Savings

  • Marketplace Quote Views: When consumers receive quotes from installers, they see estimated savings and costs based on the specific quotes submitted. Formal quotes from installers’ professional assessment provides the most precise, personalized look at cost and savings to consumers who are ready to go solar. 

What data is included in our estimates

Our cost and savings estimates incorporate multiple data points from quotes in our marketplace and third-party data services to provide an accurate and customized estimate for each shopper. These inputs include, but are not limited to the following: 

  • Electricity Rates: Current utility rates in the customer's area, including time-of-use considerations where applicable.
  • Estimated System Size: Based on the customer's energy consumption and roof specifications.
  • Expected Inflation: Projections for electricity price increases over time.
  • Marketplace Pricing: Real quote data from our platform to ensure estimates reflect current market conditions.
  • Available Incentives: Federal, state, and local incentives including the federal Investment Tax Credit (ITC), state rebates, and SRECs where available.
  • System Production: Estimated energy production based on location, system size, and equipment specifications.
  • Degradation Rates: Standard industry degradation rates for solar panel performance over time.

How We Model Savings and Costs for Different Financing Options

In some cases, EnergySage provides distinct savings and cost models for each financing option to help consumers understand the financial implications of their choices:

Cash Purchase

  • Upfront costs shown reflect the total system cost minus applicable incentives
  • Savings calculations include the full ownership benefits without financing costs
  • Payback period and ROI calculations show when the system will pay for itself and lifetime returns

Solar Loans

  • Monthly loan payments are factored into cash flow projections
  • Interest costs are included in overall cost calculations
  • Tax benefits are applied according to when they would be realized (typically after tax filing)
  • Different loan terms (10, 15, or 20 years) are modeled to show varying impact on monthly payments and long-term savings

Solar Leases/PPAs

  • No upfront cost model shows monthly payments versus utility savings
  • Escalator rates (annual increases in lease payments) are factored into long-term projections
  • End-of-term options are noted in relevant calculations
  • Comparison to ownership options helps highlight differences in long-term economics

How Installers Can Learn More About Our Savings and Cost Estimates

We understand that our cost and savings estimates may impact how consumers perceive your quotes. To learn more about our methodology or discuss specific estimates:

  • Reach out to your Partner Success Manager (PSM) for details
  • Request information about how specific components of your quotes are represented in our savings estimates
  • Share feedback about how our estimates align with your experience in the field

Your PSM can provide additional resources and answer any questions you have about how EnergySage represents solar costs and savings to consumers.