Most solar installers think about marketing budget wrong. They pick a number based on what feels affordable (or what an agency quoted them) and hope the channel returns it. The right way is to start from per-dollar return economics and work backwards.
The short answer
Most established residential solar installers spend 8-15% of revenue on marketing. The wide range is because the right number depends on growth stage:
- Year 1 (zero base): 15-25% of revenue. You're paying to build the install base that fuels future referrals and neighbor follow-up.
- Year 2-3 (growing): 10-15% of revenue. Same-block neighbor effects start to share the load.
- Year 4+ (established): 5-10% of revenue. The 25-year-visible neighbor effect compounds; referrals carry more of the customer acquisition.
Budget benchmarks by revenue tier
| Annual revenue | Total marketing budget | Suggested channel mix |
|---|---|---|
| $0-$500K (year 1) | $75K-$125K | 70% mailed solar quotes · 15% warm-follow D2D · 10% retargeting · 5% community/events |
| $500K-$2M | $80K-$240K | 55% mail · 20% warm-follow D2D · 10% bottom-funnel Google · 10% retargeting · 5% community |
| $2M-$10M | $200K-$1M | 40% mail · 20% warm-follow D2D · 15% Google + LSA · 15% retargeting · 10% YouTube + content |
| $10M+ | $1M-$3M+ | 30% mail · 20% in-house sales reps · 15% Google · 15% retargeting · 10% YouTube · 10% community/events |
The unit economics that decide everything
Channel mix matters more than total budget because not all dollars produce the same return:
| Channel | Approx return per $1 spent |
|---|---|
| Mailed solar quotes (Solar Launch) | $32 |
| Warm-follow-up D2D (after mail) | $15-$25 |
| Cold D2D (high-performer rep) | $8-$15 |
| Cold D2D (average rep) | $3-$8 |
| Google ads (bottom-of-funnel, e.g., "solar installer near me") | $6-$12 |
| Facebook ads (retargeting) | $8-$15 |
| Facebook ads (cold) | $3-$8 |
| Broker leads (HomeAdvisor / Modernize / EnergySage) | $4-$10 |
| Referrals (years 2+) | Effectively infinite (after acquisition cost is sunk) |
A 100% mailed-solar-quote budget of $50K returns roughly $1.6M in install revenue at the average. A 100% cold-Facebook budget of $50K returns $150K-$400K. Both are "spending $50K on marketing" but the result is dramatically different.
The ITC dollars ride along
One thing many solar installers miss when budgeting: the 30% federal ITC effectively subsidizes the install on the homeowner side, which lifts close rates that depend on monthly-payment math. Mailed solar quotes that surface the ITC + 25-year savings math on the customer portal pre-qualify homeowners before you spend a sales hour. That makes the per-dollar return on mail meaningfully better than channels that hand over a raw name + phone number.
The first $1,000
If you're starting from zero and want to test the math: spend your first $1,000 on a single 1,000-postcard mailed solar quote campaign. Solar Launch's money-back guarantee says if your $1,000 campaign doesn't return at least $1,000 in install revenue, Dave refunds your campaign spend personally.
Across installers running this exact campaign, the average return is roughly $32,000 in install revenue. Worst-case outcome: you get your $1,000 back.
The math works on $200 too.
200 postcards, $200 spend, ~$6,400 average return. Free account, no subscription.
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