Off-Grid Solar Installer Break-Even: ~$66K Monthly Revenue

Fixed costs $46.8K/mo Monthly base

Contribution margin 70.5% After variable costs

Break-even revenue $66.3K/mo Revenue target

Break-even timing Month 6 First break-even

Break-even calculator

Use this to test monthly revenue, variable expenses, and fixed costs against break-even for off-grid solar installation work.

Lean Base Full

Monthly revenue Revenue sets the margin pool that covers fixed costs. $ Low sales High sales Variable expenses These are direct costs that rise with each project, like hardware, specialty labor, travel, and sales fees. $ Low costs High costs

Money available to cover fixed costs $232,505 $318,500 revenue - $85,995 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead base your contribution margin must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which off-grid solar installation expenses stay fixed, and which move with sales?

Cost classification

The six fixed overhead lines total $10,100/month, but break-even reliability depends on separating them from revenue-linked job costs. Break-even in Month 6 is only useful if payroll steps, marketing spend, hardware, subcontractors, and remote travel are modeled in the right buckets.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and Office Rent	Fixed	Include $5,500/month before contribution margin math.	Treating rent as project overhead and spreading it only across closed jobs.
General Liability & Professional Insurance	Fixed	Include $1,200/month as recurring operating overhead.	Dropping insurance from break-even because it does not attach to one installation.
Fleet Insurance and Maintenance Plan	Fixed	Include $1,500/month even when crews have light job volume.	Mixing this base plan with fuel and remote travel usage.
Salaried Team Payroll	Semi-fixed	Model about $32.9k/month in the first year, then step up when headcount rises.	Assuming payroll scales smoothly with each new customer.
Annual Marketing Budget	Semi-fixed	Model $45,000 in the first year, or $3,750/month, as planned spend tied to lead targets.	Treating the full budget as a pure sales commission.
Hardware Sourcing & Logistics	Variable	Apply 14.5% of first-year revenue, falling to 12.5% in the mature year.	Using a flat dollar amount and hiding margin pressure on larger systems.
Subcontracted Specialty Electricians	Variable	Apply 8.0% of first-year revenue, falling to 6.0% in the mature year.	Classifying subcontractors as fixed staff instead of job-linked labor.
Remote Travel Overruns, Service Calls, and Project Coordination Load	Semi-variable	Track the base coordination load separately from added miles, return trips, and difficult-site follow-up.	Burying overruns in fixed overhead and overstating job margin.

How does break-even shift from lean to base to full remote-solar volume?

Scenario table

Lean volume sits on the break-even line, so one slow remote job can push cash negative. Base year 1 adds a modest cushion, and full scale widens it as hardware, labor, and travel ratios ease.

Planning cases only: these figures use model assumptions and core metrics, so they are useful for direction, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$61.0K	$17.1K	$43.0K	70.5%	$0.0K	At this volume, any delay can slip cash below the line.
Base year 1 operating case	$99.5K	$29.4K	$43.0K	70.5%	$27.1K	Month 6 is the break-even signal, but the cushion stays modest until the pipeline fills.
Full Year 3 scale case	$318.5K	$86.0K	$58.9K	73.0%	$173.7K	Scale improves the cushion as hardware, subcontractor, and travel ratios fall.

What pushes an off-grid solar install plan below break-even?

Stress test

Year 1 clears break-even by about $332K, but that cushion can shrink fast if signed projects slip, remote-site costs run hot, or payroll and fleet costs rise. Month 6 is the tight cash point.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$862K	$332K cushion	Year 1 stays above break-even, but Month 6 is the cash pinch point.
Revenue shortfall	Year 1 revenue runs 15% below plan.	$862K	$153K cushion	Delayed installs or slower sales cut the margin of safety fast.
Fixed-cost pressure	Payroll, rent, insurance, software, and fleet costs rise 10%.	$949K	$245K cushion	More fixed load means the pipeline has to stay fuller.
Margin pressure	Hardware, freight, travel, and commissions rise 5 points.	$928K	$266K cushion	Remote-site overruns and battery-heavy scopes eat the project cushion.
Combined pressure	Revenue is 15% light, fixed costs rise 10%, and variable costs rise 5 points.	$1.02M	$7K gap	A weak pipeline and higher job costs nearly erase the Year 1 cushion.

What should the founder verify before committing to trucks, payroll, and remote jobs?

Founder checklist

Don’t commit to the trucks, payroll, or remote projects until the quotes, travel map, and pipeline hold in real life. The model breaks even in Month 6, needs $697K minimum cash, and pays back in 14 months, so the first test is cash discipline, not hope.

1Hardware quotes14.5%

Confirm hardware sourcing and logistics stay near 14.5% of revenue, or each install funds less of the fixed base.

2Electrician rates8.0%

Lock subcontracted specialty electrician rates near 8.0% of revenue before you promise the next project, because labor leakage hits margin fast.

3Travel map4.5%

Define the service area before buying the second $65K truck, because fleet fuel and remote access travel run 4.5% of revenue and can rise outside the core zone.

4Base burn$43.0K/mo

Confirm fixed overhead and base payroll sit near $43.0K a month before variable work, so every project has a real monthly hurdle to clear.

5Pipeline gate$66K/mo

Verify Year 1 marketing spend of $45K and CAC of $1,500 can keep the pipeline near $66K a month before you add more staff.

6Cash reserve$697K / 14 mo

Keep enough cash to reach Month 6 with a $697K cushion, and plan around a 14-month payback instead of early owner draws.