There is no dependable single solar dealer margin percentage for India. Public pages often use the word margin for different things: product resale spread, installation margin, project gross margin, commission, back-end rebate, or net business profit.
As of 26 September 2026, Qbits does not publish a fixed dealer margin. Several other solar companies publish either a broad percentage, a qualitative promise, or a payout mechanism. Those disclosures are not directly comparable. A dealer should use them only to frame questions, then model the actual written offer.
What solar companies actually publish about margins
The table below records what was visible on each named company’s own website on 26 September 2026. It does not convert an educational claim into a programme promise.
| Named first-party source | What the page publishes | What the disclosure does not establish |
|---|---|---|
| Qbits partner application | The page asks applicants to discuss current commercial terms with the partner team and states that it does not promise a fixed margin | No public percentage, product schedule, rebate formula, payout date, credit term, earnings figure, or territory promise |
| Tata Power official dealer article | Its 2026 article states a range of 20% to 35% on project execution and discusses installation plus after-sales income | It is not presented as a Tata inverter product-resale margin schedule. The page does not show an SKU price base, dealer discount sheet, rebate conditions, or a guarantee for an applicant |
| Servotech solar dealership page | It uses the phrase High Profit Margins and says partners can earn margins across its solar portfolio | The public page does not state a percentage, calculation base, product split, target slab, cost allocation, or payout amount |
| UTL Solar dealership page | The page describes High Profit Margins and links them to pricing, products, and demand | It does not publish a percentage or enough inputs to calculate a dealer’s realised gross or net margin. The page metadata showed an update on 27 July 2026 |
| Spectra Solar channel-partner page | It says the agreed margin is credited after the customer has paid the project amount in full, with possible bonuses tied to collections and quarterly targets | It does not publish the agreed percentage. This is a project-closing channel model, not proof of an inventory dealer’s inverter-resale margin |
This is why an attractive percentage can still be unusable. The reader may not know what was sold, which costs sit above or below the line, whether the amount is earned immediately, or whether the statement applies to that manufacturer’s current programme.
The Tata Power figure is the clearest example. The source labels it as project-execution margin. A rooftop project can include modules, inverter, structure, wiring, design, labour, approvals, travel, and follow-up work. Applying that percentage to an inverter purchase and resale would change both the revenue base and the cost base.
The honest conclusion is narrow: some public pages describe margin potential, but none of the disclosures above gives a comparable current inverter-dealer rate card.
Discount, markup, margin and profit are different numbers
Before comparing offers, name the number being compared. Four labels are often treated as interchangeable even though they answer different questions.
| Term | What it measures | Why it can mislead |
|---|---|---|
| Discount from list price | Difference between a stated list price and the dealer invoice price, divided by the list price | The list price may not be the price customers will pay |
| Markup | Difference between sale value and cost, divided by cost | Markup and gross margin use different denominators, so the percentages are not equal |
| Product gross margin | Difference between net sale value and landed product cost, divided by net sale value | It excludes operating costs unless they are deliberately included in landed cost |
| Contribution | Net sale value less product cost and the variable costs of making that sale | It still excludes fixed overhead and some finance or tax effects |
| Net profit margin | Profit after the business’s full recognised costs, divided by revenue | It depends on the dealer’s own operation, not just the manufacturer offer |
For a product-resale decision, start with values excluding recoverable taxes and have an accountant confirm the treatment. Let:
Sbe the net sale value actually achievable;Pbe the supplier invoice value on the same tax basis;Fbe inward freight, insurance, unloading, and other product-landing costs;Vbe sale-specific costs such as delivery, payment fees, and variable service expense; andRbe a rebate already earned under the written rules and reasonably collectable.
Then a working contribution calculation is:
Why a large list-price discount can produce a small realised margin
A list price is a reference value. It is not evidence of what the market will pay. If local competitors sell below that list price, the dealer’s real revenue base is lower.
The same problem appears with turnover. High turnover can coexist with low profit when stock moves slowly, credit costs rise, customer collections slip, price cuts occur, or service work is unpaid. Neither a list-price discount nor annual sales volume proves the profit left in the business.
Use three sale-value cases instead of one optimistic number:
- the normal achieved value supported by recent quotations;
- a lower value needed to clear ageing stock or meet local competition; and
- a return or cancellation case where freight, damage, restocking, or credit-note delays apply.
Repeat the calculation for each product family. A blended headline percentage can hide a poor result on the models you expect to sell most.
The written margin schedule should answer these questions
A usable commercial offer needs more than one percentage. Ask the manufacturer to fill every row or mark it unavailable.
| Commercial term | Evidence to request | Decision risk if it remains vague |
|---|---|---|
| Product scope | Exact models, customer types, channels, and effective date | A headline rate may apply only to selected products or sales |
| Price base | Dealer invoice schedule and the value used as the percentage denominator | Margin cannot be recalculated or compared |
| Upfront discount | Invoice treatment, quantity slab, and tax basis | A list-price discount may be mistaken for realised margin |
| Back-end rebate | Formula, target, measurement period, exclusions, and approval owner | Forecast profit may depend on a threshold that is missed |
| Payout trigger | Invoice, delivery, customer payment, collection, installation, or quarter close | Earned income may arrive after the dealer needs cash |
| Reversals | Treatment of returns, cancellations, credit notes, bad debt, and target shortfalls | Previously booked margin may be reversed |
| Freight and damage | Who pays dispatch, insurance, unloading, redelivery, and transit loss | Landed cost is understated |
| Price changes | Notice period, open-order treatment, and price protection for stock | Existing inventory can lose value after a price cut |
| Credit | Limit, due date, security, interest, suspension, and withdrawal rules | Credit is mistaken for profit or permanent funding |
| Stock exit | Rotation, obsolete models, return conditions, deductions, and termination stock | Slow stock becomes trapped cash |
| Warranty and service | Claim intake, diagnosis, parts, labour, travel, freight, reimbursement, and evidence | The dealer absorbs support costs not shown in the product spread |
| Channel conflict | Direct sales, online pricing, other partners, lead ownership, and territory rules | The achievable selling value falls below the model |
| Settlement records | Statements, credit notes, portal reports, audit rights, and dispute process | The dealer cannot reconcile what was earned and paid |
The solar dealer agreement checklist covers how these schedules connect to territory, stock, termination, liability, and post-termination obligations. Commercial terms belong in the approved documents, not only in messages or calls.
Model cash timing as carefully as the percentage
Two offers with the same stated margin can create different cash pressure. One may apply the benefit on the invoice. Another may issue a credit note after a quarter. A third may pay only after the end customer pays in full.
Build a dated cash-flow line for each step:
- purchase order and any deposit;
- supplier invoice and tax event;
- dispatch, freight, and receipt;
- customer invoice and collection;
- return or service cost, if any;
- target measurement and approval;
- rebate credit note or payment; and
- reconciliation and dispute deadline.
Then stress-test delayed customer collection, slower stock movement, a missed rebate slab, a price revision, and a warranty case. Use only the actual proposed terms. The application form asking about working capital does not mean Qbits has approved credit, stock returns, a margin, or any other commercial facility.
What to ask Qbits before making a dealer commitment
The current public Qbits page is an application route. It is not a commercial offer. If a dealer application moves into discussion, request a dated written pack covering:
Keep the dealer discussion separate from a distributor, EPC, or system-integrator offer. The role comparison guide explains why the revenue base, inventory duty, project responsibility, and service exposure change with the role.
A margin offer is decision-ready only when you can reproduce it
The practical test is simple: can your finance team take one completed sale, apply the written schedule, and reach the same amount as the manufacturer’s statement?
If the answer depends on an undefined list price, an oral target, an unnamed approval, or a future credit note with no due date, the margin is not ready for a business decision. Record it as unresolved.
If you have a supportable dealer plan and want to discuss the current Qbits commercial terms, complete the official Qbits partner application and select Dealer. Submission begins a review. Do not order stock, hire staff, lease space, or forecast earnings until the applicable terms are approved in writing and reviewed by your legal, tax, and accounting advisers.
Sources checked 26 September 2026: current first-party pages from Qbits, Tata Power, Servotech, UTL Solar, and Spectra Solar linked above. Public copy can change. Recheck the live page and obtain the current programme documents before relying on any statement.
Frequently Asked Questions
Does Qbits publish a dealer margin percentage?
Is a discount from list price the same as dealer margin?
What does a published project margin percentage tell a product dealer?
Which margin terms should be written into a solar dealer proposal?
Can annual turnover be used to estimate dealer profit?
Akash Hirapara CFO, Qbits Energy
CFO overseeing solar financing, procurement, and channel partner enablement at Qbits.