What Is Inside an Indicative Solar Finance Proposal

Before a client fills in a single form, they need to see what the deal might look like. That is what an indicative proposal does. It turns a system quote into a financed deal the client can picture, with a structure, a term and an indicative monthly cost. This post explains what is inside one, what it deliberately leaves out, and how it moves a deal forward.

For the wider context of where the proposal sits in the journey, see how solar finance origination works.

What is an indicative proposal?

An indicative proposal is an early-stage document that shows the likely shape of a solar finance deal before any formal underwriting takes place.

It takes the system the installer has quoted and frames it as a financed arrangement: which structure could apply, roughly what the term and monthly cost might be, and how that sits against the client's current energy spend. It is built to help the client make a decision, not to commit a lender.

The key word is indicative. Everything in it is a well-informed starting point, subject to the bank's formal assessment.

What is actually inside it?

Inside the proposal you will find the building blocks of the deal, set out so a non-specialist can follow them.

Typically that includes:

• The equipment being financed, drawn from the installer's quote. Solar PV, batteries, power quality, generators or water.
• A proposed structure, such as Asset Finance, Rent-to-Own or a PPA.
• An indicative term and monthly cost for that structure.
• An indication of how the cost compares to the client's current energy bill.
• The funding routes available: the client's own bank, the installer's lenders, or the lender network.

Where ownership applies, the proposal can also flag relevant benefits such as the Section 12B deduction, covered in the Section 12B solar tax deduction.

What is it not?

An indicative proposal is not a credit offer. This is the most important thing to understand about it.

It does not:

• Commit any bank to lend.
• Guarantee a rate, term or approval.
• Replace the formal underwriting the lender carries out.

The numbers are indicative only. The actual offer comes after the client applies and the funder assesses the deal. Being clear about this with the client up front avoids any mismatch in expectations later.

How does it help the client decide?

The proposal helps the client decide by turning an abstract price into a concrete monthly position they can weigh against doing nothing.

A client staring at a large capital figure often freezes. The same client, shown an indicative monthly cost set against their current energy bill, has a real decision to make. The proposal reframes the question from "can I afford the system" to "does this monthly number work for me", which is the question that actually moves deals. This is the mechanism behind how EPCs win more deals with finance.

What happens after the client accepts?

Once the client accepts the indicative proposal, the deal moves from idea to application.

The flow runs like this:

1. The client accepts the indicative proposal.
2. The installer is onboarded with the relevant lenders.
3. The client completes a guided, step-by-step finance application.
4. The deal is prequalified and KYC-checked, then packaged for the bank.
5. Offers come in, the client selects one, the contract is drafted and the first milestone payment is released.

Acceptance is not a commitment to borrow. It is a green light to find out what the funders will actually offer. What the bank looks for at that stage is covered in what banks look for.

Does the proposal show any costs or fees?

The proposal reflects the full deal, including the platform's success fee, because that fee is carried in the deal rather than added on afterwards.

The platform adds 1% of capex to the bill of quantities where a deal funds through its lender panel. The installer adds that 1% to the bill of quantities, so it is already inside the figures the client sees. There is no separate subscription or card fee. We explain the mechanics in the 1% success fee explained.

You can generate an indicative proposal for a client at no cost. Sign up free and turn your next quote into a deal the client can picture.

All figures in an indicative proposal are indicative only and not a credit offer. The lender does the formal underwriting.

Frequently asked questions

Is an indicative proposal a credit offer?

No. It shows the likely structure, term and monthly cost of a deal as a starting point. It does not commit any bank to lend, and the real offer follows the lender's formal underwriting.

How accurate are the figures?

They are well-informed estimates based on the quoted equipment and a sensible structure, but they are indicative only. The final terms depend on the funder's assessment of the client and the deal.

Does accepting the proposal commit the client to finance?

No. Accepting it simply moves the deal into a full application so the client can see real offers. The client is free to decline any offer that comes back.

Can a proposal show more than one structure?

Yes. A client can be shown different structures, such as a PPA next to a rent-to-own, so they can compare the monthly position and the ownership outcome before applying.