D2D glossary / Solar terms
What are M1 and M2 payments in solar sales?
M1 and M2 payments: M1 and M2 are milestone payments: a solar rep's commission paid in two parts as the project advances. M1 is paid at an early milestone and M2 at a later one, such as installation or utility approval.
A solar project moves through stages: signed contract, site survey, design, permit, installation, inspection and the utility's permission to operate. Installers are paid by lenders at certain stages, so they pay reps at stages too.
Which stage triggers each payment, and how the commission is split between them, differs by company. One may pay the first part when the permit is issued, another only after installation. Since a project can take months, these two definitions decide how long you wait for your money.
Ask before you sign
Which milestone triggers M1 and M2, and how many days after each is pay sent?
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M1 and M2 payments: quick answers
What are M1 and M2 payments in solar sales?
M1 and M2 are milestone payments: a solar rep's commission paid in two parts as the project advances. M1 is paid at an early milestone and M2 at a later one, such as installation or utility approval.
What should I ask a company about M1 and M2 payments?
Ask this before you sign: "Which milestone triggers M1 and M2, and how many days after each is pay sent?" Get the answer in writing, in the rep agreement or the pay plan.