VyaparCred Resources
Sourcing playbook

How to compare solar quotes on a like for like basis

The quotes are in. Here is how to work out which one is actually cheapest.

Quick answer

To compare solar quotes like for like, convert every quote to the same landed, compliant cost before you look at the numbers. That means adding duty, freight, insurance and clearance to each factory price, checking each quote is for the identical specification rather than a substitute, confirming certification is included and current, and normalising payment terms and delivery timing. The cheapest quote on paper is often not the cheapest once landed, because incoterms, duty and quiet specification changes move the real number more than the headline discount does.

Key takeaways
  • Convert every quote to landed cost before comparing, factory price alone is misleading.
  • Check each quote is the same specification, not a cheaper substitute.
  • Normalise incoterms, CIF and FOB quotes are not comparable as they stand.
  • Confirm certification is included and current on every quote.
  • Payment terms and delivery timing carry real cash value, count them.

The trap in comparing quotes

You have several quotes in front of you and one is clearly cheapest. That number is usually the least reliable thing on the page.

Quotes differ in what they include, what they assume, and sometimes in what is actually being supplied. Comparing the headline figures without normalising them is how buyers end up choosing the most expensive option while believing they picked the cheapest. The fix is mechanical: bring every quote onto one basis first, then compare.

This is the stage after you have collected quotes, if you are still at that stage, see how to get quotes from multiple suppliers at once.

Step 1: Normalise everything to landed cost

Landed cost is the only number worth comparing. For each quote, build it out:

Add to the factory priceWhy it changes the ranking
Customs dutyVaries by corridor and HSN code, often decisive
Freight and insuranceOnly included if the incoterm says so
Clearance and handlingReal cost, routinely forgotten
Certification costsIf not already included in the quote

Duty is the big one. A cheaper factory price from a higher-duty corridor can land more expensive than a pricier alternative, which is exactly the pattern in Vietnam or China: which is cheaper. For how the duty stack builds up, see import duty on solar panels from China to India.

Step 2: Check you are comparing the same product

The second trap is subtler than cost lines. A quote can be cheaper because it is quietly for something else.

Check each quote against your bill of materials line by line:

  • Exact model and wattage, not "equivalent" or "similar".
  • Technology and tolerance, as specified.
  • Warranty terms, product and performance, which differ more than buyers expect.
  • Component lines included, does the quote cover the whole BOM or only part of it?

A quote that substitutes a lower-spec module or drops the connection-layer components is not cheaper, it is incomplete. If a supplier has substituted anything, that also tells you something about how they will behave later.

Step 3: Normalise incoterms and payment terms

Two quotes at the same number can differ significantly in what you actually pay:

Incoterm. A FOB quote leaves freight and insurance to you; a CIF quote includes them. Comparing one against the other without adjusting is comparing two different deals. Convert both to the same basis before ranking.

Payment terms. Paying 100% up front versus staged payment has a real cash cost, because money paid earlier is money unavailable for the next order. On a large purchase, better terms can outweigh a small unit discount, which is why terms are worth negotiating explicitly, see how to negotiate with solar panel suppliers.

Step 4: Filter for compliance, then decide

Before ranking anything, remove any quote whose goods cannot be used on your project. A module that is not ALMM-listed where the project requires it, or an inverter lacking MNRE approval, is not a cheap option, it is not an option. See is ALMM mandatory and MNRE approval for inverters.

Verify certification is current and names the exact model, see how to verify solar supplier certifications. Only after that filter should you rank on landed cost.

Doing all of this by hand across several quotes is slow. Posting one RFQ on VyaparCred returns quotes already on a common specification with certification confirmed, so the comparison is like for like from the start, and you can attach PO Finance to whichever you choose.

The VyaparCred solution

Get quotes that compare themselves

VyaparCred returns quotes against one specification with certification confirmed and landed cost visible, so the like-for-like work is already done.

Every quote priced against the same specification, so nothing is substituted.

Certification confirmed per model before a supplier can quote.

Landed, compliant cost visible, not just the factory price.

Common questions

How do I compare solar quotes fairly?
Convert every quote to landed, compliant cost, adding duty, freight, insurance and clearance to the factory price. Then confirm each quote is for the identical specification, normalise incoterms and payment terms, and remove any quote that fails compliance.
Why is the cheapest solar quote often not the cheapest?
Because the factory price excludes duty, freight and clearance, which vary by corridor and incoterm. A cheaper quote from a higher-duty corridor can land more expensive than a pricier alternative once everything is counted.
What is landed cost in solar procurement?
The full cost of getting goods to you: the factory price plus customs duty, freight and insurance, clearance and handling, and any certification costs. It is the only number worth comparing quotes on.
How do I spot a specification substitution in a quote?
Check each quote against your bill of materials line by line, exact model and wattage rather than 'equivalent', technology and tolerance, warranty terms, and whether all component lines are included. A cheaper quote is often an incomplete or lower-spec one.
Can I compare a CIF quote against an FOB quote?
Not as they stand. FOB leaves freight and insurance to you while CIF includes them, so they represent different deals. Convert both to the same basis before ranking them.
Should payment terms affect how I compare quotes?
Yes. Paying fully up front versus staged payment has a real cash cost, because money paid earlier is unavailable for your next order. On large purchases, better terms can outweigh a small unit discount.
AC
Written by

Abhiraj Chakrabarti

Co-Founder, VyaparCred

Second-time founder with a prior D2C exit and 12+ years at the intersection of capital, technology and underserved markets. Building credit infrastructure for India's clean energy transition.

Connect on LinkedIn
Why VyaparCred

Source the full BOM and finance the order, from one RFQ

VyaparCred is a global solar procurement and finance network built for EPCs, developers and importers, bringing verified suppliers, transparent landed cost and embedded finance into a single flow.

Verified suppliers

Every supplier is vetted and certification (ALMM, IEC) is confirmed before they can quote.

One RFQ, many quotes

Post a single RFQ and compare verified quotes across corridors on landed, compliant cost in 24-48h.

Embedded finance

Attach PO Finance or Trade Finance to the order and fund up to 100%, decision in around 48 hours.

Every corridor

Access suppliers across China, Vietnam, Thailand, Malaysia and more, from one place.

The solar trade brief, monthly

Sourcing signals, corridor duty changes, and finance playbooks. No spam.

Please note: Any figures, timelines and cost estimates in this article are indicative and for general guidance only, not exact or guaranteed values. They vary by supplier, order, corridor and current market and regulatory conditions. Verify the specifics that apply to your situation before making commercial decisions.