What Is M1/M2 Milestone Pay?
M1 and M2 are the project milestones at which a solar rep’s commission is released in stages instead of in one payment, commonly after contract approval and again after installation, sometimes with a third milestone at permission to operate. Companies define the milestones differently, so the plan document controls.
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M1 and M2 are the project milestones at which a solar rep’s commission is released in stages instead of in one payment, commonly after contract approval and again after installation, sometimes with a third milestone at permission to operate. Companies define the milestones differently, so the plan document controls.
M1/M2 Milestone Pay explained
The structure mirrors how the company itself is paid: financiers and customers release funds as the project advances, so the company passes a share of commission along as each milestone clears. A two-milestone plan pays a portion when the deal is approved and the balance at completion; a three-milestone plan adds a final payment at permission to operate. How the split is divided is a plan term.
Reps feel it in cash flow. A big month of signatures does not mean a big month of pay, because the second payment trails installation by weeks or months depending on permitting and utility timelines. New reps are often surprised by the lag; veterans track their pipeline pay by milestone. Managers use milestone reports to forecast payroll and to see which deals are stuck.
Where people go wrong: assuming M1 means the same thing everywhere, when it may mean signed, approved, site survey passed, or notice to proceed; forgetting that early payments stay exposed to clawback until the final milestone; and mixing up the company’s funding milestones with the rep’s payout milestones, which may differ. Always read the plan’s definitions, and ask for a sample payout timeline built from a real deal.
Why it matters when you're buying
Milestone pay explains why a closer cares about what happens after the signature, from site surveys to utility approvals. Knowing the schedule lets a rep budget realistically, ask about stuck projects early, and sell with the finish line in mind, which is better for the homeowner and the company.
Frequently Asked Questions
What do M1, M2, and M3 mean in solar?
When do solar reps get paid?
Is M1 paid when the contract is signed?
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