Put the power in your hands by knowing what to ask
There are different types of solar panels, solar energy systems, and inverters.
Be sure to know who will install the panels.
It costs between $17,000 and $32,000 to power a home independently.
Installation costs depend on how much electricity you use.
Read the fine print before signing a contract.
Whether it’s astronomical energy bills or those annoying power outages, one thing’s for sure—solar energy continues to grow, saving homeowners money and helping to keep the power on during electrical outages. However, not every solar energy system stays on during outages, so it’s crucial to know what questions to ask your solar company before investing. Check out these 17 questions to help you know exactly how to hire solar panel installers for your home.
It’s no secret that solar equipment is a major investment, so you don’t want to invest in the wrong solar panels for your home. Here are six questions to ask the pro before choosing your solar equipment.
Solar companies don’t necessarily install just solar panels, and not all solar panels are the same. For example, some companies offer solar shingles as an alternative to traditional shingles. You’ll also find there are different types of materials used in solar panels.
Here’s what you need to know to make an informed decision about the types of solar panels:
There are three types of solar panel systems on the market: monocrystalline, polycrystalline, and thin-film (or amorphous) solar panels.
Monocrystalline solar panels: Highest efficiency ratings but more costly than other types
Polycrystalline solar panels: Lower efficiency ratings but less costly than monocrystalline panels
Thin-film solar panels: Lightweight but less efficient, large, and more suited for commercial buildings
Low-quality solar panels do not give homeowners as high a return on investment as high-efficiency solar panels do, so discuss your options with the company during your consultation to ensure you’re getting the best bang for your buck.
There are also different ways that solar panels can work with the grid (called on-grid or grid-tied)—or work off-grid. Be sure to know which option you want before you speak with the installation company so that you’re informed when they explain which ones they provide.
Here are the different types of grid options for solar panels:
On-grid systems: A system that’s tied to the grid can mean compensation for electricity that is sent back to the grid when your panels create excessive energy, but when there’s a power outage, you won’t be able to use your panels to generate electricity.
Off-grid systems: Off-grid panels don’t connect to the grid at all, but you’re also on your own in terms of providing electricity to your home.
Grid systems with a battery backup: These systems are grid-tied but also have a battery backup that comes into action in case there’s an outage.
There’s one more feature of solar panels that can affect your choice: the inverter type. Solar electricity is direct current (DC) electricity, but most appliances in your home use alternating current (AC) electricity. Here are your options for converting the electrical current:
String inverters: These inverters connect strings of panels to just one inverter, which converts DC electricity into AC electricity.
Power optimizers: Power optimizers work with a string inverter to regulate DC electricity and send it to that central inverter to be converted into AC energy.
Microinverters: This option converts DC to AC without the need for a string inverter via the back of the individual panels.
Most companies install solar panels facing south, where they receive the most sunlight year-round. The panels will also be arranged at a 30- to 40-degree angle, depending on how far north you live.
While many houses have a slope that’s ideal for the installation process, some houses may be too steep or have a flat rooftop. Have a chat with the company to see how they’ll place the panels depending on your roof type.
To help you budget for the total solar panel installation cost, knowing how much electricity your home needs can help you estimate how much you might get quoted by a company.
On average, homes use 29 kilowatt-hours (kWh) per day. This is roughly 900 kWh per month or 10,000 kWh per year. Individual solar panels produce around 300 watts per hour on the most ideal, sunny day. To account for cloudy, rainy weather and nighttime, you’ll need anywhere from 12 to 20 panels.
Since this number can vary, your solar company should give you an estimate of the number of panels you’ll need.
Getting the right warranties for your solar equipment is key to a long-lasting installation and avoiding unnecessary out-of-pocket expenses. There are three types of warranties, two of which are offered by the manufacturer: the product and power warranties. The third type is a workmanship warranty, which is offered by your installer.
Product warranty: This protects the equipment in case there are manufacturer defects, like a faulty part. These warranties also guarantee the life span of your panels from 10 to 25 years.
Power warranty: A manufacturer provides a power warranty, which guarantees your panels will work up to a certain power output for 20 to 30 years. The actual amount varies by company, but many guarantee at least 80% of the power output of your equipment 25 years into the future.
Workmanship warranty: Some installers offer the workmanship warranty. This protects you from damage or problems related to the design and installation of your solar system. It may or may not cover labor costs related to necessary repairs.
You’ll also want to prepare for asking prospective solar companies about the cost of their services. Here are a couple of questions to help you out:
Solar panels cost between $18,400 and $36,400 to power an entire house, installation included. The panels alone cost anywhere from $4,000 to $16,000. Cost factors include the type of panels, size of the house, and energy use, to name a few. It can be hard to estimate costs, so always get quotes from at least three companies.
It’s also a good idea to ask for an itemized breakdown to compare solar companies and ensure you’re getting the best deal. Ask the company to include the cost of labor and each piece of equipment to see how the companies stack up to one another.
Since solar panel installation is a big investment, many people opt to finance this project. Some solar companies offer in-house financing, while others outsource solar panel financing to partnering banks. In addition to asking the solar company about financing, consider additional options:
Personal loans: Through your bank or other lending companies
Federal Housing Administration (FHA) and Fannie Mae loans: Available if you’re going to get a mortgage for a new home and want to bundle home renovations and upgrades, including solar panels
Home equity loans or home equity line of credit: If you have equity in your current home
An alternative to purchasing your solar panels is solar leasing. The solar company pays for the panel installation on your home, and then you buy the generated electricity at a fixed monthly rate. The lease lasts 20 to 25 years, and you can buy the panels at the end of the contract. Another similar option is a power purchase agreement (PPA), where you buy the electricity you use based on a fixed price per kWh. A PPA means your monthly rates can fluctuate.
Here are the tax credits and incentives that will help you reduce the total costs of installing a new solar system.
Federal solar tax credit: You can claim 30% of the installation costs through 2033 as a tax credit. You must meet specific requirements, and the credit is applied toward approved expenses only.
State tax credits or rebates: The ones you qualify for will depend on where you live, but they can include state income tax credits and property or sales tax exemptions.
Rebates via the utility company: Your electric utility company may offer rebates of around $1,000 for installing solar panels.
After your solar panel installation, you might also qualify for Solar Renewable Energy Certificates, where you sell the excess solar power you generate to the utility company. Another option is a performance-based incentive, where you get a flat-rate payment every month for each kWh of solar power you generate.
You don’t want just anyone climbing up on your roof and installing solar panels. Another essential part of the hiring process is knowing who will install the panels. Use these questions as a guide:
Are the installers full-time employees of the company, or do they subcontract? When headquarters are located out of state, companies hire subcontractors to do the installations. You might find that some local companies do this, too. If you want to ensure you have guaranteed quality control for your installation, choose a local solar panel installer.
How long has the company been in business in your state, what certifications do they have, and how many installations have they done in your area? Each state has different incentives, tax laws, and processes, so you want to make sure they understand the laws and processes for solar where you live.
Most solar panel installations take one to three days, but every company differs. It’s also useful to ask how long it will take from when you sign the contract to when the company turns on the solar energy system, as this can vary even more. It’s not uncommon for this process to take two months or longer.
This round of questions will help you vet the solar installation company itself. How does that particular company conduct business? Ask these questions to find out.
Will they let you call anyone from their customer list at random for an unrehearsed, unbiased reference? If they won’t, consider why they will only let you call customers they have picked ahead of time.
You might also want to do a little “background check” by searching for their current rating on Angi, the Better Business Bureau, or other reputable, independent customer review sites.
If your electricity will partly come from the grid, you’ll want to know exactly how this works and the company’s relationship with the utility company. Each local utility company has its own rules regarding home solar energy systems, so it’s beneficial to work with a contractor who knows the ins and outs of your utility company.
No one likes to think about paperwork and permits, but you don’t want to leave these out, as the payment scheme and legalities regarding your solar installation are vital to avoiding contractor scams and staying in code with your municipality.
If you’re planning on renting versus buying solar panels, be sure to obtain a copy of the solar lease and keep it in your filing box for safekeeping. If you’re buying solar panels, you’ll also want to read the fine print of what’s included in the quote and ask clarifying questions if any parts of the contract seem vague.
Important things to look out for in the contract include maintenance and repairs, warranties, what happens if the manufacturer goes out of business, and how you’ll finance your solar panels.
Will the company handle all the paperwork for acquiring the permit, solar renewable energy credits, grants, and other incentives, or will you have to navigate this on your own? If you don’t want to deal with bureaucracy, hire a full-service solar panel installer near you to handle the paperwork.
