Is It Advisable to Compare Multiple Quotes for Solar Installation?

1. Do your Research

A. Ensuring Competitive Pricing

Solar installation costs vary widely between providers, sometimes by as much as 30%. You can compare prices and ensure you’re getting a fair deal by contacting several reputable installers. For instance, if one installer quotes $18,000 for a 6 kW system and another quotes $19,000 for the same setup, you can evaluate which offer provides better value based on additional factors like warranties or system efficiency.

C. Staying Informed About Market Trends and Incentives

Solar technology and incentives are continually evolving. Multiple quotes can provide insights into the latest trends, available incentives, and how providers incorporate them. For instance, one installer might include the latest high-efficiency panels or offer assistance in maximizing your eligibility for state and federal incentives.

2. Identify Reputable Installers

Start by identifying certified and reputable solar installers in your area. Utilize trusted resources like the Solar Energy Industries Association (SEIA) to find certified companies. For example, if you live in Eugene, Oregon, use the SEIA directory to shortlist five companies with high ratings and necessary certifications.

Verifying credentials like NABCEP (North American Board of Certified Energy Practitioners) ensures quality and professionalism.

3. Gather and Prepare Essential Information

Before requesting quotes, prepare detailed information about your property. This includes your average monthly energy consumption, roof type (e.g., asphalt shingles), roof age, shading issues from trees or buildings, and existing electrical setups.

Example:

Create a spreadsheet listing your last 12 months of electricity bills to show an average consumption of 900 kWh per month. Note that your roof is an asphalt shingle roof installed 10 years ago, and mention a few trees that cast shadows in the mornings.

4. Request Detailed Proposals

When contacting installers, clearly communicate your energy goals and preferences. Ensure each quote includes similar system sizes, panel types, inverter quality, and expected energy output for an accurate comparison.

Example:

Tell installers, “I aim to reduce my monthly electricity bill by 70% and prefer using _____ panels for their high efficiency.” Review each proposal to confirm that all include a ______ kW system with _________monocrystalline panels and _______ inverters, producing approximately ________kWh annually.

5. Evaluate Financial Options and Incentives

Understanding your financial options is crucial. Compare the costs and savings of purchasing your solar system outright versus financing through loans. Additionally, maximize available rebates and incentives to reduce overall costs.

Example:

Calculate that purchasing the system outright costs $18,000, while financing through a solar loan at 5% interest over 10 years totals $20,000. Estimate that loan payments ($212/month) are lower than your current energy bill ($250/month). Take advantage of the Federal Investment Tax Credit (ITC) to deduct 30% of your installation costs, reducing your tax liability by $5,400.

While comparing quotes, consider how financing options can affect your decision. Explore more in our guide: Solar Financing for Homeowners: Sungage.

6. Assess System Costs and Installation Specifics

Ensure each quote provides a detailed breakdown of costs, including equipment, labor, permits, and any additional fees. Consider how roof type and installation complexity might affect costs and system performance.

Example:

Installer A provides a breakdown: $12,000 for panels and inverters, $4,000 for labor, $1,000 for permits, and $1,000 for miscellaneous fees. Installer B lists $11,500 for equipment, $4,500 for labor, $1,200 for permits, and $800 for additional costs. If your roof is flat, ensure quotes include specialized mounting systems, which might add $500 to the total cost.

7. Understand the Levelized Cost of Electricity (LCOE)

LCOE represents the per-unit cost of electricity generated over the system’s lifetime, considering both direct and indirect costs. Calculating LCOE helps you understand the actual cost per kilowatt-hour (kWh) and the long-term value of each option.

Example:

Installer A’s $18,000 system, with a 25-year lifespan and a production of 7,500 kWh annually, produces 187,500 kWh of total energy. The LCOE is $18,000 / 187,500 kWh = $0.096 per kWh. Installer B’s $19,000 system delivers the same power, and the LCOE is $19,000 / 187,500 kWh = $0.101 per kWh. Installer A offers a slightly lower LCOE, indicating better long-term value.

8. Review Installer Credentials and Customer Feedback

Verify each installer’s certifications and read customer reviews to gauge satisfaction and reliability. It is also essential to compare warranty terms for solar panels and inverters.

Example:

Installer B has a 4.8-star rating on Google and numerous positive reviews. Contact a reference provided by Installer B, who shares their positive experience regarding timely installation and excellent customer service. Compare warranty terms: Installer A offers a 25-year panel warranty and a 10-year inverter warranty, while Installer B offers a 20-year panel warranty and a 10-year inverter warranty. Installer A’s more extended panel warranty may provide more peace of mind.

9. Create a Comprehensive Comparison Chart

Develop a comparison chart that includes all critical elements from each quote—cost, system size, efficiency, warranties, financing options, and installer reputation. This visual aid helps identify which option offers the best overall value.

Example:

Create a table with columns for Installer Name, Total Cost, System Size, Panel Type, Inverter Type, Warranty Terms, Financing Options, LCOE, Customer Ratings, and Additional Services. Populate the table with data from Installers A and B to compare their offerings easily.

Making an Informed Decision

After gathering multiple quotes and thoroughly evaluating each aspect, you’ll be well-equipped to decide which fits your needs best. Remember, the goal is to create an apples-to-apples comparison so you can see apparent differences. Suppose the information provided by one installer doesn’t match the information provided by another. In that case, it might mean the installer is trying to cloud your decision-making intentionally, and you should rule them out. When you compare apples-to-apples installers, you can make more informed decisions.  For instance, you might find that Installer A offers slightly higher upfront costs but a lower LCOE, more extended warranties, and better financing options than Installer B. Additionally, Installer A has excellent customer reviews and is NABCEP certified, making them the superior choice for your solar installation needs.

Future Considerations:

If you plan to add an electric vehicle (EV) charger in the future, ensure the current system can accommodate the additional load. Note that Installer A’s system has scalable capacity, allowing easy future expansion, while Installer B’s system is limited.

The good news is that solar quotes are generally negotiable. Members of the Solar Panel Talk forum often discuss their experiences with negotiating solar quotes, emphasizing the flexibility in pricing, especially when multiple quotes are compared ⁴ ⁵. It’s common for consumers to share tactics such as asking for price adjustments based on competitor quotes or adjusting system size and components to fit their budget better. Users also suggest that being well-informed about the system and its components can leverage negotiations effectively ⁴ ⁵.

For example, a user on Solar Panel Talk explained that after receiving multiple quotes, they could negotiate the price down by discussing the quotes with different installers and asking for adjustments based on the best offers they had received from others ⁴ ⁵. Another user noted that everything from the choice of panels to the specific payment terms could be subjects for negotiation, emphasizing that vendors are usually willing to adjust their prices to close the deal ⁴ ⁵

“How to Compare Solar Quotes?” is a fundamental question that addresses the methodology behind evaluating different solar Quotes. When comparing solar quotes, it’s crucial to look at several key factors that can significantly influence your decision-making process:

System Components: It is essential to understand the quality, efficiency, and warranty of the solar panels, inverters, and batteries being offered. EnergySage has released a Buyer’s Guide that allows consumers to compare these components across different brands on factors such as performance, quality, and cost¹⁶. Additionally, considering advanced options like Tesla Solar Panels and the Tesla Solar Roof can provide enhanced efficiency and aesthetic benefits.

Total Costs and Savings: Consider the upfront costs and the potential savings. As of 2024, the average price of a residential solar system in Oregon ranges from $2.50 to $3.50 per watt, translating to an upfront cost of approximately $15,000 to $21,000 for a typical 6 kW system before incentives⁷ .

Homeowners can expect to save between $800 and $1,200 per year on their electric bills with an adequately sized solar system for home¹⁸. With these savings, the payback period is typically around 9 to 14 years, depending on system size and incentives¹⁹, leading to a substantial return on investment over the system’s 25-year lifespan. Additionally, while Oregon’s specific Residential Energy Tax Credit ended in 2017, homeowners can still benefit from federal and state incentives, such as the Federal Residential Clean Energy Credit, which covers 30% of the installation costs, and the Oregon Solar + Storage Rebate Program, which provides up to $5,000 for solar systems¹⁹.

Installation and Operational Considerations: Evaluate the installer’s credentials, service history, and the proposed timeline for installation. The installer must provide a clear and detailed breakdown of all the operational aspects, including potential annual maintenance²⁰

“How many solar quotes should I get?” is a practical question that addresses the optimal number of solar Quotes to obtain for a comprehensive comparison. According to SolarReviews, it is recommended not to hesitate to gather multiple quotes from different providers¹. Comparing various proposals allows you to scrutinize different aspects like system size, costs, savings, financing options, and warranty terms to find the best fit for your needs and budget¹.

Gathering and comparing different quotes is crucial in understanding all your options and making an informed decision when choosing a solar system¹. Typically, obtaining three to five quotes is sufficient to get a broad market perspective without becoming overwhelmed. This number allows you to see a range of pricing and service offerings, giving you the leverage to negotiate better terms and prices¹. 

This matters because the more solar Quotes you have, the better you can evaluate the market and ensure you’re receiving a fair deal.

1. Cost Comparison: Always compare the costs of different solar companies to ensure you’re getting the best deal without compromising on quality.

2. Quality and Service: To avoid subpar installations, assess the quality of solar panels and the professionalism of the service.

4. Tailored Solutions: Ensure the solar system project is customized to your needs for maximum efficiency and cost-effectiveness.

5.  Negotiability: Remember that solar Quotes are often negotiable, and being informed can help you secure better terms.

7. Advanced Technologies: Consider integrating advanced solutions like Tesla Solar Roofs and Tesla Powerwalls for enhanced energy efficiency and aesthetic appeal.

How does the size of my roof affect the number of solar panels I need?

Assessing your roof size is crucial in determining the number of solar panels required for optimal energy generation. A professional assessment will help tailor a solar system project that fits your roof layout and energy needs. For instance, a more extensive roof can accommodate more solar panels for your home, allowing for more excellent energy production and potential cost savings.

What maintenance is required for a solar power system?

Regular maintenance of your home’s solar power system ensures longevity and efficiency. Most solar energy companies offer maintenance packages that include routine inspections and cleaning of solar panels to keep your system running smoothly. Additionally, integrating energy storage solutions like the Tesla Powerwall can reduce wear and tear on your system by optimizing energy usage patterns.

As a Local Solar Expert at AES Installer Company, I’ve seen firsthand how obtaining and comparing multiple solar Quotes can lead to better financial outcomes and more satisfying installations. Making an informed decision saves you money and ensures your home’s solar power is optimized for your specific energy needs.