How to Choose a Solar Company

6 steps to hiring a solar company

Here’s how to find a solar company you can trust.

1. Research solar companies in your area

The best place to start your search is with neighbors who’ve already gone solar. These conversations surface problems that often don’t make it into online reviews. Ask them these questions:

• How well did your installer communicate throughout the project?
• Did the timeline match what the company promised you?
• When problems came up, how long did the company take to respond?
• How long has this company been working in our area?
• How many local installations has it done?

Once you have a few names, check consumer review sites like ConsumerAffairs for patterns in complaints. Also, verify each company’s local track record.

Local vs. national solar companies

Local companies often use their own crews for sales, installation and service. This creates clear accountability when something goes wrong. Aaron Nichols, research and policy specialist at Exact Solar, a Newtown, Pennsylvania-based solar installer, advised working with local companies for this reason.

Many national solar companies work differently. “They’re often sales organizations that subcontract jobs to local installers,” explained Nichols. That structure makes it unclear who’s responsible for workmanship or component warranties.

Pro tip: Ask for references

“Solar companies can fake reviews, but referrals are hard to fake,” Nichols said. Get contact information for two or three homeowners who installed systems similar in size to yours. Then, call them and ask about their experiences.

» COMPARE: Best solar energy companies

2. Compare quotes and system proposals

Ben Delman, editorial director at Solar United Neighbors, a national nonprofit dedicated to the interests of solar owners, recommended getting at least three quotes from installers with proven experience in your area.

The average homeowner spends $19,873 on solar panels.

Ask installers what grade of equipment they use and whether their warranty covers both parts and labor. Often, the price gap reflects what you’ll pay down the road.

What to focus on

Industry experts suggest focusing on these key elements when reviewing quotes:

• System size and production estimates: Each proposal should specify your system size in kilowatts. It should also estimate the annual electricity production.
• Equipment specifications: The proposal should list the brands and models of panels, inverters and racking systems. You don’t need to become an expert in solar technology, but you should know what equipment you’re paying for.
• Timeline and approvals: The physical installation often takes one to five days. But permitting and utility interconnection can stretch the process by weeks or months. Companies with experience in your area often move through these steps more quickly.

Did you know?

A company offering a lower quote might use inverters with shorter warranties (often around 10 to 12 years) instead of longer-coverage options (sometimes 20 to 25 years, depending on type and brand). It might also skip monitoring systems that would catch problems before they get expensive.

» LEARN: Solar panel cost factors

3. Verify licenses, insurance and certifications

“A general business registration doesn’t validate the provider’s ability to perform solar services,” warned Dean Mahmoud, CEO of EcoGen America, an Orlando, Florida-based renewable energy company.

So, ask every installer to provide proof of the following:

• Current licenses: Most states require solar installers to hold an active contractor license, and many require an electrical license for system wiring. You can verify these through your state’s contractor licensing board website.
• Insurance coverage: Companies need to carry general liability insurance and workers’ compensation coverage. Without these, you could be on the hook if a worker gets injured while installing your panels. These policies also cover you if the installation damages your roof.
• Industry certifications: The North American Board of Certified Energy Practitioners (NABCEP) certification isn’t mandatory. However, “it represents the highest level of technical competency for an installer performing work on your roof,” Mahmoud emphasized.

Key takeaway

If an installer can’t produce this documentation or seems evasive about credentials, move on to another company.

4. Understand financing and long-term costs

How you pay for solar affects your upfront costs and who owns the system.

When you buy a solar system with cash, you own it outright and have full control over the equipment. But most people prefer not to pay upfront. That’s where loans, leases and power purchase agreements (PPAs) come in.

• Solar loans let you own the system while spreading payments over time. Delman pointed out that homeowners can choose from credit union loans with low fees, home equity loans with good interest rates or solar-specific financing through banks.
• Leases let you get solar panels with little or no money down, but you won’t own them. With a lease, you typically pay a fixed monthly amount (or an amount that increases annually if the contract has an escalator).
• PPAs are similar to leases. With a PPA, you only pay for the electricity the panels actually produce. If you sell your house later, the buyer has to agree to take over your agreement.

Which is right for you?

Compare the total cost over the system’s lifetime (not just the monthly payment) if you’re financing.

A loan with a lower interest rate might have higher monthly payments. But it could cost you less over 20 years than a lease with smaller monthly fees.

Ask installers to break down interest, origination fees and what happens at the end of the contract term.

5. Review the contract and fine print

After settling on a financing option, you need to get everything in writing. Delman explained that your contract should detail these elements:

• System specs and costs: This includes system size (in kilowatts), total costs and estimated annual energy production.
• Payment terms: Look for the contract length, payment schedule and any financing conditions.
• Permitting and approvals: Ensure it states who handles permits, inspections and utility interconnection.
• Warranty protection: Check how long the workmanship warranty lasts and what it covers. Ask whether the warranty covers labor costs for replacing defective parts or just the parts themselves. Panel and inverter manufacturers provide separate equipment warranties.
• Ownership and maintenance: It should be clear who owns the system, who handles ongoing maintenance and who owns any solar renewable energy credits (SRECs) your system generates.

Before committing, “get a full design in hand and a technician from the solar company to give the technical scoping of your project,” Nichols suggested. “If no one’s willing to inspect your property, that’s a huge red flag.”

And if you’re leasing or using a PPA, clarify what happens when you sell your home. Can the buyer take over the contract, or do you need to pay it off? “The transferability clause is the most important detail to understand,” Mahmoud noted.

Pro tip

Never sign a solar contract the same day a salesperson shows up or calls. High-pressure tactics prevent you from comparing offers or spotting bad terms. Reputable installers give you time to review contracts, ask questions and consult with family.

6. Trust your gut and make a decision

“Transparency is the greatest sign of trustworthiness among installers during the sales process,” Mahmoud said. The right company will answer your questions thoroughly and explain how it calculated your system’s projected energy production. Reps should also walk you through every step with no pressure.

Solar panels stay on your roof for decades. So before you sign, make sure you’re comfortable with the financing and contract terms. Ask yourself:

• Do I know my monthly payment and the total I’ll pay over 20 years?
• Will the warranty actually last as long as the equipment needs to?
• What happens to this contract if I sell my house?

If anything about the terms feels off or you’re second-guessing, don’t sign yet. Ask for time to review the contract with someone you trust, or keep looking at other companies. Rushing into the wrong contract will cost you far more than taking a few extra weeks to find the right installer.

Compare solar energy companies

Read our guide to the best solar companies to learn more.

Share your solar company experience

If you’ve already gone solar before, consider writing a review at ConsumerAffairs.com to help others make better choices.