How comparing solar quotes saves you money

Going solar is a large financial investment.  If you are planning on installing solar for your home, a comparison-shopping approach will ensure that you have all the relevant information you need, before you commit to one approach or purchase. By simply looking at different options, you can save up to 25% on the cost of solar compared to average costs in your state.  While you are exploring the market, take the time to review all your solar energy quotes in detail and don’t hesitate to ask lots of questions.  

1.  Compare Cash Prices

Whether you are planning to go solar with cash, a solar loan, or through a third-party leasing agreement, you should use the actual cash price of the system and installation.

The best way to compare the cash price of solar is to look at dollars per watt. For instance, if you are quoted a lump sum of $20,000 before tax rebates, to figure out how much it will cost you per watt, you first need to know the maximum wattage of your system. If your system has 20 panels at 300 watts each, that means you have a 6,000 watt system.  At $20,000, the price per watt comes out to $3.33.

It may also be helpful to ask your solar company for an itemized price list so that you can see what that $20,000 actually includes, and make sure there are no hidden fees you are unaware of.

2. Talk to Different Installers 

Just like you should compare the cost of solar equipment, you should not ignore the importance of comparing the cost of installation services from various installers. That $3 per watt price will likely raise to $5 or $6 dollars a watt when you factor in the cost of installation.

Though it is true that the more installers you talk to the more options you will have to compare, a good number to aim for is 3 to 4 installers. If you talk to just one installation company, especially if you let them know that you are talking to just one, you are giving that installer free reign to mark up the cost of their services however high they can go, as they are not competing for business.

Keep in mind that though many companies lump the product and installation price together, you can find a better deal ─ and a more transparent price ─ by getting the solar product quote separately from installation cost.

Don’t underestimate the importance of other, not cost-related factors when choosing an installer. Having a trustworthy, skilled professional installing your home solar system is crucial to your successful transition to solar. Read Choosing a Solar Installer for more tips. 

3. Compare Solar Panel Brands and Models

There are over 100 different solar panel brands, too many for most people to try and analyze. The good news is that solar panels are all pretty standard, with very minor variations across brands. If two panels have the same power rating, they should both be functioning the same, regardless of the price. The biggest variations in solar panel costs, have more to do with brand popularity than the actual quality of solar panels.

If you want to analyze panels brands and models in depth, you can compare them based on efficiency, durability, warranty, and visual appeal.  Keep in mind that though you will pay more for higher efficiency solar panels, you only need to worry about maximizing efficiency if your roof space is limited. Most good solar panels come with a 25 year warranty, so steer clear of any warranty lower that this standard. For a detailed look at the criteria for selecting solar panels read our blog.

4. Compare Inverter Types and Brands 

Choosing the right inverter for your home is crucial to the performance of your solar powered system. A good inverter can mean a difference of up to 20% in your system’s production. Inverters convert the DC electricity produced by solar panels to alternating current (AC) electricity, which is the type used by your home.

There are 2 types of inverters on the market:

♦  String inverters - convert electricity from multiple panels in a string.  These have traditionally been the cheapest, but prices are now leveling out. These are not as shade-tolerant and don’t let you monitor each panel’s performance, so they’re best if your roof has full sun all day.  Any problems with one panel will be felt across the entire string, because string inverters essentially treat a group of panels as if they were a single large panel.

♦  Microinverters - convert electricity from one panel. This can be a great option if you have any shading. If one or two panels are shaded at any time, the rest of your panels will still keep producing. Most microinverters allow panel-level monitoring. Micro inverters can be more complex and costly to install because they must be installed in tandem with individual solar panels.

Interested in a detailed comparison of solar inverters? Read If solar inverters were cars

5. Look into Different Solar Financing Options

In recent years, solar financing became easier than ever, making the process of going solar affordable even for those in difficult financial situations. Before you look at financing options, be sure to compare the actual cash price of your project, as various financing options can change that price. You can choose from these options:

♦  Cash purchase: If you can afford an upfront cash purchase, this is definitely the simplest, fastest, and cheapest option. In addition to saving you money, owning your system will allow you to claim the 30% federal tax credit as well as any other state or local incentives available in your area.

♦  Solar Loan: Today, there are many solar loan options: PACE loans, home equity loans, regular bank loans, loans from installers, etc.  If you are looking into taking out a loan, things to compare are the loan term, interest rate, and origination fee.  Look out for any surprises like escalation rates or prepayment charges.  Though you will pay a bit more for a loan over time than for a cash purchase, you will still end up owning your system and being eligible for government incentives.

♦  Lease or PPA: This option appeals to those who want to start saving money from Day 1, with no money down. With a 3rd party leasing agreement you save the least amount of money, but will still experience 10-30% savings on your electric bill. For a detailed analysis of pros, cons, and hidden costs of solar leasing options read Solar Lease or PPA.

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At HahaSmart we encourage every homeowner to receive and compare at least 4 different quotes to find the best deal for their project. Whether you are looking for cheap solar panels in California, or the best local solar installer in Florida, we have you covered and connected. Comparing quotes allows you to maximize returns on your investment and to end up with great solar equipment at a low cost.