The solar industry has grown considerably over the last decade, including the residential sector. If you were to do a quick Google search, you would find dozens of new solar companies offering the latest deals and rebates for what you need.
However, it’s important to understand what you need before you sign on the dotted line.
What to be on the lookout for
There are a lot of companies that use aggressive (and unethical) sales practices to sell you on the idea of solar. These tactics can sound too good to be true, and they likely are. Jump on a call with a sales rep for a solar company and the first thing they will dangle is the federal solar tax credit (26% in 2022; down to 22% in 2023; and then expiring in 2024, unless extended).
It’s a great program to encourage broad solar energy adoption.
However, that same sales rep might not explain what the credit is: a credit counted against the taxes you need to pay each year. This means that you will need to pay enough in federal income tax in order to match the percentage rebate of the total system’s cost.
A few others to keep in mind include:
- “Free” Panels: This is often used for product advertising, but it involves a PPA (power purchase agreement) or a lease. This means that you pay a nominal (or no) fee upfront, but pay a monthly fee for the panels over an extended period of time (this varies based on the terms of the agreement). We like to encourage folks to purchase outright to reduce the long-term cost, but that option might not be viable for every customer.
- Expiring Programs: Often, companies will try to convince you that either there is a special program coming to an end soon or that they have inside information about why you need to buy now. They very well might have insider information, but ask a few probing questions to better understand what they are suggesting. You might quickly realize that it’s a sales tactic and not genuine insight into the industry.
- Limited Equipment Choices: Every installer has a preferred brand or company they like to work with. However, their ability to source materials is likely about the cost per unit, per watt, or per kWh. If someone is saying a certain brand is the only option, be sure to follow up and understand why they’re making this claim.
- PPAs or Leases: These are perfectly viable for customers who cannot afford the total costs of a solar system. However, companies will leverage “free” and “low-cost solar options” without disclosing that you don’t own the equipment and will be paying out a higher cost over a longer period of time disguised as smaller monthly payments.
- Inability to Discuss Energy Costs: The biggest red flag from our perspective is an inability to scope or source a system’s costs for a potential customer. A solar company should be able to use your highest electric bill (or yearly usage) to determine solar panel, inverter, and battery needs and costs quickly and easily.
Making the best decision
We would love to be the company you decide to purchase solar through. However, we are not so presumptuous as to think we are the only and best option for everyone. We provide accurate quotes and scope your potential system to ensure that you get the most for what you purchase. On the flip side, we do not lease equipment or participate in PPAs.
If you’re thinking of going solar, here’s a checklist of things to consider before purchasing:
- Do you know what you are looking for?
- Do you understand the difference between grid-tie systems and off-grid systems?
- Do you understand your utility company’s guidelines for solar?
- Do you have a firm budget for what you want to purchase?
- Have you researched multiple companies in order to get the best quote possible?
- Do you have a list of questions for a potential solar installer or solar company to ensure you understand what you’re purchasing?
Certainly, it also helps to do some research on what kinds of systems you might want to invest in. Without a plan, it is the unfortunate truth that some companies will try and take advantage of you. Our goal is to provide clear answers to solar questions, as well as quality products & installations for our customers.
If you would like to purchase a solar system or solar kit, then get in touch with us today!