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How to Vet a Solar Company: 8 Steps Before You Sign

Installing a solar panel system is a significant investment, one that can yield substantial returns over time. However, the success of your solar endeavor hinges on choosing the right installation company. The industry is booming, and while many reputable companies exist, there are also those who may cut corners or lack the necessary expertise.

Before you sign on the dotted line, it’s crucial to conduct your due diligence. This comprehensive guide will walk you through the essential steps to vet a solar company, why they’re important and what you need to do to check them off your list.

1. Verify Business & Trade Licensing

The first and most fundamental step is to confirm that the solar company is properly licensed. In addition to a general business license, solar installation requires industry-specific licenses which vary by state and municipality. While some states only require an electrical license to install solar, there are others with much more extensive requirements, such as specialized exams, minimum experience and clean background checks. Solar electric work performed by unqualified individuals can be dangerous and lead to costly repairs, so don’t just take their word for it; look for official records.

If your situation calls for it, your proposal may require additional services to completely offset your utility bill or optimize system performance. The most common are roof replacement to ensure a secure and long-lasting foundation and tree removal to reduce shading or allow for more panels. If the representative provides a recommendation, you would be wise to confirm their licensing as well.

Why This Matters: Licensing provides assurance that the company meets industry standards and legal requirements, indicating professional commitment and accountability.

Action Overview: Check with your local building department or state licensing board to verify the company’s credentials.

2. Check for Insurance and Bonding

husband calling to verify solar company is licensed, bonded and insured while wife looks over proposal

Accidents happen, and ensuring a solar company has adequate insurance and bonding is essential to protect your investment, your home and yourself.

  • General Liability Insurance: This protects you from financial losses if the company causes damage to your property or someone is injured during the installation process.
  • Workers’ Compensation Insurance: This covers medical expenses and lost wages for workers injured on your property. Without it, you could be held liable for their injuries.
  • Bonding: A surety bond provides financial protection if the company fails to complete the project or doesn’t meet contractual obligations.

Why This Matters: Insurance and bonding offer financial security and peace of mind. They protect you from unexpected costs and liabilities.

Action Overview: Ask for proof of insurance and bonding and verify their validity with the issuing companies.

3. Evaluate Experience & Track Record

Experience matters in the solar industry. A company with a proven history of success is more likely to deliver a successful installation as well as ongoing service and support.

  • Years in Business: How long has the company been operating? A longer time in business compared to other companies in the area often indicates financial stability and industry expertise.
  • Number of Installations: How many solar systems have they installed? A high volume of installations within a service area suggests experience and efficiency.
  • Portfolio of Projects: Ask to see examples of their previous work. Look for projects similar to yours in size and complexity. Look for aesthetics that will increase your home value and curb appeal.
  • Local Experience: Does the company have experience installing solar systems in your area? Local experience is crucial for understanding local building codes, permitting processes, and weather patterns.
  • Online Reviews: Check review sites and social media. What is the company’s overall rating? Pay attention to both positive and negative reviews and look for patterns. Do previous customers have good things to say about them?
  • BBB Rating & Complaints: Are there unresolved complaints against the company? While any company can pay to become BBB accredited, an A+ rating with positive reviews and no complaints indicates a true commitment to customer satisfaction.

Why This Matters: Experience translates to efficiency, problem-solving skills, and a deeper understanding of the intricacies of solar installations.

Action Overview: Spend some time researching the company online to find out what current and previous customers think of them.

4. Assess the Quality of Panels & Equipment

The quality of the solar panels, inverters, and other components directly impacts the system’s performance and longevity.

solar company

Manufacturers

Research the manufacturers of the panels and equipment they use. Look for reputable brands with proven product performance and strong warranties.

Panel Performance

Though the formula is more complex from an operational standpoint, solar panel evaluation boils down to finding the most effective balance between materials, efficiency, degradation rate, compatibility and warranty. From a design perspective, size and aesthetics factor in as well.

Microinverters

Inverters are the brain of a solar power system. There are two types — string inverters and microinverters. In short, microinverters allow each panel to function on its own and as part of the whole, which positively impacts system performance, monitoring and serviceability. Ensure they use high-quality microinverters from well-known manufacturers.

Battery Storage

Make sure at least one solar backup battery or generator is included with your system and that it has enough storage capacity to keep the lights on if your utility provider experiences an outage.

EV Chargers

Confirm EV chargers match your vehicle’s charging capacity, offer reliable performance, and include smart features that align with your needs.

Mounting System

Solar racking and mounting is used to secure the panels to your roof or on your grounds. Choose durable mounts that sit on top of shingles instead of putting holes in your roof.

Warranty Details

Carefully review the warranties on all components and the installation workmanship. Understand what is covered, at what cost, and for how long.

Why This Matters: High-quality equipment ensures optimal performance, durability, and a longer lifespan for your solar system.

Action Overview: Look over warranties and product spec sheets to make sure they meet your long-term needs and expectations.

5. Ask Detailed Questions

Don’t hesitate to ask detailed questions to clarify any concerns you may have. At the end of the day, it’s your home and investment on the line, so nothing should be off limits.

woman asking questions about solar energy
  • What type of equipment do you use and why?
  • What financing options am I eligible for?
  • How long will installation take and when will my system be in service?
  • Who will be performing the installation?
  • What do your project management and customer service processes look like?
  • Which rebates and incentives do I qualify for and how do I claim them?
  • What happens if there are problems after installation?

Why This Matters: Asking questions demonstrates your due diligence and helps you assess the company’s knowledge, professionalism, and responsiveness.

Action Overview: Start with the questions above and take notes during your appointment to be sure all of your questions have been addressed adequately.

6. Analyze Solar Company Quotes

You don’t know what you don’t know. Estimates vary by industry, so unless you sell solar yourself it can be difficult to navigate this part of the process.

  • Detailed Proposals: Ensure each quote includes detailed information about the equipment, installation, and warranty.
  • Lowball Offers: Be wary of significantly lower quotes, as they may indicate inferior quality.
  • Initial Consultation Fees: If an installer needs to charge to help you understand what you’re buying and determine whether you want to do business with them or not, chances are you do not.
  • Apples to Apples: Compare quotes based on the same equipment and services to ensure a fair comparison.
  • Payment Schedule: Avoid contractors who demand a large amount upfront or in cash. A reasonable payment plan should be tied to financing or project milestones.
  • Financing Options: A good solar company will be able to offer you reasonable solar loan options, but you should also be allowed to secure your own financing if you so choose.

Why This Matters: Knowing what to look for can help you identify the best value for your investment and recognize when something is too good to be true.

Action Overview: Review and compare proposals with the same scope of work to weed out questionable contractors and find the best value.

7. Review the Contract Thoroughly

The solar contract, often referred to as the installation agreement, is a legally binding document that outlines the terms and conditions of the agreement between you and your chosen installer.

man reading solar company contract

Scope of Work

Ensure the contract clearly defines the scope of work, including the system size, projected annual production, type and number of panels and inverters, and other relevant information.

Project Timeline

The contract should include a realistic project timeline, including installation and interconnection.

Payment Schedule

The payment schedule should be clearly outlined, with payments tied to specific milestones or financing agreement.

Warranty Information

The contract should detail the terms of manufacturer’s warranties on all components and installation workmanship. These may be issued by equipment manufacturers, the solar company or a third-party.

Permitting & Inspections

The contract should specify who is responsible for obtaining permits and scheduling inspections.

Change Orders & Cancellation Policy

Understand the process for making changes to the project or cancelling the contract, as well as any associated fees and milestones.

Why This Matters: A clear, comprehensive contract protects your interests and ensures a clear understanding of the project terms.

Action Overview: Know what to look for and give yourself ample time to read the fine print before you sign on the dotted line.

8. Trust Your Gut

Like any relationship, choosing a solar company is a personal decision. These are some questions you may consider when evaluating a company’s character:

  • Communication: How responsive and communicative is the company?
  • Professionalism: Do they appear professional and knowledgeable?
  • Trustworthiness: Do you trust them to deliver a quality installation?
  • Dependability: Can you depend on them for service after installation?

Why This Matters: A good company will want you to feel comfortable with your decision and will not pressure you to move forward if you’re not ready yet. Better to have the right company come back another day than get stuck with a bad one.

Action Overview: If you have a bad feeling about a solar company, don’t sign that contract. Trust your instincts and choose a company that you feel comfortable with.

Investing in solar energy is a significant step towards a sustainable future and lower energy costs. By following these steps and conducting thorough due diligence, you will be well equipped to choose a reputable and experienced solar installation company that will deliver a high-quality system and a positive customer experience. Remember, the key is to be informed, ask questions, and take your time to make the right decision. Your solar journey begins with careful preparation and choosing the right solar company to partner with.

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