Switching to solar energy is a major financial decision, and choosing the right contractor is crucial to ensure you get the most out of your investment. While most solar panel contractors are reputable professionals dedicated to helping you transition to clean energy, some may not be completely transparent about all the details. Hidden costs, performance issues, and complex maintenance needs can turn your green dream into a frustrating ordeal.
Understanding the full picture before you sign a contract can save you from unexpected expenses and future headaches. This guide will uncover twelve important things your solar panel contractor might not tell you upfront. By equipping yourself with this knowledge, you can ask the right questions, negotiate a better deal, and feel confident that you’re making a well-informed choice for your home and your wallet.
The Truth About Solar Panel Installation
Here are twelve secrets of the solar industry that can help you become a more empowered consumer.
1. The Quoted Price Isn’t Always the Final Price
Many homeowners are drawn to solar power by the promise of low initial quotes. However, the price you see on an initial estimate often doesn’t include everything. Contractors might leave out several potential expenses that can significantly inflate the final cost.
These “add-ons” can include:
- Permit and inspection fees: Local governments require permits for solar installations, and these come with fees that can range from a few hundred to over a thousand dollars.
- Structural reinforcements: If your roof isn’t strong enough to support the weight of the solar panels, it may need reinforcements. This is a common issue with older homes and can add thousands to your bill.
- Electrical panel upgrades: An older electrical panel may not have the capacity to handle the energy produced by a solar system. Upgrading your main service panel is a costly but necessary step that is often overlooked in initial quotes.
- Trenching for ground-mounted systems: If you opt for a ground-mounted system instead of a rooftop one, the contractor will need to dig trenches to run electrical conduits from the array to your home. This labor-intensive work can be a surprise expense.
Before signing anything, ask for a detailed, itemized quote that breaks down every single cost. Specifically inquire about permits, potential roof or electrical work, and any other foreseeable expenses.
2. Your Roof Might Not Be Ready for Solar
A solar panel system is only as good as the roof it sits on. Contractors are eager to make a sale and may not emphasize the importance of your roof’s condition. Installing a 25-year solar panel system on a 15-year-old roof is a recipe for disaster.
If your roof needs replacement in the next five to ten years, it’s far more cost-effective to replace it before installing solar panels. Removing and reinstalling a solar array to accommodate a new roof is a complex and expensive job that can cost several thousand dollars. Most solar installation warranties do not cover the cost of this service.
A trustworthy solar panel contractor should conduct a thorough roof inspection and be honest about its remaining lifespan. If they skim over this detail, it’s a red flag. Be proactive and consider getting an independent roofing inspection to assess its condition before committing to a solar project.
3. “No-Cost” Solar Leases Aren’t Really Free
You’ve probably seen ads for “free solar panels” or “no-cost solar.” These offers typically refer to solar leases or Power Purchase Agreements (PPAs). While you don’t pay for the installation upfront, these arrangements are far from free.
With a solar lease, you pay a fixed monthly fee to rent the solar panel system from a third-party company. With a PPA, you agree to buy the electricity the system produces at a predetermined rate, which often increases over time through an “escalator clause.” In both cases, the solar company owns the system on your roof.
The problem? You don’t receive the federal tax credits or local rebates—those go to the company that owns the system. Furthermore, selling a home with a leased solar system can be complicated, as the new buyer must agree to take over the lease agreement. While leases can make solar more accessible, they offer fewer long-term financial benefits than owning your system outright.
4. Not All Solar Panels Are Created Equal
A solar contractor might offer what seems like an unbeatable price, but this could be because they are using lower-quality, less efficient solar panels. The solar panel market is vast, with manufacturers offering a wide range of products that vary in efficiency, durability, and warranty terms.
- Efficiency: A panel’s efficiency rating determines how much sunlight it can convert into electricity. Higher-efficiency panels generate more power in a smaller space, making them ideal for homes with limited roof area.
- Durability: Panels are rated for their ability to withstand environmental stressors like hail, snow, and high winds. Cheaper panels may not hold up as well in harsh weather conditions.
- Warranty: Top-tier manufacturers offer 25-year performance and product warranties. A shorter warranty period can be an indicator of lower quality.
Ask your contractor for the specific make and model of the panels they plan to install. Research the manufacturer, read reviews, and compare the specs to other options on the market. A slightly higher upfront cost for premium panels often pays off through better performance and longevity.
5. Maintenance Isn’t Always “Set It and Forget It”
Solar panels are often marketed as a maintenance-free technology. While they are incredibly durable and require minimal upkeep, they are not completely hands-off. Dust, pollen, bird droppings, and leaves can accumulate on the surface, reducing their efficiency. In snowy climates, heavy snow can cover the panels and halt energy production entirely.
Most homeowners can clean their panels with a hose and a soft-bristled brush, but this can be dangerous on steep or high roofs. Professional cleaning services are available but come at a cost. Your contractor might not mention that you’ll need to factor in occasional cleaning to maintain peak performance.
Furthermore, inverters—the devices that convert DC electricity from the panels to AC electricity for your home—have a shorter lifespan than the panels themselves. A string inverter typically lasts 10 to 15 years and will likely need to be replaced at least once during the system’s lifetime. Microinverters and power optimizers last longer (20-25 years) but come at a higher initial cost.
6. The Savings Estimate Can Be Overly Optimistic
To close a sale, a contractor might present you with a savings projection that seems too good to be true. These estimates are based on several variables, including current electricity rates, your energy consumption, and the amount of sunlight your roof receives. An unscrupulous salesperson might inflate these numbers to make the investment look more attractive.
For example, they might assume a high annual increase in utility electricity rates or overestimate your system’s production. The “payback period”—the time it takes for your savings to cover the cost of the system—could be much longer than they claim.
Request a detailed breakdown of how they calculated your estimated savings. Ask what assumptions they made about future energy costs and system degradation (solar panels lose a small amount of efficiency each year). Use the PVWatts Calculator from the National Renewable Energy Laboratory (NREL) to get an independent estimate of your system’s potential energy production.
7. Shading Is a Bigger Deal Than They Let On
Even a small amount of shade can have a significant impact on your solar panel system’s output. A nearby tree, a chimney, or even a vent pipe can cast a shadow that drastically reduces energy production, especially in systems that use a central “string” inverter. With a string inverter, if one panel is shaded, the output of the entire string of panels can drop to the level of the shaded panel.
A contractor should perform a thorough shade analysis of your roof using specialized tools to identify potential obstructions throughout the day and year. They might downplay the impact of a small tree, hoping it won’t be a dealbreaker.
If your roof has unavoidable shading, ask about solutions like microinverters or power optimizers. These technologies allow each panel to operate independently, so a shaded panel won’t affect the performance of the others. They cost more upfront but can be essential for maximizing production on a partially shaded roof.
8. Their Recommended System Size Might Be Wrong for You
A contractor’s goal is to sell you a system, and sometimes that means pushing a system size that benefits them more than it benefits you. They might propose a system that is too large, leading you to overpay for energy production you can’t use or sell back to the grid due to net metering caps.
Conversely, they might suggest a system that is too small to meet your needs, making the initial price look more appealing but leaving you with a higher-than-expected utility bill each month. The ideal system size depends on your energy consumption, your future plans (like buying an electric vehicle), and your local utility’s net metering policies.
Provide the contractor with at least 12 months of your electricity bills to accurately assess your usage. Discuss any planned changes that could affect your energy needs and make sure the proposed system size aligns with your long-term goals.
9. They Might Use Subcontractors for the Installation
When you hire a solar company, you assume their in-house team will handle the installation. However, many companies outsource the actual labor to third-party subcontractors. This isn’t necessarily a bad thing, but it can introduce a layer of uncertainty.
You vetted the company you hired, not the subcontractor who shows up on installation day. Subcontractors may not have the same level of training, experience, or commitment to quality as an in-house crew. If something goes wrong, it can create a confusing chain of accountability, with the contractor and subcontractor pointing fingers at each other.
Ask directly if the company uses its own employees or subcontractors. If they use subcontractors, ask for information about the companies they work with and ensure they are licensed, insured, and experienced in solar installation.
10. The Warranty Has Fine Print
A 25-year warranty sounds impressive, but the devil is in the details. Solar panel systems come with multiple warranties, and they don’t all cover the same thing:
- Product/Equipment Warranty: This covers defects in the solar panels, inverters, and racking.
- Performance Warranty: This guarantees the panels will produce a certain percentage of their rated output over time (e.g., 80-90% after 25 years).
- Workmanship Warranty: This covers issues related to the installation itself, like roof leaks or faulty wiring. This is provided by the installer, not the manufacturer, and typically lasts 5-10 years.
A contractor might highlight the long manufacturer warranties but gloss over their own shorter workmanship warranty. If a roof leak appears six years after installation, you might be on your own. Also, find out what the warranty process entails. If a panel fails, who is responsible for the cost of labor to remove the old one and install the new one? Some warranties only cover the replacement part, not the service call.
11. Your Property Value Increase Isn’t Guaranteed
It’s often stated that solar panels increase a home’s value. While studies have shown a positive correlation, the increase is not guaranteed and can vary widely based on your location, the system’s age and size, and whether it’s owned or leased.
A Zillow study found that homes with owned solar panels sold for an average of 4.1% more than comparable homes without them. However, this premium can be lower in markets where solar is less common or where electricity rates are already low. As mentioned earlier, leased systems can actually complicate a home sale and may not add any value at all.
Think of the property value increase as a potential bonus, not the primary reason for your investment. The main financial benefit comes from reducing or eliminating your electricity bill over the long term.
12. Local Incentives and Policies Are Subject to Change
Federal, state, and local incentives can significantly reduce the cost of going solar. Net metering policies, which credit you for the excess energy you send back to the grid, are also a key part of the financial equation.
A solar salesperson might use current incentives to pressure you into a quick decision, warning that these programs could disappear at any moment. While it’s true that these policies can change, it’s important not to rush into a decision based on fear. Changes to major solar programs are often phased in over time, and projects that are already in the pipeline are usually grandfathered in under the old rules.
Do your own research on the incentives available in your area through resources like the DSIRE database. Understand the current net metering rules and any proposed changes. A well-informed decision is always better than a rushed one.
Finding a Contractor You Can Trust
Going solar is a significant step toward energy independence and a greener lifestyle. By arming yourself with knowledge and asking tough questions, you can cut through the sales pitch and find a contractor who will be a true partner in your solar journey. Always get multiple quotes, check reviews and references, and read every line of the contract before you sign. A transparent and trustworthy installer will welcome your diligence and work with you to ensure your solar investment is a shining success for decades to come.
