Key Questions and Answers About Going Solar - Consumer Reports

That depends on what you’re spending on electricity, the amount of power that an installed solar photovoltaic (PV) system can provide, your finances, and your time frame for living in your home.

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Calculate your average monthly electric expenses by tallying your electric bills for the past 12 months and dividing by 12. Plug that figure, and your address, into a solar calculator such as Google Project Sunroof, EnergySage, or SolarReviews. Those tools will combine that information with aerial views of your roof from Google Earth, Tesla Maps, or another aerial photography tool to estimate how big a PV system your home could handle, how much you could save over, say, 20 years, and your investment’s break-even point: that is, when a purchase would begin to pay off. The average homeowner who buys a solar panel system could break even in 8.7 years, EnergySage says. 

Savings and break-even estimates for the same property can be wildly different among the calculators, so consider them a starting point in your decision-making. But if you plan to sell your home before the earliest break-even point, a solar purchase probably doesn’t make sense.

If your roof is old, the answer is no—at least not until you replace it. Asphalt shingles that are 10 years old or more should be replaced before adding a solar array on top, says Ana Almerini, a spokesperson for SolarReviews. New solar panels are warrantied to last, on average, 25 years, while most roofs are warrantied for 30 years or less. If your 10-year-old roof needs to be replaced at its 30-year mark—20 years into your solar array’s lifetime—you’ll need to remove everything to reroof and then reinstall the solar system, a costly proposition.

With newer roofs, you’ll still only know for sure if a solar installation is feasible after a solar company rep checks out your roof and surrounding foliage in person. They’ll determine whether there’s too much shade or other obstacles, or the roof has problems that don’t make an installation worthwhile. That inspection costs you nothing and takes place before you sign on the dotted line. Or, If you’d rather find out whether your roof is a candidate before you shop—avoiding the calls, texts, emails, and visits to your front door you can expect from aggressive salespeople—pay a roofer for an inspection. 

Check, too, with your municipality—and homeowners’ association, if you have one—to find out about any restrictions on the type and placement of solar panel arrays. 

The most powerful savings tool for homeowners who buy their solar systems is the federal solar tax credit, available for installations through . It allows you to subtract 30 percent of the cost of buying and installing solar heating, electricity generation, and other solar home products from your federal taxes. There’s no dollar limit on those expenses; you’re entitled to that 30 percent tax break whether you spend $20,000 or more than $100,000 on costs associated with a residential solar system.

This break is available to all taxpayers for their primary or secondary residence located in the U.S. Taxpayers of any income level can take advantage of it. You can use it whether you itemize your taxes or take the standard deduction. Keep in mind, though, that the solar tax credit is available only if you purchase a solar system; if you lease one, you can’t take advantage of the credit. And if you don’t typically owe taxes, the credit isn’t useful.

You also could further your savings in these ways: 

Local and state incentives. Your state may offer additional breaks, including tax rebates or sales tax exemptions (see this state-by-state compilation from Solar.com, an online solar marketplace). Your municipality may exempt your solar system from your home’s assessed value, so your taxes don’t rise even as your home value does.

Rebates. Your electric utility, as well as certain installers and manufacturers, also may offer rebates for buying and installing a system. 

Sale of your excess electricity. In a handful of states, solar-home owners can arrange to sell their excess power to utilities. They sign up with a marketplace that assigns the excess electricity a certain number of solar renewable energy certificates (SRECs); those SRECs are then traded in a marketplace with fluctuating prices. The District of Columbia and eight states—Delaware, Illinois, Maryland, Massachusetts, New Jersey, Ohio, Pennsylvania, and Virginia—have such marketplaces. In some areas of Michigan, Indiana, Kentucky, and West Virginia, residents can participate in Ohio’s SREC marketplace.

Leasing is commonly marketed as a way to finance a solar installation for those who aren’t using cash. The benefit of leasing—usually a 20-year commitment—is that you put no money down. Your energy bills are instantly lower, based on a formula the solar provider devises. Maintenance is handled by the solar company as well. Typically you pay a set monthly amount for electricity— regardless of how much power your system produces. (In a power-purchase agreement, a lease variant, you pay for what your system produces.) 

Just be aware of the pitfalls and caveats of leasing, which make this type of financing less beneficial to homeowners than cash purchases or loans. For one, the solar panels, racks, and inverters on your roof aren’t yours, and the solar company that owns them—not you—benefits from all the available tax incentives. Interest rates can be higher than for financing you obtain yourself. Your monthly payment also can rise each year with a lease, versus a loan payment that stays constant. 

And, depending on where you live, your home could be more difficult to sell with a leased solar system in place. If the new buyer doesn’t want to continue the lease, the solar company will remove its panels and you’ll have to pay what you still owe on the lease. Buyers who agree to assume the solar lease need to report those payments as their own debt when applying for a mortgage, added to any credit card balances, student debt, and car loans they already owe. “That lease payment could throw the buyer into a higher interest rate, or not qualify them for a loan at all,” says Sandra Adomatis, a real estate appraiser in Punta Gorda, Fla., and an expert in valuing green homes with The Appraisal Institute, an industry group. 

Taking a loan from the solar company also isn’t ideal. The interest rates the solar company will charge may be higher than what you’d get by seeking an independent lender yourself. And solar dealers often tack on significant origination fees—up to 30 percent of the system’s cost, compared with 1 to 5 percent for traditional loans. “I wouldn’t use the financing from the solar company,” says Garrett Mendelsohn, founder and CEO at Solar Bootcamp, based in Palmas del Mar, Puerto Rico, which teaches solar company representatives how to sell systems virtually. “Ninety percent of the time, you’re paying a high interest rate and huge dealer fee.”

If you’ve been in your home a while, a less costly way to finance your solar investment is through a home equity loan or home equity line of credit (HELOC) or loan, borrowing off your home’s built-up value. The interest rate is likely to be lower than if you seek a personal loan for the job. And, you can deduct the interest on your federal tax returns for a major solar installation; the IRS permits such deductions when home equity is used to “substantially improve” your home.

For HELOCs and other types of loans, consult comparison sites like Bankrate, Lending Tree, and SoFi for competing interest rates and terms. New-home buyers and those refinancing also can check out Fannie Mae’s HomeStyle Energy Mortgage Program, which can help you bundle a solar loan into the new mortgage. 

After closing, keep an eye on interest rates. You can refinance when current rates, now relatively high, begin to fall. 

Solar installers are typically one-stop shops, offering you panels and inverters—and the racks that hold them—as well as installation. In addition to offering their own financing, they may sell extra warranties, monitoring, and maintenance. 

To find installers, search for “solar installer,” or input your address and other basic personal information into comparison websites like EnergySage and SolarReviews; each analyzes the quality of local providers and their products using technical measures; they both also use consumer reviews. (EnergySage doesn’t require your number, a boon if you want to avoid texts.)

The not-for-profit Consumers’ Checkbook is another source of reputable installers, providing reviews of local services in seven major metro areas—Boston, Chicago, the Delaware Valley, Puget Sound, San Francisco, the Twin Cities, and Washington, D.C. In the Bay Area—subject to California’s relatively new mandate that new, low-rise residential construction include solar photovoltaic systems—Consumers’ Checkbook has reviews on 132 solar contractors. 

Before you arrange for an in-person or Zoom consultation from companies you identify through these tools, ask providers to show proof that they’re licensed in your state and municipality to do the work where you live. Check, too, with the Better Business Bureau in your area for complaints. Confirm that the companies have been certified by the North American Board of Certified Energy Practitioners (NABCEP), a trade organization that sets standards for solar installers. Your utility company or state energy board also may list providers that meet certain quality standards. The New York State Energy Research and Development Authority (NYSERDA), for instance, offers a search for solar contractors with a “Quality Solar Installers” designation. 

Neighbors with recent installations might be willing to talk to you about their experiences with solar contractors. Or, ask for input through community forums like NextDoor and the Facebook page for your community. And when you contact a company, find out how long they’ve been doing solar installations. Choose a company with several years’ installation experience, and ideally a presence in more than one state, Mendelsohn advises. He also recommends finding a company that uses its own, in-house installers.

You’ll see lots of figures and factors in a solar proposal. But there are five really worth focusing on when comparing offers.

Price per watt or kilowatt. That’s the upfront cost divided by the size of the system. The lower the cost per watt, the better the system’s value. You can use each company’s estimated cost per watt to compare proposals. “It’s like unit pricing at your supermarket.” explains Vikram Aggarwal, EnergySage CEO.

Warranties. They may differ for the workmanship, the solar panels, and the inverters—that is, the mechanisms that take the direct current (DC) that the solar panels create and convert it to alternating current (AC) electricity that our homes use. A standard solar panel warranty is 25 years, Aggarwal says. Inverter warranties range from 10 to 25 years.

Rated power. This is a measure of the system’s efficiency—that is, how much electricity it puts out under ideal conditions. Rated power of at least 400W is preferable; Aggarwal recommends 420W to 440W, because he says it’s the most efficient. The solar company should also give you a projection of how much the power production will degrade by the time the warranty expires. Solar panels’ productivity degrades at a median, 0.5 percent a year, according to the Department of Energy’s National Renewable Energy Laboratory. At the end of a typical, 25-year warranty, that translates to productivity of 87.5 percent.

Annual production. You may notice that the proposals you get from different companies show dramatically different estimates of the amount of power they can provide—from, say, 100 percent of your current needs to 125 percent or more. Why bother with all that excess power? If, say, you add an electric vehicle to your power consumption, planning for more power may be worthwhile. “If you think you’re going to buy an electric car in next four to five years, you may want to oversize your system now,” Aggarwal says. “Most installers won’t be willing to add new panels and inverters in the future.” Depending on the arrangement with your utility, you may be able to sell back the excess power, reducing your electric bill further. 

Quality of the solar equipment. You can look on EnergySage and SolarReviews for comparisons and judgments of solar panels and inverters; names like Canadian Solar, LG, and QCel show up highly rated there. For inverters, experts we talked to preferred microinverters, individual units attached to each panel, versus string inverters, which are connected to both the panels and each other like Christmas lights. As with Christmas lights, string inverters are annoyingly interdependent. “If one panel goes out, Aggarwal says, “the whole system goes out.”

Home solar panels can reduce your electricity bill for decades. But if you're left with questions like, “Really?” or, “What’s the catch?” or, “How do solar panels even work?” no one would blame you, though solar panels are now a commonplace technology.

Whether you’re paying the cost of solar panels upfront and buying them, or getting a solar lease, it’s important to understand your decision and investment. Asking the right questions can help you find the best installer for you and weed out any bad deals along the way.

20 Questions to Ask a Solar Installer

To achieve the best possible experience when you go solar, let’s play a game of 20 questions you can ask at your next solar consultation.

1. How much will solar panels save me?

While you’ll still receive an electricity bill after going solar, you should save money. While it’s impossible to predict exactly how much solar panels can save you, installers can give you a reasonable estimate. Your actual savings will depend on how much your electricity rates change and whether incentives like net metering shift during your solar panels’ lifespan.

Your savings will also shift throughout the year, thanks to solar seasonality. It’s useful to get a clear understanding of your potential savings throughout the year and over the projected lifetime of your solar installation.

2. What solar incentives are available?

Asking your installer about available incentives is important to maximizing the value of your investment. Whether or not you qualify for the federal solar tax credit and other local solar incentives may significantly impact the return on investment of your energy system.

Around the country, solar incentives vary greatly by state and region, with some cities, counties, and utilities offering their own programs, tax credits, tax exemptions, rebates, and more.

3. Do you sell or lease your solar panels?

Decide whether you will buy or lease a solar system based on your personal preferences, financial goals, and available options and make sure your installer can deliver what you want.

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Buying means the system is your property and, in most cases, you will save more over the lifetime of your systems. A lease or power purchase agreement, such as Palmetto’s LightReach Energy Plan, will give you solar power from a home system with no upfront cost and manageable monthly payments. 

4. Do you offer financing options?

Unless you’re able to pay for your panels upfront or are leasing them, you may need to finance your system through a loan. Many reputable solar installers offer loans, though you can always shop around..

By working with a company with multiple financing options, you are more likely to find a solar loan structured to fit into your budget that can unlock your long-term savings on electricity.

5. What type of solar panels do you install?

One of the most common questions solar companies are asked is, “What type of panels do you install?”

While there are differences in performance among solar panels, you probably don’t need to stress over the options. In some instances it may be beneficial to pay a bit more for highly efficient solar panels, you can typically achieve your savings and energy goals with multiple solar panel options, so long as your installer can provide solar panels of typical efficiency (around 20%) and wattage (350 watts and above).

6. What do your warranties cover?

You will likely have multiple solar warranties (product, performance, installation) associated with your energy system.

Before signing on the dotted line, talk to your installer about exactly what each of these warranties covers, how long the coverage periods are, and if you can extend the policies during the lifetime of your solar panels.

7. What if a part of my system breaks?

Along with warranty coverage, you should talk to your installer about the likelihood of system damage and what repair or maintenance procedures will be, even if solar panel maintenance is typically infrequent.

If you’re covered by a maintenance and monitoring plan, your installer will have a dedicated customer service team that can field your request and repair the part as soon as possible, ensuring your system will be back up and running without excessive time offline.

8. Can I add more solar panels later?

If you purchase an electric vehicle or grow your family, your electricity consumption will grow. If you anticipate you may want to expand your solar energy system in the future, talk to your installer about this possibility and what an upgrade may look like.

Depending on system setup and available space, it may be a better idea to oversize your solar system initially rather than add panels later. Or, your installer may make expanding easier by designing a microinverter-based solar system.

9. How long is the installation process?

A company that sets an installation timeline (and has the past projects to prove it) is more likely to deliver a good end result. When talking to your solar installer, ask them about the anticipated installation schedule.

Although they may not be able to tell you a precise interconnection date during your initial conversation, reputable companies should be able to provide a breakdown of your solar installation timeline, including permitting, equipment delivery, and construction.

10. Do you have a customer referral program?

If your installer has a referral program, it’s a strong sign they are used to delivering good customer experiences. As the best advocates for any company are its customers, many solar companies will compensate those who refer new business in bill credits or cash.

11. Can you explain the total cost of a system?

If a solar contractor gives you a price and doesn’t explain how they arrived at that number, it’s a red flag you may not be getting the best deal possible. Although the average cost of solar panels varies across the country, the total price of any solar energy system can be broken down into hard and soft costs, including expenses associated with hardware, permitting, labor, and business overhead.

12. Should I install a string inverter or microinverters?

Inverters turn the electricity your solar panels generate into electricity you can use at home. String inverters and micro-inverters are the two main options. As every home solar project is different, choosing the right technology can maximize your system performance and return on investment.

13. When will my system pay for itself?

If you purchase or finance your solar energy system with a reputable solar installer, they should be able to forecast an approximate break-even point at which your system will have paid for itself in savings.

In general, solar panel payback periods average somewhere between 7-10 years, depending on your location, the size of your system, and many other factors. A solar installer should be able to break down the expected performance of your system as it relates to the price of electricity in your area over time.

14. How do I track my solar panel performance?

Today, most solar panels are installed with smart components that report system performance directly to a digital landing page. The Palmetto App, for example, allows you to track your solar panel performance alongside your electricity consumption (with a supported meter).

15. What happens when my system reaches the end of its lifespan?

Even though it may be 20-30 years or more into the future, asking your installer about the end of your system's lifespan can help you avoid unwanted surprises later on.

Solar companies that plan to be around for decades are sure to have an answer for you when you ask about the decommissioning process. Critically, the end of your lease contract may give you options, like renewing your lease at a new rate, or buying out the system at the market value.

16. How long have you been in business?

In recent years, some solar companies have gone out of business. Working with an established, experienced solar company could help you avoid picking a company that’s going to go out of business.

A company able to answer all your questions in a helpful way without putting pressure on you is a sign of a partner you’ll be able to work with and depend on for a long time.

17. What should I do before I go solar?

Solar can supply you with the electricity you need to run your house, but reducing the amount of electricity you need can lead to savings, too. Getting an energy audit, upgrading your insulation, or electrifying your HVAC system or water heater may open the door to greater savings.

Your solar installer should be definitive about the state of your roof before installing solar panels. Your roof should be healthy at the time of installation, and replacing your roof and installing solar at the same time can save you time and money.

18. What other products do you sell? (Generators, EV chargers, home security, etc.)

Going solar can be a great time to also electrify your home with a heat pump or other efficient, electric appliances, install an EV charger, add battery storage, or replace your roof. Combining projects could save you time and money, especially if you use the same company, and let you stretch your solar electricity farther.

19. What makes your company different from others?

When weighing your solar options, you should feel free to open up the discussion and allow installers to explain exactly why they deserve the job. A professional solar expert should want to give you all the info you need rather than stick to a sales pitch and make you feel forced into a decision. 

20. Can I take my time and think about it?

In a high-pressure sales scenario, you may start to feel a solar installation company is pushing you to sign a contract right there, right now. If you feel rushed, asking for some time to make your decision will quickly show whether or not the company is acting in your best interest or is simply out to get your money.

Occasionally impending policy changes mean you need to rush, but even with those caveats, a reputable company should be happy to do follow-up calls and help you feel confident in your choice. 

Finding the Best Solar Installer

The right solar company should answer all your questions and concerns today and seem like a partner you’ll want to work with for 25 years or longer. Before, during, and after installation, is the solar installer listening to you and your needs? Or pressuring you into a specific plan, design, product, or deadline?

Your new home solar power system should deliver savings and reliable, clean, and renewable energy. It should be easy to understand and operate without extra work or stress.

Interested in seeing what it's like going solar with Palmetto? Or still have questions about solar in general? Get started today by using our solar savings calculator or contacting a Palmetto solar expert.

Frequently Asked Questions

How do you prepare for a solar installation?

Before you go solar, get to know your energy usage and current utility bills. You can check your property’s suitability for solar, including your roof’s health and shading, and confirm that tax credits, net metering, and other incentives apply to you.

How do you find a good solar installer?

It’s ok to interview and ask many, and even tough, questions of a solar installer before committing to a major project, a substantial amount of money, and years of working together. You are looking for a person or company that’s knowledgeable, experienced, professional, and helpful. 

Can solar panels really save you money?

Millions of homes in the US are saving money with home solar panels. While solar panels aren’t a fit for every home, they can lower energy bills and generate long-term savings. A reputable solar company will be able to explain the savings potential of solar at your home, including when it’s too small to be worth it.

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