How to Compare Solar Quotes and Choose the Right One for You

There are a lot of important steps along the journey to getting solar panels installed. You should learn how solar panels work, how long they last, how they can save money, and whether you qualify for solar incentives.

After you’ve done your homework and decided that solar panels are right for you, it’s time to get solar quotes from multiple companies and compare them to choose the best. 

Different companies will include different information in the quotes, and it can become confusing. That’s why we’ve broken down everything you need to know about comparing them. Comparing solar quotes isn’t as simple as finding the company that offers the lowest price or the best equipment. 

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Important parts of a solar quote

If you've gotten solar quotes, it's totally natural to be overwhelmed by what you're looking at.

Here are the important things to look at when you consider each quote:

• Equipment (brand names, model numbers, and warranty information for panels, inverters, and batteries)

• System details (system size, power output, estimated energy production, and battery storage capacity)

• Cost and financing (price per watt, incentives, loan amounts, and APR)

• Energy bill savings estimates

The following image outlines what some of the details of a solar quote might look like. Let’s break down what each part of a solar quote means, and what you need to know when comparing them.

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Equipment 

The main components of a rooftop solar installation are the solar panels, inverters, and batteries. A solar quote should, at minimum, include the brand name and model number for each component and information about the warranty coverage offered for these components.

Here’s some more information on what to look for:

Solar panels

There are some important differences between solar panel brands in materials and build quality that can affect the system's performance. You can look up important solar panel specifications online when you have the model numbers. 

The key things to understand are these:

• Solar cell type: monocrystalline TOPCon solar cells are the most popular technology used in the industry today, but you may see some other cell types. In general, any type of monocrystalline panel is best for home solar installations. 

• Efficiency: The average efficiency of top solar panel brands is now over 22%. You should only care about high-efficiency panels if you have space constraints on your roof. The higher the efficiency, the more power output in the same physical area.

• Temperature coefficient: The power output of a solar panel decreases as the temperature increases. Yes, solar panels work best in the cold. The best brands have low temperature coefficients, while inexpensive ones suffer from slightly increased power loss when it’s hot. 

Warranties

Warranties are a big deal when it comes to rooftop solar. These panels will be on your roof for 25 years or more, so you ought to be sure they’ll keep working or that you’ll be covered if they fail. Thankfully, the industry failure rate is 5 in 10,000, so it's a rare occurrence. 

Reputable solar panel manufacturers typically offer two solar panel warranties for their modules:

• A product warranty covers defects in materials and workmanship. You’ll want panels with at least a 12-year product warranty, but some of the best brands offer 25 years of protection. 

• A production warranty outlines how a panel will degrade over time. Most solar panels have a degradation rate of around 0.5% per year, meaning that after 25 years, the panels will still operate at 87.5% of their output. However, top brands degrade slower at a rate of around 0.25% per year. 

Separately, see if the installer offers its own warranty that covers the installation work on your property. Ideally, these will cover repairs and damages incurred from installer workmanship and penetration. 

As a general rule of thumb, the longer the warranty term, the better when comparing solar panel warranties. 

Inverters and microinverters

A solar inverter is one of the most critical parts of a solar system. It converts DC solar power to AC for use in your home.

There are two main types of solar inverters on the market: string inverters, which accept the output of all the solar panels in an array and are best for simple installations, and microinverters, which take the output of only one or two panels and are best for more complicated solar designs.

About half of all residential installers install both types, and the quote they give you will include the option they feel is best suited for your home.

Batteries

Solar batteries are an optional addition to a solar installation. According to our solar industry survey, 35% of all new solar installations include energy storage. 

Batteries are best for homeowners who want access to backup power during a grid outage, those on a time-of-use rate plan, or those who don’t have access to net metering. 

Like solar panels, picking a reputable brand is one of the most important parts of choosing a solar battery. The make and model of a battery should be included in the quote, so look for customer reviews of the brand to find the best solar battery for you. Of course, you’ll also want one that suits your storage needs.

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System details

Once information about the equipment is out of the way, a quote should include how the system is expected to work over time. 

System size

System size refers to the kilowatts (kW) of direct current (DC) power the solar installation can generate under full sun. The average size of a home solar system in the United States is about 6 kW. However, differences between homes, like the amount of electricity a home uses and the size and direction of the roof, can significantly impact how many solar panels you need. 

When comparing solar quotes, the sizes should be pretty similar. If one is much larger or smaller than what other companies have quoted you, ask about it! Your installer should be able to tell you exactly why they chose the installation size they quoted, either based on your historical energy usage or your available roof space (if it limits the size).

Energy production

Solar energy production estimates are based on several factors, including:

• The system size in kW

• Your latitude and annual weather conditions

• The direction your roof faces (also called “azimuth”) 

• The tilt angle of your roof

• Any shade that falls on your roof from trees, other houses, etc.

Every installer who gives you a quote should be able to give you an accurate estimate of energy production, as they use advanced modeling software that can assess your roof. You can check their math using PVwatts, a government-developed tool that gives accurate solar energy production estimates. 

If one installer’s production estimates disagree with the others by a large margin (more than around 5%), they should have a very good explanation as to why. There are some valid reasons for production estimates to be slightly higher than others, even considering the same system size. 

Differences between solar panel brands can account for some variations, and some quotes may assume nearby trees have been trimmed or removed. Keep in mind that tree abatement costs may greatly exceed the value of the potential gains in energy production, so carefully weigh the costs and benefits.

Battery details 

If you decide to get a quote for a solar battery, a few key details should be included. They are:

• Total usable energy capacity

• Maximum continuous battery power output

• Cost for the battery installation

The right usable energy capacity and power output for you depends on your needs. If you want to run lots of power-hungry appliances during extended power outages, you’ll want a system with a high capacity and power output. If you are just looking to run a few essential appliances, you don’t need much more than 15 kWh of storage.

The easiest way to compare batteries is to look at the cost per kWh of storage. Then, you can get a standard number to compare and see if the batteries' features are worth the higher or lower prices you’re quoted. 

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Costs and financing

When comparing multiple solar quotes, installers will likely quote different system sizes with different equipment. It can be difficult to compare quotes on the basis of those total costs.

When professionals compare solar quotes, we look at a metric called cost per watt. It is simply the total system cost in dollars divided by the system’s peak-rated output size in watts DC. This allows you to compare prices quoted for systems of different sizes easily. 

The average cost of solar panels in the United States is about $3.00 per watt. Many factors can affect this cost, such as your location and the specific features of your home and roof.  All other things being equal, a lower cost-per-watt system should provide better value over time.

While cost is important, and you shouldn’t choose an overpriced system, you also don’t necessarily want to go with the absolute cheapest option either. Do you want to buy the cheapest car or the best one for you at a good price? 

It’s important to weigh the costs against the quality of the equipment, warranties, and customer service you receive. Don’t choose the cheapest company; choose the one that’s best for you at a good price.

Incentives

After cost, the next thing to look at is incentives. Every homeowner in the country who installs solar panels is offered the federal solar tax credit, which can earn you up to 30% of the cost to install solar panels back as a tax credit the year after your installation is completed.

States, cities, and utility companies also offer solar incentives, and luckily, installers are usually pretty good at ensuring you get every penny you’re eligible for, which tends to make their job of selling solar panels easier.

Finally, some incentives are paid at the time of installation or reduce the upfront cost of going solar, while others, like SRECs, are paid over time. Just make sure you fully understand how every incentive listed on the quote works for you before signing a contract.

Learn more: Complete guide to solar incentives

Financing

If you’re not ready to hand over almost twenty thousand dollars, there are solar financing options available. Here are the basics:

• You can pay for solar panels with cash or a loan or let the installation company lease the panels to you instead.

• Many financing companies now offer solar loans that are designed to help people go solar with no money down and pay off the cost using the savings generated by the solar installation.

• It’s important to be very careful when considering a solar loan because some of them come with hidden fees and requirements to pay a portion of the loan equal to the value of the tax credit within the first year or two

Solar panel financing is such an important topic we could write a whole article about it. Actually, we did. Here’s our complete guide to solar panel financing.

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Energy bill savings estimates

This is the most complicated part of comparing solar quotes: deciding whether the installer’s estimates and assumptions have resulted in an accurate estimate of the savings the solar system will generate over time. 

Installers use software to estimate energy bill savings, ongoing incentives, and loan payments to provide you with cumulative solar savings over the system’s lifetime.  

An installer must be able to explain all the inputs that go into calculating the savings estimates and should be well-versed in how your utility company reimburses solar owners for excess solar energy. That could be net metering or some other solar buyback plan.

Projected electricity rate increases

This little number, used by the installer to estimate your potential lifetime savings with solar panels, could be a BIG deal if they get it wrong. Between 1960 and 2022, the average rate of increase in electricity prices was about 2.9%. 

If your installer estimates your potential savings based on a number much higher than 3%, they better have a rock-solid explanation for why they are. An example of a reason that would work is a fully approved multi-year rate increase request from your state’s Public Utilities Commission. 

Anything less than 100% certainty that electricity rates will rise greater than historical levels is malpractice.

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Tips for getting the best solar quotes

Now, you need to get some quotes to compare! We've outlined five tips for getting the best solar quotes so you can find the right company to help you go solar.

• Read customer reviews of the company: A company’s consumer reviews give you an idea of what their customer service is like. Read through the reviews and see if people have had issues, and if so, what kind they are. Companies with overwhelmingly negative reviews probably aren’t worth getting a quote from! 

• Understand your home’s solar potential: Going in blind can lead to confusion, and sometimes sneaky solar sales tactics can get you in hot water. Knowing a rough estimate of the cost and how many panels you need will make you more prepared when speaking with companies! You can find this information easily through SolarReviews free solar calculator.

• Know the solar incentives and policies in your area: Again, knowledge is power! The more you know about what types of incentives, rebates, and net metering programs are in your area, the better you can understand what’s being described in your quote. 

• Ask for cash and financed quotes: Financing a solar project through a solar loan often means you have to pay a dealer fee, which can add anywhere from 20% to 50% to the cost of going solar! By getting a cash quote and a financed quote, you can see the difference in cost and potentially get a better financing option elsewhere. 

• Get quotes through SolarReviews: It is no secret that solar companies will hand out their best pricing when they know they are facing stiff competition. Installers know that if you have used our platform, you are an informed consumer who is shopping around, and the only way to win your business is by offering you a great deal. Plus, getting multiple quotes helps you get the best deal possible. 

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Bottom line: how to know when you’re ready to choose and what happens next

After you’ve done all the work you need to compare quotes, it’s time to choose. There will probably be one company that stands out as the best because of their honesty, commitment to service, choice of equipment, or price.

We strongly recommend local installers who have expert knowledge of the permitting and interconnection requirements of the local authorities and have experience working with your electric utility to get the system up and running quickly and successfully.

A great installer should make you feel like you’re getting all the important information to make a decision and be able to answer all your questions. 

Don’t feel bad if there isn’t a clear choice for you. Getting solar installed represents a multi-decade commitment. It’s important to get it right, and if the quotes you get now don’t work for you, you can always try again in the future.

At SolarReviews, we partner with trusted solar companies so you can get the best possible solar quotes. Let us connect you with local installers so you can worry less about picking the right quote and start saving on your electricity bill.