Shopping for solar panels can be overwhelming, especially when you’re trying to compare quotes from different solar panel companies. Solar panels are a significant investment, costing an average of $23,885 before tax credits, and they will be a long-term addition to your home. To make the process of comparing solar panel quotes easier, follow these seven steps:
1. Understand Your Electricity Needs:
Solar installers may base their quotes on your average electricity usage, but it’s essential to consider that your electricity needs can vary monthly. Review your electric bill history to get a better understanding of your consumption.
2. Review System Sizes and Designs:
Different companies may propose different system sizes and numbers of solar panels for your home. Ensure that the estimated electricity production from the system meets your monthly needs. Ask about the sizing assumptions in the quotes.
3. Find Each Quote’s Cost Per Watt:
Instead of comparing total costs, focus on the cost per watt in each quote. This allows for a more direct comparison. Calculate the cost per watt by dividing the pre-incentives cash price by the proposed system size.
4. Look at the Fine Print on Financing Options:
Consider whether to buy the system outright, lease it, or opt for a power purchase agreement (PPA). Compare the terms of loans, leases, and PPAs, including interest rates, monthly payments, and repayment terms.
5. Compare Panel Efficiency Scores:
Different solar panels have varying levels of efficiency. More efficient panels take up less roof space but may be more expensive. Consider your roof space and energy needs when comparing panel efficiency.
6. Check the Type of Inverter Quoted:
Inverters are crucial for converting solar energy into usable power. Solar companies offer different types of inverters, each with its own advantages. Consider string inverters, microinverters, power optimizers, or hybrid inverters based on your needs.
7. Compare Warranties:
Look at the warranties offered by each company. Check product warranties, power warranties or guarantees, and workmanship warranties to ensure that your system is protected in the long run.
These steps will help you make an informed decision when comparing solar panel quotes. Remember that the lowest price may not always be the best choice; consider all factors, including financing terms, equipment quality, and warranties, before making your decision.