Everything You Need To Know To Find The Best Solar System Supplier

The solar industry was shaken up over the last year, and it might have you confused.

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The Inflation Reduction Act, providing a 30% tax credit for the cost of solar panel system installations, along with falling solar panel prices and rising electricity costs, makes the case for adding solar panels to your roof. Changes to net metering in California and elsewhere mean that the case for some people isn't as strong as it once was (though the argument for batteries might be stronger).

If you're trying to make sense of it all, start with our tips for calculating your savings, finding an installer, deciding if a battery is right for you and what ome improvements you might want to tackle before jumping to solar. Read on for all that and more.

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How solar panels work

Solar panels are made of photovoltaic cells, which convert sunlight into electricity. The sun emits solar radiation, which is absorbed by the photovoltaic cells. Electrons within the solar cell are energized, escape their bonds and form an electric current. That current, which starts as direct current, is switched to alternating by the solar system's inverter. From there, it's used up in the electronics in your home or sent back to the grid.

"It's not a magical technology, but it seems like it because you just stick something in sunlight and it makes electricity for you," said Joshua Pearce, a professor at Western University in Ontario and co-author of To Catch the Sun, a free e-book on DIY solar systems. "Even being a scientist who works on this stuff all the time, it's amazing that these things actually work."

The benefits of solar panels

Why would you want solar panels at home?

• Savings on energy: The most direct benefit is that you can gain the opportunity to power your own home outside of the electrical grid. That saves you money, and if you generate extra power, you might even be able to get credit on your bill from the electric utility via net metering. The average payback period for solar panels is six to 12 years, according to some sources.
• Abundant power source: According to the US Department of Energy, just 1 hour of noon summer sun meets the annual US electricity demand. Depending on your situation, turning it into electricity can save on your electricity bill.
• Help with your home value: If you plan to sell your home down the line, having home solar panels can be a major perk to buyers and can help increase your home's value.
• Key step toward going green: Since solar is a renewable resource, you can shrink your carbon footprint.
• Independence from grid failures: Some areas have electrical grids that are less than reliable. If you experience frequent power outages in your area, your own solar power and battery can keep the lights on.
• Provide power to your campsite: Some small solar panel arrays fit right onto RVs, or you can take them camping so you have electricity, no matter how remote the location.

Where to buy solar panels

Many businesses specialize in selling and installing solar panels for homes. Search online to locate solar panel suppliers and installers in your area. You can start with CNET's best list of solar panel companies. You can even shop for solar panels at major home goods stores like Home Depot. Stores like this can set you up with professional installation to help you get a residential solar panel setup.

Major installers often offer solar financing options, too, though you might be best served by shopping around for a loan, especially with high interest rates. Many solar installers also offer solar panel leases or power purchase agreements, which you can enter with no money down (though savings over the lifetime of your panels are typically lower). You can also apply for the federal solar tax credit, which will give you up to 30% of the cost of your solar back to you on your taxes, assuming you have that much tax liability.

Solar panel installation

Most residential solar arrays are installed by a professional. Installing solar panels yourself is technically possible, but you run the risk of voiding warranties. You should only attempt it if you have the necessary expertise. If you opt for a professional installation, be sure to shop around for the best deal. Compare the warranties installers offer along with price, customer service and how well their proposed plans meet your needs.

A reputable solar installer will advise you on the age of your roof before installation. Replacing your roof before installation may ultimately be the cheaper option, since removing the panels to replace the roof will be an additional expense.

Care and lifespan of solar panels

Many solar panels are warrantied to last 25 years, though their useful life is likely longer. On top of that, they're fairly maintenance-free, just requiring that you keep them free of obstructions like dirt, leaves and snow. More extensive repairs may be covered by warranty.

Solar panels become less efficient over time, though that downward trend is not necessarily a problem. A typical manufacturer's warranty will guarantee that your solar panels won't lose more than 2% efficiency in the first year and not more than 0.5% per year in the next 24 years. That means your panels are guaranteed to produce at 84% their original capacity after year 25. Some panels will set a higher benchmark ' like 92% ' after 25 years, but you'll still be getting plenty of electricity out of them two decades on.

Do you need a solar battery?

Installing a solar battery in your home will allow you to store excess energy produced by your panels. However, they are currently almost as expensive as a solar panel system (from $12,000 to $22,000), so while a battery is nice to have, it's not a necessity.

There are instances where a solar battery is worth the investment. Those who live off the grid will need a battery to use solar power. And if your area is prone to frequent blackouts or you have medical needs that require refrigerated medicine or machinery, a battery may be worth the cost.

If net metering has been eliminated or weakened where you live, a battery might make solar a better proposition. Since you won't be compensated as much for the energy you send to the grid, storing more of it to use later can save you more money, despite increasing the initial cost of the system.

How to pay for solar panels

There is a variety of options for paying for the installation of residential solar panels, aided in part by the 30% federal tax credit. Homeowners can pay out of pocket for the entire project, then receive money back from the government. There are also plenty of solar loan options that also allow you to claim the tax credit. Interest rates have shifted higher over the last year or so, which means you should shop around for the terms that best fit your needs. Other financing options include bank loans or a home equity loan, but given their higher interest rates, consider these financial tools carefully.

For those without the financial means to buy or finance a system, there are solar leases and power purchase agreements. A solar lease is similar to that of a vehicle, where you pay a set amount each month for a system that will be owned by the installer. Under a power purchase agreement, you pay a set rate for the energy that is generated by the solar panels (the rate may increase after a certain amount of time), rather than the system itself. The drawback of these mechanisms is that you won't own the solar panels yourself, and hence won't get any of the tax credits or have the ability to sell renewable energy certificates.

Jumpstart your solar journey by exploring home equity and HELOC rates from multiple lenders

How the solar tax credit works

The federal residential solar energy credit, which grants a 30% credit to homeowners who install panels on their home through . (If your entire project costs $30,000, you'll be granted a credit of $9,000). The credit applies to homeowners who purchase a system with cash or through financing. According to the Office of Energy Efficiency & Renewable Energy, you should seek professional tax advice to determine your eligibility, then fill out IRS Form following the instructions.

Improve your home efficiency first

Before you start the process of going solar, you should try to improve your home's energy usage in other ways.

"Solar is an exciting type of infrastructure, but if the ultimate goal is to save money on your electricity bills, I encourage homeowners to think about efficiency upgrades first," said Gilbert Michaud, assistant professor at Loyola University Chicago's School of Environmental Sustainability. "Those could include insulation, upgrading and replacing windows or other things that are maybe less fun, but can help you realize savings immediately and lower costs. Once you've done those efficiency retrofits or upgrades, maybe solar is a good idea."

These upgrades will give you a clearer idea of how many solar panels you'd need to power your home, too. That means you'll likely need less panels ' reducing the cost of the installation ' than if you didn't do efficiency upgrades first. Here's some suggestions.

• Check your insulation: Inside your walls is a layer of material meant to keep hot or cold air where it is. In the winter, this means the warm air from your heating system stays inside your house, and vice versa for cool air in the summer. If there are leaks in your insulation, hot or cold air is escaping or getting in, which makes your HVAC system work harder and costs you more money.
• Upgrade or replace windows: Much like insulation, your windows play a large role in keeping your home heated or cooled. If your windows are out of date, air could be coming in or out, which is not great for your energy bills.
• Replace old household items with efficient ones: If you have older appliances, thermostats or light bulbs, replace them with newer, more efficient ones to realize energy savings.

Solar panel FAQs

We get it ' installing home solar panels is a huge investment. Finding the best solar installer for such a big purchase can be stressful.

SolarReviews knows a thing or two about what to look for in a solar company. Our mission has always been to help homeowners make the most informed decision possible when going solar and connect them with reliable installers in their area.

Here are some of the top things you need to consider when choosing a solar panel installation company.

Get quotes from trusted solar companies near you

When choosing a solar energy company, think small

Sometimes, bigger is not always better. It's easy to gravitate toward large name-brand companies like Tesla, Sunrun, ADT Solar, or SunPower. But it's small, local solar energy installers that are often the best choice.

Local solar companies generally provide more personalized and attentive customer service. But don't just take our word for it - you can see it in the customer reviews on our site. Large national companies tend to have much lower review scores than your neighborhood solar installer.

But, we understand that choosing a large company does provide a certain level of protection. To help you feel more comfortable choosing a smaller company, we have a few key things to look for when researching local companies.

What to look for in a solar company

Here are four key things to keep in mind when looking for a solar panel company:

• Locally owned

• Consistent positive consumer reviews

• In-house installation crew

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• High-quality equipment

Locally owned

Locally owned companies have a good understanding of the solar industry in your area and can provide you with localized personal service that large national companies can't.

These companies will often be able to resolve any services or repairs that you need quickly. They understand that word of mouth is extremely important, so they want you to have the best service possible so you refer your friends and neighbors.

We suggest looking for companies that have been in business for at least five years, as it shows they have some longevity as a business, and even if they do not have a 'name brand' to back them up, they have years of experience.

Consistent, positive reviews

In the era of researching every purchase online, consumer reviews play an important part in making a decision about what solar company you choose.

Aside from traditional review sites like Google, the Better Business Bureau, and Yelp, SolarReviews is a great one-stop site to see solar installation company reviews. We host thousands of consumer reviews for solar panel installers across the U.S. and perform manual and automated checks to ensure you see reviews from real customers ' not fake reviews made by companies or their competitors.

If you want more insight than what online reviews can provide, a potential installer can provide former customers as references. If they won't, that might be a sign not to go with them.

Employ their own crew

For any job where you are relying on contractors, working with a company that employs its own crew should be your first pick.

Companies using subcontractors have less leverage, making it harder to hold crews accountable than if the team was made of in-house employees. It also leads to variability in the quality of their installations. A company may have good reviews for installations completed by one crew but bad reviews for others.

You should also look for companies that have NABCEP-certified installers. NABCEP is a respected nonprofit organization that provides professional certifications to solar professionals. When you see there's a NABCEP professional on staff, you know the company takes the job seriously.

Use high-quality equipment 

Long-lasting solar systems use high-quality solar products. You'll want every part of the solar system, from the panels to the inverters, to be reliable. As a general rule of thumb, a trustworthy installer will use good equipment. So, if a company is already checking all of your boxes, it'll likely check this one off too. 

Solar panels

When you get a solar quote, do a little research on the panels the installer is using. Make sure the panels carried by the installer have at least a 25-year performance warranty, a 10-year product and workmanship warranty, and that the brand has a good reputation. 

You can use our annual top 10 solar panel brands list as a starting point, which ranks manufacturers by things like cost, performance, and the financial health of the company. In , Qcells, Canadian Solar, and Maxeon/SunPower took the top three spots, but any panels on the list are great picks for your solar power system. 

Solar inverters

Inverters act as the brain of the solar panel system, converting the energy generated by the panels into electricity your home can use. It's also the most common part that needs to be replaced. So, you're going to want one from a good quality brand to make sure it operates for as long as possible. 

According to our Solar Industry Survey, the most popular inverter brands are Enphase and SolarEdge. So, if you're quoted either of these brands, you can rest assured that you're getting good equipment. There are some other brands, like Fronius and SMA, that have high-quality products as well. 

If you're getting a string inverter installed, make sure it comes with a minimum 10-year warranty. Microinverters and power optimizers, on the other hand, should come with 25-year warranties. 

Solar batteries

You don't need to get battery storage when you switch to solar, but if you're looking for a backup power option, you'll want it to be a good one. 

There are tons of battery options on the market. Most homeowners will likely want an all-in-one energy storage system that includes batteries, inverters, and system monitoring. Some of the most popular energy storage systems are the Enphase battery, the Tesla Powerwall, and the Generac PWRcell.

Keep in mind that solar batteries can add quite a bit onto the cost of going solar. The Tesla Powerwall costs about $15,500 fully installed, and it's one of the cheapest storage options!

When looking at battery brands, make sure they have at least a 10-year performance warranty that guarantees a minimum of 70% capacity at the end of the term.

Find a pre-vetted installer in your area

How can you choose between two companies?

You can only pick one company to install your solar panels. If you are between two companies that fit the bill, here are some things to think about.

Price

This one seems obvious, but it's not as simple as you might think. The lowest price is not always the best.  Going with the company that gave you the lowest solar installation cost might not be the best choice.

Solar companies that charge prices that are too low are likely cutting corners, whether it's the quality of their workmanship or equipment. Their practices likely aren't sustainable, and they might not be in business in the future when you need repairs or solar panel maintenance. 

You should look for cash prices that are somewhere in the range of  $3.00 per watt of solar installed. Anything lower than $2.60 per watt should be a red flag. But you don't want to pay too much either! Cash prices that reach over the $3.50 per watt mark are steep, and you can probably get a better deal elsewhere. 

Financing options

Solar is a significant upfront investment, but there are solar financing options available. The company you choose should help you find the best financing route for you. If you want to get a lease or a power purchase agreement, ask the companies if they offer this type of financing. 

Many solar installers offer solar loans to their customers, as they allow homeowners to get all the advantages of a cash-purchased solar system without needing to have all the money on hand. If you need a loan, make sure the company you choose has them available.

If they do, you can compare rates and fees between companies to get the best deal. You should ask each company for both a quote for a cash-priced system and a financed system, so you can see what additional fees are added on with financing. This also allows you to look into personal financing options, like HELOCs or home equity loans, so you can get the best deal possible.

Services offered

It's becoming increasingly common for solar companies to offer more than just solar installations. Some common services include battery installation, electric vehicle charger installations, home energy efficiency audits, and roof replacements.

If you want these additional services, pick the installer that provides them! Even if you don't want them now, future you will be glad you picked the installer that has these products available so you can easily add them to your home down the line.

What to avoid when picking a solar installer

There are tons of great solar companies out there that will help you on your renewable energy journey. But, the solar industry does have some bad actors to look out for.

Steer clear of companies that you feel are trying to close the deal too quickly or are over-promising on savings by saying you'll never pay your utility again. You should also be wary of companies that talk about 'free solar panels' when talking about leases and power purchase agreements or if their prices seem too good to be true.

Get quotes from reliable solar companies

The easiest way to get quotes from trusted solar energy companies is through SolarReviews. We can connect you with reliable solar installers in your area so you can start getting free quotes for a solar energy system without having to seek out the companies yourself. We also have a state-of-the-art solar panel calculator that you can use to double-check the quotes you're given.

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