Solar buying guide
Is Solar a Good Deal for Your Home?
Solar can be a smart investment.
Whether a particular offer is a good deal depends on your home, the full cost and the assumptions behind the savings estimate. Start with these checks before you sign.
Compare the full cost
Ask for the cash price even if you intend to finance. Then compare it with the loan amount, APR, term and total payments. A low advertised rate does not explain the whole cost: some solar loans include financing-related markups. Ask whether payments change if you do not make an expected early lump-sum payment. [1]
For a lease, you pay to use a system owned by someone else. With a power purchase agreement, or PPA, you buy the electricity it produces. Check price increases, end-of-term options and what happens if you sell your home. [2]
Check how much electricity the system may produce
A larger panel count is not enough to judge a proposal. Ask for estimated annual production in kilowatt-hours and the roof, shade and equipment assumptions behind it. A production estimate is not a guarantee. Your roof’s condition and remaining life also matter. [3]
Read the utility assumptions
Find out how your utility treats electricity sent back to the grid and which charges remain. Your savings depend on your rate plan and the credit rules that apply to your system. Do not assume every generated kilowatt-hour is worth the full retail rate. [3]
Ask the installer to show how the projected savings change if future utility-price increases are lower than assumed. Future rates are uncertain. [2]
Verify incentives before counting them
Do not treat an incentive in a proposal as money you are certain to receive. Check current rules, timing and eligibility with the official program administrator, and discuss tax questions with a qualified tax professional. Older solar articles can contain outdated information. [4]
Questions worth getting answered
- What is included in the price, and what work could cost extra?
- Who handles equipment, workmanship and roof-related problems?
- What costs or obligations remain if I move or need roof work?
A fair comparison uses the same scope and clearly states what is known, estimated or still missing. If the offer only makes sense under optimistic assumptions, ask for a more cautious comparison before deciding.
Want help with your actual offer?
Solar Advocates provides a nationwide independent proposal review for $199, including a one-page assessment and a 30-minute phone Q&A. Bring the offer you have and the questions you want answered.
See the $199 Solar Quote Review