Most consumers don’t have experience shopping for solar. It can be difficult for them to detect shady language in contracts and they may miss steps in the purchasing process. Not to mention there are so many solar installers to choose from. How do residential solar consumers know which is the best pick for them?

Gigaom’s Ucilia Wang has put together a cheat sheet for just this. Here’s a summary of the article’s tips:



1. The initial query. Instead of just Google searching for installers, try contacting your local utility, or the city or state agency that oversees these utilities. They usually have a list of solar-certified installers. California, New York and Nevada actually have state-wide databases. (KZ sidenote: There are also new online databases coming out to connect solar installers and consumers. For instance, try EnergySage)

2. Learn about the incentives in your region. Incentives are key for you to affording solar. Wang recommends DSIREUSA.org to search for solar incentives by state (and so do we at SPW, we work closely with them while compiling our Clean Energy Opportunity map, and our Renewable Energy Handbook). You also could find out about rebates or tax breaks from your local utility or installers, but it’s a good idea to find an alternative source just for verification. The DOE-backed DSIRE database also links to each state’s agency that administers the subsidies, from which you can find contacts to ask about certified installers.

3. How to pay for it. An average-size system of solar panels, between 3 and 5 KW, costs $20,000-$25,000 in California, according to the current pricing posted by the state’s solar program website. The pricing is different by region, so Wang recommends comparison shopping.

Other options include leases or loans. In lease models, the company provides financing and owns the system and you pay a monthly fee for solar electricity. A lease typically runs 15-20 years. Check local banks for loans. Some, such as Admirals Bank, recently launched a division that provides solar loans nationwide.

4. Lease vs. power purchase agreement. In a lease, you would usually pay a fixed amount each month regardless of how much electricity the solar panels produce (though that monthly fee may go up at some point during the lifetime of the contract). In a power purchase agreement (PPA), you agree to an electric rate and pay for the amount of electricity produced. So your payment will likely vary from month to month, and the electricity rate generally will go up over time. Sometimes installers can provide only one or the other because of local regulations governing electricity sales.

5. Gear research. There is no shortage of solar panel makers, which have more or less standardized the designs and warranties of the equipment. Wang says the key is to ask your installers about how long a manufacturer has been in business, any complaints from other consumers, and the repair and return policy. It’s no different than shopping for electronic equipment or appliances.

6. The promise. As with any financing contract, you want to read it carefully and make sure you understand what you’ve been promised. Many installers promote the idea that if you go solar, you will end up paying less for electricity than you would otherwise. That’s an attractive proposition, especially if you have a high energy bill. But understand that those savings may not happen right away but over time.

No one can predict energy prices many years from now. Those prices depend heavily on the types of fuels used, changing regulations that might add to the cost of generation electricity, and market demand. If your utility can’t promise what your electricity rate will be in 10 years, how can anyone else promise that you will always pay a lower rate by going solar?

7. Keeping the system running. If you own the solar panels, you are responsible for their upkeep. The equipment usually doesn’t require a lot of cleaning, though Wang says you may not be in such luck if you live in a dusty area or your roof is a magnet for birds or squirrels.

The solar inverter, therefore, can tell you if the power production dips lower than usual. So it’s important to regularly check on the inverter’s reading , which you can usually do on your computer or smartphone.

In a lease or power purchase agreement, the company that provides the financing is responsible for the equipment’s upkeep. The financing company may not be the installer that set up the solar panels on your roof, and it may end up hiring someone else to do any maintenance and repair work. You should understand who is in charge of servicing the equipment.

Read the full article here

Also check out Solar Power World’s Top 100 Contractors list here.