All Energy Solar

How to Avoid Solar Sticker Shock

There are plenty of stories online of people being overwhelmed by off-the-charts solar estimates. Some are from legitimate companies, while others are from fly-by-night or out-of-state companies that don’t even do their own installation. How can you prepare yourself for this and what should you be looking for when your estimate arrives? 

When preparing for solar estimates, it’s important to know that initial quotes can vary widely, and some may seem overwhelming (or underwhelming). This is especially true when receiving offers from both legitimate and less reputable companies. To ensure you get a fair deal and understand the true cost of going solar for your property, here are several key factors to keep in mind when your solar quotes start to roll in.

Total cost is just one factor

While the price of solar is a key factor, it’s crucial to look beyond the numbers. Comparing estimates from different companies isn’t always straightforward—much like comparing apples to oranges. Lower costs may come with trade-offs in quality, experience, or service. Focus on working with reputable, established installers who have good reviews and offer strong warranties. Verify that the company handles its own installations rather than outsourcing. A slightly higher cost may be justified if it ensures better materials and support, a stronger attention to the details that matter, and long-term peace of mind.

Understand long-term savings and ROI

While the initial costs can feel steep, the long-term savings make solar a valuable investment. By producing your own energy, you’ll lock in your energy prices at today’s rate and reduce or eliminate monthly electricity bills. Over time, this can result in substantial savings. Be sure to calculate how long it will take to recoup your initial investment based on your energy consumption and projected savings. Solar panels typically last 25-30 years (and very likely beyond that), so consider the total value you’ll gain over that lifespan. Check if your quote includes warranties for both equipment and installation, ensuring that you’re covered for repairs and maintenance.

Don’t forget about tax incentives, rebates, and financing options

One of the biggest ways to offset the upfront cost is by taking advantage of federal, state, and local incentives. The federal solar Investment Tax Credit (ITC), for example, offers up to 30% off the cost of your system. Some states or municipalities also offer rebates or renewable energy certificates (RECs), which pay you for the energy your system produces. 

In addition, solar loans and leases allow you to spread out the cost over several years, making the investment more manageable. A reputable and knowledgeable installer will be very familiar with all of the incentives and financing options available to you and make sure they are factored into your total cost and that they are best for your financial situation.

Vet companies thoroughly and get multiple quotes

Before choosing an installer, research the company’s reputation, especially if it’s unfamiliar or out-of-state. Focus on established, local companies with solid reviews that handle their own installations. Third-party contractors may offer lower costs but often lack accountability or service quality.

Don’t settle for the first estimate. Getting multiple quotes helps you gauge the market and avoid inflated prices. Be cautious of offers that seem too low, as they may use inferior materials and equipment or less experienced installers, leading to potential issues down the line.

By focusing on these aspects, homeowners can mitigate the shock of higher-than-expected quotes and ensure they are prepared to make a well-informed decision about their solar investment.

Download our eBook, Comparing Solar Estimates, to discover more about how to properly vet solar installers and choose the right partner for your energy needs. 

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