Why compare solar quotes? The benefits explained

If you're like most people, you've probably spent somewhere between a few weeks and a few months researching a major purchase. Why should solar be different? Solar is a big investment, and choosing the right installer and the right equipment can feel overwhelming. 

With that in mind, most solar shoppers in the U.S. compare two to five solar quotes before making a decision. 

We'll explain the four key factors you should consider when deciding which quote is best for you.

Comparing multiple solar quotes can save you money in two ways: competition and transparency. 

When you receive multiple quotes, installers compete for your business. You can use lower quotes as leverage to drive down prices and find the right solar panel system at the right price. According to one of the largest U.S. solar datasets from The Lawrence Berkeley National Laboratory (LBNL), the median price of solar installations in 2023 was $4.20/W. However, that price is over $1/W higher than the average quoted price on the EnergySage Marketplace. 

Transparency can be trickier to put a price tag on. The solar market has historically been known for being opaque. However, knowing what equipment will be installed on your roof (and the quality of that equipment) helps ensure you get the best solution.

When reviewing solar quotes, you should compare four key components: system design, equipment quality, available financing options, and installer reputation.

1. System design

You should look at two key factors of your solar panel system's design: How the panels are laid out on your roof or property and the proposed system size, as measured in kilowatts (kW).   

Many homeowners aim to cover as much of their roof as possible with solar panels to maximize savings. But, different installers will take different approaches to the design and configuration of your solar panels. It's important to compare quotes and, if you have questions, ask installers why they chose a specific design. Savings matter, but so do aesthetics; remember, you'll be looking at them for the next 25+ years. 

One specific thing to note is the different production estimates for your solar panels. Because of variations in weather, it's impossible to predict the exact amount of electricity production from a solar panel system over a given year. However, installers can use different tools to estimate the amount of electricity your solar panels will produce on average, such as the publicly available PV Watts calculator, and powerful online modeling tools from Aurora and Helioscope.

It's not uncommon—or wrong—to see quotes from different installers include different system sizes (i.e., the number of panels). Still, if one installer offers a much smaller or larger system than the others, it's worth asking why. 

Just try not to get too hung up on slight variations in system size in your initial quote comparisons: Installers may be using slightly different assumptions for your energy usage or the solar potential of your roof. When you're further along in the process and closer to making a decision, installers can come out to your property for a formal evaluation so that they can refine their design and production estimates.

2. Equipment quality

Not all solar equipment is equal: There are dozens of different brands and models of solar equipment (solar panels, inverters, batteries, etc.), offering varying efficiencies, aesthetics, warranties, and more. Different installers will provide different options, and it can be challenging to sift through their pros and cons. However, doing so will help you determine if the quality of your quoted solar equipment is worth the price.

These days, almost all solar equipment is durable and built to last, so "lower quality" doesn't necessarily mean "low quality." Similar to how a Lexus and a Toyota can safely and reliably get you from point A to B, any current equipment included in your quote should produce solar electricity for over 25 years. But if you want the highest efficiency panels and the best industry warranty, you'll pay more, just as you would for a premium car.

Depending on your specific situation, it may or may not make sense to pay extra for higher-rated equipment. If you have more than enough space to install the amount of solar panels to meet your electricity needs, you might not need premium equipment to eke out every possible kilowatt-hour of production.

EnergySage can help you decide which equipment is best for you. We've developed a solar equipment rating system so you can compare the performance and quality of different pieces of solar equipment head-to-head.

If you're excited about diving into the weeds and comparing the technical specifications of different equipment, check out our Buyer's Guides: 

You can search, sort, and filter equipment options and select the ones you want to compare, putting all the details from equipment spec sheets in one scannable location.

3. Available financing options

If you experienced a bit of sticker shock when you first looked at solar project costs, you're not alone. Fortunately, there are plenty of $0 down financing options for those who want to go solar with no upfront cost. The bottom line when it comes to paying for solar is: If you can afford your monthly electricity bill, you can afford to go solar.

But there are two key questions you need to ask yourself when deciding on a solar financing option: Do you want to own your system? And how much do you want to pay upfront?

Owning your solar panel system makes sense for people who can take advantage of solar incentives and rebates (like the 30% federal investment tax credit, or ITC) as well as those who want to receive the full benefits of what solar can offer, such as increased home value. 

While solar is a significant investment, you don't have to pay for it all at once. Both solar loans and leases/PPAs allow you to go solar for little or no money down, offering monthly payment arrangements. 

Here's how different financing options compare: 

• Cash purchase: If you want to own your system, maximize your savings, and can afford the upfront expense, a cash purchase is the best option.

• Solar loan: If you want to own your system, but would prefer not to pay for it all upfront, a solar loan allows you to go solar for no upfront cost, with monthly payments often less than your current electric bills.

• Solar lease/PPA: If you can't take advantage of solar incentives and prefer to pay monthly for your solar panel system, it's worth considering a power purchase agreement (PPA). We don't typically recommend leasing your solar panels because they often result in the lowest savings. 

If your solar quotes include financing options, compare the terms, monthly payments, and interest payments across each. Solar leases typically last 25 years, whereas a solar loan may have a 12 or 15-year term. Once you've paid the loan off, you'll receive the full benefits of free solar electricity for the remainder of the system's lifetime. 

Another important factor to consider is the financier. You'll have a relationship with the lender for multiple years, so try to work with a reputable lender known for good customer service. 

Not sure which financing option is right for you? Don't worry. EnergySage makes it easy to compare the savings and costs of different payment methods through our Solar Calculator and in quotes.

4. Installer reputation

The most important thing to consider is the company that will actually install your system. You'll want a reputable solar company with experience in your area and all the appropriate licensing and industry certifications. You'll also want someone you can count on to pick up the phone if anything goes wrong with your system. 

Some installers will include review ratings or customer testimonials directly in their proposals, which can be a helpful indicator of their overall reputation. If this information isn't in the quote, searching for reviews online will be your best bet. Remember that many companies also offer references if you want to learn more about their experience. If you're having trouble finding reviews for a company you're considering or they can't provide testimonials, you may want to look elsewhere.

EnergySage Marketplace installers, for example, have been screened and vetted for reputation, experience, certifications, licensing, and insurance.

When comparing solar quotes, we recommend not starting with the cost. While cost should be a critical factor in your decision, you should first understand the differences between system designs, equipment quality, financing options, and installer reputation.

The cost of the project is the bare minimum of what any solar quote includes, but it's pretty standard for installers also to include savings projections and any incentives you're eligible for in cost summaries. When comparing costs between various quotes, look at the price per watt. Like evaluating a home on a dollar-per-square-foot basis, price per watt ($/W) is a helpful metric for comparing pricing across solar panel systems of different sizes.

On EnergySage, we automatically calculate and display the $/W of each quote. However, if you're comparing offline proposals, you can easily calculate this yourself by taking total costs (not including incentives) and dividing it by the system size in watts:

$/W = gross cost / system size (W)

EnergySage is the nation's online solar marketplace. We take the hard work out of finding and comparing solar quotes by gathering custom quotes from local installers and putting them in an easy-to-compare, side-by-side format. The best part? EnergySage is entirely free for you to use. Over 10 million people visit EnergySage annually to learn about, shop for and invest in solar.