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What To Look For When Choosing From The Best Solar Companies

By Solar Providers Near Me No Comments

 

Choosing the right solar installer can be tricky. Let’s say you are looking to remodel your home and have to decide between several contractors for the job.

You may not know a lot about construction but chances are you have a pretty good idea of what materials you want installed in your home and the cost associated with those materials.

You can probably also make a judgment about the quality of workmanship of the installer simply by looking at their previous projects. When it comes to the solar industry however, you may find yourself unfamiliar with the nuances of purchasing a photovoltaic system for your home.

This article will explore the 5 most important factors when choosing an installer so you can go solar with confidence.

Quality of the Solar Installer

With the emergence of any new industry, it is difficult to know what companies you can trust. This is absolutely true for an industry as young as residential solar. The first thing to look for when evaluating a solar installer is whether or not they exclusively install solar systems.

Many small construction companies have pivoted towards solar without taking the time to become experts themselves. These companies are more likely to sell you cheap equipment and perform poor installations. The second thing to look for is how long the company has been in business.

Although not always true, generally a company that has been in business for five years will be more experienced and have greater customer satisfaction than a company that has only been in business for one year.  Lastly, online reviews can be a powerful tool when vetting installation companies.

Quality of Solar Equipment

When you receive a quote from an installer how do you know that the equipment is of good quality? When evaluating the quality of a PV system you are really looking at two things: the modules and the inverter.

When an installer is choosing an inverter for your system they have the option between a string inverter, a string inverter with optimizers, or micro-inverters.

String inverters with optimizers and micro-inverters will perform superior to standard string inverters in most scenarios and are thus a good indicator of high-quality equipment. For more details on Micro and String inverters, check the video below.

 

When it comes to modules, the efficiency of the panel can help you separate top tier equipment from relatively poor equipment types. Efficiencies of 16% or below can generally be regarded as poor equipment types. The performance testing conditions or PTC rating of a panel can also be a good indicator of the quality of equipment.

The PTC rating of a module is what the panel is said to produce in real-world conditions VS standard testing conditions. Lastly, when it comes to rating modules and inverters, bankability of the company is a very important factor as it determines the validity of the product’s performance guarantee.

When choosing equipment for your solar system you want to buy a product from a company that will be around to honors its guarantee.

 

Types of Modules Used

Generally, there are two types of modules used in PV systems: Mono Crystalline and Polycrystalline. Mono Crystalline panels are made from one continuous crystal whereas polycrystalline panels are made from multiple.

Polycrystalline modules are slightly less efficient than mono modules due to lower space efficiency (they need more space than mono modules to output the same amount of power).

Over the last few years, mono-crystalline modules have overtaken poly modules as the industry standard. So, if you are receiving a quote from a solar installer there is a good chance it will include a poly solar panel.

 

Solar Warranties

Most solar installers will offer a workmanship warranty included in their quote. Five to ten years is the industry standard for most solar installers however some will offer twenty to twenty-five-year workmanship warranties covering the lifetime of the system.

These are generally looked at as extended warranties in the industry and will add cost to the installation.

Overall Installation Cost

When evaluating the overall installation cost of a quote you should be looking at the price per watt of the system and installation. This can be determined by dividing the gross cost by the total power rating (wattage) of the system.

It’s important when calculating the price per watt to make sure that you are looking at the gross cost before incentives and not the net cost of the system so you can make accurate comparisons with other quotes and installation companies.

Want to get custom saving projections for your home? Get started here!

Solar Loans – Good Debt or Bad Debt?

By Solar Loans: Financing Rates, Loan Terms, and More No Comments

So you’re thinking about adding solar to your home. Awesome! One of the key questions that solar shoppers soon run into is how to finance their solar project. Many national solar installers grew their businesses by signing up customers to 20-year leases.

In fact, according to a recent Greentech Media study (GTM), 72% of all residential solar systems were financed by a third party via either a lease or power purchase agreement in 2014.  As the cost of solar has come down, these long term contracts are going out of favor with homeowners.  

In place of leases and power purchase agreements, consumers are increasingly favoring to buy their home solar system, primarily through a solar loan.

Explore your solar loan options. Start here.

Solar Loans vs. Solar Leases

How should consumers consider loans compared to leases?  Well, a solar lease is very similar to your current utility bill.  The energy will be generated on site via clean solar energy, and the customer sees some level of bill savings.  But just like your normal utility-bill, you do not own the energy generator, and you are not paying off an asset. Instead, you only pay for the electricity the solar panels generate.

A solar loan provides a key differentiator from a lease, ownership.  With ownership comes another major benefit, added home equity.  A recent study from Lawrence Berkeley National Laboratory highlighted clear data that adding solar that is owned by the homeowner adds $4/watt of home equity to the house.  

So if you have a 5kW or 5,000 Watt system, that’s $20,000 of added home equity to your home.  

So a solar loan can add home equity, but is it good debt, or bad debt?  

Well, how are we defining good debt?  

Many financial advisors encourage consumers to avoid debt in most cases or to at least evaluate whether a debt is a good debt or bad debt.  In the case of solar, there is compelling evidence that solar debt is a unique case of good debt.  

How Stuff Works defines good debt as: “an investment that will grow in value or generate long-term income”.  Examples include a college education which will significantly increase your earning power or a mortgage for a home which will lock in your cost of living and is expected to increase in value over time.  

By that same definition, solar is a very good investment.  Solar.com’s Bid Generator provides estimated costs of a local PV system and total lifetime savings.  That same 5kW system which typically costs less than $20,000, will save you over $50,000 over the 25-year life of the system, equal to the length of the solar panel warranties.

 That’s $50,000 of money not going to your utility, or even your solar lease provider, but to your own pocket, savings, retirement, vacation fund or otherwise.  Add to that the $20,000 of home equity that you can capture if you sell your home anytime in the next 25 years, including tomorrow!

The most popular loan with Solar.com customers

Has a 12-year term, no pre-payment penalties, and interest rates of 2.99-4.99% depending on your credit score.  The 12-year term is common because, for most customers, their monthly loan payment is equal to or less than their current utility bill.  

This makes considering solar a similar decision to renting versus buying a home.  One of the primary drivers of home ownership is building personal wealth by applying mortgage payments to your loan principal outstanding as well as the long term rising value of the real estate.  

With all this in mind, consumers can rest assured with a solar loan.  Even if they are working an aggressive debt free plan, a solar loan is far superior to a solar lease or your current utility bill.  

Ready to get a custom solar loan evaluation? One of our experts will be happy to help. See how much you can save with Solar.Com, here!