Why Does Solar Get Such Mixed Reviews?
There are over 2,500 installers in California alone. Just like with restaurants and other businesses, some are excellent, some are inferior. So making sure you are working with reputable ones can ensure a good experience. In this post, I give a basic overview of what leads to a good experience so you have the tools to make a confident decision.
If you’ve spoken with many people about solar, you have likely heard a wide range of opinions about the benefits of solar. Why is there such a wide range of opinions and experiences with solar?
What contributes to customer’s satisfaction/dissatisfaction with solar?
There are three basic categories that lead to a good experience:
1) Finding the option that’s best for your situation: Cash Purchase, Finance Purchase, PPA, and Prepaid PPA–each can be good in their own way, but it’s important to look at all the options to make sure you get the one that’s right for you.
2) Finding a Solar Rep that Will Work in Your Best Interests. Having the right solar rep will go a long way to determining your savings and benefits.
Most people don’t realize that it is often the solar rep that designs the system and also sets the pricing (within certain parameters). If the rep is inexperienced or unethical/greedy, you can end up with a poorly designed and overpriced system. I have seen quotes for that ranged from $173/month to $356/month for the same system. The difference was simply because the rep was grossly over-inflating the price for their own benefit. This is particularly a problem with out-of-state reps that companies fly in during the summer.
3) Finding the Right Installer/Finance Company/PPA Company: This is where it can be confusing to sort through all the different options. With over 2,500 solar companies in California, multiple solar finance companies and multiple PPA companies to choose from, determining which is right for you can be overwhelming.
With all these variables, is it any wonder that people have mixed experiences?
What can I do to make sure my experience is a good one?
Most important is to make sure you are shown all your options.
Cash Purchase: If you are looking into Cash Purchase, choosing the right installer is most important. Check to see if they use subcontractors or do the work themselves, and also make sure they have the option to include Solar Insure on your system, to cover you in case the installer goes out of business or retires.
Financed Purchase: Solar financing in the era of high interest rates and high dealer fees can be tricky. This is why seeing the Cash price is important. Some dealer fees on Solar loans can be excessive, and it may be a better option to take a loan from a reputable credit union or bank instead. And, like the cash purchase, make sure they have the option to include Solar Insure on your system, to cover you in case the installer goes out of business or retires.
Power Purchase Agreements (PPA): There are many options with Power Purchase Agreements, particularly regarding the yearly payment increase. They range from 0% per year (=never increases) to 3.5% per year. If the rep only shows you a 3.5% and doesn’t show you what the payment is in 25years, that is a red flag that they are not working in your best interest. It’s not that the 3.5% is necessarily bad, its that they are making the choice for you without you being able to even know there are other options.
PrePaid PPAs: These are a hybrid between a purchase and a PPA. With the 30% tax credit no longer available for residential homeowners, the pre-paid PPA is becoming more popular. With this, you purchase the system (either in cash or as a financed purchase) at a discounted price since the company can claim the tax credit for you. They own the system for 5 years (including maintaining and monitoring it), then transfer the ownership to you at the end of the five years. This allows you to still get the benefit of the tax credit, but retain ownership.
Additionally, make sure the installer has solid reviews and the sales rep you are working with has been in the business for at least five years and actually lives in Northern California (ask to see their drivers license if you are unsure).
To ensure my customers get the best experience, I chose to work independently of any one company. I am constantly working to make sure the installers I work with maintain high integrity, consistency, and value.
I would be happy to discuss options with you and help you find the right program for your needs. Feel free to reach out with any question you may have.
