Picking the right solar company comes down to verifying credentials, comparing quotes using the right metrics, and understanding what your contract actually promises. The wrong choice can mean overpaying by thousands of dollars, getting a system that underperforms, or being stuck with a company that won’t answer the phone when something breaks. Here’s how to evaluate solar companies so you end up with a system that delivers real savings.
Check Credentials Before Anything Else
Start by confirming the company holds a valid state contractor’s license for electrical or solar work. Most states require one, and an unlicensed installer can void your equipment warranties and create code violations that surface when you try to sell your home. Ask for the license number and verify it through your state’s contractor licensing board.
Beyond state licensing, look for installers who hold certifications from the North American Board of Certified Energy Practitioners (NABCEP). The PV Installation Professional certification is considered the gold standard in the industry. It validates competence in system design, installation, commissioning, and maintenance. Other relevant NABCEP credentials include the PV Design Specialist and PV Commissioning & Maintenance Specialist certifications. Not every good installer has NABCEP certification, but it’s a strong signal that the company invests in technical training and stays current with best practices.
Understand the Three Types of Warranties
Solar systems involve three separate warranties, and you need to know who stands behind each one.
- Manufacturer’s product warranty: Covers defects in the panels, inverters, and other hardware. Premium panels and microinverters often carry warranties up to 25 years. If a panel fails due to a manufacturing defect, this warranty covers the replacement.
- Performance or production guarantee: Promises the system will generate a certain amount of energy. Some companies will add panels or compensate you if your system consistently underperforms, for example producing less than 85% of projected output over 18 consecutive months.
- Workmanship warranty: Covers the quality of the installation itself, including roof penetrations, wiring, and mounting. This comes from the installer, not the equipment manufacturer. Workmanship warranties typically range from 5 to 25 years depending on the company.
A company offering a 25-year panel warranty but only a 2-year workmanship warranty is passing most of the long-term risk to you. If a roof leak develops from a poorly sealed mounting point three years after installation, you’d be paying out of pocket. Prioritize companies that offer at least 10 years of workmanship coverage.
Compare Quotes With Price Per Watt
When you have multiple bids in front of you, the total dollar amount alone won’t tell you which is the better deal. A $30,000 system and a $25,000 system might have very different capacities. The standard way to compare is price per watt (PPW): divide the net system cost (after rebates and incentives) by the total system wattage. A 7-kilowatt system that costs $21,000 after incentives works out to $3.00 per watt. A 6-kilowatt system at $19,800 is $3.30 per watt, making it the more expensive option on a capacity basis even though the sticker price is lower.
For a fuller picture, ask each company about the levelized cost of energy (LCOE). This metric spreads all your costs over the system’s lifetime, including financing interest, maintenance, and gradual panel degradation, then divides by the total energy the system is expected to produce. LCOE tells you the true per-kilowatt-hour cost of the electricity your panels will generate, which you can compare directly against what you’re currently paying your utility. Most homeowners won’t calculate LCOE themselves, but a reputable installer should be able to walk you through the numbers.
Get at Least Three Detailed Bids
Request proposals from a minimum of three companies. Each bid should include the system size in kilowatts, the specific panel and inverter brands and models, the estimated annual energy production in kilowatt-hours, the total cost before and after incentives, financing terms if applicable, and the full warranty breakdown. If a company gives you a single price without this detail, ask for an itemized proposal or move on.
Pay attention to system sizing. The kilowatt capacity should be based on your actual electricity usage, which the installer should pull from at least 12 months of your utility bills. A system that’s too small won’t offset enough of your bill. One that’s too large wastes money, especially if your utility’s net metering credits have dropped. Some companies will size a system based on your roof space rather than your consumption, which can lead to a mismatch.
Verify Savings Claims Yourself
Solar salespeople will project how much money you’ll save over time. These projections depend on assumptions about your energy usage, electricity rate increases, and the rate your utility credits you for excess power sent back to the grid. Any one of those assumptions can be wrong.
Check your utility’s current net metering or buy-back policy directly. Call the utility or look it up on their website. Rates have dropped significantly in many areas, and some representatives use outdated or inflated numbers. If the savings estimate a salesperson shows you assumes a buy-back rate that’s double what your utility actually pays, the real payback period could be years longer than promised. Also confirm the estimate is based on your electricity costs only. Solar panels don’t reduce gas bills, but some reps blur this line.
National Companies vs. Local Installers
National solar companies bring standardized installation processes refined across thousands of projects, bulk purchasing power that can lower equipment costs, and warranty networks that follow you if you move. The trade-off is customer service: you’ll likely deal with call centers and ticketing systems, and getting a callback can take anywhere from 24 hours to several days.
Local installers typically offer faster, more personal service. They know your area’s permitting process, local rebate programs, utility interconnection requirements, and climate-specific factors like snow load or hurricane ratings. They rely heavily on community reputation, which gives them a strong incentive to do quality work. The downside is that smaller companies complete fewer installations per year and may not survive for the full 25-year life of your system. If a local installer goes out of business, your workmanship warranty goes with them.
A practical middle ground: choose a local company that has been in business for at least five years, has a healthy volume of installations, and uses panels and inverters from major manufacturers whose product warranties exist independent of the installer.
Watch for Pressure Tactics
Door-to-door solar sales are common, and while plenty of legitimate companies use this approach, it’s also where most deceptive practices show up. Be skeptical of any representative who pushes hard for a same-day signature, shows you someone else’s energy bill instead of analyzing yours, or quotes savings numbers that seem too good to verify on the spot.
Before signing anything, call the installation company’s office and your sales representative to confirm they’re responsive. If you can’t reach anyone before the contract is signed, that’s a preview of what post-installation support will look like. In states that require a sales license, verify that the person at your door is properly licensed and that their name matches the credential.
You also have a legal right to cancel in most situations. Federal rules give you three business days to cancel a contract signed in your home. Use that window to review the agreement carefully, compare it to other bids, and confirm the system size, price, and warranty terms match what was discussed verbally.
Review the Contract Line by Line
Solar contracts vary significantly depending on whether you’re buying, financing, or leasing. For a purchase or loan, confirm the total system cost, the interest rate and loan term, the monthly payment, and whether the loan includes a dealer fee (sometimes called a finance charge or origination fee) that inflates the system price. Some solar loans bundle a dealer fee of 15% to 30% into the financed amount, which means you’re paying interest on a significantly higher principal than the cash price.
For leases or power purchase agreements (PPAs), look at the annual escalator, which is the percentage your monthly payment increases each year. An escalator of 2% to 3% might seem small, but over 20 years it can push your solar payment above what you’d pay the utility. Make sure you understand what happens at the end of the lease term: whether you can buy the system, have it removed, or must extend.
Regardless of the financing structure, confirm the contract includes the exact equipment models quoted, the production estimate, all warranty terms, the project timeline, and who handles permitting and utility interconnection. If the contract references different panel models or a smaller system size than what the salesperson quoted, that’s a bait-and-switch.
Check Reviews and References
Online reviews on Google, the Better Business Bureau, and solar-specific platforms give you a broad picture, but pay more attention to patterns than individual complaints. Every company gets a few bad reviews. What matters is whether the same issues come up repeatedly: long delays, unresponsive customer service, production shortfalls, or roof damage.
Ask the company for references from recent installations in your area, ideally systems that have been operating for at least a year. Contact those homeowners and ask whether the system is producing what was promised, how the company handled any issues, and whether they’d hire the same installer again. A company that can’t or won’t provide local references is worth passing over.