Which solar is best for home?

25 Mar.,2024

 

Link to ITNIOTECH

What is the best overall solar company?

Palmetto Solar is CNET's top rated solar company for 2024 thanks to the high marks we gave it for customer service and the quality solar panels and solar battery choices it offers. Most of the solar installers we've reviewed offer quality equipment and get high customer service marks, but we found that Palmetto offered greater price transparency and some of the more robust and detailed customer service plans we'd encountered. Palmetto operates in 26 states, including many of the most populous ones, but if Palmetto isn't available to you, you can find another great solar installer from CNET's curated best list below.

Best solar companies of 2024

The start of 2024 is an odd time for the solar industry. Last year, new net metering regulations caused a boom of solar installations before a precipitous drop in California, the country's largest residential solar market. California's NEM 3.0 policy has seriously hurt net metering incentives in the state. Paired with high interest rates that make it harder for people to finance systems, it's led to 17,000 layoffs in the state, according to the California Solar and Storage Association, and businesses closing up shop. That includes CNET's previously highest rated solar company, ADT Solar. ADT closed its solar business in January 2024.

This best list draws from national and notable installers of (mostly) rooftop solar panels. Our selections might change as we review more companies or as companies change their offerings. I've written or edited each of the reviews this best list draws from and developed our scoring methodology. Throughout this process, I've spent hours reading equipment spec sheets, looking at national trends and speaking with representatives from many of these companies to rank them on criteria that matter to you.

Can solar panels save you money?

Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.

These companies were rated on the variety and quality of equipment and products they offered, their stated warranties and apparent commitments to customer service. (Customer service is difficult to pin down and therefore makes up a smaller portion of the score, even though it's a significant part of the purchasing process.)

Besides our top pick, Palmetto, several other companies ranked above the competition. They all offer solid equipment but stand out in specific ways: SunPower, for premium solar panels; Tesla, for lower prices and Momentum, for its in-house installers.

If you're looking for a solar installer, be sure to get multiple quotes, including ones from local installers. The specifics of a solar array could change given the shape and angle of a given roof or the energy usage and habits of a given household. Solar can be a great investment, but you need to do some research on your own.

8.3

SCORE

How we score solar panels, products, and services.

Hands-on testing of solar equipment and companies is difficult. We examine technical specifications, talk with companies and consider customer reviews to find the best product available.

Read our methodology page

Palmetto Solar

Best overall

Read full review

Solar panels are typically low maintenance equipment, but they're also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it's working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto's monitoring service in to your payback period calculations.

  • Equipment

    9.3 / 10

  • Warranty

    6 / 10

  • Service

    10 / 10

.

.

.

Start Savings Estimate

Pros and Cons

Pros

  • Options for after-installation support
  • Top-of-line equipment
  • Financing marketplace

Cons

  • Some warranties could be stronger
  • No consistent price match policy
Areas served

Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Kansas, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Virginia

Product details

Palmetto Solar has more robust service for after installation than most other companies, though it might cost you a bit. All customers receive third-party monitoring and proactive communication when some part of their solar system malfunctions. Palmetto also receives an A-plus from the Better Business Bureau. Palmetto offers quality solar equipment and is one of the few companies that offers Sonnen's batteries. Palmetto's workmanship warranty is 10 years and its weatherization warranty is 5 years.

Show more details

7.7

SCORE

How we score solar panels, products, and services.

Hands-on testing of solar equipment and companies is difficult. We examine technical specifications, talk with companies and consider customer reviews to find the best product available.

Read our methodology page

SunPower Solar

Best solar panels

Read full review

If you're looking for top-of-the-line solar panels, SunPower is your best choice. But don't write it off if you're looking for a less flashy installation that will get the job done. This year it started installing Qcells panels, which should make an installation from the longest-tenured company on our list available to more people.

  • Equipment

    8 / 10

  • Warranty

    8.5 / 10

  • Service

    7 / 10

.

.

.

Start Savings Estimate

Pros and Cons

Pros

  • Most efficient panels
  • Strong warranties

Cons

  • No price match
  • Only installs one battery brand
Areas served

All 50 states

Product details

SunPower Solar offers top-of-the-line solar panels and strong warranties. The solar panels SunPower offers have industry leading efficiency marks (22.8%) and a warranty that guarantees at least 92% production after 25 years. It earns an A-plus rating from the Better Business Bureau. SunPower now installs batteries in four sizes, all of which come with strong warranties.

SunPower's solar panels might be a bit more expensive than others (though accurate pricing industry wide is hard to come by). The company has said it plans to continue rolling out more accessible solar solutions and started installing solar panels from Qcells this year.

Show more details

7.6

SCORE

How we score solar panels, products, and services.

Hands-on testing of solar equipment and companies is difficult. We examine technical specifications, talk with companies and consider customer reviews to find the best product available.

Read our methodology page

Elevation

Whole home approach

Read full review

Elevation's focus on your home's energy efficiency isn't the norm in the industry. If you're planning on addressing energy efficiency first, working with Elevation allows you to keep the whole process with one company. Elevation's solar equipment comes from well-established and well-regarded companies. Elevation's warranties on workmanship and weatherization could be a bit longer.

  • Equipment

    9.3 / 10

  • Warranty

    6.5 / 10

  • Service

    7.5 / 10

.

.

.

Start Savings Estimate

Pros and Cons

Pros

  • In-house labor
  • Price match guarantee

Cons

  • Average warranties
  • App is poorly reviewed
Areas served

Arizona, California, Florida, Nevada, Texas

Product details

Elevation is a solar installer operating in several states, mostly in the Southwest, and emphasises more than just solar panel installation. The company touts itself as an energy efficiency business, focusing just as much on assessing and improving the efficiency of homes. Elevation offers a price match guarantee and in-house labor. It installs Qcells solar panels, among other brands, and battery brands including Enphase and Tesla.

Show more details

Freedom Forever

Best for cash customers

Read full review

Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that's changing.

  • Equipment

    9.3 / 10

  • Warranty

    7 / 10

  • Service

    5 / 10

.

.

.

Start Savings Estimate

Pros and Cons

Pros

  • Production guarantee
  • Price match guarantee
  • Cash escrow option

Cons

  • Customer service concerns
  • Some warranties are longer elsewhere
Areas served

Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maine, Maryland, Massachusetts, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., Wisconsin,

Product details

Freedom Forever, one of the largest American solar installers, installs some of the most popular residential equipment. It offers a production guarantee and an uncommon cash escrow option is a welcome step toward a less stressful process.

Freedom Forever has had customer service issues, with complaints of paying for a nonfunctional system while dealing with poor communication and long waits. Some recent customers have had flawless experiences, but those reviews appear alongside many more negative ones. The company says things have turned around after a bad stretch, but it’s worth monitoring.

Show more details

7.2

SCORE

How we score solar panels, products, and services.

Hands-on testing of solar equipment and companies is difficult. We examine technical specifications, talk with companies and consider customer reviews to find the best product available.

Read our methodology page

Tesla Solar

Most affordable

Read full review

Tesla's solar branch seems to be the least loved of Elon Musk's ventures. Even Tesla's Solar Roof seems to get more love.

If price is the thing you won't budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.

Where you might miss out is customer service. Discussion online seems to suggest Tesla's service is a bit of a gamble.

  • Equipment

    7.3 / 10

  • Warranty

    6.5 / 10

  • Service

    8 / 10

.

.

.

Start Savings Estimate

Pros and Cons

Pros

  • Low prices and a price-match guarantee
  • Quality equipment
  • Lower-profile panels

Cons

  • Anecdotally, customer service can be poor
  • Fewer equipment options
Areas served

All 50 states

Product details

Solar panels from Tesla are likely to be the cheapest option where they are available. You can save thousands of dollars, without sacrificing on quality of equipment or the warranties that protect it.

What you might sacrifice is customer service. From delays to price changes, to slow responses, to system malfunctions, social media reports of negative experiences aren't hard to find, including some who regret their choice. This is true of all solar companies, but the quantity of reports concerning Tesla is concerning.

Show more details

6.9

SCORE

How we score solar panels, products, and services.

Hands-on testing of solar equipment and companies is difficult. We examine technical specifications, talk with companies and consider customer reviews to find the best product available.

Read our methodology page

Momentum Solar

All in-house installers

Read full review

Momentum installs in 11 states without using subcontractors. While using in-house installers doesn't guarantee a better experience, it does suggest you're likely to get a more uniform experience from Momentum. The fact that Momentum backs its installations with a 25-year workmanship warranty hints at a strong belief in its crews' ability. If Momentum is part of your search, consider the warranties against leaks that other companies offer. Momentum's is five years, which isn't the best.

  • Equipment

    6 / 10

  • Warranty

    7.5 / 10

  • Service

    7 / 10

.

.

.

Start Savings Estimate

Pros and Cons

Pros

  • 25-year warranty on workmanship and equipment
  • Doesn't use subcontractors
  • Long track record in the industry

Cons

  • Only offers one brand of panels
  • 5-year roof penetration warranty
Areas served

Only solar panels: Arizona, Connecticut, Georgia, Massachusetts, Nevada, Pennsylvania

Also installs batteries: California, Florida, New Jersey, New York, Texas

Product details

Momentum Solar puts Qcells solar panels on roofs in 11 states, and installs Enphase batteries alongside them in five of those. Momentum is one of a few companies that will price match quotes from other companies. It also receives an A-plus from the Better Business Bureau. The company also uses only in-house, Momentum-trained installation teams and backs that work up with a workmanship warranty that lasts 25 years, matching the longest warranty terms in the industry.

Show more details

Best regional or local solar companies

Some of the companies we've evaluated have scored highly, but aren't available to as many people because they operate in just a couple of states. While the number of people served doesn't affect a company's score, we've separated these out because fewer people can access their services.

8.7

SCORE

How we score solar panels, products, and services.

Hands-on testing of solar equipment and companies is difficult. We examine technical specifications, talk with companies and consider customer reviews to find the best product available.

Read our methodology page

NRG Clean Power

Best in California and Texas

Read full review

NRG Clean Power brings one of the solar industry's most confident approaches to its work, offering a price match and 40-year warranty. NRG Clean Power is a solid bet as long as you live in Texas and California. NRG Clean Power does not offer leases or power purchase agreements, but it does provide solar panel cleaning and roofing services as well as a reliable equipment menu.

  • Equipment

    9.3 / 10

  • Warranty

    9.5 / 10

  • Service

    7.5 / 10

Explore with NRG

Pros and Cons

Pros

  • Industry-leading 40 year warranty
  • Price match
  • Strong equipment selection

Cons

  • Only services two states
  • Some negative reviews
  • No leasing options
Areas served

California, Texas

Product details

NRG Clean Power offers one of the solar industry's best warranties at 40 years. The company also has a price match and has been around for three decades, starting as a heating and air conditioning company. The company only operates in two states, California and Texas.

Show more details

7.2

SCORE

How we score solar panels, products, and services.

Hands-on testing of solar equipment and companies is difficult. We examine technical specifications, talk with companies and consider customer reviews to find the best product available.

Read our methodology page

Renu Energy Solutions

Great option for the Carolinas

Read full review

If you live in the Carolinas, Renu offers equipment from well-respected manufacturers and has indicators that its customers are, overall, quite happy. Some of it's warranties -- 10 years on workmanship and 5 years against leaks -- are a bit shorter than others in the industry, where they can reach twice as long. Customers gave it an average rating of 4.79 out of five at the Better Business Bureau, which is higher than most companies on the list.

  • Equipment

    8.7 / 10

  • Warranty

    6 / 10

  • Service

    7.5 / 10

.

.

.

Start Savings Estimate

Pros and Cons

Pros

  • All in-house installers and employees
  • Strong customer service reputation

Cons

  • Shorter than average warranties
  • No lease of PPA options
  • Not the cheapest option
Areas served

North Carolina, South Carolina

Product details

Renu is a regional solar installer operating in North Carolina and South Carolina. The company, established in 2010, uses all in-house installers -- no subcontractors -- and installs solar panels, batteries and electric vehicle chargers. Renu doesn't offer leases or power purchase agreements, and installs products from Tesla, REC, Enphase, SolarEdge and Solaria.

Show more details

Compare the best solar companies of 2024

This table compares how companies rate by some (but not all) of the criteria we use to judge them. To get the full picture, click the company name to visit their review.

Other companies we reviewed

We've reviewed other solar companies that don't appear in our best list above, including some that scored higher overall than Tesla's solar panels. Given the nature of the solar panel industry, which shifts from state to state and roof to roof, some of these other companies might be better suited to your situation. 

  • Blue Raven: Now a part of SunPower, one of our favorite solar companies, Blue Raven installs a variety of panels alongside SunVault batteries using all in-house installation teams. Like its parent company and many other solar installers, Blue Raven could offer a price match guarantee and greater price transparency but gets strong marks for customer service.
  • Primitive Power: Operating on a brokerage model, Primitive Power goes between the customer and installer, promising to offer better prices through a competitive bidding model. Because the business model doesn't fit our scoring methodology, Primitive doesn't get a score from us, but could be a good place to get multiple quotes all at once.
  • Qcells: This solar panel manufacturer with factories in Georgia will connect you with an installer that works with its products. It doesn't have in place the same guarantees or policies most of the installers on this list have, so it doesn't get a score, but if you're interested in its high-quality, American-made panels, we wrote up all the details.
  • Smartflower: The solar sunflower is a beautiful way to install solar panels. Unless you're trying to advertise your green commitments or find a statement piece for your yard, it's likely too much money for too little solar.
  • Sunnova: Sunnova recently gained loan guarantees from the US government to help low and moderate-income families adopt solar. If you have less-than-stellar credit, Sunnova might be a good option for you, although you should still shop around. It installs a wide variety of batteries and offers some strong warranties. It has had customer service issues in the past and lost its Better Business Bureau accreditation, an issue the company and the bureau both said they were working to rectify.
  • Sunrun: The biggest solar company in America. Sunrun offers quality panels, a choice of a couple of batteries and quality inverters. It also offers strong warranties. Most of its business is in leases or power purchase agreements, and Sunrun provides stronger warranties for power purchase agreements than purchases. Its overall score is higher than Tesla's but just missed edging out the others due to its lack of a price-match policy.
  • Tesla Solar Roof: Tesla's Solar Roof is an exciting way to imagine solar. It's sleek, it's low profile, but it's very expensive. Depending on the size of your roof and your location, it can be several times more expensive than solar panels. 
  • Trinity Solar: For a while, Trinity was CNET's top company for customer service and still receives top marks. It also offers quality equipment and warranties, although some of its warranties, like its workmanship warranty, are a bit weaker than other companies.
  • WindMar Solar and Roofing: WindMar is one of the longest-tenured solar installers operating in Puerto Rico and Florida. It installs quality equipment, although customers who finance their system through a loan or enter a lease receive stronger warranties than those who purchase outright.

Why are people buying solar panels now?

If you're planning to buy solar panels to avoid rising energy costs and blackouts or to invest in renewable energy, you're not alone. Residential solar installations grew by 40% in 2022 from the previous year, according to the Solar Energy Industries Association.

You can get 30% of the cost of solar panels back on your taxes and participate in local incentives and net metering (where available). The Inflation Reduction Act that was passed last year opened up more rebates for energy-efficient home improvements, electric appliances and other renewable energy solutions, which could help you save even more with solar panels.

Improvements in solar panel technology and manufacturing have also brought the prices of solar panels down significantly from where they were a decade ago, and industry experts say that trend should continue. Coupled with newly expanded tax credits, solar panels have never been more affordable. 

With climate change expected to fuel severe weather that can cause more power outages, solar panels with a backup battery can keep your home powered.

Solar panels cost a lot, in most cases. Since few people can build their own solar panels, you'll need to carefully research which installer is best for you. Below are my choices for the best solar companies. But when you're making a purchase as big as solar panels, don't let this list be your only stop. Solar panel companies, because their products require lengthy, professional installation, are tested a bit differently than other categories on CNET.

This list and the reviews it draws from aren't based on any hands-on testing. There's no feasible way to do hands-on testing of the purchase process, installation or performance of a solar array. Instead, these solar company reviews rely on interviews with company spokespeople, publicly available data and analysis of trends (like solar panel prices). While the reviews are as thoroughly researched as possible, the nature of the product means there are some limitations compared to other categories, like portable power stations.

Factors to consider when choosing a solar installer

Choosing a solar installer is like choosing a contractor for any home improvement project. You have to ask a lot of questions, get multiple quotes and make a decision on some combination of who's giving you the best deal and who you feel most confident in working with. There are some tips for choosing a solar installer, though.

  • Get multiple quotes and compare: This is possibly the single most important step. You can't know if you're getting ripped off without checking a quote against something else. To get a sense of the price variety, compare at least three quotes.
  • Understand your local incentives: Make sure you know whether your local government and utility have solar-friendly policies that can make solar a safer financial bet.
  • Read reviews and complaints: Online reviews aren't the gospel truth, but they're useful for educating yourself on the issues that might crop up and common experiences that customers have had with a company. Google and Yelp reviews are a couple of good places to start reading customer reviews.
  • Talk to your neighbors who have solar panels: Ask your neighbor(s) how well their chosen company communicated, stuck to the schedule, navigated the permitting process and supported them after installation. If the company has a referral program, you could kick a few hundred dollars your neighbor's way, too.
  • Check licenses and certifications: You can check the North American Board of Certified Energy Practitioners for certified installers near you. There are other certifying organizations, so ask installers where their licensure comes from.
  • Ask your installer questions: A reputable installer shouldn't be afraid of questions. If you feel you're getting the run-around, ask other installers the same and compare their answers. Your installer should be able to answer all your questions, even the difficult ones. Make sure to ask your installer about project deadlines and how financing works.
  • Calculate your savings: If a company seems to be promising too much, it might be less than honest. Solar panels can save you a lot of money in the long term, but not in all situations. Find out how to calculate your expected savings with solar panels. If your calculation comes in much lower or higher than a salesperson's, ask about it. 

How does solar panel installation work?

The process of getting solar panels looks a little different from company to company, but the broad strokes are the same.

After initial contact with the company, someone should visit your home. While parts of the design and quoting process might involve looking at satellite imagery, having a professional actually visit your house allows them to take into account trees that might have grown since the aerial images were taken. They'll also be able to assess the health of your roof and whether it needs to be replaced or not and identify any other barriers to going solar.

Then the system will be designed, sized, approved by you and permitted. After the company receives permits from the necessary authorities, your installation will be scheduled. Installation typically takes a day or two.

Installation, unless you're installing certain solar roofs, requires drilling holes through your roof and into the joists that support it. It's necessary to keep your solar panels securely attached, but you'll want to pay careful attention to how long your installer guarantees those penetrations will remain watertight.

Installation will also require new wiring to be installed. Sometimes that means new conduit being attached to the outside of your house, though some companies will install it in your attic for free or for an additional charge.

After installation, you'll need to get permission to operate from your utility, which needs to approve new electricity generation in their service area, unless your system is off the grid. Once you've received permission, you'll transition to generating energy, monitoring your array's performance and maintaining your solar panels to keep them up and running for decades.

While the timeline will vary, it usually takes several months to design, permit, install and switch on residential solar arrays. You should ask the installers you interview for their estimated timeline.

Brenda Sangi Arruda/Getty

How much do solar panels cost?

The average cost for a residential solar installation is $2.99 per watt for an 8-kilowatt system, according to an analysis by Wood Mackenzie. That means that an 8-kilowatt solar panel system would cost about $23,920, but that's just an average. The cost of solar panels varies by location, thanks to so-called soft costs, like permitting, inspection fees and labor. It also depends heavily on what kind of solar panel system you get and whether you buy a battery to go with it. Batteries, which can cost $10,000 or more, add significantly to the price tag.

The map below pulls data from FindEnergy.com to give the average total cash price, cost per watt and average system size state by state. These are prices before federal, state or local incentives. States in gray lack sufficient data.

Solar panel incentives and rebates

There are plenty of incentives to reduce the cost of solar panels or your tax bill. The Inflation Reduction Act increased the federal tax credit for solar panels to 30% and made it available for 10 years. Other local tax exemptions or incentives could be possible, too. If your utility has a net metering program, you could receive credits on your utility bill that will help you save money.

How much can going solar save you?

The answer depends on your own personal energy usage, the solar panel system you choose and a variety of other factors such as net metering policies. There are a few things you can calculate to help you find out how much you can save. The first is your payback period, in which you calculate the cost of installing solar panels after tax credits and incentives, and divide that by how much money in energy costs you expect to save each year. That will give you a period, in years, after which your solar panels will have paid for themselves in savings.

Your solar panel payback period can vary widely. But after you hit that date, any energy you don't have to pay for is money saved. 

It's also entirely possible that, because of your home, your energy usage or other factors, solar panels might not save you money. In that case, if you want to go solar, you can consider other options such as community solar.

Read more: Want something smaller than a whole-home solar system? See our picks for the best portable solar panels and solar generators.

What solar equipment goes into a solar system?

While the panels are the most visible and well-known component of a solar array, there are other necessary and optional pieces of equipment you'll need to know.

Solar panels

Nearly 100% of the residential solar panels installed today are monocrystalline, according to the Lawrence Berkeley National Laboratory (PDF). Some polycrystalline panels are still installed. They're cheaper but less efficient, but it likely won't be a concern for you.

Solar inverters

Solar panels produce electricity in direct current. Our houses and all the appliances within them use alternating current. The solar inverter converts the electricity from direct to alternating current.

There are two main types of inverters in use: string inverters and microinverters. String inverters transform the electricity from a group (or string) of solar panels. This means you only need one per residential array, typically, but the entire array is affected by the lowest-performing panel. If one of your panels is shaded, it will reduce the output of the rest of the array. String inverters are typically cheaper to install but come with shorter warranties.

Microinverters operate on the panel level, which means if one is shaded, the rest can keep producing at full capacity. Because they are installed on the roof with the panel, they're typically a little harder to service but produce a bit more energy. Microinverters cost a bit more to install but often come with 25-year warranties.

String inverters can also be installed with power optimizers, which perform a similar role to microinverters. The energy is still translated to alternating current at the central string inverter, but the power optimizer lets panels work independently of each other.

Solar backup battery

Backup batteries are becoming a more popular addition to solar arrays. Time of use rates from utilities (where electricity is typically cheaper when solar panels are producing and more expensive when they're not) make batteries a more financially feasible choice for many. Solar panels won't generate electricity during a blackout unless they have a battery that allows them to go off the grid temporarily, a process called islanding.

Backup batteries don't always make financial sense, so make sure you understand whether or not it does for you before diving in. If you're hoping to have power during a blackout, the financial calculation may be less important to you.

How to pay for solar panels

Solar panels come with a hefty price tag so, just like other major purchases, a few financing options have become commonplace.

Paying for solar panels with cash

Paying with cash is the most straightforward and fee-free way to pay for solar panels. You won't pay interest or loan fees and you'll lock in the 30% federal tax credit. The obvious downside is that you'll need to drop a huge chunk of cash all at once, which not everyone can do.

Paying for solar panels with a solar loan

Most solar companies offer financing options, including third-party or in-house loans. If you purchase solar with a loan, you'll get the federal tax credit, too. Loans of any sort come with interest and fees and, while it's hard to paint all solar loans with the same brush, it pays to compare fees and interest rates. You can also pay with a loan you bring from elsewhere, like a personal loan from your bank.

Paying for solar panels with a home equity loan

Home equity loans or home equity lines of credit let you borrow money against the value of your house. This can secure you a lower interest rate but introduces some other risks. If you default on a home equity loan, your home can be foreclosed on. Since you're still purchasing your solar panels, you'll qualify for the federal tax credit.

Getting a solar power purchase agreement or solar lease

If you see ads touting homeowners going solar with zero money down, they're probably for solar power purchase agreements and leases. But what is a PPA? It's the less familiar cousin of a lease.

With a lease or PPA, you don't actually own the solar panels on your roof. Instead, you agree to pay a monthly fee for the equipment (a solar lease) or to buy the electricity the solar panels produce (a PPA). This means you can go solar without a hefty price tag (and often zero money up front). It's common for these rates to increase each year, so pay careful attention. If the escalation rate is too high, you may end up saving less money than expected over the lifetime of the deal. Since you don't own the panels with these agreements, you won't be eligible for the federal tax credit.

How we evaluate solar companies

Reviewing solar companies in a hands-on way is tough. Each project is as unique as the house it goes on and the family that will use its electricity. To evaluate these solar installers in a meaningful way, we had to focus on what we could measure and what would be useful to you.

We rate companies on three categories of criteria: equipment, warranties and service. 

In the equipment bucket, companies get scored on the panels, inverters and batteries they install. Warranties include the guarantees on the panels (which typically come from the manufacturer), workmanship and weatherization against leaks. Companies gain points for service for offering a price match, a meaningful level of price transparency and a well-rated app for monitoring solar production. They lose points for major customer service issues (lawsuits, investigations or obvious reputations for shoddy service). We'll always detail these in the review.

You can read a detailed look at how the scoring breaks down.

We don't consider the average price of a company's installations in their score. Average prices are hard to find and compare place to place (or even roof to roof). Companies are often slow to disclose it, too. We also leave out information that's easy to find, but not useful to you, like how many states a company operates in.

Solar panel FAQ

Are solar panels worth it in my state?

Solar panels will likely be worth it, depending on the details of your specific situation. If you use very little energy or have very cheap energy, you won't be saving as much money each month and it will take longer for your panels to pay for themselves. If you live under deep tree cover, rooftop solar panels likely won't generate enough electricity to be worth it. 

Solar can pay off in energy savings for decades. Lowering the cost with rebates and tax credits will help pay off your solar panels faster. How you pay for your solar panels will affect that calculation, too. It'll take longer to recoup your costs if you take out a loan, which will accrue interest and come with fees. You can calculate your payback period if you know the cost of solar panels after rebates and how much you'll save on energy costs each year.

Most importantly, be sure you're saving money by shopping around and finding the right solar panel system at the right price.

How many solar panels do I need?

This answer is specific to you and depends on how much energy you use and how much sunlight you get. Depending on your local regulations and electricity rates, installing more panels than you strictly need may not be allowed or even worth it.

To calculate how many solar panels you need determine your average daily energy use in kilowatt hours. Divide that by the peak sun hours your home gets to find how much solar capacity you'll need to install in kilowatts. Divide that capacity by the size of your solar panels (400 watts, or 0.4 kilowatts, is a common size) to get the number of panels you'll need.

This is just a rough estimate and a reputable solar installer should be able to offer you a rationale for the number of panels they propose installing.

What is net metering?

Net metering is the way that utilities compensate you for energy your solar panels generate but you don't use. Since this energy flows back to the grid for someone else to use, it's fairly common for utilities to offer you bill credits for that energy to offset what you buy from them. These credits save you even more money on electricity than solar panels would without.

Net metering will look different from utility to utility and the incentive has been challenged and even eliminated in some states, like Indiana. 

How long do solar panels last?

If you buy solar panels today, there's a good chance they'll be under warranty for 25 years. You'll often see that listed as the lifespan of the panels, but that's not quite accurate. That warranty covers production of your solar panels. Solar panels lose their ability to produce solar electricity as they age for any number of reasons, so a warranty will guarantee a certain level of production after a certain number of years. For example, Q Cells offers a 25-year warranty, which guarantees that your panels will produce at 86% of their rated capacity at that point.

This doesn't mean those solar panels die at the end of 25 years, they'll just produce less. Solar panels can produce well after their warranty expires, though given that large numbers of solar panels are just now being installed, we'll continue to get a better idea of how they age in years to come.

Should I hire a solar panel installer?

While skilled do-it-yourselfers might be able to pull off a solar panel installation, it's definitely not recommended. Going through a reputable and licensed solar installer gives you a number of protections. Installing solar panels is not as simple as plugging in a large appliance. A qualified solar installer will be able to navigate local code and ordinances and ensure that the warranty on the panels remains intact. They will also be able to tell you if you need a new roof or other upgrades before installing solar panels.

A solar installer will also be able to design your solar system to best fit your goals and habits by identifying the most productive locations on your roof and angling panels to collect the most sun. Further, your installer should be able to help you troubleshoot any problems that arise after installation.

How do I know if the quote I have is a good one?

The best way to tell is to get multiple quotes. With a purchase this big, you should get several, including one or two from local installers who might be able to offer you greater choice.

There are also resources from the federal and many state governments to guide you through the process. You can look out for a few red flags from salespeople, too. 

Are local solar installers a good option?

Local installers typically have less costs for advertising and sales than large, national corporations. That represents possible savings that could be returned to customers. On the other hand, with a long-term investment like solar panels, it may feel safer to have the backing of a large corporation. Larger companies may be able to offer cheaper prices due to the volume of installations they do.

When you're gathering quotes for a solar panel installation, be sure to contact local installers, too. The solar industry is a competitive one, and checking around could save you thousands.

Will solar panels work in my climate?

Identical solar panels will produce different amounts of electricity when they're exposed to different levels of sunlight. Solar panels in sunnier places (like the American southwest) with more direct sunlight (like in the south) will produce more electricity, but other factors make solar a good deal for homeowners.

New England has one of the highest regional adoption rates for residential solar in the US. That's not because it has a ton of sunshine year round, but because it has favorable solar policies, like net metering and rebates. Solar panels might make financial sense even if they'll be installed under frequently cloudy skies. 

Can I get the federal tax credit?

The federal tax credit for solar panels is still around. For any solar panels installed in 2024, the federal government will give you 30% of the cost back on your income taxes. As part of the Inflation Reduction Act, passed in 2022, the credit was bumped up to 30% and will stay at that level through 2031.

Besides the federal tax credit, there might be state and local incentives you can take advantage of.

Correction, Jan. 31, 2023: An earlier version of this article misstated the Better Business Bureau's grading process. Any company can receive a grade from the Bureau, regardless of whether it has paid to go through the accreditation process.

Choosing the best solar panel can feel overwhelming, but it's easier than you might think. If you select a quality solar installer, in most cases they'll install quality solar panels. 

Many companies offer great solar panels. It's your installer's experience and your solar system's size that really determine your installation's effectiveness. Still, every home is different, and some can benefit from the highest quality panels. If it’s important that you have the "best" solar panels, efficiency, power output, and ability to perform in warm temperatures are all important. You'll also want to choose panels from a company that backs its panels (and ideally your entire system) with a strong warranty. 

We reviewed hundreds of solar panel models and found that five brands stand out: SunPower, REC, Panasonic, Maxeon, and Jinko Solar.

Which solar is best for home?

Best Solar Panels: Which One Should You Choose?

Click here to get more.

Want more information on Marketing Message for Fintech Industry? Feel free to contact us.