Types of Solar Installations
Purchased System (Best Long-Term Value)
You own the panels outright. You get the 30%% federal tax credit. All electricity savings and SREC income go to you. Highest upfront cost but the best 25-year return. Can be financed with a solar loan.
Solar Lease
A company owns the panels on your roof. You pay a fixed monthly fee that is lower than your electric bill. No upfront cost, but you do not get the tax credit (the leasing company does) and savings are smaller. Can complicate selling your home.
Power Purchase Agreement (PPA)
Similar to a lease, but you pay per kWh of solar electricity produced instead of a flat monthly fee. Rate is typically lower than utility rates but may increase annually. Same trade-offs as a lease.
Compare financing options.
Open Solar Loan Calculator →What to Look for in Panels
- Efficiency: 19-22%% for standard panels, 22-24%% for premium. Higher efficiency means fewer panels needed.
- Warranty: 25-year performance warranty is standard. Look for guaranteed output of at least 85%% at year 25.
- Manufacturer: Top-tier brands include LG, REC, Panasonic, Canadian Solar, Qcells, and SunPower. Avoid unknown brands with no US support.
- Temperature coefficient: Panels lose efficiency in heat. Lower coefficient (e.g., -0.30%%/°C) is better for hot climates.
Choosing an Installer
- Get at least 3 quotes (use EnergySage or similar comparison platforms)
- Verify NABCEP certification (the gold standard for solar installers)
- Check reviews on Google, BBB, and SolarReviews
- Ask for references from recent local installations
- Confirm they handle permitting, interconnection, and inspection
- Understand the warranty: workmanship warranty (installer) vs product warranty (manufacturer)
Red Flags
- Door-to-door salespeople pressuring you to sign today
- Quotes that seem dramatically lower than competitors (cutting corners on equipment or installation)
- No site visit before providing a quote
- Unwillingness to share equipment specifications or warranty details
- High-pressure financing with unclear terms
The best solar purchase starts with multiple quotes, independent research, and no rushed decisions. A good installer will welcome your questions and give you time to decide. Anyone who pressures you to sign immediately is not looking out for your interests.