It’s time to shine light on home solar power systems to help homeowners choose wisely. There is a lot more to the solar systems and service than just the panels, but only scattered one-dimensional information is available online. A lot of major complaints to solar companies are filed, partially due to the lack of data and analysis before deciding on a system and a contractor. After thoroughly vetting more than 5 contractors, tons of research, and the lessons learned from whole process, I decide to create a nuanced yet concise guide to help potential home solar customers choose the right system and service for individualized circumstances. You are here to benefit and become a smart consumer.
If you are still debating whether to go solar
Starting in 2020, all newly built single-family homes and multi-family dwellings up to three stories high in California are required to include solar panels. For homes in sunny places, renewable solar energy is too good to pass up.
While Elon Musk, Bill Gates and experts debate how best to power the entire United States, it’s clear that we have an option to take it in our own hands to power our own homes with solar energy. Home energy prices continue to soar, both natural gas and electricity. Global warming makes heat waves hotter and longer, and yet I remain chill about turning on AC and my electricity bill because I have a solar system. Gas price surge? No problem. I can always switch to an electric vehicle. The solar panels harness enough electricity to charge an EV.
A lot of people shy away from the high price tag but don’t do the calculations properly. Before more on cost is discussed, let’s learn about the key elements that can make or break your solar experience.
Residential solar power system: things to consider
A lot of customers only compare solar panels and pricing when choosing a contractor. That just may be a mistake that follows you for decades. Consider the following before making the solar decision for your home or small business.
Panels or solar roof tiles?
You can compare the pros and cons, but the easy deciding factor is whether you are about to reroof or building a house from the ground up. The cost is drastically different. Solar tile or solar shingle technology is still in its infancy, and currently perhaps only a good choice for those with a big budget. Here is a good read on solar tiles.
Solar panels
Efficiency, aesthetics and cost are the biggest considerations for solar panels on your roof. I would encourage to take a closer look at the degradation of efficiency and performance guarantee. Top brands such as SunPower, LG, REC and Panasonic offer guaranteed higher overall efficiency over the years and are likely worthy of the price in many situations. Another important factor is how much best facing roof space you have and how likely you will need to add more panels down the road. The less roof space you have, the more beneficial a high-efficiency panel is for you.
Mounting system to protect your roof
If you plan to install solar on your tile roof, the choice of a mounting system is just as important as solar panels. It is wise to choose a mounting system that minimizes the risk of roof damage or leak. The downstream damages caused by a roof leak and cost of repair can be very scary.
There are mainly two types of mounting for tile roofs:
- Tile replacement
Tile replacement mount is an improved method. It’s secure in high winds. - Side or bottom hook
Cheaper than tile replacement mount. Tiles may be damaged in high winds. Flashing will need to be carefully chosen.
When installed properly, either QuickMount hook or tile replacement installation will not void your roofer’s warranty. If a less expensive hook system is desired, it might be a good idea to check the strength of the hook and whether the roof warranties are maintained.
Inverter and optimizer
An Inverter converts DC power from solar to AC power for your home and the electrical grid. There are different types and designs of inverters with different pros and cons. A solar power optimizer boosts the DC-AC power conversion by panel-level performance monitoring (like what a microinverter can do) and smoothing the flow of panel-level electricity to the inverter. It’s also worth paying attention what inverter and optimizer a contractor chooses.
Project management and service
Project management is probably the most neglected consideration area when choosing a solar contractor but not any less important. Too many things can go wrong. A one month installation project can easily be delayed for three months. That could be first three summer months you plan to have solar energy covering a high AC usage. The solar contractor’s project team can be very disconnected and disorganized, and prioritize larger clients or commercial clients. After the installation, you are basically stuck with the contractor for the entire lifespan of the system. The solar products I choose are great, but the project team and service after signing the contract is worse than unsatisfactory. The contractor is essentially a regrettable hire. One install technician who has worked for many solar companies mentions that a lot of clients have major complaints.
Insights to a better solar service and experience
Yelp reviews might not be reliable in some cases. Better Business Bureau can provide extra insights to a local contractor. It is difficult to know the integrity or competency of the project operation team because you might only speak with the sales rep prior to the contract, but there are a few signs you can look for.
- How much technical and operational knowledge the sales rep has? It shows how connected the employees are across functions, and how likely they help each other versus pushing off responsibilities.
- Do they proactively prepare you for the estimated timeline of steps involved? Who is responsible for each step, handoffs and dependencies? If you live in a HOA governed community, you have action items too. But you wouldn’t have a clear understanding if they don’t tell you. Do they have the clear answers for you before you sign the contract?
- Do they proactively let you know who would be the point of contact in the installation process? Or they leave you in the dark with poor communication? You will likely need a point of contact accountable for the project, especially when something goes wrong.
- Does the project manager answer your minor questions promptly? The sales rep will always answer all of your questions like you are his or her new best friend because your commission is their best friend. But does the project manager answer your seemingly non-important questions promptly with respect? Or they have more bigger customers to cater to?
- Are proper terms placed in the contract to protect you from deficiency in management and service? This perhaps is the only guarantee you can have.
Warranty and contract
Warranties are in the contract but it’s wise to ask prior to deciding on a contractor. Here are some warranty information you can inquire.
- Manufacturer’s warranty length and terms for each component of the solar system
- Workmanship warranty
- Roof penetration warranty and maximum coverage amount
- Warranty transferability to a new homeowner
The patience to read and question fine prints in a home improvement contract can really pay off. For example, are you willing accept the term “Final payment may not be withheld due to minor defects in the workmanship or materials or other warranty related issues.” If a home improvement contract is large enough, consulting a lawyer can better help protect your rights.
Solar batteries?
Solar batteries ain’t cheap. A typical battery costs close to $10,000 in 2022. Installation and upgrade will add up quickly. Is it worth it? It depends on how often your area experiences power outages and how heavy your electricity use is during peak hours if with Time-Of-Use utility rates, assuming the property isn’t off grid. It’s easy to find blog posts discussing factors determining solar battery cost, comparison charts, or life expectancy. The battery health or degradation, on the other hand, is overlooked on the internet. We may replace our smartphones after the battery reaches 80% of its original capacity, but monitoring health of a solar battery isn’t easy. A performance warranty on energy retention can easily give you some peace of mind. Tesla PowerWall has a 10-year 70% retention limited warranty. LG battery has a 10-year 60% retention limited warranty.
Can your HOA deny solar panels?
It depends on the state you live in. In some states, HOAs cannot legally prohibit a homeowner from installing solar panels on their property, but reasonable restrictions may be permitted. It’s important to consider the aesthetic impact of the architectural modification nonetheless. An experienced local contractor will be able to help you navigate with your HOA.
Electricity company policies
It’s best to understand the solar policies by your electricity company before you pull the trigger. This will likely affect the size of the system you choose or whether to install batteries. The newer versions of Net Energy Metering (NEM) try to prevent homeowners from selling electricity to them. Another thing to watch out for is the baseline credit. Southern California Edison’s Time-Of-Use customers get a baseline credit [link1] up to their monthly baseline allocation. Once you go solar, instead of getting such baseline credit, you actually have to pay a charge of the baseline electricity delivered from your solar panels to the grid. That is about $25 a month in 2022 on top of the nonbypassable charges. This is another way of electricity companies encouraging homeowners to install a system slightly smaller than the usage.
Cost
Most home solar calculators or sales reps estimate the system size, savings and payback period. Here are a few more things you can do to have a better understanding of the net cost or ROI.
- Ask the sales rep to assume an x% increase of electricity bill a year in the calculation
- Estimate the home value increase
- Re-calculate years to break even, 10-year and 15-year ROI.
To me, going solar is a no-brainer. The sooner you go solar, the larger tax credit you get. A home solar system is a legitimate home improvement, and the home value increase is higher than the cost even after depreciation. There are also options for financing or rental.
Most reputable contractors have competitive pricing. The price point is reflected by the products they choose for the system. A contractor that sources inferior panels and cheaper mounting hooks offers a cheaper system.
| Full HVAC | No Solar | w/ Solar | SCE Remain | Savings |
| Year 1 | $1680 | $9,620 | $288 | -$8,228 |
| Year 5 | $9,099 | $9,620 | $1,560 | -$2,080 |
| Year 6.5 | $12,196 | $9,620 | $2,091 | $485 |
| Year 10 | $20,170 | $9,620 | $3,458 | $7,093 |
| Year 15 | $33,640 | $9,620 | $5,767 | $18,253 |
| Year 20 | $50,027 | $9,620 | $8,576 | $31,831 |
What Combination is Right for You?
Each solar contractor has their own recipe of the system and the service. They may be able to accommodate you with your preferred brands to some extent but not all. Tesla and SunPower offer packaged deals – the only thing you can customize is system size or battery. Tesla used to use Q CELLS panels, simplified choices and process to lower cost. This means the customers have fewer options in a solar project in general than other home improvement projects. Here are a couple tips to help with the personalized decision making.
- Identifying the components of the system that are most important to you. This should narrow down contractors offering the system design and brands you want very quickly.
- Is service also critical to you? Are you willing to pay a little more for a better 25-year service? Would you spend more time vetting the contractor prior to committing?
Choose wisely. Enjoy your home solar power system peacefully.
