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Solar Resources

5 Tips For Negotiating Cost with Solar Contractors

Congratulations: You have done the research, determined that solar paneling is a good choice for your home, and have chosen a solar contractor after sifting through three or four estimates. Now it’s time to make your choice official and sign a contract with that solar installer, meaning it’s time to negotiate for a price.

If you walk away with only one thing after reading this, let it be this: This is your project and the contractor is working for you to install solar panels for your house. If at any moment during the negotiation or ensuing conversations, you feel unappreciated, disrespected, or otherwise neglected, it’s okay to walk away. A solar paneling installation is a worthy, and costly, investment—nothing and no one should push you to do anything you’re not completely comfortable with.

Knowing that, your goal now is achieving the best quality solar panel installation for your home and subsequently increasing its value in the long term. The first step is getting a good deal, both on the money you’re putting into the project and the quality you’re going to get out of it. Follow our tips to negotiate with your solar contractor and ensure the highest return on your investment.

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Push for Details About Solar Energy and Your Utility Bill

Your contractor is well versed in how your specific project is going to impact your electric bill, even if only in broad strokes. They’ve visited your house and assessed its potential, its needs, and its challenges. On this front, it’s in their interest to increase your solar energy output and maximize your home’s value in the process. The initial, ongoing, and continued success of their installation is paramount to their near and future prospects.

Why? The cost of solar installation has dropped more than 70 percent since 2010, according to data from Solar Energy Industries Association. In response, therefore, contractors have stepped up their game to compete in an increasingly saturated arena. It’s okay to ask about guarantees.

While it’s hard for a contractor to make exact promises, they can certainly settle on ranges and they can certainly explain the minimum outputs you can expect from your solar panel systems. If they can’t, remember the one thing we emphasized in the beginning—a solar installer unsure of their work should not be the contractor you choose for the job.

Ask Your Solar Contractor to Handle the Bureaucracy

Paperwork is a drag—your contractor might attempt to offload some of that labor onto you to keep their overhead low.

Be sure to ask precisely what forms, permits, and other filings are required and who is expected to handle them during your home improvement project. It’s okay to expect the contractor to handle the bulk of the work—after all, one of their value propositions is expertise in the field and local knowledge about getting the most out of local, state, and federal rebates and incentives.

When it comes to powering your home with solar energy, there’s a lot to keep track of. The Department of Energy’s Database of State Incentives for Renewables & Efficiency (or DSIRE), for instance, lists hundreds and hundreds of policies and incentives across the country, numbering anywhere from West Virginia’s 14 to Oregon’s 147. While we recommend you research and get acquainted with local policies, you are not the one who’s a professional, nor are such responsibilities yours. You’re paying good and hard earned money to a company to handle the solar installation—so ensure they do so.

Get Clarity on the Warranty, and Ensure It’s Part of the Price

You can always negotiate with your contractor on the price of a successful project before signing a contract. Discuss your budget with your solar contractor. Agree that any unexpected project expenses will be presented in writing to help you remain within your budget. Surprises, in other words, shouldn’t surprise you or your contractor, and they should definitely not surprise your investment.

Warranties will also impact your quoted cost. Most installers offer manufacturer’s warranties that protect you from faulty equipment. Some might offer additional guarantees for the installation, as well, covering potential damage to your house. Be sure the quoted warranty is clear in what it covers—and in what it doesn’t. Additionally, use the warranty as a bargaining chip.

A lower price should elicit a short length warranty and a higher price one that is longer. A 50-year warranty might be too long and a two-year warranty might be too short. The particulars of your system and your solar energy needs dictate these numbers more than anything else. Discuss them thoroughly with your contractor.

Reputation is Everything: Does Your Solar Installer Pass Muster?

Your business is their business—and while this solar installation could stay with you (or at least your house) for decades, it will also build, or continue to build, their reputation into a prosperous business.

A veteran solar panel contractor might be well endowed with repeat business and a booked schedule. Younger companies and contractors might be more willing to reduce their price and elongate their warranties for a solid project like yours.

Get to know local and trusted contractors through services like Modernize. The Modernize Contractor Checklist will help you vet a trusted contractor, so you can relax knowing your solar panel project is in good hands. You can access the interactive checklist by visiting the Modernize Homeowner Portal or by downloading it here.

Solar Panel Contractors Get Second Opinions—You Should, Too

The entire process of a solar panel installation is detail-heavy and involves a myriad of moving parts, from the fine print of your contract to the machinations of the installation itself—remember what we said about surprises?

Since your contractor has (literally) been around the block and has experience you might lack, be sure to consult close friends and family about the major steps of your journey. While we condone this type of support, homeowners have repeatedly told us through surveys and interviews that deciphering some of the deeper and more complex elements of their project left them seeking more professional support—which our homeowners found with Modernize.

If you walk away from reading this with just one more thing, let it be this: Your biggest friend in a solar contract negotiation could be a service like Modernize. Get in touch with us today to find out how we can help you.

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