How to Choose a Solar Panel (Photovoltaics) Vendor

With current energy costs, it is natural to consider alternative energy sources like solar panels–also known as photovoltaics—as a popular and accessible option. As with any undertaking that involves money, property, and the power grid, it is essential to evaluate all relevant factors before making a purchase or signing a contract.

While it may be technically possible for some people to install their own solar energy system, it is generally not recommended due to the skills needed to install it properly, the potential for damage to the property if installed incorrectly, and the safety hazards associated with installation. Thus, you will most likely need to select a "Vendor" to carry out your installation for you.

But who should you choose?  If you type "Solar Panels for Purchase" into a search engine, over 76,000,000 results appear. This article discusses some of the important issues you should consider when deciding who to hire to install a solar energy system on your home or farm.

General Considerations

The most important thing to remember is to obtain several quotes from different installers. Do not simply go with someone because they showed up at your front door with a good sales pitch. They might be a great installer, but looking at several possible installers (at least three are recommended) will go a long way in helping you see how they stack up. 

Parts for farm or home systems can be purchased at the local hardware store, online, or through a vendor. However, the costs of solar extend beyond the purchase of a panel. When installing solar, be aware of the following:

Vendor Experience and Professionalism

• Are there other systems installed in the area with owners you can talk to about their systems?
• What liability coverage do you carry?
• How long will the installation take?
• When will the installation be done?

System Installation Costs

• What equipment is included in the price quote? Does it include all panels, racking, hardware, wires, and inverters? Is the system inclusive of everything needed for energy production and storage?
• Wiring – is additional wiring needed for the final location?
• Fees – what permits, inspections, or approvals are needed?
• Tools – are special tools required?
• Warranties – what warranties are included? Do they cover parts and labor for replacement if the equipment fails prematurely?

Location and Production

How/where will the panels be installed for maximum production? What checks can be carried out to ensure that land preservation regulations don't prohibit or restrict the use of solar on the site?

Proprietary Equipment

Is the equipment proprietary? Are replacement parts readily available? Can the equipment be repaired by any repair person? What are the options for expansion?

Local Governance

What local ordinances or laws regarding solar are in the area? Municipalities and townships have become increasingly involved in regulating the placement of solar. Check for any new regulations as proposals are continually moving through the legislature. If you are considering solar for your individual use on a barn, out structure, or house, be aware of any local regulations. For example, the fire code may require a walking path on the roof for rooftop installations.

Maintenance

How is ongoing maintenance handled? What is the cost of a service call? How often do the systems need to be repaired?

Structural Capacity

This term is used frequently regarding solar panel installations, and more specifically for rooftop installations. What structural analysis do you do on the building (if it is a rooftop system) to ensure that it can handle the added load of the solar panels? Weight is not the only consideration, however. Snow and wind will also be a factor eventually.

Excess Production

What, if any, options are there for excess production? Can the power be sold to a local utility company?

System (Purchase)

While the system and site consideration are the same whether a purchase or lease, vendors may bring other influencing factors to the table that may affect decision-making:

• Financing - Most often, the outright purchase of any solar system will cost less than one under financing. Use the cost of the financing to determine if the installation will provide economic benefits.
• Payment Terms – what terms do you require for payment?  Shy away from vendors who request full payment before the project is complete and operational. 

No Cost Solar Systems (Lease options)

No-cost solar systems are typically solar leases or solar power purchase arrangements. The "cost" or "free" aspect means that there is no upfront money from the landowner. The system is installed, and the company will then charge the purchaser for the energy produced (usually at a lower price than they would have paid if the solar power system were not in place). Consider the following:

Contract Requirements

• Can the system be sized properly to meet the demand needs or terms of the contract?
• What penalties are associated if demand is not met?
• Who takes care of maintenance over the lifetime of the project?  Who is responsible for removing the system at the end of its useful life?

Time

• How long is the lease and is the lease deed to the property?
• Does this make the property attractive if sold?

Economic Benefit

• Will the energy produced provide full cost savings?
• What happens if excess power is produced?
• What happens if too little energy is produced?

Keep in mind that high-pressure sales tactics may be used by a salesperson to encourage a quick turnaround on a contract. This is always a warning to stop and take a step back before signing anything. Get independent help to evaluate the sale, whether that be calling your local Extension office or reaching out to an attorney such as Penn State's Center for Ag and Shale Law.

Tool for Evaluation

A good tool to evaluate your home energy and compare options is the Home Energy Saver website. This is an interactive do-it-yourself home energy assessment tool, combined with extensive decision-support content. The site is developed and maintained by the Lawrence Berkeley National Laboratory with sponsorship from the U.S. Department of Energy (DOE) and others. The evaluation tool can be found online.

Key Take Away:

Take time and evaluate your options before entering any contract. Penn State Extension is here to provide resources to assist in the decision-making process. Contact your local Extension office or find more information at the Extension Energy Team website.