Questions to Ask a Solar Company Before Signing a Contract

Questions to Ask a Solar Company Before Signing a Contract

Essential Questions to Ask a Solar Company Before You Sign

Signing a solar contract is a major financial decision, but many homeowners rush in without the right information. You’re in the right place because asking the correct questions now prevents costly surprises later. This guide provides the exact questions you need to vet a solar company thoroughly, ensuring you get a reliable system that delivers promised savings for decades.

Company Credentials and Track Record

Your first goal is to verify you’re dealing with a legitimate, experienced installer. Start with these foundational questions.

Are you licensed, bonded, and insured for work in my area?

Direct Answer: They must provide proof of a current state contractor’s license, liability insurance, and workers' compensation. Never proceed without this.

A valid license confirms they meet local competency standards. Insurance protects you from liability if a worker is injured on your property. Bonding offers financial recourse if the job is abandoned.

How many years have you been in business, and can you provide local references?

Direct Answer: Look for a company with several years of operational history and insist on speaking to past customers in your neighborhood.

Longevity suggests stability. Local references are crucial because they indicate familiarity with your specific utility company, permitting process, climate, and roof types. Ask references about their installation experience and system performance.

What are your certifications (e.g., NABCEP)?

Direct Answer: Prefer installers with North American Board of Certified Energy Practitioners (NABCEP) certification for key staff.

NABCEP is the industry’s gold standard, requiring rigorous training and testing. It signals a higher level of technical expertise compared to a basic contractor’s license.

System Design, Equipment, and Performance

This section ensures the proposed system is optimally designed for your home and uses quality components.

How did you calculate my energy needs and system size?

Direct Answer: They should base the design on 12+ months of your utility bills, not just an estimate.

A proper energy audit considers your historical consumption, future changes (like an EV), and local weather patterns. The system should aim to offset 90-100% of your usage, not be arbitrarily oversized.

What specific panel and inverter models are you proposing, and why?

Direct Answer: Get the exact make, model, and specifications in writing. The “why” should relate to your roof space, budget, and performance goals.

Not all equipment is equal. Ask about panel efficiency, degradation rates, and warranty terms. For inverters, understand the choice between string inverters and microinverters/optimizers, especially for roofs with partial shading.

What is the estimated annual energy production (kWh) of this system?

Direct Answer: Request a detailed production estimate using industry-standard software like Aurora or HelioScope.

This number is the basis of your savings. The estimate should account for your roof’s orientation, tilt, and local sun exposure. Compare it to your annual usage to check the proposed offset.

Who obtains the permits and manages interconnection with the utility?

Direct Answer: A full-service installer should handle 100% of this process.

Permitting and interconnection are complex, time-consuming steps. A reputable company manages them from start to finish, keeping you informed of timelines.

Financials, Contracts, and Warranties

This is where you protect your investment. Scrutinize every detail and assumption.

What is the total cash price before any incentives?

Direct Answer: Demand a clear, line-item breakdown of the total system cost.

Always discuss the gross price first. This allows for an apples-to-apples comparison between quotes. The breakdown should include equipment, labor, permits, and any other fees.

What is the projected payback period and total lifetime savings?

Direct Answer: Request the detailed calculation behind these projections.

Ask what assumptions were used: utility rate inflation, system degradation, and maintenance costs. Overly optimistic projections are a red flag. A credible company uses conservative, justifiable numbers.

Can you explain the financing terms in full, including APR and fees?

Direct Answer: If financing, you must understand the annual percentage rate (APR), term length, and any dealer or origination fees.

A low advertised interest rate often hides high upfront fees rolled into the loan amount. Ask for the “true cost” of the financing and compare it to the cash price. Calculate the total interest paid over the life of the loan.

What warranties are included, and who honors them?

Direct Answer: You need clarity on three separate warranties: equipment, workmanship, and production.

Equipment warranties (25 years for panels is standard) are from the manufacturer. Crucially, ask about the workmanship warranty (10+ years from the installer) covering installation errors. A strong production guarantee ensures the system meets a certain output level.

The Installation Process and Post-Sale Support

Understanding the project timeline and long-term support prevents frustration.

What is the projected timeline from signed contract to system activation?

Direct Answer: Get a written schedule outlining key phases: design, permitting, installation, inspections, and utility interconnection (PTO).

A typical timeline is 1-4 months. Delays often occur at the utility stage. A professional company provides realistic dates and proactively communicates any changes.

Who will be my point of contact during the project?

Direct Answer: You should have a dedicated project manager or coordinator, not just a salesperson.

Clear communication channels are essential. Know who to call for scheduling updates, technical questions, and post-installation support.

What happens if my system underperforms?

Direct Answer: The contract should outline a specific performance monitoring process and remediation steps.

Most companies provide an app to monitor production. The agreement must state what constitutes underperformance (e.g., falling 10% below estimate) and what they will do to fix it, such as adding panels or repairing components.

The Solar Contract Vetting Framework

Use this practical checklist during your final review before signing any contract. Every item should be clearly addressed in the document.

  • Parties & Property: Is your name, address, and the company's legal business name and license number correct?
  • System Specifications: Does it list the exact makes, models, quantity of panels, inverters, and estimated annual kWh production?
  • Total Price & Payment Schedule: Is the total cash price, payment amounts, and due dates (e.g., deposit, upon completion) explicitly stated?
  • Financing Annex: If applicable, is the loan agreement attached with full terms, APR, and total financed amount?
  • Warranty Summary: Are all warranty documents attached, with clear start dates, coverage periods, and contact information for claims?
  • Timeline & Responsibilities: Does it include a project schedule and confirm the installer handles permits, inspections, and utility paperwork?
  • Removal & Reinstallation Clause: If you need a new roof, what are the costs and process for removing and reinstalling the solar system?
  • System Ownership & SRECs: Does it confirm you own the system and the associated Solar Renewable Energy Credits (SRECs), unless otherwise transferred?
  • Cancellation Terms: What is the period for your "right to rescind," and are any cancellation fees disclosed?

Key Takeaways and Your Next Step

Asking these questions transforms you from a passive consumer into an informed buyer. The core principles are:

  • Verify credentials and local experience first; never skip due diligence.
  • Insist on a system design based on your data, not a generic sales pitch.
  • Understand the total cash price and all financial assumptions independently.
  • Demand clarity on warranties—especially the installer's workmanship guarantee.
  • Use the Contract Vetting Framework to ensure nothing is missing before you sign.

Your clear next step: Schedule meetings with at least three reputable local installers. Use this list of questions as your script, and take detailed notes on their answers. Do not sign any contract until you can compare their proposals side-by-side against these criteria.

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