Buyer's Guide: How to buy a clean energy system

Process - How to select and buy a clean energy system for your property

Are you thinking about buying a clean energy system for your property but don’t know where to begin? Here’s a list of simple steps to get you started, followed by more detailed instructions.

Step 1: Estimate your property’s energy costs (the cost of heating, cooling and powering your property).
Step 2: Think about your goals for your clean energy system. Do you wish to maximize your savings? Minimize your environmental impact? Make a list of your goals and prioritize them.
Step 3: Determine how much you can budget toward the purchase of your clean energy system. Make sure to consider financing options to supplement your budget, and take into account the amount you will pay to a lender each month.
Step 4: Determine which technology or technologies are best suited to your property, which will deliver the most favorable financial returns or will provide the maximum environmental benefit, depending on your preferences and goals.
Step 5: Research the best brands for the technology or technologies that are best suited to your property. Become informed about the products they manufacture.
Step 6: Choose a high quality, local contractor/installer for the technology and brands you have selected. These installers will also educate you about all of the incentives and rebates that are available in the community where your property is located.
Step 7: After your system has been installed, actively manage your system by tracking your performance, identify and troubleshoot issues and immediately correct them. By making sure your system is working optimally, you’ll be optimizing the financial and environmental benefits that it produces.

Step	Task	EnergySage.com Resource
1.	Estimate your past energy costs. Collect your electric, gas and/or oil bills for the past 12-24 months. Determine or estimate what you spent to heat, cool and power your property Get a feel for where your energy costs are heading. Generally, energy prices increase between 5% & 10% every year. . National average over last 10 years: • electricity - 6%/year, • heating oil 9%/year • gas at 5%/year	Check our tips on estimating how much you spend to heat, cool and power your home or business. [LINK]
2.	Identify and prioritize your objectives for investing in a clean energy system Know why you are investing in a clean energy system, what’s important to you, and what you hope to accomplish. This will guide your decision process.	Complete the EnergySage Wizard and find out which technology and system options are recommended specifically for you.
3.	Determine which technology is most appropriate for meeting your objectives, the most suitable for your property, and the best in terms of the financial the financial and environmental benefits it will yield	Complete the EnergySage Wizard & get customized recommendations See what systems are best for your property and deliver the best financial returns
4.	Estimate your available project budget Understand what kind of incentives and rebates are available Understand various financing options Select 2-3 financing companies and ask them for proposals	Most technologies are eligible for tax incentives and in some cases, cash rebates and subsidized loans. Refer to our list of incentives & rebates Refer to our list of financing options and financing companies available to you
5	Research the best brands for your chosen technology (s). Become informed about the products they manufacture Select 2-3 brands	Check our database of manufacturers to identify which brands represent the best value Refer to out list of installers to find out who installs the brands you have selected
6	Choose a high quality, local contractor/installer for the technology and brands you have selected. These installers can help you understand all available incentives and rebates Select 2-4 high-quality installers and get project proposals from each of them. Compare prices and the quality of the products, brands, and services the installers offer Hire a high-quality installer	Search our database for qualified, experienced local installers. Check their profiles, see how much experience they have and read consumer reviews. Refer to tips on “Selecting an installer” Refer to tips on “What to Look for in a Pricing Proposal”
7	Actively manage your system by tracking your performance, trouble shoot issues and immediately correct.	Read our summary of monitoring systems, and how to use them to make certain your system is operating optimally.

SELECTING AN INSTALLER

It is important to select a high quality installer for your project. Installers offer a selection of brands, will vary in terms of prices offered, and may also provide access to financing.

We recommend that you begin by selecting the brands of clean energy equipment that interest you. Installers generally offer a limited number of brands, so your choice of brand will narrow your search for an installer. If you will need to finance your system, and haven’t secured financing on your own through a bank or other lender, then determine which financing option you prefer before you select an installer. If you want the installer to help you finance your system or find a lender for you, that will further narrow your choice installers.

Evaluation Criteria	Questions to ask
1. EXPERIENCE / SERVICE RATINGS Choose an installer that has experience installing the system that you have chosen, as well as its intended application. Determine the consumer satisfaction ratings associated with the vendor you are evaluating Research service ratings within the EnergySage Community Solicit word-of-mouth feedback from other customers. Check with the Better Business Bureau	How many installations have you completed? Were they for business or residential use? Can you provide references? (Bear in mind that these references are selected by the vendor, and were provided because the installer knows that they will be favorable references.) Are you bonded and insured?
2. HIGH QUALITY, COMPREHENSIVE PROJECT & PRICE PROPOSALS The project proposal should include all pertinent information regarding the system under consideration, including the details of the system and components you are installing, the investment cost, and the return on investment.	Please refer to EnergySage What to Look for in a Pricing Proposal
3. REBATE AND INCENTIVE PROCESSING Regulatory requirements for filing for state and federal rebates including selling Renewable Energy Credits (REC) vary	Will the installer fill out the required paperwork or will you? How will you get the information you need to fill out the required forms? When can you expect to receive the paperwork? Will you receive the rebate or incentive, or does the installer want you to assign it to them so that they can net it from the price of the system?
4. TRACKING AND MONITORING SERVICES Tracking ensures that your system is operating at peak efficiency at all times. Many providers will provide this service either free of charge or for a fee.	What kind of tracking device will be installed with my system? Do you provide tracking and monitoring services? What costs are associated with these services? What is the duration of the monitoring contract? What, exactly, will be monitored? How is the performance data from my system collected? How frequently is it monitored? How are problems identified?
5. INSTALLATION	How much time will elapse between the date I sign a contract with you, and the date you will complete the installation? How will you install (mount) the system in (on) my property? Please itemize all of the equipment you will install, and where it will be located.
6. POST SALE SERVICES	What warranties / guarantees are in place to cover the installation and the equipment? If the system is roof mounted, does the installer provide a guaranty/warranty/insurance policy in the event a leak results from a roof penetration? If there is a problem with the equipment, who do I call, the installer or the manufacturer? Do you offer an annual maintenance / service contract? What does it cover? What are the maintenance requirements of my system?

COMPONENTS OF A PROJECT PROPOSAL / ESTIMATE

A well laid-out project proposal is important for you to understand and evaluate potential alternative energy solutions for your home or business. We have identified some key components that should be included and why they are important:

1. Size of the system: it will allow an “apples-to-apples” comparison of pricing proposals from various vendors. Also, efficient system size is a key factor in optimizing the economics of your system.

2. Itemized list of components – including brands, warranty information and even country of manufacture. Brands vary significantly in quality and performance so you will want the ability to identify brand-specific issues and compare vendor options. You will want to evaluate the viability of the manufacturer, and their ability to honor the 10-25 year warranties. You may also wish to discuss equipment choices with your installer--for example, if you’re installing a photovoltaic system you may want to have microinverters installed on each panel, rather than a single inverter.

3. Location of the installation site and installation type: Where your system will be located (e.g. solar panels on the roof, on the ground) and the particular type of system (e.g. solar panels mounted and fixed or, alternatively, able to track the sun) are key determinants of your system’s performance.

4. Financial information:

Key Line Items	Why they are important
I. Total Upfront Gross cost of the system, itemized by: a. Key component costs b. Peripheral component costs (e.g. pipes, insulation, etc.) c. Installation costs d. Other misc. costs	Allows for “apples-to-apples” comparison of multiple proposals and provides you with the information necessary for you to negotiate prices
II. Less: Available incentives and rebates	Allows you to maximize total savings available; help identify which incentives and rebates you are able to use
III. Net System Costs (I minus II)	This is your total out-of-pocket expense. You will need to compare this to your project budget.
IV. Total annual cost savings: a. Direct energy savings b. Value of renewable energy credits and/or future carbon credits	This information lets you know how much money you will save each year post-installation as well as the potential revenue value of any applicable renewable energy credits. This information, as well as the determination of your payback period, will help you to prioritize individual technology and product options based on your return on investment. This will also help you to determine whether the value of the energy you are generating exceeds the amount of your loan payments, if you have to borrow in order to finance your system
V. Annual Returns on Investment (current year and estimates based on projected changes in energy costs)	This is a measure of the value of your investment based on your costs and the associated savings and revenue generation potential.
VI. Payback period: a. Current energy cost b. Projected energy costs	This information lets you know, based on your savings and revenue generation, when you will recoup your initial investment.
VII. Total savings over the life of system	This information, as well as the determination of your annual cost savings, will help you to prioritize individual technology and product options based on your return on investment.