Protecting your solar investment: How to go solar with confidence

What would you do if you could save tens of thousands of dollars on your electric bills over the next 25 years? That's the situation most homeowners find themselves in when they decide to go solar—a decision that requires careful consideration and research to get right.

Going solar is a significant investment, typically costing around $29,649 before any available incentives for an average-sized 12 kilowatt (kW) system. While solar will make financial sense for most homeowners—delivering an average of $57,000 in savings over 25 years—choosing the right installer and understanding what you're signing up for is crucial to protecting that investment.

Solar is a complex technology, and while you don't need to be an expert to benefit from it, there are plenty of stories out there about bad actors looking to take advantage of solar shoppers. Using your judgment and being thoughtful is key to making a smart, protected solar investment.

For those contemplating switching to solar, understanding your options and the red flags to look out for is crucial to making a confident, secure investment.

Disclaimer: This article is intended to provide an informational overview of consumer protections for interested homeowners. It's not designed to serve as official financial guidance. If you're interested in installing solar products, use your best judgment and seek advice from a licensed professional before making any purchase or investment.

Just as you would for any major purchase, make sure to review all of the fine print regarding what you're paying for, what work your installer is committing to doing, what warranties cover your purchase, and what agreements and contracts you're committing to with your solar panel system.

Find a reputable solar installer

Choosing a reputable, vetted, and well-reviewed installer is one of the smartest ways to minimize your risk when going solar. While there are no guarantees, you can find out if the installer has a solid track record by reading reviews and speaking to neighbors or friends about installers they've used and recommended. You can also review the solar equipment you're quoted, including solar panels and inverters, to understand their efficiency, ratings, and warranties.

To make sure you're getting the best price possible, it's also important to solicit quotes from multiple solar installation companies in your area and compare them. For example, if a quote is significantly higher or lower than the others, ask the company to explain why. A reputable installer will be able to back up their quote.

Solar sales red flags to avoid

Be cautious of any company advertising "free" or "no cost" solar. If something sounds too good to be true, it probably is. These phrases often promote solar leases or power purchase agreements (PPAs). While leases and PPAs are a great way to go solar with no upfront costs, you'll still make monthly payments. Whether these financing options make sense for you depends on your financial priorities—leases and PPAs preserve capital flexibility and typically offer immediate savings, but often deliver lower lifetime savings than buying your system with cash.

Avoid working with companies that "guarantee" specific savings. While it's standard for solar panel manufacturers and installers to ensure a certain amount of electricity production (often backed by warranties), no one can predict exactly how much you'll save on electric bills because electricity rates fluctuate.

Similarly, be wary of anyone guaranteeing you'll qualify for the full value of any tax incentives you might qualify for. Whether you'll benefit from tax credits depends on where you live and your personal financial situation. It's always best to consult a tax professional to understand which incentives you can claim.

While solar energy is still growing compared to industries like credit and banking and other larger, more established industries, there is still some government oversight of the solar industry to help you feel confident about purchasing solar. Some of these agencies include:

Some states have solar consumer protection regulations

Some states also have rules to protect their residents when going solar. Arizona, New Mexico, and Utah have passed mandatory rooftop solar disclosure laws, while Minnesota and Maryland have instituted mandatory community solar disclosure regulations. CESA also outlines specific contract disclosures by state for both rooftop and community solar.

Solar industry safety, workplace, and quality standards

In addition to the agencies helping protect customers in the solar industry, there are also safety and quality standards in place to protect you as a consumer. These include things like electrical codes, oversight, certifications, and residential codes for solar systems. The Institute for Building Technology and Safety (IBTS) also provides guidelines for the solar industry for quality management and assurance issues.

With recent changes in the solar industry landscape, many homeowners are understandably concerned about what happens if their installer shuts down.

The good news: Even if your solar company goes out of business, your equipment won't be stranded. Most major solar equipment comes with manufacturer warranties that typically last 10 to 25 years, with the best covering up to 40 years. That means your panels, inverters, and batteries will still be covered if they malfunction within the warranty timeframe.

In many cases, another company will step in during the bankruptcy process to purchase existing customer contracts and assume responsibility for servicing them. EnergySage has also heard from multiple installers planning to expand their operations and maintenance services to support homeowners who end up with orphaned solar panel systems from shuttered companies.

If your original installer goes out of business, you can also look for local companies that offer standalone service and repair.

Rushing into an installation that's not right for your property's energy needs will just end up costing you more in the long run. With planning, preparation, and the right installer, you can move forward confidently—but it's okay to take a step back if you're feeling unsure or pressured at any point. It's more important to make an informed, confident decision than to rush into one you might regret when it comes to a valuable investment like solar.

Solar remains a smart long-term investment for the average homeowner. Most homeowners save around $57,000 over 25 years, with savings ranging from $37,000 to $148,000 depending on location, electricity rates, and system size. Starting the solar process now can help you lock in lower electricity costs for decades to come.