By Seth Mansur
Solar Consultant Team Lead
When I am on the road and know I need a gas refill, comparison shopping is pretty easy with the sign on the road. The difference between $2.17 on the left side and $2.15 on the right is a no-brainer decision. Gas for our cars is just one of many decisions we make on a daily basis that is pretty easy to compare the different options. For something complex like a home renovation or solar installation, it can be a little more difficult to get the “apples-to-apples” comparison.
Having worked for a handful of local and national solar companies, I can tell you that different companies will use different calculations and different variables when creating quotes and proposals. This means you could get 3 different prices (and 3 different projected savings) for the exact same panels / system. It’s no wonder so many get confused.
Here are the top three variables that often vary between solar proposals from different companies:
Having worked for a handful of local and national solar companies, I can tell you that different companies will use different calculations and different variables when creating quotes and proposals. This means you could get 3 different prices (and 3 different projected savings) for the exact same panels / system. It’s no wonder so many get confused.
Here are the top three variables that often vary between solar proposals from different companies:
1. Shade - : If representatives from 3 companies analyze the tree in your backyard, you will likely get 3 different tree heights. Some companies may undersize the tree to make the shading appear to be less of an issue, while other companies use the exact height today. Personally, I recommend using a shade analysis from one surveyor and applying it to all bids for a project to get a uniform analysis.
2. Annual Utility Rate Increase - Depending on their product effectiveness and cost (i.e. payback period), solar companies will provide different forecasts for the rate your utilities will increase. . . and projections can range from 2 - 9%. Conservative economists predict 3.7% - which is probably a safe number to ask for your proposals to be geared towards.
3. Length of Financial Return - Obviously each company wants to make themselves look best. One way they do this is by presenting the number of years that you see benefits. . . .and then altering the length. So one company will say you save $15,000 after 15 years; another one will say you save $30,000 after 30 years. Obviously, the one using a longer time period will look better! However they are both the same (or at least similar in most cases). 20 years tends to be the industry average and a suitable time period to determine accurate ROI.
Want even more help comparing quotes and vetting installers? Learn more about how Intelligen.Energy does it and other services we offer as free solar consultants.
2. Annual Utility Rate Increase - Depending on their product effectiveness and cost (i.e. payback period), solar companies will provide different forecasts for the rate your utilities will increase. . . and projections can range from 2 - 9%. Conservative economists predict 3.7% - which is probably a safe number to ask for your proposals to be geared towards.
3. Length of Financial Return - Obviously each company wants to make themselves look best. One way they do this is by presenting the number of years that you see benefits. . . .and then altering the length. So one company will say you save $15,000 after 15 years; another one will say you save $30,000 after 30 years. Obviously, the one using a longer time period will look better! However they are both the same (or at least similar in most cases). 20 years tends to be the industry average and a suitable time period to determine accurate ROI.
Want even more help comparing quotes and vetting installers? Learn more about how Intelligen.Energy does it and other services we offer as free solar consultants.
Leave a Reply.