Homeowners have increasingly begun to invest in solar panels as a means of conserving energy, reducing their carbon footprint, and saving on monthly utility bills. Tax incentives may be available for those who purchase solar power systems; many people even earn money from surplus power fed back into the power grid.
"The concept of solar energy is appealing; you will never have to worry about utility bills, and there's no smoke or noise pollution. But the reality is that many people can't afford the initial investment required to install a solar system on their house. Often homeowners find themselves pressured into signing deals without understanding the details.
Homeowners need to see that they are getting what they paid for and how much they will save. Homeowners may think they are saving money by going solar when most solar deals will pay off only after 30 years.
Would you invest in something to get your money back in 30 years when you know you will not be in the house for more than five? That's part of the problem."
Dmitry Lipinskiy, founder of Directorii
This guide will teach you how to identify and hire a reputable solar contractor. We'll also cover tips for what you need to know before hiring a solar company and how to identify the signs of a shady solar contractor and financing company.
Look For These 5 Things When Hiring A Solar Contractor
When hiring a solar contractor, experience and reliability are two key factors to consider. Before selecting a company, read reviews, check their portfolio, and look for signs such as these:
1. License: Solar contractors should be state-licensed, certified, and insured. Some states require solar installers to hold a separate, specialized license. Solar installations are classified as specialty work under general electrical or plumbing permits in most jurisdictions. Companies with valid specialty licenses can perform these installations.
2. Free estimation: They should be able to give you a comprehensive quote for your solar system and tell you what kind of system would work best for your home. A solar contractor will need to inspect your home to provide a complete and accurate free estimate.
3. Financing: Solar energy professionals should be able to answer questions about the financing process and help you find the best deal possible. Some solar installation companies offer financing options and referral deals that allow you and your friends to save money on solar panel installations.
4. Contract and payment: Solar installation companies should be transparent about their deals. They should always work with a contract, which should be signed only after reading it thoroughly and asking all your questions.
5. No pressure: Last but not least, when you work with a solar contractor, you should be given adequate time to review your contract and loan applications. You should be able to ask questions and discuss any concerns with the company representative.
The Solar Roof Game – How Financing Works
"Many finance companies are publicly traded corporations, so they need to offer loans at high-interest rates and have employees on the ground to sell those loans. They make it easy for sales representatives to authorize loans by giving them a lot of leeways. Salespeople are trained to pressure customers into making a decision. They sell a $130,000 solar roof that should cost only $40,000.
So what happens to the rest of that money? The sales rep will get a commission from $5,000 to $20,000. It's a good day for a sales rep!
In 2008, when there was a house market crash, one of the problems was that people who couldn't afford homes were getting loans they shouldn't have been getting. The same has happened in the solar industry in the last two years."
Dmitry Lipinskiy, founder of directorii.com
Video: Avoid These Solar Roofing Financing DEALS (Sunlight, GreenSky, GoodLeap, Brio Energy)
Watch this video to know what the Minnesota Attorney General had to say about Brio Energy and its shady solar financing deals and learn more about similar cases across the country.
This video will help you better understand what homeowners are getting from their solar deals, why some solar deals do not make sense for consumers, and why some contractors earn more than they should.
What Are the Signs of Scammy Solar Companies?
How can you tell if a solar company is reliable or not? There are a few signs to look out for. First, if a company asks for a large deposit before starting the work, that's usually a red flag.
Also, be suspicious of companies that make unrealistic promises about how much energy your panels will produce.
Another thing to remember is that high-pressure sales tactics are designed to take advantage of consumers. If you feel pressured into making a decision, say no and walk away.
Companies To Avoid:
These are companies we cannot recommend and therefore suggest that you avoid them when considering going solar:
- Sunlight Financial
- Goodleap
- Greensky
- Mosaic
- Brio Energy LLC
- Pure Solar Energy
- Clean Energy Educators
- Bella Solar Energy
- Total Solar Solution
- Brio Solar Energy
- Avolta Power
- Sunny Solar, Utah
Solar Financing Companies We Can Recommend
Few finance companies meet our high standards, but we can recommend several that we've worked with for years. You can trust these companies:
- Service Finance
- Enerbank
- Credit Unions
- Sungage
- Dividend
Directorii.com: Trusted Solar Installers and Solar Financing Companies
One of the best ways to find the best experts in the solar industry is to use Directorii. We list only licensed contractors and trusted solar financing companies in your area.
We vet all the contractors on our platform, so you can be confident that you're hiring a quality contractor who will fulfill all requirements. Register your solar panel installation project on our website to receive a $20,000 guarantee when you hire a verified contractor.
