How Accurate are Solar Estimates?

Are you considering going solar? One of the first steps is getting a solar estimate. A contractor will come to your home and tell you approximately how much the installation will cost.

The key word here is ‘approximately’. Many of us know contractor estimates are not always accurate. But how accurate are they?

Solar Estimate Accuracy

There is no statistical percentage that dictates how likely it is that your estimate will be accurate. However, a trusted provider will do all they can to protect their reputation. They will make your estimate as accurate as possible to avoid nasty surprises.

However, several factors, expected and unexpected, can increase costs.

How Do Solar Installers Calculate Estimates?

Solar installers consider several factors when calculating estimates. A reliable contractor will do their best to accurately predict all factors, but unforeseen incidents can increase costs. The following sections will review what’s involved so you understand why your estimate and final cost may vary.

Size

A solar system’s size does not refer to its measurements in feet. It refers to its capacity. Most solar installations offer a capacity between 250 and 400 watts.

Your estimate should tell you the capacity of your solar system. If it only states the modules, you can’t determine how much electricity it will produce.

Add the number of solar modules and multiply the result by the wattage to get the system size. The contractor will give you an accurate estimate regardless of how they calculate the size, but this equation will provide a standard so you can compare estimates.

Will Size Affect My Final Costs?

Size rarely contributes to changes in price. Technicians should provide accurate measurements ensuring minimal surprises.

The Quality of the Equipment

Different contractors work with different equipment. A contractor that uses quality equipment may charge more to cover the cost of goods. However, these panels are typically more efficient and will save you money.

Do some research to learn about different solar panels and their costs. This will help you determine if your contractor is charging a fair rate.

Solar panels also fall into two categories, monocrystalline and polycrystalline. Monocrystalline panels are more efficient, longer-lasting, and therefore more expensive. Polycrystalline panels are less efficient and may not last as long, but they are more affordable.

Remember, you get what you pay for.

Will Quality Affect My Final Costs?

The quality of equipment should be a constant. Technicians typically source equipment from the same manufacturers and know the costs. The only issue leading to fluctuating prices could be a recent price change.

The Amount of Equipment

Solar panel installation requires panels, inverters, charge controllers, mounting hardware, wiring, and a DC high-voltage probe. The contractor will also use installation equipment like a power saw and flat pry bar. If you have a large roof, you will need more panels and equipment, and your estimate will be higher.

Will the Amount of My Equipment Affect My Final Costs?

Contactors will generally know how many panels and inverters you require. They should also have all the equipment they need for installation.

In rare cases, they may require additional mounting hardware or wires. These additions can increase costs somewhat, but the difference should not be alarming.

Clients may also choose to add equipment which can increase costs. For example, the customer may decide to add battery storage which can increase costs. The contractor may make a separate estimate for the storage system, or update your existing estimate to add the unit’s final price. 

Permits

Solar installations require permitting. You may need permits for building, zoning, interconnection, and solar voltaic.

Will Permits Affect My Final Costs?

Your solar permitting cost should be predictable. However, changes in city regulations could affect expenses.

In any event, cities typically keep permitting costs under control to promote solar in their area.

Roofing

When contractors conduct their estimate consultation, they will inspect your roof and tell you if you need a roof replacement before installation.

Asphalt roofs that are 5-10 years old may require a replacement. These roofs typically last 30 years. That means it may require a replacement before your solar panels wear out.

If your roof deteriorates under your panels, the panels will need to be removed before the replacement takes place adding $1500 to $6000 to the cost.

The roof replacement itself will cost around $30,000.

Additionally, certain roof types are not best for solar. For example, flat roofs may not capture sunlight well. Your installer may need to add a bracket, increasing labor and material costs.

Steep roofs also make an installer's job tougher. Roofs with obstructions may be difficult to work around, and installers may need to work harder to ensure sunlight hits the panels.

Will Roofing Costs Affect My Final Costs?

Your contractor may quote you a certain price considering the difficulties they may encounter during installation. However, they may encounter other unexpected challenges that add to costs. The element of the unknown should always be accounted for.

Labor

Solar teams typically charge a per-hour fee for labor.

Will Labor Affect My Final Costs?

Contractors may take longer to complete a task if complications arise adding to labor fees.

Complications are most likely to occur during installation due to unforeseen roof-related issues. Contractors may find that roofing structures are not as solid as they anticipated. Or they may notice obstructions they didn’t think would be an issue at first.

If they encounter significant issues, they may need to pause work for roofing repairs which could significantly increase labor costs.  

Tree Trimming

Your contractor may recommend you trim or remove nearby trees or undergo other measures to ensure your solar panels capture optimal sunlight and power your home efficiently.

Will Tree Trimming Affect My Final Cost?

In most instances, your solar contractor will not provide tree-trimming services so they should not be included in your solar installer estimate. A third-party contractor, typically a landscaping company, should provide these services. The fees will not affect your solar installer estimate but will increase overall costs.

Tree trimming or removal will make the job more expensive, but it will also make your system more efficient, so you save more on your energy bills.

System Monitoring

Most contractors will offer system monitoring which provides valuable information about your system’s performance.

Will System Monitoring Affect My Final Costs?

unexpected fees. The provider should offer a flat rate based on their service offerings. However, that rate can fluctuate over time.

Company Experience

You may pay more for company experience. Companies with a positive industry reputation may charge more for installation services. However, they tend to work more efficiently which can reduce labor charges and may even help you save more on your energy bills.

Will Company Experience Affect My Final Costs?

Company experience could affect your final cost. A reputable company is less likely to offer a nasty surprise when you receive your final bill.

Other Factors That Affect Costs

An inaccurate estimate can lead to an unwanted surprise when you receive your final bill. However, other factors can affect how much you pay for your system. You must consider these expenses when budgeting for your installation.

Interest

If you choose to finance your panels, you may incur interest rates that add to your final costs. Interest rates vary. Some companies even offer limited-time free financing. Consult with the company or their financial institution to learn how much you will pay in advance.

Taxes and Rebate

Interest adds to expenses, but you may get some of your money back through taxes and rebates. The Federal Tax Credit for Solar means homeowners who install solar can get 30% of that money reduced from their tax returns. Many states also offer local incentives and rebates.

Energy Savings

Your solar panels will save you money on your electricity bill further reducing overall costs.

Estimating How Much You Will Save

A contractor will provide two estimates before beginning work- an estimate of how much your solar installation will cost, and an estimate of how much you might save on your electricity bill after installation. So, how accurate is this other solar production estimate? It depends on the contractor’s tools and the factors they consider when auditing your home.

For example, the contractor may:

• Use Modeling Software: Advanced modeling software provides more accurate estimates.

• Look at Your Utility Bill: The contractor should look at your utility bill to determine your average electricity use and ensure the system is sized to meet your usage demands.

• Conduct a Home Energy Audit: A complete audit supports accuracy.

• Consider Shade: The contractor should consider trees and other sources of shade that may reduce your system’s efficiency. The estimate should reflect energy savings with and without shade removal.

You can ensure your estimate’s accuracy by requesting various estimates from different contractors. The savings should be similar. If some estimates seem much higher or lower than others, they are likely inaccurate.

Avoid using contractors who provide inaccurate estimates of energy savings. They may lack skills in other areas.

What If a Contractor Tries to Rip Me Off?

A contractor should consult with you every step of the way. They should let you know about updates that could impact your final cost. However, there are instances when a contractor will hand you a bill much higher than the agreed-upon estimate.

In these instances, your first course of action should be to try to work something out with the contractor. Try to negotiate a price that covers their expenses without breaking your budget. If they insist on a payment, withhold a portion of the payment until the issue is resolved.

In a worst-case scenario, consider filing a complaint with the contractor licensing board, or take the case to small claims court. Hold on to all documentation to ensure you build a strong case.

Solar America Can Protect You from Inaccurate Estimates

Solar is the way of the future. It saves the planet, reduces electricity bills, and offers energy access during a natural disaster. However, contractor issues, such as inaccurate estimates, are a risk you must take.

Solar America helps by connecting you with reliable contractors. Enter your contact information on our website. Our database will pull up the names of trustworthy solar contractors in your area.

We offer more than reliability. Contractors know they are competing for your business, so they offer the lowest possible rates.

Contact us when you’re ready to start your solar journey. We will get it headed in the right direction.