The safest way to buy solar panels is to purchase a complete, professionally designed solar PV system from a licensed and insured installer after comparing at least 3 written quotes. Compare expected annual electricity production, total installed price, utility rules, warranties and financing terms. A low monthly payment or high panel wattage does not necessarily mean a better deal.
This guide is for homeowners in the United States.
Solar Panel Buying Guide at a Glance
| Decision | Recommended approach |
|---|---|
| What to buy | A complete solar PV system with panels, inverter, racking, wiring, monitoring and installation |
| How many quotes | At least 3 detailed written proposals |
| Main comparison metric | Total installed cost and expected annual energy production |
| Financing | Cash usually has the lowest total cost. Compare the full repayment cost of solar loans |
| Lease or PPA | Review escalators, transfer terms and purchase options before signing |
| Federal tax credit | As of September 25, 2026, the federal Residential Clean Energy Credit is not available for property placed in service after December 31, 2025 |
| Battery storage | Add a battery when backup power or local utility rates justify the cost |
| Biggest warning sign | "Free solar," government impersonation or pressure to sign immediately |
1. Check Whether Your Home Is Suitable for Solar Panels
Before requesting quotes, review your roof, shade conditions and household electricity use. A solar installer should also inspect the electrical system and confirm local requirements.
The assessment should cover:
- Roof age, condition and remaining useful life
- Roof orientation and available installation area
- Shade from trees, buildings and other structures
- Structural capacity and electrical-panel condition
- Local building, zoning and homeowners association requirements
- Seasonal electricity use
- Planned purchases such as an electric vehicle, heat pump or electric water heater
If the roof needs replacement soon, complete that work before installing solar panels. Removing and reinstalling the panels later adds cost.
The U.S. Department of Energy says solar potential depends on location, roof position, shade and the photovoltaic system selected.
Review your electricity bills from the previous 12 months and record your annual use in kilowatt-hours, or kWh. The installer will use this figure to estimate the system size.
2. Check Your Utility's Solar Rules Before Signing
Your utility determines how a grid-connected solar system exchanges electricity with the grid. Its rules affect how much value you receive from excess production.
Ask the utility about:
- Interconnection requirements
- Permission to operate
- Net metering or other export-credit programs
- Compensation for excess electricity
- Fixed monthly charges that solar will not eliminate
- Time-of-use rates
- System-size limits
- Battery requirements or incentives
Net metering policies vary by utility and location. Some utilities credit exported electricity at less than the retail electricity rate. That difference affects the value of producing more power than your home uses.
Check the assumptions behind every savings estimate. The proposal should identify:
- Electricity rate
- Expected annual production
- Export-credit rate
- Utility rate-increase assumptions
- Fixed charges
An estimate that leaves out these details is difficult to evaluate.
3. Decide How to Pay for Solar
You can pay cash, use a solar loan or enter a third-party ownership arrangement such as a lease or power purchase agreement.
| Option | Advantages | Main disadvantages |
|---|---|---|
| Cash purchase | You own the system and usually pay the lowest total cost | Highest upfront cost |
| Solar loan | You own the system while spreading payments over time | Interest, fees and long repayment periods increase total cost |
| Solar lease | Lower upfront cost and maintenance may be included | The provider owns the system, and the contract may complicate a future home sale |
| Power purchase agreement | You pay for the electricity produced instead of buying the equipment | Long contract, possible annual price increases and less control over the system |
The Department of Energy says a purchased system generally has a lower total cost than one financed through a loan, lease or power purchase agreement.
A solar loan may still suit you if paying cash would reduce your emergency savings or delay other necessary home improvements. Compare:
- Annual percentage rate
- Loan term
- Origination fees
- Monthly payment
- Prepayment terms
- Total repayment amount
Do not judge financing by the monthly payment alone. A lower payment can result from a longer loan term or a higher total cost.
What Changed With the Federal Solar Tax Credit?
As of September 25, 2026, the federal Residential Clean Energy Credit is not available for solar property placed in service after December 31, 2025. The Internal Revenue Service states that the credit applied to qualifying property installed through December 31, 2025, but not to property placed in service after that date.
State, local and utility incentives may still be available. Eligibility depends on your location and each program's rules. Confirm current incentives with your state energy office and electricity provider before including them in your financial calculations.
4. Get at Least 3 Written Solar Quotes
A useful solar proposal includes more than a monthly payment. Compare the details below across at least 3 installers.
Each proposal should identify:
- System size in kilowatts, or kW
- Panel manufacturer and model
- Inverter manufacturer and model
- Battery manufacturer, usable capacity and backup output, if included
- Expected annual production in kWh
- Total installed price
- Price per watt
- Permit, inspection and interconnection fees
- Electrical-panel or roof upgrades
- Monitoring equipment and software
- Installation schedule
- Workmanship warranty
- Panel product and performance warranties
- Inverter and battery warranties
- Maintenance responsibilities
- Production guarantee, if offered
- Cancellation terms
- Responsibility for roof removal and panel reinstallation
- Terms that apply if you sell the property
How to Calculate Solar Price per Watt
Use this calculation:
Total installed price ÷ system size in watts = price per watt
For example, an illustrative $24,000 system with an 8,000-watt capacity costs:
$24,000 ÷ 8,000 watts = $3.00 per watt
Price per watt helps compare similar systems, but it is only one measure. A lower figure may come with lower expected production, extra electrical work or weaker warranties.
The Federal Trade Commission recommends comparing detailed bids that identify system size, expected power production, total installation cost, production guarantees and equipment and workmanship warranties.
5. Compare Panels, Inverters and Batteries
Solar Panels
Panel wattage describes the maximum output of one panel under specified test conditions. It does not show how much electricity the full system will produce on your roof.
Compare:
- Expected annual system production
- Panel efficiency
- Performance in partial shade
- Product warranty
- Performance warranty
- Degradation assumptions
- Panel dimensions and roof layout
- Manufacturer support and availability
A lower-wattage panel may be the better choice if it fits the roof more efficiently, has stronger warranty terms or produces more energy in the proposed layout.
Inverters
An inverter converts the direct-current electricity from solar panels into alternating-current electricity used by household appliances and the utility grid.
Common configurations include:
- String inverter: Multiple panels connect to one central inverter. This can be cost-effective on a mostly unshaded roof with a simple layout.
- Microinverters: Each panel has its own inverter. This can help on roofs with multiple orientations or partial shade, but the proposal should explain the added cost.
The Department of Energy identifies string inverters and microinverters as the two common residential inverter configurations.
Battery Storage
A battery can provide backup power during an outage. It may also improve the value of solar electricity where the utility pays little for exported power.
Ask the installer for:
- Usable battery capacity in kWh
- Continuous and peak output
- Circuits that receive backup power
- Expected backup duration
- Battery warranty and cycle limits
- Replacement cost
- Whether the battery can charge from the grid
- Whether a separate backup gateway is required
Choose the battery based on your backup needs and utility rate structure. The number of solar panels alone does not determine the right battery size.
6. Verify the Solar Installer
Before signing a contract, confirm that the installer:
- Holds the licenses required in your state and local area
- Carries general liability and workers' compensation insurance
- Has electrical and roofing experience
- Uses qualified subcontractors
- Has completed similar projects in your area
- Provides references or verifiable customer reviews
- Explains who handles permits, inspections and utility interconnection
- States who will service the system if the company closes or stops operating
The Department of Energy recommends using qualified, insured installers and considering credentials such as certification from the North American Board of Certified Energy Practitioners.
Check the installer's name with your state contractor licensing board. Search independently for complaints and reviews. Be cautious about paying a large amount before work begins, especially when a salesperson demands cash, a wire transfer or an immediate decision.
7. Read the Contract Before Buying Solar Panels
The contract should match the promises made in the advertisements, sales presentation and proposal.
Look for clear terms covering:
- Total system price
- Deposit and payment schedule
- Financing rate and total repayment
- Equipment models
- Expected electricity production
- Roof or electrical upgrades
- Permit and interconnection responsibility
- Installation deadline
- Warranty coverage and exclusions
- Repairs and maintenance
- Production shortfalls
- Cancellation rights
- System ownership
- Early termination fees
- Contract transfer if you sell the home
- Removal and roof repair obligations
For a lease or PPA, also check:
- Whether payments increase over time
- Who receives incentives and renewable energy certificates
- Whether the home buyer must qualify to assume the contract
- What happens if you sell the property
- Whether early termination is allowed and what it costs
The FTC warns that leases and PPAs can affect home sales and may include long contract periods, payment increases and early termination conditions.
Watch for Solar Scams
Treat these claims and demands as warning signs:
- "Free solar panels"
- "The government will pay for everything"
- "Your utility has already approved this offer"
- "You must sign today"
- "This tax credit is guaranteed"
- "You will never pay an electricity bill again"
- Requests for cash, cryptocurrency or a wire transfer
- A salesperson who will not provide the full contract
The FTC says legitimate solar companies should explain the actual cost, give you time to review the contract and avoid high-pressure sales tactics.
Solar panels can reduce the electricity you buy, but most grid-connected homes continue to receive utility bills. Fixed charges, seasonal use and electricity purchased when solar production is low can all contribute to the remaining bill.
When Buying Solar Panels May Not Be Worthwhile
Solar may be a poor fit when:
- The roof needs replacement soon
- Heavy shade limits production
- You expect to move before the system delivers value
- Your electricity use is very low
- The utility provides little credit for exported electricity
- Required roof or electrical upgrades are unusually expensive
- Financing costs outweigh expected electricity savings
In these cases, improving insulation and energy efficiency, waiting until a roof replacement or considering community solar may be more practical.
Final Solar Buying Checklist
Before signing a solar contract, make sure you have:
- Reviewed 12 months of electricity bills
- Checked the roof's condition
- Confirmed utility interconnection and export rules
- Obtained at least 3 written proposals
- Compared annual production rather than panel wattage alone
- Calculated total installed cost and price per watt
- Compared cash, loan, lease and PPA costs
- Verified licenses and insurance
- Reviewed equipment and workmanship warranties
- Confirmed who handles permits and inspections
- Read the home-sale and cancellation terms
- Rejected pressure tactics and "free solar" claims
A sound solar purchase has transparent pricing, a realistic production estimate and a contract you understand. Compare installers first, equipment second and financing terms third.