Consumer Protection

As solar has become more popular and accessible, solar sales and advertising have also increased. Solar can be a great choice for you – but it is important now more than ever to be a smart solar consumer! Learn about how to be a smart shopper, and how to avoid common solar issues. This page is geared towards people who are interested in installing solar on their property – but many of the tips apply to signing up for community solar as well! Before you start the process of going solar, check with your utility provider to determine if you can connect solar to the grid in your area.

Installing solar panels on your property is a major financial commitment and involves installing multiple pieces of equipment on your home. You should treat going solar like you would any significant investment in your home. It’s always a good idea to shop around and compare three or more quotes before signing a contract. Comparing quotes allows you to compare different financing and equipment options – and it gives you time to verify the information that you are being given by sales representatives. What’s more – comparing quotes can also help you be an effective negotiator, and help you save money.

There are multiple ways to finance a solar installation on your property. You could purchase a system outright, finance a system with a solar loan, lease a system, or sign a power purchase agreement. The option you choose impacts which incentives you may have access to and impacts your finances in the long term.

For example, if you purchase a system, you may qualify for the federal tax credit, and you may be able to sell the SRECs created by your system. If you lease a system, you typically do not get to take direct advantage of these incentives, because you are not the owner of the system.

The best financing option for you depends on your individual finances and goals. Read more about the different options on our Owning vs. Leasing page.

Unless you are buying your solar panels outright with cash, you will be signing a long-term contract when you go solar. Make sure you know the length of your contract. Ask about any dates important to your contract. Some important contract terms to be aware of include:

• When will payments begin?
• How long is the contract?
• Will your payments increase at any time?
• For leases or power purchase agreements (PPAs) – are there dates throughout your contract when you can buy out the system?
• What happens at the end of your contract? For leases and PPAs, they may come remove the system from your house.
• What happens to your solar contract if you sell your property?

You want to make sure you are working with a reputable company. Some tips for picking a reputable company include: Reading reviews of the company on the internet, asking solar companies to provide a customer reference in your area, and knowing how long the company has been working in the area.

Always make sure you know who you are talking to. Many solar companies subcontract other companies to do their sales. If a subcontractor gives you incorrect information, the solar company that you are signing up with may not honor their statements. Remember to always compare multiple quotes, so that you can pick the company you are the most comfortable with!

As with any sales, misinformation or oversimplifications can be common. If something sounds too good to be true – it may be. Some common things to look out for include: salespeople that claim to be from your utility company, claims that there is a tight deadline on certain incentives, and claims that you will “get paid to go solar.” Always confirm the information you are being told with your electric provider, with a tax advisor, and by visiting the other resources on this website.

While there are a lot of great programs that can help make solar more affordable, they often have requirements that make them more complex than they may seem at the outset. For example, if your utility offers net metering, you will receive credits on your electric bill for excess electricity you produce. However, you will still owe a monthly utility bill, and you may not receive a check or other payment from your utility.

Many solar quotes include estimates of the Federal Tax Credit and state incentives. These numbers are estimates. Make sure you understand whether you qualify for the incentives that are listed in your solar quote. If it turns out that you do not qualify for a credit that covers 20 – 30% of the cost of going solar, that has a significant impact on the overall cost of your project.

Make sure you also understand when and how you will receive any incentives. Keep in mind that some incentives require an application.

Different solar quotes will include different equipment and may also differ in terms of layout, system size, and panel efficiency (capacity factor of the panels). These differences can make it hard to effectively compare offers. One tool you can use is to compare the cost per watt. To do this, take the full price of the system, and divide it by the system size in watts. Here is the step-by-step process:

Step 1: Multiply the size of your system in kilowatts (kW) by 1,000 to receive the size of your system in watts (w).

Example: 6.5 kilowatts x 1,000 = 6,500 watts

Step 2: Divide the total system cost, before incentives, by the system size in watts.

Example: $19,100 / 6,500 watts = $2.94 / watt 

Step 3: Repeat with your other solar quotes, and compare the cost per watt

You do not always need to go with the least expensive system, as other factors like equipment, warranties, panel efficiency, and the company’s experience level are also important factors to consider.

There are many things that can make going solar a smart decision for your finances and for the environment – including the decreasing cost of equipment and a variety of incentives. While it can require work upfront, doing your homework and comparing quotes can ensure you get the best solar installation for your home, and save you money in the long run.

The role of the Public Advocate is to advocate for the lowest reasonable rates for residential and small commercial utility consumers, consistent with a fair distribution of rates and maintaining reliable utility service.

Email Address: public.advocate@delaware.gov

Phone Numbers:

• Toll Free: 888-607-2427
• Dover: 302-241-2555
• Wilmington: 302-577-5077

Visit Delaware Division of the Public Advocate Website