While purchasing a residential solar energy system certainly increases your home’s value, it can be a pricey undertaking. The average cost of a rooftop system is between $15,000 and $25,000. Here are a few ways to save money on that price tag when converting your home to solar energy power. Created in 2013 with funding from the U.S. Department of Energy’s SunShot initiative (a program designed to reduce the cost of solar energy and make it cost-competitive with other forms of energy), EnergySage helps shoppers pay significantly less for residential solar than what’s offered outside the platform. According to Aggarwal, that’s because of the competitive nature of the EnergySage marketplace. “You’re getting high-quality companies to compete and prices tend to be 20 to 30 percent less,” he explains. “We have data to prove that.” A handful of government-funded research labs back up what Aggarwal says about costs saved using EnergySage to purchase residential solar. One such study published in 2017 by the National Renewable Energy Laboratory found that quote aggregators like EnergySage drive installers to be transparent and drive down prices by as much as $5000. And while you’re getting those quotes, ask a lot of questions. You’ll want to understand the quality of the solar panel product you’re being sold, as well as the quality of the company. Look for references, ratings, and reviews, suggests Aggarwal. “But there are some people who are very focused on aesthetics also,” adds Aggarwal. Various style choices of solar panels also affect cost. For example, there are black-on-black options comprised of a black solar panel and a black rack (that the panel attaches to) as well as all-glass solar panels. The bottom line with size and style options is that some cost more than others. “You should not make a lot of additions like this if you want to save money,” says Aggarwal. If you choose to arrange your own financing, tell the solar installer and ask for a better, more competitive price for the system in exchange. “Ask the installer to cut you a deal if you bring your own loan,” says Aggarwal. “That could result in very significant savings.” Generally, this approach results in two monthly bills: one from the solar company for the lease agreement (which can be as long as 25 years) and one from the local utility provider for the power used above and beyond what your solar system generated. In addition to eliminating installation costs, going solar saves customers money over the long term on utility bills, according to Wyatt Semanek, Sunrun’s senior public relations manager. “Sunrun customers see an average bill savings of 5 to 45 percent over the lifetime of their system. It’s a wide range because, as you can imagine, total savings depend on factors like the homeowner’s energy consumption, system sun hours, geographic weather cycles, and more.” Bear in mind that leasing has drawbacks. For instance, leases don’t qualify for state and federal tax incentives available to homeowners who purchase and install residential solar systems on their own. When you opt for a lease, those benefits go to the solar company that owns the system. EnergySage also offers a Solar Calculator that quickly calculates a customized estimate of solar costs and savings for your property.
