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NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
Get a Free QuoteThe federal tax credit is gone. Predatory escalators, inflated production estimates, and "TBD" equipment are rampant. This is the step-by-step guide to reading solar proposals like a pro — so you never overpay or sign a bad deal.
Red Flags Covered
8
Critical + warning
Section 25D
Expired
Dec 31, 2025
Section 48/48E
30% ITC
TPO only — until July 4, 2026
Getting multiple quotes is not enough — you need to know what to compare. The cheapest quote is not always the best deal, and a 2.9% escalator can cost you $15,000+ more than a fixed-rate option over 25 years.
Comparing solar proposals is not as simple as picking the lowest price. A "cheap" quote with unknown-brand equipment, an inflated production estimate, and a 2.9% escalator can cost you tens of thousands more than a seemingly pricier quote with Tier 1 equipment and fixed payments. Here is how to evaluate proposals systematically.
Divide total installed price by system size in watts. A $28,000 system at 8.4 kW = $3.33/W. This is the only apples-to-apples comparison. Total price is meaningless without knowing system size — a $22,000 quote for 6 kW ($3.67/W) is actually more expensive per watt than a $28,000 quote for 9 kW ($3.11/W).
Good range: $2.50-$3.80/W in 2026 (varies by state)
Divide annual kWh production by system size in kW. Northeast: 1,100-1,250 kWh/kW. Mid-Atlantic: 1,200-1,350 kWh/kW. Texas: 1,350-1,500 kWh/kW. Anything above these ranges is inflated. A 10% inflation on a 10 kW system exaggerates savings by $300-$500/year, making a bad deal look acceptable.
Verify at pvwatts.nrel.gov with your actual address
Make sure proposals specify exact panel brand, model, and wattage per panel. Check inverter brand and type (Enphase microinverters vs SolarEdge string + optimizers). A $3.00/W quote with unknown panels is not the same value as $3.00/W with REC Alpha Pure or Hyundai HiE.
Tier 1 panels: Silfab, Hyundai, REC, Canadian Solar, Q Cells, Jinko
For loans: ask for the cash price separately — the difference reveals dealer fees (often 25-30%). For leases/PPAs: calculate total 25-year cost including the escalator. A $130/month lease at 2.9% escalator costs $54,600 over 25 years. The same system with a fixed $155/month Propel payment costs $46,500.
Always calculate total lifetime cost, not just month 1
Three warranties matter: panel product (25 years standard), panel power degradation (should guarantee 87-92% output at year 25), and installer workmanship (10-25 years). The weakest link is usually the workmanship warranty — make sure the installer will exist in 10 years to honor it.
Minimum acceptable: 25yr panel, 25yr inverter, 10yr workmanship
A complete proposal includes expected timeline: site survey, design, permitting, installation, inspection, and utility interconnection (PTO). Total time is typically 6-12 weeks. If an installer cannot give you a timeline, they may be a sales org that subcontracts installation.
Typical: 6-12 weeks from contract to PTO
Pro tip: The best comparison is a NuWatt quote alongside your other proposals. We show exact equipment specs, verified production estimates, and transparent pricing — no dealer fees, no TBD equipment. Get your free NuWatt quote.
Four numbers tell you 90% of what you need to know about any solar proposal. If an installer cannot provide all four clearly, consider it a red flag.
The universal comparison metric. Divide total price by watts. A 8 kW system at $26,400 = $3.30/W.
Good: $2.50-$3.80/W
Suspicious: Below $2.20 or above $4.50
Reveals inflated estimates. NE gets ~1,200 kWh/kW. If the quote shows 1,450, production is inflated ~20%.
Good: 1,100-1,500 kWh/kW (varies by region)
Suspicious: Above 1,500 in any US state
Panels lose output each year. At 0.40%/yr, a 10 kW system produces 9 kW-equivalent in year 25. Factor this into savings projections.
Good: 0.25-0.50% per year
Suspicious: Anything above 0.70% or not disclosed
Tier 1 panels (Silfab, REC, Canadian Solar) cost only $0.05-$0.15/W more than unknown brands but offer proven reliability and bankable warranties.
Good: Specific brand + model listed
Suspicious: "TBD" or unrecognized brand names
Any one of these should make you pause. Two or more means you should get additional quotes before signing. These red flags have become especially common since the Section 25D tax credit expiration, as some installers use confusion to push bad deals.
An escalator above 2.5% causes your payments to grow faster than utility rates. At 2.9%, a $150/month payment becomes $321/month in year 25. You end up paying more for solar than grid electricity.
What to do: Negotiate to 1.99% or less, or choose a fixed-payment option like Propel.
Some installers inflate production by 10-20% to make savings projections look better. Northeast systems produce 1,100-1,250 kWh/kW, not 1,400+. Inflated estimates mean your actual savings will be lower than promised.
What to do: Cross-check with PVWatts (pvwatts.nrel.gov). Ask the installer for their degradation rate assumption.
If the proposal says "TBD" or "to be determined" for panels or inverter, the installer may swap in cheaper equipment after you sign. Equipment brand directly affects performance, warranty, and resale value.
What to do: Never sign until specific brand, model, and wattage are listed. Get it in writing.
A satellite-only design misses shading from trees, roof condition issues, electrical panel capacity, and structural concerns. Any installer who asks you to sign without visiting your home is cutting corners.
What to do: Insist on an on-site survey before signing any contract. Satellite estimates are starting points, not final designs.
Legitimate solar pricing does not expire in 24 hours. High-pressure tactics are the hallmark of door-to-door sales organizations that prioritize volume over quality. The real deadline is the Section 48 construction start by July 4, 2026 — not a salesperson invented scarcity.
What to do: Walk away. A reputable installer will give you time to compare quotes and make an informed decision.
Some proposals exclude permit fees ($500-$2,000), tree trimming ($500-$3,000), roof repair costs, electrical panel upgrades ($1,500-$4,000), or trenching for ground mount. These get added after you sign.
What to do: Ask explicitly: "Is this quote all-inclusive? What costs are NOT included?" Get the answer in writing.
Section 25D expired December 31, 2025. Any salesperson telling you that you personally will get a 30% tax credit on a cash or loan purchase is either uninformed or lying. The only federal credit path is Section 48/48E through TPO (lease/PPA/Propel).
What to do: End the conversation. An installer who gets this wrong cannot be trusted with your $25,000+ investment.
There are three separate warranties: panel product warranty (25 years standard), inverter warranty (12-25 years), and workmanship warranty (installer labor, typically 10-25 years). Some proposals only mention one.
What to do: Get all three warranty terms in writing. Ask who covers service calls after year 2.
Not sure if your quote has red flags? Use our free Quote Checker tool to upload your proposal for an instant analysis, or try the interactive comparison tool below.
The 2026 financing landscape is fundamentally different from 2024. With the Section 25D homeowner tax credit gone, third-party ownership (lease, PPA, Propel) has a structural advantage: the financing company can claim the 30% Section 48/48E commercial ITC and pass savings to you. Cash and loan buyers get zero federal credit.
The Section 48/48E construction start deadline is July 4, 2026. After that date, the terms of the commercial ITC may change. If you are considering a lease, PPA, or Propel, starting before this deadline matters.
Upfront
$22,000-$28,000 (8 kW)
Monthly
$0
Federal Credit
None (25D expired)
Ownership
Immediate
25-Year Total Cost
$22,000-$28,000
Best For
Highest lifetime ROI, no ongoing payments
Watch for: Large upfront cost, no federal credit in 2026
Upfront
$0
Monthly
$140-$220
Federal Credit
None (25D expired)
Ownership
Immediate
25-Year Total Cost
$36,000-$55,000 (with interest + dealer fees)
Best For
Ownership without upfront cash
Watch for: Dealer fees (25-30%), effective APR much higher than advertised
Upfront
$0
Monthly
$100-$170 + escalator
Federal Credit
30% (company claims Section 48)
Ownership
Never (or FMV buyout at end)
25-Year Total Cost
$35,000-$65,000 (with 2.9% escalator)
Best For
Lowest starting payment, no credit requirements
Watch for: Escalator adds $15K-$20K over 25 years, no ownership
Upfront
$0
Monthly
Varies by production
Federal Credit
30% (company claims Section 48)
Ownership
Never (or FMV buyout at end)
25-Year Total Cost
$30,000-$58,000 (with escalator)
Best For
Pay only for what system produces
Watch for: Escalator on per-kWh rate, low-production months still have fees
Upfront
$0
Monthly
$120-$180 fixed
Federal Credit
30-50% (investor claims, passes through)
Ownership
Year 5 automatic transfer
25-Year Total Cost
$28,000-$42,000
Best For
Fixed payments + ownership path + ITC capture
Watch for: Currently available in ME and TX only
Propel by NuWatt is our own transitional ownership product — fixed payments, no escalator, ownership at year 5. Currently available in ME and TX. Learn more about Propel.
Equipment is one of the most misunderstood parts of solar proposals. The difference between budget and premium panels is typically only $0.30-$0.60/W ($2,400-$4,800 on an 8 kW system), but the impact on 25-year performance and warranty coverage is significant. Here is what each tier actually means.
Panels
Jinko Tiger Neo, Trina Vertex S+
Inverter
String inverter (SMA, Fronius)
Efficiency
20.5-21.2%
Warranty
25-year product, 25-year linear power
Trade-off: Lower efficiency and monitoring granularity, but bankable Tier 1 manufacturers
Panels
Canadian Solar HiKu7, REC Alpha Pure R, Hyundai HiE
Inverter
Enphase IQ8+ microinverters
Efficiency
21.5-22.3%
Warranty
25-year product, 25-year linear power, 25-year inverter
Trade-off: Best value: panel-level optimization, strong warranties, proven bankability
Panels
SunPower Maxeon 7, REC Alpha Pure HJT
Inverter
Enphase IQ8M microinverters or SolarEdge + optimizers
Efficiency
22.5-24.1%
Warranty
40-year product (Maxeon), 25-year power
Trade-off: Maximum efficiency and longevity, but diminishing returns — 2% more efficiency rarely justifies 15-20% higher cost
Battery upsells: If you are being sold a battery, ask whether it makes financial sense for your situation. Batteries add $8,000-$15,000 and are most valuable in states without net metering (TX) or with time-of-use rates. In states with good net metering (MA, NJ), batteries are primarily for backup power, not savings. See our battery cost guide.
Enter the details from two solar proposals to compare them side-by-side. The tool calculates $/watt, lifetime cost per kWh, and flags potential red flags in each quote.
Enter two solar quotes to compare value and flag potential issues
Before signing any solar contract, verify that the proposal includes all of the following. Missing items are not just oversights — they can hide costs, limit your recourse, or indicate an installer who cuts corners.
Solar economics vary significantly by state. Here is what to look for in proposals across NuWatt's 9-state service area.
Our proposals include specific equipment specs, verified production estimates from satellite and on-site data, transparent $/watt pricing with no dealer fees, and financing options including Propel (ME and TX). Use it as your benchmark.
Equipment
Named brands, no TBD
Production
Verified, not inflated
Pricing
No hidden dealer fees
Get at least 3 quotes from different installers. This gives you enough data to identify outliers in pricing, equipment, and production estimates. Make sure at least one quote is from a local installer (not a national sales organization) and that all quotes are sized to your actual 12-month electricity usage.
In 2026, a good price per watt for residential solar is $2.50-$3.80/W depending on your state, equipment tier, and system size. Texas and Pennsylvania tend to be on the lower end ($2.50-$3.05/W), while New England states run $2.80-$3.60/W due to higher labor and permitting costs. Any quote above $4.50/W or below $2.20/W deserves extra scrutiny.
The five biggest red flags are: (1) escalator clauses above 2.5% per year, which cause payments to exceed utility rates within 10-12 years; (2) production estimates above 1,500 kWh/kW, which are unrealistic for most US locations; (3) equipment listed as TBD or missing brand names; (4) no site survey before asking you to sign; and (5) pressure tactics like today-only pricing or claiming a tax credit that expired in 2025.
The Section 25D residential solar tax credit expired December 31, 2025. Homeowners who buy solar with cash or a loan receive zero federal tax credit. However, Section 48/48E (the commercial ITC) is still active for third-party owned systems through July 4, 2026. This means lease, PPA, and Propel financing structures can still capture the 30% federal credit through the financing company.
An escalator clause increases your solar lease or PPA payment by a fixed percentage each year, typically 1.99-2.99%. A 2.9% escalator on a $150/month payment means you pay $150 in year 1, $154 in year 2, and $321 in year 25. Over a 25-year term, a 2.9% escalator adds roughly $15,000-$20,000 in total payments compared to a fixed-rate option. If the escalator exceeds utility rate increases (historically 3-4%), your solar payment eventually costs more than grid electricity.
In 2026, there is no single best answer. Cash provides the highest lifetime ROI but requires $22,000-$28,000 upfront and gets zero federal credit. Loans offer ownership but watch for 25-30% dealer fees hidden in the interest rate. Leases and PPAs require $0 down, and the financing company can claim the Section 48 ITC (until July 2026), passing savings to you. Propel by NuWatt offers fixed payments with no escalator and ownership transfer at year 5.
Check the production-to-size ratio. Divide annual kWh production by system size in kW. Northeast systems typically produce 1,100-1,250 kWh/kW. Mid-Atlantic gets 1,200-1,350 kWh/kW. Texas gets 1,350-1,500 kWh/kW. Anything above 1,500 kWh/kW is likely inflated. You can verify estimates free using NREL PVWatts Calculator (pvwatts.nrel.gov) with your specific address and roof orientation.
A thorough solar proposal should include: specific panel brand, model, and wattage; inverter brand and type; total system size in kW and number of panels; production estimate in kWh/year; total cost and cost per watt; financing terms including APR, term length, and any escalator; equipment warranties; workmanship warranty; permit and interconnection timeline; a system design showing panel placement on your roof; and a savings estimate based on your actual utility rate.
Dealer fees (also called origination fees or channel partner fees) are charges that solar installers pay to loan providers like GoodLeap, Mosaic, or Dividend. These fees, typically 25-30% of the loan amount, are baked into the loan as a higher principal or higher interest rate. A $25,000 system with a 27% dealer fee means you actually finance $31,750. Always ask for the cash price separately and compare it to the financed price to see the true cost of financing.
Propel is a transitional ownership model. During years 1-5, a third-party investor owns the system and claims the Section 48 ITC. At year 5, ownership automatically transfers to the homeowner at no additional cost. Standard leases and PPAs keep the system under third-party ownership for the full 20-25 year term. Propel also has fixed monthly payments with no escalator, while most leases include 1.99-2.99% annual payment increases. Currently available in ME and TX.
Real costs by state and system size after the tax credit expiration
Read guide7-point comparison framework for evaluating solar proposals
Read guideHow Propel works: fixed payments, no escalator, ownership at year 5
Read guideComplete guide to lease, PPA, and third-party ownership options
Read guideWhat to check before buying a house with an existing solar system
Read guideState and utility incentives still available in 2026
Read guideHow long solar installation takes from permit to interconnection
Read guide