To read a solar quote, find five lines: the deal type (cash, loan, lease or PPA), the system size and first-year production, the cash price and what it includes, the payment terms, and the warranties and exit rules. For a purchase, divide the cash price by the system’s watts to get price per watt, then compare quotes only on the same scope. A 2026 quote should not subtract a 30% federal homeowner tax credit: that credit ended for systems installed after 2025.
Find these five lines first
- Deal type: cash purchase, loan, lease, or power purchase agreement (PPA). This decides who owns the system and which number you should compare.
- System and output: panel count and wattage (a 410 W panel is rated to produce 410 watts under standard test conditions), total DC system size in kW, exact panel and inverter models, and first-year production in kWh. Match the models to their data sheets with the equipment listed in your solar quote.
- Cash price and scope: the price before incentives or financing, plus whether permits, interconnection, inspections, monitoring, electrical work, roof work, trenching, or tree work are included.
- Payment terms: amount financed, APR, term, total of payments, and any later payment change. For a lease or PPA, the starting payment or price per kWh, contract length, and escalator.
- Promises and remedies: equipment, workmanship, roof, and production coverage; substitutions; change orders; cancellation; and what happens if you sell the home.
The Federal Trade Commission tells homeowners to compare detailed bids from several companies, with system size, expected output, full installed cost including permit fees, any production guarantee, and equipment and workmanship warranties in writing (FTC, “Solar Power for Your Home”). Three itemized quotes is a practical number: enough to show which price or production estimate is the outlier.
Cash, loan, lease or PPA: what each quote is really showing
The four deal types lead with different headline numbers. Convert each one to the figure in the “compare this” row before you put quotes side by side.
| Quote type | Cash purchase | Loan | Lease | PPA |
|---|---|---|---|---|
| Headline number | Total contract price | Monthly payment | Monthly lease payment | Price per kWh |
| Who owns the panels | You | You (lender may file a lien or security interest) | Leasing company | PPA company |
| Compare this | Cash price per watt, same scope | Cash price vs amount financed, APR, total of payments | Payment, escalator, total over the term, buyout | Starting rate, escalator, later-year rate vs your utility rate |
| Federal credit in 2026 | No Section 25D homeowner credit for a system installed after December 31, 2025 | The company that owns the system may claim its own business credit; you see a benefit only if it is in the written payment or rate | ||
| Repairs and home sale | Your responsibility after warranties; loan payoff or assumption at sale | Contract says who maintains it; transfer to the buyer if the contract allows it, or buy out or remove it | ||
A loan quote is a purchase quote with a financing document attached, so always ask for the cash price too. Leases and PPAs cannot be compared on price per watt because you are not buying the equipment. For a full comparison of these options, use EcoGen’s solar loan, lease and PPA costs guide.
Annotated solar quote example
Every figure in this example and the comparison below is made up to show the math. It is not a real quote or an EcoGen price benchmark.
System and production
20 panels × 410 watts = 8,200 watts, or 8.2 kW DC.
First-year estimate: 10,400 kWh. That is 10,400 ÷ 8,200 = about 1.27 kWh per watt. A second quote for the same roof and system size that claims much more output per watt should show why: different roof planes, tilt, direction, shade, weather data, or loss assumptions.
Enter the same system details in NLR’s PVWatts calculator to get an independent estimate for your address.
Cash price and scope
Solar-only cash price: $24,600.
$24,600 ÷ 8,200 W = $3.00/W.
Price per watt only compares like with like. Pull batteries, roof work, main-panel upgrades, and financing out into separate lines first. Use EcoGen’s solar cost guide to see current price per watt for your state.
Documents behind the summary
“Premium panels” or “Tier 1” is not a model number, and a warranty headline is not the warranty. Ask for the final equipment list, warranty documents, project scope, and payment agreement.
Warranty terms vary by model and region. Enphase, for example, publishes data sheets and warranty documents per product in its documentation center.
Compare two quotes on the same basis
Copy the row labels into a document, fill in each proposal’s exact wording, and write “not stated” instead of guessing.
What to compare |
Fictional Quote A |
Fictional Quote B |
|---|---|---|
Deal type | Cash purchase; loan offered separately | Cash purchase; loan offered separately |
System size | 20 × 410 W = 8.2 kW DC | 20 × 410 W = 8.2 kW DC |
Panel and inverter | Manufacturers and model numbers named | “Premium” equipment; models not stated |
First-year production | 10,400 kWh; shade and losses listed | 10,800 kWh; shade and losses not stated |
kWh per watt | 1.27 | 1.32, with no inputs to explain it |
Solar-only cash price | $24,600 | $23,000 |
Cash price per watt | $3.00/W | $2.80/W |
Included work | Permits, interconnection, inspection, and monitoring listed | Permits and monitoring not stated |
Main-panel upgrade | $2,000, priced separately | Required? Price after site visit |
Total known cash price | $26,600: $24,600 solar + $2,000 upgrade | $23,000 plus any required upgrade |
Loan disclosure | Cash price, amount financed, APR, term, and total payments shown | Monthly payment shown; amount financed and total payments not stated |
Warranty and remedy | Documents attached; labor and roof terms named | Warranty years listed; labor and roof terms not stated |
What the table shows: Quote B is $1,600 cheaper on the figures shown, but it also promises more output from the same equipment without saying why, may still need the main-panel upgrade that Quote A prices at $2,000, and leaves equipment, scope, financing and warranty remedies unwritten. Send B those rows and ask for a revised proposal before ranking the two.
Read the payment agreement separately
Loan quotes: cash price, amount financed, and the prepayment assumption
Put the cash price beside the amount financed. Then record the APR, term, total of payments, and any fee added to the principal. In an August 2024 review, the Consumer Financial Protection Bureau found solar-loan fees that typically ran 10% to 30% of the cash price, and sometimes more than 50%, often built into the loan without being labeled as a markup. It also found loans whose monthly payment assumed the borrower would prepay about 30% of the principal, the old tax-credit amount, and rose sharply if that payment was not made (CFPB, “Issue Spotlight: Solar Financing”).
Fictional loan on Quote A
- Cash price: $26,600. Amount financed: $31,920. Difference: $5,320 (20% of the cash price) in fees before any interest.
- 3.99% APR, 25 years. The first 18 payments are $117.82, set as if you will prepay 30% ($9,576) by month 18.
- If you do not make that prepayment, the payment resets to about $173.42 for the remaining 282 months.
In 2026 there is no 30% homeowner credit to fund that prepayment. If a loan quote has a step-up or “re-amortization” date, plan for the higher payment or ask for a loan without one.
Lease and PPA quotes: the escalator
Record the starting lease payment or PPA rate, the annual escalator, the contract length, and the payment or rate in later years. Small escalators compound. A fictional PPA at 14¢ per kWh with a 2.9% escalator charges about 18.1¢ in year 10 and 27.8¢ in year 25; a $120 lease payment with the same escalator reaches about $238 a month in year 25. Compare those later-year figures with what you pay your utility now, and ask what happens to the rate if you sell the house.
Also copy maintenance responsibility, production remedy, buyout and removal costs, and the transfer process. The FTC lists these as the questions to ask, because you do not own a leased or PPA system.
Savings charts
Find the assumed annual utility-rate increase, export credit rate, and your usage behind any savings projection. A chart built on steep yearly rate increases can make any offer look good. Ask the installer for the same projection with today’s rate held flat; if the deal still works, the chart is not doing the selling.
Resolve five questions before signing
- Does the contract match the quote? Confirm system size, exact models, price, production commitment, included work, and every promised concession.
- What can change? Require written approval for equipment substitutions, new site work, and change orders, including the price and effect on production.
- Who fixes what? Identify the provider and remedy for product defects, workmanship, roof penetrations, labor, shipping, removal and reinstallation, and any production shortfall.
- What are the exit rules? Find the deposit, cancellation deadline, refund terms, early payoff or termination terms, and transfer process when the home is sold.
- Who is responsible? Verify the contracting, installing, permitting, and servicing companies, required state licenses, and any subcontractor roles.
Is this solar quote legitimate?
A legitimate quote names the exact equipment, states system size and annual production, shows a total price, and comes from a company whose license you can check with your state contractor licensing board. Slow down if the price expires today, if you are asked to sign on a tablet without seeing the full agreement, or if the seller will not put an answer in writing (FTC solar scam alert). EcoGen’s solar scam guide covers the full list.
Does every solar buyer have three business days to cancel?
No. The FTC Cooling-Off Rule covers certain sales over $25 made at your home or another qualifying location, with exceptions. Covered sellers must tell you about your right to cancel within three business days. State law or the contract may give different rights, so check the cancellation section of your own agreement. FTC Cooling-Off Rule, 16 CFR Part 429.
Reviews show service patterns, but they do not replace license, contract, and warranty checks. The solar buying guide covers the full process from electricity use through permission to operate.
Finish the comparison
Send each installer the rows that are missing or unclear and ask for a revised written proposal with a cash price. If you need another bid, EcoGen’s state solar company guides are a starting point; verify licensing and contract details directly.
Sources
- Federal Trade Commission, “Solar Power for Your Home”. Accessed October 14, 2026.
- Consumer Financial Protection Bureau, “Issue Spotlight: Solar Financing”, August 7, 2024. Accessed October 14, 2026.
- Internal Revenue Service, energy-credit FAQ under Public Law 119-21. Accessed October 14, 2026.
- Internal Revenue Service, Notice 2025-42, beginning of construction for Sections 45Y and 48E. Accessed October 14, 2026.
- Federal Trade Commission, Cooling-Off Rule, 16 CFR Part 429 (eCFR). Accessed October 14, 2026.
- U.S. Department of Energy, “Decisions, Decisions: Choosing a Solar Installer”. Accessed October 14, 2026.
- National Laboratory of the Rockies, PVWatts Calculator. Accessed October 14, 2026.
