1. The Solar Panels Aren't What's Driving the Cost
Solar panels get most of the attention in a solar proposal but they usually only account for 15 – 20% of your total system cost! Many companies love promoting “AAA-class solar panels” or “Tier-1 solar panels” because they sound impressive and are easy attention-grabbers, but those labels don't mean much, especially with most installers offering the exact same solar panel makes and models. The truth is that the choice of solar inverter has a greater impact on price, as well as performance, monitoring, reliability, safety, and long-term serviceability than the panel manufacturer and warranty. Also, the choice of mounting system is what keeps your roof and your solar panels anchored and safe. This is all to say that having good solar panels doesn’t necessarily mean that you will have a great solar system.
A solar system is an entire electrical system, not just a product bundle. A well-installed solar system is not only about having good components, but having accurate consumption and production modelling, and considers futureproof details from expansion design layouts to wire sizing or an extra conduit in the trench for future needs.
Electricity consumption is on the rise, and the trend is that we will only be increasing our electrical needs – so having a solar system with future-proof features is important.
This is why two quotes using the same solar panels can represent very different systems.
If you are comparing solar quotes, ask:
- what inverter system is being used and why they chose it
- how the system size was calculated
- what mounting system is being used – features and warranties
- which future-proof measures are being considered in the proposal
- Read our blog How To Compare Solar Quotes to be prepared for solar proposal presentations!
2. Your Salesperson May Cost More Than You Think
Solar pricing is not just about equipment and labour. As in any other industry, overheads are an obscured factor – and the bigger the company, (often) the bigger the overhead. Marketing campaigns, lead-generation platforms, door-to-door knockers, sales reps, and commission structures all have to be paid for by someone, and they are usually built into the final price a homeowner sees.
That does not automatically mean a higher-priced quote is unfair. Good design, professional project management, proper permitting, skilled labour, and responsive service all have real value. The issue is transparency. Homeowners deserve to understand whether they are paying for better engineering and execution, or whether they are paying for a sales-heavy business model with a lot of customer acquisition cost built in.
If you want to find out more on what to watch out for when choosing a solar installer read our blog 5 Red Flags to Watch for When Choosing a Solar Contractor in Alberta.
3. The Financing Fine Print Nobody Talks About
Financing can make solar feel more accessible, but it can also make the true cost of the system hard to determine. A 3- or 5-year “0% financing” offer may sound simple on the surface, but homeowners should always look at the full structure of a financing offer (a loan) before assuming that it’s the best deal.
Financing products include lender fees, dealer fees, interest and other costs. In many cases, the difference between the cash price and the financed price is significant. We believe financing should be discussed slowly and transparently because it directly affects your payback period and total return on investment. The monthly payment matters, but the total amount paid over the life of the project matters more. A system that looks affordable month to month may not always be the best financial decision once all fees, interest, and repayment terms are included.
If you’d like to know what we think about this point in more detail, including examples and breakdowns, head over to our Is FinanceIt Worth It? The Truth About 0% Financing blog page.
4. System Size Recommendations Aren't Always Accurate
System size is one of the most important parts of a solar proposal, and it is also one of the easiest places for the numbers to drift. Two companies can look at the same home, the same roof, and the same homeowner goals, then recommend noticeably different system sizes. Sometimes that difference comes from design philosophy. Other times, it comes from poor data analysis.
In Alberta we have very different seasons that have different electrical needs, which is why electrical bills go up in winter. Other factors such as home occupancy (renters, seasonal visitors, AirBnB), electric vehicles, hot tubs, and air conditioning make a big difference in the home’s consumption profile.
This is where some proposals become quietly unreliable. If an installer extrapolates from limited information, the system may be undersized or modelled around assumptions that don’t reflect how your home actually uses electricity. That can affect everything that follows: the system size, the expected offset, the financial forecast, and most importantly, the homeowner’s understanding of what the system will realistically do for them.
Our proposals are based on a full 12 months of electricity bills whenever possible, because it gives a much more complete view of annual consumption. If 12 months aren’t available, we use real-life data from other homes of similar size and profile to accurately predict expected consumption. We also ask about future changes and timelines. If you are planning to add an electric vehicle, air conditioning, a hot tub, a suite, or other major electrical loads, those details should be part of the design conversation before the system size is finalized.
A good solar design is about matching the system to the home’s real electrical profile, future needs, site conditions, and financial goals. Better data leads to better design, and better design leads to a proposal that a homeowner can trust.
If you currently have a solar system that isn’t paying for all your electricity as you expected, we have a blog that explains Why A Solar System Isn’t Offsetting Your Bills.
5. Solar Payback Calculations Are Only as Honest as Their Assumptions
Solar payback calculations are financial forecasts that rely on several important assumptions:
- Your electrical consumption, utility rate and utility fees
- The escalation rate (rate at which electricity costs rise each year)
- Your electricity rate - pre-solar and post-solar rates (how much you pay for electricity now, and how much you will pay for electricity after you’ve gone solar)
- Your designed solar system performance (shading and other losses)
And like any model, the outcome depends heavily on the inputs. Changing a couple of percentages in one of these assumptions can make solar look much more, or less profitable.
This is why two quotes with identical equipment can present completely different financial outcomes.
If you want to keep reading on Solar Payback Calculations...
If this section made you curious about how much those assumptions can change the final numbers, I did a deeper breakdown using my own home as a real-life example. In that article, I walk through how changes in consumption data, escalation rate, electricity rates, and shading can shift payback periods and lifetime savings, even when the solar system itself looks almost identical on paper. You can read the full breakdown here: Deep Dive Into Solar Payback: Let Me Show You Real Numbers.
