National Solar Installers vs. Local Solar Installers

When you are seeking to work with a solar company for your renewable energy project, you want the company to provide great customer service, do quality work, and offer a fair price. In the solar industry, you will often be faced with a choice between large national solar companies or more regionalized local solar installers that cover a specific geographic area. The questions then become, which of these companies is going to have the greatest level of workmanship, support after installation, affordable financing options, and fair pricing? The following are a few comparisons to help in the decision-making process of selecting the right type of solar installer to meet your expectations.

Which Type of Solar Installer is Less Expensive?

There are a lot of details that can make a solar proposal more attractive than another. Often, the price is the most significant difference. However, when all things are equal, it is surprising which type of firm, national or local, can install your system for less. 

While national companies have more resources and often churn more projects, they typically do not have the lowest project price. According to a study by National Renewable Energy Laboratory (NREL), national solar installers provided clients with a higher estimate 70% of the time, compared to smaller, regional installers. These estimates were 10% more costly on average. Why? National solar companies may not have installers or dedicated teams in your area and therefore subcontract the work to a local firm. These national firms will typically have higher overhead costs and may be held accountable to shareholders or investors for greater financial performance and returns, directly affecting their pricing matrix.

Smaller, more regionalized solar companies often face less pressure for high profit projects and maintain margins more suitable to the local solar market in which the firm operates. An additional benefit many regional solar providers have is their relationship to existing local contractor partnerships. These relationships help to form a tight bond in the local area and further help to serve as a reliable and affordable subcontractor resource if needed. Lastly, every project and relationship matter to a local solar installer, therefore they are often more involved in ensuring your project meets or exceeds your expectations.

Who Does Better Work?

National solar installers will always be associated with the completion of more solar projects, and often larger projects, than regionalized installers. However, this does not mean they are more qualified in completing the work themselves. Oftentimes, national installers outsource stages of a project to subcontractors who have staff with local boots on the ground. Subcontractors are often used for visiting the site to gather measurements, photos, and onsite construction details. They may also be used for the array installation and electrical work. Undoubtedly, national companies will often select experienced subcontractors for this type of work. However, when more hands are involved with your project and things get miscommunicated, accountability can be hard to determine between the national solar company and a subcontractor. 

Smaller, regional solar installation companies often will maintain a central headquarters and/or may have a handful of remote offices spanning the territory they cover. These locations are often staffed with their own team or regional industry partners. By having local teams dedicated to working within a geographic area, regional solar installers create tight-knit work environments fueling teamwork and communication. These teams will often be familiar with the area, have local relationships within the community, and provide first-hand knowledge of the local utility solar policies and building codes. 

Additionally, reputable national and local solar installation companies will often have North American Board of Certified Energy Practitioners (NABCEP) on staff. This certification is one of the leading professional development and accreditation organizations in the solar industry. Choosing a solar installer with local solar energy associations and community affiliations is a great way to learn more about how a company values education, training, and the advancement of solar energy in your area.

Who has Better Service?

One of the largest differences between national solar installers and local or regional installers is their ability to provide exceptional service before, during, and after the array is built. Local installers rely heavily on satisfied clients who are telling the people they know about their solar experience. These installers typically care more about their reputation, your satisfaction, and your willingness to refer others in the area. Google reviews are a great place to start when researching a company to learn more about their client’s experiences and how they treat their employees.

In the event you need service and support down the road, consider who would perform the service if you bought from a national company that subcontracted a majority of the work. While there are fly-by-night operations at all levels, local installers are typically more invested in the community and laser-focused on serving the needs of their clients.

Who Offers More Financing Options?

Typically, financing options for solar are very similar regardless if you are seeking to work with a national or local solar installer. Financing options typically have more to do with the relationship the solar company has with a finance provider. Solar loan programs offering little or no money down with extended terms and fixed, low-interest rates can be provided by a majority of solar companies regardless of their size. However, a local solar company may have an edge when it comes to partnering with a regional bank or credit union who is offering a solar loan program in your area. These local partnerships can often lead to offering more flexible financing options with lower rates.

Which is Better?

The answer to that question is for you to decide. The best recommendation is to ask good questions, do some research into the company and seek feedback from local solar owners you know and trust. There are great solar companies of all sizes and similarly some to avoid. 

Source:

• O’Shaughnessy, Eric & Margolis, Robert. “Using Residential Solar PV Quote Data to Analyze the Relationship between Installer Pricing and Firm Size.” National Renewable Energy Laboratory, April 2017,  https://www.nrel.gov/docs/fy17osti/68010.pdf