Want a cheaper solar quote? Be careful what you're asking for.
There's a movement happening in the solar industry at the moment.
And it's a little concerning.
Consumers are being encouraged to ask solar companies for a detailed breakdown of absolutely everything.
What's the cost per panel?
What's the installation cost?
How much are the batteries?
What's the inverter costing the installer?
And how much profit are they making?
You'll see it on Reddit, Facebook groups and all sorts of online discussions.
Now, don't get me wrong. I'm all for transparency. You should absolutely understand what you're buying and what you're paying for.
But there's a big difference between wanting a fair price and trying to squeeze every last dollar out of the company installing your system.
And I think a few people are losing sight of that.
You actually WANT your solar installer to make a healthy profit.
Seriously. You really, really do.
Let's talk about that $30,000 solar system.
Let's say you're buying a reasonably standard residential system.
22 solar panels, an inverter, a battery and installation.
Total price: $30,000.
Take away GST, the equipment, installation labour and all the other direct costs associated with getting that system onto your roof.
There might be around 20% left over.
That's $6,000.
Sounds like a lot, doesn't it?
Except that isn't $6,000 of money going straight into the owner's back pocket.
That money needs to help pay for:
Office staff and administration.
Vehicles, fuel, maintenance and insurance.
Warehousing and equipment handling.
Marketing and customer acquisition.
Software, accounting and professional services.
Warranty administration and after-sales support.
Rent, electricity and all the other wonderfully exciting costs of running a business.
And, yes, there needs to be something left over as actual profit.
That's not greed. That's business.
What happens when everyone races to the bottom?
Here's the thing.
Solar isn't a one-off purchase like buying a toaster.
You're buying an electrical system that's going to sit on your roof for the next 20–30 years.
You'll want someone to answer the phone if something goes wrong. You'll want someone who can help with a warranty claim, troubleshoot an inverter, or send someone out if your system stops working.
You'll want a company that's still around in five or ten years.
But those things cost money.
A company operating on wafer-thin margins has very little room for error.
A couple of jobs that go sideways, an unexpected warranty expense, a quiet month or a change in equipment pricing can make life very difficult.
And when a business starts struggling financially, something has to give.
Maybe it's the customer service team. Maybe it's the time spent designing systems properly. Maybe it's the quality of the installation. Maybe it's the business itself.
I'm not suggesting that every cheap quote is bad, or that every expensive installer is brilliant.
There are certainly inefficient companies out there, and consumers shouldn't have to pay for that.
But if your entire purchasing strategy revolves around getting the lowest possible price, you're potentially rewarding exactly the behaviour you don't want in a long-term service provider.
Price is important. But it shouldn't be king.
When comparing solar companies, I'd be looking at a few things before getting too excited about saving another $500.
1. Reputation
What are their Google reviews saying? Not just the star rating. Read the actual reviews. Are customers talking about good communication, tidy workmanship and support after installation?
2. Quality of installation
Who is actually doing the work? Are they qualified? Do they have proper installation processes? Are they taking the time to design and install the system correctly?
3. Customer service
Can you actually get hold of them? Do they answer questions? Do they seem like decent people who genuinely give a damn?
4. Financial stability and accountability
Will this company still be around to support your system?
One thing worth looking into is SOLASSURE™ certification. Developed by the Sustainable Energy Association of New Zealand (SEANZ), SOLASSURE is an independent quality assurance programme that assesses solar providers across areas including technical competence, business practices, customer service and financial stability.
It's another useful indicator when deciding who to trust with your investment.
We need good solar companies to stay in business.
Here's my point.
The New Zealand solar industry needs good installers. We need competent electricians, experienced designers, decent customer service teams and companies that are financially healthy enough to stand behind their work.
Those businesses need to make money.
Not obscene amounts. Not at the expense of consumers. Just a sustainable profit that allows them to employ good people, invest in their operations and look after their customers.
So, by all means, question your solar quote.
Make sure the equipment is right. Make sure the design is right. Make sure the price is fair.
But don't automatically assume that every dollar a solar company makes is a dollar they've somehow stolen from you.
Sometimes, the cheapest quote isn't a bargain.
Sometimes, it's a warning sign.
And if you're spending $30,000 on a system you expect to rely on for decades, I'd argue that the company behind it is worth a little more consideration than the price tag alone.
Buy solar from a company you actually want to still be there in ten years.
That's worth paying for.
