Are you considering solar energy? Have you just received three quotes, all for the same products but at completely different prices? Are you wondering, “Why are these prices so different for the exact same product?”

This is one of the most frequent questions we hear from homeowners like you who are looking to make the switch to solar.

The guy charging a lot seems a bit dodgy, doesn’t he? But before you jump to conclusions, let us, with our years of experience in the solar industry, shed some light on this issue. We typically sit on the more expensive side of solar installations and we’ll share exactly what influences this.

In this article, you’ll discover exactly why some companies charge more or less than others, what drives these price discrepancies, and how to make sense of it all so you can make the best decision for your solar investment.

Access To Solar Brands And Deals

One of the key factors influencing the price you’re quoted for solar products is the access that some companies have with certain brands and the deals they may negotiate with them. Larger solar companies often have the advantage of buying in bulk or establishing partnerships with specific manufacturers. This allows them to secure discounts that smaller companies might not have access to.

Think of it like this: if a company is purchasing hundreds of solar panels at a time, they’re likely to get a better price per unit than a company buying just a few. These savings can then be passed on to you, the customer. However, this doesn’t always mean that the lowest price is the best option. Sometimes, companies might offer lower prices on products that aren’t as high quality or don’t come with the best warranties.

On the flip side, smaller companies might charge more because they don’t have these bulk buying deals in place. However, they might offer more personalised service or use higher-end products that they believe offer better value in the long run. It’s all about understanding what you’re getting for your money.

This variation in access to brand deals is one reason why you’ll see different prices for the same solar products from different companies. But it’s not the only factor at play. Let’s dive into how the size of the company and its overheads can also impact pricing.

Size of the Company

Another significant factor that influences the price you’re quoted is the size of the company and the associated overheads. Larger companies often have more extensive operations, including multiple offices, a larger workforce, dedicated operations managers and customer care teams. These added expenses contribute to higher operational costs, which are often reflected in their pricing. 

For example, a national solar company with a big brand presence needs to charge more to cover its higher overheads. While this can lead to higher prices, it can also mean a more established reputation and potentially better customer service. 

It’s like buying a cup of coffee, you’re not just paying for the coffee beans, milk, and sugar; you’re also contributing the café’s rent, staff wages, and other operational costs.

On the other hand, smaller, local companies might operate with lower overheads. They may have fewer employees, less expensive office spaces, and lower operating costs. This leaner operation can allow them to offer more competitive pricing. However, while lower overheads can lead to lower prices, it’s important to ensure that these companies still offer the quality and reliability you need.

It is also important to consider the longevity of the company. Since 2011, 750 solar companies have gone under and a lot of these were pop up solar companies with no commitment to warehouse rent,  building a customer base or a good reputation. 

In summary, the size of the company and its overheads play a crucial role in the pricing of solar products. While larger companies might charge more due to their extensive operations, smaller companies might offer lower prices due to their leaner setups. But pricing alone shouldn’t be the only factor in your decision; service quality and the company’s reputation are also key considerations.

There are a few ways to see if a solar company is committed to being around for a long time. 

• Online Reviews 
• Established Website and Social Media
• Customer Case Studies
• Renting Warehouses or Office spaces
• Company Vehicles

Frequency and Size of Installs

The frequency and size of installations that a solar company handles can also significantly affect the prices they charge. Companies that regularly perform larger or more frequent installations often develop greater efficiencies in their processes. These efficiencies can include streamlined logistics, more skilled labour, and bulk discounts on materials, all of which can lead to cost savings.

For instance, a company that installs solar systems every day may have a well-honed process, reducing the time and labour required for each job. They might also purchase equipment in larger quantities, further reducing costs. These savings can then be passed on to you, resulting in a lower overall price for your installation.

On the other hand, a smaller company that only installs a few systems each month might not have these efficiencies. They may spend more time on each installation or pay higher prices for materials due to smaller order sizes. As a result, their costs, and the prices they charge you, can be higher.

In short, the frequency and size of a company’s installations can influence their pricing strategy. High-volume companies might offer lower prices due to efficiencies, while smaller companies might charge more. Balancing cost with service quality is key when choosing a solar provider.

Now that we’ve covered the main factors that influence solar pricing, let’s move on to what you should consider beyond just the price when choosing a solar company.

What to Consider Beyond Price

While price is an important factor in choosing a solar company, it’s not the only thing you should consider. Focusing solely on cost can sometimes lead to compromises in quality, service, or long-term satisfaction. Here are a few key aspects to weigh alongside the price:

1. Quality of Products and Installation

Not all solar panels and inverters are created equal. Even if two companies are offering the same brand, there might be differences in the model, efficiency, or warranty that can affect the overall performance of your system. 

Additionally, the quality of the installation itself is crucial. A poorly installed system can lead to issues like reduced efficiency or even damage over time, which could cost you more in the long run. When comparing quotes, ask about the specific products being used and the experience level of the installation team.

2. Service and Support

Solar systems are a long-term investment, so it’s essential to choose a company that offers reliable service and support. Consider how responsive the company is to your questions, how they handle after-sales service, and what kind of customer support they provide. 

A company that offers a slightly higher price but excellent service and support might be worth the extra cost, especially if it means peace of mind over the years to come.

3. Warranty and Guarantees

Warranties are another critical factor. A company offering a lower price might cut corners on the warranty, offering less coverage for the panels, inverters, or the installation itself.

 A robust warranty can save you significant money in case anything goes wrong, so it’s vital to understand what is and isn’t covered. Ensure that you’re getting a comprehensive warranty that covers both the equipment and the workmanship.

4. Company Reputation

Lastly, consider the reputation of the company. Look for reviews, testimonials, and case studies from previous customers. A well-regarded company is more likely to deliver a positive experience, even if their quote isn’t the cheapest. 

A solid reputation often indicates reliability, quality, and a commitment to customer satisfaction, all of which are invaluable when making such a significant investment.

5. Subcontractors

The use of subcontractors can also affect pricing. While subcontracting isn’t always a negative, we’ve seen situations where the installation company becomes unreachable when issues arise. We touch on this topic in our article here

Watt a Perfect Match: Solar and Stability.

Choosing a solar company isn’t just about finding the lowest price, it’s about finding the best value for your money. By understanding why prices differ, from brand access and company size to installation efficiency, you’re better equipped to make a decision that balances cost with quality and long-term satisfaction.