Note on terms: Bids, quotes, proposals… all the same to me. We are talking about the contract a solar installer is proposing.

As a former solar installer, seller, researcher, and site-planner I would look at any solar installation quote with an eye to the following considerations.

Considerations for homeowners seeking solar bids:

Price of the system (per installed kilowatt)

The most important thing to understand for comparing bids is price in terms of $/installed kilowatt. The system designs may vary from different installers, which is fine. The way to handle that difference as a buyer is to compare price per installed kilowatt. Let the installer worry about factoring in the cost of trenching, or navigating your funky roof. Your job is to understand installed kilowatt price: total contract price/system size in kW.

The installed kilowatt price bundles everything required to get the system producing power:

• Modules (panels).
• Inverter(s) — converts DC from panels to AC your home uses. Could be a string inverter, microinverters, or power optimizers.
  • My opinion is that people should go with microinverters, unless the site has absolutely ZERO shade.
• Racking & mounting hardware. {roof attachments, rails, clamps}
• Wiring, conduit, disconnects, breakers.
• Labor {installation crew, site survey crew, system design, structural engineering, electricians}.
• Permitting fees.
• Utility interconnection fees.
• Installer overhead & margin.

Terms:

• Pre-incentive price — compare raw system cost before federal tax credit (ITC), state rebates, or utility incentives.
• System size (kW) — confirm you’re comparing similarly sized systems. A cheaper quote may simply be a smaller system.
• Equipment tier — premium panels and inverters cost more but affect long-term yield and warranty coverage.

Premium panels compared to economy panels

My take is that both are great, and the panel that pays for itself best is the one pointed directly at the sun. Premium panels will usually have less of a gradual decline in performance, and be more space efficient. Economy panels may pay for themselves faster. shrugs Either choice is fine.

Convenience & Installation Schedule

What the installer typically handles:

• Pulling building permits with the city or county.
• Scheduling the physical installation crew.
• Submitting interconnection paperwork with Idaho Power.

What the homeowners, typically handle:

• Signing the utility interconnection agreement.
• Being available for the utility’s final inspection.
• Monitoring system activation (some installers help; many don’t).

Timeline to expect in the Treasure Valley:

Boise note: Idaho Power is your utility if you’re in most of the Treasure Valley. They have an interconnection process that is generally smooth, but can slow down in spring when many installers submit at once.

What to compare timeline-wise across bids:

• Does the installer give you a projected timeline in writing?
• Do they handle all permit submissions, or do they hand that off to you?
• Is there a clause about delays — who is responsible if the project drags past a promised date?
• Is the installation crew in-house, or subcontracted? (Subcontracted crews can mean less accountability if something goes wrong).

Risks

Most solar installations go smoothly. But knowing where things can go wrong is probably wise. There are a few good companies in the Treasure Valley. I would prefer a warranty from a more seasoned company, with offices within 100 miles.

Roof condition Solar panels are warrantied for around 25 years. If your roof needs work in year 8, you’re paying to remove and reinstall the panels. Ask your installer to assess your roof age and condition honestly before signing. If they don’t mention it, ask.

Fun trick: If a solar installer diagnosis a roof replacement as neccessary for installation, you may be eligible for tax credits to help pay for the roof repair.

Shading changes over time Trees grow. A system designed around today’s shading may underperform in 10 years. Ask if the site assessment accounted for tree growth, and whether microinverters or power optimizers were specified for that reason.

Production estimates Every proposal includes a first-year production estimate (in kWh). These are projections, not guarantees. Ask what assumptions were made — tilt, azimuth, shading factor, degradation rate. A suspiciously high estimate is a sales tool.

Warranty coverage gaps There are typically three separate warranties:

• Panel manufacturer warranty — usually 25 years on performance, 10–12 years on product defects.
• Inverter warranty — 10–25 years depending on brand and type.
• Installer workmanship warranty — covers roof penetrations, wiring, mounting. Often only 5–10 years, and only as good as the company backing it.

If the installer goes out of business, the workmanship warranty goes with them.

How long has the installer been around so far?

Good luck with your solar panels!
Thomas Lansing

Idaho State Tax Deduction

• The state of Idaho deducts up to $20,000 through the Residential Alternative Energy Tax Deduction to homeowners with solar projects.
• This is a deduction for state income tax, so you will need to have a tax liability for this to matter. In other words; you must have income tax owed to the state of Idaho.
• You can see the details for the Idaho tax deduction here: Idaho Governor’s Office of Energy and Mineral Resources

The residential alternative energy tax deduction allows taxpayers an income tax deduction of 40% of the cost of a solar,… This can be applied in the year that the energy system is installed. 20% can be deducted each year for an additional three years. The maximum deduction in any one year is $5,000. The total maximum deduction is $20,000.

The Big Federal Tax Credit

The Investment Tax Credit (ITC) is a tax credit that reduces the amount of federal income tax owed by a business or individual. The ITC is a dollar-for-dollar reduction in the amount of tax owed.

• The federal government will apply a credit to your federal tax situation, for 30% of the solar installation cost.
  • for example a $50k solar system will land you a $15k tax credit.
  • The credit hangs around for 22 years, so you will get that money.
• Link to the IRS.gov page that elaborates the ITC
• Link to the SEIA page related to Federal Solar Investment Tax Credit (ITC)

Other incentives

Incentives for solar projects change over time. The two above are the ones you really don’t want to miss out on. You may qualify for further incentives, and a (mostly complete) list can be found on the SEIA website.

Disclaimer: I am not a tax professional, and your solar sales person is probably not either. Please consult a tax professional for further information on solar tax incentives.

The Main Idea: Cost saving is a better investment than increasing earnings.

1. A power bill, probably from from Idaho Power, is an expense for your investment portfolio. You must pay it, you do not get that money back later, you cannot expect a return on your power bill. The power bill is subtracting from your portfolio balance over time.
2. A typical investment like retirement savings, stocks, bonds, a rental property,… is going to yield some positive return. You pay now, for gains later. The investment is adding to your portfolio balance over time. You will pay taxes on these types of gains.
3. Solar is a different, third thing. A double play. By eliminating the power bill expense from your portfolio you add to your portfolio balance. Totally untaxed gains! As an additional bonus; the value of your property goes up by some amount (similar to the value of your solar system) so the installation cost is more like paying your mortgage than paying rent. You have added to your savings.

Commcercial solar installations may also be eligible for accelerated depreciation, but let’s not go there today.

What about investing in X, Y, or Z?

Same idea. I hope your IRA gets you great returns, and your rental property does well, and your stocks go up and to the right. However, I argue that solar installation is a superior choice. Panels remove your power bill, AND contribute to the value of your home. Any other investment will hopefully make a return for you, but not address the ever growing negative power bill in your portfolio. If your next investment charged you several hundred dollars a month would you still choose it?

Disclaimer: I am not a financial advisor, and I am certainly not YOUR financial advisor.

Good luck with your solar panels!
Thomas Lansing

• Idaho has latitude between 42° N to 49° N
• We get lots of sun at these lattitudes, particularly with our clear skies, and upland desert ecosystems.
  • You can verify this by visiting this .gov website with a searchable database: National Renewable Eneregy Laboratory: Solar Radiation Database, where meteorologists measure the sunlight over time.
• Boise gets about 4.5kWh/m²/Day - more than enough for a solar system to make sense.
• The whole state objectively gets lots of sun.

What about the snowy winters and smokey summers?

Snow and clouds will partially impede the panel’s energy production. Cloudy or smokey weather still has lots of diffused light for the panels to be useful, and properly designed system will accommodate these coniderations.

Will my solar array require snow removal?

Probably not; of course it depends but here are some considerations:

• Snowfall slides very easily off of solar arrays angled 30° of arc or more from the ground.
• An efficient angle of arc for solar arrays at our lattitude is ~45° from the ground.
• Panels heat up quickly in the sun and the snow will typically slide off without mechanical intervention.
• When to worry about snow: IF you have really heavy snowfall (Sun Valley, McCall etc.) AND a flat roof, then it is time to get a ground mounted system or plan on shoveling.

Three ideas to consider:

1. Winters are often very sunny in Idaho.
2. Solar panels produce more energy in colder weather:
3. Grid-tied solar systems produce heaps during the summer and bank up credits with the utility for the winter.

This section is for those who want to dive too deep into this temperature idea:

Solar panel temperature coefficients:

A solar panel temperature coefficient is a measurement that indicates how much a solar panel’s power output decreases for each degree Celsius increase in temperature, essentially showing how well a panel performs in hot conditions.

A negative temperature coefficient (typically ranging from -0.2% to -0.5% per °C) means that as the panel gets hotter, its power output decreases by that percentage per degree. A LOWER temperature coefficient means the panel is less affected by heat and performs BETTER in high temperatures.

Importance: When choosing a solar panel, a lower temperature coefficient is desirable as it indicates less power loss in hot climates, like Idaho in the summer.

Conclusions

It is generally very sunny in Idaho in the ways that are important for solar panels to produce properly. Your sales rep is probably right about this one.

Good luck with your solar panels!
Thomas Lansing