National vs. Local: How to Choose the Better Solar Option

With a simple Google search for "solar installers near me" you could be easily overwhelmed with all kinds of ads, offers and flashy claims. But not all solar companies are created equal: Some are locally owned and operated, while others are big national companies that might have a subcontractor in your area.

About 70% of the time small installers quote lower prices for solar installations compared to large national firms, according to a study by the National Renewable Energy Laboratory.

It is a bit counterintuitive: Economies of scale for national installers don't always translate into lower project costs. This might be due to the fact that national companies often work with subcontractors, which can drive up the price, said Gilbert Michaud, an assistant professor in the School of Environmental Sustainability at Loyola University Chicago.

Local installers tend to have more personal customer service or slightly lower costs. But national installers might offer a bigger range of solar products as well as more financing options.

Which is better? There are pros and cons to both national and local installers and broad trends to consider -- and really, each company is different. Here's everything you need to know.

What's the difference between national and local solar installers?

You have probably heard of the big national solar companies like SunPower or Tesla, for example, that operate all over the country.

On the other end of the spectrum, you have local and regional installers. Take NRG Clean Power, a regional firm that operates only in Texas and California, but scored just as high as some of the national players on CNET's ranking of solar companies.

Some of the differences between local and national installers are intuitive. "I would equate this to the 'buy local' movement," said Michaud. 

Here's a closer look at the differences between the two.

National vs. local solar installers: Factors to consider

There's lots of ways to compare these two types of installers, depending on what's important to you. Here are some things to consider.

Costs difference 

National installers might be pricier for the total cost of a solar system, but that also assumes you're buying or financing it outright. Don't forget to consider a power purchase agreement or solar lease -- which national installers might be more likely to offer.

"Those models typically have less savings over the long run, but they can offer homeowners the ability to put solar on their roof at low to no upfront cost and begin saving money right away," said Becca Jones-Albertus, the director of the US Department of Energy Solar Energy Technologies Office.

Regardless of how you pay for your solar system, the best way to get a good price is to get multiple quotes -- from a mix of local and national installers -- for your specific project, said Jones-Albertus.

Quality of service or products 

"Quality can vary a lot by location, by company, by market conditions," Jones-Albertus said.

It's hard to generalize here for the entire category of local or national installers. Michaud points out that subcontractors can impact the quality of the work, too.

"The big national installers usually have that name, but they might not be the ones that are physically on your site, working on the project from start to finish," he said.

Again, it depends on the specific company, but Michaud said, "The quality on the local level is probably better," and it might be easier to contact a local company if any issues arise during installation.

One way to feel more assured about quality is to look at what products and warranty length each company offers. Each installer offers a different menu of products from panels, inverters, batteries and apps. As far as warranty, you should seek at least a 25-year warranty on the panels themselves, and a 10-year warranty on the entire solar system, Jones-Albertus said.

Speed of service

Almost all solar installers are going to put panels on your roof in the span of one or two days, tops. "In terms of the installation phase, that's probably about the same" between local and national installers, Michaud said.

But a lot needs to happen before installation day: Financing, permitting and site assessment, to name a few. Some of these things are within a company's control and some aren't.

Jones-Albertus recommends asking each installer you talk to what their typical timelines are. You can also ask how big their staff is and whether they use subcontractors, again to gauge potential speed. 

Local installers could have a small advantage here if they're experienced at navigating the local permit process, and could potentially get your installation approved quicker, Michaud said.

Solar certifications

There's one major solar certification given out by the National American Board of Certified Energy Practitioners. "It's pretty standard. Most people have it these days," Michaud said.

This ensures an installer knows how to install and properly design a solar system. 

So whether an installer is local or national, "that is a certification to look for," Jones-Albertus said. You can check for certified installers through the NABCEP directory. 

Solar financing options

If you choose to finance your solar system, national installers might be a better choice.

"It's more common that national installers will have access to lower interest rates, but that is not always the case," Jones-Albertus said.

Again, national installers might also be more likely to offer solar leases or power-purchase agreements.

You also don't have to finance your solar panels through an installer: Some banks offer solar loans, and you can also tap your home equity, Jones-Albertus said.

But if you're looking to layer in state-level financial incentives or rebates, Michaud said a local installer might have a better idea of what you qualify for.

Online reviews

It's fairly easy to find online reviews of solar companies. "Like with most purchases, getting reviews is an important step in the process," said Jones-Albertus.

But always take online reviews with a grain of salt: Most people who write them had a uniquely great or uniquely bad experience. "Reviews can be a slippery slope," Michaud said.

Instead, Jones-Albertus recommends sourcing your own reviews: Ask your friends or neighbors who have solar what they thought of their installer. Or even ask a potential installer to connect you to past clients in your local area. 

Company size 

There might be a sweet spot when it comes to the size of a solar installer.

A big national company might treat you like just another client, but a super tiny local installer might be overwhelmed with their workload.

Michaud said a midsize firm, with about 10 to 30 employees, might be just right: Enough to have specialized experts and its own team of installers, but not so big that you get lost in the shuffle.

In-house installers vs. subcontractors 

National installers are more likely to use subcontractors for installation, but that's not necessarily a bad thing.

When you're talking to an installer, Jones-Albertus says to listen to how they talk about those subcontractors. Ask how they ensure quality, how long they've worked with the subcontractors, and how many other installations they've done.

Benefits and drawbacks to opting for a local solar installer

Local installers have a lot going for them, but they're not perfect. Here's a quick recap of the pros and cons.

Benefits and drawbacks to hiring a national solar installer 

The big names are big for a reason: Here's what's good about them, but also where they fall short.

National vs. local solar installer: Which is better? 

"It's a highly circumstantial, comprehensive evaluation," Michaud said.

Deciding between a local and national installer depends on your specific situation (are you buying, financing or leasing the panels?), as well as where you live (which installers operate in your area?).

All else being equal, you might make the choice along more ideological lines: Maybe supporting a local company just feels good to you. "You're actually helping and impacting your friends and your neighbors and folks in your community" by using a local installer, Michaud said. 

For Jones-Albertus, it goes back to that age-old advice: Talk to multiple installers and consider your options from there.

"In the end, making any kind of major purchase decision, having some references and doing other diligence to make sure you feel good about the company and what they're offering, are important," she said.

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