The solar proposal checklist: red flags worth a second look

Solar loans often include a dealer fee folded into the amount you borrow. Without a cash price for the same system, you can't see how much of the loan is equipment and how much is fee.

Ask: What is the cash price for this exact system, and what is the dealer or platform fee on the loan, in dollars?

Price per watt is the simplest way to compare offers of different sizes. If the proposal hides either the size or the price, you can't compare it with anything.

Ask: What is the system size in watts DC, and what is the total price before any incentives?

The federal 30% residential credit ended for systems installed after 2025. Some sales tools still show it, or show incentives that don't apply to your utility or your situation.

Ask: Which incentives are included in these numbers, who pays each one, and what happens to my price or payment if one isn't received?

Many solar loans were built around homeowners paying down the old federal credit. With that credit gone for systems installed after 2025, a payment that rises if you skip the paydown can be an expensive surprise.

Ask: What is my monthly payment if I make no lump-sum paydown, and when and by how much would it change?

A 2.9% annual escalator roughly doubles the payment over 25 years. A proposal that only shows the first-year payment hides the most expensive years of the contract.

Ask: What is the annual escalator, and what will my payment be in year 10, year 20 and the final year?

Every savings figure starts with production. If you can't see the kWh estimate and how it was made, you can't check it against a public model or another bid.

Ask: What first-year kWh estimate are you using, which software produced it, and what shading and system losses did you assume?

Trees, chimneys and neighboring roofs can cut output sharply, especially in winter when the sun is low. A production estimate with no shading analysis is a guess.

Ask: Can you send the shading report for each roof face, including the annual solar access percentage?

Most new net-metering customers in Kentucky now get a credit below retail for the energy they export. Valuing every kWh at retail can overstate first-year savings by a quarter or more.

Ask: How many kWh a year do you assume I export, and what credit per kWh did you use for them?

Long-term savings are very sensitive to this single number. A 5% annual increase compounds into a far bigger 25-year figure than 3%, and nobody knows which is right.

Ask: What annual utility rate increase did you assume, and can you show my savings at 1%, 3% and 5%?

Ownership decides who pays for repairs, who can claim tax benefits and what happens when you sell the house. It should never be ambiguous.

Ask: Who will hold title to the equipment, and who claims any federal credits or depreciation on it?

With a lease or PPA, a buyer usually has to qualify for and take over the contract, or you buy it out. Solar loans are often secured by a filing that a title search will find at closing.

Ask: If I sell in year 7, what are my options, what does each one cost, and can you send me the buyout schedule?

Projects stall for reasons outside your control. You should know before signing whether you can walk away without a fee if an approval isn't granted.

Ask: If the utility, the permit office, my HOA or the lender doesn't approve this project, can I cancel without a fee, and by what date?

Detaching and resetting an array for a roof replacement can cost thousands of dollars. Leases and PPAs often require the provider's own crew, on the provider's schedule.

Ask: What would it cost today to remove and reinstall this system for a roof replacement, who must do the work, and who pays?

A guarantee that pays a few cents per missing kWh, settled only every few years, may be worth far less than it sounds. The details decide its value.

Ask: How is the guarantee measured, how often is it settled, and at what rate per kWh are shortfalls paid?

An "or equivalent" clause lets the installer change equipment after you sign. Warranties, output and monitoring all depend on the exact models.

Ask: Will you list the exact panel, inverter and racking models in the contract and require my written approval for any substitution?

Manufacturer warranties cover the equipment, not the installation. If the installer closes, the workmanship warranty is the one most likely to disappear unless a third party backs it.

Ask: How long is your workmanship warranty, does it cover roof leaks, and is it backed by a third party if your company stops operating?

Several large residential installers and financiers went bankrupt in 2024–2026, leaving owners locked out of their own monitoring. Without data, you can't prove a warranty or guarantee claim.

Ask: Will the monitoring account be registered to me, and how do I keep access if your company stops operating?

Kentucky law lets the PSC set the credit for exported energy. For new customers in 2026, KU's NMS-2 credit is 7.534¢ per kWh and LG&E's is 7.089¢, below retail. Credits can change with each rate case, so a year-old number may be wrong.

Ask: Which tariff sheet and export credit per kWh did you use, and what is its effective date?

Kentucky's net-metering statute doesn't apply to co-ops and city utilities served by TVA, and PSC-regulated co-ops have their own export credits. The same panels can be worth very different amounts in neighboring counties.

Ask: Which utility serves my address, which tariff will this system be on, and can you show me that tariff's export terms?

Asphalt shingles commonly last around 20 to 30 years, and Kentucky's hail and freeze-thaw cycles don't help. A 25-year system on a 15-year-old roof makes a paid detach-and-reset during the term likely.

Ask: Did anyone assess the roof's remaining life, and how would the price and schedule change if I re-roofed before installation?

Kentucky's net-metering statute describes the eligible customer-generator as the customer who owns and operates the system. We don't interpret that language, but you should know how your utility handles third-party ownership before you sign.

Ask: Has my utility accepted third-party-owned systems like this one under its net-metering tariff, and can you send written confirmation?

Many Kentucky subdivisions have covenants that require approval for roof equipment or limit where panels can go. Signing a non-cancellable contract before approval invites a dispute.

Ask: Who prepares and submits the HOA application, what happens to my contract if it's denied, and will you wait for written approval before ordering equipment?