The salesperson is professional, the proposal looks great with impressive savings, and the price seems fair. You’re ready to sign the contract. But stop for a moment and ask a critical question: what do you really know about the company you’re about to enter into a 25-year relationship with?
Choosing the right equipment is important, but choosing the right company is everything. A great installation from a stable, reputable company can provide decades of clean energy and savings. A poor installation from a fly-by-night operation can lead to years of financial stress and property damage. Learning how to vet a solar company is the most important skill you can have. This guide provides a 7-step background check to help you separate the pros from the cons.
1. Go Straight to the Source: The State Contractor License Board
This should always be your first step. Every legitimate solar installer must hold a specific license from your state’s contractor licensing board (like the CSLB in California or the ROC in Arizona).
Go to your state’s official license board website and use their public search tool to look up the company. You can verify:
- Is their license active and in good standing?
- Do they have any public complaints or disciplinary actions filed against them?
- Is the name on the license the exact same as the name on your contract?
A company with a suspended license or a long history of complaints is an immediate non-starter.
2. Check for Lawsuits and Liens in Public Records
This is an advanced step that most homeowners skip, but it can be incredibly revealing. Most county court systems have online public record searches. Go to the court records website for the county where the company’s main office is located and search for their business name.
Are they constantly being sued by former clients? Are they in legal disputes with their suppliers? Do they have outstanding tax liens from the state or the IRS? A pattern of litigation is a major red flag that indicates an unstable or problematic business.
3. Scrutinize Online Reviews for Patterns
Go beyond the star rating. A company with hundreds of 5-star reviews can still be a risk if they have a consistent pattern of 1-star complaints. Read the negative reviews on Google, Yelp, and the Better Business Bureau (BBB).
Ignore the generic complaints and look for recurring themes. Are multiple, detailed reviews all mentioning the same issues?
- “My system has been underperforming for a year and they won’t call me back.”
- “The installation crew damaged my roof and the company is denying responsibility.”
- “My final cost was thousands more than the original quote.”
A pattern of similar, unresolved complaints reveals the company’s true weaknesses.
4. How Long Have They Really Been in Business?
A flashy website might have a logo that says “Since 2010,” but the business license might tell a different story. A company that has been operating continuously under the same license for over a decade is a sign of stability. Be wary of companies that have only been licensed for a year or two, as a significant percentage of solar installers go out of business within their first few years.
5. Assess Their Equipment Partners
Reputable solar installers build strong, long-term relationships with top-tier equipment manufacturers like Enphase, SolarEdge, Qcells, or REC. Ask which brands of panels and inverters they use. Are they well-known, financially stable companies that will be around to honor their 25-year warranties? A company that uses obscure, unbranded, or constantly changing equipment may be getting whatever is cheapest on the gray market.
6. Ask About Their Installation Crews: In-House vs. Subcontractor
Ask the salesperson a direct question: “Do you use your own W-2 employee installation crews, or do you subcontract the installation to a third-party company?” While many companies use subcontractors successfully, a company with its own in-house crews often has more control over training, quality, and accountability. If they do use subcontractors, ask for the name and license number of the installation company they work with so you can vet them separately.
7. The Final “Pressure Test”
A professional company has a professional, educational process. A deceptive one relies on pressure. If your salesperson uses tactics like “this special price is only good for today” or is evasive when you ask tough questions about the contract, trust your gut. A company that has to pressure you into a 25-year decision is not a company you want to be in a relationship with.
Conclusion: Vetting is Your Best Protection
A few hours of research and due diligence before you sign a contract can save you from years of future headaches. If you’ve already signed a contract and are now seeing red flags that you missed during the sales process, it’s not too late. Our expert case review process is designed to analyze your situation and determine if your installer failed to meet the professional or legal standards you deserve.