Path-Q Solar
How should I compare a solar proposal that promises maximum savings with one that uses conservative assumptions?
Answer
Compare the assumptions and the range of plausible outcomes, not the headline savings. A conservative proposal may be more credible if it clearly accounts for shading, degradation, downtime, export limits, energy-use changes, and uncertain future prices.
Key points
- Put both proposals on the same basis: system size, financing or cash price, analysis period, electricity-use forecast, production estimate, and treatment of excess generation.
- Ask for the underlying production model and a sensitivity analysis showing lower, expected, and higher outcomes.
- Separate guaranteed terms from estimates, and compare total cost, payback, cash flow, and expected bill reduction.
What it depends on
- Actual interval or annual electricity use
- Shading, orientation, equipment, and system losses
- Future electricity prices, export treatment, financing terms, and battery operation
Risks and trade-offs
- Optimistic assumptions can make a project appear to pay back sooner than it does.
- Overly conservative assumptions can understate a sound project or obscure useful design differences.
- Savings estimates are not guarantees unless specific contractual performance terms apply.
Information you may need
- Production model and assumptions from each installer
- Itemized price, financing terms, degradation assumptions, and estimated operating costs
- Treatment of exported energy and any battery dispatch assumptions
- Your expected changes in occupancy, appliances, heating, or transportation
Your next step
What to do next
Create a side-by-side comparison using identical assumptions, then ask each installer to explain the largest differences and provide sensitivity cases.
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