Reviewed and updated August 31, 2026. Program terms, financing offers and utility rules can change.
A solar proposal can look simple—panels, a monthly payment and a savings chart—while leaving the most important obligations in another document. In 2026, one red flag deserves immediate attention: any homeowner-owned proposal that automatically subtracts a 30% federal credit as if it is still generally available.
The IRS says the Residential Clean Energy Credit is not allowed for expenditures made after December 31, 2025; for an installation, the expenditure is generally treated as made when the original installation is completed. Use that current rule as the baseline, then work through the remaining proposal details.
1. The proposal treats the former federal credit as automatic
A 2026 “net system cost” should not deduct a general homeowner 30% credit. Ask for the full cash price and the exact legal authority behind any claimed tax benefit. Verify the answer independently. Tax credits are not the same as cash rebates, and tax treatment depends on the taxpayer and law in effect.
2. You cannot find the cash price
Every financed proposal should show the cash price beside the financed principal. Without both numbers, you cannot see dealer fees or compare the system with a bank, credit union, home-equity product or cash alternative.
The CFPB has reported solar-loan markups that can increase principal by 30% or more above the cash price. A low stated interest rate can still be expensive when the starting principal is inflated.
3. The monthly payment changes unless you make a large prepayment
Some loans re-amortize after an introductory period unless the borrower pays down a presumed tax-credit amount. In 2026, a payment structure still built around receiving and prepaying a 30% homeowner credit is especially concerning. Ask for the payment schedule with no voluntary prepayment.
4. Savings are presented as guaranteed
Solar savings depend on production, weather, shading, utility rates, export compensation, self-consumption, outages, equipment performance and household use. A proposal can model those factors; it cannot guarantee that all of them behave as assumed.
Ask for the exact utility-rate escalation, degradation, export value and annual production used in the chart. Re-run the model with conservative assumptions.
5. Equipment is described only as “Tier 1” or “premium”
Those labels do not replace model numbers. The contract should identify modules, inverter or microinverters, optimizer if used, battery, transfer equipment and monitoring. Verify warranty owners, labor coverage and replacement process.
6. The roof is barely discussed
Ask about roof age, remaining life, attachment method, flashing, leak responsibility, reroof coordination and future remove-and-reinstall cost. Installing a 25-year asset on a roof near replacement can create avoidable expense.
7. The production estimate has no assumptions
A useful proposal explains array azimuth, tilt, shading, weather dataset, system losses and annual degradation. Compare the estimate with a second model or quote. Make sure the financial model does not count more energy than the system model predicts.
8. Net metering is described with an old rule
Utility export policies change. Confirm the current tariff, application deadline, grandfathering, credit rate and fixed charges directly with the utility. A salesperson’s screenshot from another state or year is not enough.
9. A lease or PPA escalator is minimized
A 2.9% annual escalator sounds small in one year, but it compounds over a long contract. Ask for the payment or energy rate in every contract year, not just the first payment. Review buyout, transfer, roof work, performance and early-termination provisions.
10. The salesperson creates artificial urgency
“The program ends tonight,” “sign now to hold the rebate,” or “everyone qualifies” should trigger verification. Government and utility programs have official pages. Check them yourself. Do not let a tablet presentation substitute for time with the actual contract.
11. The referral and service responsibilities are unclear
Identify the seller, installer, lender, equipment owner, warranty provider, monitoring company and anyone receiving referral compensation. Ask who responds if the installation fails inspection, the roof leaks, monitoring stops or the system underperforms.
A one-page comparison checklist
- Cash price and financed principal
- APR, term, dealer fees and total of payments
- Payment schedule without assumed tax prepayment
- System size in kW DC and expected first-year kWh
- Panel, inverter and battery model numbers
- Roof scope and remove/reinstall terms
- Utility tariff and export assumption
- Workmanship, roof and labor warranties
- Lease/PPA escalator and buyout schedule
- Cancellation and home-sale transfer terms
- Exact incentive source and eligibility date
Have a proposal in front of you?
ConvertGreen’s proposal-review intake organizes the system, price, financing, warranty and production questions. It is educational decision support, not legal, tax, engineering or financial advice.
