This major residential solar panel installer does most of its business through solar leasing and power purchase agreements.
May 9, 2024 Written by Tina Orem Assistant Assigning Editor Tina Orem
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Tina Orem is an editor at NerdWallet. Prior to becoming an editor, she covered small business and taxes at NerdWallet. She has been a financial writer and editor for over 15 years, and she has a degree in finance, as well as a master's degree in journalism and a Master of Business Administration. Previously, she was a financial analyst and director of finance for several public and private companies. Tina's work has appeared in a variety of local and national media outlets.
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Comes with a 10-year workmanship warranty, which includes limited roof leak coverage, and a 25-year product warranty.
States available Available in AZ, CA, CO, CT, FL, HI, IL, MD, MA, NV, NH, NJ, NM, NY, PA, RI, SC, TX, VT, VA, and DC. states, and Washington, D.C. Years in solar View detailsSunrun offers solar leases with as little as $0 down. Although we prefer loans and cash purchases because they give you ownership of the system and the ability to qualify for tax credits, the leasing option has lower upfront costs than some options and includes maintenance, which could make it a more appealing choice for some. Sunrun’s solid warranty coverage also makes it a good pick.
on Money.com and SunRun's website
Sunrun, founded in 2007, is a good choice for homeowners looking for a major solar-panel installer with a long track record. The well-established company is the largest residential solar installer in the U.S. by market share, according to a 2023 analysis by research firm Wood Mackenzie [0]
. It operates in 20 states and Washington, D.C.The company, which relies on in-house installation crews and a network of local contractors, does most of its business in solar leasing and power purchase agreements (PPAs). Over 80% of its 933,000 customers have leased or used PPAs rather than purchasing their systems (via cash or a loan), the company confirms. With a lease, you pay a monthly rate for the use of your system; with a PPA, you pay a monthly rate calculated by units of power generated.
Although leases or PPAs can be an appealing option because of minimal upfront costs and short-term savings, these arrangements cost much more in the long term. Sunrun wouldn’t answer questions about how it calculates the monthly rates.
You won’t qualify for the federal solar credit if you use a lease or PPA to get solar panels, because the company — not you — will own the panels. NerdWallet recommends paying with cash or a loan for more long-term savings.
APR, loan term and origination fees
Sunrun says it offers loans through Mosaic and LoanPal but didn’t disclose terms.
Can you get a quote online?
Yes, customers in select markets can view estimated costs using a tool on Sunrun’s website.
Responsiveness to repair requests
Sunrun says it responds to service requests “swiftly” but didn’t disclose a time frame.
Workmanship: 10 years (includes roof leak coverage).Panels and inverter: Varies by manufacturer; 25 years of monitoring, repairs and performance guarantee for solar leasing customers.
How you can contact customer service
Phone, web, email.
Average customer satisfaction rating
20 and Washington, D.C.
Sunrun doesn't provide pricing information for solar panels on its website. Prices for solar panels vary, but the cost of an average-size residential solar system is around $25,000 before any government tax incentives, according to the Solar Energy Industries Association.
There are two ways to purchase a Sunrun solar panel installation:
Buy it with cash or a loan. Sunrun works with third-party lenders to arrange its solar loans , but it did not disclose the annual percentage rate (APR), loan term or origination fees on its website or when we asked.
Use a lease or PPA. Leases and PPAs are typically 25-year contracts, but the company would not disclose how the payments are calculated. Sunrun increases the monthly payments via an escalator clause in these contracts; typically those escalators are 2.5% per year but range from 0% to 3.5% [0]
Sunrun . March 2024 investor presentation. Accessed May 7, 2024.Most consumers will want to start the solar process by understanding what they need to buy and how much it costs, which is why Sunrun’s online quote process is useful. You’ll need to provide contact information, however, which may mean more phone calls, texts and emails than you’d like.
The company would not disclose which brands of solar panels it installs, other than to say it partners with “several tier-1 solar panel providers.” Sunrun did tell us it installs Tesla, LG and SolarEdge batteries.
Sunrun said it recommended these types of roofs for optimal solar panel performance and because typically they can support the weight of the panels and accommodate the installation procedures:
Asphalt shingle. Standing seam.Sunrun has a 10-year roof-penetration warranty and says it inspects roofs with multiple layers of shingles to ensure they are strong enough to support solar panels before installation.
Sunrun says the installation process generally follows seven steps:
Site survey. A technician measures everything and confirms the plans. Design review. The company updates the original plan based on the site survey. Permitting. The company gets the appropriate permits from the city.Installation. The company says the average installation takes one day and you need to be there during the installation.
City inspection. Someone from the city comes by to make sure everything was installed according to code.
Utility connection. The local utility connects the system to the grid and installs a new meter if needed.
Power begins. The system begins operating.NerdWallet considered customer reviews from three review websites to get a wider perspective of customer experiences. We’ve highlighted the types of experiences that we’ve found to be most common, keeping in mind that online reviews tend to lean toward negative experiences.
SolarReviews.com 1.93 out of 5.
ConsumerAffairs: 4.3 out of 5.
Better Business Bureau: 3.69 out of 5.
Among negative reviews, customers highlighted systems not turning on as expected, lack of savings on existing electric bills, poor communication with customer service representatives and roof damage from installation. Customers who gave Sunrun high marks commented on timely installation.
Sunrun has several notable advantages over its competitors.
Long track record. Sunrun has operated for 17 years, longer than many solar companies.Offers good warranty coverage. The company offers a 10-year workmanship warranty — not the longest available on the market, but still solid.
Relatively widespread presence in the U.S. Most other competitors offer their services in fewer than 20 states, making Sunrun more likely to be an option for more consumers.
Wider variety of ways to contact customer service. This ups the chances of getting issues resolved faster.
Sunrun has several notable disadvantages compared to competitors.
No transparency on loan terms. Without information about APR, loan term and origination fee, it’s hard for consumers to understand the true cost of their solar systems.
No transparency on repair time. Sunrun didn’t disclose on its site or to us how long consumers should expect to wait for a technician to arrive if they need repairs done. This can be a significant downside, particularly if the electricity is out or the roof is damaged.
Mixed customer service scores. Sunrun’s scores ranged from a low of 1.93 out of 5 on SolarReviews.com to a high of 4.3 out of 5 on ConsumerAffairs.com.
on SolarEdge's website
View details Warranty coverage States available Years in solar View detailsBlue Raven, which was acquired by SunPower in 2021 but still operates under its own name, earns the highest customer satisfaction ratings among companies we’ve surveyed. It offers a solid 10-year workmanship warranty — which includes roof leak coverage — and mostly installs panels and inverters that come with 25-year manufacturer warranties. Also nice: Blue Raven says it will directly handle repairs or replacements related to manufacturer defects in the first two years after installation.
on SolarEdge's website
Freedom Solar Power" />
on SolarEdge's website
View details Warranty coverage Comes with a 25-year product, power, and workmanship warranty, including limited roof leak coverage. States available Available in TX, CO, FL, VA, NC, and SC. Years in solar View detailsFreedom Solar handles the entire solar installation process in-house from start to finish without using outside contractors, unlike competitors that rely on service networks. It installs solar panels from two main brands — REC and Mission Solar — and offers top-notch warranty coverage. Its loans start at 0% APR. It serves six states: Texas, Colorado, Florida, Virginia, North Carolina and South Carolina.
on SolarEdge's website
on Palmetto Solar's website
View details Warranty coverageAll solar panels installed come with at least a 25-year performance guarantee and a 12-year product warranty (often 25 years). Cash / loan purchasers also get 10-year workmanship warranty and five-year roof penetration warranty.
States available Available in AZ, CA, CO, CT, FL, GA, IL, MD, MA, MI, NJ, NV, NC, OH, PA, RI, SC, TX, VA, and DC. Years in solar View detailsPalmetto offers a strong track record and more transparency around financing than most installers. It also offers some loans with no origination fees.
on Palmetto Solar's website
In addition to tax incentives and rebates, there are options available. Many solar installers offer financing, but you may also be able to finance your solar investment through a home equity loan or home equity line of credit (HELOC). These options may have lower interest rates than financing with an installer, future opportunities for refinancing and possible tax benefits.
Home equity loans and HELOCs are ways to borrow against the value of your home, converting equity into cash. With a home equity loan, you receive a lump-sum payment and then pay it back at a fixed interest rate over an agreed period of time, typically from five to 30 years. HELOCs are more akin to a credit card, something you use as needed. You’ll usually have 10 years to draw from the line of credit, during which time you only have to pay interest, and after that you pay both the principal and interest. HELOC interest rates typically are variable, meaning your monthly payment could rise or fall over time. And with each of these options, you're using your home as collateral.
Quicken Loans: NMLS#3030
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Another option is a solar loan. Many banks, credit unions and online lenders offer these to fund solar panels and installation, with amounts typically from $1,000 to $100,000, and annual percentage rates ranging from 6% to 36%. They function like a personal loan: you receive a lump sum and repay it in equal monthly installments over a set period, typically two to seven years. And unlike with home equity financing, there is no collateral required for a solar loan. This means your home or solar panels aren’t at risk if you miss payments, but you may have to pay late fees.
So, yes, you likely can get financing. If you go this route, compare interest rates, terms and fees with any financing package that a solar provider may offer you to ensure you get the best deal.
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Tina Orem is an editor at NerdWallet. Before becoming an editor, she was NerdWallet's authority on taxes and small business. Her work has appeared in a variety of local and national outlets. See full bio.
NerdWallet's Home Services team evaluated solar panel installers across several factors, including financing terms, responsiveness to repair requests, customer satisfaction ratings, number of years in solar, pricing transparency, warranty coverage and customer service options. Because costs can vary by location, it's best to get quotes from multiple companies before making a decision. Read more about how NerdWallet rates solar panel installers .
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