Who is the top rated solar company?

Dec. 06, 2023

American solar energy company

This article is about a company specializing in solar power. For the 1977 album by the R&B band Sun, see Sun Power

SunPower Corporation is an American provider of photovoltaic solar energy generation systems and battery energy storage products, primarily for residential customers. The company, headquartered in San Jose, California, was founded in 1985 by Richard Swanson, an electrical engineering professor from Stanford University. Cypress Semiconductor bought a majority interest in the company in 2002, growing it quickly until SunPower went public in 2005. TotalEnergies, a French energy and oil company purchased a controlling interest in SunPower for US$1.37 billion in 2011.

The company previously developed and manufactured photovoltaic panels, before spinning off that part of its business in 2020 as Maxeon Solar Technologies. The company had also previously marketed its products to commercial and industrial customers before agreeing to sell that business line to TotalEnergies in February 2022.

History
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Early history
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SunPower was founded on April 24, 1985, by Richard Swanson,[2] who was a Stanford University professor focused on electrical engineering.[3] Swanson studied solar power efficiency in the Stanford Electronics Laboratory with funding from research grants.[4]: 468 After breaking a record for solar power efficiency in lab conditions, he took a sabbatical to start SunPower and commercialize the technology.[3][5] Initially, the company was called Eos and was funded with $2,000 in savings between Swanson and his friend Richard Crane.[4]: 468 In 1989, Robert Lorenzini invested in the company, became its chairman, and changed the name to SunPower.[4]: 468

Some of SunPower's early revenues were from research grants[2] and using its manufacturing facilities to create silicon wafers for semiconductor companies.[4]: 468 Interest grew as SunPower completed prototype installations[3] and portable electronics that use solar power became more popular.[4]: 468 Swanson resigned from his academic position at Stanford in 1991, in order to focus on SunPower full-time.[5] The company's revenues grew from $600,000 in 1989 to $1.4 million in 1995, and $6 million in 1996.[4]: 468 However, by 2001 the company was anticipating having to lay off half of its employees.[6]

Growth
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SunPower founder Richard Swanson's former classmate, T.J. Rodgers, was the CEO of Cypress Semiconductor and took an interest in investing in the company.[6] At first, the Cypress board wasn't willing to invest, so Rodgers invested $750,000 of his own money.[7] Starting with an investment of $8 million, Cypress eventually invested about $150 million,[7] acquiring a controlling interest in SunPower in 2002.[6] Cypress appointed Tom Werner as the new CEO the following year.[4]: 469

Demand for SunPower's products increased in the early 2000s, due to rising utility costs, government subsidies, and its new A-300 solar cell.[4]: 469 [8] In particular, SunPower grew in Germany and California, where new government subsidies were being introduced.[8] By 2005, SunPower was not yet profitable,[4]: 469 but had $200 million in backlogged orders.[8] Revenues increased from $5 million in 2003 to $78.7 million in 2005.[4]: 469

As the company was getting closer to profitability, it filed an initial public offering.[4]: 469 The 2005 offering raised $138.6 million in funding.[6] The following year, SunPower was profitable for the first time with $236.5 million in revenues.[4]: 469 SunPower moved into a larger corporate headquarters location in San Jose, California and secured several contracts with major retailers for solar panel installations.[4]: 469–70 In 2007, SunPower announced plans to expand its manufacturing facility five-fold[9] and build a second factory.[10]

SunPower collaborated with PowerLight to develop its roofing-tile solar product called SunTile.[4]: 469 [11] In order to combine their R&D efforts, SunPower acquired PowerLight for $265 million, in January 2007.[4]: 469–70 Analysts estimated the acquisition doubled SunPower's size.[11] Shortly afterwards, PowerLight secured a $330 million contract, the largest SunPower had ever done.[12] By 2007, half of Cypress' revenues, or $775 million, was coming from its investment in SunPower.[13] SunPower was spun-off as a separate business from Cypress in 2008.[13]

Recent history
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SunPower acquired Sunray Renewable Energy, a solar panel company based in Italy, for $277 million in 2010, in order to expand in Europe.[14][15] The following year, SunPower cut back production due to an overall market decline in solar power purchases.[16] SunPower also announced the French oil and gas company Total was acquiring a majority interest in SunPower for $1.37 billion.[17] In 2012, SunPower founder Richard Swanson retired, though he continued to serve on the SunPower advisory board.[5]

By 2013, SunPower's revenues rebounded and it started expanding its manufacturing facilities again.[16] That same year, it acquired Greenbotics, which developed automated cleaning systems for solar panels, and Dragonfly, which developed solar micro-inverters.[18][19] This was followed by SunPower's 2014 acquisition of SolarBridge, which developed microinverters used to improve the efficiency of solar panels.[19] In 2018, SunPower sold its microinverter business to Enphase and since that time Sunpower uses Enphase microinverters in all AC module products.[20][21]

In 2014, SunPower raised $220 million from Bank of America and Merrill Lynch, in order to fund customer financing options.[22] That same year, SunPower invested $20 million in a home energy app company called Tendril.[23] As part of the deal, the two companies began integrating their products, so the home automation software from Tendril could time heavy energy use for when the solar panels are generating the most power.[23]

In 2019, SunPower announced it was going to spin-off its manufacturing division into a separate business in Singapore named Maxeon Solar Technologies.[24] As part of the deal, Tianjin Zhonghuan Semiconductor Co invested $298 million for a 29% interest in Maxeon.[24][25] The remaining SunPower business became focused on services, installation, batteries, and other products.[25] In 2021, former CEO Tom Werner retired and Peter Faricy took his place as CEO of SunPower.[26]

In February 2022, SunPower investor TotalEnergies purchased SunPower's commercial and industrial divisions for $250 million, as part of SunPower's transition to focusing on residential installations.[27] In May 2022, SunPower announced a partnership with IKEA to sell to customers in their California stores.[28]

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By Alex Hawkins

Affiliate Disclaimer: All products and services featured are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission.

Solar energy is one of the most innovative industries paving the future. Not only does it help you reduce your environmental impact, but it also saves you money on your electric bills and boosts your home value.

There are many solar companies to choose from, and you may not be sure where to start. We carefully researched more than 20 of the best solar companies to see how they compared on product selection and performance, price, customer service, availability, financing options, and warranties. We also read more than 100 customer reviews for each provider to see what real customers had to say about doing business with the company. Here are the seven solar providers that came out on top.

Compare Solar Companies

The 7 Top Solar Installation Companies of 2023

Consider these top solar installation companies if you’re thinking about going solar:

Our Top Solar Installation Company Picks

SunPower

Most Experienced

Get Free Quote

Fast Facts:

State availability: 50
Warranty options: 25-year system and labor warranty
Panel options: Monocrystalline (Maxeon)

Our Recommendation

Working toward energy independence is a long-term project that requires various products and services. It’s important to assess your specific needs and priorities to choose the best solar installer for your home.

We recommend SunPower as one of our top companies due to its experience and high-efficiency systems. We also like Momentum, which provides excellent services integrated with established net-metering programs, high-quality solar energy systems, and a comprehensive warranty. Finally, Blue Raven Solar has more locations than our other top choices and is the best option if you’re looking for a clear and established financing program.

We recommend getting quotes from at least three solar installers in your area to compare offerings. Use our tool below to get started.

Homeowners Save $20,000 to $97,000 with Solar Panels on Average Over Typical System Life Span

Get a Quote on Your Solar Installation in 30 Seconds

Get Free Quote

What to Expect From Your Solar Installation Inspection

Each solar installation requires a home inspection, which helps the solar installer know what rigging system is required and what kind of panels, inverters, energy storage systems, and other vital components you will need. Overall, the purpose of the solar inspection is to ensure all the details are right for your home’s solar panels to work for the next 25 to 30 years.

An extra step you can take to streamline the solar inspection process is reaching out to your local government to vet an installer before having them come to your home. Astrawatt Solar’s director of marketing, Tyler Adams, says:

“Your county government can tell you if a solar installer is licensed and is in good standing with the local government.” He also recommends contacting your local utility company about going solar. “Many local utility companies will provide homeowners with a list of questions to ask a solar installer. Any good solar installer will be able to answer those questions and can use those as a guide for what to expect as you convert your home to using solar energy.”

Solar installation inspections tend to follow these steps:

Roof inspection:
The company takes roof measurements to check the fit and dimension of the solar power system. It identifies any existing roof obstructions and discusses modifications to the proposed layout based on these findings. In addition, roof damage, including broken tiles and worn
shingles
, are photographed.
Attic inspection:
A
solar installer
checks your attic for accessibility, as well as the truss layout.
Electrical inspection:
The
solar company
evaluates your home’s current electrical system. Using these findings, the company creates a utility interconnection plan. It also notes the locations of electrical conduits and disconnecting means.
Internet inspection: An installer may ask about your internet access to determine if performance monitoring hardware should be installed.

Benefits of Installing Solar Panels

Solar panels help your home and the environment in numerous ways. Here are some of the key benefits:

Save money on your energy bills:
Solar panels
help to lower your energy costs. A solar system may even eliminate your
utility bills,
depending on your energy usage.
Earn tax credits:
Another major
incentive
to
solar panels
is
tax credits
and
rebates
.
Rebates
vary according to your state, so we encourage you to use the
State
Incentives
for Renewables & Efficiency Database
to see what specific
rebates
and state
tax credits
are in your zip code. You may also take advantage of the 30%
federal solar
tax credit
, the solar investment
tax credit
(ITC).
If your on-grid system generates excess energy
, you may earn solar
renewable energy

certificates
(SRECs),
which allow you to earn money by giving energy back to the power grid and your community.
Increase your home’s value:
Based on the
National
Renewable Energy
Laboratory
(NREL) findings, every dollar saved on energy through a solar system increases home value by $20. Your home receives a 20-to-1 return on its value from
solar panels
. Therefore, a solar energy system is not just an investment for your
energy bills
but your property value, too.
Save the environment: It’s no secret that solar energy leads the charge for energy-efficient renewable energy. Not only do you reduce your carbon footprint and help your community move away from fossil fuels, but you also improve public health. Coal and natural gas plants produce air and water pollution harmful to human health, and solar produces clean energy.

How Much Does a Solar Installation Cost?

Various factors influence solar panel costs. EnergySage estimates the average cost for a typical 6-kilowatt (kW, or 6,000 watts) residential rooftop solar system is approximately $16,600. After factoring in the 30% federal tax credit, that’s roughly $12,300 before applying any other solar incentives.

Solar Panel Pricing

The type of solar panel you order influences your total price. For example, the average cost for monocrystalline solar panels is $1 to $1.50 per watt, so a standard 6 kW system costs $6,000 to $9,000. The average cost for polycrystalline solar panels is $0.90 to $1 per watt, making it $5,400 to $6,000 total.

Type of Panel

Cost Per Watt

Total Cost

Monocrystalline

$1—$1.50

$6,000–$9,000

Polycrystalline

$0.90–$1

$5,400–$6,000

Thin-film

$1–$1.50

$6,000–$9,000

Other Cost Factors

Below are some other factors to consider when determining how much a solar system might cost.

Labor:
Expect labor fees to be around 25% of the system cost. For example, if you purchase a monocrystalline solar system for $10,000, your labor costs will be around $2,500.
Additional equipment:
Residential solar systems sometimes require a battery to store energy and an
inverter
to convert your photovoltaic (PV)
solar panels
’ variable direct current (DC) output into alternating current (AC). Most
solar companies
include an
inverter
in your solar system’s design. Requesting dditional components or a specific brand of
solar battery
and
inverter
, such as a
Tesla

Powerwall solar battery
, costs more.
Payment option:
The type of payment option you use for your solar system also influences the total cost of your system over time. Purchasing the system
up-front
is the most cost-effective option. However, you may also opt for a
solar loan
or other
solar financing options
. Less cost-effective options include a
solar lease
or entering a
power purchase agreement
(
PPA
).
You don’t own the system with these options and instead pay to rent the equipment from a solar provider.

Get a Quote on Your Solar Installation

How Do I Get a Solar Quote?

We went through the quote process with each provider on our list to see what the experience was at each company. All installers except for Blue Raven Solar, Palmetto Solar, and Tesla include a Get a Quote option in the top right corner of their webiste’s homepage. Clicking this link takes you to a form to fill out with information about your home. Most forms ask for basic contact information, location, and home size. Providers ask for your location and home size to gauge how suitable your home is for a solar system. Some providers ask for more detailed home information, such as how shaded your roof is. The online quote process takes just a few minutes.

The remaining companies have a clearly listed phone number at the top of the home page you can call to get a quote. Tesla also features the option to get a free virtual consultation in which you can discuss your project and get a quote. When we called Blue Raven Solar, we were asked for similar information, such as location and roof size and orientation in regard to the sun. We were given a quote in less than 10 minutes over the phone.

Best Solar Companies FAQ

How long do solar panels last?

On average, solar panels tend to last between 25 and 30 years.

On what types of roofs can solar panels be installed?

Solar panels can be installed on almost any type of roof. Panels are attached to your roof with a racking system. Your solar installer will recommend the racking system that is most appropriate for your property based on your roofing material and design.

Do backup batteries make money like a solar system does?

Because electricity rate structures incentivize giving energy back to the power grid and not battery storage in a home, backup batteries do not help you earn money like solar panels do.

Does going solar affect my insurance?

A report from the National Renewable Energy Laboratory (NREL) states that most solar systems should be covered as part of a standard homeowners insurance policy. However, we recommend that you contact your insurance provider before you install your solar energy system, so you can know how the change may influence your coverage.

What is the process to get my system permitted?

The process to get your system permitted varies based on location, as it’s handled by local municipalities. However, you shouldn’t need to file any local permits yourself unless you do a do-it-yourself (DIY) installation. If you hire a professional installation team, your solar energy company should handle all the permitting. “60 days is a pretty good average from the contract-signing to installation,” says Tyler Tucker, the chief development officer of Astrawatt Solar. He adds that this process may take longer if your solar installation requires HOA approval.

Other Helpful Solar Guides

How We Chose the Top Solar Companies

We researched and analyzed dozens of solar panels and solar installation companies. We then formulated a rating system based on each solar installer or manufacturer’s services and products on several significant factors. Factors include the types of solar panels they offer and their quality, customer support network, warranty lengths and limitations, and additional benefits for homeowners, such as mobile apps for monitoring and customer service.

Speaking directly to a representative at each company, we determined how each solar company personalizes its solar panel installation for each home. We also analyzed each company’s warranty options to ensure their product and performance guarantees match or exceed industry standards.

We evaluated each provider based on their rating and history with the Better Business Bureau (BBB) to determine reputation. In addition, we analyzed the 100 most recent Google Reviews for each provider across various locations and branches.

Read more: Our Methodology

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