As homeowners search for ways to reduce their carbon footprint and save on energy costs, installing solar panels is a viable solution. However, the conventional buying and installation process is often perceived as overwhelming and expensive. In an effort to improve the solar industry, direct-to-consumer (DTC) solar companies aim to make the process more accessible and affordable.
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Key Points
- Direct-to-consumer solar companies offer a simplified and convenient way to purchase solar panels.
- DTC can help you save up to 30% compared to the national average by eliminating the need for salespeople and third-party companies.
- Based on data from Suntuity Renewables, the DTC model results in an average price per watt of $2.80.
Direct-to-consumer solar overview
DTC solar companies are transforming the solar industry by offering a streamlined and cost-effective approach to solar energy adoption. In this model, you can bypass the additional costs associated with third-party contractors, salespeople, and system designers for significant overall cost savings. Instead of working with a sales representative, you can complete the entire process online, including obtaining quotes, designing your system, and scheduling an onsite visit.
“The main benefit is you can shop directly with an installer through their website and get the absolute best price possible,” said Dan Javan, Chief Executive Officer of Suntuity Renewables. “With DTC solar, you receive 20%–30% savings from the national average.”
Buying solar through a DTC company is similar to making other online purchases. It’s like shopping online for your next pair of shoes — you can go through the entire buying process online without needing to enter a shoe store. You can conveniently make informed decisions with transparent pricing from the convenience of your home.
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Benefits of direct-to-consumer solar
Several benefits associated with using a DTC company instead of a traditional solar company include:
- Cost savings. By eliminating salespeople and third-party contractors, DTC solar companies offer more competitive prices, resulting in solar savings for customers.
- Simplified process. You get to choose your products and financing methods and set up an onsite visit through a streamlined virtual process. Companies offer online informational resources or customer support to ask questions throughout the process.
- Price transparency. The cost of solar varies based on several factors, and typically, you must request a quote for pricing information. With DTC solar, you know exactly how much the solar panel system will cost based on your payment plan.
The following table compares the cost of solar with Suntuity Renewables, a DTC company, versus the national average from the Lawrence Berkeley National Laboratory.
| Source | Price per watt | System size (kW) | Total cost |
|---|---|---|---|
| Suntuity | $2.80 | 8.6 kW | $24,080 |
| National average | $3.67 | 8.6 kW | $31,558 |
Factors to consider
While there are many benefits to working with a DTC solar company, the following are potential factors to consider before diving into the process.
- Product options. Depending on the company you choose, you may only have a few product options. Research each product and manufacturer to ensure you’re ordering high-quality products with strong solar warranties.
- Financing options. While most DTC companies only offer cash purchases or solar loans for payment, Suntuity is the exception. The company also offers a solar lease. If you want to access solar through a lease and live outside Suntuitiy’s service area, you may have to consider other options.
- Customer support. Review your chosen solar company’s customer support hours to ensure the level of support and responsiveness meets your needs. Some companies may have specific hours of availability.
Direct-to-consumer solar buying process
The following steps outline the solar buying process with Suntuity Renewables. The steps and details may vary based on the company you choose.
- Enter basic information. Enter your address and average monthly energy bill, then verify your contact information with a four-digit code.
- Design your solar array. Using a Google image of your home, click “Run AI Design” and customize the array based on panel layout and energy offset. When designing, the platform displays the system size in kilowatt-hours (kWh) and shows how many kWh the panels will produce each year.
- Select financing. You can choose between a cash purchase, loan, or lease for financing. If you choose a solar lease, expect the page-loading experience to take up to 90 seconds because the lease option is a new product offering with developing technology.
- Choose equipment. Select your panels and inverter products. The platform provides extra details to help you make informed decisions about each product. If you choose to include a solar battery, Suntuity has a solar battery calculator to determine how many batteries you may need for backup power.
- Review solar price details. Enter your contact information to receive your solar quote, breaking down the total cost, price after incentives, and other important information based on your selected payment plan. The quote also displays how much you will save on your energy bills over time. If you choose a solar loan, you can proceed to prequalify online.
- Review and complete your order. After reviewing the agreement details, sign the contract, and a Suntuity representative will reach out to schedule a site survey. After signing your contract, the solar panel installation process continues as it would with a traditional solar company.
Installing solar panels on your home can lead to substantial savings on your energy bills over time. Start your solar journey by answering a few questions in the SaveOnEnergy solar estimator. You can get connected with solar companies in your area and learn how much you can save by going solar.