You could save upwards of $5,000 when installing a solar system if you are part of a group of just 3 or more homeowners who leverage their buying power. Each additional participant, 2 to 10 will bring the group $250-$750 per member savings compared to an identical system contracted individually without the volume of a group. At a minimum, being part of a group buy will save $2,500. Most homeowners save around $4,500 on price alone, but the price of solar is only part of a successful installation.

Installation savings come from the companies' labor margins, as the panels and parts have high price tags that the companies have to pay upfront and must sell/install to recoup their investment. How much you save depends on your location, the size of the company and a whole host of other factors, but we know there is about 10-25% profit margin that exists in most consumer to company direct installations, and group buys and coops have proven that contractors will sink below a 5% margin to win multiple jobs.

Be aware, not every company will offer financing to a group buy participant. Homes that require additional roof work, ground mounting, etc. will individually incur additional fees. The price per kW is the common denominator between you and your coop. Some timing flexibility is often requested by the contractor. There is never an obligation and you can leave the group at anytime.

Each co-op schedules its own meetings, conference calls, email communicates directly. Deciding to install as part of a group or independently is the last step in making sure your solar install is optimal--the first step is to RESEARCH solar and ways to save!

A) Save by Installing the most Cost Effective Sized System. The majority of utility companies have tiered rates. The more you use, the more you pay, so if the cost of a 2kW solar system is close to half the cost of a 4kW system, and with 2kW you dropped your usage from the most expensive tier, a system 1/2 the size, will reduce your utility bill by over 80%. On the flip side, shooting too low can cost tens of thousands of dollars in missed savings and installing too large of a system is surprisingly common too (often ethically questioned upsells by sales people), and the utility company buys back energy at less than 25 cents on the dollar making you wish you got a smaller system...

B) Saving by using Old, outdated panels... Bad Idea! In the last 5 years, panel technology has evolved dramatically and is part of the reason solar is multiplying every year. Understanding the business and how solar installers have relationships with distributors/manufacturers/wholesalers like Sunpower, BP, Sanyo, etc. and that they often have surplus outdated product resembles the game of freshness we play at the grocery store when selecting milk or eggs.

C) Save Yourself from You! Internet Purchase Mistakes. If you choose to Do It Yourself, or want to cut costs by buying panels or materials over the internet, be very careful!!! Consult with an electrician or the installer prior to making any purchases. Panels on the web are cheap, good deals can be had, but the MAJORITY of deals you see are too good to be true, because the panels are outdated or last year's hot model. And if you are curious about any of those make-your-own-panels DIY kits, contact me and save some cash, and I'll share what I got with you for FREE. The reality is that 99% of the population never succeeds in making a single watt of usable energy from DIY panel kits. With the web comes shipping and solar panels are pricey... save the box! Be aware of sakes tax!

D) Saving is not worth sacrificing your warranty. You should address the service, maintenance, and manufacturer's warranty with the solar company. Double check that the individual installing the panels (not just the company) is properly certified, some warranties are void if the installer was not properly licensed. What if the installation causes your roof to leak? Now what? Who's responsible and for how long? What about shipping of defective merchandise? The labor of removing/reinstalling panels? Will your call be answered in 3 years, 25 years? Manufacturers guarantee the panels for a 20-40 years, but what exactly do they guarantee? Are their additional warranties you can buy? Ask these questions before you install! We'll help you look for points most consumers are clueless about, such as panels with insufficient space between the roof and the mount that may cause a shortened lifespan and overheat the panels.

E) Save your money if you don't get enough Sun! Technology has made it possible to predict the output of solar panels with 95% accuracy using your specific homes roof, the amount of sun, fog, and other natural elements that play a role. Wind energy, double-paned windows, insulation, hot water heaters, new appliances, weatherization, and tips on how to read your utility bill may be better alternatives.

F) Saving has a deadline! Missed Rebates, taxes and incentives: It is YOUR responsibility, not the solar companies, although most will help almost entirely, to be aware of all California solar incentives that you qualify for. Certain state incentives are tied to total installs in the state or have deadlines. Millions in solar incentives are missed or overlooked every year.

G) Save time by being Prepared for an estimate: Your free estimate is not free to the contractor so respect the installers time and effort and be prepared with everything required for an ACCURATE estimate including utility bills, survey of your major appliances, explanations for seasons shifts in usage, etc.

H) Save yourself from a nightmare! Check the License!!!: If the contractor does not volunteer their license number you should be on Alert! If their marketing materials, business cards don't feature it, ask why? It is a mandate in many states to visibly display a license number. A license typically indicates proper bond, insurance, free of any liens, bankruptcies, or judgment. DO NOT TRUST any third party to do this for you. If an unlicensed, uninsured installer falls off YOUR roof YOU may be liable for any injuries!

I) Call References!!! So important... I can't tell you how many times I've been surprised... Ask for 5 references, if the contractor balks, you should be on alert. Ask the provided references what they would do differently if installing solar again? Don't be shy to ask price details. Past solar installation data affirms the Solar Sipper group buy program is responsible for significant savings.

J) Save Confusion! Get Expectations in WRITING: Documentation! Documentation! Documentation! A power survey applied on a day with good sun and few clouds should produce the amount of energy the installer claimed in their proposal when the sun is striking perpendicular to the panel. Should the sun strike at an angle less than perpendicular to the panel surface, then energy output is downgraded by the cosine of the angle between the sunlight and the perpendicular to the panel face. Estimates you receive must highlight the peak generating capacity of the solar system under good sun conditions in kW. It is paramount for you to obtain the amount of energy a system will produce on an annual basis in kW hours. Energy produced directly correlates to sunlight received and should make room for seasonal variations, any annual output hypothesis should come with at least a 10% +/-. If you don't know exactly what I'm talking about, you better make sure it is written down for each estimate you receive… an estimate on faulty numbers is not much of an estimate at all.

K) Surprise! Hidden Cost: Sales tax? Who pays for the permit? Warranty insurance? Fees to connect to the grid? And more!

L) Save the statistics lesson! Competition Equals Savings!: Group buys that are EXCLUSIVE to one company only where you don't get to choose the contractor still typically results in savings, however, because there is no direct competition between companies for your specific install, and there is an organizing fee paid to the accumulating organization, all market forces are not in the homeowner's favor. But by connecting directly with other HOMEOWNERS first, (not companies), and searching for an installer together- the entire market will be able to compete for your business and you receive maximum savings opportunity. See if there are homeowners waiting to connect in your area.

M) Save the Suspense! Know what to Expect: Actual solar installation is not difficult for an experienced professional. First they will find your roofs anchor beams, and connect "stand-off" posts that will be attached to racking where the solar panels will rest. There are new mounting techniques that don't require penetration to the roofs anchor or support beams, but most solar installers will connect to stable roof beams and use sealants and flashings to prevent water damage. Once the panels are secured, they are wired together and the wiring is secured and passed down to the inverter. Your system design should take into account where the inverter will be mounted; most are by the utility meter, or in a garage. Efficient wiring is important, you will lose DC power if your wiring snakes excessively around your house and roof before it reaches the inverter. Installation takes about one to two days.

If your utility bill is $175+, over 25 years you will pay $70,000+ to the utility company including a modest 2.5% inflation rate. Solar is a very wise investment! Solar Sipper is a team of unbiased environmentalists, and educators who will always be honest and deliver facts about price, panels, contractors, estimates, margins, and answer any and all of your questions! The web is full of great info, but there sure is a lot of it and not all of it is accurate or up to date. We are here to personally help YOU- we helped 750 homes go solar in 2009! Please use our free directory or call now if you have any questions, or connect directly to others in your area to form or join a group buy.