Are solar panels installers overcharging for materials?

[cajocars]

After having had a few quotes for solar panels, it seems like they are overcharging for the materials.

These are the prices I can get online after a 5 minutes google search (on the right) compared to a quote I received

The price of the panels are for slightly more powerful panels, in stock from here; I included the delivery charges

Trina Solar 425W Vertex-S Mono Solar Panel

Key Features:Rating: 415W Efficiency: 20.4% Width: 1,134 mm Height: 1,762mm

www.theoffgridengineer.co.uk

I imagine installers can get them cheaper but it seems they are charging a flat £400/panel.
Do they make money from providing the materials? Genuine question

 

[sunshine_eggo]

Of course they do. solar installers are in business to make money. They tend to charge MSRP and/or add a mark-up.

 

[fafrd]

After having had a few quotes for solar panels, it seems like they are overcharging for the materials.

These are the prices I can get online after a 5 minutes google search (on the right) compared to a quote I received
View attachment 119537
The price of the panels are for slightly more powerful panels, in stock from here; I included the delivery charges

Trina Solar 425W Vertex-S Mono Solar Panel

Key Features:Rating: 415W Efficiency: 20.4% Width: 1,134 mm Height: 1,762mm

www.theoffgridengineer.co.uk

I imagine installers can get them cheaper but it seems they are charging a flat £400/panel.
Do they make money from providing the materials? Genuine question

Generally solar installers provide a warranty on the materials they are supplying and when they are providing the warranty, they will mark up equipment cost by at least 50% and as much as 100%.

DIY you can get lower equipment costs, but if there are any failures to deal with, you need to take it up directly with the equipment providers…

 

[740GLE]

They also have overhead of storing all that equipment/parts and pieces plus tools/transportation costs.

I’m sure any quote you received didn’t have each line item broken down by each expense the company incurs to operate.

 

[Mike 134]

No different than car repairs. Markup the material whatever the market will allow before hurting sales.

 

[OzSolar]

I'd offer that the term "overcharging" is relative.

I'd also offer the big time solar companies run massive and sophisticated marketing campaigns and use some pretty high power sales people. Their COA (cost of acquisition) often exceeds 40% of the project. EG: Marketing and commissions on $30,000 project eat up $12,000 before they roll a truck or buy single foot of wire. Not saying it's right or wrong just that it is what it is.

 

[Supervstech]

Some installers will allow you to provide your own materials, but it is unusual. Companies need to provide a system, and it includes knowing how everything connects, and fits. They mark up to stay in business. They also charge a labor rate, but don’t break down each and every expense.
It all adds up, materials, labor, transportation, training licensing, insurance, taxes, payroll if they had to explain every fee, it would be a huge contract. Markup covers some profit, and some expenses.

And they are bidding against other market installers, and each wants the most money for the install, but they each want the job.

 

[LeoThomson]

Yes, they are overcharging for materials, they will get them at a much lower cost then you can, but they do not pass that discount onto you.

I recommend doing it yourself with a couple of friends if you feel you are able, I personally treat it as a hobby with lots to learn.

 

[cajocars]

Yes, they are overcharging for materials, they will get them at a much lower cost then you can, but they do not pass that discount onto you.

I recommend doing it yourself with a couple of friends if you feel you are able, I personally treat it as a hobby with lots to learn.

I'd like to do it myself; also I didn't mention, I'm in the UK (thought it was a UK forum at the beginning), and there isn't much we can do ourselves

 

[Mattb4]

Are they overcharging? Depends if it is government regulated or not. Paying off various Public officials to look the other way does not come cheap. It also matters if the Installer's kids need a new iPhone or not.

I also find that the busier a contractor is the more they charge. Two things with that. If they are really busy and expensive, likely they are good. If they charge way less than others contractors and can get right on it, chances are they are no good.

 

[bigmadstu]

I'd like to do it myself; also I didn't mention, I'm in the UK (thought it was a UK forum at the beginning), and there isn't much we can do ourselves

Not entirely true. You can bolt together anything you like offline. What you need an electrician for is to connect it to the fixed wiring of your house.
I've done my whole install this way. Solar panels and battery storage. It does help having a mate that's a 30 year experienced electrician. It's been a good fun project.

 

[cajocars]

Not entirely true. You can bolt together anything you like offline. What you need an electrician for is to connect it to the fixed wiring of your house.
I've done my whole install this way. Solar panels and battery storage. It does help having a mate that's a 30 year experienced electrician. It's been a good fun project.

Was that in the UK?

 

[SenileOldGit]

Generally solar installers provide a warranty on the materials they are supplying and when they are providing the warranty, they will mark up equipment cost by at least 50% and as much as 100%.

DIY you can get lower equipment costs, but if there are any failures to deal with, you need to take it up directly with the equipment providers…

And why would that be worse than the (often fly by night) installers? (Sounds like you are implying that...)

 

[SenileOldGit]

Was that in the UK?

I did the same - in the UK, installed the panels myself (ground mount system, 12kW), and paid an electrician to do all the cabling, inverters and battery installation.

 

[SenileOldGit]

Are they overcharging? Depends if it is government regulated or not. Paying off various Public officials to look the other way does not come cheap. It also matters if the Installer's kids need a new iPhone or not.

I also find that the busier a contractor is the more they charge. Two things with that. If they are really busy and expensive, likely they are good. If they charge way less than others contractors and can get right on it, chances are they are no good.

"If they are really busy and expensive, likely they are good." That doesn't follow at all. People are so desperate to get solar panels installed now, that ALL contractors are busy. And thus they can all charge more than they used to, the public can take it or leave it.

 

[Steve Fractals]

I'd like to do it myself; also I didn't mention, I'm in the UK (thought it was a UK forum at the beginning), and there isn't much we can do ourselves

You can do a complete off grid system, I have. The key is stay away from grid tied so you stay away from a lot of the regs associated with that.

 

[Ron-ski]

No different than car repairs. Markup the material whatever the market will allow before hurting sales.

I can assure that our workshop doesn't drastically increase prices just because we're busy, which is what is happening in the UK with solar installers at the moment.

 

[fafrd]

And why would that be worse than the (often fly by night) installers? (Sounds like you are implying that...)

I’m not understanding your question.

If you never have an equipment failure, the ‘value’ of a local party providing warranty service can be debated.

But the hassle of getting a manufacturer to make good on a warranty claim when there is an actual equipment failure is substantial (especially widen the equipment/panel supplier is in China).

So my only advice to my friends who do not want to go the DIY route and elect to pay a significant premium for an installation company is: ‘focus your attention on which installation companies have the best chance of still being in business 20 years from now rather than which companies are offering you the lowest cost.’

Paying for a high-priced professional installation and finding yourself left holding the bag several years later when there is a problem and you discover the company you engaged for the install is no longer in business is the Penalty Box you want to stay out of…

 

[Mattb4]

"If they are really busy and expensive, likely they are good." That doesn't follow at all. People are so desperate to get solar panels installed now, that ALL contractors are busy. And thus they can all charge more than they used to, the public can take it or leave it.

Sure it follows even if special circumstances alter the equation some. My statement was qualified, yours of, "That doesn't follow at all", is absolute.

 

[Ron-ski]

I'd like to do it myself; also I didn't mention, I'm in the UK (thought it was a UK forum at the beginning), and there isn't much we can do ourselves

I'm in the UK and started getting quotes around April May, the companies I contacted often quoted ridiculous prices, and for what they wanted to install, not what I was asking for. As the year has gone on, things have just got even worse, as customer demand has spiked due to really high electric prices, availability of parts has decreased due to supply issues and demand. Installers are so busy some even charge just to do a quote, and the quotes they come up with are really high.

So I decided to do my own install, but I had to find an electrician, which I did, I'm only now just ordering the major parts, but it coming together slowly, then I just need to get the electrician in to do his part.

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