Top 5 Commercial Solar Installation Red Flags: Why Choosing the Right Partner Matters

Imagine this: A national retailer invests in a solar project, hoping to see energy cost savings and carbon footprint reductions for decades to come. Everything seems on track — until the project is delayed by months due to a missed utility interconnection deadline because of a permitting issue. Worse, the installer didn’t file for key tax incentives, costing the business hundreds of thousands in lost savings. It’s a nightmare scenario, but one that’s entirely avoidable with the right partner.

Commercial solar solutions offer huge benefits, from cost savings to enhanced sustainability, yet the success of these projects depends heavily on your choice of provider. Without careful vetting, companies risk falling into costly traps that jeopardize their long-term return on investment (ROI). To help you avoid this fate, here are the top five red flags to watch for when choosing a commercial solar installation partner.

Most Common Solar Partner Red Flags

In the world of commercial solar systems, a reliable solutions provider is essential. Solar panels often come with warranties of up to 25 years, so your solar company should be one that you can count on for the long haul. Each red flag below can indicate potential issues that may jeopardize your investment over time.

1. Inability to Execute

The commercial solar panel installation market includes many players, some with limited experience and resources. Beware of companies that overstate their capabilities. Often, smaller firms project a big-company image and take on projects they aren’t equipped to handle.

Recommendation: Evaluate the experience of any prospective partner by reviewing completed projects similar to your own in scale and complexity. Ask for references and evidence of completed projects, and assess their core specialties to confirm they align with your needs.

2. Poor Project Management Skills That Erode Trust

Project management is critical in any commercial solar project. Red flags here include a partner that consistently misses deadlines, introduces scope creep, or fails to communicate transparently. Poor project management can lead to budget overruns, missed deadlines, and a loss of trust.

Recommendation: Examine provider reviews and testimonials and consider the certifications or licenses they hold. Request specifics on past clients, average project sizes handled, and team structure. Look for signs of strong leadership and clear communication practices, as these can be good indicators of reliable project management.

3. Solar Interconnection Gone Wrong

Technical expertise is critical for navigating the interconnection process, which is the point at which a solar system connects with the utility grid. This complex process requires a thorough understanding of local utility requirements and regulations. Errors in this area can result in delays, extra costs, or even project termination. Beware of contractors that tell you they can get a project through interconnection significantly faster than anyone else.

Recommendation: Choose a partner with a proven track record of successful interconnections with local utility providers. Ask about their familiarity with interconnection regulations and request specifics on recent projects in your area. It’s essential to verify that they understand the nuances of the process, including obtaining all necessary permissions to operate (PTO).

4. Throwing Money Away With Missed Financial Incentives

The right partner can help your business save significantly through available financial incentives, rebates, and tax credits. Unfortunately, some providers lack awareness of these programs or fail to apply for them, leaving potential savings on the table. Missed financial incentives can impact the project’s return on investment and overall viability.

Recommendation: Confirm your partner is well-versed in the federal solar Investment Tax credit (ITC) as well as rebates and other incentives on the state level, including net-metering programs. They should have a clear strategy for securing these savings and integrating them into your project’s financial model. Incentives vary from state to state, so it’s also important to choose a partner with a national footprint that understands regional policy nuances.

Check out the PowerFlex Policy Hub to see the latest incentives in your area.  

5. Lacking Knowledge of Solar Policy Shifts

Policies and regulations around solar power can shift over time, which can impact project planning, permitting, and ROI. A knowledgeable solar partner should proactively monitor and adapt to these changes to avoid unforeseen issues.

Recommendation: Make sure your prospective partner actively monitors policy changes at local, state, and federal levels. They should be able to provide recent examples of adapting to regulatory shifts and be willing to help you navigate the permitting process in your area.

How to Avoid Red-Flag Providers

Selecting a reliable partner doesn’t have to be daunting. Here are a few key tips to help you avoid companies exhibiting these red flags.

1. Ask for References: Quality providers will have satisfied clients willing to share their experiences, or at the very least, case studies or testimonials from satisfied customers on their company website.

2. Receive and Compare Multiple Quotes: Different providers may present unique project plans or price points; understanding each can help you make an informed decision. Also be sure to ask about financing options and power purchase agreements (PPA) that can reduce or even eliminate upfront installation costs.  

3. Verify Credentials: Ask about certifications, licenses, and expertise with the type of solar panel system you’re interested in — whether it’s a rooftop system, ground-mount, or solar carport.

4. Consider Maintenance & Monitoring: Solar energy systems are 25-year assets. An established solar provider with a long-term vision can offer continued support well after installation.

5. Evaluate Production Models: Avoid providers who present overly optimistic energy production models that may not accurately reflect real-world performance. Again, getting quotes from multiple providers can surface the companies that do this — and help you avoid them.

Ready to Get Started With Commercial Solar?

Choosing the right long-term partner for your solar project is a vital step in meeting your energy needs. At PowerFlex, we’re committed to supporting business owners and operators through every stage of the commercial solar project lifecycle — from initial design and permitting to incentive support, installation, and asset management. Our cost-effective clean energy solutions help customers from commercial property owners to nonprofits reduce their electricity bills and operating costs, increase their energy efficiency, and bolster energy independence.

Contact PowerFlex today to learn how we can support your clean energy projects and ensure a successful, sustainable future for your business.