If you’re comparing solar and battery quotes, you may come across something that seems confusing. Two companies may be offering what looks like almost exactly the same system.
For example:
- a similar-sized solar system;
- the same brand of panels;
- the same inverter;
- the same battery;
- similar stated warranties.
And yet one quote may be noticeably cheaper than the other. So why?
The answer is that a solar and battery system is much more than a list of equipment. The products matter, of course. But so do the people designing the system, installing it, checking it, supporting it and standing behind it for years afterwards.
A quote doesn’t just pay for the hardware. It also pays for the business behind the installation.
The equipment is only part of what you're buying
A solar and battery system is intended to operate on your home for many years. That means the quality of the installation can be every bit as important as the products themselves.
Two installers can use exactly the same equipment and still deliver very different outcomes. One installation might be carefully planned, neatly installed, properly tested and supported afterwards. Another might be completed as quickly and cheaply as possible.
From the outside, the bill of materials can look identical. The finished product may not be.
There are different types of solar businesses
The Australian solar industry includes a wide range of business models. There are many excellent operators across all sizes of business, but broadly speaking, homeowners will often encounter three different models. Understanding the differences can make comparing quotes much easier.
1. The very small operator
At one end of the market is the small owner-operator. This may be one electrician working with an apprentice or a small team completing a limited number of installations each week. There can be advantages to this model.
The business may have very low overheads, which can allow it to offer competitive pricing. You may also deal directly with the person who will actually install the system. But there are trade-offs to consider.
A very small business has limited capacity. If the owner is on a roof installing solar all day, that same person may also be responsible for answering phones, quoting new work, ordering equipment, managing warranty claims and responding to service issues.
When everything is running perfectly, this may not matter. The real test comes two, five or eight years later when something needs attention. Will the business still be operating? Will there be someone available to take your call? How quickly can they attend the property if there is a problem?
Even when the equipment is covered by a manufacturer’s warranty, someone still needs to diagnose the issue, manage the claim and potentially carry out the replacement work.
That after-sales support has a cost. Businesses that don’t have dedicated service resources may naturally be able to quote less.
2. The sales-and-subcontracting model
Another common model is a larger solar company that is primarily focused on marketing and sales.
These businesses may generate large numbers of enquiries, employ sales teams and complete significant installation volumes. The actual installation work, however, may be subcontracted to external installation crews.
Subcontracting itself isn’t necessarily a problem. There are many excellent subcontract electricians and installation businesses. The important question is how the relationship is managed and how the installers are paid.
When subcontractors are working to very tight fixed installation rates, there can be pressure to complete jobs as quickly as possible.
A straightforward installation may be fine. A difficult installation is where the difference can become apparent.
Good solar and battery installations sometimes require extra time. Roof layouts can be complicated. Cable routes may need more thought. Switchboards may need additional work. Battery locations can create challenges.
Getting the panels visually aligned, concealing cabling properly and making the finished installation look like it belongs on the home can all take additional time.
If the installer is financially rewarded for finishing as quickly as possible and moving to the next job, the incentives may not always align perfectly with the homeowner. This is where workmanship can become an important point of difference.
What can poor workmanship actually mean?
Most homeowners understandably focus on the major pieces of equipment. But many long-term problems aren’t necessarily caused by the solar panel or battery itself.
They can come from the installation.
Examples can include:
- poorly planned cable runs;
- exposed or untidy conduit;
- badly positioned equipment;
- inadequate roof penetrations;
- water ingress;
- rushed switchboard work;
- poor equipment clearances;
- insufficient attention to manufacturer installation requirements; and
- electrical faults that only become apparent later.
The quality of an installation often comes down to the standards, training and accountability of the people doing the work.
The established, fully supported installer
The third model is an established solar business with its own internal infrastructure. This is the model AG Solar operates.
AG Solar designs, supplies, installs and maintains solar and battery systems. Rather than simply selling a system and passing the installation to the lowest-cost available contractor, the business is structured around an end-to-end service model, including internal sales, operations, installation and service capability.
That structure costs more to operate. But it also provides something important: accountability.
The people designing the system, installing it, supporting it and servicing it are part of the same business.
AG Solar’s installation operation includes employed team leaders and apprentices, while its dedicated service function manages technical issues, service visits, warranties and replacements.
That means if something goes wrong later, the customer has somewhere to call.
What are you paying for beyond the equipment?
When you compare two quotes with similar hardware, the price difference may reflect things that don’t appear on the equipment list.
More experienced people:
Training, supervision and retaining good tradespeople costs money.
Better planning:
Careful system design, equipment placement, roof layout and cable planning all happen before and during the installation.
Quality control:
Established installation processes and accountability can reduce the risk of shortcuts.
After-sales service:
A dedicated service team has a real operating cost, but it can become extremely valuable if something goes wrong later.
Warranty assistance:
A manufacturer’s warranty doesn’t always mean the manufacturer sends someone to your house.
Often the installer becomes the bridge between the homeowner and the manufacturer.
Business infrastructure:
Operations staff, scheduling, warehousing, safety systems, vehicles, insurance, training and customer support all contribute to the cost of delivering a professional installation.
These things may not appear as separate line items in your quote. But they are still part of what you’re buying.
The cheapest quote can still be the right quote
Price absolutely matters.
There is no reason to pay more simply for the sake of paying more. And a cheaper installer isn’t automatically a bad installer. But price shouldn’t be considered in isolation.
If two quotes look similar, ask a few questions before assuming they’re identical.
- Who will actually install the system?
- Are they employees or subcontractors?
- How long has the company been operating?
- Does the business have a dedicated service department?
- Who do you call if something goes wrong in three years?
- Who manages a manufacturer’s warranty claim?
- How much installation work does the company itself actually control?
- And what reputation does the business have for workmanship and after-sales support?
The answers can explain a surprising amount of the difference between two prices.
You're not just buying a battery
Solar and battery systems are unusual purchases. You’re buying electrical infrastructure that may sit on your roof, inside your switchboard and on the side of your home for well over a decade.
Choosing purely on the upfront equipment price can therefore miss a large part of the decision.
The better question isn’t simply:
“Who can sell me this equipment for the lowest price?”
It’s:
“Who do I trust to design it properly, install it properly and support me if something goes wrong?”
Why AG Solar?
At AG Solar, our approach is built around quality installation and long-term support.
Based in Caringbah, AG Solar has extensive experience designing, installing and supporting solar and home battery systems throughout the Sutherland Shire, Southern Sydney, Wollongong and the Illawarra.
We design, supply, install and maintain our systems with an established team and an end-to-end service model.
That means we’re not trying to be the cheapest installer in the market. We’re trying to deliver a system that is designed properly, installed properly and supported properly.
Because when you’re making an investment that should last for many years, the company standing behind the equipment matters just as much as the equipment itself.
If you’re comparing solar or battery quotes and want help understanding the real differences between them, speak with the AG Solar team.
We’re happy to help you compare more than just the price.
