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Solar Panel Installation

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A residential solar installation is a small power plant bolted to your house. Modules on the roof or on a ground-mounted rack produce direct current, one or more inverters turn it into alternating current at household voltage, and the output lands in your service equipment through a dedicated circuit or a supply-side connection. Around that sit the parts nobody photographs: flashed roof penetrations, conductors and conduit, rapid shutdown equipment, labels, a production monitor, and increasingly a battery that changes both the wiring and the permitting.

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This type of work often has to be done by a licensed or certified trade. Ask to see licences and proof of insurance before work starts.
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Two things decide the shape of an American solar project before anyone climbs a ladder, and neither is on your roof. The first is who is allowed to do the work, which is a state question: California licenses a C-46 Solar Contractor, Florida defines a separate solar contractor category in statute, and Texas regulates the installation through its electrician licensing while separately regulating the people who sell you the system. The second is what your utility will do with the power you export, which is set by your state commission and your utility rather than by your installer's spreadsheet.

On LokalMatch you describe the roof, the age of the house, your ZIP code and what you want the system to do, and installers who cover your area get in touch. Pros pay for the requests they choose to take. LokalMatch does not install solar, does not set prices and does not vet, rank or recommend anyone, so verify the licence with your state board yourself, and check any tax or incentive claim against the IRS and your utility rather than against a sales presentation.

From site assessment to permission to operate: how a US solar project actually runs

The sequence matters more than the equipment brochure. A site assessment measures the roof planes, shading and structure, and establishes whether the roof has enough service life left that you will not be paying to remove and reinstall an array in a few years. A design follows, then two parallel approvals: a building and electrical permit from the local authority having jurisdiction, and an interconnection application to the utility. Only after installation, inspection and the utility's final sign-off, commonly called permission to operate, may the system be switched on.

Washington's rules show what an inspector is actually holding you to, and they are more specific than most homeowners expect. Chapter 296-46B WAC requires that the photovoltaic system design review be available at the installation site at the time of the first inspection and until the inspection process is complete. It also treats structural work differently from electrical work: the portions of a support structure or foundation that are exclusively mechanical and are not part of a bonding or grounding path may be done by the owner, a registered general contractor or a licensed electrical contractor without an electrical permit or inspection, while all electrical work, including wiring installation and terminations, must be completed by the entity authorized to do that electrical work.

The same chapter shows how system voltage is fixed on paper rather than guessed on the roof: the open-circuit voltage temperature coefficients in the listed module's instructions are used to determine maximum direct current system voltage, and where they are not supplied the voltage is calculated using Table 690.7 of the National Electrical Code with a temperature correction factor of 1.25, unless another factor can be justified and is approved by the authority having jurisdiction. Your own jurisdiction will have its own amendments, so ask which edition of the NEC is enforced there before the design is finalized, not while the inspector is standing on your driveway.

Who is licensed to install solar, and why the answer changes at the state line

There is no national solar installer's licence in the United States. California's Contractors State License Board defines the C-46 Solar Contractor as one who installs, modifies, maintains and repairs thermal and photovoltaic solar energy systems, and the classification is explicitly bounded: a licensee classified in that section may not undertake or perform building or construction trades, crafts or skills except when required to install a thermal or photovoltaic solar energy system. Florida takes a different route, defining a solar contractor in section 489.105 of the Florida Statutes as one whose services consist of the installation, alteration, repair, maintenance, relocation or replacement of solar panels for potable solar water heating systems, swimming pool solar heating systems and photovoltaic systems, while also providing that a contractor already certified or registered under that chapter is not required to become a solar contractor to perform work within their own scope.

Texas regulates the work and the sale separately, which is worth understanding because it is where most complaints start. The Department of Licensing and Regulation requires anyone who performs, or offers to perform, non-exempt electrical work in Texas to be licensed and to perform that work through a licensed electrical contractor, and it already regulated solar installation on that basis. The Residential Solar Retailer Regulatory Act, enacted in 2025 and found in Occupations Code chapter 1806, then added a layer over the selling of systems, with registration of solar retailers and salespersons beginning on September 1, 2026 and licensed electrical contractors exempt from the registration and insurance requirements but still subject to most of the Act.

The practical step is the same everywhere: ask which licence the company holds, in whose name, and verify the number with the issuing board rather than accepting a printed card or a logo on a truck. Ask, too, who pulls the permit and who meets the inspector, because a subcontracted crew working under somebody else's licence is a common arrangement and you are entitled to know whose licence your job is on.

The federal Residential Clean Energy Credit, and what changed at the end of 2025

The federal incentive that shaped residential solar economics was the Residential Clean Energy Credit under section 25D. The IRS describes it as equal to 30 percent of the costs of new, qualified clean energy property for your home installed any time from 2022 through December 31, 2025, and states plainly that the credit is not available for any property placed in service after December 31, 2025. Anyone still quoting that credit as part of your payback needs to explain, in writing, what they think you will actually be able to claim, because the date matters more than the percentage.

The detail of what once qualified is still useful for reading a quote. The IRS listed solar electric panels among qualified expenses and allowed labor costs for onsite preparation, assembly or original installation and for the piping or wiring that connects the property to the home. Used property was never eligible. Traditional building components serving a roofing or structural function generally did not qualify, so roof trusses and ordinary shingles supporting an array were out while solar roofing tiles and solar shingles were in, because they generate energy. Battery storage technology qualified from 2023 provided it had a capacity of at least 3 kilowatt hours. The credit was nonrefundable, with unused amounts carried forward.

The interaction with other money is the part most often misdescribed on a sales call. The IRS treats public utility subsidies for buying or installing clean energy property as a reduction in qualified expenses, whether the subsidy reaches you or your contractor, while utility payments for clean energy you sell back to the grid, such as net metering credits, do not affect qualified expenses. Rebates from someone connected to the sale, such as a manufacturer, distributor, seller or installer, are subtracted when they are based on the cost of the property. Treat the IRS page and your own tax adviser as the authority, and ask any installer to put incentive claims in writing rather than in a slide.

Net metering, net billing and what your utility actually pays for exported power

Export compensation is a state and utility matter, not a national rule, and it is the single biggest variable in whether a system pays for itself. The Department of Energy's homeowner guidance describes net metering as an arrangement in which system owners are compensated for solar generation exported to the grid, and is direct that whether your system qualifies depends on the policies and practices in your state and electric utility, with your local utility the place to find out what applies in your service area.

California is the clearest illustration of how much this can move. The California Public Utilities Commission reports that more than 90 percent of customer-sited solar capacity interconnected in the three large investor-owned utilities' territories sits on net energy metering tariffs, under which participating customers receive bill credits for exported generation at the retail rates they pay for consumption. Those tariffs are closed to new enrollments: since April 15, 2023, customers applying for interconnection have taken service on the net billing tariff adopted in decision D.22-12-056. A quote built on the older arrangement describes a deal that a new applicant in that state can no longer get.

The other half of the utility relationship is the interconnection itself. Washington's rule is blunt about who is in charge: anyone interconnecting a power production source to the utility distribution network must consult the serving utility and is required to meet all additional utility standards. Ask your installer which tariff you will actually be placed on, what the utility's interconnection queue looks like, whether a meter change is needed, and who is responsible if the utility requires equipment the quote did not include.

System configurations a US installer will quote

  • Grid-tied without storage: the simplest and most common arrangement, sized against your consumption and your utility's export rules, and it shuts down in an outage rather than energizing lines under repair.
  • Grid-tied with battery storage: adds backed-up circuits and changes the permit, the equipment list and the inspection; the IRS treated battery storage as qualifying property from 2023 where capacity was at least 3 kilowatt hours.
  • Roof-mounted arrays on composition shingle, metal, tile or flat membrane roofs, each with its own flashing and attachment detail and its own risk of leaks when done badly.
  • Ground-mounted arrays where roof area, orientation or shading rules the roof out, with trenching, a separate structural design and often a local setback rule.
  • Solar roofing tiles and shingles, which replace the roof covering rather than sit on it, and which the IRS distinguished from ordinary shingles precisely because they generate energy.
  • String inverters, string inverters with optimizers, or microinverters, which differ in how one shaded or failed module affects the rest and in where the serviceable electronics live.
  • Generator-plus-solar arrangements, where an existing standby generator and a photovoltaic system have to be made to coexist, which is an interconnection and controls question rather than a panel question.

Solar sales practices, contracts and the right to cancel

Residential solar has a sales problem serious enough that states have legislated against it, and knowing that changes how you read a pitch. Texas is the clearest recent example: the Residential Solar Retailer Regulatory Act requires that, from September 1, 2025, sales and lease contracts for residential solar energy systems contain specified contract provisions and disclosures and provide a five-day right to cancel the transaction, with provisions on deceptive and misleading practices and penalty enhancements taking effect alongside registration in 2026. Exemptions run to systems on multifamily buildings of four or more dwelling units or stories, nonresidential property, systems for temporary or emergency use, systems powering a single appliance, and small systems generating less than one kilowatt of peak output in the aggregate.

Even where your state has no equivalent statute, the same protections are worth insisting on in writing. Ask for the production estimate and the assumptions behind it, the equipment makes and models, who holds the workmanship warranty and for how long, what happens to the array when the roof needs replacing, and what the contract says if the utility imposes a different tariff than the one assumed. Treat any offer that expires at the end of the visit as a reason to slow down rather than to sign.

Financing deserves separate scrutiny from the hardware. A purchase, a loan, a lease and a power purchase agreement are four different transactions with different owners of the equipment, different rights to any tax benefit and different consequences when you sell the house. Ask specifically who will own the system, what happens at the end of the term, and what transferring the agreement to a buyer involves, and get those answers on paper before anything is scheduled.

Keeping an array producing after the crew leaves

  • Watch production through the monitoring the installer sets up, and learn what a normal seasonal curve looks like for your site so a real drop stands out.
  • Keep the paperwork together: permit, inspection sign-off, interconnection approval, equipment list, warranties and the design documents your jurisdiction required.
  • Have shading reassessed as trees grow, since a few years of growth can quietly take a meaningful bite out of an afternoon.
  • Inspect roof penetrations and flashings when the roof is inspected, rather than treating the array and the roof as separate assets.
  • Ask before pressure-washing or walking on modules; cleaning needs are site-specific and careless cleaning does more harm than dust.
  • Keep ground-mount areas clear of vegetation and keep animals out from under roof arrays, where wiring is easy to damage and hard to see.
  • Know where the rapid shutdown device and the system disconnect are, and make sure anyone else in the household does too, because the fire department may ask.

Solar Panel Installation: frequently asked questions

Can I still claim the federal solar tax credit?

The IRS states that the Residential Clean Energy Credit equals 30 percent of the costs of new, qualified clean energy property installed from 2022 through December 31, 2025, and that the credit is not available for any property placed in service after December 31, 2025. If an installer is still quoting it, ask them to show you on the IRS page what you would actually be able to claim for your installation date, and confirm it with your tax adviser before you sign anything.

Will my solar panels keep the lights on during an outage?

Not by themselves. A standard grid-tied system stops exporting when the grid goes down, which is what keeps it from energizing conductors that crews may be working on. Keeping circuits alive requires battery storage with the right equipment, or a separate standby generator with proper transfer equipment. That decision changes the design, the permit and the equipment list, so raise it before the system is designed rather than after.

Do I need my utility's approval before switching the system on?

Yes. Interconnection is a utility process running alongside your building and electrical permit, and the system may only operate once the utility has given its final approval. Washington's rules state that anyone interconnecting a power production source to the utility distribution network must consult the serving utility and meet all additional utility standards. Ask your installer who files the interconnection application and what the current timeline looks like in your service area.

How do I know the company is licensed to install solar in my state?

Ask which licence they hold and verify the number with the issuing board. California licenses a C-46 Solar Contractor for thermal and photovoltaic systems. Florida defines a solar contractor category in section 489.105 of its statutes, while allowing contractors already certified or registered under that chapter to do this work within their own scope. Texas requires non-exempt electrical work to be done through a licensed electrical contractor, and separately regulates residential solar retailers and salespersons.

What will my utility pay me for the power I export?

That depends entirely on your state and utility. The Department of Energy says whether your system qualifies for net metering depends on policies and practices in your state and electric utility, and your local utility is the place to ask. California shows how quickly it changes: its net energy metering tariffs are closed to new enrollments, and since April 15, 2023 new interconnection applicants take service on the net billing tariff instead. Ask which tariff your project will actually be on.

Should I replace my roof before installing solar?

If the roof is near the end of its life, yes, because removing and reinstalling an array later costs real money and reopens every penetration. Have the roof's remaining service life assessed as part of the site assessment, and ask the installer what they charge to remove and reinstall the array if a roof replacement becomes necessary during the system's life. Get that number in the contract rather than discovering it a decade later.

Sources

  1. IRS: Residential Clean Energy Credit (section 25D)
  2. California Contractors State License Board: C-46 Solar Contractor classification
  3. Florida Statutes section 489.105: definition of a solar contractor
  4. Texas Department of Licensing and Regulation: Residential Solar Retailers
  5. TDLR: Residential Solar Retail Sales Now Regulated by TDLR (Occupations Code chapter 1806)
  6. WAC 296-46B-690: Solar photovoltaic systems (Washington's NEC amendments)
  7. WAC 296-46B-705: Interconnected electric power production sources
  8. California Public Utilities Commission: Net Energy Metering and the net billing tariff
  9. US Department of Energy, Solar Energy Technologies Office: Homeowner's Guide to Going Solar

Written by the LokalMatch editorial team. Last reviewed September 14, 2026. How we write and check our guides

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What affects the cost of solar

Prices depend on the details of your project. We only publish price ranges when they’re backed by real LokalMatch quote data or reliable sources. Until then, here’s what usually changes the price:

  • Type and amount of work, from a single fixture to a full rewire
  • Condition and age of the existing wiring
  • Panel and service capacity
  • Distance from the panel to the new circuit
  • Access through finished walls and ceilings
  • Permits and inspections

How to compare solar installers before you hire

  • Hire a licensed electrician or electrical contractor for any wiring, panel or new circuit work.
  • Ask whether the work needs a permit and inspection, and make sure the electrician arranges it.
  • Get a written quote that lists fixtures, materials, patching of walls and ceilings, and permit costs.
  • For panel upgrades and EV chargers, ask them to check whether your electrical service can handle the added load.
  • Choose someone who explains what they found in plain language before starting.

Questions to ask solar installers before you hire

  • Are you licensed for electrical work in my area?
  • Will you get the permit and arrange the inspection?
  • Can my current panel and service handle this work?
  • Will you need to open walls or ceilings, and who patches them afterwards?
  • Is the price fixed, or could it change once you see the existing wiring?
  • What warranty do you offer on your work?

When to call a pro for solar

  • Burning smells, scorch marks or warm outlets and switches: turn off the circuit at the panel if it's safe to do so and call an electrician.
  • Breakers that trip again and again
  • Flickering or dimming lights that aren't fixed by changing the bulb
  • Any sparking, buzzing or exposed wiring

Solar permits and local rules

Some solar work needs a permit or has to meet local bylaws. Rules vary by municipality, so ask your pro whether a permit is needed and who will apply for it — and check with your city or town if you’re unsure.

Permits and licensing

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