How Do Solar Companies Work? From Sale to Installation
How solar companies work
In this article
Solar companies find customers, assess the home and energy use, design a system, help arrange financing (cash, loan, lease or PPA), handle permits and utility interconnection, install the panels and inverter, pass inspection, and get permission to operate from the utility. They make money on the system price, and some also earn from leases and service.
Step-by-step process
- Lead and consultation: customer asks for a quote
- Site assessment: roof condition, shade, electrical panel, energy bills
- System design: size, panel layout, inverter and batteries
- Proposal: price, savings, incentives and financing options
- Contract and financing
- Permits: building and electrical permits, HOA approval
- Interconnection application: to the utility
- Installation: racking, panels, wiring, inverter (often 1–3 days)
- Inspection: local building inspection
- Permission to operate (PTO): utility approval to turn on
Financing options
| Option | Who owns the system |
|---|---|
| Cash | Homeowner |
| Solar loan | Homeowner |
| Lease | Solar company or financier |
| Power purchase agreement (PPA) | Solar company; homeowner buys power |
Types of solar companies
- Installers design and install
- Dealers / sales companies sell and partner with installers
- Lease/PPA providers own systems on customers' roofs
- Manufacturers and distributors make and supply equipment
Do energy companies pay for solar?
Under net metering or similar programs, utilities credit or pay homeowners for extra electricity sent to the grid. The rate depends on local rules.
How solar companies make money
Through the system price (equipment, labour, overhead and margin), lease or PPA payments, battery add-ons and service. More: Is the solar energy business profitable? and How to start a solar panel business.
Frequently asked questions
How do solar companies work?
They sell, design, finance, permit and install solar systems, then get utility approval.
How long does solar installation take?
Installation often takes 1–3 days; the full process can take weeks to months.
Do energy companies pay for solar energy?
With net metering, utilities credit or pay for excess power.
What is a solar PPA?
An agreement to buy power from panels the solar company owns.
How do solar companies make money?
From system sales, leases or PPAs, batteries and service.
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AI & automation engineer · websites, apps and motion design
I build AI agents, automations, websites, apps and motion design for businesses. These guides answer the questions people actually search, written from hands-on experience building them.
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