7 red flags when selecting a solar provider

The solar industry is notorious for having a few bad eggs; in fact, hundreds of solar businesses have been banned from advertising in newspapers and on Google. Unfortunately, social media isn’t a regulated advertising platform, so many solar companies are making wild claims, like the real ads below.

Remember, if it seems too good to be true, it probably is. These companies will offer a system at a bottom-dollar price and subcontract the work out to inexperienced or untrained installers at a bottom-dollar price. So how do you navigate the world of solar without being deceived? We’ll tell you how.

1. Huge online presence, but no physical address

All businesses these days have an online presence, but be wary of the solar companies that seem to go overboard in their activity. Have a good read of their content, as it might read as if it was written by AI. A reputable solar provider will have a website, active social media and active Google My Business listing that you can visit to learn more about their company and their services.

When checking their website or Google My Business listing, be sure to check their address. If it’s a PO Box, or they claim to be located in the middle of Brisbane city, check their business history. A solar installer warehouse and office on Queen Street doesn’t quite make sense…

2. Negative reviews or a huge amount of 5-star reviews

If you do a quick online search for the solar provider, you should be able to find some reviews from past customers. If you see a lot of negative reviews, it’s a good sign that you should avoid doing business with that company. Additionally, watch out for companies that have 1,000+ 5-star reviews, as it’s possible these have been purchased.

4. Predatory high-pressure sales tactics

A reputable solar provider will not use high-pressure scare tactics, like “time is running out”, “one-day offer only” or “only for a limited time”. The government rebates in Queensland stay put until 2030 (unless the legislature changes), so don’t believe the ads that say the incentives and rebates are ending soon.

Other tactics can include:

• Utilising door-to-door salespeople

• Making false or misleading claims about the benefits of solar power

• Threatening to cancel the offer if the homeowner doesn’t sign right away

• Using scare tactics to make the homeowner feel like they need to act quickly.

If a solar provider is using these tactics, it’s a good sign that they’re not legitimate.

5. Businesses going under

A number of disreputable solar companies have gone out of business in recent years. In fact, there were 700 since 2011, leaving 650,000 customers with no recourse if their systems fail. In some cases, these companies have “phoenixed”, which refers to when they fold and then re-open in order to avoid paying out warranties or creditors.

If you’re considering solar power, it’s important to make sure that the company you choose is reputable and has a good track record. You should also ask about the company’s warranty policy and make sure that you understand your rights if the company goes out of business.

6. Unaffordable financial plans

Some solar providers have been offering unaffordable credit to homeowners in order to sell them solar systems. This can be a major problem, as it can leave homeowners with high-interest debt that they can’t afford to repay. If you’re considering solar power, it’s important to make sure that you can afford the upfront costs.

7. Cheap solar systems are… cheap

If this isn’t enough to put you off using a questionable installer, it’s worth considering the fact that all solar sales companies will be paying subcontractors very little to do your installation. This leads to a rushed job and can have major repercussions in the future, including:

• A sub-standard or unsafe installation. Cheap solar systems are more likely to be installed incorrectly, which can lead to safety hazards.

• Below average output. Cheap solar systems often use lower-quality panels and inverters, which can lead to below-average energy output.

• Broken components. Cheap solar systems are more likely to have broken components that often cannot be replaced under warranty.