Harnessing the power of solar energy is only one effort many eco-conscious customers think about when trying to scale back their carbon footprint. A decrease energy invoice is the purpose. Yet the endeavor can at occasions result in extra complications and value than customers anticipated.
Following an uptick in client complaints towards solar panel firms, we remind Iowans to be ready for a myriad of points that may crop up when exploring solar panel installations.
Solar energy is a clear, more and more reasonably priced power supply, so it’s nice to see extra Iowans contemplating putting in panels We encourage customers to do their analysis earlier than signing contracts.
From 2019 by way of 2021, the Attorney General’s Consumer Protection Division acquired 15 complete complaints relating to solar energy programs. So far in 2022, the division already has acquired 40 complaints.
Many customers have reported issues earlier than, throughout and after set up of solar panels. Complaints acquired have included the next points:
- Delays in solar panel set up.
- Exaggeration of energy financial savings.
- False guarantees to purchase again power.
- Exorbitant financing and charges.
- Claiming false relationships or endorsement of energy firms.
- Improper set up.
- Defective solar panels.
- Warranty service failures.
- Non-communication from solar firms.
- Denial of solar tax credit.
- Failure to cancel and supply a refund.
- Failure to offer contracted providers.
- Property injury at time of set up.
In many circumstances, customers who’ve began the method of buying solar panels have spent hundreds or tens of hundreds of {dollars} on the programs. However, sooner or later the solar firm both fails to put in the panels, improperly installs the panels, or fails to honor repairs below guarantee.
One Iowan instructed the legal professional common’s workplace that lower than a 12 months after buying a solar panel system, the corporate he bought from was on website to make repairs for defects. However, the system was improperly reassembled and left in a nonfunctioning state. Numerous makes an attempt to contact the corporate by way of e-mail, phone, social media and written letter have been unsuccessful.
It is anticipated that the solar business will sluggish in 2022 within the face of producing and supply-chain challenges. This may additional have an effect on the pace at which installations and repairs happen.
Another grievance acquired by the legal professional common’s workplace: A possible buyer sought data from an organization after receiving an commercial that claimed the system may very well be put in at “no cost out of pocket.” The client crammed out a type and was instantly contacted by a solar firm. The consultant for the corporate quoted the system at $30,140. When requested concerning the “no cost out of pocket” advert, the rep instructed her she was unaware of such a deal.
Another client wrote the legal professional common’s workplace after being denied a solar tax credit score after the annual restrict handed by lawmakers was reached on the solar credit score appropriation. The client famous that that they had rigorously budgeted the price of the system to incorporate the credit. Remember, tax credit mirror authorities insurance policies, so there isn’t any assure that solar tax credit can be accessible sooner or later.
It’s necessary to recollect there aren’t any free solar panels. If a solar firm gives to put in solar panels in your home for no cash down, it is going to doubtless be a part of a solar lease or power buy settlement. According to the Federal Trade Commission, customers pay a month-to-month fee for the energy the solar panels produce below these agreements. The solar firm you lease by way of will retain possession of the panels and profit from any solar tax credit.
While the typical solar lease could save customers cash, that continues provided that issues go easily. If a client indicators a solar lease and adjustments their thoughts, sells their home or the system experiences manufacturing points, customers can run into pricey payments.
As for tax credit, the Iowa Solar Energy System Tax Credit expired on the finish of 2021. The state made the choice at the moment to not pay out credit to clients who have been on the waitlist for residential solar programs. According to the Iowa Department of Revenue, the credit had paid a mean of $3,498 to every applicant throughout the 2020 cycle.
If you might be contemplating the acquisition of a solar energy system, the Federal Trade Commission suggests taking a number of steps earlier than agreeing to a contract:
- Review your utility invoice to see how a lot energy you used within the final 12 months and what it value. See what a part of the whole invoice is for “metered” electrical energy or kilowatt-hours (kWh) of utilization and what’s for different gadgets akin to supply prices. Even for those who scale back the variety of kilowatt-hours you purchase from the utility, you’ll nonetheless must pay the utility’s fastened expenses, like supply or administrative prices.
- Evaluate how you employ energy and search for methods to scale back your home’s electrical energy use. Make your home and home equipment extra energy environment friendly and guarantee your home is correctly weatherized to scale back your energy wants.
- Consider how lengthy you propose to remain in your home. A residential solar system is designed to remain on a home for at the least 20 years. Leases and power buy agreements usually are long run; some final 20 years. If you assume you would possibly transfer in that point, learn how putting in a system will have an effect on your skill to promote your home. Ask the solar firm about its coverage on transferring the contract to the brand new house owner after a sale and make sure that what it tells you is identical as what’s within the contract.
- Figure out what measurement system it’s essential to meet your common energy utilization. Learn concerning the completely different merchandise accessible in your space that may work on your home. The customizable calculator from the Department of Energy makes use of your deal with and particulars you present a few system that will help you estimate how a lot energy it is going to produce.
- If you’ve gotten a house owner’s affiliation, discover out for those who want its approval to put in a system.
Solar programs use a number of inverters to transform direct present (DC) electrical energy from the solar panels into alternating present (AC) electrical energy utilized by your home equipment and shops. The quantity of power you get from a solar panel system depends upon:
- the typical variety of hours of direct, unshaded daylight your roof will get yearly.
- the pitch (angle), age and situation of your roof, and the compass course it faces.
- the scale and energy of your system.
- environmental elements akin to snow, mud or shade which will cowl the system.
Contact your utility to see what preparations it makes with owners who produce solar power. Your utility could use “net metering,” which pays you or offers you credit score for extra power your system produces throughout the day and returns to the grid.
The Iowa Utilities Board gives a useful client informational information for on-site technology meant to help residential or small companies which can be contemplating putting in electrical technology on their property. Additionally, the FTC gives customers with further useful suggestions and issues in the case of the acquisition of solar panel programs.
Finally, do not forget that the set up of a solar system remains to be a home enchancment challenge like some other. Protect your self similar to you’ll for those who have been hiring for a kitchen transform or a roof alternative. Take steps akin to getting all the pieces in writing, limiting up-front funds, setting a begin date and completion deadline, specifying the scope of the work and the tools that can be put in, verifying promoting claims (for instance, is the marketed electrical technology primarily based on Iowa use or on panels situated in a state that’s sunny all 12 months), and many others. See further recommendations on the legal professional common’s contractor guidelines.
If you’ve gotten encountered points buying a solar panel system, you may file a grievance with the Iowa Attorney General’s Consumer Protection Division right here or name 515-281-5926 (within the Des Moines space) or 888-777-4590 (exterior the metro space).
Tom Miller is the Iowa legal professional common. He could also be reached at client@ag.iowa.gov.
