Are you planning to invest in Solar panels?

Please check and verify what the Solar company is telling you. And remember YOU HAVE RIGHTS and protection under Consumer Law

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You can report your experience with Solar companies. Your data WILL NOT BE DISCLOSED TO THIRD PARTIES

FACTS

Here are some important fact you should know BEFORE you speak to a Solar company

A Solar system is NOT a home improvement – it is an INVESTMENT that should provide you 25 years of savings and returns. So be sure about the company who installs the Solar

Home Solar systems are guaranteed for 2 to 5 years only, NOT 25 years – this is a “performance guarantee” and simply guarantees how the efficiency will decrease over the 25 years

Since 2011 more than 7,000 Solar companies have gone bust or moved on to doing other things

Solar systems DO break down and need servicing & maintenance

Homeowners must have insurance in case a tradesman has an accident or fall on their property

No home will consume ALL the electricity generated by their Solar in a year, even with a battery.

Badly installed Solar panels can cause leaks thru the roof which can take two years to show – the first year water can leak into the loft and it could leak thru the ceiling in the second year

Solar panels caused 66 fires in first seven months of 2022, up from 63 for the whole of 2019

Solar companies are required by Law to install scaffolding before installing rooftop Solar panels

Unless the Solar company provides an Insurance backed guarantee, you are at risk if the company goes bust

PROTECTIONS

There are a number of independent organisations that can protection against mis-selling

If you choose a Solar company that does not have these accreditations, YOU ARE AT RISK

MCS – the Microgeneration Certification Scheme certified installers are required to meet high standards of workmanship and materials. Solar installers that are registered with MCS must employ electricians who have been trained specifically and accredited to install Solar systems. MCS certified installations are eligible for the Smart Export Guarantee (SEG), which pays homeowners for the Solar electricity they export to the grid.

HEIS(Home Insulation & Energy Systems Quality Assured Contractors Scheme) is a consumer protection scheme for the installation of renewable energy and home energy efficiency products in the UK. It is a Chartered Trading Standards Institute (CTSI) approved Consumer Code, and its members must adhere to a strict set of rules and standards. The HEIS scheme offers a number of benefits to consumers, including:

  • Deposit and stage payment protection: Consumers who use a HEIS member installer are protected against the loss of their deposit or stage payments if the installer goes out of business before the installation is complete.
  • An Insurance Backed Guarantee provides protection in the event your installer has ceased trading and is unable to honour the terms of their written guarantee, subject to the policy terms and conditions.
  • Dispute resolution: Consumers have access to free mediation, free independent inspection, and free access to The Ombudsman to help resolve any issues that may arise with their installation.
  • Quality assurance: HEIS members are audited regularly to ensure that they are meeting the scheme’s high standards of workmanship and customer service.

EPVSEnergy Performance Validation Scheme is a certification standard that validates the processes used by installers to ensure energy-saving, generating and/or storing calculations/estimates for home energy products are accurate and valid. It is designed to protect consumers from receiving incorrect performance estimates, running costs, and where applicable, incentive income or grants by auditing the contractual paperwork to ensure it meets our certification standard.

FCA (Financial Conduct Authority) is an independent regulator of the financial services industry in the UK. It is responsible for regulating financial firms and markets to protect consumers, promote market integrity and financial stability. The FCA protects consumers in a number of ways, including:

  • Setting and enforcing rules and standards of conduct for financial firms.
  • Supervising financial firms to ensure that they are meeting the FCA’s requirements.
  • Providing information and advice to consumers about financial products and services.
  • Taking action against financial firms that break the rules or harm consumers.
FIVE QUESTIONS YOU MUST ASK BEFORE ALLOWING A SOLAR COMPANY INTO YOUR HOME

  1. How long has your company been trading? – if less than 5 years, beware
  2. How long have your company been installing solar panels? Lots of electricians and roofers have recently switched to installing Solar, so they will have limited experience
  3. Is your company accredited to MCS, HEIS, EPVS and FCA – no accreditations means you may not have the protection in case things go wrong
  4. Do you provide Insurance backed guarantee to protect my deposit or Solar system in case the company goes bust? Insurance Backed Warranties are an important protection. Not ALL Solar companies can get this as the insurers will check the background of the company
  5. Do you always use scaffolding to install panels on the roof? To save costs (£600-900) companies are installing Solar panels with only ladders. This is against the Health & Safety Law

PROBLEMS

Some of the common problems for people looking to install Solar

One Solar company has quoted a payback time of 7-8 years and another 3-4 years? Who is right?

This is another form of mis-selling. The most reliable quote will be from the company that is accredited to EPVS as they will independently validate the quote. The amount of Solar generated depends on many factors –

  • The size and efficiency of the solar system
  • The location of the property, the size and pitch of the roof and which way the roof is facing and if there are any obstructions like trees, chimneys and gables will determine the amount of Solar that is generated over the year
  • The payback will also depend on the household electricity consumption patter and how much of the Solar you can use and how much is sent to the grid
  • The amount your electricity company pays you for the electricity you have “exported”
I have been told by one Solar company that I will use ALL or most of the Solar electricity that is generated

This is not true and a common form of mis-selling. During the year most of the energy consumption is morning and evenings and most of the Solar generation is during spring and summer. If fact June to August a Solar system can generate 3-4 times the daily energy that is consumed and from November to March there will be days when there is no generation at all. According to a study by the National Renewable Energy Laboratory (NREL), the average solar self-consumption rate for residential solar PV systems is around 30%. This can be increased to 60% with batteries.

One Solar company said I will be paid for all the Solar electricity generated by my Solar system

Not true. You will only be paid for the electricity that is “exported” to your energy supplier. Residential solar systems installed by a MCS accredited Company are eligible for a Smart Export Guarantee scheme. This will pay anything from 3p to 12p depending on your energy supplier.

What happens when things go wrong?

There are many well established, professional and ethical Solar companies who are keen to maintain their reputation and will ensure they do a professional job and will be around to put things right. Unfortunately like in any Industry you will find rouge traders who are simply in it to make quick money and get out.

If things do go wrong the first step is to discuss the problem with the company who installed your system.

If this doesn’t resolve the problem then go to the accreditation bodies as they have considerable influence and they will act on your behalf to see you get the support and service you need.

In the unlikely event this does not resolve your problem of if the Solar company was not registered with any accreditation bodies, then you can seek help from Citizens Advise or Trading Standards.

If the Solar company who installed your system has ceased trading or is not responding, your only option is to look for another local MCS registered Solar company

How do I find a reputable Solar company? Check and ask questions
  1. look on the MCS website to see if they are registered and when they started installing Solar.

https://mcscertified.com/find-an-installer/

  1. check to see if they are registered with the HEIS scheme which offers protection

https://search.hiesscheme.org.uk/ 

  1. See if they are signed up with the EPVS as they will validate the savings quoted by the Solar company

https://epvs.co.uk/consumers/consumer-benefits/

  1. Check with Companies House to see their accounts and trading history

https://find-and-update.company-information.service.gov.uk/

  1. Visit the Solar companies website to see if they have customer testimonials and ask to speak to them
  2. See what else they do besides Solar – it could be an electrician who just got into Solar
  3. Also check if they have won any awards or accolades for installing Solar systems
Why are some Solar companies more expensive than others ?
  1. All the accreditations and protections like MCS, HEIS, EPVS cost money. Solar company have to pay a fee for each installations AND they will be audited at least once a year. This adds significant costs.
  2. Some Solar installers with no any accreditations have been known to work under another Solar companies accreditations. This is unlawful and offers no protection, so you must check and verify this
  3. If a Solar company installs panels by just using ladders, this can reduce their price significantly as proper scaffolding can add £600-1200 to the Solar quote
  4. Solar companies must employ technicians who have been trained and are qualified to install Solar systems. These technicians will expect to earn much more than regular house electricians
  5. Some Solar companies provide Insurance backed Warranty, so if the company ceases trading, your system is covered. The premium for this Insurance must be paid by the Solar company
  6. Solar companies are required to have professional liability insurance in case they damage your property during installation or the Solar system damages your property (roof leaks, fire etc.)  
  7. Accreditations like MCS, HEIS, EPVS require Solar companies to keep detailed records of their business and installations and these records are subject to regular audits. This adds huge admin costs

HISTORY

While Solar panels have been around for over 50 years, they only became popular 10-12 years ago

The UK Solar Industry took off when Government subsidies called Feed In Tariff (FiT) scheme were launched on 1 April 2010. This paid 41.3p/unit for all the Solar energy generated. On top of this there was an “export Tariff” of 3.1p for 50% of the generated Solar electricity as the Government “deemed that half of the generation will be sent to the grid. Both these payments were Index Linked, Tax Free and guaranteed for 25 years. Since then the Industry has suffered a number of severe traumas when the FiT was cut and ended.

November 2012 Government announced halving the FiT within 30 days. This resulted in a rush of orders from panicked customers. Worst possible time – mid winter

December 31st 2012        – FiT was reduced to 21p/unit. Sales collapsed
January 2013                     – Solar Industry sued the Government as insufficient notice given.
February 2013                   – Government capitulated and extended the original rates till March 2013
April 1st 2015                     – FiT was halved to 10.5p
April 1st 2019                     – FiT was closed to new applications
March 2020/May 2022  – Covid19 shutdowns

On each occasion sales collapsed and the business gradually picked up. And on each occasion hundreds of Solar companies either went bust or got out and new ones entered the market. The last trauma was of course during the pandemic shutdowns in 2020/21. This one was severe and quite long as there were a lot of problems with supply of Solar panels and other equipment and prices also shot up. But then during 2022 things eased up and the Solar market began to grow. This encouraged more new companies to get into Solar especially as there was no legal requirement for MCS accreditation. Previously this had been a huge barrier for new companies. However if your Solar is installed by a company without MCS accreditation, you will not receive the SEG (Smart Export Guarantee) that pays you for every unit of Solar electricity that is sent back to the grid. This can be £200-300 per year.     

Above graphs are from Microgeneration Certification Sceme.

MORE INFO
Mis-Sold Solar Panel Claims – Your Rights Explained (claims-compass.co.uk)

REPORT

Please feel free to share your experiences of Solar companies

You can report your experience with Solar companies. Your data WILL NOT BE DISCLOSED TO THIRD PARTIES