7 Red Flags in a Solar Sales Pitch: How to Buy With Confidence

Photo voltaic panel gross sales protecting setting data. Meaning extra and extra persons are shopping for an unfamiliar product from an unfamiliar business. Residential photo voltaic is anticipated to proceed to develop at a record-setting tempo, too. The federal tax credit score just lately elevated from 26% to 30% and some state and native incentives are altering. All which means it is perhaps a superb time to purchase photo voltaic panels. Many photo voltaic panel warranties final 25 years and it can save you as a lot as you paid in lower than 10.

Whereas it is an amazing alternative to save cash and generate cleaner power, it may well expose photo voltaic customers to lower than trustworthy gross sales techniques, like these just lately uncovered by a Detroit information group. They discovered that Pink Photo voltaic, then known as PowerHome Photo voltaic, was making guarantees their photo voltaic panels could not ship. They offered costly photo voltaic panels that generated far much less power than promised.

Although there isn’t any cause to imagine unethical gross sales techniques are widespread (buyer satisfaction knowledge is not extensively out there), they do happen. The excellent news is that a little bit of training can go a good distance to getting the perfect photo voltaic panels to your scenario.

Learn extra: Finest Photo voltaic Firms of 2022

Advertiser Disclosure: CNET’s company accomplice, SaveOnEnergy, might help you discover the fitting power match to your residence. The SaveOnEnergy market helps you search, examine, join and save on the fitting power match to your residence — all totally free. Should you’re concerned with photo voltaic, reply just a few inquiries to get an actual worth quote from our photo voltaic advisors. 

What to know beforehand

There’s fierce competitors within the booming residential photo voltaic business. Firms make use of quite a lot of gross sales methods from in-house gross sales groups or third-party corporations. Tesla’s photo voltaic arm depends solely on on-line inquiries. Whereas there are business pointers for shopper safety, techniques fluctuate from firm to firm and, because the report from Detroit confirmed, can verge on dishonesty. Stepping into with a powerful understanding of some key photo voltaic subjects might help you notice when a salesman is flouting these pointers.

Salespeople are more likely to tout the federal photo voltaic tax credit score. Whenever you set up photo voltaic panels (and sure different associated expertise) you obtain a portion of the fee again in your taxes. In 2022, the portion you get again is 30% and can keep there via 2031 as specified by the Inflation Discount Act.

The tax credit score shouldn’t be a verify the federal government will ship you or a rebate. As a substitute, it is a credit score you’ll be able to depend towards the taxes you have to pay every year. With a purpose to take full benefit, you may must pay federal revenue tax and pay sufficient of it to match 30% of your system’s value.

If a salesman says your electrical energy invoice will disappear after putting in photo voltaic and that you could kick your utility to the curb, that is also an exaggeration. Your invoice will fluctuate relying in your web metering settlement along with your utility, your electrical energy utilization and the bottom fee utility prospects pay to maintain up grid infrastructure. Photo voltaic panels put in and working appropriately will cut back the electrical energy you employ and might prevent a bunch of cash, however the impact in your invoice will fluctuate.

Be certain you perceive how your utility compensates you for the electrical energy you produce earlier than going photo voltaic. These charges usually are not essentially set in stone. In California, regulators are attempting to alter web metering within the state, although proposals thus far have included provisions to maintain established prospects on their beforehand agreed to web metering charges. 

Should you see adverts that declare you’ll be able to put photo voltaic panels on your home totally free, be sure to perceive what “free” means. Seemingly, it means the product marketed is probably going both an influence buy settlement or lease. Whereas this implies you do not pay a big upfront value for the panels, you’ll pay month-to-month to the corporate that owns them. These are legit companies and a part of the rationale residential photo voltaic has exploded within the final decade. You are more likely to save extra money total with a purchase order than a lease or PPA. Nonetheless, the low upfront value of those two choices might make photo voltaic extra out there and nonetheless prevent cash in the long term, even when the photo voltaic electrical energy is not precisely free.

With leases and PPAs, you get monetary savings if its value does not rise sooner than the price of electrical energy out of your utility. You’ll be able to verify on-line how a lot your electrical energy has risen in latest historical past.

Siting photo voltaic panels in your roof is one other potential situation. Within the northern hemisphere, panels produce probably the most electrical energy going through south, although east- and west-facing panels work too. Panels going through west is perhaps helpful in areas with time-of-use charges, the place afternoon and night photo voltaic manufacturing can offset extra pricey electrical energy. 

In case your roof is shaded, be sure that an installer has a plan for addressing that. For photo voltaic to work nicely, you might want to chop again timber or set up panels someplace aside from your roof. Your roof needs to be in fine condition, too. Taking panels off to repair the roof possible carries extra prices. It is vital to deal with these points earlier than a contract is signed and panels are put in in your roof.

For all of those points, any installer ought to offer you clear solutions. An installer pushing you to signal earlier than you’ve got learn a contract or had all of your questions answered are crimson flags. Should you do signal one thing you later remorse, by legislation, you’ve gotten three days to cancel most door-to-door gross sales, in line with the Federal Commerce Fee.

Attainable crimson flags 

Here is a fast checklist of extra crimson flags and claims from Photo voltaic United Neighbors and the Division of Power that ought to immediate you to do a little analysis.

• “The federal photo voltaic tax credit score goes away quickly.” The tax credit score does cut back in 2023 and is slated to go away in 2024. There are some deadlines right here, however as of the time this story publishes, nothing that does not enable you a second to assume.
• “There is a particular program ending quickly.” Some utilities are transferring away from web metering and authorities packages do finish. Ensure you get the specifics and perceive no matter program is being mentioned.
• “You solely have one alternative of kit.” Most photo voltaic installers have most popular suppliers for tools, however can accommodate preferences from prospects.
• “Your utility goes to boost electrical energy costs XX% every year.” Electrical energy charges do go up (and it is significantly unsure now), however you could find historic electrical energy prices to your space and choose whether or not or not an organization’s estimate passes the scent check.
• “It can save you as much as 70% in your electrical energy invoice.” Seventy p.c sounds nice, however that “as much as” could possibly be doing lots of work. Do most individuals save 70% or does everybody save far much less? You should definitely ask.
• “Put photo voltaic in your roof totally free!” This virtually definitely doesn’t suggest free however slightly, no cash down. You may nonetheless have a month-to-month cost after that.
• “You’ll be able to say your house is powered by inexperienced power.” That is solely legally true when you get to carry on to the photo voltaic renewable power certificates. In a PPA, you would possibly signal these over to the photo voltaic supplier, who then will get to assert the environmental advantages.

Sources for getting a good deal

There are many organizations aiming to assist individuals go photo voltaic with the absolute best expertise, together with business teams and governments.

The Division of Power’s information to going photo voltaic has a protracted checklist of issues to think about earlier than selecting an installer. Many states run shopper safety workplaces with state particular recommendation, generally particularly for photo voltaic.

There are nationwide teams devoted to serving to individuals and communities undertake photo voltaic.

Soliciting quotes via a photo voltaic market can guarantee installers know they’re competing for your enterprise and allow you to overview your choices exterior of the strain of an in-person assembly. It is all the time a good suggestion to get quotes from a number of corporations.

The Higher Enterprise Bureau offers grades to corporations primarily based on their responsiveness to complaints and honesty. (Firms pay a charge to get a grade.) Checking an organization through the Higher Enterprise Bureau and speaking with neighbors or buddies who’ve expertise with them is a good suggestion if doable. 

You’ll find licensed installers by checking with the North American Board of Licensed Power Practitioners.

As a result of many individuals have not had an expertise with photo voltaic power, deciding on an installer can really feel like a frightening job. Nevertheless it’s doable to go photo voltaic and begin saving cash in your power prices. There have been 1 million photo voltaic installations (not simply residential ones) from 2016-2019. Should you plan on including to that quantity, with a bit of labor you may make certain it is a constructive expertise.