Consumer Action report shines light on solar panel problems

There are calls for a crackdown on the solar industry, with a report revealing some pushy sellers have signed people up to unaffordable repayments. Here’s how you can avoid being ripped off.

Pushy solar panel sellers have signed pensioners up to unaffordable repayment plans that leave them with barely enough money to eat.

Pushy solar panel sellers have signed pensioners up to unaffordable repayment plans that leave them with barely enough money to eat.

A Consumer Action Law Centre report says stricter state and national regulations are needed to protect customers from exploitation as the solar industry booms.

Problems include irresponsible finance offers, misleading and high-pressure doorknocker and telemarketing sales, mismanaged installations and grid connections, and faulty products.

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It also raises concerns about some companies deliberately going out of business to avoid compensating dudded consumers, leaving people out of pocket and with worthless warranties.

Regulatory reform of the solar industry is needed, the Consumer Action Law Centre says.

“There are a number of issues related to the sale, installation and operation of rooftop solar panels causing significant harm to individuals and households,” the Sunny Side Up: Strengthening the Consumer Protection Regime for Solar Panels in Victoria report warns.

Outlined cases include:

A 72-YEAR-OLD pensioner with no savings pressured to sign up for a $8695 system. He often had no money left for food after fortnightly repayments to a finance company.

A DISABILITY pensioner in her 70s who said she was unaware of the total $7000 cost and not told about cooling-off rights when she signed a contract. She had little funds for living expenses once direct debits started.

CUSTOMERS missing out on promised savings for selling excess power to the grid because necessary paperwork is not submitted.

A WHEELCHAIR-bound man surviving on workers’ compensation payments fighting for seven years to get leaks fixed after an installer drilled holes into his iron roof.

A SELF-EMPLOYED man who was awarded $7000 compensation for a faulty inverter replacement, but got no cash because the retailer had ceased trading.

A COUPLE relying on Centrelink payments unable to afford an electrician’s report to pursue legal action against a solar retailer refusing to cover a fault under warranty.

Consumer Action Law Centre CEO Gerard Brody. Picture: Stuart McEvoy.

Consumer Action CEO Gerard Brody noted the Victorian government’s recent “important step” to require solar retailers participating in its Solar Homes program to sign up to the Clean Energy Council code of conduct.

The report recommendations include a total ban on unsolicited sales; minimum 10-year statutory warranties for entire solar systems; a crackdown on unregulated credit providers; a compensation fund to cover consumers when businesses become insolvent; and expanding the energy ombudsman’s ability to handle solar disputes.

@KarenCollierHS