NewsLet ABC15 Know

Actions

'They just promised, promised, promised'; AZ woman warns consumers after solar savings don't materialize

The sales pitch of an $11,000 rebate for a solar installation proved to be too good to be true
Community solar
Posted at 5:00 PM, Apr 18, 2024
and last updated 2024-04-19 09:18:09-04

PHOENIX — A knock on the door and a great sales pitch, that's how Let ABC15 Know viewer Cindy started her journey with solar.

"The mention of getting $11,000 back as a rebate," Cindy said was a major part in convincing her to sign a contract. She says the salesman referred to the money as a rebate. Cindy planned to use the money to pay down a chunk of the loan she'd taken out to finance going solar.

Cindy says installation went well, but she was in for a shock.

"It's not a rebate, it's a credit against your taxes that you owe the government," she explained.

Cindy says she lives below the poverty line and doesn't owe taxes - something she says she explained to the salesperson repeatedly. She says the salesperson assured her she would receive the expected $11,000. However, the solar tax credit is "non-refundable," in tax speak. That means, if the credit reduces a person's overall tax bill below zero, the IRS is not going to cut a check for the difference. So, since Cindy has no tax liability, she's not eligible to receive the credit.

After learning this, Cindy says she reached back out to the salesperson but got nowhere.

"They just promised, promised, promised and then put you off," she said.

Adrian Keller, Arizona Program Director for the nonprofit Solar United Neighbors, says consumers need to be wary of what are called "lead generators."

"Right now in Arizona, it's a little bit of a wild wild west, we get these ads, we get door to door salespeople who will say lots of different things that may or may not be true and that leaves consumers really confused," he said.

Keller warns that lead generators may be the first point of contact for people who reach out or are contacted regarding solar. Sometimes, they're collecting personal data and information to sell it to a solar installer. To get that information and data, a lead generator may make big promises up front.

"They are less incentivized to be completely honest upfront, because somebody else is going to be installing that system; and once they've sold your information, they're not necessarily dealing with you anymore," explained Keller.

If you are considering solar, Keller suggests using a company that performs all aspects in-house - that means sales, installation, financing. They have a reason to be truthful from the start.

Get multiple bids before choosing a company.

Make sure those bids have specifics. Pricing should be included, and not just for solar panels, but for inverters, electrical work, and any other installation details. Keller says consumer should also receive information about warranties - which ones you will and won't qualify for - as well as an energy savings estimation.

Check with your electric company. Yes, you may be moving to solar, but make sure you ask about any recurring fees for equipment usage or maintenance that you might encounter.

If a solar pitch is promising specific savings or credits, talk to an accountant or financial advisor before signing on the dotted line.

Ask for a primary point of contact and have their information listed in the bid.

You may not think about it, but consumers also need to check their roof before adding solar. While a brand new roof isn't necessary, make sure yours is in good condition and with 5-10 years of life left. If your roof isn't in good shape, you may have additional expenses with removing and re-installing your solar panels down the road when you need a new roof or a roof repair.

As for Cindy, she's frustrated with the financials and the disconnect between the sales pitch and results she received, but hasn't lost faith in the industry as a whole.

"Solar is not a bad program, it's the people who are careless with the truth that are making it a bad program and taking advantage of people," she explained.

It's a sentiment echoed by Keller. He's calling for "common sense" regulations in the industry.

"Put some reasonable requirements on what people can and cannot say, we want people to feel really good and confident about going solar," he explained.

As you should before working with any business, don't forget to check reviews of solar companies before signing anything. Longevity matters as well; make sure to check how long a company has been in business.

You can check company reviews online with the Better Business Bureau and check a company's contracting license with the Arizona Registrar of Contractors.

If you have questions about going solar, Solar United Neighbors has a free help desk you can reach online or by phone.