Is that solar energy system company willing to say ‘No’?

solar company willing to say no

This roof has room for a sufficient number of properly oriented solar panels. Some homes don’t and an installer has to be willing to say ‘No!’

When you go into an auto dealership, you’ll never hear a car salesman say ‘NO!’ when you pick out the car you want to buy. If you want one of their cars, and you have the financial wherewithal to make the purchase, they’ll get the paperwork ready in a hurry before you change your mind. But purchasing a solar energy system for your home is not the same thing. There are times when the installer should say, ‘NO!’

Why do you want an installer who will tell you ‘No!’ The answer is simple; you want to work with a solar energy system company that is focused on providing its clients with properly installed and cost-effective equipment.

There are times when a home just isn’t right for a solar energy system, at least, not on the roof. And there are reasons this may be the case, including:

  • Orientation of the Home: A home can use a solar energy system on its roof if that home has a roof with usable space facing from 90-degrees (due East) to 270-degrees (due West). Here in Northern Illinois and Southern Wisconsin, as with the rest of the United States, we are in the Northern Hemisphere. Even at the height of summer, the sun is still oriented more to the South. Putting solar panels on a roof facing North is a waste of time and money.
  • Workable space on the Roof: If there are ridges, gables and/or dormers on a roof that break up free area where solar panels can be installed, this can represent a problem for installing a solar energy system. Additionally, different ordinances in different areas call for specific setbacks. For instance, you may be required to allow from three feet to 18 inches from the edge of the roof or peak to the solar panels. This is to allow room for firemen to walk if there is a fire. The setback reduces the workable space available for solar panels. Generally, you want a flat, workable area for at least 10 solar panels.
  • Condition of the Roof: It doesn’t make sense to install solar panels on a roof that will require replacement within a few years. The solar panels have to come up to replace the shingles. A responsible solar energy system installer will definitely say, ‘No!’ if the roofing is too old.
  • Trees and Obstructions: If there are trees or other obstructions that block the rays of the sun, they also block the effectiveness of the solar energy system. A system needs to be reasonably efficient for it to be practical.

Of course, if these factors require an installer to say ‘No!’ when you want to put solar panels on your roof, it’s possible they could mount the panels on the ground, if there is an unobstructed area to do so. But, otherwise, a reasonable solar energy system installer will say ‘No!’

An installer responsible enough to say ‘No!’ when the conditions merit such an answer is also a solar energy system installer who will do a quality job.

 

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Deceitful solar installers taking advantage of consumers and government incentives

unethical solar energy companies
The solar panels spread haphazardly across the north side of this roof is an example of the unethical approach of some solar energy companies in McHenry and Lake Counties.

When done right – sized, located and installed properly – a solar energy system is a great way to reduce your reliance on utility companies and, eventually, to achieve energy independence at your home or office. State and federal governments know this and provide incentives to further inspire home and business owners to ‘go solar.’ There are companies and individuals who are abusing the incentives and the customers they’re supposed to serve.

These calculating companies have a focus on selling Power Purchase Agreements (PPA) and or leasing solar PV systems for the sole purpose of profaditing on the government tax credits and state incentives. Paul LaBarbera, the owner of Magitek Energy Solutions, Inc. and one of the leading authorities on solar energy in the Midwest, stated that responsible solar companies focus on ensuring that a home or business owner’s system is optimized to provide the most energy and the greatest return on the investment in the system.

One of the problems is that these deceiving companies are using up incentives offered by state and federal governments to install systems that are not very efficient. In fact, some of their installations constitute outright fraud. This is particularly troublesome when they convince home or business owners to lease solar energy systems or sign a PPA (Power Purchase Agreement). The solar energy company reaps the benefits of all the incentives because they actually own the system.

“These companies are chewing up incentives with poorly conceived system designs,” said LaBarbera. “You’ll see systems they’ve installed that are facing north. North facing systems will produce as much as 50-percent lower output per panel. They’re also installing systems where trees or other structures shade the solar panels and significantly degrade their efficiency and financial practicality. The state and federal governments are paying for these poorly designed systems and the companies are taking advantage of the consumers, too.”

The government provides a certain amount of funds for incentive programs. When the first allocation level of funds is used up, another level is available, but at a lower percentage of incentive to the consumer. Companies abusing the system will slap solar panels randomly on a roof with a focus on collecting the highest amount of incentives rather than designing the system to have the highest efficiency.

“They’re not only taking advantage of the government and the consumer, they’re also taking advantage of other people who would use those incentives properly,” said LaBarbera.

But let’s say you’re still considering a PPA or lease. Why wouldn’t you – after all they’re free, right? Wrong! With strings attached, ‘free’ solar panels are hardly free and hardly a good idea. It sounds so easy. Why shouldn’t you allow that company to come over and install its solar panels on your roof?

There’s an old saying that “there is no free lunch.” Homeowners would do well to keep this in mind when considering the offers of companies that offer ‘free solar panels for their roofs.’

The promise is that you can lease solar panels or purchase the power generated from the solar panels and save the cost of installing solar panels. But a Power Purchase Agreement (PPA) or leasing solar panels comes with strings attached that homeowners would do well to consider. For instance, companies offering ‘free’ solar panels are quick to point out the state and federal tax incentives and grants available for installing solar panels on your roof. But, if you’re leasing the panels or sign a PPA, who really receives the benefits of the incentives and grants?

The answer is that the companies offering ‘free’ solar panels reap the benefits. It costs that much less for them to put the solar panels on your roof as they become the middlemen in your home’s electrical grid.

If you purchase solar panels yourself, you receive the benefits of tax incentives and grants. They reduce your investment and shorten the amount of time it takes before your savings have paid for your solar energy system. Once you’ve reached that point in the equation, the electricity produced by your solar panels is yours. You don’t owe anyone for it – not the utility and not the middleman who installed so-called ‘free’ solar panels on your roof. But there are other strings.

With a PPA or leased solar panels on your roof, you’re dealing with someone else owning that equipment. It’s as though they’re the landlord with a contract, that covers everything, from the roof down. Keeping in mind that a typical contract is 20 years, it begs the question: what happens when you decide to sell the house and move?

What happens is that you have a landlord who needs to be appeased. That means you have to purchase the solar energy system yourself or convince the new homeowner to: A. purchase the solar energy system from the landlord or, B. sign up for the remainder of the contract. This makes the presence of solar panels on your roof a potential sticking point in negotiations to sell your home.

On the other hand, if you own the solar panels on your roof, your solar energy system increases the value and appeal of your home. Even though they’re paid for, you’re still receiving money back from your investment.

And what about the cost of the lease or PPA? If electrical costs go up, your payments will go up. You may find yourself paying more for the electricity overtime than what you started paying. But if you own the solar panels, you don’t have to pay the increased cost of the utility’s electricity you’re not using.

And what about the quality of the installation of the solar panels. Based on the agreement, these ‘free’ solar panel companies have demonstrated a less than optimal approach to installing solar panels on their tenant’s roofs.

We live in the Northern hemisphere. Where solar panels are concerned, this means that the Southern exposure of the roof is the most efficient placement for solar panels. Eastern and Western exposures can have some value but the Northern exposure is of such low value that it’s not reasonable to place solar panels on that portion of a roof. And yet, the ‘free’ solar panel companies are doing just that. They even place solar panels on roofs where trees and other obstructions will block the sunlight thereby reducing the value of those solar panels to nearly zero.

Many homeowners who purchase solar panels will finance the installation. The payments are generally less than or equal to the leased payments for energy from someone else’s solar panels on their roofs. The financed payments will end. Unless you remember to cancel at the end of your contract, the ‘free’ solar panel payments will go on indefinitely.

Solar energy is a great alternative, but watch out for solar energy scams

solar energy scams
Solar energy is a great idea but you do have to watch out for scam artists.

A Website dedicated to exposing scams writes that solar scams are among ‘the biggest scams around’ this year. CBS News did a story July 30, 2018, that includes a section about solar energy scams. And they’re right. They are scam artists working the solar energy front to separate honest consumers from their money every day. In spite of the scam artists, solar energy is a great way to save money, cut the cord with energy companies and do something to protect and preserve the environment.

Unfortunately, when there is a good idea, and that idea is popular, people who want to break the rules and cheat their way to your hard-earned dollars come out of the woodwork. Those scammers see opportunity in the solar-energy market.

Some people are so eager to rush in and do something for the environment, while reaping the benefits of solar energy, that they aren’t sufficiently cautious with their money.

With solar energy, you can generate your own energy and reduce or eliminate the utility bills that show up, like clockwork, in your mailbox each month. And, there are government incentives and tax breaks that encourage consumers to take the plunge and go solar. But, that’s one way that the scam artists work on the good intentions of consumers.

Advertisements, often seen on social networks, will over-emphasize the incentives and tax breaks available to homeowners who have solar panels installed on their roofs. And when they come out to install the solar panels and hook up the solar energy system, with their focus on scamming consumers, the quality of their workmanship is often sadly lacking.

Protect yourself from scammers when shopping for solar energy products and installation

Like any purchase, the more you educate yourself, the better prepared you are to make a wise purchase and the less susceptible you are to scam artists. This is all the more important when making a major purchase, such as installing solar panels on your home.

There are strong emotional motivations for ‘going solar.’ But you don’t want your emotions to dominate your solar energy purchase. You want to take a good look at the company you hire to install your solar panels and connect your solar energy system. Are they an established company in your area? Do they have solid references – people you can talk to about their experiences with the solar energy contractor?

You want someone who can give you the story straight and without hype – someone who knows solar energy intricately. The right contactor will share the pros and the cons and will tell you up front what you can actually expect when you convert to solar energy.

A legitimate solar energy contractor knows that the benefits are great enough that solar energy will generally sell itself. The contractor doesn’t have to dazzle prospective buyers with nonsense. If solar energy isn’t the right fit for someone, it’s better that they find out and wait until it is right. There are more than enough people who will truly benefit from ‘going solar’ that truth is always the best approach.