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Cheap Solar? Don’t Fall For The Spin!

If you’ve started researching solar and requesting quotes, you may have realised by now that shopping for solar can be a real headache. To help you navigate the minefield, here are 4 x Red Flags to watch out for…

1/ iNTEREST-FREE FINANCE

How do Interest Free Finance providers make money? By taking a cut of the sale. Usually around 25% of the sale price, charged as a ‘Merchant Fee’ to the solar company. This is a significant cost that a solar company cannot absorb.

The truth is, solar companies who offer “Interest Free” finance, simply inflate their prices by ~25% to cover the undisclosed Merchant Fee. And a discounted “Cash Price” can be offered to those not wanting finance.

Warning: Solar companies who inflate their prices for bogus Interest Free finance are usually offering the cheapest low-quality panels & inverters. This allows them to inflate the price while still appearing competitively priced.

For example, a super cheap $3,500 system can be inflated to $4,500. To a customer unfamiliar with solar brands, this still seems competitively priced against other quotes using better quality brands.

Our Advice: An over-priced, low-quality system is hardly a great deal. If finance is required, we recommend sourcing a low-interest Green Loan from Parker Lane. Alternatively, even lower 3.99% Green Loans are currently available to eligible Commonwealth Bank Home Loan customers.

2/ High pressure sales

Some high-pressure sales tactics include limited-time discounts, pressuring to sign-up on the day, and badgering phone calls.

A Limited Time Special is just a sales tactic used to create a sense of urgency and a fear of missing out (FOMO). High-pressure salespeople want you to sign-up ASAP because they don’t want you to do your research. What are they hiding? Usually their quote is overpriced and/or low-quality. Or their company reputation is trash.

Our Advice: Solar is a significant one-time investment. Take your time, do your research, and don’t be rushed into a decision by dodgy high-pressure sales & marketing tactics. If a solar company is willing to offer you a discount today, but not the same discount next week, then take your business elsewhere

3/ free panels

There’s a sneaky reason why some solar companies include extra “Free Panels” when quoting a system. It’s not just a sales & marketing tactic.

Sometimes inexperienced salespeople provide customers with unrealistic solar panel layouts. On the day of install, if roof space is limited, the solar installer may not be able to fit the number of panels you ordered.

If you purchased an 18-panel system, but the solar installer could only fit 16 panels, you would expect the price payable to be reduced, right?

Sorry, not if those 2 panels were quoted as “Free” to begin with.

Our Advice: Simple, avoid these companies offering “Free Panels”. It’s a red-flag that you’re dealing with a dodgy solar company.

4/ PRICE BEAT POLICY

If you were wanting to buy a new electric lawnmower, had done your research, and decided on a particular make & model, you might go straight to Bunnings to buy it. After all, they have a “Best Price Guaranteed” policy.

However, shopping for solar is much more of a minefield. You’re not just buying 1 product in a box. A solar PV system consists of solar panels, inverter, battery, and many other important Balance of System (BoS) components including:

  • Mounting system
  • Cabling
  • AC and DC isolators
  • Circuit-breakers
  • Connectors

It also requires a days’ worth of electrical and roof work, ideally performed by a team of competent installers following best practices.

Unfortunately though, many solar companies are competing in a ‘Race to the Bottom’ by cutting costs on the cheapest panels, inverters, BoS components, and low-paid installers incentivised to cut corners to get the job done quickly. As a result, nearly 25% of solar installations inspected are rated Sub-Standard or Unsafe

Our Advice: true quality-focused solar company can never make claims such as “Best Price Guaranteed” or “We’ll Beat Any Price”. It’s just not possible without cutting corners.

 

For an obligation-free quote for a quality Solar & Battery system, contact Positive Energy today. Rest assured, our approach is honest, informative, no-pressure.

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