The Problem With Phoenix Solar Companies In Australia

Phoenix Solar Companies
In the previous ten years, over 800 solar companies have gone bankrupt and closed their doors.
 
Wow that’s a lot.
 
Leaving an estimated 700,000 households with orphaned solar systems, as the industry calls them. That are non-functional and have useless warranties.
 
As a consequence, these bereft homeowners can only replace their present solar system with a whole new one, which will cost them significantly more money. 
 
It’s not worth the risk.
 
Many of these “phoenix companies” disappear, only to re-emerge under a new company name and continue the cycle all over again. Repeat as they sell bad-quality systems at unreasonably low prices to unsuspecting clients. 
 
When a solar company goes bankrupt, all of their past obligations are washed away. This is why the Clean Energy Council and Australian regulatory organisations have stepped in to prevent “phoenix companies” from arising. 
 
They have, however, had a lot of difficulty keeping them at bay
 
Why Has This Happened ? 
 

There are 6,000 solar companies registered with the Clean Energy Council to install solar, making the solar industry one of Australia’s most competitive markets. As a result, market margins have been driven to become razor-thin.

Unfortunately, some installers have been obliged to sacrifice product and service quality in order to provide ‘crazy pricing’ and support it with large marketing budgets in order to produce high volumes. These initiatives have lowered prices, but they’ve not improved the situation for most customers.

What Can You Do ? 
 
The best approach to safeguard yourself is to conduct your own research on each organisation. 
 
While there is no easy way to identify a Phoenix business, there are some basic actions you can take to ensure you are working with a legitimate company that will not cost you money in the future.

1 - Electrical License Number

Every solar firm is required by law to display their electrical licence number on their website or advertising platform.

Electrical Safety Qld allows you to do a reasonably quick and straightforward search for their licence number.

This will inform you if the firm has any disciplinary or enforcement records, which may indicate that they have had troubles and complaints filed against them in the past.

2 - ABN History

It’s easy to find out how long a firm has been in business by doing a simple ABN lookup. Due to the short lifespan of most Phoenix solar firms, companies that have been in business for a longer length of time are typically considered to be a better long-term investment option.

3 - Reviews

Trusted review sources such as Google, Trust Pilot, Facebook and Your Solar Quotes are all good viable 3rd party sources in which to gauge a companies trustworthiness. 

Alternately going to solar forums or crap solar and asking specifically about the solar installer you are considering and seeing what kind of feedback the public has on that company is a good way to get an understanding of the solar companies customer service, quality etc. 

Third-party review sites like Google, Trust Pilot, Facebook, and Your Solar Quotes are excellent tools for determining whether or not a company can be trusted.

Solar forums and crap solar are fantastic places to ask specific questions about the solar installer you are considering and see what the public has to say about that company’s customer service, quality, and other aspects.

4 - Where the Company is located

A solar company’s location in your state or area does not necessarily imply that the company is actually operating out of that location.

Because they want to claim that they are “locals” or have some sort of “presence” in the area, most these businesses operate from an office building. There is a good chance that the stock is actually arriving from a different location or state, and the work is being outsourced to a different company.

Quick Google searches can disclose if the firm is located in a warehouse or an office building within an apartment. Instead of outsourcing the solar installation to a contactor who isn’t bound to the same standards of accountability, solar companies with a warehouse facility typically store stock and employ their own trusted installers.

5 - Offering "Free" Solar Panels

Companies who misrepresent the value of solar rebate incentives in order to trick clients into believing that solar power is free should be avoided.

Solar cold calling is governed by ACCC laws and regulations, and the use of rebates in advertising has been found deceptive in some instances. 

Even with the Solar incentives available no solar system is Free. 

6 - Not Consulting Your Energy Needs

Sales strategies that focus on high volume don’t provide the installer much time to analyse or inspect the property. You can be in for a rude surprise if your solar evaluation does not include a personal visit or a photo provided to the installer to check your switchboard for compliance.

Add-on charges, such as the installation of a new switchboard or the repair of any pre-existing electrical difficulties, can be expensive.

Your solar panel installer should be able to accurately estimate the size of your system to meet your energy demands. All properties are unique in their power consumption, roof space capacity and roof angle, and future electricity consumption. It’s critical to take into account all of these variables to get the best financial outcome.

7 - No Aftersales & Warranty Department

In the event that a solar company goes out of business, it will be easier for you to get your warranties if the manufacturer has an established brand presence in Australia.

Despite the fact that the manufacturers have a strong Australian brand presence, claiming warranties can be tricky for the average home owner.

That is why quality solar installers will offer ongoing after service support of their warranty and after sales-departments, to be their for customers throughout the lifetime of the solar system. 

Facebook
Twitter
LinkedIn

Articles You Might Like..

Good Photo chris

About Solar Union

Solar Union is an Australian-owned and run company based in Brisbane, with over 30 years of industry knowledge and experience. Our emphasis is on quality, and we strive to deliver the greatest expertise and advice for your solar energy needs.

Articles You Might Like

Ready for a Solar Audit?

Get a FREE Quote Now

Before You Go....

What if you Could Save $1600 A Year?

Solar Installation Brisbane, QLD