Abusive practices are common in solar projects, according to a new report by the Center for Responsible Lending, or CRL, a consumer advocacy group.
They include false representations about the system’s benefits and financing costs and terms, improper installation and connection of the system, failure to comply with consumer legal protections, and the use of contract clauses that block consumer redress for any of these acts,
These problems may sometimes result in systems that don’t produce enough savings to offset the costly monthly payments for the system.
The report outlining how policymakers and regulators can enact reforms to ensure responsible rooftop solar installation and financing is available for all homeowners.
With the federal government recently scaling back oversight and enforcement of consumer protections, the report urges states to take the lead in enforcing laws that protect consumers and create a fairer and more transparent market.
“Now more than ever, state action will play a critical role to restore trust and ensure the solar industry’s long-term success,” said Andrew Kushner, senior policy counsel at CRL and co-author of the report.
Policy recommendations included in the report are:
- Require states to conduct an “ability to repay” analysis for solar loans, cap hidden “dealer fees,” and ensure that any fees actually reduce interest rates. Some lenders inflate the cash price of solar systems by 25 percent or more, adding undisclosed costs to loans.
- Require accurate, good-faith estimates of energy production and savings, backed by enforceable guarantees for at least five years.
- Require clear, written information about how tax credits work and their limitations for low- and moderate-income households.
- Enforce existing consumer protection laws against fraudulent or high-pressure sales tactics, and ensure solar systems are installed by licensed professionals.
For more detailed state and federal policy recommendations, see the report.
