Hello there, my solar enthusiasts! Today, we are going to talk about an important issue that made headlines recently – allegations of indirect price inflation by multiple solar companies in Minnesota. They are accused of hiding inflated fees behind the allure of federal tax credits and low-interest rates.
The solar world is a fast-growing industry with an abundance of solar panels for your home and a myriad of solar companies offering you enticing deals. However, as exciting as it may be to invest in a solar array for your home, it’s crucial to understand the dynamics of how these solar deals work.
The Attorney General (AG) of Minnesota filed a legal action against a few solar finance companies— GoodLeap, Sunlight Financial, Solar Mosaic, and Dividend Solar Finance. They are alleged of inflating the cost of residential solar projects during financing and have been accused of selling overpriced residential solar projects.
Essentially, consumers were led to believe that the inflated price they were paying was only for the solar system. However, the complaint alleges that the companies had cunningly enveloped a hidden upfront fee into the stated price of each finance system, thus, the real cost was substantially higher. This fee was not mentioned in the sales proposals or the finance cost disclosures.
Now, you’re probably thinking, “Isn’t mentioning all costs and fees part of the deal while purchasing solar panels for your home?” These transactions should be transparent, and no hidden costs or fees should be involved. Yet, the allegations point out that these solar companies had prohibited Minnesota solar companies from identifying and explaining this fee in their marketing while offering alternative payment options.
The allure of very low interest rates, instant loan approval, zero cash down, and minimal paperwork requirements seems attractive upfront. However, in the long run, unsuspecting customers found themselves in a situation where the expected electricity savings were minimally impactful. This was because the base loan amounts were inflated, which, in turn, led to higher tax credits that needed to be applied to their bills.
With these allegations in light, it emphasizes the importance of scrutinizing your residential solar contract’s fine print before committing. Also, remember that the four companies in question provided their financial tools to local sales and installation companies. Therefore, it would be best to ensure that all financial calculations, fees, and costs are transparent and understood before choosing a solar company for your home installation.
Residential solar is a promising industry, and while these allegations bring to focus the importance of transparency, they should not discourage you from continuing to explore solar the vast options. Third-party ownership is projected to fill the gap created by these incidents by achieving a 41% market share by 2026.
Investing in a solar array for home is a fantastic decision for your wallet and the environment, but it’s crucial to understand every aspect of your deal. Let this serve as a reminder in your solar journey: transparency should be your best friend in any solar company you choose to partner with.
Stay solar savvy!
Original Articlehttps://pv-magazine-usa.com/2024/04/26/minnesota-sues-goodleap-sunlight-mosaic-and-dividend-over-dealer-fees/
