Why Do So Many Solar Companies Fail?
Over the past decade, the solar industry has boomed. In 2018, the number of Australian households with solar PV installations reached 2 million. That’s an average of six solar panels installed per minute!
The solar industry is increasing, yet many solar companies have left. ABC News reports that more than 700 solar companies have gone out of business since 2011, leaving around 650,000 Australians without warranties if their systems are faulty. These are called ‘orphaned’ systems because no company can take responsibility.
So, how is it possible that so many solar companies have shut down in a booming industry?
Why Solar Companies Go Out Of Business
There are many reasons a solar company might shut down. One of the biggest reasons is how they handle claims against their products. Low prices conceal what is happening under the surface – subpar business practices and poor management.
It could be said there are two types of companies. The first are those who face adversity, doing everything they can to rectify product complaints. The second are those who, when facing such claims about their products, cannot fix the problem. The second company type is likelier to go out of business because they continuously overlook customer complaints.
Additionally, if the company uses low-quality, cheap solar products, the chance of going out of business further increases. This is because more affordable systems fail faster, leaving the company with a magnitude of failed systems at once. This can place stress on the company’s resources, causing a business to shut down due to increased pressure and the inability to deal with the problem correctly.
At this point, it’s easier for a business to declare bankruptcy instead of replacing many failed solar systems. When this happens, existing customers are left with few options and are forced to write off the failed system, starting fresh with a new company.
This situation is all too common for solar companies and many companies operating in different industries. Thankfully, it’s possible to prevent this by choosing a stable solar company and avoiding cheap products at all costs.
What Consumers Need To Know
If you are looking to install solar PV or Batteries, it is essential to select a reputable solar company with years of experience in the industry.
You can do this by researching to help you separate the good from the bad. Ensure the office address is a legitimate location, look at online reviews to see how they handle complaints and confirm they have been in business for over five years.
The most crucial decision as a consumer is what solar company you trust to install your solar solution.
We are proud that Westsun Energy has over ten years of experience. Our customers can rest assured knowing their solar needs are in the hands of experienced solar professionals. As experts in the solar industry, we have a range of products suited for varying needs and requirements. If you want to learn more about our current offers, call us on 08 9303 9810.
Why Westsun Energy Believe Companies Come And Go
→ Solar Panel Installation is the weakest link regarding most solar installation issues. Rushed, underpaid contractors and several bad installation practices cause systems to fail and sometimes catch on fire.
→ WATER! This is not a solar systems friend. As we all know, water can get into anything. If the Solar System installed is not entirely waterproof or installed correctly, cheap installs over time will begin to break down, and water works its way into DC Isolators and roof spaces, causing severe damage. This can happen over a long period resulting in costly repair bills, often after the company has gone bankrupt, leaving you to fix their mistakes and a system that no longer works.
→ A cheap Solar System is usually made more affordable by reducing the costs of the installation process. This not only allows for corners to be cut but inadequate funding for each job to be completed on time and correctly, leaving the customer with a system that is a ticking time bomb to fail.
→ The most common reason for Solar Panel failure is earth faults. This is caused by cheap panels and backing sheets being broken down over time due to temperatures and weather changes. This causes electricity to leak through discussions on the railing structure through the earthing system resulting in a failure and system shut-off. This can become costly and quite difficult to find. In most cases, all panels must be removed, disposed of, and replaced due to the high labour cost.
→ Roof Leaks – If Solar Systems on tile roofs are not appropriately installed, minor and major roof leaks can occur. Companies willing to repair these leaks ASAP and take their time to ensure the system is installed correctly will outlast those who don’t. Many companies put their heads in the sand when roof leaks are brought to their attention and often dig a hole they can not get out of without constant return visits and insurance bills they cannot keep up with. Many companies also blame the installer they are subcontracted to or are not motivated to return to the site to resolve the issue. This results in a lag time to repair systems, resulting in significant home repairs that these solar companies refuse to pay, leaving the customer in an awkward position going back and forth with sub-contractors and the company they purchased their solar from.
→ Equipment – Buying equipment from a company that has been around long enough to understand warranties and failure rates is essential. Systems that fail constantly and require numerous visits generally hint that the company is not being run properly. Suppose a company has been around for more than ten years. That is a pretty good indicator that they understand solar products and warranties instead. The system that you purchase should last you between 10-25 years. When purchasing your solar, ensure you do your research on the company you decide to go with; it is essential that they can guarantee they have a backend that will follow through with warranties and services down the track.
→ Our philosophy: ‘buy once, buy right, or buy cheap, buy twice’.
Click on the link below to view the list of bankrupt Solar Companies
List of Bankrupt Solar Companies
