Mis-sold solar panels could net compensation for homeowners
As a nation we are more environmentally aware than ever, which has seen a drive towards cleaner, greener living.
Many people opted for solar panels in their homes to generate the energy they needed for their own home, and to sell back excess power to the national grid. But they are not for everyone, and some people have been mis-sold their panels and effectively lost money.
What’s the problem?
Solar panels cost thousands of pounds to install, and can help reduce energy bills and your carbon footprint, but for some the promises made by the firms who installed them cannot be achieved. Some firms stated that your own energy would effectively be free, with a chance to earn more money back by selling excess energy back to the national grid via a Feed-In-Tariff.
The reality for some home-owners is that they never earn back anything like as much as the cost of installation, leaving them out of pocket.
Paul Drabble Partner at TRUE Solicitors, which has extensive experience claiming back compensation for clients who have been mis-sold solar panels, said: “The financial return depends on factors such as the customer’s budget, energy usage and the size/location of their property. Customers rely on the advice they receive at the point of sale.
“Sadly, we have heard from many consumers who feel they were misled when they purchased their solar panels using a finance agreement, or made a part payment on a credit card. The solar panels were originally sold as an investment, with customers being advised that the panels would pay for themselves because the financial benefits received from a Feed-In-Tariff (FIT) and energy bill reduction would cover the monthly finance repayments. In essence, the solar panels were sold as being ‘free’, as the financial returns were supposed to outweigh the costs.”
TRUE Solicitors has decades of experience in seeking maximum compensation in the quickest time for its clients.
Paul Drabble added: “We have a wealth of experience in pursuing claims against finance providers who provided the funds for people to purchase these solar panel systems. TRUE Solicitors knows that many clients subsequently find that their finance repayments significantly outweigh any benefits they are receiving. With hundreds of thousands of people purchasing solar panels in the last few years, and with finance terms lasting up to 15 years, mis-sold solar panels are expected to become one of the biggest financial mis-selling scandals in recent times.”
Will I be entitled to a refund?
You may be eligible for a full or partial refund if:
You purchased or paid a deposit using finance or a credit card
The panels were bought within the last six years
You believe you were misled about the performance of the solar panels and a financial benefit that is not being achieved
There is a significant difference each month between the financial benefits (via Feed-In-Tariffs and a reduction in your own bills) and in what your finance repayments are, and you feel these were not properly explained at the time of sale.
Under Section 75 of the Consumer Credit Act, the credit or finance provider is jointly liable if you have a complaint against the company you bought from, even if they have ceased trading.
Case study
Mr. D received over £9,000 after being mis-sold solar panels. He purchased a solar panel system after being cold-called and being advised that the system would be self-funding, and would pay for itself. He was advised that the system would not have an actual net cost, as the monthly finance payments would be met and exceeded by the savings he would make from quarterly Feed in Tariff (FIT) payments and electricity savings on his bills. The result would be a cost neutral system that would actually be “free”.
He signed a 10-year finance agreement with a total liability of £12,800, paying monthly instalments of £107.00 on the basis that he would make back at least this amount per month from the FIT and bill savings. Upon analysing the client's bills and FIT payments, it became evident that he was saving around £35.00 per month, leaving a deficit of over £70 a month.
Given this shortfall, he was left with no option but to redeem the finance agreement and take out a further personal loan, given the extortionate finance rate he was being charged. TRUE was successful in negotiating a settlement with the finance provider for over £9,000, that being the total amount he paid for the panels, and in addition the finance provider agreed to pay for the solar panels to be removed and to repair any consequential damage to the roof.
Where can you get help from?
If you have concerns that you may have been mis-sold your solar panels or a solar “battery-pack”, you can speak to the TRUE Solicitors team today. For a free, no-obligation initial assessment, contact them on 08000 149 565.
Alternatively, you can email [email protected], or submit an enquiry via the form on the website.
The TRUE “No Win, No Fee” service means that there is no financial risk to you.