Consumers warned to do homework - Risk in rush on solar

Adelaide Advertiser
Tuesday 28/9/2010 Page: 33

AN "uneducated market" is being pushed towards a rushed decision on solar panel installations, with the potential risk of affecting the industry's image, an Adelaide installer says. Love Energy founder Richard Mintz said the proposed 60MW cap on solar installations, expected to be reached at the end of next year, was pushing consumers to make "quick, uninformed decisions". The state solar feed-in tariff scheme is likely to be closed to new entrants by the end of next year, if not earlier, under proposed legislation to increase the tariff to 54c and limit installed capacity. Commercial installations are also excluded from the scheme.

Setting limits on the scheme is making users rush into it without proper inquiries about the quality of systems or operator, with price being the main decision factor, Mr Mintz said. "The solar industry is embryonic. No one has yet seen the impact of dodgy installations, but some of the products out there are shocking", he said. The South Australian market is segmented into high to mid range-priced installations and cheaper, low-end solutions by some of the smaller solar installers. "We want to position ourselves as the educators of the market and we have started by partnering with world class panel suppliers, Germany's Conergy and US firm SunPower", Mr Mintz said.

The company is working towards its first major project - a $5 million 800kW multisite rooftop installation in Adelaide. "I am willing to punt my business as the educated party, but the consumer has much to lose and the faith in the industry is going to go", Mr Mintz said. Solar installers have been advertising aggressively in recent months, urging consumers to act quickly to take advantage of the tariff changes.

Overall, the national ad blitz by solar installers has caught the eye of market regulator the Australian Competition and Consumer Commission, which last month forced two solar panel retailers to amend their marketing campaigns, found to be "potentially misleading and deceptive". Clean Energy Council chief executive Matthew Warren said most consumers needed to do their homework and refer to the consumer guide on the council's website. "The buyers have gone past those genuinely interested in solar to those mums and dads looking to immunise themselves from electricity prices, and are driven by price", Mr Warren said. "You get what you pay for, so they should understand as much of the system and shop around".