10 Reasons Why Cheap Solar Can Be a Bad Investment

MLEC Solar
5 min readJun 14, 2021

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With the massive surge of solar companies and installations Australia wide over the last few years, in particular, heaps of unreputable solar outfits touting cheap systems have popped up — causing an influx of dodgy solar panel installs across the country.

In Australia, one in five households has a solar installation, with the Australian National Audit Office (ANAO) finding that only 1.2 per cent of solar systems had been inspected by the Clean Energy Regulator (CER) with these inspections finding that one in six installs were ‘substandard’ and one in thirty ‘unsafe’.

Some fairly troubling stats, to be sure, yet some pretty helpful food for thought when carefully considering which solar providers you’ll end up going with.

Below are some helpful ways to keep your eye out for bad solar installers and cheap solar products.

10. Cheap Panels Can Be Damaged by the Weather

It’s a no brainer that your solar panels are going to cop it up there on your roof — battered by the harsh weather conditions WA is well renowned for, from harsh burning sunlight to wild storms, wind and rain — a poor quality solar system will easily falter in harsh weather conditions. Be sure to grill several solar provider companies with loads of enquiries to best ascertain whether the weather will cause your new panels damage.

9. Some Solar Panels Are Not Checked When Shipped to Australia

It's a sorry state of affairs but sometimes solar panels from overseas shipped here are not checked by regulators, creating a large number of panels that are of substandard quality. It’s even been reported that several solar panel manufacturers send Australian solar companies dud panels because they know they will not be checked. This means to best ensure you are not buying dud panels you should do heaps of research about reputable Tier 1 brands and manufacturers.

8. Cheap Panels Can Mean Dead Panels

Buying cheap panels can sometimes mean the individual panels may be faulty or ‘die off’ sooner rather than later. A dead panel is a panel that is no longer harnessing energy from the sun as it should — and one dead panel may badly affect the overall efficiency of the larger panel used. Check your warranty agreements before purchasing your solar panels — guarantees may range from between 5–25-years, with higher quality panels giving you more years in warranty and hopefully more years of active service.

7. Bad Panels Can Lead to House Fires

In Victoria it was recorded in 2018 that over 25 house fires were caused by faulty solar panels; houses were lost and others badly damaged. These fires can be caused by several issues to do with faulty solar panels — but one issue, in particular, causes most of the fires. A switch called a DC isolator — an integral piece of any solar system — which is installed to shut off the flow of energy from the solar panels — are sometimes faulty and can lead to the system catching alight.

6. Your Solar Batteries May Be Unsafe

There are growing reports of faulty solar batteries on the market, with some causing electric shocks, chemical exposure, explosions and fire. These batteries may be installed with shonky practice or be fault themselves — regardless, it’s vital you do your research before having a solar battery installed to check for the best brands and installers on the market.

5. STC Not Being Cancelled if Solar System Fails

A reoccurring issue facing customers with failed solar systems is the STC (a renewable energy certificate), which when created assumes the panels will produce clean, green energy for 12 years remain viable even after the system has failed. This seems like a non-sequitur but unfortunately is still a predominant factor in failing solar systems nationwide.

4. Different Solar Rules for Each State

Each state and territory in Australia have differing solar advisory and regulatory rules and instigators, so depending on where you live in Australia will depend on how stringent the rules and guidelines are for the solar system you are looking to buy. Make sure you seek out your local solar advisory organisation to get the best information on solar systems specifics to your area.

3. There’s Loads of Shonky Solar Companies

With solar systems popularity on the rise all over Australia, there’s been a massive influx of dodgy solar companies that often’ promise the world’ when it comes to providing solar customers with solar solutions — yet often fall short. There are horror stories of solar systems failing and the company that sold them had already gone into liquidation. The best way to ensure the company you go with is reputable is to do your research and gather reviews, ratings and compare them to other companies.

2. Salespeople Using Unscrupulous Tactics

It’s not rare for salespeople to be pushy but it seems the burgeoning solar market has created a certain breed of hardnosed salespeople who will stop at nothing to have customers signing on the dotted line. The best way to stay clear of pushy sales types is to let them know (with force, if required!) that you are not interested in discussing options with them further — then politely hang up the phone and block their number!

  1. Beware of Unaffordable Credit

One tactic solar companies and their salespeople may use to tantalise you with affordable solar systems is by introducing the idea of buying a system on credit. Although sometimes the method of paying for solar via means of credit can be helpful to better manage your budget — you can potentially fall into a trap with the illusion of the credit being affordable when it is not. The best way to ensure a credit system method of paying works best for you is to scrutinise the plan with a fine-tooth comb and consult your accountant.

There you have it — a cautionary tale offering some insight into what you should look out for when negotiating bad solar and the factors that separate the bad from the good. Thanks for reading and good luck with your solar endeavours!

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MLEC Solar

Solar power is our thing — so we decided to write home about it.