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Report: #1274688

Complaint Review: Solar City - Nationwide

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  • Reported By: electricman — WOODBINE Maryland USA
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  • Solar City Nationwide USA

Solar City, Elon Musk, Peter Rive, Lyndon Rive, Tanguy Serra, Hayes Barnard, Brad Buss Solar Snake Oil Solar city lies about savings and the PPA contract actually will cost you money San Mateo Nationwide

*Consumer Comment: “THE SYSTEM’S GONNA BLOW POEM”...

*Author of original report: Dear Truth be told

*Consumer Comment: Truth be told

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 Solar Snake Oil There are several solar power companies, both local and national, that are misleading consumers. They are signing up new customers at an alarming rate into 20 year contracts. These contracts are known as PPA’s. PPA stands for “power purchase agreement”. These solar power providers frequently promise substantial savings with no upfront costs to attract customers and offer free equipment, installation, maintenance etc. It all sounds really good, but there is no free lunch as they say. Wikipedia defines PPA’s on their website:

https://en.wikipedia.org/wiki/Talk:Power_purchase_agreement These contracts are supposed to allow consumers and business to benefit from clean renewable solar energy without having to purchase a solar power system. These companies attract consumers by offering a low or even no cost solar power system, including, free installation, free service, free maintenance etc. The main Idea is that they will save money on the electricity produced by the solar power system. The solar power system is actually the property of the solar power company, which at this time is operating as an unregulated utility. The basic idea sounds good. No upfront costs, clean energy, low monthly payments (that actually increase every year). I almost fell for this myself. One problem with the scenario is that the consumer gives up quite a few things in exchange. The companies who are providing the use of their solar power systems get huge tax credits and incentives called: solar renewable energy credits also known as SREC’s. These tax credits and incentives could greatly offset the cost to the consumer if they were to purchase a solar power system. These savings can be as much as 50% off the purchase price.

The consumer could finance the remaining cost at today’s low interest rates and in a short period of time, the solar power system could pay for itself. One national solar power provider claims to be the largest of its kind in the USA. This company is called Solar City. They promote their services through two major, well known national chain stores in several states. I’m sure most people are familiar with Home Depot and Best Buy? The stores may not be aware of what’s going on. I would like to think that once these stores get wind of Solar City’s deceptive business practices, that they would sever their ties to Solar City. Solar City also uses network marketing, radio and television advertisements, door to door, telemarketing and pop up website ads and other efforts to gain a large share of the solar power market, which is growing rapidly. In Solar City’s network marketing plan, called Solar Ambassador, customers and non-customers can participate sharing the Solar City opportunity with friends, family, businesses etc. It’s a three tier payout for new customer referrals.

So if an ambassador gives a referral that signs a contract with Solar City, they get paid $250 for that contract and more if that referred customer also refers other customers and so on. I have no problem with free enterprise. But the problem as I see it is that this company and their associates are promoting their services in a deceptive and misleading fashion. In my case they told people that I had referred, that I had signed a contract when in fact I didn’t. They promised that I would save more than they actually quoted me in their proposal to me. They asked me to sign a document stating that my installation was complete and that it has been inspected and approved by the local electrical inspector. None of which is even remotely true. When I called the local inspection office I was able to reach the chief inspector. I explained my situation to him and he told me he was aware that Solar City was pulling a large amount of building and electrical permits for solar power system installations.

When I told him that Solar City had applied and paid for permits on my behalf and that I had never given authorization for them to do this, he was not surprised. He told me that Solar City is doing this so much that they actually caused a back log in the Howard counties permit tracking system. He also informed me that he had placed Solar City’s permits on hold and will not issue them any new permits until the company remedies the situation. Solar city has paid for these permits and in a lot of cases never completes the installation. This is likely because a fair amount of potential customers are not signing their contracts. This probably costs Solar City quite a bit as the county has a no refund policy on permits once they are issued. Companies like Solar city and other solar power providers are vying for customers as the Federal 30 % tax credit is due to expire at the end of 2016. They are pocketing massive amounts of federal funds, probably intended for consumers.

Currently there is no cap on these tax credits. The way the tax credits are administered, is that they go to the owner of the solar power generating system, in this case, companies like Solar City. There are several solar power companies offering the PPA’s to consumers and they are actually costing consumers dearly. Another notable company, Sungevity, operates out of Lowes home improvement stores. They have very similar marketing strategies. And they are all getting the federal tax credits, SREC’s and even $1000 currently offered in the state of Maryland. Some states have even higher local incentives. These companies are hungry for customers as the Federal tax credits are due to expire at the end of 2016. They are pocketing massive amounts of federal funds, most likely intended for consumers. But the way they are administered, they go to the owner of the solar power generating system, in this case, companies like Solar City, Sungevity and numerous others. Most solar power companies are offering the PPA’s to consumers and it appears that they are actually costing consumers dearly.

Some consumer complaints have suggested that these companies are lying to their potential customers about what they will supposedly save by using their service as their utility provider. And they are locking the consumer into a long term contract that can cause a lot of long term financial problems. The offending companies actually put a lien on the home. But they call it a different name in their contracts, but according realtors and mortgage consultants that I’ve spoken with, it is still a form of lien and falls under the same rules that apply to liens on real property. So when the consumer goes to refinance or sell their home, the lien needs to be removed somehow. So if the potential purchaser decides not to take over the contract, then the owner has to pay out the rest of the contract for something that will now cost them several thousands to remedy. Hopefully we can alert consumers to be very careful before signing up for something that will cost them dearly in the long run and get into a deal that is really too good to be true.

This report was posted on Ripoff Report on 12/16/2015 06:51 PM and is a permanent record located here: https://www.ripoffreport.com/reports/solar-city/nationwide/solar-city-elon-musk-peter-rive-lyndon-rive-tanguy-serra-hayes-barnard-brad-buss-s-1274688. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
1Author
2Consumer
0Employee/Owner

#3 Consumer Comment

"THE SYSTEM’S GONNA BLOW POEM”...

AUTHOR: Karl - (United States)

POSTED: Tuesday, January 18, 2022

is only available at this site. Just type in 581744 and it appears in the comments section at Ripoff Report #581744.

Thank you.

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#2 Author of original report

Dear Truth be told

AUTHOR: - ()

POSTED: Saturday, April 16, 2016

Thank you for your well thought, and passionate reply. 

First of all Sir, obviously you didn't read the guidelines for rebuttal, DO NOT write your report all in one paragraph. Use 2 or 3 sentences to each paragraph and leave a space between each paragraph. Well right away you have defined yourself as someone that believes that they don't have to go by the rules.

 

You state in your rebuttal that the very first thing I mentioned was that the rate increases every year. And that part about the rate increase is absolutly true. However, you failed to notice that the very first thing I mentioned was: 

that there are several solar power companies, both local and national, that are misleading consumers.

You immediately single out Solar City and jump right in defending the rate increase. There is no guarantee that Solar City will always be less than the utility companies. You state in your rebuttal that sometimes the utility companies increase rates double or even triple year to year. Where is your proof of that? Regarless of whether the utility rate increases year to year there are no documented cases of utility companies doubling or tripling their rates, ever! Talk about being uneduacated in the process of solar, you obviously favor a onesided view when it comes to Solar City. Do you have a vested interest in the company? What I know about solar is that it can be a good choice. But if the main benefactor is the solar power provider, how does it benefit the consumer?

 

I purposely singled out Solar City in my report because I was lied to. The salesman maintained that I would save 25 to 30 % off of my bill. But the 2.5 cents per kilowatt hour presented to me fell short of this teaser rate. When I did the math on the potential savings, I would only save about 15% which is not close enough to what the salesman lead me to believe. Also, I am pleased that Solar City is costing themselves money on permits when consumers delve into the contract and find out that there is a lack of savings promised. 

 

It seems to me that you are defending Solar City because you are personally connected with the company.

As far as the lien is concerned, you are correct Sir. It's actually called a UCC-1 fixture filing. In order for the consumer to remove the UCC-1, they must satisfy the contract. When the home is sold, the buyer could refuse toaccept the terms of the contract. If the seller is stuck with a contract that nobody wants, then they must payoff the contract to remove the fixture filing. So call it what you want, it is not good for the consumer. 

 

Why don't you (Solar City) concentrate on customer service and actually doing the right thing. By lying to consumers, all your doing is making the solar industry look bad. There are numerous consumer complaints against Solar City. They all point to the deceptive business practices which will prove to be Solar City's downfall. If an educated consumer wants to save money with solar, they will actually do much better in the long run to purchase a system in the near future as material costs are coming down. 

 

And how do you defend the fact that the documentation, Solar City asked me to Docusign (tm) was a complete lie. They wanted me to sign a document that stated my system was already installed, passed all inspections and was ready for connection to utility? Well at the time the phone agent was insisting that I sign the agreement that was not true. I will not lie for Solar city so they can profit from deception.

 

Good luck in your pursuit of the truth and know this: the actual truth will set you free. Come clean and free your mind of the guilt you must be dealing with. In the long run, the actual truth will catch up to you. Peace be with you Sir. I hope you come to terms with your delusion.

 

Sincerely, Bozo, AKA Electricman  Woodbine, Md

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#1 Consumer Comment

Truth be told

AUTHOR: Truthbetold - (USA)

POSTED: Tuesday, April 12, 2016

 Let's be straight forward and use common sense and think logically for a moment. Electricman obviously is uneducated on the process of solar. So let's direct his comments one at a time. The very first thing he mentioned is that the rate increases every year. The rate increase at least with solar city is guaranteed not to increase by more than 2.9% per year. If you look at past increases in your utility over the past twenty years you will see a significant increase sometimes double or even triple from year to year. So not sure how that is a bad thing for the consumer at 2.9%. Next is the 20 year agreement. This is a no Brainer. Obviously the solar companies are investing all the money in every part of a new solar system why wouldn't there be an agreement. And if customers want to help the environment and commit to a20 year program to save themselves money. Again a no Brainer. And how long of a commitment or agreement do you have with your utility companies. Well it's infinite as long as you want power. Now onto the subject of tax credits. Why would a tax credit go to the consumer if the company is investing all the money. Duh. Customers do have the option to buy the solar system if they have that kind of capital laying around. That is $20,000 to $80,000 and sometimes even more depending on the application. Then yes you would get the tax credit but it's only 30%of the original cost. Long term it is more beneficial for the customer to buy the system. However who wants to spend that money out of pocket. And as far as getting your own loan to pay it off, who the hell wants to go into more debt. Another no Brainer. The PPA option does not put a customer in debt at all. It just helps them save money. And over aperiod of 20 years most customers save anywhere from $10000 to well over $50000 in some cases. But yeah i guess that's considered a rip off to the consumer. So solar city has found a way to save customers money without spending a dime out of pocket. Not to mention the only home improvement project where a consumer can spend $0.00 out of pocket and get a 10%-20% increase in value of their home regardless whether they purchase or do a PPA. And as far as putting a lien on your home solar city does not. If you sell your home solar city guarantees the buyer will qualify to assume the agreement. And they have a 100% success rate in transferring agreement to the buyer of all their customers. And what person in their right mind wouldn't want the agreement if you told them if you remove the solar panels your electricity bill will go up 30%-70% depending how efficient the system is. And the value of the home will decrease significantly. The only reason a customer would have an issue is the aesthetics. In which case they wouldn't be looking at the home in the first place. If you didn't want a pool you probably wouldn't look at a house that has a pool. And as far as nitpicking about permits which solar city pays for, why wouldn't they get permits ready. Even if the customer is undecided they can still get a jump on it. The utility companies are the ones who make the process take longer. If the customer decides not to get a solar system they can cancel all the way up to installation and have no penalties at all. So solar city is taking all the risk. And just to be clear the only way solar city can pull permits for a customer is if they agree to the terms and submit to a site survey. No agreement, no permit. So electricman is giving false info somewhere along the line. So again uneducated people trash talking a company that is actually making a difference, taking all of the risk, and saving people tons of money. And by the way this is only the beginning of the solar industry. I can almost guarantee somewhere down the road electricman will swallow his pride after seeing the money he could've saved over years of having solar. His loss. Anyway you look at it, it is a win win for the consumer. Whether they buy the system or not. And by the way there is actually an upcoming meeting of about 100 Realtors in attendance to educate them on solar because of the popularity of it so they can more easily sell consumers homes. And guess what. It is by their request. So if anyone would like to save money, without spending it, increase the value of their home, help the environment, and make a little money too, talk to a solar city rep and get educated. This bozo has no idea what he is talking about.

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