General News
24 February, 2025
The dark side of solar: How to avoid scams and phoenix companies
It's no secret to Aussies that not all solar companies operate with integrity.
It's no secret to Aussies that not all solar companies operate with integrity. The solar industry in the past, and still now, has been tainted by phoenix companies - businesses that exploit the system, leaving customers without warranties or reliable service. While the promise of "cheap solar" may seem appealing, it often leads to far greater costs down the track.
What are phoenix companies?
A phoenix company is a business that deliberately goes into liquidation to avoid paying debts, only to re-emerge under a similar name, often with the same management - and the general public are none the wiser. These companies leave their customers stranded with faulty or underperforming solar systems, no warranty support, and no recourse for repairs or replacements.
Dan, co-director of Advanced Energy Solutions (AES), warns, "Some of the biggest names in the solar industry have been guilty of this. They go mental on advertising, sign celebrity or cricketer endorsements, and offer unbeatable prices. On the flip side, they use cheap imported materials, pay subcontractors minimal rates for consistent work, who often do a quick and carefree job, often two a day to keep themselves fed. So when the retailer collapses, customers are left with nothing".
The hidden costs of cheap solar
Choosing the cheapest solar system can be a costly mistake. Inferior panels and inverters degrade quickly, leading to reduced efficiency and expensive repairs. Worse still, when a phoenix company disappears, so do their warranties, leaving customers to cover replacement costs themselves.
Advanced Energy Solutions (AES) leads the way in terms of warranty with 10 year workmanship, plus a five year savings guarantee - but they come at a price. "We pay our installers well and we use only good quality products" explains Jim, co-director of AES. "Solar is a long term investment, so we plan on being a long living company. If we cut corners to be competitive with the uber cheap - longevity would be unlikely".
Make the right choice for your solar investment
Don't be tempted by the short-term appeal of cheap solar systems that come with hidden risks. Do your research and look into the best solar installers online, or even ask your local electrician, as they will more likely be sticking around in your area for the long term.