It Is Possible to Get Compensated for Mis-Sold Solar Panel Loans
The popularity of solar power as an electric source for homes in the UK may be attributed mostly to its economic benefits. Solar panel companies are aggressively convincing homeowners to take out loans in order to finance their purchase of the energy-saving power grid.
Solar energy is produced when solar panels, directly hit by sunlight, capture the photons of the sun’s rays. The photovoltaic (PV) cells in the panels act as inverters to generate direct current (DC) electricity and convert to alternating current (AC) electricity that can be used in households.
Solar panels are expected to pay for themselves by producing excess energy that can be transferred to the National Grid, in addition to lowering energy costs for generating their own electricity. Household feed-in tariffs (FIT) of roughly £5.24 per unit of electricity can be earned by selling excess power to the government.
Sales agents from solar panel companies use the promise of feed-in tariffs (FIT) as the final resort to make a sale. Prices for the renewable energy source may not be as affordable but the cost for a solar panel system for a regular household, which is around £5,940, becomes seemingly a wiser choice when agents hard-sell it with bank financing.
Oftentimes, situations like this result in mis-sold solar panel claims.
Patrick and Valerie Jennings from Bedfordshire took out a solar panel loan for £8,995 that was (mis)sold to them by an energy firm that told them that their interest per year would only be 0.79%. What they were actually charged per year was 9.5%, an interest of £4,971 on a ten-year loan. They took £8,000 from their Premium Bonds to pay off their debt.
The Jennings family were awarded £4,928 by the bank that provided their loan when they filed a complaint with the bank.
In 2017, three financial institutions that are considered leaders in the banking and finance sector received 3/4 of the 2,000 mis-sold solar panels complaints. By 2021, a total of 7,000 have complained to the Financial Ombudsman Service about their mis-sold solar panel loans.
Advantages of solar panels
Experienced solar panels experts at Claim Experts are certain that these sales agents knew that the feed-in tariffs and energy cost savings would easily convince their target market to buy the equipment even if they had to borrow the money to do so. If it is not as affordable, why would somebody prefer solar energy over traditional electricity? Keep in mind, however, that there are benefits of using this alternative power source for your household:
- It reduces your consumption of standard electricity, which also reduces your electricity bill. It also can give you ROI on the equipment cost because of the feed-in tariff, provided that you sign up for it.
- It does not emit harmful gases and does not use fossil fuels to sustain its power. It comes from a natural source that is sustainable. As long as the sun is around, solar panels can and will work.
- The panels last 25 to 30 years and are usually attached to the roof and do not have any moving parts. This lessens the risk of the equipment breaking down, unless caused by severe weather conditions.
- Households that are off-the-grid or constantly moving (i.e. mobile homes) and those that do not have access to the national grid can have electricity for as long as they have access to sunlight.
- It can help the economy by maintaining a steady price range of the product, which will discourage the purchase of imported electricity. An imported power source has an unstable cost as this depends on the product’s supply and demand.
- Around 16,000 workers make a living with the jobs they hold in the solar industry. It can create jobs for solar panel manufacturers, installers, and sales agents.
The Jennings family were promised that they could earn £19,500 over 20 years and were forced to agree to the loan because of the sense of urgency that their agent made them feel. They were told that the FIT were being reduced by the government in a few months, and that they needed to make the decision right away. Although this was true, head of Renewable Energy Consumer Code (RECC) Virginia Graham said that “disreputable” sales agents have been using this tactic to push unsuspecting individuals into signing up for something that isn’t necessary for them.
Making a claim
If you believe that the company that sold you the solar panel equipment intentionally misled you about the loan, complain to them or to the financing firm that loaned you the money. Ask them for your Mis-Sold Solar Panels Compensation.
If everything else fails, turn to Claims Experts; their mis-sold solar panel experts can help you get back what the solar panel and financing companies owe you.