Concerns over unethical sales tactics and improper installations in the solar panel industry have ushered in proposed legislation for consumer protections.

“We are seeing an increase in, unfortunately, some bad actors starting to take growing interest in Washington state as a place to deploy rooftop solar,” says Nora Hawkins, senior energy policy specialist for the Washington state Department of Commerce. “There really is no law on the books in Washington that provides any sort of requirements specific to solar energy installations." 

House Bill 2156, which was filed with the state Legislature on Jan. 5, would “establish rules of business practice for solar energy contractors and solar energy salespersons to promote honesty and fair dealing with homeowners and other property owners,” the proposed bill reads.

Hawkins says, “We have heard of most of these concerns from utility companies throughout the state, certainly solar installers as well."

Stephanie Myers, products and services manager for renewables at Avista Corp., says customers have come forward with issues surrounding solar panel installations and sales tactics.

“We have noticed an increase in solar companies in our area, and with more solar companies in the market, we’re going to see good and bad business practices,” Myers says.

In 2020, about 200 Avista customers installed solar-energy systems. Last year, that number grew to almost 1,800, Myers says.

“That is due to a lot more companies on the streets knocking on doors marketing their solar products,” Myers says.

Avista has yet to take an official stance on HB 2156, though it has been in communication with Commerce regarding the development of the bill, Myers says.

“We’ve been generally supportive of the concept of transparency and protections for our customers,” she says.

If passed, HB 2156 would likely go into effect in mid-2024.

Gavin Tenold, owner of Spokane-based Northwest Renewables LLC, says his company receives calls on a weekly basis from people who had solar panels installed that aren’t working.

“The call usually happens because the solar array is not producing power, or it has sparked and flipped a breaker,” Tenold says. “We see a lot of what we call poor wire management, where the electrical wires are not being carefully installed.”

Founded in 2016, Northwest Renewables is a specialty electrical contractor that offers energy-efficient products, including solar-energy systems.

Some of the customers who call Northwest Renewables do so because they are unable to get in contact with the companies that installed their solar panels, Tenold says. Northwest Renewables has gained dozens of customers over the past year due to improper installations by other companies, he says.

“It’s an industry that needs some consumer protection,” says Tenold, who is also on the board of directors for the Washington Solar Energy Industry Association.

Jared Diehl, field operations manager at Northwest Renewables, says one reason solar panels don’t generate power is because they haven’t been interconnected with utility companies.

“You have to have an interconnection agreement with your utility company to give them power,” Diehl says.

Diehl says he has been told by local utility companies that there are solar companies in the area with dozens of open interconnections. Commerce has also been made aware of interconnection issues.

Hawkins says there have been instances in which installers failed to complete the interconnection process.

“In the worst-case scenario, those systems never get interconnected, and the customer may still be saddled with a significant loan they’re paying off,” she says.

Another issue on the installation side is related to roofs, and whether they’re in sufficient condition to support solar, Hawkins says.

“Solar tends to last 25 years or more,” Hawkins says. “You should be thinking about when the last time your roof was replaced.”

Customers typically will have to pay for solar panels to be uninstalled and reinstalled if they have to replace their roof, Hawkins says. HB 2156 would require a statement within contracts that clearly explains the cost of uninstalling and reinstalling a system.

There also have been instances of improper placement of solar panels, relating to shade.

In Washington, solar panels typically need to be placed on the south-facing side of a roof to produce power at the highest rate, says Hawkins. Trees also can impact the production capacity of solar panels, she says.

Tenold uses the lower South Hill as an example of an area where homes may not be well suited for solar panels because of how much sunlight they receive.

While installation issues vary, they often boil down to poor craftsmanship, Diehl says.

“We go out, and we’re opening a can of worms because we don’t know what that other subcontractor did on site,” Diehl says. “I’m always hesitant to take on other companies’ installs, because we don’t know what their quality of work is.”

Dishonest and aggressive sales tactics also  have become more common in the solar industry, Hawkins and Tenold both say.

Some solar salespeople have been said to make false claims, including saying that solar is free, or that customers can get paid to “go solar,” Hawkins says.

The average cost of a 7-kilowatt solar system in the Spokane area ranges between $20,000 and $25,000, says Janelle Kraft, communication program manager for Avista.

Customers in Washington also have been told they can disconnect completely from their utility company's energy system if they install solar panels, which is only the case in very rare instances, Hawkins says. Most stay interconnected with a utility company for times when their solar panels aren't producing sufficiently enough to support their energy needs.

False claims about utility rates and the amount that will be saved by installing solar panels also have increased, Hawkins says. A section of HB 2156 addresses advertising and making claims about solar energy.

There also have been false claims made about tax credits or refunds that customers can receive if they install solar panels, Hawkins says. Customers on income-qualified support programs likely wouldn’t qualify, but some bad actors are telling people they would, she says.

Per federal law, customers have three business days to cancel a contract, and HB 2156 makes that more clear, Hawkins says.

“One other part we've built into the bill is information around when payment is due, ... how it's based on completion of the project milestones, and then what the cancellation fees would be at various stages in that contract period,” Hawkins says.

Tenold became more aware of the increase in bad business practices in 2021, when he heard from a customer in Liberty Lake that another solar company's representative was telling people it had acquired Northwest Renewables, which was untrue, he says.

Myers says another concern regarding dishonest sales tactics involves solar companies misleading customers about their relationship to utility companies.

“We are aware of some solar companies in our area that communicate to customers that they’re partnering with Avista,” Myers says. “We do not partner directly with solar companies.”

Avista has a vetted list of solar contractors on its website for customers to review, as well as tools to help customers understand the costs and benefits of solar, specific to their home.

While increased industry regulation isn’t always popular among business owners, Hawkins says most Washington Solar Energy Industry Association members, including Northwest Renewables, are supportive of HB 2156.

The association partnered with Commerce on the proposed bill, Hawkins says.

Hawkins says she doesn’t want there to be a culture of distrust in Washington between customers and solar installers.

“I want to see the good installers continuing to work with customers and providing them those services,” Hawkins says.

Tenold shares the same sentiment regarding the reputation of the solar industry.

“(Washington Solar Energy Industry Association) is really concerned about negative experiences shared by consumers that can harm the image of solar companies and installers as a whole, even if the majority of us operate ethically,” Tenold says. “The last year or so shows that high-pressure and deceptive sales tactics unfortunately can be really effective until these consumer protections pieces are in place.”