Find out the dark side of rooftop solar panels in the U.S., where some customers feel deceived by expensive panels and poor customer service. Learn how big companies utilized new financing models and aggressive sales tactics, leading to discontent among consumers. Explore the challenges faced by the residential solar industry and the potential future directions for this business model.
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Quick takeaways
Residential solar companies prioritize rapid expansion over customer satisfaction, leading to inflated prices and disappointing experiences for some consumers.
Big national solar companies focused on growth strategies like tax credits and asset-backed securities, neglecting customer service and panel performance.
Deep dives
The Promise of Solar Panels and the Reality of High Electricity Bills
Christine and John were sold on the idea of solar panels reducing their energy costs significantly. However, after investing in solar panels, their electricity bills did not decrease as expected. The panels ended up not generating the promised amount of energy, leading to disappointment and financial strain for the couple. Problems with customer service and unmet expectations highlighted the darker side of residential solar panel installations.
The Growth Strategies and Financial Realities of Solar Companies
The episode delves into the growth strategies of residential solar companies, emphasizing the focus on expansion and financial engineering. Companies like Sunrun and SolarCity utilized tax credits and asset-backed securities to attract investors and scale their operations. However, the imperative to grow rapidly led to aggressive sales tactics, high commissions for salespeople, and inflated prices for customers.
Challenges and Potential Disruption in the Residential Solar Industry
Despite the initial enthusiasm for solar energy, challenges within the residential solar industry have emerged. Issues such as poor customer service, overreliance on sales and financial models, and unmet expectations from customers have raised concerns about the sustainability of the industry. The episode questions the long-term viability of big national residential solar companies and highlights the need for improved practices to ensure customer satisfaction and industry longevity.
4.5 million households in the U.S. have solar panels on their homes. Most of those customers are happy with it - their electricity bills have just about disappeared, and it's great for the planet. But thousands and thousands of people are really disappointed with what they've been sold. Their panels are more expensive than they should be, and they say it is hard to get someone to come fix them when they break.
It turns out this sometimes crummy customer experience is no accident. It ties back to how big, national solar companies built their businesses in the first place. To entice people to install expensive solar panels, companies developed new financing models which cut upfront costs for customers. And they deployed lots and lots of salespeople to grow their businesses. But in the drive to get more households installing solar panels, consumer costs went up and the focus seemed to shift away from making sure those panels actually worked. All of this left some consumers feeling like they've been sold a lie.
On today's episode, we look into how the residential solar business model has turned some people sour on solar. And we'll try to figure out where the industry could go from here.