SEIA works towards clarity in consumer-installer communication as solar industry grows
As the solar energy industry continues to develop, the Solar Energy Industries Association (SEIA) is working to fill the growing need for increased clarity and transparency in solar transactions through various consumer protection efforts, including a recently released solar purchase standard disclosure form.
Although there are the occasional “bad actors,” most of the issues SEIA encounters are misunderstandings between installers and consumers, SEIA Executive Vice President and General Counsel Tom Kimbis told Daily Energy Insider. These misunderstandings come about because the industry is so new, and the number of both consumer and solar businesses is growing rapidly.
“Solar is new in many jurisdictions,” Kimbis said. “It’s just a new option. People are not used to having options on their electricity.”
SEIA’s new disclosure form is meant to clear up some of this confusion by highlighting key terms of contracts and allowing consumers to more easily compare different offers from solar companies.
“It’s all about clarity,” Kimbis said. “It’s about transparency. It’s about doing the right thing, and our companies are very committed to making this work.”
The new disclosure form is for solar purchases, which are becoming the most common type of solar transaction. SEIA also provides sample leases and power purchase agreements.
The most common complaints SEIA receives, according to Kimbis, deal with either misrepresented predictions or misleading advertising. Solar companies often make predictions about how much energy will cost in the future. When these numbers aren’t backed up by proper sources, they can end up misinforming customers.
Other complaints deal with misleading advertisements. An installer may advertise “free solar,” for example, when what they really mean is that there is no extra charge for installation but consumers still pay a monthly fee to lease the system.
When SEIA receives complaints, they reach out to the companies involved.
“We will reach out and contact the company and explain to them why, and in almost all cases the company is very thankful that we’re reaching out to them,” Kimbis said. “Once they understand that you can’t advertise the solar as free, they change their advertising program.”
SEIA also works with states, as well as the federal government, in order to help inform consumer protection policy decisions.
The Federal Trade Commission (FTC) as well as several state governments are considering or have considered consumer protection laws for the solar industry.
Another major aspect of SEIA’s consumer protection effort deals with education for both customers and businesses.
SEIA maintains a web portal with consumer resources, such as industry alerts, consumer guides and disclosure statements.
SEIA also plans to begin creating webinars and continue partnering with other organizations to help reach more consumers.
“Our business line is one which relies on word of mouth, so if [the customers are] not happy, our businesses aren’t growing, and nobody wants to see the unhappy consumer,” Kimbis said. “The challenge is figuring out ways to get to as many of them as possible.”
For consumers interested in solar, Kimbis recommends beginning with SEIA’s residential guide. For solar businesses, Kimbis said, the core piece is SEIA’s national code of conduct, a set of guidelines by which all SEIA members must abide.
“We have within our industry a very strong culture of consumer protection,” Kimbis said. “We’re made up of small businesses who understand that the only way to succeed is by consumers being treated properly.”
