Why are some solar panels cheaper than others?

As you may have seen, there are literally hundreds of solar companies in Australia. Each has their own offer, and there is a huge gap between the cheapest and the most expensive.

Under the new Solar Credits Scheme, a 1.5kW system has been offered by some companies for as low as $2,500 after rebates. That same 1.5kW system has also been advertised for $10,000 after rebates. The question is, how can one company offer 'the same thing' for a quarter of the price?

This information will hopefully show you what to watch for in making an informed choice about your solar power system.

1. Quality of solar panels

2. Quality of inverters

3. Quality of workmanship - who is installing your system?

4. Paying 100% deposit upfront

5. Contracts and clauses

6. Service and ongoing support

7. What do you know about the company you are dealing with?


1. Quality of solar panels

As with any industry, there is a wide gap in the quality of solar panels. Some companies like Suntech, BP Solar or Schott Solar have been around for a long time, and charge a premium price for an established brand. These companies have been around long enough to know that their panels will stand the test of time.

Unfortunately there are a lot of poor quality panels on the market, particularly in the last few years. They may have a warranty of 25 years on power output, but how do you find that company if your panel fails? And how do you trust a 25 year warranty from a 5 year old company?

Click here to see EnviroGroup's quality range of panels

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2. Quality of inverters

This is possibly the biggest issue with cheap solar power systems. The inverter is the heart of the system, and is responsible for converting the solar electricity into household AC electricity. If you use a cheaper inverter, the efficiency is generally lower, therefore you receive less power from your system that you might expect. There are also a number of cheap inverters on the market without a proven track record, which comes back to the warranty issue again. Some of the better known and respected brands of inverter are SMA (Sunny Boy), Aurora and Xantrex.

Click here to see EnviroGroup's quality range of inverters

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3. Quality of workmanship - who is installing your system?

Before the Government brought in significant solar power rebates, there were only a small number of companies installing solar power. System installations were almost always started and completed by a Clean Energy Council (CEC) accredited installer - a key requirement for rebate eligibility, safety and quality.

Unfortunately the rush in demand for solar power since 2008 has seen some standards slip within the industry. There have been many stories of unqualified and untrained installers completing installations that are then blindly signed-off by an accredited installer to satisfy rebate requirements. This has resulted many unsuitable and unsafe installations. Common problems including systems being installed with incorrect roof orientation or in significantly shaded areas. In some extreme cases incorrect electrical breakers have been installed resulting in dangerous malfunctions. Make sure the person installing your system is a CEC accredited electrician, because it means they have the relevant training, experience and qualification to complete your installation to the highest standard.

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4. Paying 100% deposit upfront

This is a popular method which has recently become big business for some solar companies, but you should NEVER pay large amounts of money upfront before the work is carried out. Some customers have found that their system wasn't installed for nearly a year after the paid a deposit. Other customers have had their inverter installed on the wall within a few months, but had to wait nearly a year for their solar panels to be installed!

It's also important to ask if your deposit is refundable should there be a significant change in STC prices (read more about STCs)

Needless to say, when you pay large amounts of money upfront, you expose yourself to a great deal of risk. Make sure you thoroughly investigate the deal before you hand over your hard earned cash!

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5. Contracts and clauses

There are so many things to look for, it's hard to know where to begin.

The most common clause in a solar power contract is the installation. The company that you purchase the system from is not always the same company that installs the system, and this provides a lot of headaches for you as the consumer. Some companies outsource the installation to a small electrical contractor (with or without the necessary training), and if your system is not installed properly, or there is any damage caused by the installers, the supplier of the system is not liable for any repairs. This means you could be chasing a small contractor that you have never dealt with, trying to get your system fixed up.

Another issue is the installation warranty. Sometimes the warranty is as little as 30 DAYS, so you might not realise that you have a problem until after your warranty expires. As a comparison, EnviroGroup offers a 5 year workmanship warranty, and you should expect no less than that (learn more about EnviroGroup warranties).

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6. Service and ongoing support

Some companies choose to cut costs by not providing their customers with necessary post-installation administrative support required to actually get their system up and running. Actually receiving the feed-in tariff and arranging for the installation of your new bi-directional meter is normally pleasant as pulling teeth. It is an unnecessarily convoluted bureaucratic nightmare and can really tarnish the whole solar power experience - one that should otherwise be an overwhelmingly positive one.

At EnviroGroup we do all the paperwork for you. We arrange the installation of the new meter and lodge your feed-in tariff on your behalf. You've paid enough for your system, so why should you have to struggle with masses of paperwork and constant phone calls to electricity retailers and wholesalers?


7. What do you know about the company you are dealing with?

This is a critical issue, and one which is becoming more of an issue every day. As we saw with the insulation debacle, generous government rebates can cause a huge influx of 'fly by night' companies, who are in it to make a quick dollar. A quick check of solar companies in Australia shows that a lot of them were established after 2009, to coincide with the popularity of the Solar Credits Scheme.

This is to be expected, but be wary of companies that offer a 25 year warranty if they have only been in business a short time. This doesn't give you any peace of mind, as most of the components have been manufactured by no-name companies who may or may not be around tomorrow. If your solar company closes the doors, you will have to contact the manufacturer (if you can locate them) to have your warranty work carried out.

It is also strongly recommended that you only install with a company who demonstrates a true commitment to the environment. Is their heart in the right place? Are you buying solar from a used car salesman who would have you install solar even if your roof was completely shaded? Make sure whoever you choose carefully considers your individual situation and who makes recommendations that are clearly for your benefit, not just theirs.

A simple way to find out if an installer's reputation is by doing a quick google search. Online forums like Whirlpool are ripe with angry customers who have been let down by dodgy installers.

At EnviroGroup, we pride ourselves on our honesty and commitment to the environment and our customers. If your house is not suitable for solar, that's exactly what we'll tell you. Click here to read more about the EnviroGroup advantage.


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