It’s become a growth industry for homeowners looking to save money on their electric bills. But as WGN Investigates has found, when it comes to the popularity of solar panels, the movement is leaving some feeling burned by promises that never saw the light of day.
Mike Ward and his family have lived in their Arlington Heights home for a few years.
“When we bought the house in 2019 we did some remodeling work put in some new windows and energy efficient appliances,” he said.
The idea of going solar sounded appealing to Ward, who is a music director at a north suburban church.
“I wanted to do my part to help the environment. If I could save money on top of that, it was an added bonus,” he said.
Ward had come across a social media ad that intrigued him.
“(I) Spent a lot of time researching came across this company, Smart Money Solar who I took some sales presentations with over six to eight months. They had been advertising a new way that was cost effective to go solar,” he said.
The tipping point was that the panels would be his own, not leased.
“I took several presentations over the course of several months and everything down to the penny was consistent,” he said. “And I took a chance that maybe this is a guy who’s found a way to make the money work for you, make it affordable and I’d be a fool not to give it a try.”
Ward problem wasn’t that the solar panels weren’t installed. It’s how they were put in and how much he has to pay for them now.
After signing the contract with the installer, Titan Solar, the company put in multiple panels. After months long delays and failed inspections, the job was done. Titan promised help getting credits from the state and federal government and the sales company, so Mike’s out of pocket costs would be manageable. Then, in June, out of the blue, Ward learned Titan ceased operations, citing bankruptcy.
He is now on the hook for a $53,200 loan with a 11.9% interest rate over next 20 years.
Ward filed complaints with the Better Business Bureau and the Illinois Attorney General. Later, he discovered a Facebook page dedicated to people scammed by a variety of solar companies. Homeowners in many states left high and dry, and for those locked into a contract, a cottage legal industry arose.
Texas attorney Neal Prevost specializes in helping clients stuck with bad solar contracts, especially with the closure of Titan. He says sellers often exaggerate the savings and the lenders charge exorbitant fees and rates. They prey most often on those on fixed incomes.
“We’d guess 30-40% of everybody is really unhappy,” he said. “That’s the gist of what we’re trying to do, is to do individual arbitrations, and get people some recompense for all these problems.”
The Illinois Power Agency administers the Illinois Shines grant program and says most solar projects go according to plan and do save money, but by the end of August – out of 14,000 applications, there were almost 800 complaints, 121 against Titan Solar.
Marina Minic is the Solar Programs Coordinator for the Citizens Utility Board, an organization that advocates for utility rate payers.
Helpful links:
Illinois Power Agency
Citizens Utility Board
“We always use the word ‘scam’ and ‘bad deals.’ There are companies out there who are charging a lot more than they should be for solar,” she said. “These are companies that are using high pressure sales tactics. Trying to get people to sign a contract at the door.”
Her advice is the same as Prevost’s:
- Avoid the pressure sales tactic.
- Get multiple quotes
- Negotiate a price
- Seek references and reviews
- And use a local lender
As Ward considers his options, including litigation, he hopes others hear his advice.
“I would have trusted that old adage: ‘If it’s too good to be true, maybe don’t take the bait,’” he said.
Ward has received a $9,000 payment from Illinois Shines.
WGN Investigates tried to get in touch with Titan Solar – the bankrupt company doesn’t appear to have any working numbers.
The Illinois Power Agency is, in the meantime, developing a solar restitution program for customers who don’t get their incentive payments as promised.
When things go right, the Citizens Utility Board says in Illinois, it takes 5 to 8 years to get a return on your investment.
