Solar PV - Booking Deposits Seem Crazy

garrettod

Hi,

Having engaged with several providers, it seems that all want around 50% deposit, at time of booking. This seems crazy....

It's not custom made equipment, and it isn't kit that's made to order, it's not perishible, and given high levels of demand, it's not like a supplier will be stuck with the equipment for long, even if a customer does cancel their order.

From a customer's point of view, they are being asked to front approx 50% of the overall cost, often 1-2 months in advance, and they aren't even getting ownership of the equipment. So there's a big risk for the customer, if the business goes bust, or a dispute arises between customer and supplier.

What's worse, I found that most of the suppliers seem to be insisting on bank transfers, they won't even accept credit card payments, which would give customers some level of protection, if things went wrong.

This situation seems crazy to me, and simply wrong, given the lack of customer protection.

From a practical point of view, I would think that the equipment is costing the supplier less than 50% of what the customer is being charged, with the rest of the price covering labour and profit.

What's more, most manufacturers / distributors will be giving 30-60 days trade credit, assuming the installer has a reasonable credit record, so that doesn't support the argument for a customer having to pay such a large deposit.

I thnk it's time that all of these suppliers either:

1. Are compelled to get a Bond, to provide security for customer deposits, like all Travel Agents have to get.
2. Are forced to immediately transfer title to all equipment being purchased, with the equipment delivered directly from the distributor / manufacturer, to the customer, on payment of the 50% deposit.
3. Are told to take a hike, when they ask for anything more than say a 10% deposit, at time of booking.

bullit_dodger

Typical credit card rate for a merchant is in about 2%, so if your taking €10,000 installation, that would be €200 for every transaction a solar installer can get if they insist that a customer use a bank transfer. Hardly surprising that they ask for it.

Same think with Nkon.nl give a discount for bank transfers - albeit they do accept credit cards. I didn't "like" it when I got mine done back in 2021, but if you pick a reputable well respected company, you should have little to worry about.

crisco10

Agree it’s far from ideal. Like many up and coming sectors, it’s awash with money, new suppliers and government subsidies but no regulation.

think I had paid 65% before installation date.

that being said the final balance was due on install day, but they took a while to issue an amended invoice so I got a cure period of sorts to get all grant paper work sorted etc before settling my account but that was an administrative quirk I feel. Finally settled up maybe install + 30 days.

slave1

50% is normal in the midlands for any electrical/plumbing work where materials are required but no way would I be paying the final 50% until a week after install and they system fully up and running without issues

garrettod

To be fair, fees are typically negotiated at reduced rates with the Banks / card processors. Fixed fees are fairly common, particularly for large value transactions.

ELM327

I had paid 50% upfront. I would not do that anymore.