Don’t let aggressive sales tactics turn a smart investment into a costly mistake.
By Erika Sullivan
Members often ask where Douglas Electric Cooperative stands on solar energy. The short answer: Solar can be a good option, but it’s important to do your homework. Douglas Electric is pro-member and wants members to make informed decisions that are right for their households, budgets and long-term energy needs.
Douglas Electric buys power from Bonneville Power Administration, which supplies us with affordable hydropower. BPA’s wholesale power pricing is based, in part, on historical usage levels under what is called our contract high-water mark. Power bought within that threshold, known as Tier 1 power, is affordable. If our overall power demand exceeds that level, we must buy Tier 2 power, which can be significantly more expensive.
When members install rooftop solar and reduce the amount of electricity they draw from the grid, it can help lower overall demand and reduce the need for higher-cost Tier 2 power purchases. In that sense, member-owned solar can provide some benefit to the cooperative system. As interest in solar energy continues to grow, so do reports of aggressive sales tactics and solar-related scams targeting homeowners across Douglas County. Recently, utilities and consumer advocates have warned about door-to-door and telephone salespeople using misleading claims to pressure homeowners into signing solar contracts.
While there are many reputable solar companies, members should be cautious when approached by anyone claiming to represent a utility, government agency, or official energy program. Some salespeople falsely claim they are working with local utilities or suggest homeowners must install solar panels or upgrade their electric meters. Utilities do not go door-to-door selling solar systems or demanding immediate upgrades.
1 common tactic is offering free solar or elimination of electric bills, immediate large savings, or statements that government programs will pay for the entire system. In some cases, homeowners are told their tax credits will fully cover loan costs. A solar system is a major financial investment, and the details of ownership, financing, maintenance, and energy production are important.
If a solar salesperson offers a free solar program, it is often a lease or power purchase agreement. A solar power purchase agreement is a financing arrangement in which a company installs solar panels on your property and the company owns the system, not the homeowner. Instead of buying the solar equipment, the homeowner agrees to buy the electricity generated by the panels at a set rate for a long period, often 15 to 25 years.
Here’s how a PPA generally works:
- A solar company installs and maintains the solar system on your home.
- You usually pay little or no upfront cost.
- The company owns the panels and may receive available tax credits or incentives.
- You agree to buy the electricity the system produces under a contract.
- Your electric bill from the utility/ cooperative may be reduced, but you remain connected to the utility system.
While PPAs can work well for some homeowners, it’s important to carefully review the contract terms. A PPA may offer lower upfront costs, but some contracts may include long-term commitments, rising payment rates, fees for ending the agreement early, or complications when selling your home. Homeowners should understand who is responsible for maintenance, roof repairs, insurance, and what happens if the system does not produce the expected amount of energy.
Some solar sales representatives may claim government programs will pay for your solar system or suggest solar panels are being provided at little to no cost through special state or federal programs. While tax credits and incentives may be available, these programs typically do not cover the full cost of a solar installation, and not every homeowner qualifies. In many cases, homeowners are still responsible for loans, financing agreements, lease payments, or long-term power purchase contracts.
Members should be cautious about anyone who shows up at their door and asks to see a power bill. While a legitimate contractor may eventually need energy use information to prepare an estimate, salespeople may use your bills to collect account information or to justify a high-pressure sales presentation. Douglas Electric encourages members to take their time and do some research before signing an agreement.
If you are considering solar energy for your home, here are a few important tips:
- Never feel pressured to sign a contract immediately.
- Carefully review financing terms, warranties, and cancellation policies.
- Verify the contractor’s Oregon Construction Contractors Board license.
- Get a few quotes from licensed contractors.
- Ask questions about who owns the system and what happens if you sell your home.
- Ask what happens if the solar company goes out of business.
- Contact Douglas Electric if you have questions about net metering or how solar connects to our electric system.
Solar may be the right choice for some households, but the best choice is always an informed one. Before signing any agreement, members should carefully review their energy use, financing terms, system cost, home orientation, claims made by the company selling the system, and incentives or future savings. Taking the time to understand the costs, benefits, and long-term responsibilities can help you make a confident, informed decision.
believe someone may be falsely representing Douglas Electric Cooperative, call us at (541) 673-6616 before sharing any personal or account information. We’re happy to answer questions and help our members.