Over the past decade, the solar industry has boomed. In 2018, the number of Australian households with solar PV installations reached 2 million. That’s an average of six solar panels installed per minute!

The solar industry is growing rapidly, yet there are many solar companies who have left. ABC News reports that almost 700 solar companies have gone out of business since 2011, leaving about 650,000 Australians without warranties if their systems fault. These systems are referred to as ‘orphaned’ systems, because there is no longer a company available to take responsibility.

So, how’s it possible that so many solar companies have shut down in an industry that’s booming?

Why solar companies go out of business

There are many reasons a solar company might shut down. One of the biggest reasons is how they handle claims against their products. Cheap prices conceal what is really happening under the surface – subpar business practices and poor management.

It could be said there are two types of companies. The first are those who face adversity, doing everything in their power to rectify product complaints. The second are those who when facing such claims about their products, are unable to rectify the problem. The second company type is more likely to go out of business because they continuously overlook customer complaints.

Additionally, if the company uses low quality, cheap solar products, the chance of going out of business further increases. This is because cheaper systems fail at a faster rate, in turn, leaving the company with a magnitude of failed systems at once. This can place stress on the company’s resources, causing a business to shut down due to increased pressure and the inability to deal with the problem correctly.

At this point, it’s easier for a business to declare bankruptcy instead of replacing a large amount of failed solar systems. When this happens, existing customers are left with few options and are forced to write off the failed system, starting fresh with a new company.

This situation is all too common, not just for solar, but for many companies that operate in different industries. Thankfully, it’s possible to prevent by choosing a stable solar company and avoiding cheap products at all costs.

What consumers need to know

If you are looking to install solar PV or batteries, it’s important to make sure you select a reputable solar company who has years of experience in the industry.

You can do this by undertaking research to help you separate the good from the bad. Ensure the office address is a legitimate location, look at online reviews to see how they handle complaints and confirm they have been in business for more than five years.

As a consumer, the most important decision you need to make is what solar company you will trust to install your solar solution. Check out our in-depth guide for choosing the right solar company.

We are proud to say that Solar Service Group has over 30 years combined industry experience. Our customers can rest assured knowing their solar needs are in the hands of experienced solar professionals, see what our customers say about us. As experts in solar, we have a range of products suited for varying needs and requirements. If you would like to learn more about our current offers, give us a call on 1300 40 41 42.