Solar panel systems and home batteries

About solar panel systems and home batteries

Solar panels and home batteries are an important investment. They can save consumers money, increase property value and generate electricity. Investing in solar has a positive environmental impact.

Federal, state and territory governments offer incentives for consumers to purchase these products. While subsidies can be an incentive, buying an energy system for a home or small business is complex and expensive.

The increased demand has led to some solar providers taking advantage of consumers. There is misconduct in the way products are sold, promoted and marketed.

Key responsibilities for solar suppliers outlines the areas of focus and concern.

Solar products are covered by consumer law

Under Australian Consumer Law, products and services that consumers buy from a business come with automatic guarantees. This includes that they will work and do what they’re supposed to do. These are called consumer guarantee rights.

All solar suppliers have responsibilities under consumer law. They also have responsibilities under other specific laws when supplying solar and batteries. All suppliers must comply with these laws.

There are significant penalties for non-compliance. Non-compliance can also lead to a loss of accreditation. This includes access to small-scale technology certificates provided under the Small-Scale Renewable Energy Scheme.

Learn more about consumer rights and guarantees.

Rights and responsibilities of solar suppliers

Solar suppliers must not take advantage of consumers. This includes misleading them or using high pressure selling techniques. Make sure consumers receive accurate and clear information before committing to purchasing products.

Solar suppliers must also protect consumers by selling safe products. Make sure you comply with standards and act quickly if a safety issue occurs.

Suppliers must be honest and truthful in advertising and sales

It is against consumer law for solar suppliers to engage in conduct that is false or misleading. This includes making misleading claims about products or services. Consumer law applies even if there was no intention to mislead anyone or no one suffered any loss or damage.

Demand is increasing for solar panel systems and home batteries. You need to be careful with your claims about product availability and installation. You should have a good basis for the claim and tell consumers if circumstances change.

You must not harass or coerce consumers to buy solar panels, a home battery or to sign up to a Solar Power Purchase Agreement or Solar Leasing Agreement. It is unlawful to take unfair advantage of any vulnerability or disability affecting a consumer. Doing so may amount to unconscionable conduct.

For more information, see False and misleading claims and Unfair business practices.

Suppliers must comply with telemarketing and door-to-door requirements

Solar suppliers must comply with uninvited consumer agreement requirements and consumer law when selling products or services through telemarketing or door-to-door sales.

Depending on local rules, you may approach consumers using telemarketing or door-to-door practices. You must also comply with ‘do not knock’ signs displayed on premises. With these selling practices salespersons often receive commissions from sales. There is a strong incentive to make sure a sale occurs.

Consumers buying products in an unsolicited sale have a 10-day cooling-off period. They can freely cancel during this time. You must not supply the products or require or accept payment or other considerations during the cooling-off period.

Provide easy to understand sales agreements

The consumer must be provided with a written copy of an easy to understand and read sales agreement.

Agreements must include the following information:

• full terms and conditions of the agreement
• total cost including any GST or details of how the cost will be calculated
• the salesperson’s name and contact details
• the business’s physical address, email, fax number (if they have one)
• Australian Business Number or Australian Company Number.

A valid contract requires the sales agreement to be signed and dated on the front page by both the consumer and the salesperson.

Lead generation practices

Solar suppliers may use techniques to gather data and information about consumers interested in purchasing solar or battery services. These techniques are called lead generation.

Solar suppliers often use claims including:

• no cost solar
• you are eligible for the government subsidies
• the solar system or battery will pay for itself.

These lead generation headline claims can be misleading. Solar suppliers rely on terms and conditions to provide more information about what is available. Often these contain information which contradict the headline claim. This is misleading conduct and against consumer law.

Solar suppliers use this approach with consumers directly through telephone or door-to-door sales. It is a form of unsolicited selling. There are strict conditions that should be followed by solar suppliers.

For more information, see Telemarketing and door-to-door sales.

Supplier responsibilities when bundling finance offers into sales

Solar suppliers may offer to arrange finance for consumers. You must be aware of responsible lending practices and deferred payment plans. This includes Buy Now Pay Later arrangements.

Australian Securities Investment Commission oversees Australian consumer credit providers. They have information about what is required when offering credit to consumers.

Remember that a consumer has the right to a 10-day cooling off period in an unsolicited sale. This is regardless of whether the consumer also entered into a finance agreement. If the consumer cancels their purchase during the cooling off period. They need to send the cancellation notice to both the finance company and the solar supplier.

Suppliers must meet consumer guarantees for products and services

Solar suppliers must meet the consumer guarantees for products and services.

For more information, see Consumer rights and guarantees.

Suppliers must provide remedies when problems occur

When consumer guarantees are not met

If the solar panel system or home battery fails to meet one of the consumer guarantees, the solar supplier may need to fix the problem. The type of remedy, and whether the consumer can choose the remedy, depends on the nature of the failure to meet the guarantee.

Responsibility for remedies

If consumers are paying one solar supplier for both the products and installation. They are responsible for providing a remedy if something goes wrong. Even if that solar supplier has subcontracted a third party for installation.

However, if consumers paid one business for the product and another for installation. The retailer is responsible for issues with the product itself. The installer is responsible for any issues due to or caused by the installation process.

For more information, see Repair, replace, refund, cancel.

Compliance with warranties

In addition to consumer guarantee rights, businesses can offer warranties. Warranties are extra promises that solar suppliers can choose to make. They include manufacturers warranties and extended warranties. Solar suppliers must comply with any warranties they have provided as they are a legal right.

All warranties must be accurate and truthful. Solar suppliers cannot mislead consumers about what warranties provide. They must provide value over and above the automatic consumer guarantee rights.

For more information, see Warranties.

Our compliance and enforcement approach

We are closely monitoring consumer complaints and conduct by solar suppliers. Making sure they are compliant with the law and that the process of competition is fair. We enforce the law in conjunction with state and territory fair trading and consumer affairs agencies. 

Where conduct is continuing and harmful, we may apply to the court for an injunction. This will stop a solar provider from committing an actual or attempted breach of the law. Injunctions may be temporary or permanent.

We may also issue an infringement notice. This occurs if we reasonably believe that a solar supplier has broken provisions in the law. This includes:

• false or misleading claims
• misleading conduct as to the nature and characteristics of products and services.

It is not for the general prohibition on misleading or deceptive conduct.

We may also decide that issuing court proceedings is the most appropriate way to achieve our compliance and enforcement objectives . We can take court action against a supplier for:

• making false or misleading representations
• engaging in misleading or deceptive conduct
• unconscionable conduct.

The court will determine liability and an appropriate penalty. It will depend on the circumstances of each individual case.

See also

Solar power for consumers 

Consumer rights and guarantees

Contracts

Warranties