Solar panel modules await delivery to a contractor. (The Gazette)

Out-of-state solar panel installers post ads rife with misleading information about Iowa’s solar tax credit and charge customers thousands of dollars who see no change in their utility bills electricity.

The Iowa Attorney General‘s Office is currently investigating 15 solar panel companies after an increase in consumer complaints.

Often the companies are located in other states and hire local contractors, according to Lynn Hicks, chief of staff for the attorney general‘s office.

“The kind of heartbreaking things we hear is that people have paid a lot of money and they still don’t have solar power in their homes,” Hicks said.

From 2019 to 2021, 15 complaints about solar energy systems were submitted to the Iowa Attorney General‘s Consumer Protection Division.

In 2022 alone, the division received 40 complaints.

Among the complaints are misleading advertisements informing consumers that if they install solar panels through a certain company, the consumer will automatically qualify for the state tax credit.

Hicks said some ads even showed a woman claiming to be Governor Kim Reynolds guaranteeing the credit.

In 2021, the Iowa Legislature adjourned for the year without extending the Iowa Solar Tax Credit. This resulted in 750 Iowans losing an average of $3,000.

In June, the real governor of Iowa signed a modified version of the solar energy tax credit.

The legislation allowed the Department of Revenue to review claims previously denied due to expired benefits.

It also reopened and extended the installation time.

“We’re just letting people know there’s no guarantee you’ll get a tax credit,” Hicks said.

“If you’re relying on these tax credits to get you that, don’t because there’s no guarantee you’ll get the tax credit.”

Hicks said that when companies are out of state, the Iowa attorney general’s office can either subpoena them or work with other states’ attorney general’s offices.

The Iowa Attorney General’s Office is currently meeting with and collecting responses from solar energy companies that generated complaints.

Hicks said the survey was not intended to discourage people from buying solar panels, but he recommended consumers look to personal referrals rather than online advertisements when shopping for solar panel companies. facility.

“There are good companies there. I just encourage people to do their homework,” Hicks said.

“You can check reviews online, if you know anyone else who has solar panels talk to them…. We just encourage people to do their due diligence.

There are many complaints

Mark McDonald and his wife, from Chariton, decided that solar power would be a good way to lower their electric bills as they headed out of state for the winter months.

In August 2021, McDonald’s contacted a vendor of what was then called SunPro Solar System to make the switch. ADT recently purchased the company.

McDonald’s first mentioned to the vendor that they needed solar power on December 1 before they left. The salesman told McDonald’s that wouldn’t be a problem.

In November, the signs were placed on McDonald’s house after he complained to the company about the impending deadline.

“I think they just came in here and slapped them on the roof thinking, ‘Oh, that’ll shut him up for a while,’ and that’s it,” McDonald said.

McDonald had scheduled his energy company to cut off its power on December 2, expecting the project to be completed. Instead, he got a call from Alliant Energy saying the solar panel company had never hooked up the panels to the McDonald’s house.

When McDonald returned home in March, the company agreed to complete the project upon his arrival. Even though the installers arrived at the scheduled time, McDonald said he still did not have solar power connected to his home.

Every time the company came, McDonald said the workers were helpful. The issues centered around communication with project managers.

After losing count of how many new project managers he spoke to, McDonald said he heard the same thing over and over again – in 20 to 30 days the project will be finished.

“Well, they tell me they can see what’s been done,” McDonald said. “But at the same time, a project manager says, ‘Well, we need pictures of the signs,’ and I’m like, ‘Ma’am, that was done four weeks ago. Can’t you say that about your project information? »

“So apparently there’s a bad mess up there too.”

At the start of the project, the McDonalds paid a deposit of $10,000. They then paid an additional $20,000 to have the panels placed on their roof.

The contract signed by McDonalds stipulated that the solar panels would be operational within six months of the date of sale.

Eleven months later and with no change on their electricity bills, McDonald’s said they were frustrated.

“So we’ve invested $30,000 and we’re not getting any returns,” McDonald said.

“It could have sparked interest. We’ve always had electric bills since everything’s been going on. So yeah, we’re a little confused.

The McDonalds contacted the Iowa Attorney General’s office three weeks ago with their complaint. They are not planning any legal action at this time.

“It’s been a nightmare,” McDonald said. “We should have done our homework and looked at the reviews.

“We are not the only ones who have had problems.

Complaints vary

Some of the current complaints may be due to supply chain issues, according to the Iowa Attorney General’s Office.

The office is still investigating various complaints. Reports range from improper installations and faulty solar panels to property damage at the time of installation.

There are cases in which the solar panel companies have not provided the contracted services as a whole.

Clean.Tech is a solar panel company that is now bankrupt, with 13 complaints under investigation.

“If a business goes bankrupt or declares bankruptcy, unfortunately, the consumer feels like any creditor and stands in line for money,” Hicks said.

“But they should definitely file a complaint with us and we’ll look into it.”

Because the investigation is ongoing, the attorney general’s office could not provide a timeline for when the investigation will be completed.

“We’re not saying solar power is a bad energy source or isn’t a good alternative,” Hicks said.

“And we’re not saying that all companies are engaged in this conduct, but we just want to send a warning that this is what we get, this is what we hear.”

This article first appeared in the Iowa Capital Dispatchwhich is part of States Newsroom, a national 501(c)(3) nonprofit organization supported by grants and a coalition of donors and readers.