Home Depot solar energy seminar needs improvement
Reduce your electric bill: That was the promise that enticed me, and about 40 others, to my local Home Depot for a seminar on solar energy. Once there, Johnny, a retired electrician, promised to explain how a solar system works, whether it would work for us, how much the system cost, and how much we’d save on our electric bills. Unfortunately much of the information he provided was flat-out wrong, as Home Depot later admitted.
John’s company would do all the hard work—design the system; get all the required permits; fill out all the paperwork so that you would get the city, state, and federal tax credits and rebates; and install the system. But before you sign up, a roof assessment is needed. Your roof can’t be in shade. Trees might need to be cut down. If it’s your neighbor’s tree, you’re probably out of luck. Is there an apartment building or taller home casting a shadow over your roof? Sorry, solar panels won’t work for you either. And your roof should face south and be large enough to fit a system that would generate enough power to supply your electricity. That’s about 14 panels for the average home in metropolitan New York. The cost for this 3,000-watt system is about $30,000 including installation. All this information was accurate.
But, John explained, it wouldn’t really cost that much because of all the tax credits and incentives. The total investment, after the incentives would be about $7,000, he said. And homeowners would save nearly $1,000 a year on electric bills, according to the handout he distributed. The average payback time would be three to five years, he said. After that your electricity would be virtually free. When asked how efficient the panels were, John wasn’t sure, but said the entire system is 125 percent efficient.
Granted I’m no math whiz or electrical engineer, but those numbers seemed pretty optimistic, especially since BP Solar states that the efficiency of its panels is 12.9 percent (I checked when I got home). And Consumer Reports tests of solar hot water heating systems found payback periods of between 5 and 33 years. So I contacted Home Depot, which runs the program and guarantees the system for 10 years, including parts and labor. “That’s not accurate,” said a Home Depot spokesperson. “Efficiencies and payback time differ from location to location and we prefer our reps not give a specific number.”
In a written statement, Home Depot called the actions of this rep “inexcusable” and stated “he is no longer affiliated with Home Depot’s solar program.” It also said, “The Home Depot holds its third-party service providers accountable for providing the most up-to-date and accurate information about the products they sell.” It went on to say, “In response to this situation, we are working with all of our solar service providers to ensure they are providing accurate information about their solar power systems.”
What John had right was the payment plan: 25 percent when the site survey determined that my roof was a viable candidate; 25 percent more when all the government paperwork was completed; 25 percent when my system was ordered, and the final 25 when it was delivered. Home Depot does require full payment before the system is installed, unless your state doesn’t allow contractors to take payment-in-full before work is completed. However, our general advice is to hold back the last 5 to 10 percent of the money until the job is completed.
And never make the final payment until you have obtained signed mechanic's-lien waivers or releases from all subcontractors and suppliers. These are basically receipts acknowledging payment for goods and services that free you from third-party claims on your property in the event that you pay the contractor but he or she doesn't pay subcontractors or suppliers.
http://news.consumerreports.org/home/2011/04/home-depot-solar-seminar-and-ratings-of-solar-water-heaters.html