Oregon Solar Customers Left in the Dark: A Warning for the Renewable Energy Boom
Brandon Payne, a Hillsboro, Oregon resident, embarked on a journey to lower his electric bills last year by investing in solar panels. His dream turned into a financial nightmare when Prolectric LLC, the company he hired, abruptly closed its doors, leaving him and other customers with unfinished work and significant financial losses. Payne’s story, and those of five other Prolectric customers, highlight a growing concern as demand for solar energy surges: the potential for unscrupulous contractors to exploit homeowners.
The Rising Tide of Solar Complaints
Six customers filed complaints with the Oregon Department of Justice, alleging that Prolectric took roughly $115,000 in deposits for solar projects and then vanished without completing the work or providing refunds. Payne alone paid a $12,000 deposit, representing his entire cash savings. This isn’t an isolated incident. While the solar industry is booming, the influx of new companies and the complexity of installations create opportunities for fraud and substandard work.
What Went Wrong with Prolectric?
Zachary Freerks, one of Prolectric’s owners, attributed the company’s collapse to issues with subcontractors, a falling out with a former business partner, and a lack of funds. He stated the company spent all available money on subcontractors, employees, overhead, and cash advance loan interest. Peter Shchepin, another customer, received panels but was then hit with a $48,555 lien from Howard Supply Co., the panel provider, because Prolectric failed to pay its supplier. Freerks claimed he attempted to rectify the situation but was unable to do so.
The Lien Problem: A Hidden Danger
Shchepin’s case illustrates a particularly troubling aspect of incomplete solar installations: mechanics liens. When a contractor fails to pay its suppliers or subcontractors, those parties can place a lien on the homeowner’s property, potentially leading to foreclosure if the debt isn’t resolved. Homeowners are often unaware of these underlying financial arrangements and can be caught completely off guard.
Beyond Prolectric: Industry Concerns
Andrew Doyle, owner of Unity Solar, confirmed that Prolectric owed his company money for completed projects. Raymond McCue, a former Prolectric business partner, disputed claims of misleading Freerks regarding company funds. The Oregon Department of Justice has declined to comment on how it will address the complaints against Prolectric.
Protecting Yourself: A Homeowner’s Guide
The Prolectric case serves as a stark warning to homeowners considering solar installations. Here’s how to protect yourself:
- Verify Licensing and Insurance: Ensure the contractor is properly licensed and insured in Oregon.
- Check References: Contact previous customers and inquire about their experience.
- Get Multiple Quotes: Compare bids from several contractors.
- Review the Contract Carefully: Pay close attention to payment terms, project timelines, and warranty information.
- Don’t Pay Large Upfront Deposits: A reasonable deposit is acceptable, but avoid paying the entire project cost upfront.
- Research the Company’s History: Check with the Better Business Bureau and online review sites.
- Understand Lien Waivers: Ask your contractor for lien waivers from subcontractors and suppliers to ensure they have been paid.
Pro Tip:
Before signing a contract, ask the contractor for proof of a surety bond. A surety bond provides financial protection to homeowners if the contractor fails to fulfill their obligations.
FAQ: Solar Installation and Your Rights
- What is a mechanic’s lien? A legal claim against your property for unpaid debts related to construction work.
- How can I avoid a lien on my property? Ensure your contractor pays their subcontractors and suppliers. Request lien waivers.
- What should I do if a contractor abandons a project? File a complaint with the Oregon Department of Justice and consult with an attorney.
- Is solar worth the investment? Solar can be a cost-effective investment, but it’s crucial to choose a reputable contractor and understand the terms of your contract.
The demand for renewable energy is only expected to grow, making it even more important for homeowners to be vigilant and informed when choosing a solar contractor. The experiences of Brandon Payne and others serve as a cautionary tale, emphasizing the need for due diligence and consumer protection in the rapidly expanding solar industry.
Did you know? Oregon offers state and federal tax credits for solar installations, potentially reducing the overall cost. Check the Oregon Department of Energy website for details.
Have you had a positive or negative experience with a solar contractor? Share your story in the comments below!
