Solar Installer - Upfront Payment

[powerkmac]

Hey guys, with my experience in dealing with contractors, particularly installers or electricians, it's generally a red flag when the installer/contractor asks for a deposit or payment upfront. Obviously, a solar installer and seller is a bit different, but still a contractor none-the-less. Their main reason for wanting a deposit / upfront payment is to cover the costs of permitting.

What is your take on this? Is it the norm for these guys to request a upfront payment or deposit?

[emartin00]

I don't think a deposit up front is unreasonable. I definitely wouldn't be paying more than 50% upfront though.

[powerkmac]

I don't think a deposit up front is unreasonable. I definitely wouldn't be paying more than 50% upfront though.

Thanks. They are certainly not asking for anything close to 50%. It's more like 5%.

Based on experience, I'm leery of contractors taking the deposit and bailing... it ends up being a mess and usually costs more in legal fees than what the deposit is worth, so those who game the system keep their requirements low for the deposit.

Does anyone know if the same laws for contractors apply to Solar Installers?

[foo1bar]

Does anyone know if the same laws for contractors apply to Solar Installers?

I would think so - but laws for contracotrs vary by state so would depend on your state.

For me here in CA, any company doing solar installs IS a contractor and should have their contractor license number on almost anything they hand to a prospective customer.
I know they're required to have the license number on any ads. Generally they just put it on anything/everything - business cards, stationary, proposals, etc.

BTW, permit costs are not much - mine was ~$300. So I wouldn't use that as justification for much of a deposit.
OTOH I think a small deposit is reasonable (ex. $1k on a $21k job)

[azdave]

If you don't trust them enough to front them 5% to get started and to show good faith on your part then why are you trusting them to do the whole install?

I went with a locally owned, highly rated installer with a 40-year history in electrical work in Arizona and over 10 years in solar. After we agreed on a purchase price I then offered them 50% up front and got a really nice discount for doing so but you have to trust them quite well to do that. To top it off they let me make all payments on credit cards so I got all the perks and purchase protection and paid off the CC bills as soon as they arrived.

[cebury]

In CA article 7159.5 of the Business and Professions code

7159.5. This section applies to all home improvement contracts, as defined in Section 7151.2, between an owner or tenant and a contractor, whether a general contractor or a specialty contractor, that is licensed or subject to be licensed pursuant to this chapter with regard to the transaction.

(3) If a downpayment will be charged, the downpayment may not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever is less.

(4) If, in addition to a downpayment, the contract provides for payments to be made prior to completion of the work, the contract shall include a schedule of payments in dollars and cents specifically referencing the amount of work or services to be performed and any materials and equipment to be supplied.

[Sunking]

Run away as fast as you can. It means they have no credit with suppliers.

[Samsolar]

Run away as fast as you can. It means they have no credit with suppliers.

Highly doubtful that 5 percent deposit would have any meaningful impact if a vendor truely has no credit.

[compchat]

No deposit

My contractor asked me to pay the permit fees. That's it. I think they were $50.00 to the city.

As to payment I pay 1/3 at the beginning of the job (when the equipment arrives), 1/3 in middle of job and final 1/3 after comission. That sounded fair to me.

[cebury]

I guess he was asking what other Solar Installers on this forum do, not what us customers think hehe.