OPPD, Local Solar Power Contractors Warn Of Misleading Tactics Practiced By Some Companies

OPPD, Local Solar Power Contractors Warn Of Misleading Tactics Practiced By Some Companies

Justin Peacock saw firsthand several solar energy companies trying to get customers to sign up.

Peacock, an electrician who installs solar panels, was with a friend who received a $60,000 tag to install a solar panel at home that Peacock says "should have been half the size."

"And then he gets angry because the guy didn't sign the contract right away," said Peacock, co-owner of Delta Electric in Ashland.

Other local electricians have reported similar behavior from businesses who may not be on site, often using high pressure sales tactics, door-to-door visits and phone calls.

The Omaha Food Service District recently issued a press release urging its customers to exercise caution. Among other tips, OPPD advises potential solar buyers to research the company and get multiple quotes from reputable solar companies before signing any deals.

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In a statement, OPPD said some companies falsely claim they are "affiliated with OPPD."

OPPD product manager Sam Heuser said OPPD does not work with solar panel installers. OPPD has a "Solar Business Partners" list of eight Nebraska-based solar companies that Hueser says "tell the truth to customers and are honest in their sales tactics." Lincoln Electric System has a similar partnership program with 12 solar companies in its network.

Michael Shonka, owner of Solar Heat and Electric in Omaha, has advocated for such an affiliate program in Omaha. Shonka said the program helps potential clients see who deserves respect and who doesn't.

Suspicious companies, Shonka said, "are doing the right thing by trying to study their market and fully understand what's going on in the market."

"We literally had an influx of foreign companies," he said. “And they're just simple options for these direct marketing campaigns. The Business Partnership Program was a response to trying to mitigate some of the collateral damage our members are suffering.

Dale Luke, owner of Great Plains Renewables in Gretna, was directly threatened by one of these tactics. He said the company took its brand name, placed it in advertisements and directed people to the company's website. This caused Lake and his attorney to desist from sending a letter to the company. The company is still trying to buy the Great Plains Renewables name, he said.

"We're business partners," Luke said. “A lot of positive things happen to us in what we do. They're just trying to be on our tails.

Also, some companies say that customers who install solar panels will no longer have to pay an OPPD bill. Buyers of OPPD solar systems still have to pay a fixed monthly maintenance fee that covers things like infrastructure maintenance and upgrades.

Hueser said it was too expensive for customers to go completely offline.

“You need a lot of solar or wind energy and a lot of batteries. Also, it needs a backup generator, diesel fuel, propane or something like that,” he said. "It's really reserved for customers who venture off the beaten path."

Local builders said they told some potential clients they weren't good candidates for solar because of their home's location and features. A prerequisite for efficient solar power generation is that customers have sufficient south-facing roof areas. The east and west areas under the roof can work, but the north doesn't. There should also be no treetops or other obstacles.

OPPD's advice comes as both utilities and solar builders talk about a growing demand for solar power systems. OPPD received 543 applications in 2021 and 835 applications in 2022 from customers wanting to connect new solar panels to the grid. Hueser said the OPPD will receive about 500 applications by the end of this year.

Most solar installers can qualify for a $2,000 OPPD rebate and a 30% federal tax credit under the Inflation Reduction Act, which went into effect last year. The tax credit covers installations that can be installed by 2032.

According to Heuser, when people decide to install solar panels, they need to keep one thing in mind.

"If it sounds too good to be true, it probably is," he said.

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