05 MAY 2020

Loans for Solar Panel Systems – What to Know

  • 308

Over the years, did you know that more than 2,000 complaints have been filed to the Financial Services Ombudsman for mis-sold loans of solar panel systems? This is primarily because many households in the UK claimed that the installed solar panel systems they’ve loaned wouldn’t deliver the expected financial returns as earlier as promised.

In this article, we will share with you the recent development of the filed complaints on mis-sold solar panels in the UK.

 

Filed complaints on mis-sold solar panels

Many homeowners considered installing solar panel systems because they were under the impression that this technology would generate efficient power and help them reduce their electricity bills in the long run. The problem, however, is that the solar panel systems are costly, seeing that they can cost up to £15,000. For this reason, many homeowners resorted to taking loans to finance the solar panel systems. Barclays, for one, sold financing for these systems from 2011 to 2015.

Quite recently, several homeowners have filed complaints with the Financial Services Ombudsman, claiming they have been misled about the financial returns they’ll get from the loaned solar panel systems.

 

A perfect example of a personal complaint

One personal complaint came from Brian Thompson from Gateshead. He told BBC that he has a ten-year loan with Barclays after the financial institution funded his solar panel system.

Thompson said that PV Solar UK convinced him that a solar panel system would help him put money toward his pension. However, it didn’t match what he was told to expect. As a result, he even had to use his savings to make his payments on the loans. To that end, the complaint led PV Solar UK into liquidation back in 2017, and Barclays offered Thompson some compensation.

 

What the experts have to say

In defense, My Planet went into administration in 2016, where its director justified that the computations for the predicted income from the solar panel systems were based on a stringent methodology.

He conceded to the fact that a handful of factors might be impacting how the solar panel systems actually perform in real life. Because of this, the financial forecast earlier made by lending institutions weren’t accurate enough.

 

How lenders of solar panels remedy the situation

Because of various complaints, lenders find ways to remedy the situation and pacify the complainants. Barclays, for instance, has recently set aside £38.5 million to handle claims from solar panel owners. The company wants to make sure that their borrowers are happy with the financial services provided, which us why they promise to handle the complaints properly and review each case individually.

 

Conclusion

It cannot be denied that the Ombudsman has quite received a wide range of complaints from several homeowners. All these complaints boil down to the fact that they’ve been mis-sold solar panels.

If you are one of the victims, it’s your right to file a complaint as a consumer. Ultimately, you ought to get what you were promised, and that also involves the installation of solar panels and the loan you obtain from a lending institution.

We specialize in consumer mis-sold goods, services, and insurance in the UK. If you’ve invested in a solar panel, have taken a loan, and now want to file a complaint, get in touch with us today to see how we can help! Alternatively, Apply Now with our quick online form.

Consumer Reclaim Ltd is regulated by the Financial Conduct Authority in respect of regulated claims management activities, reference number: 835212. Registration is recorded at: https://register.fca.org.uk. Consumer Reclaim Ltd is registered in England and Wales, Company Registration number: 07223077. Information Commissioner Office number: ZA176000. VAT number: 144 4752 12