Did you know that you do not merely have to accept the payment terms included in a proposal from a solar panel installation vendor?

Challenge them; they might surprise you.

You will be paying them tens of thousands of dollars of your hard earned money.

The past few days has seen us compare some of the details of five different solar panel installation vendor proposals / quotes we have received over the past nine months.

We are doing this to help educate you on what you can expect should you be thinking of having solar panels installed whether it is as part of the Ontario MicroFIT program or otherwise.

Solar Panel Installation Vendor A Credit Card Deposit

Yes, the first vendor would allow us (they offered before we even asked) to pay some of the cost on our credit card. This is great for those who use a credit card with a cash back option. In fact, this solar panel installation vendor would allow you to pay 50% deposit by credit card.

Here were the payment terms provided by this vendor:

• 30% deposit when the system is ordered (i.e. upon signing the contract)
• 40% when installation crew arrives on site for the first day of installation
• 30% remaining balance when installation crew finished the installation

Solar Panel Installation Vendor B -Full Payment Before Any Installation Work

Yes, very disappointing. This vendors terms were such that you have to pay them 100% of the quote before they even start to install the solar array.

Go ahead; guess why we did not choose this vendor. This might be acceptable to you; however, not to me and not with my money.

Here were the payment terms provided by this vendor:

• 10% to secure contract and begin building permit application process (i.e. upon signing the contract)
• 50% more to secure product
• 40% remaining balance due at delivery of product

Solar Panel Installation Vendor C 90%  Before Installation Starts

Here were the payment terms provided by this vendor:

• 10% upon signing the contract
• 80% more due at delivery of product
• 10% remaining balance due upon commissioning (i.e. when the system is installed, connected to the electric grid and starting to generate you money)

Solar Panel Installation Vendor D 60% Before Installation Starts

Here were the payment terms provided by this vendor:

• %10 upon signing the contract
• %25 Receipt of OPA Conditional Offer
• %25 upon order of equipment
• %40 OPA contract granted which is done I believe upon system commissioning

And, for the 5th solar panel installation vendor we didnt get sufficiently far to discuss payment terms

Which Solar Installation Vendor Payment Terms Do You Prefer?

Personally, I prefer as large a vendor hold back as possible.

Why?

I am a few believer that the more money the vendor is owed, the better they will perform.

So, guess why ultimately did not go with Vendor B?

I do like Vendor As terms allowing up to 50% to be paid by credit card (that is a lot of credit card points ). Yet, having to pay in full prior to commissioning bothers me.

If a vendor believes in their product and capabilities then stand by your service and wait. The ultimate validation that the installation was done accurately is when the solar panel array is commissioned.

Thats why I prefer Vendor Ds payment terms by a wide margin.

So, now you know that vendor payment terms can very widely.

Dont just accept the terms you are offered.

And, be sure to have at least 10% preferably 20% or 30% or even as was offered by Vendor D 40% hold back until commission of your solar PV system.

 

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Tags: Panel Installation, Payment Terms, Solar Panel Installation, Terms