Last month, the national association representing many of America’s largest rooftop solar companies released a study finding that not enough minorities are being hired by the industry. On the one hand, I sincerely appreciate the industry’s candor and willingness to admit its shortcomings. On the other hand, I worry that some rooftop solar companies hire minorities only to convince other minorities to make destructive financial decisions.
The rooftop solar industry in the United States is one that is fraught with deception and fraud perpetrated on unsuspecting customers. The most common scam plaguing the industry involves shady salespeople telling customers that they will see savings on their electrical bills if they just install rooftop solar panels. All too often, those savings don’t pan out.
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After I first raised this criticism, the industry’s trade group at first tried to intimidate me, then apologized. I have since met with Abigail Ross Hopper, the CEO of the Solar Energy Industries Association, along with members of her team to discuss how the industry could do more to eliminate bad actors who rip off consumers.
I believe that Ms. Ross Hopper and others at SEIA do sincerely want to eliminate the fraud associated with the solar industry. The problem is that SEIA is only a trade association. Its member companies at times continue to target the least economically sophisticated members of our society with false promises of lower electricity bills.
Consider this recent story from the Miami Herald. “An octogenarian and nearly blind, Julnor Jean was a soft target for a salesman with a creative finance gambit: Install solar panels now, pay them off over 20 years through his yearly taxes, and effectively have an energy bill near zero.” In the end, the rooftop solar panels turned out to be a bad deal for the Haitian immigrant, who speaks only broken English. In fact, Jean had to pay $2,000 per year for a loan attached to his property tax bill as a result of this installation. This meant any cost savings from the solar panels would essentially be wiped out.
To make matters worse, the solar company that installed the panels on Jean’s roof, Group Solar USA, was not even licensed to operate in Florida. So the panels are inoperable. You might not be surprised to learn that Group Solar USA has since vanished.
It is hard to believe that Jean is the only victim of this specific scam operation.
I believe that fly-by-night “companies” like Group Solar USA are operating all across the nation. And I believe that SEIA can do a better job at regulating its industry and censuring those who attack the most vulnerable — the elderly, those with limited language skills, and the poor who are being sold a bill of goods because glib sales “professionals” try to make nonsense into a sales pitch.
Consider the case, from Arizona, of a young pastor and his family. They were bilked out of $24,000 for solar panels that never appeared. The fake company, which has ripped off numerous Arizonans, is called AEOS Solar Energy.
Or consider this situation in Colorado, where an older woman gave InnerSol, Inc., $13,000 for solar panels she never received. She told a news station: “I’m devastated. I feel so betrayed.” Shady rooftop solar companies don’t just rob people of their savings, but often their dignity as well. How sad.
It’s not just small rooftop solar companies that are ripping people off. SEIA member Vivint Solar Inc. was recently accused by the New Mexico Attorney General of ripping off customers. According to a press release from the AG’s office: “Vivint binds New Mexico consumers into 20-year contracts that require consumers to purchase the electricity generated by a solar system placed on their homes at rates that increase by over 72% during the 20 years … [and] Vivint deploys door-to-door sales managers to engage in high pressure sales techniques and procedures designed to mislead consumers.”
And to let you know where these people are coming from, last year, Vivint employees were accused of building a racist fort in their office, in order to intimidate their black colleagues. To be clear, Vivint is not some small-time shop. The Utah Jazz of the National Basketball Association (NBA) play in the Vivint Smart Home Arena.
Maybe SEIA is sincere in stating that rooftop solar companies should hire more minorities. But if these folks don’t clean up their rancid act, their token commitment to more minority hires will only mean they are better able to take advantage of more minority customers. It’s an age-old practice by scam artists in all sorts of shady businesses to use black or brown salespeople to gain the trust of other black or brown customers, only to turn around and rip them off.
In short, the solar industry can be quite sordid, despite hiding behind the clean, green facade of environmentalism. Its predatory practices exploit old folks, black folks, and poor folks. SEIA can release all the reports they want to release, but they need to change their ways, not just their talk.
Dr. Julianne Marie Malveaux is an economist, author, and businesswoman. She served as the 15th president of Bennett College for Women.
CORRECTION: A previous version of this piece incorrectly spelled the last name of the SEIA president and CEO. It is Abigail Ross Hopper, not Harper. The Washington Examiner regrets the error.
