Solar panel finance agreements are among the most commonly mis-sold financial products in the UK. If you were promised unrealistic energy savings, faced high-pressure sales tactics, or weren't properly assessed for affordability, you may have grounds for a complaint.
Common Solar Panel Finance Mis-Selling Tactics
1. Exaggerated Energy Savings Claims
Many consumers are told their solar panels will generate enough electricity to eliminate their energy bills entirely. In reality:
- Overestimated generation: Salespeople often use optimistic assumptions about sunlight hours and panel efficiency
- Ignored maintenance costs: Panels require cleaning, inverter replacements, and insurance
- Feed-in tariff confusion: Changes to government schemes mean returns are often much lower than promised
- Unrealistic payback periods: Claims that panels will "pay for themselves" in 5-7 years are often false
2. Inadequate Affordability Checks
Finance companies must assess whether you can afford the repayments. Red flags include:
- No request for proof of income or expenditure
- Approval despite existing debts or poor credit history
- Monthly payments that exceed 25% of your disposable income
- No discussion of what happens if your circumstances change
3. High-Pressure Sales Tactics
Mis-selling often involves:
- Limited-time offers: "This price is only available today"
- Emotional manipulation: Pressure to sign immediately without time to consider
- Incomplete information: Hiding the true cost, interest rate, or contract length
- Misrepresentation: Claiming government backing or endorsement that doesn't exist
⚠️ Important: The 14-Day Cooling-Off Period
For credit agreements signed at home or off-premises, you have 14 days to cancel without penalty. If you weren't told about this right, the cooling-off period may still be open.
Your Legal Rights
Consumer Credit Act 1974 - Section 140A
This powerful protection allows courts to declare credit agreements "unfair" if:
- The relationship between you and the lender is unfair
- You were mis-sold the underlying product (the solar panels)
- The terms or the way the agreement was enforced is unfair
Remedy: Courts can reduce your debt, cancel the agreement, or order refunds of payments made.
Consumer Credit Act 1974 - Section 75
If you paid by credit card (even just the deposit), the card company is jointly liable with the solar panel company for:
- Breach of contract
- Misrepresentation
- Faulty goods or services
Applies to: Purchases between £100 and £30,000
The Complaint Process
Step 1: Complain to the Finance Company
Write a formal complaint letter including:
- Your account number and agreement details
- Specific mis-selling tactics you experienced
- Evidence: sales documents, correspondence, energy bills
- What you want: refund, compensation, contract cancellation
Deadline: Finance companies must respond within 8 weeks.
Step 2: Financial Ombudsman Service
If the finance company rejects your complaint or doesn't respond:
- You can escalate to the Financial Ombudsman Service (FOS)
- FOS is free and independent
- They can award up to £415,000 in compensation
- Their decisions are binding on the finance company
Time limit: 6 months from the finance company's final response
Step 3: Legal Action (if needed)
For claims over £415,000 or if FOS doesn't uphold your complaint, you may need to:
- Seek legal advice from a solicitor specializing in consumer credit
- Consider a Section 140A court claim
- Join a group litigation if one exists for your solar panel company
💡 Evidence You Should Gather
- Original sales documents and quotations
- Finance agreement and all terms & conditions
- Energy bills before and after installation
- Actual vs. promised energy generation data
- Any correspondence with the solar company or finance provider
- Records of affordability checks (or lack thereof)
Typical Compensation Amounts
Successful solar panel finance complaints have resulted in:
- Full refund: All payments made plus interest (common for serious mis-selling)
- Partial refund: £5,000-£15,000 for affordability failures
- Contract cancellation: Remaining debt written off
- Distress and inconvenience: £200-£1,000 additional compensation
- Credit file correction: Removal of adverse marks
Time Limits
Important: You generally have 6 years from the date of the agreement (or 3 years from when you discovered the problem) to make a claim. Don't delay.
Need Help With Your Solar Panel Finance Complaint?
We draft professional complaint letters within 48 hours and guide you through the entire process.
Start Your ComplaintFrequently Asked Questions
Can I complain if the solar panel company has gone bust?
Yes! If you have a finance agreement, you can still complain to the finance company. They remain liable even if the solar panel installer is no longer trading.
Will complaining affect my credit score?
No. Making a legitimate complaint won't harm your credit score. If your complaint is successful, any adverse marks related to the agreement may be removed.
What if I've already paid off the finance?
You can still claim a refund of payments made if the agreement was mis-sold, subject to the 6-year time limit.
Do I need a solicitor?
Not initially. Most complaints can be handled through the finance company and Financial Ombudsman Service without legal representation. We can help you draft the necessary letters.
Next Steps
If you believe your solar panel finance was mis-sold:
- Gather all your documentation
- Write a detailed complaint letter to your finance provider
- Keep records of all correspondence
- If rejected, escalate to the Financial Ombudsman Service
- Consider professional help if the process feels overwhelming
Remember: Finance companies count on consumers not complaining. Don't let them get away with mis-selling. Your complaint could result in thousands of pounds in compensation and help prevent others from being mis-sold.