REC Solar: Payment BEFORE completion

System

I searched this site for "REC" and came up with no hits, but I did find this thread:
Signed contract on 6KW system last week. Had site eval today. I just wish the thread author had posted a followup to say how his system was doing.

I'm in Fresno, CA, and REC Solar is installing a 5.7 Kw system on my roof as I write.

They seem like a very good company, they installed a system for my neighbor down the street a year ago, and they have nothing but praise for the company.

My only issue is that they want payment in full, minus the ~7k rebate from PG&E, tomorrow, when they are due to install the first panels.

This seems unusual to me -- getting paid up front before all the work is completed, before the city inspectors come and approve the installation, and before PG&E even checks it out and signs off. It has red flag written all over it.

But my salesman says it is a common practice in the industry.

I realize they have big costs with the hardware, but I would be much more comfortable paying a percentage now, and a final payoff when the system goes on-line satisfactorily.

I'm sure y'all will warn me off, but I'm likely going to hand them the check for $32k tomorrow.

What I would like to know is if others have heard of this practice with other installers.

I'll be interested in your replies, and I'll be sure to let you know how it works out.

Thanks!

dwh

Re: REC Solar: Payment BEFORE completion

When I was working for a contractor (electrical) the common practice was that payments were made on milestones like "passed rough inspection", "passed final inspection", and so forth.

It was also accepted practice for the customer to hold back the final 10% of the contact payment until the job was completely finished.

If it sounds fishy (and it does) then it usually fishy. Check your contract under payment terms.

Solar Guppy

Re: REC Solar: Payment BEFORE completion

That's not wise, at most I would give them 70% of the amount they are due for the total project, at the end of the day if all materials are on site and installed.

Sounds like they are dealing with cash flow issues, 1 year ago things were hot, now its a real struggle out there.

Do what you feel comfortable with, if the don't like it, they have the option not to do the installation. Your contract though should have the payments spelled out clearly, does it not?

System2

Re: REC Solar: Payment BEFORE completion

dwh wrote: »

...It was also accepted practice for the customer to hold back the final 10% of the contact payment until the job was completely finished.

If it sounds fishy (and it does) then it usually fishy. Check your contract under payment terms.

It is written into the contract -- just found it. The "Final Payment" is the $7k rebate from the "Rebate Program Administrator."

If you read what Sorka wrote (in the thread I referenced above) on 6/7/08:

Since REC solar carries the rebate, the full payment is due on the first day of installation. Ultimately I was fine with this... ...REC solar is a big corporation though, I doubt they're going to leave me in a lurch.

It looks like that has been their practice for some time.

The contract also requires that I sign over the rebate to REC Solar. So it appears that I still hold the strings on that $7k amount, so the system should already be working by the time that event comes along.

newenergy

Re: REC Solar: Payment BEFORE completion

Contract law for homeowners in California is that the contractor can only get 10% or $1000 deposit, which ever is lower. After that they can only bill for services rendered. Upon delivery of the material they can charge for that material. In this case it's feasible that the payment you are making at that time is for the material. The rebate constitutes their installation costs and profit.

It might be a little bit of a stretch on their part, but it's not entirely unjustifiable.

System2

Re: REC Solar: Payment BEFORE completion

newenergy wrote: »

Contract law for homeowners in California is that the contractor can only get 10% or $1000 deposit, which ever is lower.

Yes, those words are in the contract.

Upon delivery of the material they can charge for that material. In this case it's feasible that the payment you are making at that time is for the material. The rebate constitutes their installation costs and profit.

It might be a little bit of a stretch on their part, but it's not entirely unjustifiable.

Well, that does seem fair then. Their labor is not much of the expense -- maybe 6 man-days. So all the rest is the hardware being installed.

I handed over a check this morning for $32k (WOW!). The workmen have already installed 21 of the 24 panels and the inverter box and switches. They were pulling wires this morning. The project will be all but complete by the end of today.



I'll be topping that tree this weekend.