Demand for high deposits
It's not uncommon to be asked for a deposit when ordering a solar power system. 10% of pre-rebate price is the industry norm, with the balance payable after installation. However, we've become aware of some companies demanding an 80% deposit and then telling consumers it will take 6 - 8 months for their system to be installed!
So much can happen in 8 months - prices can move downwards making the price paid today not such a good deal when the system is finally installed, rebate legislation can change and new technology may become available.
But probably the issue of most concern is: will the company still be around in 8 months?
What if currency exchange rates experience a similar situation to 2009 when the Australian dollar weakened dramatically and suddenly components cost 30% more. Will they be able to absorb that hike?
If the company goes bust, what happens to your 80% deposit?
This scenario also begs the question - what type of cash flow issues do these companies already have that they need to demand so much money up front?
Whatever the scenario, the demand for a high deposit coupled with a long lead up time until installation can be a very risky business for the consumer.
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