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Clean Energy Scams and What To Do About Them

Scott Sklar, President, The Stella Group
August 25, 2009  |  9 Comments

As a clean energy installer, it really infuriates me when I read inflated and bogus marketing claims put forth by obvious scammers. What do you think we, as an industry, should do about this? Why don't you expose them? – Bill C., Clean Energy Installer

Bill, this isn’t the first time I’ve heard this question and now that we are in a clean energy renaissance, I expect it won’t be the last.  To others out there, please feel free to send me examples by emailing solarsklar@aol.com along with any questions for further columns. To answer Bill’s question, I’d like to address both the installer and the consumer.  Here’s my double response:

Dear clean energy business: If you see a store being robbed, you call the police. If you believe you are seeing a fraudulent business making bogus claims, drop a note to your State Attorney General’s Office. Some states have consumer offices or trade commissions that deal with deceptive advertising.

The best notification is a short note including a scanned PDF of the ad or promotional materials with a letter from your company saying you noticed this, have been in the clean energy business for X years. Include the URL to a publication or report that addresses an aspect of their claim. If you have a state SEIA, ASES or other clean energy group in the state, CC them as well.

Dear consumer: If the pitch is “too good to be true” it probably is fraudulent. If a company is offering an energy system at half the cost, and claiming twice the output, it is probably neither.  Collect from the sales rep three references of installations with pictures in your area, and call them and ask questions — ask them if you can “come buy and look at the system.”

If the company claims it’s a member of a trade group, go to the web site of the group and check. If the company claims that the product is certified by a national or state entity, get on their web site or call to confirm. Solar tax credits, for instance, are conditional on equipment certifications.

On energy efficiency, I am even more concerned because hundreds of millions of dollars are being dispersed through state grants. Many states through their energy, housing and community action agencies have excellent training and great programs to insure proper installations for low-income residents. But some private sector companies seem to be taking advantage of middle-income residents, sometimes unintentionally, by providing piece meal services.

I am seeing selective use of insulation or the purchasing of expensive windows with minimal insulation in the walls. So I am appealing to the many full service energy efficiency providers to team up and be more proactive in watching your market and insuring consumers are educated. You may need to go to your local municipal, county or state housing, energy, environmental or consumer education offices to urge them to provide information by web, posters and even public seminars so consumers know their options, and look at energy efficiency comprehensively.

A family in my neighborhood in Northern Virginia insulated their house walls but not their attic and had single pane windows without storm windows. I asked them, when are they going to address the windows.  Their response was “we like them as they are, they still have the old glass.” R-1 windows and an R-5 attic with R-30 walls will save some energy, but not a lot.

It's OK to make incremental improvements in high value energy efficiency — but only as long as it is understood that the process must be continued to have real economic impact.

I am also seeing some rather comical PV and small wind claims that just can’t be true — usually by new companies with no commercial track records. What is most surprising to me are the calls and emails I receive from around the country by potential customers asking about new technologies and new products.

Many times when I go to the websites of these “new” companies, I find shoddy web productions, with typos and pictures of supposed installations (but not of their product). It would seem to me, these would be "dead giveaways" that would certainly create concern — but unfortunately not with many enthusiastic customers!

Now I tried lots of new clean energy products on my home and two office buildings to be sure — but I have done so understanding there was some risk involved and some kinks to work out. So be it.

Today, however, I am seeing more and more regional excesses, which means that it’s time for all of us in the community to be vigilant, provide thoughtful input to the authorities and spend more time for outreach to educate the community. 

So I urge all of you in the clean energy business to participate in more educational events this summer and fall.  With every great opportunity there are challenges and burdens – let’s all keep our eyes open and be part of the solution.

Have a question about renewable energy or energy efficiency for Scott Sklar?  Email solarsklar@aol.com.

9 Comments

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ANONYMOUS
September 16, 2009
You only need to look to Massachusetts to see the down side of renewable energy .In the past 5-10 years the Masasachusetts Technology Colaborative,MTC ,pushed out reports and studies with only favorable facts for land based commercial wind turbines.Several citizens groups on the SouthCoast of Massachusetts fought the 400 foot turbines as they were within 600 feet of homes in residentially zoned areas.In one study put out by the MTC it reviewed important bird areas ,IBAs.The report only had a question mark next to" any important IBAs". The chief nesting area of the Roseate Terns in North America was located 1/3 of mile from the turbine location .

The citizens group was in preparation to take the town,state and MTC to court over the studies done on the SouthCoast towns Mattapoisett and Fairhaven .Both towns stopped the installation because of "economic reasons".

We now have a governor who is bent out of shape because these residents went to court against the wind turbines in their backyards. Governor Patrick is trying to get the Massachusetts Wind Energy Siting Reform Act through the legislature before the citizens understand what the act does. This act sites commercial wind turbines iin our backyards ,state parks, housing developements with open space and anywhere the governor sees fit.

Anyone who reads this response should google these words to see what the SouthCoast of Massachusetts is going through and write a story about that :

Google; Attorney General Martha Coakley Former State Rep Mark Howland Wind Turbine Hawaii Freetown Fire

This is an interesting story of a former state rep who went into the wind turbine business. After you google thev words above ,ask why are we NIMBYs ?
Jonathan Cole
Jonathan Cole
August 28, 2009
The obvious scams are one problem that in past solar cycles has caused the industry great harm, but the insidious problem of installers being poorly trained and system designers being unschooled in the real world of corrosion, dirt, insects, and other natural impediments to a properly performing system is even more of a problem.

If you install huge array fields, you cannot economically access the panel surfaces for cleaning. Ditto, if the arrays are installed on very steep roof surfaces. Panels must have easy access to the junction boxes for trouble shooting. They cannot be solidly bolted to a steep roof in large arrays with no access. Mounting systems must be designed to last the life of the PV. They must also allow for quick removal for replacement of roofing surfaces which almost always have a shorter life than the PV.

This is a nightmare waiting to happen. A PV system can last for 40 years. There will be maintenance. If the maintenance issues are not a part of the design process, then pretty soon the consumers start spreading the word that solar does not work. Which of course is true, if inexperienced people design, specify and install the system. The best way to avoid government bureaucracy is for the industry to invest in best practices research and to make that information readily available.
Dave Del Grande
Dave Del Grande
August 27, 2009
Regarding Peter Be, I interviewed with him at Sunny Hill Energy.

I could tell something didn't smell right within the first 5 minutes Having worked in the solar industry I was well aware of Beohana Solar but didn't know at the time at Peter Be was the founder.

Although his picture has been taken off the Sunny Hill Energy website, all need to be aware of the proliferation of scam artist that have run and are running to the "Green" industry.

Just take a look at craigslist and do a job search on green, solar, cleantech or renewable. It quite an eye opener for the uninitiated.
William Fitch
William Fitch
August 27, 2009
Hi DA:

I live in PA and you are correct about the half baked side of the programs. There are just to many special interests in there to allow a good system to emerge. Allot of times as well, the states just copy aspects of the "Federal Stuff" rather than taking a good look and asking, "Is this the best way to do it". It ends up being, "well this is how they do it so it must be good". All incentives should simply be paid based on installed system performance, including thermal. A standard, "Thermal Remote Energy Monitoring Specification" "TREMS" should be defined. This would allow the controller market to explode and then real thermal production data can be had for grid planners, power companies etc. to utilize going forward. The value of this info. then becomes intertwined into the "energy system" at large. This type of integration is how you make the incentives less vulnerable to program cuts. You start providing information that has REAL value and then no one wants to see it leave.... People then get paid based not on some certification but on simply what the system produces year after year....
This would be a fair system for everyone greasing no palms, based on what you produce, no matter WHO you are.

.....Bill
david austin
david austin
August 26, 2009
I think it's great that states are making the incentives contingent upon certification in the name of safety for both the consumer and the installer.

I am starting to see however what almost appears to be a monopolizing of say the solar industry in some states under the guise of preventing scams and poor installations.

In these situations they are beginning to institute unreasonable requirements of new installers and creating a paperwork trail and a "pay to play" system for both installers and training facilities that strangles the green economy prevents competition and seems suspicious at best and criminal at worst.

Pennsylvania for example has a list of "qualified" solar installers that customers must use in order to qualify for state incentives which is reasonable and sensible enough, however to get on this list as a new installer one must be trained by an accredited facility (a good idea, though I know of training facilities that are superior to existing accredited facilities who cannot get the accreditation due to "red tape" reportedly for another year) do 3 qualified installations with a qualified installer and have done installations for a full year. With adequate training (and I repeat I've soon some nice setups with 1500ft^2 training roofs that get replaced every three seminars and using Nabcep certified trainers who will be waiting another year for accreditation) the last two requirements seems set up to make it impossible for competition.

What "qualified installer" in his right mind is going to take a future competitor along for not just one install, but three? None. And what consumer is going to use an installer (regardless how good or honest or established as a contractor they are) if they can' then qualify for state incentives. It's egregious.

No other industry requires this sort of thing, not like this ... sure there are states with Unions that do this kind of thing to keep the market tight but for states to do it smells quite bad.
kelsey nunez
kelsey nunez
August 26, 2009
In Southwestern Idaho, the green business community has teamed up with the Office of Energy Resources and the Better Business Bureau to provide consumers with a directory of vetted green energy businesses. See: http://boise.bbb.org/idaho-green-energy-business-link.
tony woicekowski
tony woicekowski
August 26, 2009
Good discussion. Snake oil emerges whenever stress and rapid changes give it an opportunity. The "if it's too good to be true" maxim however is not a fixed universal law.

Case in point: Some of my work involves implementing energy efficiency programs in commercial real estate, leveraging PUC funded programs. Find the sweet spot in these programs, and viola, the client has new equipment at no cost, and lower operating costs. Many qualified clients pass on the opportunity, to their own detriment, because it's "too good to be true".

Some reader will likely grouse at the "PUC funded" aspect... "my dollars supporting your assets" while conveniently ignoring the historical precedents that created today's energy conundrum. That's a different discussion.

Finding ways to quickly dump the bath water and keep the baby is a challenge. Message overload is part of the current human condition.
ANONYMOUS
August 25, 2009
Example: Peter Be
http://cbs5.com/local/solar.power.fraud.2.1058290.html

who moved on to be "President and chief executive office" of Sunny Hill Energy
http://www.sunnyhillenergy.com/donation/

where they have since removed his name from the Team page.
http://www.sunnyhillenergy.com/company/bio.html

The warning flags went up when the California solar contractors license Beohana Solar listed, did not belong to them.
http://www.mercurynews.com/news/ci_12679747?source=rss
ANONYMOUS
August 25, 2009
For debunking of another too-good-to-be-true story, check out
http://i-r-squared.blogspot.com/2009/08/another-journalist-fails-due-diligence.html

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Scott Sklar

Scott Sklar

Scott, founder and president of The Stella Group, Ltd., in Washington, DC, is the Chair of the Steering Committee of the Sustainable Energy Coalition and serves on the Boards of Directors of the Sustainable Buildings Industry Council, the...
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