| Maximum deposit under the Consumer Code | 25 per cent of the estimated cost |
|---|---|
| Deposit plus advance payment ceiling | 60 per cent of the estimated cost |
| Cancellation period | 14 days, with refunds due within 14 days |
| Section 75 price range | Over £100 and up to £30,000 |
Why payments need a check
A solar job costs thousands of pounds, and part of it can be paid before any panel reaches your roof. If the installer fails, an early payment is the money most at risk. A few checks before you pay can reduce that risk.
This guide covers deposits, cancellation, staged payments, Section 75 and finance. It applies whether you hold one quote or several. While you are still comparing, start with our like-for-like method.
Check who you are paying
First, confirm the legal name of the company on the contract. Then confirm that the bank account belongs to the same company. The Renewable Energy Consumer Code says the contract must not be in the name of more than one business. That business must be both MCS certified and a Code member.
If the salesperson, the contract and the payment details name different firms, stop and ask for a written explanation before you pay. Our guide to checking a solar installer shows how to verify the firm.
Never accept a change to the bank details by phone or text alone. Confirm it by a route you already trust.
Deposit limits
The Consumer Code sets clear limits for members. A deposit should be a reasonable share of the estimated cost, for example 15 per cent. It should not exceed 25 per cent under any circumstances. The firm may use the money only for work under the contract, such as buying goods.
If you cancel within the cancellation period, the installer must repay the deposit within 14 days. The Code calls this a very important requirement, so hold the installer to it.
A request for a larger deposit is a warning sign. Our list of solar quote red flags covers other pressure tactics. For example, a “price valid today only” demand should make you slow down, because a fair quote can wait.
Staged and advance payments
A firm may ask for a further advance payment before the install. The Code limits this too. The deposit and the advance payment together cannot exceed 60 per cent of the estimated cost. The firm can ask for the advance no more than three weeks before the agreed delivery date for all the goods.
Tie each payment to a written milestone, such as delivery of equipment, completion of the install and handover. Ask for the handover papers promptly after commissioning. The Code says handing them over cannot be linked to receipt of full payment, so raise any delay with the installer in writing. Our guide to warranties and certificates lists what those papers are.
Protection if the installer fails
Code members must arrange for all deposits and advance payments to be insured. If the firm becomes insolvent before the job is done, another Code member should complete it at no extra cost. Money may also sit in a client account that is separate from the firm’s own accounts. When goods are bought with your money, the firm must hold them on trust for you. As a result, they stay yours if the firm fails.
HIES offers a separate scheme. Its deposit and stage payment protection covers up to 25 per cent of the contract value, with a maximum cover of £5,000, and lasts for 120 days from signing. It only becomes active once you receive written confirmation from HIES. Ask for that confirmation before you pay.
Because the schemes differ, ask your installer which one applies, what it covers and how long it lasts.
Your 14-day cancellation right
When you sign at home, away from the installer’s premises, or only by distance means, the Consumer Contracts Regulations 2013 apply. The Code requires members to give you the right to cancel without penalty within 14 days of the date the last item of goods is delivered to your home. The installer must give you written notice of that right.
However, if the notice is missing, the cancellation period can be extended by up to 12 months. GOV.UK gives the same warning for sellers who fail to explain the right. If you do cancel, the installer must refund your money within 14 days.
Be careful if work starts early, because it can cost you the free cancellation. The Code says an installer must not install during the cancellation period unless you give express written permission. If you then cancel, you may have to pay for goods and services already supplied, and for making good the property.
The Code also says that where the survey comes after signing and the performance estimate changes, you may cancel without penalty.
Section 75 and card payments
Section 75 of the Consumer Credit Act can make a card provider jointly liable if the seller breaks the contract. According to Which?, the item must cost over £100 and not more than £30,000. You do not need to pay the full amount by card, because the card company is liable even if you paid only a deposit on it.
However, Section 75 covers credit cards, not debit cards. For a debit card payment, chargeback may be an alternative. If your card provider rejects a claim, you can ask for a deadlock letter and go to the Financial Ombudsman Service.
A battery bought alongside the panels is part of the same job, so check the total price against the limits. Our article on whether a battery is worth it can help you decide before you add one.
Finance and total cost
A low monthly payment can hide a high total, so ask for the figures. Ask for the total amount payable, the interest rate, the term, any fees and who owns the system.
The Consumer Code says savings and payback estimates must account for monthly repayments and the full amount payable, including interest. The installer must give clear information on the loan total, the monthly amount and the interest. Therefore, if a payback figure ignores the repayments, treat it with caution.
Finance and solar performance are separate decisions. A good loan does not make a weak quote better. Equally, a poor loan can wipe out the saving from a fair price. If you may move, also read about selling a house with solar panels.
Final checks before you pay
- The contract names one MCS-certified Code member
- The deposit is no more than 25 per cent
- Each later payment has a written milestone
- Deposit protection is confirmed in writing
- The cancellation notice and form are in the contract
- The finance total is clear
Also tell your insurer about the work, since the Code advises you to tell insurers. Our note on solar panels and home insurance explains why.
Prices and installers differ across the UK. Our pages on solar quotes in Scotland and what Northern Ireland households should know cover local points. When you are ready to compare, you can request quotes from MCS-certified installers. Solar Panel Price Check is independent and is not an installer or lender.