Following the events of the recent 'solar scam' in Kerala, one ponders whether there is any relevance to the word 'solar' being used along with the word 'scam'?
The companies that perpetrated the scams collected a lot of money (in the name of investment) from many people by either offering partnership/shares(!) in their firm(s) or by providing them with dealership/franchisee status. There are also cases of customers (who ordered for solar power systems to be set up in their homes/offices) who were cheated off their advance amount.
The first two cheating methodologies involved the company convincing investors that solar/green energy projects will offer high-returns in a short time. Well, anybody who has been in business (not only solar power business, but any business) knows very well that 'high returns within a short-term, without putting a lot of work/efforts in the first place (which pretty much invalidates the 'short-term')' is highly impractical and unsustainable.
It is always advisable to be technically competent before venturing into a field of business in order to be able to evaluate companies/people offering dealerships. In this case, the perpetrators tried to run away with the investors money. Hence, it is suggested that people be very careful before investing/signing dealerships (that involve money), in any company (not just solar/green energy companies). There is no substitute to proper homework/information gathering about the companies/partners involved.
If you are buying solar power equipment from resellers/integrators, make sure that the maximum you agree to pay is only a token advance (if any), and not a substantial amount of money (often quoted in %) as advance. You can offer to pay them the cost of equipment immediately after they deliver it to you. But even then, don't pay for the installation charges unless the materials are fixed and thoroughly checked.
Prudence is required mainly in the green energy sector because many solar companies are being newly set-up and their supply-chain/installation capability may not have a solid standing, yet.
Prudence is required mainly in the green energy sector because many solar companies are being newly set-up and their supply-chain/installation capability may not have a solid standing, yet.
Also, just because I write about any company here or you've seen others write about them/talk about them elsewhere, do not assume that they should be genuine companies. (Please read the disclaimer in this regard). Always verify their claims, research about their partners/suppliers and visit a couple of their existing customer installations to gauge the customer's satisfaction with the materials/services provided, before proceeding to deal with them.
Solar panels last for 20-25 years and hence it is very important to evaluate and determine a good reseller/integrator (who would stay in business and offer good support, for that long) before giving any business to them. This is one reason why you may have to give more preference to quality (of both components and personnel), than cost/price.
Coming to the topic of this article, I feel that the solar scam is more about greed than energy. Solar scam seems to be similar to the teak-plantation scam or finance company scam.
But, it is a good wake-up call for everyone and reminds us that we need to be careful with the companies/people we deal with, in future. Especially in the renewable energy domain, where brands and service providers are yet to standardize/get established.
If you want to read more about the scam itself, read this exhaustive Firstpost article or this 10-point NDTV article.
