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Valley solar company shuts down; Customer says promised savings didn't add up

Solar Panels
Posted at 5:00 AM, Jan 08, 2024
and last updated 2024-01-08 08:30:07-05

PHOENIX — The solar industry in Arizona continues to grow rapidly. Nearly 200,000 Arizona homes now have solar panel systems and the average cost is around $24,000 after credits.

It's good news for installers, but not so good for customers like Richard G. who say they were misled about savings.

Richard says he found a business, Erus Energy in Phoenix, and a salesman who said all of the right things.

"He kept saying, 'yes, you'll get zero or no bills.' And we said, 'OK, if you make sure we don't get any bills, we'll do it,'" Richard said.

So, he did it, spending $25,000 for solar panels before any tax credits.

He waited for those very low summer electricity bills he says were promised but didn't come.

"We started getting bills of $50. And then June - $80 - and then just under $200. And that's a lot of money," Richard said.

He says Erus Energy didn't offer help with those bills and the company did not respond to our questions.

But they're not the only Valley solar company facing complaints about solar sales and false promises.

ABC15 viewer Bob did business with a different installer and says his solar seller promised big cost cuts. He says with financing costs, "My electric bills are pretty much $200. No savings."

Robin says she "was assured I would not have an electric bill. Now 13 months later, I have a bill that is still up over $1,400."

Cheryl says she was "told no electricity bill." Instead, she says she's "stuck with a solar payment as well as an electric payment, which is more than I had."

Most owners say the salespeople don't put these verbal promises in writing.

Erus Energy gave Richard a chart showing his estimated electricity bill after installation would be around $12 monthly.

It says he would save $1,688 a year.

"The contract should be just under $150 for the entire year. It's well exceeded that," Richard says about his expected electricity bills.

He showed me utility bills from last year.

During the hottest months of May through September, all were higher than the Erus estimates — some much higher.

He just wants the savings he says the company promised.

"If they can't do that, they can come and get the solar and remove it and give us our money back," Richard said.

Now, that likely won't happen.

We found that Erus Energy closed its Phoenix offices and the company filed for bankruptcy protection.

It leaves customers like Richard trying to find out who will handle warranty issues on his $25,000 investment.

Before signing a solar contract, check the company's license with the state's Registrar of Contractors.

Also, check company reviews online and ask to speak with a customer.

Get ALL promises in writing.

Solar United Neighbors is a non-profit organization that can help guide you if thinking about solar.

The Arizona Solar Energy Industries Association is a non-profit organization that says it's "committed to upholding a code of ethics" involving the solar industry. Check out their consumer help guide.

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