How a hidden fee pushed the cost of Texas residential solar systems through the roof. Companies offering quick-approval online loans for rooftop solar systems didn’t tell customers about a lending fee of 30% or more, an Express-News investigation found.
In Oak Hollow Park, I have seen some homes with solar panels and have wondered with soaring electricity bills, if solar panels are the solution. After some research, I have read some real horror stories.
But since a rooftop solar system typically costs $25,000 or more, financing was key, and the sales reps had an answer for that. They pitched a new kind of instant, no-hassle loan with low interest rates and zero money down. But neglect to mention their (30% of total sale) hidden fees. Please do your homework if you consider getting “solar panels” with a zero-down loan.
Reading an article in the San Antonio Express-News, the markup is best-known as the dealer fee but is sometimes called the program or platform fee or the original issue discount. By whatever name, it increases the dollar amount of a loan above and beyond the cost of materials and labor, and it means the homeowner must pay interest on a larger principal for as long as 30 years.
A San Antonio couple, Cathy and Frederick “Bill” Evans, say that after signing contracts for a rooftop solar system, they learned the loan included an undisclosed dealer fee of nearly $13,000 — almost 30% of the project’s cost.
Be careful neighbors.