7 Red Flags to Watch Out For When Hiring a Solar Power Company

Solar power companies have contributed significantly to India’s renewable energy expansion, adding over 34 GW of capacity in recent years across states such as Uttar Pradesh, Maharashtra, and Gujarat. Businesses and homeowners turn to these providers to lower electricity bills, fulfill renewable purchase obligations, and advance sustainability objectives. However, selecting an unreliable partner can result in system failures, escalated expenses, and regulatory non-compliance. Identifying key warning signs enables informed decisions that support long-term performance and return on investment in solar installations.

Absence of Essential Certifications

Solar power companies must hold certifications that verify equipment quality and compliance with standards. In India, the Bureau of Indian Standards (BIS) mandates certification for solar photovoltaic modules under the Quality Control Order effective since April 2022, aligning with IS 14286 and IS 17030 for crystalline modules to ensure durability and safety. Globally recognized International Electrotechnical Commission (IEC) standards, including IEC 61215 for mechanical load testing and IEC 61701 for salt mist corrosion resistance, confirm panels endure harsh conditions prevalent in coastal regions like Tamil Nadu.

Without these, companies risk distributing modules that are prone to rapid degradation or pose fire hazards. Reputable renewable energy companies like Avaada maintain BIS, IEC, and UL certifications, demonstrating compliance with rigorous testing for high-efficiency bifacial N-Type TOPCon modules used in utility-scale projects. Additional ISO 9001 for quality management and ISO 14001 for environmental practices further assure operational excellence. Verify these documents directly, as unverified claims undermine project viability.

Aggressive Sales Practices

Solar power companies employing high-pressure tactics prioritize short-term gains over client needs. Insistence on immediate contract signing limits due diligence and conceals unfavorable terms, such as escalating finance rates. Ethical providers present proposals methodically, incorporating detailed financial models based on site data and net metering benefits under India’s Electricity Act.

Such pressure often accompanies incomplete disclosures about incentives such as the Production Linked Incentive (PLI) scheme, which supports domestic manufacturing. Established firms facilitate consultations with engineers, enabling evaluation of system sizing for peak loads up to 85-95% capacity utilization. Document all communications to safeguard against disputes arising from verbal promises.

Limited Project Experience

A sparse portfolio signals a lack of expertise among solar power companies. Reliable operators showcase verifiable installations, including ground-mounted plants in Rajasthan’s arid zones or rooftop systems in urban Haryana, with metrics on energy yield and uptime. The absence of such evidence suggests challenges in securing permits, managing EPC contracts, or integrating with state grids managed by entities such as SECI.

Experience matters in handling intermittency through hybrid configurations combining solar with storage to achieve round-the-clock reliability. Reputable renewable energy companies like Avaada demonstrate deployments in Maharashtra and Gujarat, leveraging integrated manufacturing from ingots to modules for supply chain control. Request site visits to operational projects and third-party performance audits to confirm claims.

Opaque Pricing Structures

Lack of pricing transparency distinguishes questionable solar power companies. Comprehensive quotes must delineate costs for bifacial modules (typically 610-720 Wp), central inverters with 98.5% efficiency, balance-of-system components, labor, and five-year operations & maintenance. Vague estimates or bids far below industry averages, around ₹2.5-3.5 per watt for utility projects, often rely on obsolete technologies or omit warranties.

Factor in lifecycle economics, where the levelized cost of energy (LCOE) for TOPCon modules falls below ₹2.5/kWh over 25 years due to low degradation (under 0.4% annually). Demand breakdowns compliant with GST at 12% for solar equipment and clarity on net present value calculations. Solar power companies that evade detailed spreadsheets expose clients to post-installation surprise escalations.

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Neglect of Site Assessments

Solar power companies bypassing physical site evaluations compromise system design. Thorough inspections assess solar irradiance (4.5-6.5 kWh/m²/day in key states), shading from nearby structures, wind loads up to 2400 Pa, and soil stability for ground mounts. Remote quotations ignore these variables, yielding suboptimal tilt angles (15-30 degrees optimal) and string configurations that reduce output by 20-30%.

Professional assessments use tools such as LiDAR for 3D modeling and PVsyst simulations to predict first-year yields with 5% accuracy. This process aligns with MNRE guidelines for rooftop solar under the PM Surya Ghar scheme, ensuring eligibility for subsidies up to 40%. Firms skipping this step risk structural failures or inefficient renewable energy generation.

Inadequate Warranty Provisions

Substandard warranties indicate low confidence in solar power company products. Industry norms specify 12-25 years for modules (linear power warranty to 84.95% at year 30), 5-10 years for inverters, and product coverage against PID and hotspots. Vague language on throughput, such as undefined “performance guarantees,” fails to address real-world factors, including bifacial gains of up to 20% on reflective surfaces.

Reputable renewable energy companies like Avaada offer precise terms, backed by IEC 61701 testing for salt-mist corrosion and IEC 61716 for ammonia resistance, for agricultural proximity projects. Insist on transferable warranties registered with independent bodies and clauses for labor-inclusive repairs. Weak provisions lead to out-of-pocket costs after initial coverage lapses.

Final Thoughts

Addressing these red flags, certifications, sales tactics, experience, pricing, site visits, and warranties secures effective partnerships with solar power companies. Prioritizing verified credentials and technical rigor supports renewable energy adoption in Madhya Pradesh, Bihar, and other high-potential regions. Partners with integrated production and proven execution deliver reliable power, cost efficiencies, and compliance with India’s 500 GW non-fossil target by 2030. Thorough vetting ensures sustained benefits from clean energy investments.