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--:-- Keith Romer: Welcome to Planet Money. I'm Keith Romer.
--:-- Alana Samuels: And I'm Alana Samuels.
--:-- Keith Romer: Today, we're talking about the darker side of residential solar power. We're featuring an episode from our friends over at Planet Money.
--:-- Alana Samuels: That's right. And we're joined by Alana Samuels, Time Magazine's senior economics correspondent.
--:-- Keith Romer: Alana, you've been writing a lot about folks like Christine and John. Let's start with a sense of scale. 4.5 million households in the country have rooftop solar, and plenty of them are happy with it.
--:-- Alana Samuels: That's right. But the details of that transition matter, and my reporting suggests that at least with solar panels, we may not be totally nailing it.
--:-- Keith Romer: There's this corner of the residential solar market where tens or maybe even hundreds of thousands of people are really disappointed by what they've been sold. It's more expensive than it should be, and customers say they can't get anyone to fix their panels when they break.
--:-- Alana Samuels: So, let's talk about Christine and John. They moved from New Jersey to Florida because of John's job. And in 2012, they signed up for solar panels with a company that promised them they'd save money on their electricity bills.
--:-- Keith Romer: That's right. And they were sold on the idea of becoming energy independent. But what happened?
--:-- Alana Samuels: Well, their electricity bills were still really high. They were paying $300 a month, and they thought the solar panels would replace about 75% of their energy usage.
--:-- Keith Romer: And what about the sales pitch? How did the salesman convince them to sign up?
--:-- Alana Samuels: The salesman told them that electricity was only going to get more expensive, and that they'd be able to get rid of their electric bill and become energy independent.
--:-- Keith Romer: And what about the financing? How did they pay for the solar panels?
--:-- Alana Samuels: They signed a 20-year lease for the solar panels, and they had to pay a monthly loan payment of around $200.
--:-- Keith Romer: And what about customer service? How did they experience it?
--:-- Alana Samuels: They had a really bad experience with customer service. They couldn't get anyone on the phone, and they had to deal with a lot of runaround.
--:-- Keith Romer: And what about the company that installed the solar panels? What happened to them?
--:-- Alana Samuels: The company went out of business, and a new company took over their service contract.
--:-- Keith Romer: And what about the new company? Did they make things right?
--:-- Alana Samuels: No, they didn't. They just kept selling them more solar panels, and the customers were still stuck with high electricity bills.
--:-- Keith Romer: And what about the industry as a whole? Is this just a problem with one company, or is it a bigger issue?
--:-- Alana Samuels: It's a bigger issue. The industry has been built on a business model that prioritizes growth over customer satisfaction.
--:-- Keith Romer: And what about the tax credits? How do they fit into this?
--:-- Alana Samuels: The tax credits were designed to incentivize homeowners to install solar panels, but they ended up benefiting big companies like Google more than individual homeowners.
--:-- Keith Romer: And what about the asset-backed securities? How do they work?
--:-- Alana Samuels: The asset-backed securities are a way for big solar companies to raise capital by bundling up the income streams from solar panel leases and selling them to investors.
--:-- Keith Romer: And what about the salespeople? How do they get paid?
--:-- Alana Samuels: The salespeople get paid based on the price they can sell the solar panels for, and they often have a lot of latitude to negotiate with customers.
--:-- Keith Romer: And what about the customer service? How does it compare to other industries?
--:-- Alana Samuels: The customer service in the solar industry is often really bad, and customers are often left feeling frustrated and stuck.
--:-- Keith Romer: And what about the future of the industry? Is it sustainable?
--:-- Alana Samuels: I'm not sure. The industry is facing a lot of challenges, and it's not clear if it can continue to grow in the way that it has.
--:-- Keith Romer: And what about the customers? What can they do to protect themselves?
--:-- Alana Samuels: Customers need to be aware of the business model and the potential pitfalls. They need to do their research and make informed decisions.
--:-- Keith Romer: And what about the companies? What can they do to improve?
--:-- Alana Samuels: The companies need to prioritize customer satisfaction and transparency. They need to be honest with customers about the costs and benefits of solar panels.
--:-- Keith Romer: And what about the government? What can they do to help?
--:-- Alana Samuels: The government can help by implementing policies that prioritize customer satisfaction and transparency. They can also provide incentives for companies that prioritize customer satisfaction.
--:-- Keith Romer: And what about the future of renewable energy? Is it still a good idea?
--:-- Alana Samuels: Yes, it is. Renewable energy is still a good idea, but the industry needs to be reformed to prioritize customer satisfaction and transparency.
--:-- Keith Romer: And what about Christine and John? What's their story now?
--:-- Alana Samuels: They're still paying off their solar panels, and they're still dealing with high electricity bills.
--:-- Keith Romer: And what about Sonova, the company that leased them the solar panels? What's their story?
--:-- Alana Samuels: Sonova says they've made customer service investments, but Christine and John's experience suggests otherwise.
--:-- Keith Romer: And what about the lease agreement? What does it say?
--:-- Alana Samuels: The lease agreement says that Christine and John's only recourse is to file for arbitration and hope they get a ruling that goes their way.
--:-- Keith Romer: And what about the future of the industry? Is it still a good idea?
--:-- Alana Samuels: I'm not sure. The industry is facing a lot of challenges, and it's not clear if it can continue to grow in the way that it has.
--:-- Keith Romer: And what about the customers? What can they do to protect themselves?
--:-- Alana Samuels: Customers need to be aware of the business model and the potential pitfalls. They need to do their research and make informed decisions.
--:-- Keith Romer: And what about the companies? What can they do to improve?
--:-- Alana Samuels: The companies need to prioritize customer satisfaction and transparency. They need to be honest with customers about the costs and benefits of solar panels.
--:-- Keith Romer: And what about the government? What can they do to help?
--:-- Alana Samuels: The government can help by implementing policies that prioritize customer satisfaction and transparency. They can also provide incentives for companies that prioritize customer satisfaction.
--:-- Keith Romer: And what about the future of renewable energy? Is it still a good idea?
--:-- Alana Samuels: Yes, it is. Renewable energy is still a good idea, but the industry needs to be reformed to prioritize customer satisfaction and transparency.
--:-- Keith Romer: And that's all for today's episode. Thanks for listening.
--:-- Alana Samuels: Thanks for listening.
--:-- Keith Romer: If you want to hear more about this, check out Alana's series on residential solar in Time Magazine.
--:-- Alana Samuels: And if you want to take our survey, you can find it at npr.org/pmsurvey.
--:-- Keith Romer: Thanks for listening to Planet Money.
--:-- Alana Samuels: Thanks for listening.
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--:-- Keith Romer: This episode was produced by Emma Peasley.
--:-- Alana Samuels: It was edited by Jenny Lawton.
--:-- Keith Romer: It was fact-checked by Sierra Juarez.
--:-- Alana Samuels: And engineered by Valentina Rodriguez-Sanchez.
--:-- Keith Romer: Alex Goldmark is our executive producer.
--:-- Alana Samuels: Thanks for listening.
--:-- Keith Romer: Thanks for listening.
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