Solar Energy Savings is wound-up by Insolvency Service | Trouble For Solar Industry?

Solar Energy Savings is wound-up by Insolvency Service | Trouble For Solar Industry?

A firm which generated more than £50m of turnover by marketing and selling solar panel systems to the public has been wound up following an investigation by The Insolvency Service. The probe found that Solar Energy Savings Limited, which was based near Manchester Airport, engaged in 'serious mis-selling practices' during home visits to potential customers, The Insolvency Service said. It added that the company's staff used high-pressure sales tactics, misrepresentation and other illegal or irregular sales practices. Solar Energy Savings Limited was incorporated in October 2009 and had its registered office and principal trading address at Global House, Bailey's Lane, Wythenshawe. 

It was wound up by the High Court in Manchester following a petition presented in the public interest by the government following an inquiry by Company Investigations, which is part of The Insolvency Service. Solar had offices across Britain and started trading in early 2011. It did not carry out the installation of solar panels but contacted prospective customers via a series of telephone marketing calls, leading to a home visit by a salesman. 

Solar Panel Company Wound Up by Insolvency Practitioners

The inquiry allegedly found that: *Customers were falsely led to believe that Solar was part of a government-backed or officially-authorised scheme providing discounts of up to 30 per cent, but that these were limited by number or time; Solar's salesmen consistently overstated the performance of the panels and the return on investment likely to be achieved by the customer, and the firm falsely claimed to be a member of a trade body; *Customers were subjected to a sales pitch lasting more than two hours and signed contracts 'merely to get the salesman to leave their homes'; They were also incorrectly told that the system could be reinstalled free of charge if they moved home; Solar also induced customers to sign a contract with the promise that they would receive the full amount of their purchase price back after five years through a scheme falsely said to be underwritten by an international company called Capital Suisse; *Solar failed to maintain adequate accounting records, preventing the investigator from obtaining accurate information about sales and cancellations, customer deposits and the true nature and extent of payments made from its bank account.

At a trial, Solar did not admit the allegations but did not object to the winding-up order. Scott Crighton, the investigation supervisor, said: “Solar Energy Savings Limited persistently and deliberately flouted both statutory regulations and industry-standard selling practices in order to generate sales, and widely-promoted a non-existent scheme in order to induce members of the public into signing a contract. “These proceedings make clear that The Insolvency Service will take firm and decisive action to protect the public against such objectionable practices.” 

Source: 
Manchester Evening News