Clear Solar - has gone into receivership

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Clear Solar - has gone into receivership

Postby Joey » Wed Jun 08, 2011 3:58 am

Lets all hope this isn't a sign of things to come for the solar industry.

http://www.smh.com.au/small-business/ma ... 1fq14.html
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Re: Clear Solar - has gone into receivership

Postby zzsstt » Wed Jun 08, 2011 6:01 pm

Clear Solar was one of the companies that took a vast number of deposits for ultra cheap systems, based on the majority of their profit coming from the REC multiplier. In fact I was once presented with one of their quotations for a system that I was advising on, and their "installed " price was cheaper than the wholesale price of the components.

It is no surprise at all that a company quoting such prices will be in strife when the rebate (REC multiplier, STC or whatever) from which its profit is derived is removed! Add to that the probable need to revisit all their installations to check for the various issues that the ORER have got excited about, and the threat of cancellation of the RECs should the systems not comply, and as I have said before the temptation for the directors to take the money and run must be quite overwhelming. Given that this country allows such people to restart trading under a different name the next day with no questions asked, I can imagine that it may well be the option of choice for many of the "cheap" or "free" installers!

What DOES surprise me is that another company has taken it over and stated that it will complete all the installations, and in fact I struggle to see how it can honour those contracts...... unless, of course, it actually renegotiates the price or is simply hoping that the reduction to a 20c FIT causes most of the orders to be cancelled.

I can foresee a large number of installers also going bust in the near future, and they will all (at least to start with) be those that have taken deposits on very cheap systems that are no longer profitable to install. It could be suggested that the only thing that will save such companies is the reduction of the FIT that may cause customers to cancel the contracts because it is no longer worth the investment.

Unfortunately it is almost inevitable that large government subsidies result in marketplace distortions and a flurry of people making money as quickly as possible...........
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