Does a group-buying scheme offer best value?

There are a few group-buying schemes being offered in the UK but do they really deliver the best solutions for everyone?

We are going to look at some of the Pro’s and Con’s of such schemes.

Firstly what is a group-buying scheme? In essence it is a collection of like minded potential customers who want to install Solar PV and/or batteries at their home or business. The idea is if they group all this potential business together they will get better deals from suppliers. Usually the schemes are promoted by Councils, although other than a few helpful pointers they don’t do much else and they certainly don’t offer to part fund the installations. There is usually an organisation that collects information about potential customers, collects information about potential installers and then runs an auction where installers bid on all the work of the potential customers. Usually the winner of the auction is the one that submits the cheapest quote to do the work. Finally each potential customer then decides whether they wish to proceed with the selected installer or not.

What are the benefits of such a system? Well the obvious one is price, the quotes are usually fiercely competitive. Also you don’t have to do too much work to find an installer. Last year it became almost impossible to find an installer that would return your call from an enquiry let alone provide a quote. You also have a certain level of comfort knowing that you are not alone in using the installer and there is usually some level of vetting of the installers. Finally you will usually have some idea of time frame for the installation as this is usually stipulated as part of the auction process. The organisation that organises the group buying may have some form of help desk to guide you through the process and may be able to help if you do encounter problems.

So why would you not use such as service? Firstly cheapest isn’t always best. If the auction is based upon lowest cost it will most likely include the cheapest equipment and that may not be the best option for you. Most cheaper solutions have lesser warranties and require more maintenance in addition to producing less electricity. The vetting process is usually restricted to an installer that has MCS and RECC or HIES membership. There are thousands of companies that are accredited with these organisations, in fact you could probably throw a brick out of the window and it would hit someone who is now MCS accredited. Therefore this is not a very high threshold to meet. There have been some instances recently of sizeable companies who are approved installers using counterfeit parts and there is virtually no policing of this industry. Also you do decide to alter the specification, change the design such as adding more panels and/or battery storage you are not covered by the auction process. Finally if there is some remedial work required on your roof etc to enable your install you could be in for some scary additional costs.

So in summary if you are the kind of person that generally buys the cheapest product then a group buying scheme is probably for you. If you are someone that likes to do their homework beforehand then I would suggest stick to what you know and do a little bit of work and select an installer that you feel comfortable with.

But remember which ever route you take you will be doing your little bit for the environment.

Good luck.