What should I check about the warranty promises a solar installer has made to customers?
Collect the warranty wording the installer actually gave customers, then compare it with what the manufacturers cover. Any promise longer or wider than the manufacturer’s sits on the installer’s own books. Ask for the claims history and how each claim was paid.
Begin with the paperwork customers signed. Warranty promises show up in contracts, proposals, brochures and sometimes in emails from sales staff. Ask for every version used, because promises often changed over time. Note which parts the installer promised itself, such as workmanship on the roof penetrations, and which parts rest on equipment makers.
Next, read the claims history. How many customers came back, for what, and what did the fix cost? Ask whether the installer ever replaced equipment up front and then waited on the maker to repay. Check that the claims listed match actual spending in the books. A business that never records a claim may simply not be tracking them.
Then ask who stands behind the promises after the sale. If a roofer or electrician did some of the work, did they give the installer anything in return? You are likely to inherit the customer relationship, so ask your lawyer how these promises are handled in the purchase agreement and whether the price should reflect them. Your accountant can ask whether any amount is set aside. Ask also whether warranty terms differ between older and newer customers, and whether sales staff made verbal promises that never reached the contract. Those loose promises are hard to price and easy to miss.
Key takeaways
- Gather every version of the warranty language customers received.
- Separate what the installer promised from what manufacturers cover.
- Match the claims log against actual repair spending.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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