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Insolvency Service investigation leads to shut down of major national solar panel company

News Release issued by the COI News Distribution Service on 31 July 2012

Solar Energy Savings Limited (“Solar”), which marketed and sold solar panel systems to the general public, was wound-up on 26 July 2012 by the High Court in Manchester on a petition presented by the Secretary of State for Business, Innovation and Skills in the public interest following an investigation by Company Investigations of The Insolvency Service.

Solar, based in Manchester but with offices throughout Great Britain, commenced trading in early 2011 and had a turnover of more than £50m. The company did not itself carry out the installation of the solar panels but contacted prospective customers via a series of telephone marketing calls leading ultimately to a home visit by a salesman.

The investigation found that Solar engaged in serious mis-selling practices during these home visits involving high pressure sales tactics, misrepresentation and other illegal or irregular sales practices.

In particular,

customers were falsely led to believe that Solar was part of a government backed or officially authorised scheme providing discounts of up to 30% 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; Solar claimed to be a member of a trade body when it was not; customers were subjected to a sales pitch lasting in excess of two hours and signed contracts merely to get the salesman to leave their homes;customers were incorrectly told that the system could be reinstalled free of charge if they moved home;Solar 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 trial, Solar did not admit the Secretary of State’s allegations but did not object to the making of a winding up order on the grounds alleged by the Secretary of State and the Court was satisfied that Solar should be wound up.

Commenting on the case, Scott Crighton, 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.”

Ends

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Notes to Editors

1. Solar Energy Savings Limited was incorporated on 20 October 2009. Its registered office and principal trading address was at Global House, Bailey’s Lane, Manchester, M90 4AA. 2. The petition to wind-up Solar Energy Savings Limited was presented under s124A of the Insolvency Act 1986 on 7 March 2012. The company was wound up on 26 July 2012. 3. Company Investigations, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Innovation & Skills (“BIS”). 4. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice. Further information about the work of The Insolvency Service is available from www.bis.gov.uk/insolvency 5. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: piu.north@insolvency.gsi.gov.uk 6. Media Enquiries should be directed to Kathryn Montague, Media Relations Manager, Telephone 020 7674 6910 or Ade Daramy, Press Officer on 020 7596 6187

Contacts:

Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk