As
a progressive who worked hard to help get Secretary Hillary Clinton
elected, it is challenging for me to accept Donald Trump as
President. But, he won. At least for now, I have to make the best of
a bad situation. Which means progressives like me will have to both
resist the Trump administration’s odious policies, and also
pressure - and even cooperate with - the administration to implement
policies that reflect our worldview.
This
is why I was interested to see a recent letter sent to the Consumer
Financial Protection Bureau (CFPB) by three Democratic Members of
Congress. Signed by Congressmen Henry Cuellar of Texas, Emmanuel
Cleaver of Missouri and Bennie Thompson of Mississippi – it
urges the CFPB to look into bad actors operating in the rooftop solar
industry.
What
we are talking about here are those salespeople that go door to door,
and bombard consumers with telemarketing calls, urging them to put
solar panels on their rooftops. Now, for some people, rooftop solar
makes both environmental and financial sense. This is why I generally
support the industry.
But
what concerns me – and those three Democratic Congressmen –
are the shady operators that mislead potential customers about the
cost saving benefits of installing those panels. The letter outlined
three major concerns.
First,
that new customers may be unaware that the panels can cost upwards of
$15,000 and that they will have to pay that money back. This purchase
can generate an additional lean against their home making it harder
to sell their house, which also decreases its value. For those
Americans barely getting by, and counting on every dollar of equity
in their house, this is problematic. This is especially true if they
hope to sell their home to fund retirement.
Second,
salespeople sometimes tell customers that they will save a lot of
money on their utility bill because the price of electricity from
utility companies is going up. That simply is not accurate. In
reality, many people’s electric bills are coming down,
stabilizing or going up only single digits. This is because of cheap
and abundant natural gas used to produce electricity. Solar panel
customers don’t see any savings on their electric bills, but
have to pay back the cost of buying or leasing the panels. Every
month, people are out of pocket more – not less - money.
Third,
the letter to the CFPB points out that many of these solar panel
sales pitches include promises of “no money down” and
other high-pressure sales tactics. Anyone who has ever dealt with a
shady salesperson – whether for solar panels or a used car –
knows that these tactics are not the tools of an honest broker.
Plus,
as the Wall Street Journal exposed this January, we know many solar
panel salespeople are pitching so-called government loans that can be
used to help make homes more energy efficient. In reality, these
Property Assessed Clean Energy, or PACE loans, are a type of loan
which gives creditors top priority on securing repayment – even
priority over a mortgage. No wonder, according to the Journal, that
PACE loans are likely “the fastest-growing type of financing in
the U.S.” The title of the article should make us all fearful:
“America’s Fastest-Growing Loan Category Has Eerie Echoes
of Subprime Crisis.”
While
there have been rumblings that the Trump Administration would curtail
the CFPB, the letter from Congressmen Cleaver, Cuellar and Thompson
illustrates why this regulatory agency is important. Action against
these shady rooftop solar companies, who seem to target communities
of color, is one way that this administration could showcase its
commitment to the working people who supported it. Indeed, as
President Trump hosted a “listening session” with some
Black Republicans “in honor” of Black History Month, he
made no specific policy commitments. It would have been fantastic
had he taken this small issue on, signaling that he understands the
exploitation that some communities experience because of this solar
chicanery.
The
solar industry generates more than 200,000 jobs across the nation.
While Donald Trump might not be concerned about producing clean
energy, he says he cares about protecting American workers. That is
why I am urging his Administration, and the CFPB, to take steps to
eliminate the bad actors in rooftop solar. Unless we do, people will
catch on, and walk away from solar. That will hurt our economy and
our fight to beat climate change. Hopefully one out of two of those
concerns is enough for the new Administration to take action to
protect consumers.
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