What Are the Warning Signs of a High-Risk Solar Proposal?

What Are the Warning Signs of a High-Risk Solar Proposal?

Solar100 Malaysia Solar Proposal Risk Guide  

What Are the Warning Signs of a High-Risk Solar Proposal?

Updated: July 2026

A high-risk solar proposal is not identified by price alone. The greatest concerns usually appear when the contracting company is unclear, technical responsibilities are unidentified, equipment and system capacity are vague, savings are presented as guaranteed, major costs are excluded, payment is heavily front-loaded or warranties are described without a practical Malaysian claim and replacement process.

Quick Answer Warning signs include an unverifiable company identity, payment to an unrelated account, no exact panel or inverter models, no distinction between panel DC capacity and inverter AC capacity, no roof or electrical inspection, guaranteed approval or savings, unexplained technical-study fees, unclear Solar ATAP responsibilities, large upfront payments, unrestricted equipment substitutions, missing workmanship or roof-leak coverage, no warranty-labour terms and no named Malaysian after-sales contact. One warning sign may require clarification; several combined warning signs may indicate a proposal should not be accepted without substantial revision and independent verification.
SEDA-Related Standards Review
SSM Registration Information Review
Policy & Application Process Review
After-Sales Support Assessment
Consultation & Quotation Comparison

What Company Identity Warning Signs Should You Check?

The company receiving the contract and payment should be identifiable and connected to the quotation, invoice, project team and warranty obligations.

  • No full legal company name
  • No SSM registration number
  • Only a trading name is shown
  • No registered business address
  • No official company email address
  • No named project representative
  • No named after-sales representative
  • Quotation and invoice use different entities
  • Payment requested to an unrelated company
  • Payment requested to a personal account
  • Company refuses to issue an official receipt
  • Registration claims cannot be independently checked
  • Company has recently changed identity without explanation
  • Customer is pressured to pay before verification

Quotation Entity

The legal entity issuing the quotation should be clearly stated and should normally be the party responsible for the contract.

Invoice Entity

The invoice should identify the same project and explain any lawful difference between the seller, contractor and payment recipient.

Payment Recipient

The bank-account holder should be consistent with the contracting arrangement. An unexplained third-party recipient increases recovery and accountability risks.

Warranty Provider

The proposal should identify which company remains responsible for workmanship and warranty coordination after installation.

Identity Mismatch Is a Major Warning Sign: Do not assume that a salesperson, social-media page, installer team, quotation issuer and payment recipient are the same legal entity.

What Technical Responsibility Warning Signs Should You Check?

Solar installation involves design, electrical work, testing, commissioning and documentation. A proposal becomes higher risk when no qualified party is identified for these responsibilities.

  • No responsible RPVSP identified, where applicable
  • No registered electrical contractor identified
  • No competent person identified
  • No engineer or consultant identified when required
  • No party responsible for system design
  • No party responsible for electrical calculations
  • No party responsible for testing
  • No party responsible for commissioning
  • No party responsible for certification
  • Technical questions are answered only by sales staff
  • Installer refuses to provide licence or registration details
  • Subcontractors are used without accountability
  • The main contractor denies responsibility for subcontracted work
  • No correction process for technical defects
Technical Role Low-Risk Proposal High-Risk Warning Sign
System Designer Named party prepares and supports the design No one accepts responsibility for capacity or layout
Electrical Contractor Registered contractor is identified Electrical work is assigned to an unnamed installation crew
Competent Person Appropriate responsible person is identified No qualified person is named for supervision or certification
Testing Party Tests, records and signatories are defined Proposal only states that the system will be switched on
Sales Confidence Is Not Technical Accountability: A persuasive salesperson does not replace a documented designer, registered electrical contractor, competent person or responsible commissioning party.

What Site Assessment Warning Signs Suggest Higher Risk?

A detailed proposal should normally be based on relevant property and electricity information. A final fixed proposal prepared without meaningful assessment may rely on assumptions that later become variations or exclusions.

  • No recent electricity bills reviewed
  • No electricity tariff checked
  • No single-phase or three-phase confirmation
  • No Maximum Demand review where relevant
  • No physical or suitable remote roof assessment
  • No roof material identified
  • No roof-age or condition discussion
  • No shading assessment
  • No roof orientation review
  • No usable roof-area calculation
  • No electrical switchboard inspection
  • No meter-board assessment
  • No cable-route review
  • No inverter-location assessment
  • No installation-access assessment
  • No structural question for a questionable roof
1

Electricity Review

Confirm the tariff, consumption pattern, supply phase, demand and account information used for the recommendation.

2

Roof Review

Record material, condition, age, dimensions, orientation, drainage, shading and available installation area.

3

Electrical Review

Assess the switchboard, meter position, cable route, connection point, earthing and possible upgrade requirements.

4

Access Review

Identify scaffolding, lifting equipment, restricted areas, working hours, safety requirements and delivery access.

Remote Proposals Are Not Automatically High Risk: A preliminary remote proposal may be reasonable, but it should clearly state its assumptions and remain subject to proper site and technical verification before final commitment.

What System Design Warning Signs Should You Look For?

  • No total panel DC capacity
  • No total inverter AC capacity
  • DC and AC capacities are treated as the same figure
  • No panel layout
  • No string arrangement
  • No MPPT allocation
  • No single-line diagram
  • No connection-point information
  • No cable-route information
  • No shading-loss consideration
  • No clipping discussion
  • No export-control design where required
  • No battery or backup architecture despite backup claims
  • Future expansion is promised without technical limits
  • System size is based only on available roof space
  • System size is based only on reducing the bill to zero
Design Area What Should Be Clear? Warning Sign
System Capacity Panel DC and inverter AC capacities are stated separately Only one unexplained kW figure is shown
Roof Layout Panel positions, orientations and exclusions are shown Maximum panel count is promised without a layout
Electrical Design Strings, MPPTs, protection and connection point are defined No electrical design document is included or promised
Battery Backup Battery, transfer equipment and protected loads are defined “Hybrid inverter” is presented as automatic whole-house backup
A Large System Is Not Automatically a Better System: Oversizing without considering electricity use, programme conditions, export treatment, roof constraints and inverter design may weaken the financial and technical outcome.

What Equipment Warning Signs Should You Check?

Equipment descriptions should allow the customer to understand exactly what will be supplied and what warranty applies.

  • Only the panel brand is stated
  • Only the inverter brand is stated
  • No exact model numbers
  • No quantity of panels
  • No wattage per panel
  • No inverter quantity or AC capacity
  • No equipment datasheets
  • No product-warranty documents
  • No performance-warranty terms
  • No mounting-material description
  • No protection-equipment description
  • No monitoring-equipment description
  • “Equivalent model” substitutions are unrestricted
  • Used or refurbished equipment is not addressed
  • Product origin is described inaccurately
  • Equipment availability is promised without reservation terms
Exact Model The proposal should identify the manufacturer, model, quantity, capacity and applicable warranty.
Substitution Control Any alternative should meet agreed technical and warranty requirements and require prior written customer approval.
Local Support The proposal should identify the Malaysian warranty or distribution channel where relevant.
Availability The contract should explain what happens if the specified model is unavailable before installation.
Brand Reputation Does Not Define the Supplied Product: Different models from the same manufacturer can have different capacity, efficiency, functions, warranty periods and service arrangements.

Which Generation and Savings Claims Are Warning Signs?

  • Guaranteed elimination of the electricity bill
  • Guaranteed fixed monthly savings
  • Guaranteed approval or export income
  • No annual-generation figure in kWh
  • No calculation assumptions
  • No self-consumption assumption
  • No export assumption
  • No shading or system-loss allowance
  • No annual degradation allowance
  • No equipment-downtime allowance
  • No maintenance-cost assumption
  • No inverter-replacement assumption
  • Very short payback without supporting calculations
  • Future tariff increases are presented as certain
  • Financing costs are excluded from payback
  • Projected savings are presented as contractual guarantees
Claim Reasonable Presentation High-Risk Presentation
Annual Generation Estimate supported by stated assumptions and losses One large number with no modelling basis
Electricity Savings Estimate based on tariff, usage and self-consumption Guaranteed bill reduction regardless of future use
Payback Period Calculation includes cost and stated assumptions Very short payback presented without a calculation schedule
Export Value Based on the applicable arrangement and stated assumptions Exported electricity is presented as guaranteed high income
Forecasts Should Be Transparent: Actual results can change with weather, electricity consumption, tariffs, export treatment, degradation, downtime, system faults and maintenance.

What Application and Approval Warning Signs Should You Check?

The proposal should distinguish the provider’s preparation and coordination responsibilities from decisions made by utilities, regulators or other approving parties.

  • Approval is described as guaranteed
  • No applicable programme is identified
  • No application responsibility is assigned
  • No customer-document requirements are listed
  • No technical-document requirements are listed
  • No technical-assessment requirement is discussed
  • Study fees are hidden or described vaguely
  • No response plan for application queries
  • No process if capacity is reduced
  • No process if the application is rejected
  • No responsibility for document corrections
  • No registered electrical-contractor documents mentioned
  • No competent-person documents mentioned
  • No testing or commissioning records mentioned
  • No Form G or Form H responsibility stated where applicable
  • Customer is asked to sign incomplete forms
1

Identify the Arrangement

Confirm which programme, self-consumption or grid arrangement is being proposed.

2

Identify Required Studies

Confirm whether a technical assessment or other study may apply and who pays for it.

3

Assign Document Responsibility

Separate customer documents from the provider’s technical, contractor, testing and certification documents.

4

Define Unsuccessful Outcomes

State the design, price, refund and cancellation process if the application cannot proceed as proposed.

No Private Company Controls Official Approval: A provider may prepare and coordinate the submission, but should not represent an external approval decision as unconditional or guaranteed.

What Pricing and Payment Warning Signs Suggest Higher Risk?

  • Price is valid only if payment is made immediately
  • Large deposit required before verification
  • Full payment required before equipment delivery
  • Most payment required before testing
  • No milestone definitions
  • No official invoice
  • No official receipt
  • No tax treatment stated
  • No breakdown of official fees
  • No list of excluded costs
  • No refund terms
  • No cancellation terms
  • No variation-order process
  • Installer may change price without customer approval
  • Financing cost is not disclosed
  • Payment account does not match the contracting entity
Payment Area Lower-Risk Approach Higher-Risk Warning Sign
Deposit Reasonable amount with written refund conditions Large non-refundable payment before assessment
Equipment Payment Linked to documented order, reservation or delivery Payment demanded without model or delivery evidence
Installation Payment Linked to verified physical progress Nearly full payment required before work begins
Final Payment Linked to testing, commissioning and complete handover No amount retained for defects or missing documents
Urgency Can Prevent Proper Verification: A limited promotion may be genuine, but pressure to pay immediately should not prevent the customer from checking the company, equipment, scope, exclusions, warranties and payment account.

What Roof and Installation Warning Signs Should You Check?

  • No pre-installation roof-condition record
  • No roof photographs
  • No mounting method described
  • No waterproofing method described
  • No responsibility for broken tiles or sheets
  • No roof-leak responsibility
  • No workmanship-warranty period
  • No structural consideration for a questionable roof
  • No wind-load consideration
  • No corrosion consideration
  • No drainage clearance
  • No safe maintenance access
  • No cable-support description
  • No protection or earthing description
  • No scaffolding or lifting allowance
  • No process for correcting installation defects
Existing Defects Cracks, leaks, corrosion and damaged roofing should be recorded before installation.
Installation Damage The proposal should state who repairs damage caused by mounting, walking, drilling, cabling or equipment handling.
Roof Leakage Coverage, response time, investigation, repair responsibility and exclusions should be written.
Future Roof Work The likely cost and responsibility for removing and reinstalling the system should be addressed.
“No Roof Penetration” Should Be Explained: Different roof types use different mounting methods. The provider should explain the actual attachment and waterproofing approach rather than rely on a broad marketing claim.

What Warranty and After-Sales Warning Signs Should You Check?

  • Warranty is described only verbally
  • No written workmanship warranty
  • No roof-leak warranty
  • No Malaysian warranty contact
  • No responsibility for warranty registration
  • No claim-submission responsibility
  • No diagnosis responsibility
  • No warranty-labour terms
  • No transport-cost terms
  • No removal or reinstallation terms
  • No expected replacement lead time
  • No after-sales response target
  • No monitoring support terms
  • No support arrangement if the installer closes
  • Product warranty is presented as complete system coverage
  • Long warranty claims are unsupported by written documents
Warranty Area What Should Be Clear? Warning Sign
Product Warranty Covered defects, period and claim procedure Only a warranty-year number is shown
Workmanship Warranty Covered installation defects and correction duty No written installer responsibility
Warranty Labour Diagnosis, access, transport, removal and reinstallation Customer is told all warranty work is “free” without detail
After-Sales Support Contact, response process and applicable charges Customer is told to contact the manufacturer directly
A Long Warranty Is Not Enough: Practical value depends on local support, claim administration, replacement stock, labour coverage and the financial ability of the responsible company to honour its obligations.

How Can You Classify Solar Proposal Risk?

Risk Level Typical Indicators Suggested Response
Lower Risk Verified company, clear design, exact equipment, defined scope, balanced payments and written warranties Continue detailed comparison and contract review
Moderate Risk Some missing details, assumptions or exclusions that can be corrected in writing Request a revised proposal before paying or signing
High Risk Identity mismatch, vague system, guaranteed claims, major upfront payment and no accountable technical or warranty party Pause the transaction and independently verify all material claims
Unacceptable Risk False documents, misleading identity, unauthorised payment recipient or refusal to provide basic written information Do not proceed and preserve all records of the communication
Risk Is Cumulative: One missing detail may be correctable. Multiple connected concerns—such as an unclear company, vague equipment, guaranteed savings and an urgent large deposit—create a substantially higher overall risk.

What Should You Do When You Find Warning Signs?

1

Pause Payment

Do not make a deposit until the contracting entity, payment recipient and proposal scope have been verified.

2

Request Written Clarification

Ask the provider to correct missing company, technical, equipment, payment and warranty information.

3

Verify Independently

Check registrations, company information, technical parties, equipment documents and warranty channels independently.

4

Compare Equivalent Proposals

Obtain alternatives using the same system capacity, equipment expectations, scope, warranties and payment structure.

5

Revise the Contract

Ensure important representations become written contractual obligations rather than sales promises.

6

Walk Away When Necessary

Do not proceed when a provider refuses reasonable verification, written clarification or accountability.

Do Not Rely on Deleted or Temporary Messages: Preserve the quotation, contract, equipment schedule, warranty claims, payment instructions and important representations in durable written form.

What Should You Ask Before Accepting a Solar Proposal?

  1. What is the exact legal name of the contracting company?
  2. What is its SSM registration number?
  3. Does the payment account belong to the contracting entity?
  4. Who is the responsible RPVSP, where applicable?
  5. Which registered electrical contractor will perform the work?
  6. Which competent person will supervise or certify the installation?
  7. Has the roof been assessed?
  8. Has the electrical installation been assessed?
  9. What are the exact panel and inverter models?
  10. What are the total panel DC and inverter AC capacities?
  11. Where is the panel layout?
  12. What assumptions support the generation estimate?
  13. What assumptions support the savings estimate?
  14. Which services are included?
  15. Which services and fees are excluded?
  16. Is a technical assessment likely to be required?
  17. Who pays technical-study and utility fees?
  18. What happens if a lower capacity is approved?
  19. What happens if the application is rejected?
  20. Can equipment be substituted without written approval?
  21. What triggers each payment?
  22. How much is payable before equipment delivery?
  23. How much is retained until testing and handover?
  24. Who is responsible for roof damage or leakage?
  25. How long is the workmanship warranty?
  26. Does warranty coverage include labour?
  27. Who handles future warranty claims?
  28. What Malaysian after-sales support is available?
  29. What documents will be provided at handover?
  30. What are the cancellation and refund terms?

High-Risk Solar Proposal Final Checklist

  • Unclear legal company identity
  • Unrelated payment recipient
  • No official invoice or receipt
  • No responsible technical parties
  • No meaningful site assessment
  • No accurate electricity review
  • No exact equipment models
  • No DC and AC capacity distinction
  • No system layout or design
  • Guaranteed approval
  • Guaranteed bill elimination
  • Unsupported savings or payback
  • Hidden technical-study fees
  • Unclear application responsibility
  • Large upfront payment
  • No milestone-based payment schedule
  • Unrestricted equipment substitutions
  • No roof-condition record
  • No roof-leak responsibility
  • No workmanship warranty
  • No warranty-labour terms
  • No Malaysian support contact
  • No testing and commissioning scope
  • No handover-document list
  • No cancellation or refund procedure
  • Pressure to sign immediately
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What Is Solar100’s Role in Proposal Risk Comparison?

Solar100

  • Supports solar-provider discovery
  • Helps customers organise initial project information
  • Supports initial quotation comparison
  • Highlights common proposal warning signs
  • Helps identify differences in scope and warranties
  • Does not certify a proposal as risk-free
  • Does not perform engineering or legal due diligence
  • Does not guarantee provider performance

Selected Solar Provider

  • Verifies its legal and registration information
  • Assesses the property and electricity account
  • Prepares the project-specific design and proposal
  • Identifies responsible technical parties
  • Explains application responsibilities and limitations
  • Provides the agreed equipment and installation
  • Provides written warranties and support terms
  • Remains responsible for its contractual commitments

Frequently Asked Questions

Does a very cheap solar proposal always mean high risk?

No. A lower price may be legitimate, but the capacity, equipment, scope, exclusions, payment structure, warranties and support should be compared on equivalent terms.

Is a large solar deposit a warning sign?

It can be. The proposal should explain what the deposit pays for, when it becomes non-refundable and what evidence or deliverable the customer receives.

Can a solar installer guarantee Solar ATAP approval?

A provider may prepare and coordinate the application, but an official approval outcome should not be represented as unconditional or guaranteed.

Is it risky if the proposal does not state exact equipment models?

Yes. Without exact models, the customer cannot properly compare capacity, technical compatibility, functions, warranty or replacement support.

Is guaranteed electricity-bill elimination realistic?

It should be treated cautiously. Actual bills depend on consumption, solar production, tariffs, export treatment, fixed charges, downtime and future operating conditions.

Should the proposal identify the electrical contractor?

The responsible electrical contractor and competent technical parties should be identifiable for the applicable electrical work, testing and certification.

Is a long equipment warranty enough?

No. The customer should also check Malaysian claim support, diagnosis, transport, removal, reinstallation, replacement time and workmanship coverage.

What should I do if the company name and bank account differ?

Pause payment and request a documented explanation. Verify the legal relationship and confirm which entity remains responsible for the contract and warranties.

Can one missing detail be corrected?

Often, yes. Ask for a revised written proposal. Risk becomes more serious when the provider refuses clarification or several important warning signs appear together.

Does Solar100 guarantee that a listed provider is risk-free?

No. Solar100 supports provider discovery and initial comparison but does not guarantee proposal accuracy, technical design, approval, financial condition, installation quality or future service performance.

The information on this page is provided for general educational and comparison purposes. A warning sign does not by itself prove fraud, illegality, insolvency, technical incompetence or contractual breach. Likewise, the absence of the warning signs listed does not guarantee that a company, proposal or project is safe, suitable or reliable. This page is not legal advice, engineering due diligence, financial advice, electrical certification, registration verification, application approval, fraud investigation, installer endorsement or a guarantee of project completion, generation, savings, workmanship, warranty performance or dispute outcomes. Company information, registration status, programme procedures, technical requirements, official fees, forms, equipment availability and warranty arrangements may change. Customers should independently verify the legal company, payment recipient, responsible technical parties, equipment, complete proposal, contract, current official requirements and written warranties before signing or paying. Solar100 is a provider-discovery and quotation-comparison platform. It is not the installer, electrical contractor, competent person, engineer, equipment manufacturer, warranty provider, electricity utility, regulator, lawyer, auditor, insurer, lender, investigator or approving authority and does not guarantee provider or contractual performance.

Check and Compare Your Solar Proposal

Send your recent electricity bills, property location, proposed system capacity, panel and inverter models, existing quotations, payment schedule, warranty terms and exclusions to begin comparing proposal scope and identifying questions that should be clarified before you proceed.

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