NS solar panel installers want Ottawa to speed up the pace of payments

Some Nova Scotia solar contractors say the viability of their businesses is threatened by long waits to get paid through a federal program that encourages homeowners to improve energy efficiency.

The Canada Greener Homes Loan program offers homeowners a 10-year, interest-free loan of up to $40,000 for projects such as solar energy.

The the program website says payment takes 10 days after a job is completed.

“That’s never been close to what’s come to fruition,” said John Jennex, executive director of Solar Nova Scotia.

Contractors CBC News spoke to said the average wait time to get paid is about three months, but some have seen up to eight months.

Substantial costs up front

“It’s been very difficult for a lot of installers, especially smaller ones that just don’t have the cash flow to float these jobs,” said Jennex, who is also the president of Hammonds Plains-based installer Solar Ascent.

Jennex said the average installation his company does costs about $35,000, with much of the cost tied up in parts.

To participate in the Greener Homes Loan program, homeowners must follow a series of steps, including obtaining a home energy audit and getting quotes from installers. They must sign up through the program’s portal.

If all goes well, contractors say it can take about two months for a homeowner to start the application process and complete installation.

“It’s been a real struggle lately,” said Brian McKay, the president of Aztek Solar, a nine-employee company based in Lower Sackville, NS.

He said sales are up about 300 to 400 percent this year thanks to Greener Homes’ programs. (Greener Homes also has a separate grant program.)

“We just can’t keep up. We can’t fund all the jobs that we do,” McKay said. “It is very difficult.”

He said the long wait to get paid has forced the company to get bridge financing.

While the Canada Greener Homes Loan program allows up to 15 percent of project costs to be advanced to the contractor, Jennex called it “a drop in the ocean.”

He would like to see Natural Resources Canada – the division that oversees Greener Homes – expedite payment once projects are completed.

In a statement, a spokesperson for the department declined to answer a question about how long it takes on average for payment to be made under the program, and whether steps are being taken to expedite payment.

“In the instances where homeowners experience delays in processing their files due to system bottlenecks, we encourage them to share their information with us,” the statement said.

Nova Scotia Power Problems

Adding to the grievances of solar contractors is that jobs are taking longer to complete due to delays in obtaining permits and booking inspections through Nova Scotia Power.

Jackie Allen, territory manager for Watts Up Solar in Wilmot, NS, called Nova Scotia Power one day at 8 AM AT and was 74th in line. By the end of the day at 6pm she was in second spot and cut off.

“Every day that you don’t get through, that’s 74 other permits or inspections that have been booked and now your customer is another day behind, right?” she said.

Nova Scotia Power says it is working to address delays and has hired 15 more employees.