Merchant Accounts for Solar Panel Companies: A Complete Guide
Published - 07 January 2025
Revised - 18 July 2025
Written by Libby James
Libby James is the founder and Managing Director of Merchant Advice Service. Since 2016, she has worked directly with businesses and payment providers across merchant accounts, card processing, payment gateways and complex provider requirements.
Libby specialises in high-risk, declined and harder-to-place merchants, as well as businesses requiring specialist payment methods, integrations or international support. She writes and reviews Merchant Advice Service content, drawing on practical experience gained from real merchant enquiries and provider relationships.
Solar Panel Payment Processing
The solar panel industry is thriving as more people adopt sustainable energy solutions. However, solar panel businesses face unique challenges when setting up merchant accounts. Here’s everything you need to know about why these companies are considered high-risk, what’s involved in the application process, and how pricing works for high-risk merchants.
Why Are Solar Panel Companies High Risk?
Merchant account providers classify solar panel companies as high-risk for several reasons:
- Large Transaction Sizes: Solar panels are expensive, and big transactions increase the financial risk for providers.
- Delayed Delivery: There’s often a long gap between order placement and installation, increasing the risk of disputes.
- MOTO (Mail Order/Telephone Order): Payments taken over the phone are more prone to fraud and chargebacks, as the card isn’t physically present.
- Non-Delivery Risks: If a project is delayed or the company faces financial instability, customers might dispute payments, leading to potential losses for the payment processor.
Why Merchant Account Providers Decline or Terminate Solar Accounts
Declined and terminated accounts are common amongst Solar Panel companies. Providers may hesitate to work with solar panel businesses due to:
- High Chargeback Rates: Frequent disputes signal risk and instability.
- Inadequate Processing History: A lack of experience with payment processing can make providers wary.
- Weak Financial Stability: Providers prefer businesses with a stable financial footing.
- Non-Compliant Policies: Missing or unclear terms, refund policies, or cancellation policies can raise red flags.
Payment Methods for Solar Panel Companies
Offering multiple payment options is vital for customer convenience and smooth transactions. Common methods include:
- MOTO: Great for taking deposits or payments over the phone.
- Face-to-Face (F2F): Portable card machines are ideal for in-person consultations or showroom payments.
- Pay by Link: Send secure payment links via email or text, allowing customers to pay online. These integrate easily with invoicing systems.
What to Expect When Applying for a Merchant Account
Getting a merchant account for a solar panel business involves submitting specific paperwork. Be prepared to provide:
- Proof of ID for all directors or shareholders owning more than 25% of the business.
- Proof of a business bank account.
- Proof of directors’ residential addresses.
- Proof of the business address.
- Six months of processing history, if applicable.
- Terms and conditions for your business.
- A refund and cancellation policy.
Having clear and comprehensive documentation reassures providers that your business is legitimate and reliable.
Pricing for Solar Panel Companies
As a high-risk business, your pricing structure will differ from standard low-risk companies. Here’s what you can expect:
- Higher Transaction Fees: Due to the perceived risk, rates may be slightly higher than average.
- Rolling Reserves: A percentage of your transactions (e.g., 10%) might be held for a set period, such as 180 days, to protect against chargebacks.
- Delayed Settlements: It’s common for high-risk merchants to experience longer waits before funds are deposited into their accounts.
- IC++ Pricing Structure: Solar panel companies often fall under IC++ pricing, where acquirers add a margin on top of interchange and scheme fees. Understanding this structure is essential for managing cash flow. If you’re unsure, don’t hesitate to ask for help.
Wrapping It Up
While getting a merchant account for a solar panel business can be challenging, it’s manageable with the right preparation. By offering diverse payment methods, maintaining clear policies, and being proactive with documentation, you can set your business up for success. If you’re unsure where to start or need tailored advice, our team is here to help guide you through the process.
FAQs
Why are solar panel companies considered high risk?
High transaction values, delayed delivery, and MOTO payments increase risk for payment providers.
What happens if my application is declined?
You can work with high-risk specialist providers who cater to industries like yours. Search The Payments Directory® today.
What is a rolling reserve?
It’s when a provider holds a percentage of your transactions for a set time to protect against chargebacks.
How long does it take to get a merchant account?
Usually 1–3 weeks, depending on your documentation and the provider’s processes.
Are fees higher for high-risk businesses?
Yes, transaction fees and other costs are typically higher for high-risk merchants.
What payment methods work best for solar panel companies?
A mix of MOTO, face-to-face payments, and pay-by-link options is recommended.
Can I switch providers later?
Yes, but check your contract for any early termination fees before switching.
How can I lower my processing fees?
Keep chargeback rates low, have clear business policies, and review your account terms regularly with your provider.
Written or reviewed by Libby James, founder of Merchant Advice Service and specialist in merchant payments and complex provider requirements.
