Solar panel installers can have a more complex payment profile than a conventional retailer.
Customers may pay deposits or substantial balances before installation, transaction values can be high and there may be several weeks or months between payment and completion of the work.
This does not mean every solar business is automatically classed as high risk. Payment providers normally assess the individual business, including transaction values, deposits, installation lead times, outstanding customer orders, refunds, chargebacks, trading history and financial strength.
Solar companies should therefore compare merchant accounts on provider appetite, settlement, payment methods, reserve terms, high-value transaction support and the way the payment provider assesses future-delivery exposure — not simply the headline transaction rate.
Why can solar panel companies be harder to place for card processing?
The main issue is usually the structure of the customer journey rather than solar panels themselves.
A typical residential installation might involve:
customer accepts quotation → deposit is taken → equipment is ordered → survey or installation is scheduled → further payment is collected → system is installed → final balance is paid
During this process, the payment provider may be exposed to transactions that have already settled even though the underlying installation has not yet been completed.
Factors an underwriter may consider include:
- average transaction value;
- maximum transaction value;
- monthly card turnover;
- deposit percentage;
- how far in advance customers pay;
- average installation lead time;
- the value of paid but incomplete installations;
- refund and cancellation rates;
- chargeback history;
- supplier arrangements;
- trading history;
- company financial strength;
- previous payment-processing history; and
- whether consumer finance is offered.
Are solar panel companies automatically high risk?
No.
Provider appetite varies considerably.
An established installer taking modest deposits, completing work quickly and maintaining low refunds and chargebacks may present a very different risk profile from a new business collecting large advance payments for installations due several months later.
The payment provider is likely to look at the complete merchant profile rather than simply deciding based on the sector name.
This is why the same solar business may be accepted by one provider and declined by another.
Our High-Risk Merchant Accounts guide explains how provider risk appetite differs between acquirers.
Future-delivery risk for solar panel installers
Future-delivery risk exists where customers pay before the merchant has fully delivered the goods or services.
Solar installation is a good example because payment and fulfilment do not necessarily happen on the same day.
Consider an installer that has:
- £200,000 of monthly card turnover; and
- £500,000 of customer payments relating to installations that have not yet been completed.
The second figure may be particularly important to an underwriter.
The provider may want to understand what would happen if the business could not complete those installations and customers requested refunds or raised disputes.
Merchant Advice Service refers to this as future-delivery exposure.
Read our Future-Delivery Risk guide for a more detailed explanation.
How should solar installers structure deposits and staged payments?
There is no single payment structure that suits every installer.
A business might collect:
- a small initial deposit;
- a further payment when equipment is ordered;
- a payment before installation;
- a final balance when installation is complete; or
- another agreed milestone-based structure.
From a payment-processing perspective, the important questions are:
- how much money is collected before work is completed;
- how long that money remains outstanding against future installation;
- how payments are linked to individual customer projects;
- what happens when an installation is delayed;
- how refunds are managed;
- how cancelled projects are recorded; and
- how the outstanding balance is collected.
A provider may be more comfortable where the business can clearly explain and evidence this payment journey.
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High-value card payments for solar installations
Solar installations can generate much larger transactions than an ordinary retail business.
Average transaction value and maximum transaction value should both be discussed with the payment provider.
For example, an installer might usually collect £1,500 staged payments but occasionally take a £12,000 card transaction.
That difference matters.
If a merchant account has been approved on the basis of significantly smaller transactions, an unusually large payment can trigger review or requests for additional information.
Solar companies should therefore disclose realistic transaction values during the application process.
For more information, see our High-Ticket Merchant Services guide.
What payment methods can solar panel companies use?
The right payment setup depends on how customers buy and where payments are collected.
Pay by Link
Payment links can be particularly useful for solar installers.
The business can send a secure payment request to the customer by email or text for:
- a deposit;
- a staged payment;
- an outstanding invoice;
- a final balance; or
- another agreed payment milestone.
This can be more practical than taking card information manually over the telephone.
Read our Pay by Link guide for more information.
Face-to-face payments
Some solar businesses take payments during consultations, at showrooms or from customers following completion of an installation.
A card terminal may therefore still form part of the payment setup.
Telephone payments
Some installers use a virtual terminal or MOTO facility to take eligible payments over the telephone.
These transactions are card-not-present payments and the business should understand the provider's pricing, fraud controls and PCI requirements.
Online payments
Larger installers may allow customers to make deposits or invoice payments through a website or customer portal.
This may require a payment gateway alongside the merchant acquiring relationship.
Solar installation payments and customer finance
Card processing and consumer finance are separate products.
A solar installer might allow a customer to:
- pay by debit or credit card;
- pay by bank transfer;
- make staged payments;
- use finance from a third-party lender; or
- use a combination of payment methods.
If the business introduces consumers to third-party finance providers, it should establish whether its activities constitute regulated credit broking and which FCA permissions or arrangements apply.
The regulatory position depends on the activity and circumstances, so the business should not assume that accepting card payments and arranging customer finance are covered by the same regulatory framework.
This is particularly important for businesses selling goods or services to customers in their homes.
Why merchant account providers look at installation lead times
A payment provider may ask how long it normally takes between receiving customer money and completing an installation.
An installer completing projects within two weeks creates a different future-delivery profile from one taking substantial payments for work scheduled four months later.
The provider may ask for:
- average installation lead time;
- maximum installation lead time;
- number of open customer orders;
- value of deposits currently held;
- value of customer payments relating to unfinished installations;
- supplier lead times;
- seasonal changes in order volume; and
- evidence showing completion of previous installations.
This is why monthly card turnover alone does not always give an underwriter enough information.
What documentation may a solar installer need?
Requirements vary between payment providers, but a more complex application may require information such as:
- company registration details;
- director and beneficial-owner information;
- business bank account evidence;
- processing statements from the existing provider;
- company accounts or management information;
- website details;
- terms and conditions;
- cancellation and refund policies;
- deposit structure;
- installation lead times;
- average and maximum transaction values;
- chargeback and refund history;
- supplier arrangements;
- details of certifications or consumer-protection schemes where relevant; and
- information about any customer-finance arrangements.
A clear application allows the provider to understand the actual business rather than making assumptions based purely on the sector.
Can a solar installer be asked for a rolling reserve?
Potentially.
A rolling reserve is one mechanism a payment provider may use to manage possible future payment liabilities.
It is not automatic and there is no universal percentage that applies to every solar installer.
If a provider proposes a reserve, ask:
- what percentage will be retained;
- how long each amount will be held;
- whether there is a maximum reserve value;
- when retained funds are released;
- what could cause the reserve to increase;
- whether the arrangement can be reviewed later; and
- whether alternative settlement terms are available.
Reserve terms should be considered alongside transaction pricing because they can materially affect cash flow.
Read our Rolling Reserve guide for more information.
Can settlement be delayed?
Yes, depending on the provider and merchant profile.
Some payment providers may apply longer settlement periods where they believe additional acquiring exposure exists.
For a solar installer paying suppliers, installers and subcontractors, settlement timing can be commercially important.
Compare:
- standard settlement period;
- whether settlement changes for large transactions;
- whether reserves apply;
- whether individual payments can be held for review;
- weekend and bank-holiday settlement; and
- how quickly unusual transactions are investigated.
Chargebacks for solar panel companies
Chargebacks can arise where a cardholder disputes a payment through their card issuer.
For solar installers, possible dispute scenarios can include:
- installation not completed;
- significant delays;
- cancellation disagreements;
- refund disputes;
- a customer claiming the service was not supplied as agreed;
- unauthorised transactions; or
- other disagreements about the customer contract.
Good records can help the business respond to disputes.
These may include:
- signed contracts;
- quotations;
- payment schedules;
- customer correspondence;
- survey records;
- installation dates;
- completion evidence;
- delivery records;
- refund records; and
- evidence of customer approval where relevant.
Our Chargeback guide explains the wider dispute process.
What if a solar panel merchant account has been declined?
A decline from one provider does not necessarily mean another provider will reach the same decision.
Possible reasons for a decline include:
- future-delivery exposure outside the provider's appetite;
- high transaction values;
- large deposits;
- long installation times;
- insufficient processing history;
- financial information;
- refund or chargeback history;
- website or policy concerns;
- consumer-finance arrangements;
- previous account termination; or
- an incomplete application.
Before submitting the same application repeatedly, establish what caused the original decline.
Our High-Risk Merchant Account Applications guide explains how more complex applications can be prepared.
What if an existing payment provider terminates the account?
Solar installers can experience significant disruption if a processor withdraws service because outstanding customer projects may still require deposits or final payments.
If termination occurs, establish:
- the termination date;
- whether existing settlements will continue;
- whether funds are being held;
- whether reserves remain in place;
- which payment methods will stop working;
- whether stored payment credentials are affected;
- the reason given for termination; and
- what information another provider is likely to request.
Do not submit multiple new applications without first understanding the underlying issue because repeated declines do not improve provider fit.
Consumer protection and solar installations
Solar PV installations can involve significant household expenditure, so customer contracts, sales processes and refund arrangements should be clear.
The Competition and Markets Authority publishes consumer guidance covering green home improvements including solar panels and highlights protections that apply throughout the buying, installation and post-installation journey.
For payment underwriting, this matters because unclear customer terms, aggressive sales practices or a high level of unresolved complaints can increase the likelihood of refunds and disputes.
Solar businesses should ensure their commercial practices and customer documentation reflect the legal and consumer-protection requirements applying to their particular activities.
What should solar panel companies compare between payment providers?
Do not compare providers on transaction price alone.
Consider:
- provider appetite for solar installers;
- future-delivery tolerance;
- average and maximum transaction limits;
- deposit structure;
- settlement periods;
- reserve requirements;
- high-value transaction support;
- pay-by-link capability;
- virtual-terminal or MOTO support;
- online-payment capability;
- refund fees;
- chargeback fees;
- payment reporting;
- PCI requirements;
- contract length;
- termination costs;
- support; and
- the complete cost of processing.
The provider should fit the actual payment journey rather than simply offering an attractive headline rate.
Find Suitable Merchant Account Providers
Choosing a merchant account for a solar panel company
Start by mapping the customer payment journey.
For example:
quotation accepted → deposit → survey → equipment ordered → staged payment → installation → completion → final balance
Then document:
- how much customers pay at each stage;
- how long each stage normally takes;
- the maximum outstanding customer exposure;
- how payments are collected;
- how refunds are managed;
- average and maximum transaction values;
- what happens if an installation is delayed;
- whether customer finance is offered; and
- what reporting the business needs.
This gives potential payment providers a much clearer picture of the business and makes it easier to identify providers whose underwriting appetite matches the actual merchant profile.
Merchant Advice Service helps businesses understand their payment requirements before introducing them to payment providers that may be suitable.
Sources & References
About Merchant Advice Service
Merchant Advice Service (MAS) provides independent information, comparison and provider-matching support for UK businesses looking for payment services.
We help businesses understand their payment requirements before introducing them to providers that may be suitable. MAS does not provide payment processing services directly.
Disclosure: Merchant Advice Service may receive commission from payment providers following a successful introduction. This does not increase the price paid by the merchant and does not determine which providers are included in our editorial guidance.
