Solar installer deposit protection in Perth: what to pay and what protection you have
Consumer Protection WA recommends capping a solar deposit at 10%, though Perth installers commonly ask for more. This guide covers the legal limits, what protection you have if an installer fails to complete the job or goes out of business, and what to check before paying a deposit.
Consumer Protection WA recommends paying no more than 10% upfront on a solar deposit. A stricter 6.5% cap applies by law under the Home Building Contracts Act 1991, but only to "home building work" contracts of $7,500 or more, and most solar installs on an existing home don't meet that definition. So for most Perth solar buyers, the 10% figure is the one that actually applies, and most Perth solar installers ask for more than that anyway: deposits of 10-30% of the total system cost are common, with the balance due on or after installation. Here's how to tell a reasonable deposit from a risky one, and what protection you have either way.
How much deposit is normal for solar in Perth?
| Deposit level | What it means |
|---|---|
| Up to 6.5% (home building work contracts $7,500+) | The legal ceiling under the Home Building Contracts Act 1991, though most solar installs on an existing home fall outside this definition |
| Up to 10% | Consumer Protection WA's recommended maximum |
| 10-30% | Common in Perth solar industry practice, above the regulator's recommended ceiling |
| 50%+ | Unusually high. Ask the installer to explain why |
| Full payment in advance | Avoid unless you have a long, trusted relationship with the installer |
Example: A $12,000 system with a 20% deposit means $2,400 upfront and $9,600 on completion. That's above Consumer Protection WA's recommended 10% ceiling, but it's within the range Perth installers commonly ask for on a mid-sized system. Because a solar install like this generally isn't "home building work" under the Home Building Contracts Act, the 6.5% legal cap doesn't apply here, so a 20% deposit isn't unlawful, just higher than the recommended guideline.
Installers with full order books and equipment pre-ordered ahead of your install may reasonably sit at the higher end of that 10-30% range. A newer installer, or one offering an unusually cheap quote, asking for a high deposit is a reason to ask more questions rather than a reason to walk away automatically. Checking the installer's credentials before you sign is how you tell the difference between a legitimate higher deposit and a risky one.
What protection do Perth solar buyers have?
1. Australian Consumer Law (ACL)
Your solar contract is subject to the Australian Consumer Law. Under the ACL:
- The system must be "fit for purpose" and match its description.
- If the installer fails to complete the installation as contracted, you have remedies, including a refund of the deposit.
The ACL applies regardless of what the contract says. Contract terms that try to waive ACL rights aren't enforceable.
2. Building and Energy
Solar electrical installation in WA requires a licensed electrical contractor. If the installer isn't a licensed electrical contractor (or isn't working with one), the installation is non-compliant and the work may need to be redone. Building and Energy can be contacted if you suspect unlicensed work.
3. Solar Accreditation Australia (SAA) accreditation
SAA-accredited installers must meet SAA's training and assessment standard, and this accreditation is what the WA Battery Scheme and STC rebate require. The Clean Energy Council separately administers the New Energy Tech Consumer Code (NETCC), covering fair contract terms and complaint handling for NETCC Approved Sellers. If an NETCC Approved Seller fails to perform, the NETCC complaint process is a route to resolution, though it isn't a compensating authority: it investigates and can act on the seller's accreditation, it doesn't refund you directly.
4. Credit card payment protection
If you pay your deposit by credit card, you're protected by the card scheme's chargeback rules (Visa, Mastercard and similar), enforced through your bank rather than by a specific consumer-credit law. If an installer collapses or fails to deliver after taking your deposit, you can lodge a chargeback claim with your bank, typically within 45 to 120 days of the transaction. If the bank refuses the claim, you can escalate to the Australian Financial Complaints Authority or Consumer Protection WA.
Paying by bank transfer (EFT) gives you no equivalent protection. If the installer fails, recovering an EFT deposit is through civil process only, which is slower and less certain.
What should you check before paying a deposit?
1. Is the installer SAA-accredited? Verify at saaustralia.com.au, a free public lookup. An SAA-accredited installer has passed training requirements and carries the accreditation the WA Battery Scheme and STC rebate require. Our guide to checking an installer's credentials walks through this lookup step by step.
2. Is the company registered (ABN active)? Check the ABN at abn.business.gov.au. Verify the ABN on the quote matches the company's registered name. A quote from an unregistered business, or one with a recently cancelled ABN, is a flag.
3. Does the installer have a physical Perth presence? An installer with a local Perth address, physical premises, and a trackable history is lower-risk than an interstate company with no local office presence.
4. What are the payment milestone terms? Your contract should set out what triggers the balance payment, typically "on practical completion of installation" or "after connection to grid." Avoid contracts that demand the full balance before final commissioning.
5. How long has the company been operating? A business with 5+ years of Perth operations and traceable reviews (Google, ProductReview) is lower risk than a new entrant offering the lowest price. Our guide to choosing a solar installer covers the rest of the vetting checklist, and these are the questions worth asking before you sign anything.
What happens if your installer fails mid-job?
The installer takes your deposit and disappears: Lodge an ACL complaint with Consumer Protection WA (consumerprotection.wa.gov.au) and start a credit card chargeback if you paid by card. If the deposit amount is significant, consult a consumer law lawyer. Our guide for when an installer goes out of business covers this scenario in detail.
The installer completes the physical install but doesn't arrange connection: Western Power approval and Synergy metering are installer responsibilities. If the installer is non-responsive after installation, contact Western Power and Synergy directly. They can advise on the connection status.
The installer completes the job but the system underperforms: This is typically a warranty claim. Document it with monitoring data and escalate via the ACL remedies, or the panel or inverter manufacturer's warranty directly if the installer is unresponsive. If a direct complaint to the installer goes nowhere, our complaint escalation guide sets out the next steps.
Which payment method should you use?
- Deposit: Credit card where possible, for the chargeback protection.
- Balance: Bank transfer on confirmed commissioning is standard.
Consumer Protection WA recommends capping your deposit at 10%. A 6.5% legal cap under the Home Building Contracts Act 1991 applies to home building work contracts of $7,500 or more, but most solar installs fall outside that definition, so the 10% figure is what actually applies for most Perth solar buyers. Perth installers often ask for more anyway, up to around 30% for larger systems, which isn't necessarily a red flag on its own. The real protections are checking SAA accreditation, paying the deposit by credit card, and confirming the balance is only due after commissioning. If an installer asks for 50%+ or full payment upfront without a long, trusted track record, that's when to pause and ask questions.
Money-relevant figures in this article are checked against primary sources. Here’s how we check our facts.
Get more WA energy tips
Leave your email and we'll send tips on solar, batteries, tariffs, and saving money on bills, only when there's something worth sharing.
Calculate your savings
See how much you could save with solar, batteries, and smart tariff choices
Ready to reduce your energy bills?
Get personalised recommendations and free quotes from trusted local installers in Western Australia.