As Solar Rises to the Top, So Do Cons

Scams thrive on innovative thinking and emerging industries, which is why the renewable sector should be on its toes, particularly the solar industry.

The Australian Securities and Investments Commission (ASIC) has begun an investigation against three companies and one individual, Sunenergy Asia Pacific Pty Ltd, ACN 124 647 909 Ltd. (previously known as Sun Energy Ltd.), Sunenergy Inc., and John Ernest Price. ASIC said, “ASIC has commenced proceedings in the Federal Court of Australia against three companies and one individual alleging they have engaged in misleading and deceptive conduct in relation to offers of financial products to Australian investors.”

Australia’s Sydney Morning Herald reported that Sunenergy had been trying to accrue R150 million with two separate fundraising attempts in South Africa. The newspaper also reported that many of the so-called directors listed on the Sunenergy website had left the board after it was restructured in 2005. Sunenergy’s site has either broken links (the language selection at the top right) or tabs say “under construction” (Solar Farms and Investors). In addition, all the thumbnails present at the bottom of the page offer no explanation nor can they be clicked for enlargement with a possible blurb to explain the relationship of a German building and flag under the applications tab. Perhaps the company installed solar panels to help the building generate electricity, but after the other inconsistencies, the likelihood of that is next to impossible.

The company also claims to be present in 25 countries having strong ties with the US military in order to provide renewable energy applications. It isn’t far-fetched for a company to tout such feats as the US military as the Marine Corp. working on renewable energy efforts in Morocco and the Air Force has been actively looking for ways to decrease its dependency on crude for its fighter jets, cargo planes, and daily operations with its first demo taking place in South Africa.

Although investigations are currently underway and the level of fraud has yet to be determined, it is important to research any company and/or organization before going into business. The ambiguity of Sunenergy’s site should be seen as a guide in order to avoid similar cons. As the renewable energy industry continues to make headlines, so will dodgy activities led by people trying to make a quick buck.

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