Fake power is a crime of embezzlement and harms the market

The growing presence of photovoltaic modules known as “fake power” – that do not deliver the expected power as stipulated in the datasheet – has been causing big concern between professionals in the solar energy sector. 

Sources heard by Canal Solar report that a factor that contributes to the increase in the presence of these modules on the market is that the The price of these panels is well below the current price on the market, which results in an “attractive” alternative.

However, the Initial savings could be a big source of headaches in the future as projects that use this type of module will perform poorly, resulting in long-term losses. Not to mention the discredit that will fall on the company that offers this type of product, and even eventually, on the solar market as a whole.

What is fake power? 

To speak in simple language, for example: The product is marketed with a 550W label, but is actually a 500W module. 

A point to highlight is that, although these modules have gone through the Inmetro (National Institute of Metrology, Standardization and Industrial Quality) certification processes, the Evaluation tests are carried out on a few samples of these products, commonly called “golden samples” (from free translation: gold samples – an allusion to the fact that they are special samples, made only to pass certification tests) and the real quality problem only reveals itself in the operation of the plant, which will use modules from the mass production line , which have not been tested.

This scenario, however, is not something that only occurs today. The subject has already been discussed in the article “How do you know if a photovoltaic module is real?”, published by professor Marcelo Villalva in 16nd edition of the Magazine Canal Solar.

Fraud of fraud

According to a Thiago Bao Ribeiro, lawyer specializing in the solar energy sector and partner at Bao Ribeiro Advogados, marketing and installation of products fake power is considered a crime of embezzlement, since the consumer is deceived with false product information, misleading the module's offer. 

O fraud crime is provided for in the Decree-Law No. 2.848, of December 7, 1940 with imprisonment of one to five years.

Art 171 – Obtain, for oneself or for others, an illicit advantage, to the detriment of others, by inducing or keeping someone in error, through artifice, ruse, or any other fraudulent means.

Furthermore, he explains that not only the distributor but also the integrator are responsible for providing the product or services.

According to him, the integrator is completely responsible for all damages caused by the installed equipment. That liability can also be extended to the distributor, if he participates in consumer fraud.

“Therefore, the consumer will be able to demand repairs from both, not just those who sold the equipment. The consumer must keep the proposal and the purchase invoice, so that they have proof of inadequate supply”, he commented. 

Within the Consumer Protection Code, Bao Ribeiro explains that Anyone who feels aggrieved must follow the following steps: make a police report; complain to consumer protection bodies and demand compensation for the damage. 

O table, according to him, There are three solution options for these problems:

• Require the exchange of the module, at no additional cost and repair of damages. In this case, the loss of energy generation;
• Request the removal of the equipment and immediate return of the amount paid, monetarily updated, without prejudice to possible losses and damages;
• Request a proportional price reduction.

real case

Ao Canal Solar, Bao Ribeiro commented that his office acted, recently, in a situation like this: the consumer purchased an inverter from a quality brand, but the integrator installed an inverter from a lower quality brand. 

Although this is not an example that necessarily deals with photovoltaic modules, the case materializes the risks to which professionals and consumers are exposed in the national market. 

The integrator pasted its logo on the inverter brand and did not inform the consumer about the difference between the equipment. “He discovered the fraud, because the inverter overheated and melted the integrator’s logo label”, revealed the lawyer.  

O lawyer account that, as a result, sent an extrajudicial notification requesting the exchange of the equipment and repair for the damage caused. 

“The equipment burned down and the customer spent 30 days without generating energy. We agreed on compensation so as not to take the case to consumer protection agencies. These negotiations are permitted by civil law,” he said. 

Consequences for the market 

One of the companies in the solar energy sector that has been speaking out against the practice of selling modules fake on the market is the ecori. 

Ao Canal Solar, the company highlighted that it evaluates the movement that has been taking place in the country with a view of disappointment in relation to the business community. 

“Many competing companies that we supposedly considered reputable, made the mistake of importing false power modules and poor quality as if they had surrendered to the temptation of being competitive in the market against importers who had already been practicing this illegality for years,” he said. Leandro Martins, president of Ecori. 

According to company calculations, it is estimated that today around 70% of the modules sold today in distributed mini and microgeneration are of false power, in addition to the cells, which are of poor quality, such as junction boxes, cables, connectors, silicone, aluminum and glass.

Martins also highlights that as the Most of these photovoltaic systems are sold with a "Oversize" considerable DC, with performance being impacted more likely over a longer period than the usual labor guarantee offered,” he said.  

“The near future of these thousands of installed systems is, without a doubt, systems with no performance and that put the facilities at risk of fire due to infiltration resulting from the poor quality of all the material used”, he said. 

How not to fall for scams? 

According to Martins, there is only one message to integrators: so that be wary of low prices and try to work with large brands and which have been known on the national market for years. 

“Soon, we hope that offenders who import and distribute these modules will suffer very heavy consequences in the form of fines, forfeitures and even sealing of the warehouses that are moving this type of merchandise. We are working in this direction to improve our sector, which has been suffering on several fronts”, he commented. 

Finally, the professional highlights that The entire national photovoltaic chain is the one who pays the bill for fake modules, since in distribution companies that work honestly are facing unfair and illegal competition. 

The integrators become victims of competition at the cutting edge that offer this type of module, while end customers (who have no knowledge on the subject) purchase products that put their own safety at risk.

“At the end of it all, we hope that importers pay the bill as previously mentioned, replacing modules for real power and quality integrators, paying fines and losing large volumes of goods, so that we can ban this type of product from our market” , reinforced Martins. 

Practice has grown  

Also in an interview with Canal Solar, Ricardo Seixas, sales manager at Jinko Solar in Brazil, highlights that the marketing of fake modules in the country has created a subversion in the prices charged and mainly harms the consumer, who ends up being deceived and does not receive what he bought. 

"A very big problem we face is the lack of barriers and quality control in our sector in the country. This type of equipment covers efficiency and safety issues that need to be followed and practiced”, said the professional. 

“While this doesn’t happen, we have to rely on market selection, which will certainly improve as the consequences of using non-compliant modules occur”, highlighted Seixas. 

For him there is a need for more comprehensive mobilization and more responsible personal action on the part of actors in the solar energy sector to curb this type of action, since the main consequence in the macro scenario is the weakening of the sector itself.  

“A industry is weakened by unfair competition, local market agents such as distributors and integrators, who will have to be responsible at some point for choices and lose the trust and credibility of their customers; and finally the end consumer, who ends up being harmed within such an important investment in economy and sustainability”, he commented. 

The professional also said that something important to highlight is the fact that an iThe relatively lower initial investment may not represent a real saving. 

“This is what needs to be understood. Integrators are selling profitability in addition to sustainability, and the profitability of something that doesn't deliver what was expected is much lower. The old maxim has never fit so well: what’s cheap will be expensive”, he reinforced.

Fake power is more than just an unfair practice — it is a crime of fraud that harms consumers and weakens the solar energy market. Therefore, it is essential to be well informed and to have reliable partners.

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