We lost £3,000 after collapse of Ikea’s solar panel installer

I am one of many left thousands of pounds out of pocket after signing up for solar panels via Ikea’s website late last year.

Ikea had partnered with the European installer Soly, and the fact the panels were being advertised via such a well-known company gave us confidence.

In February I emailed Soly to check when the installation would start and received an out-of-office notification. My next email, in March, bounced back. Phone numbers no longer worked either, though the website was still up and running.

That’s when I found out that the European operation had gone bust. The partnership was still being advertised on the Ikea website, and Ikea agents assured me that Soly’s UK division was still operational.

I checked the Companies House register and found that the UK arm had entered liquidation in January this year. Ikea has since quietly removed Soly but offered no advice to customers who paid deposits for installations.

I’ve contacted Ikea in-store and online several times for help but received no reply. I had to find out the details of the administrator via Companies House and am told the chance of reclaiming my £3,000 deposit are very slim.

ZR, Dalkeith

Ikea’s silence is a disgrace given the fanfare with which it launched its solar partnership last September.

Customers were encouraged to invest in a “better future life at home” in “five easy steps” by applying for a free quote via the Ikea website. Your paperwork boasted that, as an Ikea customer, you enjoyed “Ikea pricing”.

Within a month or so of the launch, Soly’s European business had gone bust. Its UK arm followed in January, but neither company informed customers.

In December last year, Soly was bought by the energy company Otovo, but the deal did not include liabilities, warranties or unfulfilled installations.

I asked Ikea why it had not notified customers on its website about Soly going bust and their options . It ducked the question, and stated that it was not party to Soly contracts, although it was to have received commissions for each successful referral had Soly not collapsed before it could pay.

It told me (but not its customers) to contact HIES, a consumer protection organisation covering the installation of renewable energy and home energy efficiency products, for advice.

Your plight exposes the vulnerability of customers whose solar panel provider ceases to trade before installation has begun.

Those with completed projects can claim through the “insurance-backed guarantee” if the installer was signed up to a contractor scheme such as HIES.

HIES also offers deposit protection insurance, but only if your contract was registered with the scheme. It appears that yours was not, and HIES has not responded to my requests for information.

Soly’s administrators, S&W Group, told me that customers should register a claim with them, but that the chance of a refund is uncertain.

Unfortunately, you paid the deposit by bank transfer, so I’m afraid you are probably unlikely to see your money again. If you had used a credit card, you could have claimed from your card issuer, which is held jointly liable under the Consumer Credit Act.

We welcome letters but cannot answer individually. Email us at [email protected] or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number. Submission and publication of all letters is subject to our terms and conditions.