In recent years, solar energy has become an increasingly popular way to cut electricity bills and reduce environmental impact. While the benefits of going solar are clear, the rapid growth of the industry has also opened the door to scams targeting homeowners eager to switch to renewable energy. From fake companies to misleading offers, these scams can cost unsuspecting individuals thousands of dollars. In this blog, we'll break down the most common solar scams and give you practical advice on how to avoid them, so you can confidently make the switch to solar power.
Common Solar Scams
The rise of solar energy has attracted its fair share of scammers, who often prey on people's desire to save money and "go green." Let’s take a look at some of the most common tricks used by fraudulent solar companies, so you can steer clear of them.
Fake Solar Companies
One of the most common scams involves fake solar companies that promise cheap installations or extraordinary savings but disappear once they’ve collected a deposit. These companies typically have no official certifications or experience in solar energy, making it difficult to track them down if things go wrong. They may set up flashy websites, send convincing sales emails, and even come to your door with tempting offers, but the moment they have your money, they vanish.
Solar Leasing or Power Purchase Agreement (PPA) Scams
Another widespread scam targets homeowners interested in solar leasing or Power Purchase Agreements (PPA). In these scams, companies promise that you can go solar with little to no upfront costs, often pitching the idea that you’ll “rent” the solar panels or pay for the energy they produce rather than buying the system outright. While legitimate solar leasing and PPA options exist, scammers twist the truth by hiding key details in the fine print.
What usually happens is that homeowners are locked into long-term contracts with escalating monthly payments, or they may discover that they don’t actually own the system installed on their property. These contracts can last 20 years or more, and over time, the costs can outweigh the savings. Worse, the agreements can make it difficult or expensive to sell your home if the new owner doesn’t want to take over the lease.
Pushy Door-to-Door Salespeople
Pushy door-to-door sales tactics are another red flag in the solar industry. In this scam, salespeople show up at your door uninvited, offering a “limited-time deal” or claiming they represent a government program that can drastically lower your electricity bills with solar power. They often pressure homeowners to sign contracts on the spot, making it seem like this is a once-in-a-lifetime offer that will disappear if they don’t act immediately.
The high-pressure approach can make people feel like they need to make a decision quickly, without taking the time to thoroughly research the company or the details of the offer. In some cases, these salespeople even misrepresent the size of the system needed or the amount of savings you can expect, locking homeowners into unfavorable contracts.
Free Solar Panels
The "free solar panels" scam is a classic trick used by dishonest companies to lure in unsuspecting homeowners. The idea of getting solar panels without paying a dime sounds too good to pass up—and it usually is. These companies claim that you can have a solar system installed for free, with no out-of-pocket costs, and that your energy savings will cover everything. However, the reality is often far different from what’s advertised.
In many cases, the "free" part comes with hidden fees or long-term commitments that are buried in the fine print. Homeowners may find themselves tied to contracts with high interest rates or monthly payments that eat up any potential savings. Some people discover that they don’t actually own the panels at all, which can complicate matters when it comes time to sell the property.
Solar Phone Scams
Phone scams have also made their way into the solar industry. In these cases, scammers call homeowners pretending to be representatives from legitimate solar companies, utility providers, or even government agencies. They often pitch unbelievable deals, claiming that you qualify for special rebates, incentives, or free solar installations. Their goal is to get your personal information—such as Social Security numbers or financial details—under the guise of processing your application or scheduling a home visit.
What makes this scam particularly dangerous is how convincing the callers can be. They might even have some of your information already, making their claims seem legitimate. However, legitimate solar companies will never ask for sensitive personal information over the phone, especially in an unsolicited call.
Fake Advertising Claims
Fraudulent advertising is another tactic used to lure unsuspecting homeowners into solar scams. Scammers use misleading ads to promote their products or services, often making exaggerated claims about the benefits of their solar solutions. They might promise unrealistic energy savings, falsely advertise free installations, or guarantee government rebates that don’t actually exist.
These ads can appear on social media, search engines, or even in local newspapers. The key to recognizing these scams is to scrutinize any claims that seem too good to be true or lack verifiable details. Often, these ads will use flashy graphics and emotional appeals to catch your attention, but they may lack credible information or endorsements from trusted sources.
Misleading Information About Federal Solar Tax Credits
Scammers also exploit confusion around federal solar tax credits to deceive potential customers. They may provide misleading information about the availability or value of tax credits to entice homeowners into signing contracts or paying fees. For instance, they might claim that you qualify for substantial tax rebates if you sign up immediately or imply that the tax credits are only available through their company.
In reality, the federal solar tax credit, also known as the Investment Tax Credit (ITC), is a well-established benefit administered by the IRS, and it applies to all qualifying solar installations regardless of the installer. Scammers may exaggerate or distort these credits to create a false sense of urgency, tricking homeowners into making hasty decisions.
How to Avoid Solar Scams?
Comparing Multiple Solar Quotes
By comparing multiple quotes, you can better understand the market rates and identify any inconsistencies or red flags in the offers. This practice helps you gauge the fairness of pricing and the legitimacy of the companies. A legitimate company will provide a detailed and transparent quote, including all potential costs and savings. For solar quotes, you can check out our article: How to Compare Solar Quotes.
Checking Online Reviews and Certifications
Before signing any contracts, take the time to research the companies you’re considering. Look for online reviews on platforms like the Better Business Bureau (BBB) or Trustpilot to see what other customers have experienced. Additionally, check if the company holds relevant certifications from reputable organizations such as the North American Board of Certified Energy Practitioners (NABCEP). These certifications can offer assurance of the company’s legitimacy and professionalism.
Reviewing Government Official Documents
Consult government resources to verify the legitimacy of any offers or rebates. Government websites often provide updated information on available incentives and tax credits for solar installations. By cross-referencing the details of the offer with official documents, you can identify any discrepancies or false claims.
Reporting Scams and Seeking Legal Help
If you encounter a scam, report it to relevant authorities such as the Federal Trade Commission (FTC) or your local consumer protection agency. These organizations can provide guidance and take action against fraudulent practices. Additionally, seek legal help if you believe you’ve been a victim of a scam. A lawyer can help you understand your rights and options for recovering any lost funds.
Taking Your Time to Make an Informed Decision
Rushing into a solar installation decision can leave you vulnerable to scams. Take your time to thoroughly research, compare options, and understand the terms of any agreements before committing. A well-informed decision will help you avoid pitfalls and ensure you get the best value from your solar investment.
Conclusion
Navigating the world of solar energy can be overwhelming, especially with the potential for scams lurking around every corner. By being aware of the common solar scams we've discussed—whether it’s fake companies, misleading offers, or pushy sales tactics—you can protect yourself from falling victim to fraud.
To further assist you in finding a trustworthy solar provider, we recommend reading our detailed guide on “How Do I Choose a Solar Company?” This resource will offer valuable insights and tips on selecting a reputable company that meets your needs.
If you're ready to take the next step in your solar journey, consider exploring our top-quality solar panels and inverters from SEL. Our products are designed to provide reliable and efficient solar energy solutions, helping you make the most of your investment. Visit our website to learn more about our offerings and find the perfect fit for your solar system.
