7 Solar Scams and Red Flags Every Homeowner Should Know

The solar industry is full of reputable companies doing great work. It also has its share of bad actors exploiting the industry's rapid growth and consumer unfamiliarity. Here are the most common scams and red flags, and how to protect yourself.

1. The "Free Solar Panels" Pitch

The scam: Door-to-door salespeople or online ads promise "free solar panels." Nothing about solar is free. What they're selling is a solar lease or PPA where you don't pay upfront, but you make monthly payments for 20-25 years. The leasing company owns the panels and claims the tax credit. The reality: Leases are a legitimate financing option, but calling them "free" is dishonest. You're committing to decades of payments. Always ask: "Who owns the panels? Who gets the tax credit? What's my total cost over 25 years?"

2. Inflated Savings Projections

The scam: Sales reps project massive savings using unrealistic assumptions. Common tricks include assuming 5-7% annual electricity rate increases (historical average is 2-3%), ignoring panel degradation over time, using optimistic production estimates that don't account for real-world conditions, and projecting savings over 30+ years when the warranty is only 25. How to protect yourself: Ask for the specific assumptions behind savings projections. Run your own numbers using conservative estimates (2-3% rate increases, 0.5% annual degradation). Use independent calculators like EnergySage or Google's Project Sunroof.

3. High-Pressure "Today Only" Pricing

The scam: "This price is only available if you sign today. We can't hold it past this appointment." This is a classic high-pressure sales tactic. Legitimate solar companies don't change their pricing based on when you sign. How to protect yourself: Never sign during the first appointment. Take the quote, compare it with 2-3 competitors, and make a decision on your timeline. Any company that won't hold their quote for at least 30 days isn't worth doing business with.

4. Understating the Total Lease/PPA Cost

The scam: Sales reps emphasize the low monthly payment ($89/month!) without clearly explaining the escalator clause, total 25-year cost, or what happens when you try to sell your home. A $89/month lease with a 2.9% escalator costs $38,000+ over 25 years. How to protect yourself: Calculate the total cost over the full lease term, including the escalator. Compare this to the total cost of purchasing with a loan. Ask specifically about home sale transfer procedures and early termination penalties.

5. Bait-and-Switch Equipment

The scam: The sales presentation features premium panels (SunPower, REC) but the contract specifies cheaper equipment (generic Chinese panels). Or the contract is vague about equipment, saying only "Tier 1 panels" without specific model numbers. How to protect yourself: Every contract should specify exact panel make and model, exact inverter make and model, total number of panels, and total system size in kW. Verify the equipment listed matches what was discussed. "Tier 1" is not a specific product - demand model numbers.

6. Door-to-Door "Utility Company" Impersonation

The scam: A sales rep knocks on your door claiming to be "from the utility company" or a "utility partner" offering a special solar program. They're not from your utility - they're from a solar company using deceptive tactics to gain trust. How to protect yourself: Your utility company does not sell solar door-to-door. Ask for identification, the name of their company (not the utility), and their contractor's license number. If they claim to be from the utility, call your utility to verify.

7. No Written Contract Before Work Begins

The scam: Some disreputable companies begin work based on verbal agreements, then present the actual contract after work has started - often with terms that differ from what was discussed. How to protect yourself: Never allow any work to begin without a signed contract that includes all terms, pricing, equipment, timeline, warranty, and cancellation policy. Review the contract carefully - don't sign at the door. Most states provide a 3-day right of rescission for home solicitation contracts, allowing you to cancel without penalty.