How to Avoid Common Solar Scams

The market for solar energy is booming as falling costs and alluring financial incentives make renewable energy more accessible for the average consumer. Throughout the US, industry professionals installed almost 50 gigawatts of solar capacity in 2024, a 21% increase from the previous year. So, it’s no surprise that this unprecedented growth has attracted the attention of some unsavory characters implementing solar scams to capitalize on this modern-day gold rush. 

Solar scams are becoming more common, targeting unsuspecting consumers hoping for a great deal on a rooftop array. From deceptive marketing tactics to identity theft, fraudsters use all kinds of tactics to trick potential buyers into falling for their schemes. This guide will help you identify common red flags in order to avoid solar fraud. 

Understanding Solar Scams

As renewables continue making up more of the energy market, solar scams have become increasingly prevalent. 

The Rise of Solar Energy and Associated Risks

According to the Solar Energy Industries Association (SEIA), the US market for solar was worth over $70 billion in 2024. More homeowners are turning to renewable energy in response to rising utility rates and environmental concerns. At the same time, available financial incentives and shrinking costs have made solar a promising alternative to grid-sourced energy. 

Over the last 20 years, many reputable solar companies have emerged to meet the growing demand for renewable energy. Unfortunately, a number of untrustworthy businesses and individuals have also entered the field hoping for a piece of the pie. During this time of growing solar accessibility, protecting your investment in solar solutions is more important than ever. 

Types of Common Solar Scams 

Predatory swindlers have created various solar scams to steal from unsuspecting consumers. Here are a few common tactics used to trick potential buyers out of their hard-earned cash: 

Door-to-Door Sales

Salespeople claiming to represent a legitimate solar installation company show up on your doorstep unannounced. They may pitch an offer of free solar panels or try to sell you an array, but you have to sign up right now to lock in low rates. In some cases, they may pose as surveyors or inspectors who request access to your home. 

Misleading Advertisements

If a rep promises $0 electric bills at no cost to you, it’s safe to assume you’re talking to a solar scammer. Fraudsters may lead you to believe you’ll get paid without having to make any payments of your own. In many cases, they’ll pull a bait-and-switch, hooking you with offers you can’t refuse, and then hiding high fees in the fine print of your final contract. 

Fake Utility or Government Affiliation

Solar scams may also include false representation. Solar scammers may claim to work for your utility provider, local government, the Department of Energy, or a fake entity with an official-sounding name. These impersonations build trust with victims who may let down their guard when talking with someone they believe is a qualified professional. 

In other cases, unethical companies may misrepresent how federal tax incentives work by claiming a solar tax credit or reimbursement is automatic. However, this is untrue. In reality, the federal Income Tax Credit is based on the taxes you pay. If you don’t have a tax liability, you may not receive a tax credit, which would mean a solar lease might make more sense for your situation. 

Predatory Financing or Leases

Shady solar companies may push financing options that put homeowners at a disadvantage. High-interest loans that are hard to get out of, lease agreements with escalating payments, and contracts that don’t allow for transfers are all red flags of solar scams. 

Phishing and Identity Theft

Sometimes, solar scams are not about renewable energy at all. Phishing emails can offer solar quotes or rebate programs in exchange for personal information, which scammers use to steal your identity. Be wary of fake “solar savings calculators” and forms that ask for your Social Security number under the guise of mandatory credit checks. 

Recognizing Red Flags of Solar Scams

Some solar scams are easier to identify than others, but taking your time, reading the fine print, and listening to your intuition can help you avoid solar fraud. 

Common Signs to Watch Out For 

Learning to identify solar red flags is a vital skill for any homeowner considering switching to solar. Keep an eye out for statements and practices that indicate something shady is going on behind the scenes, such as: 

• High-pressure sales tactics: Representatives push you to sign up immediately or miss out on special, limited-time offers. 
• Unsolicited offers: Scammers reach out to say you’ve been pre-approved for a solar installation. 
• Benefits that sound too good to be true: Guaranteed savings, $0 utility bills, and promises of a check from the government just for signing up are all solar red flags. 
• Vague or missing documentation: Reps dodge your questions and fail to provide detailed quotes, contracts, and warranty information in writing. 
• Requiring personal information: Legitimate companies won’t ask for your bank account info, Social Security number, or other sensitive information, especially in your first conversation with them. 

Importance of Research 

Skilled solar scammers can make you feel like waiting to take the leap will cost you a once-in-a-lifetime opportunity. When you’re under immense pressure, you may not have time to do your due diligence and research the company they represent or the “deal” you’re signing up for. 

Proper research isn’t just a good idea when shopping for a solar installer – it’s a necessary step to avoid solar fraud. Legitimate solar companies understand that renewable energy is a big investment, and they won’t discourage you from looking into their history or learning more about your other options. In order to protect yourself and ensure you’re working with a trustworthy business, get multiple quotes from different solar installation companies and search for online reviews of each one to hear what real customers have to say about their experience. 

Verifying Company Credentials

Before signing any paperwork with a solar installation company, it’s essential that you verify the business’s credentials to confirm they accurately represent their experience levels, services, and outcomes. 

How to Check for Legitimacy 

Customer reviews are a great starting point for researching a potential solar company, but you’ll also want to confirm that the business is fully qualified to install solar panels. In addition to holding a standard business license, contractor’s license, and comprehensive insurance coverage, your installer should be certified by the North American Board of Certified Energy Practitioners (NABCEP), which indicates a high degree of technical expertise and industry professionalism. 

The Better Business Bureau can help you identify customer complaints and learn how the company resolved them. Google, social media platforms, and community sites like Nextdoor can also be useful sources of information. 

Understanding Contract Details

Verifying a company’s legitimacy should give you a sense of relief and security. However, many solar scams are hidden in the fine print, so you must carefully read your contract before signing to ensure you fully understand the conditions of the agreement. 

Start by reading the terms of service to determine whether you will own your array, lease it, or sign a power purchase agreement (PPA). How long is the duration of the contract, and what happens when it ends? Will you be penalized for cancelling early? Can you transfer the system to new owners if you choose to sell your home? Answers to these questions should be readily available. 

Your solar warranty will affect long-term system maintenance and serve as a safeguard against costly damage. It should include specific details about what is covered and clearly indicate any limitations or exclusions. 

As you review your solar panel contract, keep an eye out for any hidden fees or additional costs. Some agreements may offer low upfront prices that quickly increase after an introductory period. Ask your installer for a detailed breakdown of all fees included in the contract, such as:

• Installation costs
• Permit and inspection fees
• Monitoring or maintenance charges 
• Potential escalation clauses

If anything in the contract feels vague or confusing, request clarification in writing, so you have records to cite in the event of a dispute. 

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Tips for Safe Solar Purchasing

The fear of solar scams shouldn’t stop you from embracing renewable energy. Here are a few tips to help you feel empowered and make informed decisions throughout the process: 

Seeking Referrals from Trusted Sources 

Friends, family, and other members of the solar community can offer valuable insights into regional installation companies. Consider posting questions in local Facebook groups and community forums to see how other members describe their experiences. Businesses that rely on referrals and word-of-mouth marketing may be more trustworthy and reliable, as their success depends on customer satisfaction. 

Leveraging Government Resources 

Local, state, and federal websites can help you identify legitimate solar companies. Search your state’s register of licensed contractors to verify your solar installer’s status with local oversight agencies and confirm they’re in good standing. You should also check reputable sources for information on available solar incentives to ensure legitimacy and stay up-to-date on any changes to existing policies. The Department of Energy and your state energy office may offer valuable resources to help you determine which incentives are legitimate. 

Assessing Financing Options 

Financing is both a critical aspect of purchasing a solar array and a common focal point for scammers. Dishonest companies may try to overwhelm potential buyers with complicated contractual agreements. Others might demand large upfront payments before you ever see a detailed proposal. 

When opting for a solar lease or PPA, choose a legitimate company that offers $0-down agreements with clearly defined terms and transparent pricing. Solar scams tend to emerge from businesses that don’t provide straightforward, comprehensive information about contract agreements and costs, so steer clear of companies offering unclear financing terms and representatives who can’t (or won’t) provide exhaustive details in writing. 

Educating Yourself on Common Scams

Familiarizing yourself with prevalent solar scams can help you avoid becoming the victim of solar fraud and better protect your home, finances, and peace of mind. After all, it’s harder to mislead a well-educated homeowner than one who hasn’t done their research. Take an active role in your own education by learning to recognize the red flags of solar scammers, so you can shut down unethical fraudsters before they affect your quality of life. This should be an ongoing process, as scammers evolve over time and refine their tactics as more homeowners catch on to their games. As you gain a better understanding of best practices and scam tactics, you can also spread awareness to help others avoid solar fraud. 

Empowering Your Solar Journey

Since 2009, Solar Energy World has helped thousands of happy customers navigate the solar market and avoid costly solar scams. Reach out today to learn more about informed solar purchasing or get started with a free solar estimate!y World is here to assist you every step of the way. Get started today with a free solar estimate!