1. Promises of “Free Solar Panels”
Many scams advertise “free solar panels,” which are often tied to complex third-party ownership agreements like solar leases or power purchase agreements (PPAs) where the installation is free but monthly payments or escalating fees apply. While some low-income programs exist, very few people qualify, making such promises generally deceptive.
2. High-Pressure Sales Tactics
Scam salespeople often pressure homeowners to sign contracts on the spot, not allowing adequate time to read and understand terms. Legitimate companies will not force immediate decisions and encourage customers to review all paperwork thoroughly.
3. False or Exaggerated Government Incentives
Scammers may falsely claim you qualify for fake tax credits, rebates, or government programs to lure you in. Legitimate incentives exist, but offers of automatic “free” panels based on these are often deceptive.
4. Overstated Savings or Electricity Cost Increases
Some companies exaggerate savings by projecting unrealistic annual electricity price increases (more than 3% per year typically), misleading you about the long-term benefits of solar to push contracts.
5. Incomplete or Vague Quotes
Quotes that lack specific information such as model numbers of the solar panels, detailed costs, or contract terms are a red flag. Legitimate installers provide full details, including panel specs, warranty info, and financing terms.
6. Misrepresentation of Affiliation
Some scammers falsely claim partnerships with utility companies or government entities to gain trust. For example, claiming affiliation with a utility company like Entergy when no such relationship exists is a common scam tactic.
7. Low-Quality Equipment or Installation
Fraudulent companies may install substandard solar panels or cut corners during the installation process, leading to poor performance and costly repairs later.
8. Requests for Upfront Payments or Personal Information
Beware of companies that demand large upfront fees or request sensitive personal or financial information prematurely, which could also be used for identity theft.
Summary Table of Common Signs of Solar Scams
| Sign | Description |
|---|---|
| “Free Solar Panels” Offers | Promises of free installation but with costly leases/payments hidden in contracts |
| High-Pressure Sales | Urgency to sign contracts without proper review |
| False Government Incentives | Claims of fake tax credits or rebates |
| Overstated Savings | Unrealistic projections of electricity price rises or savings |
| Vague or Incomplete Quotes | Missing model numbers, unclear costs, or contract details |
| Misrepresented Affiliations | False claims of partnerships with utilities or government |
| Low-Quality Equipment | Poor-quality panels or installation to cut costs |
| Upfront Payment Requests | Demands for large upfront payments or sensitive information |
How to Protect Yourself
- Always ask for detailed, written quotes including panel models and warranty info.
- Check for licensing and certifications such as NABCEP.
- Do not sign contracts under pressure; take time to review or consult a trusted advisor.
- Verify any claimed affiliations directly with the utility or government agency.
- Report suspicious companies to the Federal Trade Commission (FTC) and local consumer protection offices if you suspect a scam.
These steps can help homeowners identify and avoid common solar scams that exploit the growing interest in solar energy.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-common-signs-of-a-solar-scam/
