Common Solar Scams and Red Flags
1. Free Solar Panels
Ads claiming “free solar panels” are among the most common scams. While low-income or special programs exist, very few homeowners qualify. Usually, “free” means third-party ownership models like solar leases or power purchase agreements, where the company owns the panels and the homeowner pays monthly fees, often with escalating costs over a 20-year contract. These arrangements are not truly free and can be costly in the long run.
2. False or Exaggerated Government Incentives
Scammers often claim you qualify for nonexistent tax breaks, rebates, or government programs that offer substantial savings or free installations. Verify such claims through official government websites, because most of these advertised programs are fake or misrepresented.
3. Overstated Savings and Electricity Price Increases
Some solar companies use inflated estimates for future electricity price hikes (over 3% per year) to exaggerate expected savings and lure customers. They may also promise unrealistically high bill reductions (like “save up to 70%”), which are often misleading. Always compare estimates and question overly optimistic projections.
4. Incomplete or Vague Quotes
Quotes lacking detailed information such as specific panel model numbers or clear cost breakdowns are warning signs. Legitimate installers provide detailed proposals and answer all questions thoroughly. Be wary if a contractor won’t provide information or pressures you to sign quickly.
5. Misrepresentation of Affiliation
Scammers sometimes impersonate government agencies, utility companies, or reputable solar providers to gain trust. If anyone claims to be affiliated with your utility or government and offers special deals or rebates, verify independently as legitimate utilities typically do not sell solar panels or offer rebates directly.
6. Low-Quality Equipment and Installation
Fraudulent companies may install cheap, substandard solar panels or cut corners on installations, leading to poor performance and costly repairs. Watch for companies offering to replace your existing panels for “free” but then swap them for inferior equipment.
7. High-Pressure Sales and Unusual Payment Requests
Beware of aggressive sales tactics pushing limited-time deals, verbal agreements, cash payments, or starting projects without signed contracts. Legitimate companies give you time to review documents and do not demand immediate commitments.
8. Phishing and Identity Theft Risks
Some solar scams are designed to collect personal and financial information under false pretenses, risking identity theft. Be cautious about sharing sensitive info with unverifiable companies or unsolicited contacts.
How to Protect Yourself
- Get multiple bids and compare prices carefully.
- Research company reviews and certifications (such as NABCEP certification).
- Read contracts thoroughly and ask for all promises in writing.
- Verify any incentive or rebate claims via official government and utility websites.
- Report any suspicious behavior or scams to the FTC or your state consumer protection office immediately.
By staying vigilant against these common solar scams and doing thorough research, you can make an informed decision and avoid costly pitfalls while investing in solar energy.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-most-common-solar-scams-to-watch-out-for/
