Introduction: The Dark Side of the Solar Gold Rush
The U.S. solar industry is worth $35 billion, but with rapid growth comes sky-high scams. In 2023, the FTC reported a 300% increase in solar-related fraud complaints.
Before you sign that contract, watch for these 7 sneaky tricks solar companies use to rip off homeowners.
1. “Your Neighbors Are Getting FREE Solar Panels!” (The Fake Government Program Scam)
How It Works:
- Door-to-door salespeople claim there’s a “federal solar program” offering free panels.
- They pressure you to sign immediately before the “program expires.”
The Truth:
- There’s no such thing as free solar panels (unless it’s a lease/PPA with hidden costs).
- Legitimate federal incentives (like the 30% tax credit) require you to pay upfront.
💡 How to Spot It:
❌ “This is a limited-time government grant.”
❌ “Just sign today—we’ll handle all the paperwork.”
2. The Bait-and-Switch Pricing Game
How It Works:
- You get a too-good-to-be-true quote ($15k for a 10kW system).
- After site inspection, they claim your roof needs “extra work” (now it’s $25k).
The Truth:
- Reputable companies give accurate quotes after assessing your roof.
- Shady ones lowball first, then upsell.
💡 Red Flags:
❌ No onsite visit before quoting.
❌ Vague contract terms like “additional fees may apply.”
3. Fake “5-Star” Reviews (Paid & Bot-Generated)
How It Works:
- Companies buy fake Google/Yelp reviews to appear trustworthy.
- Some even threaten customers who leave bad reviews.
The Truth:
- Check SolarReviews.com and the BBB for unfiltered feedback.
- Look for detailed complaints (not just “great company!”).
💡 How to Spot Fake Reviews:
✅ Too many 5-star reviews in a short time.
✅ Generic praise (“Amazing service!”) with no specifics.
4. The “We Need Your Utility Login” Scam
How It Works:
- Sales reps insist they need your utility account login to “check savings.”
- Once they have it, they lock you into a contract without consent.
The Truth:
- Legitimate companies don’t need your login—they only need past bills.
- This is a predatory tactic to rush approvals.
💡 What to Do?
🚫 Never share your utility login.
📝 Demand a written quote first.
5. The Overproduction Scam (Selling You More Panels Than You Need)
How It Works:
- Salespeople push oversized systems (e.g., 15kW for a home using 800kWh/month).
- Claim you’ll “make money selling back power” (but net metering rates are falling).
The Truth:
- Most homes need only 6–10kW.
- Oversizing increases costs without better ROI.
💡 How to Check:
📉 Use PVWatts Calculator to estimate your ideal system size.
6. The “Lifetime Warranty” Lie
How It Works:
- Companies advertise “25-year warranties” but bury exclusions like:
- Labor costs not covered ($1,500+ per repair).
- Void if you don’t use their maintenance service.
The Truth:
- Most inverter warranties last only 10–12 years.
- Roof penetrations often void roofing warranties.
💡 Key Questions to Ask:
🔧 “Who pays for labor if repairs are needed?”
📜 “Can I see the full warranty terms before signing?”
7. The Solar Loan Trap (5.99% APR Sounds Cheap… Until You Read the Fine Print)
How It Works:
- Loans advertise low rates but hide:
- Dealer fees (20–30% of loan amount).
- Prepayment penalties.
- Balloon payments after 10 years.
The Truth:
- A 30kloanat5.9950k+ after fees.
- Cash or HELOC is usually cheaper.
💡 How to Avoid It:
📊 Use a solar loan calculator to see true costs.
💳 Compare with HELOC rates from your bank.
How to Protect Yourself in 2024
- Get 3+ Quotes (use EnergySage for unbiased comparisons).
- Check Licenses (NABCEP certification is gold standard).
- Read Contracts (look for hidden fees).
- Avoid Door-to-Door Sales (most scams start here).
📢 Share this guide to help others avoid solar scams!
