Five Tips to Avoid Getting Burned by Solar Scams

Smart Ways to Protect Yourself When Going Solar

The solar energy industry is booming. With tax credits, environmental benefits, and lower utility bills, more homeowners are switching to solar than ever before. But unfortunately, wherever there’s growth, scammers follow.

From pushy salespeople and misleading contracts to outright fraud, solar scams are becoming more common—and more sophisticated.

If you’re thinking about going solar, here’s how to protect yourself and make sure you’re dealing with reputable providers, not scammers.

Why Solar Scams Are on the Rise

With federal tax incentives like the Solar Investment Tax Credit (ITC) and local utility rebates, solar installations can lead to massive savings. But these same incentives also open the door for scammers to take advantage of homeowners who are unfamiliar with the process.

Some common scams include:

Promises of “free solar panels”
Misleading lease agreements
Upfront fees with no installation follow-up
Fake rebate offers requiring personal info

The good news? You can avoid all of them with a little knowledge and careful decision-making.

5 Tips to Avoid Getting Burned by Solar Scams

1. Be Wary of “Free Solar Panel” Claims

If someone offers “free solar panels,” read the fine print—nothing is truly free. Many of these offers are actually solar leases or Power Purchase Agreements (PPAs) where you don’t own the panels and may be locked into high monthly fees or rate escalations.

Red Flag: The rep avoids explaining who owns the system or downplays the cost.

Smart Move: Ask for a side-by-side comparison of leasing vs. owning and make sure you understand the long-term financial implications.

2. Don’t Sign Anything Under Pressure

Scammers often use high-pressure tactics, urging you to sign a contract “today” to qualify for a limited-time rebate or deal.

Red Flag: Claims like “The government program ends tomorrow!” or “Only 3 spots left in your zip code!”

Smart Move: Take your time. Legitimate solar companies will give you space to read the contract, ask questions, and review your options.

3. Verify the Company’s Credentials

Before you agree to anything, look up the company:

Are they licensed and bonded in your state?
Do they have a physical office?
What do their online reviews say?
Are they listed with the Better Business Bureau (BBB)?

Red Flag: A company with no online presence, no verifiable business address, or one that won’t provide a contractor’s license number.

Smart Move: Check the DSIRE database for legit incentive programs and NABCEP for certified installers.

4. Get Multiple Quotes—and Ask Questions

Always get 2–3 quotes from different solar providers. Ask each one:

What is the total system cost?
Are there financing options?
What incentives apply to me?
Who handles maintenance and warranties?

Red Flag: Companies that won’t give you clear answers or try to avoid putting details in writing.

Smart Move: Compare quotes line-by-line. Transparency is a strong sign of trustworthiness.

5. Read the Fine Print—Especially About Financing

Some solar companies bury hidden fees, high-interest rates, or balloon payments in their contracts. Others may sign you up for third-party loans without your knowledge.

Red Flag: A contract that’s difficult to understand or doesn’t clearly state your total cost and repayment terms.

Smart Move: Have a lawyer or trusted advisor review the contract. Make sure you know:

Total cost
APR and monthly payments
Ownership structure
Warranty details

What to Do If You Suspect a Solar Scam

If you feel like something’s off:

Don’t sign anything.
Report the company to your state attorney general, the FTC, or the BBB.
Contact your utility provider—some scammers falsely claim partnerships with them.
File a complaint with the Solar Energy Industries Association (SEIA) or local licensing boards.

The Bottom Line

Going solar is a smart investment—but only if you do it right. Don’t let scammers hijack your savings or sell you on empty promises. With a little research and these five tips in mind, you can switch to solar with confidence.

Remember: if it sounds too good to be true, it probably is.