Solar Scams and How to Avoid Them (2024) (2024)

FAQs

Solar Scams and How to Avoid Them (2024)? ›

Red Flags and Warning Signs

To verify a company's credentials, visit the Solar Energy Industry Association and the industry licensing database. Getting at least three bids will show you the real cost of solar panels, help you better understand the process, and teach you the right questions to avoid a scam.

Solar panel scams are sometimes as simple as a contractor offering you a deal that seems too good to be true. Most likely, they'll happily pocket your money and leave you empty-handed or install faulty equipment. Some installers may advertise “free” solar panels as part of a contract.

Many people are against them because they think they take up too much space, they can be an eyesore, and they can impact property values. In addition, solar farms can interfere with farming and other land uses, be a danger to wildlife, and create a lot of heat – both in the daytime and at night.

1: Solar panels don't always produce as much power as they are supposed to. The sun is always shining somewhere in the world. There's plenty of light in the sky, but does solar catch it all? Depending how your system is built, or what type of panels you buy, it may not.

Theft of solar panels is a common problem that has been encountered in the field in certain contexts.

Key takeaways

Solar panels pay for themselves over time by saving you money on electricity bills, and in some cases, earning you money through ongoing incentive payments. Solar panel payback time can range between 5 and 15 years in the United States, depending on where you live.

Among other things, consumers reported poor customer service and being tricked into buying solar panels. After reviewing thousands of consumer complaints about these and other companies, CfA asked state and federal authorities to investigate the industry's conduct with particular attention to Vivint and SolarCity.

Low-quality or poor-standard panels may cause more problems than they solve. Solar panel manufacturers often promise high output levels for their products. However, if these promises aren't met due to inferior materials or manufacturing processes, it's easy to see why homeowners regret installing solar.

Fake Utility Representatives

Homeowners may encounter door-to-door salespeople offering solar panels. While some of these salespeople are legitimate, beware of scammers who pretend to represent state or utility companies and make exaggerated claims about tax rebates and energy bill savings.

What is the biggest issue with solar panels? ›

Many rural US communities resist the development of solar farms, fearing their environmental impact, destabilization of local economies, and perceived inequitable returns.

Some HOAs or neighborhoods have restrictions on solar panel installation. Check with them before installing if you're part of an HOA or have local restrictions. Your roof should be in good shape before you make the switch (if you're doing a roof installation). Many solar companies can help you with this part!

Are solar panels dangerous? The short answer is no, solar panels are not dangerous. Residential solar systems are safe and they are an excellent alternative to powering your home from the power grid.

Solar panel connection issues are often caused by faulty wiring. The most common problem is a loose connection between the wires and the terminals on either the solar panels or the inverter. This can be due to corrosion, damage, or simply a poor connection.

Many solar companies will not allow you to simply end your contract before the term ends, even if you are selling your home. If you want to sell your home before your PPA contract expires, you'll need to transfer your PPA to the new homebuyer, buy out the system, or terminate your contract and have the panels removed.

If you've been targeted by a solar scam call, report it to the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and Internet Crime Complaint Center (IC3).