{"id":68,"count":4,"description":"When done right, going solar can substantially reduce your carbon footprint <em>and <\/em>your energy costs. However, this rare double-whammy of benefits also makes the residential solar industry ripe for scams.\r\n\r\nSolar panel scams use the desire to save money and contribute to a better future to mislead homeowners into making quick decisions based on incomplete or inaccurate information. However, a little due diligence goes a long way, and just because there are dishonest players in the solar industry does not mean that the entire industry is a scam.\r\n\r\nIn this article, we\u2019ll explore:\r\n<ul>\r\n \t<li><a href=\"#types\">Common types of solar scams<\/a><\/li>\r\n \t<li><a href=\"#avoid\">How to avoid solar scams<\/a><\/li>\r\n \t<li><a href=\"#combat\">What\u2019s being done to combat solar scams<\/a><\/li>\r\n<\/ul>\r\nFirst, let\u2019s establish the definition of a solar panel scam so we know what to look for.\r\n<h2>What is a solar panel scam?<\/h2>\r\n<a href=\"https:\/\/www.merriam-webster.com\/dictionary\/scam\" target=\"_blank\" rel=\"noopener\">According to Merriam-Webster<\/a>, a scam is \u201ca fraudulent or deceptive act or operation.\u201d So, by definition, solar panel scams are operations that use deceptive acts to try to sell solar systems.\r\n\r\nUnfortunately, we have to use this broad definition because there are a handful of different types of solar panel scams floating around the industry.\r\n\r\nSo, let\u2019s take a look at some common solar scams so you are better prepared to identify and avoid them.\r\n<h2><a id=\"types\"><\/a>Types of solar scams<\/h2>\r\nThere are several types of solar scams that range from slightly dishonest to borderline predatory.\r\n\r\nLet\u2019s start with the one I\u2019m sure we\u2019ve all seen on Facebook and YouTube: \u201cFree solar panels.\u201d\r\n<h3>Free or no cost solar scams<\/h3>\r\nAdvertising free solar panels is deceptive and dishonest \u2013 the very definition of a solar scam. In fact, <a href=\"https:\/\/www.solar.com\/learn\/free-solar-panels\/\" target=\"_blank\" rel=\"noopener\">we wrote an entire article about it<\/a>.\r\n\r\nIn short, free solar panel ads are typically for leases and power purchase agreements (PPAs). These arrangements are basically long-term solar system rentals in which the solar company owns the panels and homeowners pay a monthly fee in lieu of their electricity bill.\r\n\r\nSo, are homeowners <em>technically <\/em>paying for solar panels in a lease or PPA? No. But does that mean it\u2019s free solar? No, that would be like saying you got a free pair of bowling shoes even though you paid $30 to bowl and you had to return the shoes when you're done.\r\n\r\nIn fact, <a href=\"https:\/\/www.solar.com\/learn\/solar-lease\/\" target=\"_blank\" rel=\"noopener\">solar leases and PPAs<\/a> are typically more expensive than owning panels in the long run, add no value to the home, and can be difficult (and expensive) to transfer in a home sale or end early.\r\n\r\nYou may also see ads for \"no cost solar\" or \"zero down solar.\" Again, this are misleading at best and fraudlent at worst. And it's important to note that you can\u00a0<em>own<\/em> solar panels with a <a href=\"https:\/\/www.solar.com\/learn\/solar-loans\/\" target=\"_blank\" rel=\"noopener\">zero-down solar loan<\/a> just as easily as a lease or PPA (and the lifetime savings will be much greater).\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/03\/single-dollar-blurred.jpg\" alt=\"no cost solar panel scams\" width=\"1000\" height=\"558\" \/>\r\n<h4>Are all leases and PPAs scams?<\/h4>\r\nNo, not all leases and PPAs are scams. However, they seem to be a breeding ground for deceptive and predatory practices, including the old \u201cgovernment is paying people to go solar\u201d scam.\r\n\r\n<strong>Related reading:\u00a0<\/strong><a href=\"https:\/\/www.solar.com\/learn\/solar-leases-solar-loans-solar-ppas-cash-purchases-comparisons\/\">Solar Leases vs. Solar Loans vs. Solar PPAs<\/a>\r\n<h3>\u201cGovernment is paying people to go solar\u201d scams<\/h3>\r\nAnother solar scam floating around Facebook and YouTube is the \u201cgovernment is paying people to go solar,\u201d like the one below.\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/03\/government-will-litrerally-buy-blurred.jpg\" alt=\"government solar panel scams\" width=\"1000\" height=\"520\" \/>\r\n\r\nAlthough there is a <a href=\"https:\/\/www.solar.com\/learn\/federal-solar-tax-credit\/\" target=\"_blank\" rel=\"noopener\">30% federal tax credit<\/a>, in addition to state and local incentives, available to homeowners that install solar and\/or battery storage systems, that does not mean the government is paying people to go solar.\r\n\r\nHere\u2019s why:\r\n<ul>\r\n \t<li><strong>The 30% solar tax credit is exactly that \u2013 a tax credit<\/strong>. That means you first have to purchase the solar system before you can claim this incentive on your federal tax return.<\/li>\r\n \t<li><strong>The federal solar tax credit is worth a maximum of 30% of what you paid for solar and\/or battery storage.<\/strong> That amounts to a nice discount, but it doesn\u2019t mean the government paid you to go solar.<\/li>\r\n \t<li><strong>You must own the system to collect the tax credit. <\/strong>Like \u201cfree solar\u201d scams, the \u201cgovernment is paying people to go solar\u201d line is typically used to push solar leases and PPAs. But if you sign up for a lease or PPA, you don\u2019t qualify for the tax credit \u2013 the company that <em>owns <\/em>the system does.<\/li>\r\n<\/ul>\r\nThis is essentially a classic bait and switch scam. A solar company uses the premise of getting 30% off solar to get homeowners to sign a lease or PPA, and then collects it for themselves.\r\n\r\nIn extreme cases, solar scammers may even pose as utility or government officials trying to promote a new or unique solar program in your area. Now, any government or utility official trying to sell you solar panels should raise a red flag because<em> governments and utilities don\u2019t sell or install solar panels<\/em>.\r\n\r\nThe bottom line is that there are solar incentives that can help reduce the cost of going solar. However, be wary of anyone pushing incentives too hard, especially if they are instilling a dire sense of urgency, like the YouTube ad below.\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/03\/no-cost-solar-blurred.jpg\" alt=\"solar panel scams\" width=\"1000\" height=\"559\" \/>\r\n<h3>Promising unrealistic savings<\/h3>\r\nAnother scam used to sell solar panels is promising unrealistic energy cost savings.\r\n\r\nNow, going solar is a way to save on energy costs for many homeowners. However, it\u2019s a <a href=\"https:\/\/www.solar.com\/learn\/is-solar-a-good-investment\/\" target=\"_blank\" rel=\"noopener\">steady, long-term investment<\/a> like real estate or 401k \u2013 not a get-rich-quick scheme.\r\n\r\nHere are a few solar scam red flags to look out for:\r\n<ul>\r\n \t<li><strong>Claims that solar will \u201ccompletely eliminate your electricity bill.\u201d<\/strong> Many utilities have monthly fees that solar can\u2019t offset<\/li>\r\n \t<li><strong>Including an incentive that you don\u2019t qualify for. <\/strong>Some solar incentives are subject to income and geographical restrictions. Make sure you qualify for the incentives that are factored into your estimated savings.<\/li>\r\n \t<li><strong>Overestimated savings. <\/strong>Scammers may use exaggerated figures to make your estimated solar savings appear greater than what\u2019s reasonable.<\/li>\r\n \t<li><strong>Unexplainably low prices. <\/strong>As with any home improvement project, the lowest bid is rarely the best.<\/li>\r\n \t<li><strong>Anything free. <\/strong>Anything advertised as free is likely a distraction from something that will end up costing more money.<\/li>\r\n<\/ul>\r\nScams are often pushed using an urgency piece like \u201cthis program ends soon\u201d or \u201cwe can only offer this price for so long.\u201d Going solar does \u2013 and should \u2013 take time. Don\u2019t let a pushy salesperson use urgency to cloud your judgment.\r\n\r\nAs a rule of thumb, <strong>listen to your gut<\/strong>. If something feels off or too good to be true, take the time to ask questions, learn more, and consult people you trust.\r\n\r\nWith that in mind, let\u2019s look at some ways to avoid solar scams.\r\n<h2><a id=\"avoid\"><\/a>How to avoid solar scams<\/h2>\r\nScams are a blight on the solar industry, but that doesn\u2019t mean home solar itself is a scam.\r\n\r\nHere are some tricks to avoiding solar scams, finding reputable installers, and enjoying the benefits of home solar.\r\n<h3>Get multiple quotes<\/h3>\r\nIf you only listen to one sales pitch, it can be easy to get sucked into a scam. However, if you compare a three or more solar quotes, you\u2019ll get a better sense of:\r\n<ul>\r\n \t<li>Fair pricing<\/li>\r\n \t<li>Reasonable estimates for savings and payback period<\/li>\r\n \t<li>Available incentives<\/li>\r\n \t<li>Standard practices and warranties<\/li>\r\n<\/ul>\r\nGetting multiple quotes gives you a baseline that makes it easy to identify solar scams.\r\n<h3>Take the time to vet solar installers<\/h3>\r\nVetting installers is crucial to avoiding solar scams. Going solar is basically investing tens of thousands of dollars in your energy future, so you should really get to know the company handling your investment.\r\n\r\nHere are some things to look for:\r\n<ul>\r\n \t<li>How long has the company been doing business <em>in your area?<\/em><\/li>\r\n \t<li>Are they fully licensed and insured?<\/li>\r\n \t<li>Are the members of local and national solar industry groups? (Pro tip: Check with the industry groups to see if the installer is a member)<\/li>\r\n \t<li>Do they have a proven track record of good customer service and craftsmanship? (Check for reviews on third-party sites like Google, Yelp, and BBB)<\/li>\r\n \t<li>Do they offer a workmanship warranty?<\/li>\r\n<\/ul>\r\nThe vetting process takes time, but it\u2019s well worth the effort to protect your investment. If an installer is in any way discouraging or trying to bypass the vetting process, that should raise a major red flag.\r\n<h2><a id=\"combat\"><\/a>Is anybody combatting solar scams?<\/h2>\r\nIf you\u2019re waiting for a massive coordinated campaign to eradicate solar scams, don\u2019t hold your breath.\r\n\r\nHowever, that doesn\u2019t mean <em>nothing <\/em>is being done to combat solar scams. Rather than playing the whack-a-mole game of identifying and stopping scams, the industry is focused on building a more transparent marketplace and empowering homeowners.\r\n\r\nIn particular, <a href=\"https:\/\/www.electrum.co\/about-us\" target=\"_blank\" rel=\"noopener\">Electrum<\/a> \u2013 the parent company of solar.com \u2013 was founded in direct response to scammy, unethical sales practices in the solar marketplace.\r\n\r\nThe heart of solar.com is its network of vetted installers. Before joining the network, each installer must pass a rigorous vetting process that includes a review of the company\u2019s financials. At a bare minimum to be considered, a company must have:\r\n<ul>\r\n \t<li>3+ years of experience<\/li>\r\n \t<li>Full licensure and insurance<\/li>\r\n \t<li>An excellent track record of customer service and craftsmanship<\/li>\r\n<\/ul>\r\nAt the end of the day, fewer than 30% of the solar installers that apply are accepted into solar.com\u2019s network (we\u2019re <em>that<\/em> picky), but we believe homeowners deserve honesty, transparency, and peace of mind while they make a major life decision.\r\n\r\n<a href=\"https:\/\/www.solar.com\/dashboard\">Connect with an Energy Advisor to learn more about the solar.com marketplace.<\/a>\r\n<h2>Solar panel scam FAQs<\/h2>\r\n<h3>Are solar panels a scam?<\/h3>\r\nThere are undoubtedly scams to be aware of in the solar industry. However, that does not mean the entire concept of home solar is a scam. When installed by a reputable solar company, home solar can provide substantial energy cost savings and carbon emission reductions.\r\n\r\nAlways get multiple quotes and thoroughly vet solar installers before investing in home solar.\r\n<h3>Is free solar panels a scam?<\/h3>\r\nFree solar panels are indeed a scam. This deceptive marketing tactic is often used to promote solar leases and power purchase agreements (PPAs), which come with long contracts and monthly payments that escalate over time.\r\n\r\nCalling a solar lease or PPA \u201cfree solar\u201d would be like saying you got \u201cfree bowling shoes\u201d even though you paid $30 to go bowling and had to return them when you were done.\r\n<h3>How can I avoid solar panel scams?<\/h3>\r\nGetting multiple quotes and thoroughly vetting installers is the best way to avoid solar panel scams. You can also use solar.com\u00a0to compare quotes from our network of thoroughly vetted installers.\r\n\r\nOur vetting process includes an analysis at each company\u2019s financial standing and fewer than 30% of the installers that apply to join the solar.com network are accepted. This strict process brings trust, transparency, and peace of mind to our marketplace.","link":"https:\/\/www.solar.com\/learn\/solar-panel-scams\/","name":"Solar Panel Scams","slug":"solar-panel-scams","taxonomy":"category","parent":2,"meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Solar Panel Scams: Red Flags and How to Avoid Them | Solar.com<\/title>\n<meta name=\"description\" content=\"Solar panel scams have a clear negative effects on the solar industry. 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