Solar panels offer an excellent investment for your home and can ultimately lower your electricity costs. Nonetheless, installation
solar panels
is a costly investment that requires several years before one will
pay for themselves
Even when dealing with high-quality products, some solar salespeople might provide deceptive offers or claim that you’ll notice savings very quickly.
Solar salespeople may try to lure you in with limited-time deals to pressure you into making a decision or try to use the promise of free solar panels if you act now. In most cases, these are just aggressive sales tactics, but occasionally, they can be selling a subpar product. Solar is an expensive investment no matter how you go about it. If you fall for a bad offer, you can find yourself with underperforming panels or an overpriced system that isn’t actually doing much good. That’s why we put together these tips to avoid getting ripped off when buying solar panels — backed by expert advice.
Here’s how to avoid falling for solar panel scams and spot warning signs.
Ways to steer clear of solar panel frauds
Based on where you look, various explanations can be found for what constitutes a solar panel scam. In this piece, our aim is to make sure that what you receive matches your expectations. This approach encompasses a range of deceptive practices; however, the guidelines for securing a quality solar agreement remain consistent regardless of the situation.
Before getting into the specifics, Melanie McGovern, who directs public relations at the International Association of Better Business Bureaus, advises taking one preventive measure.
She mentioned, ‘It’s important to obtain at least three quotes and then compare their costs.’
Not only will you be able to eliminate options that are unreasonably pricey, but you’ll also get numerous chances to ask questions and gain knowledge throughout the experience. A bit of
education can travel far
When aiming to secure the most suitable offer for your circumstances, trustworthy solar panel firms ought not to hesitate in addressing all of your queries.
Indicators of solar sales pitfalls to steer clear from
While not all home-to-home solar sales can be classified as scams, one should approach their proposals cautiously. Investing in solar power requires significant funds and ought not to be decided impulsively, regardless of the pressure from the sales representative.
“Companies with integrity will address your concerns,” McGovern stated.
Sure, here’s a brief list from
Solar United Neighbors
, the US
Department of Energy
And other potential warning signs and dubious assertions that ought to encourage you to conduct your own investigation.
-
The government’s solar tax incentive will be ending shortly.
The federal tax credit won’t be disappearing shortly since it was raised and prolonged in 2022. Currently, it stands at 30% until 2032, after which it’s set to decrease to 26% in 2033. -
A particular program is wrapping up shortly.
Certain utility companies are shifting their stance on net metering.
, with governmental initiatives coming to an end. Ensure you gather precise details and comprehend whichever program is being talked about. -
There is only one option for your equipment.
Many solar installation companies have favored suppliers for
equipment
However, it can cater to customer preferences. -
Electricity rates will increase by XX percent annually according to your utility company.
Electricity prices do increase (and they’ve been quite unpredictable lately). However, you can look into past electricity costs for your region and determine if a company’s projection seems reasonable. -
By saving as much as 70%, you can drastically reduce your electricity expenses.
Seventy percent seems impressive, yet that “up to” qualifier might be quite significant.
Do many individuals save seventy percent?
Or do most people save much less? Make sure to inquire about this. -
Get solar panels installed on your rooftop at no cost!
This most likely doesn’t imply something for free; instead, it suggests no initial payment. However, you will still be required to make a monthly payment afterward. -
You could mention that your house runs on renewable energy sources.
This holds up legally only if you manage to keep possession of it.
solar renewable energy certificates
In a Power Purchase Agreement, you could transfer those rights to the solar provider, allowing them to benefit from the environmental advantages.
Key considerations before beginning your search for solar panels
There’s fierce
competition within the home solar panel sector
Solar businesses utilize different sales approaches, ranging from internal sales forces to external firms.
Tesla’s solar arm
depends greatly on internet queries. Although there are sectors within theindustry
guidelines for consumer protection
Tactics differ between companies, and as the report from Detroit indicated, these strategies sometimes border on deceitfulness. Entering the conversation well-versed in essential solar subjects can assist you in recognizing when a salesperson is disregarding these standards.
The federal government’s solar tax incentive
Salespeople often highlight the federal solar tax credit. This incentive applies when you have it installed.
solar panels
(along with specific other associated technologies), you’ll receive a portion of the costs returned to you via tax benefits. For the year 2025, this reimbursement rate is set at 30%, and it will remain constant until 2032, as specified in the legislation.
Inflation Reduction Act
.
The tax credit is not a direct payment from the government nor a refundable rebate. Rather, it serves as an offset for the taxes you owe annually. To fully utilize this benefit, ensure you have paid sufficient federal income tax—specifically at least 30% of what your system costs.
The impact of solar energy on your utility expenses
If a salesperson claims that your electricity bill will vanish following the installation of solar panels and suggests you can show the utility company the door, this might also be overly optimistic. The amount you pay for electricity will depend on various factors.
net metering contract with your power company
, your electricity consumption, along with the basic rates utility customers pay for maintaining grid infrastructure. When solar panels are properly installed and functioning, they decrease the amount of electricity you consume. This can lead to significant savings, particularly when combined with various
Americans getting increasingly stressed
about electricity costs
However, the impact on your billing will differ.
Before transitioning to solar power, make certain you comprehend how your utility will compensate you for the electricity you generate. Keep in mind these rates can change. For instance, in California,
Regulators have recently modified net metering policies.
In most states, there usually is a strict cutoff date set for significant modifications to net metering policies. If you get your setup completed prior to this specific date, you would qualify for the previous (typically more favorable) rates.
What the phrase “free solar panels” actually implies
If you come across advertisements suggesting you can have solar panels installed on your home at no cost, be certain you comprehend what “free” entails. It probably indicates that the offered product comes with some form of hidden catch or condition.
a power purchase agreement
Or perhaps a solar lease. This option allows you to avoid paying a significant initial amount for the panels; however, you will be making regular payments to the leasing company each month. Such arrangements are valid business models and contribute substantially to the rapid growth of home solar systems over the past ten years. Generally speaking, buying the system outright would result in greater savings compared to opting for a lease or power-purchase agreement (PPA). Nonetheless, due to their minimal upfront costs, leases and PPAs can still render solar energy accessible and might end up saving you money overall, despite the fact that solar electricity doesn’t come without charges entirely.
By utilizing leases and power purchase agreements (PPAs), you can save money when the payment does not increase more rapidly than the price of electricity provided by your utility company.
Is your house equipped for solar power?
Photovoltaic panels may prove to be financially beneficial for certain individuals; however, they aren’t appropriate for all rooftops. Within the northern hemisphere, these installations generate the highest amount of electrical power when optimally positioned.
facing south
While east- and west-facing panels also function, those oriented towards the west could be particularly beneficial in regions with time-of-use rates. In these locations, producing solar energy during the afternoon and early evening can help counterbalance more expensive electricity costs.
“One of the major points anyone should think about regarding solar is whether it’s suitable for their home,” explained McGovern, noting that a representative from a solar firm had contacted her with an offer to set up solar panels despite her fully shaded rooftop.
If your rooftop experiences significant shading, ensure that the installer provides a strategy to tackle this issue. Solar efficiency can require tree trimming or alternative panel placement away from the roof itself. Additionally, confirm that your roof is in sound condition since installing and later removing panels to repair the roof could incur extra expenses. These factors must be resolved prior to signing a contract and having the panels mounted on your roof.
Regarding all these concerns, an installer should provide you with straightforward responses. If an installer pressures you into signing anything without thoroughly reviewing the agreement or addressing your queries, this is a warning sign. Should you end up signing documents you subsequently feel remorseful about, legally speaking, you retain certain rights.
you can typically cancel many doorstep sales within three days
as stated by the US Federal Trade Commission.
Options for securing a good deal on solar panels
Many entities such as trade associations and governmental bodies are working towards facilitating an optimal transition for individuals looking to adopt solar energy solutions.
-
The Department of Energy:
The Department of Energy (DOE) provides a guide for those interested in adopting solar energy solutions that includes
an extensive array of factors to contemplate
Before finalizing an installer. -
State offices:
numerous states operate consumer protection offices providing guidance tailored to each state, occasionally
specifically for solar
. -
The Federal Trade Commission:
The FTC additionally provides guidance on
how to secure an excellent solar agreement
. -
Advocacy groups:
Groups like
Solar United Neighbors
and
GRID Alternatives
assist individuals in adopting solar energy. Should you be eligible for their initiatives, you could receive guidance from a professional throughout the procedure. -
The Better Business
Bureau:
The Better Business Bureau evaluates businesses according to how they address complaints. It further possesses an
accreditation process companies
It can be helpful to check a company out through the Better Business Bureau, provided it’s feasible. -
Certifying boards:
You can locate certified installers by contacting the manufacturer.
North American Board of Certified Energy Practitioners
. -
Your neighbors:
Should you know anyone among your friends, family, or next-door neighbors who recently got solar panels installed, consider asking for their insights regarding the service provided by their installer.
Since numerous individuals lack hands-on experience with solar energy, choosing an installer might seem like a challenging endeavor. However, transitioning to solar power allows you to begin reducing your expenses on electricity. This information comes from the Solar Energy Industries Association.
forecasts that there will be 10 million home solar installations
By the year 2030 in the U.S., if your aim is to contribute to those figures positively, putting in some effort will ensure it turns out well for all involved.
Correction:
A previous iteration of this piece incorrectly described how firms obtain ratings from the Better Business Bureau. In reality, these evaluations are provided irrespective of whether the businesses have chosen to participate in the organization’s accreditation program.