CONSUMER PROTECTION
The solar industry has grown rapidly -- and unfortunately, so have deceptive sales practices. This guide covers the most common solar scams, warning signs, and exactly how to protect yourself and report fraud.
Updated March 2026 · Not legal advice · Our methodology
Solar energy is a legitimate and growing industry, but the rapid expansion has attracted bad actors who use deceptive practices to lock homeowners into unfavorable contracts. Common scams include fake "government programs," grossly inflated savings projections, high-pressure door-to-door tactics, and contracts with hidden escalator clauses. If you believe you've been a victim of a solar scam, you have options -- from filing complaints to pursuing legal cancellation of your contract.
Based on our research into consumer complaints, state attorney general actions, and industry reports, these are the most frequently reported solar scams and deceptive practices.
How it works: A salesperson or mailer claims you've been "selected" for a government solar program, a "federal solar rebate," or a "state-sponsored free solar installation." They may use official-sounding names or reference real programs (like the federal tax credit) in misleading ways.
The reality: While federal and state solar incentives do exist (such as the federal Investment Tax Credit), there is generally no government program that provides "free solar panels." These pitches typically lead to solar leases or PPAs with long-term financial obligations.
Red flag: Any claim of "free" solar panels or a "government-selected" program should be treated with extreme skepticism.
How it works: The salesperson presents projections showing you'll save thousands of dollars per year. These projections may assume unrealistically high utility rate increases, ignore the lease/PPA escalator clause, or overestimate your system's production based on ideal conditions.
The reality: Solar savings depend on many variables -- your actual electricity usage, your utility rate, the system's production, the contract's escalator rate, and future utility rate changes. No one can predict utility rates 20 years out with certainty.
Red flag: Guaranteed savings numbers, especially over a 20-25 year period, or projections that don't account for the escalator clause.
How it works: Sales representatives show up unannounced and use high-pressure tactics to get you to sign a contract on the spot. Common pressure techniques include "today-only" pricing, claims that the "incentive expires tomorrow," or implying that your neighbors have already signed up.
The reality: Legitimate solar savings don't expire overnight. Any reputable company will give you time to review a contract, compare options, and consult with others. The FTC's Cooling-Off Rule exists specifically because of high-pressure in-home sales.
Red flag: Any pressure to sign immediately, claims of expiring offers, or refusal to leave written materials for your review.
How it works: The salesperson emphasizes your low initial monthly payment but downplays or fails to clearly explain the annual escalator -- the percentage by which your payment increases each year. A 2.9% annual escalator doubles your payment over 25 years.
The reality: The escalator is usually in the written contract, but it may not have been clearly explained during the sales presentation. If the escalator was actively hidden or misrepresented, this may constitute grounds for legal cancellation.
Red flag: Emphasis only on the initial payment without clear discussion of how the payment changes over time.
How it works: The salesperson implies or states they are from your utility company, or that the solar installation is part of a utility program. They may wear uniforms, carry clipboards, or claim they need to "check your meter" before pivoting to a solar sales pitch.
The reality: Your utility company will not send door-to-door salespeople to sell you solar panels. Utility companies have their own communication channels and do not use third-party door-to-door solicitors.
Red flag: Anyone claiming to be from your utility company who then tries to sell you solar panels.
How it works: In some reported cases, salespeople have allegedly forged homeowner signatures on contracts, used electronic signature systems in misleading ways (e.g., telling the homeowner they're signing a "site survey" when it's actually a contract), or added terms after the homeowner signed.
The reality: This is outright fraud. If you discover that your signature was forged or that you signed something materially different from what was represented, you likely have strong legal grounds for contract cancellation.
Red flag: Being asked to sign documents on a tablet without the ability to read the full document, or discovering charges you never authorized.
How it works: The contract specifies premium panels or equipment, but the installer uses cheaper, lower-quality alternatives. Alternatively, the system installed is smaller than what was quoted, or the inverter is a different (less efficient) model.
The reality: This is a breach of contract and potentially fraud. The equipment installed should match exactly what your contract specifies, including manufacturer, model, and specifications.
Red flag: If the equipment being installed doesn't match the specifications in your signed contract.
Think you may have been misled when signing your solar contract? Get a free preliminary review to understand your options.
If you believe you've been the victim of a solar scam or deceptive sales practices, there are several agencies and organizations you can contact. Filing complaints creates a record that can help protect other consumers and may lead to enforcement action.
Document everything: Before filing complaints, gather all documentation: your contract, any written communications, photos of the installation, screenshots of text messages or emails from the salesperson, utility bills (before and after solar), and notes about what was verbally promised versus what was delivered. The more documentation you have, the stronger your complaint will be.
If you believe you were victimized by deceptive solar sales practices, you may have legal grounds to cancel your contract or seek damages. Common legal theories include:
Important: We do not advise homeowners to stop making payments or breach contractual obligations, even if you believe you were scammed. Missing payments can damage your credit and weaken your legal position. Continue paying while pursuing legal remedies. Consult a qualified attorney before taking action.
| Characteristic | Red Flag (Potential Scam) | Green Flag (Legitimate) |
|---|---|---|
| Sales pressure | "Sign today or lose the deal" | Encourages you to take time and compare |
| Savings claims | Guaranteed savings, unrealistic numbers | Estimated ranges with clear assumptions |
| Escalator disclosure | Hidden or downplayed | Clearly explained with projected costs |
| Government claims | "Free government solar program" | Explains available tax credits accurately |
| Contract review | Discourages reading the full contract | Provides time to review and ask questions |
| Company identity | Vague about who they represent | Clear company name, license number, contact info |
Generally, yes -- or at least misleading. There is typically no such thing as truly "free" solar panels. What's usually being offered is a solar lease or PPA where you don't pay for the panels upfront, but you commit to 20-25 years of monthly payments (often with annual escalators). You don't own the panels, and the total cost over the contract can be substantial. While solar leases and PPAs are legitimate financial products, calling them "free" is misleading.
Check their contractor license with your state's licensing board, look up their BBB rating and complaint history, read reviews on multiple platforms (Google, Yelp, SolarReviews), verify their physical address, and ask for references from past customers. A legitimate company will have a verifiable license, a physical office, and be willing to give you time to review the contract. See our company reviews →
Potentially, yes. If you were subjected to fraud, misrepresentation, or deceptive practices, you may have legal grounds to cancel the contract. Your options depend on the specific circumstances and your state's consumer protection laws. Common grounds include: misrepresentation of savings, failure to disclose material terms, forged signatures, or violations of cooling-off period rules. Consult a solar panel attorney to evaluate your specific situation. Find a lawyer →
You're not obligated to open the door or engage with them. If you are interested in solar, take their information and tell them you'll do your own research. Never sign anything on the spot. Ask for their company name, license number, and written materials. Compare their offer with at least 2-3 other companies. Check the company's credentials independently. And remember: legitimate deals don't expire overnight.
Yes, the federal Investment Tax Credit (ITC) for solar is a real incentive. However, scammers often misrepresent it. The ITC is a tax credit -- not a rebate or cash payment -- that applies when you purchase a solar system (not when you lease). The credit amount and eligibility criteria may change over time. Verify current ITC details at energy.gov or consult a tax professional. Be skeptical of anyone who mischaracterizes the ITC as a "free solar program."
Start with your state attorney general's consumer protection division -- search "[your state] attorney general consumer complaint." Also file with the FTC at ReportFraud.ftc.gov, the CFPB at consumerfinance.gov (for financing complaints), and the BBB at bbb.org. If fraud is involved (forged signatures, identity theft), file a police report as well. Gather all documentation before filing. State laws guide →
Get a free preliminary contract review to understand your options, or see which exit companies our editorial team recommends.
Disclaimer: This guide is for informational purposes only and is not legal advice. Solar scam characteristics described are based on commonly reported patterns and may not apply to every situation. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. SolarPanelExit.com and TRU Solar Cancellation share common ownership. Consult a qualified attorney before taking action. See our Ownership Disclosure and Advertiser Disclosure.