Solar Panel Problems: Common Issues and How to Fix Them

Solar panel problems generally fall into two categories: technical issues (system performance, equipment failures, installation defects) and contractual issues (billing disputes, misleading sales promises, unfavorable terms). Technical problems may be resolvable through maintenance, warranty claims, or equipment replacement. Contractual problems often require negotiation, legal action, or a structured exit strategy — and may indicate you were misled during the sales process.

System Underperformance

One of the most common solar panel problems is a system that doesn't produce the energy it was supposed to. There are several potential causes:

Why Your System May Be Underperforming

• Shading — trees that have grown since installation, new construction, or seasonal shading patterns that weren't accounted for during design
• Panel degradation — solar panels typically lose 0.5-0.8% efficiency per year. Over 20 years, this adds up to 10-15% reduced output, which should have been factored into your savings projections
• Inverter failure — inverters typically last 10-15 years, shorter than the panels themselves. When an inverter fails, your entire system stops producing energy
• Dirty panels — dust, bird droppings, pollen, and debris reduce panel efficiency. Regular cleaning may improve production by 5-10%
• Incorrect system sizing — the system was designed too small for your energy needs, or your energy usage has increased since installation
• Faulty wiring or connections — installation defects can reduce system output and may pose safety hazards
• Inflated production estimates — the most concerning cause. If the salesperson intentionally exaggerated how much energy the system would produce, this may constitute misrepresentation

What to Do About Underperformance

1. Review your contract's production guarantee — does it specify a minimum output?
2. Contact the solar company's customer service and document your complaint in writing
3. Request a system inspection from the installer or an independent solar technician
4. If the system is covered by a production guarantee and consistently falls short, file a formal claim under the warranty
5. If the company refuses to address the issue, consider filing complaints with your state AG and the BBB
6. If the underperformance is due to inflated sales promises, consult a consumer protection attorney

Billing and Savings Problems

Many homeowners discover that their actual savings are far less than what was promised during the solar sales process. This is one of the most frequently reported solar panel problems.

Common Billing Issues

• Promised savings never materialized — the salesperson claimed you'd save $150/month but your savings are $30 or less
• Escalator clause surprises — your monthly lease/PPA payment increases 1-3% annually, eventually exceeding your utility savings
• Hidden dealer fees on loans — solar loans often include dealer fees of 20-30% of the system cost, which were rolled into the loan balance without clear disclosure
• Double billing — paying both your solar company and your utility company, resulting in higher total energy costs than before solar
• Utility rate structure changes — your utility changed its rate structure or net metering policy, reducing the value of your solar production
• Tax credit confusion — the salesperson factored the federal tax credit into your "savings" but you don't owe enough in taxes to claim the full credit

Roof Damage and Installation Issues

Improper installation can cause serious problems that extend well beyond the solar system itself:

• Roof leaks — improperly sealed mounting penetrations can cause water damage to your roof, attic, and interior
• Structural damage — panels installed on a roof that can't support the weight, or improper mounting that damages roof trusses
• Electrical hazards — faulty wiring, improper grounding, or substandard electrical work that creates fire risks
• Voided roof warranty — installation may void your existing roof warranty if not done according to the roof manufacturer's specifications
• Aesthetic damage — conduit and wiring routed in visually unappealing ways, panel placement that looks unprofessional

What to Do About Installation Problems

1. Document the damage with photos and videos
2. Contact the installer in writing (not just by phone)
3. Get an independent inspection from a licensed roofer or electrician
4. File a complaint with your state's contractor licensing board
5. Check if the installer is bonded and insured — you may be able to file a claim against their bond
6. If the installer won't fix the problem, consult an attorney about negligent installation claims

Contract and Sales Problems

Contract problems are often the most difficult to resolve — and the most common reason homeowners want to exit their solar agreement entirely:

Misleading Sales Tactics

• "The system is free" — salesperson described the system as free when it's actually a lease, PPA, or loan
• "Government program" claims — salesperson implied the solar was part of a government subsidy program or utility company initiative
• Utility company impersonation — salesperson claimed to be from or affiliated with your utility company
• Undisclosed terms — escalator clauses, transfer restrictions, or termination fees not explained during the sale
• Pressure tactics — "this offer expires today" or other high-pressure approaches that didn't give you time to review the contract
• Forged or altered documents — signatures that aren't yours or contract terms that differ from what you were shown

If any of these happened to you, you may have grounds for contract rescission under your state's consumer protection laws. Learn about hiring a solar lawyer →

UCC Liens and Property Issues

Some solar companies file UCC-1 financing statements (often called "solar liens") on your property. This can cause significant problems:

• Complicates or blocks home sales by clouding the title
• May affect your ability to refinance your mortgage
• Can confuse title companies and slow down closings
• The lien may have been filed without your clear understanding or consent

Complete guide to UCC lien removal →

Problems When Selling Your Home

Many homeowners don't discover their solar contract problems until they try to sell their home. Common issues include:

• Buyer refuses to assume the solar agreement — the buyer doesn't want the solar contract, killing the sale or reducing your price
• Buyer doesn't qualify for the transfer — the solar company requires a credit check and the buyer doesn't pass
• Buyout cost is prohibitive — early termination fees can be tens of thousands of dollars
• UCC lien blocks closing — the title company won't close until the lien is resolved
• Appraisal doesn't reflect solar value — leased or PPA systems typically don't add value to your home appraisal

Complete guide to selling a home with solar →

How to Fix Solar Panel Problems

The right solution depends on what type of problem you're experiencing:

When to Consider Exiting Your Solar Agreement

If your solar problems are serious enough, exiting the agreement entirely may be the best option. Based on our research, consider an exit when:

• Your total costs consistently exceed what you'd pay for utility electricity alone
• The solar company refuses to honor its warranty or production guarantees
• You have documented evidence of sales fraud or misrepresentation
• The solar agreement is preventing you from selling your home at fair market value
• Ongoing issues are causing you significant stress with no resolution in sight

Exit Options

• Cooling-off cancellation — if within 3 business days of signing. Cooling-off guide →
• Contract buyout — pay the early termination fee to end the agreement
• Legal cancellation — if misrepresentation or violations occurred. Hire a lawyer →
• DIY exit package — structured document kits guide you through the exit process. Compare options →
• Negotiated settlement — work with the solar company directly or through an exit company to reach a resolution

Frequently Asked Questions