Solar Scams: How to Spot Them and Where to Report Them

Most solar scams are not people running off with your money. They are real contracts for real panels, sold with claims that are false or badly misleading: a tax credit you can’t get, a “free” system that is really a 25-year lease, a low loan rate that hides a large fee, or savings math built on fantasy assumptions. The damage shows up later, in a bill that didn’t drop, a payment that jumped, or a house that is hard to sell. The good news is that nearly every tactic can be spotted in advance if you know what to ask for.

This guide covers the most common tactics as of October 2026, how to protect yourself, and where to report a problem. For a full list with a page on each tactic, see our red flags library.

How big is the problem?

Solar complaints are common enough that federal regulators have called them out by name. At a 2024 public briefing, then-FTC Chair Lina Khan said consumers reported losing more than $250 million in solar-related complaints between January 2022 and June 2024 (FTC remarks). The same year, the Consumer Financial Protection Bureau published a report on solar lending that described hidden dealer fees, misleading tax credit promises and confusing contracts (CFPB Issue Spotlight).

State attorneys general have been active too. Minnesota sued four large solar lenders in 2024 over alleged hidden fees on about 5,000 loans. Arizona reached a court-approved consent agreement with Sunrun in 2025 that offers eligible customers restitution or repairs. Texas opened investigations into several solar companies’ sales practices in April 2026. None of this means every company is bad. It does mean you should verify claims instead of trusting them.

The tactics that cost homeowners the most

These are the patterns that show up again and again in complaints and enforcement actions. Each links to a detailed red-flag page.

Fake or outdated tax credit claims

The federal homeowner solar credit (Section 25D) ended for any system whose installation was completed after December 31, 2025. A cash or loan purchase installed in 2026 gets $0 in federal credit. Yet some sellers still show a “net cost after 30% tax credit.” That is either a mistake or a lie, and either way it understates your real cost by thousands of dollars. See claims of a 30% tax credit and our federal tax credit guide.

Lease and PPA providers can still claim a business credit (Section 48E) on systems they own, with deadlines. That benefit only reaches you if it shows up in a lower price. It is not money you receive.

Hidden dealer fees in “low-rate” loans

A loan advertised at 1.99% or 3.99% APR is often paid for by a “dealer fee” added to the price. The CFPB found these fees typically run 10% to 30% of the cash price and sometimes more than 50%. Lawrence Berkeley National Laboratory data shows loan-financed systems installed in 2025 had a median price of about $4.50 per watt, compared with about $3.00 per watt for cash purchases.

Worked example: a system with a $24,000 cash price and a 25% dealer fee becomes a $30,000 loan. You pay interest on $6,000 you never saw. Use the dealer fee calculator and read hidden dealer fees and our dealer fee guide.

“Free solar” and fake government programs

No government gives away rooftop panels to the general public. “No-cost solar” almost always means a $0-down lease, power purchase agreement (PPA) or loan with 20 to 25 years of payments. Some pitches use utility logos or say “I’m with the state program.” See free solar and government programs, utility impersonation and our full guide to free solar and government program claims.

Calling a lease a purchase

Some homeowners find out years later that they don’t own the panels. The paperwork was a lease or PPA, often with a public filing (a UCC-1) attached to the equipment that complicates refinancing or selling. Ask directly: “Who owns the system on day one?” See lease called a purchase and is a solar lease a bad idea?.

Inflated savings math

Savings estimates are only as honest as their assumptions. Common tricks:

• Rate increases of 5% to 8% a year. U.S. residential electricity prices rose about 3.1% a year in nominal terms from 2005 to 2025, and only about 0.5% a year after inflation (EIA data). Some years and some states spike higher, but compounding 7% for 25 years makes almost any system look great. See inflated rate increases and the electricity rate history tool.
• Production that ignores shade, roof direction or panel aging. See inflated production estimates.
• A $0 electric bill. Fixed monthly charges, minimum bills and low export credits make $0 rare. See zero electric bill promise.
• 25-year savings totals that aren’t discounted and assume you stay in the house the whole time. See undiscounted savings.

You can test a pitch line by line with our sales claim checker.

Pressure and rush tactics

“This price is only good tonight.” “My manager approved a special discount if you sign now.” “Just sign here on the tablet so we can check if your roof qualifies.” These lines exist to stop you from comparing quotes or reading the contract. See today-only pricing, tablet signing rush and fake deadline urgency.

A related trick is asking for your electric bill on the doorstep. It gives the seller your utility account number, which can be used to submit applications. See show me your bill and our guide to door-to-door solar sales.

Escalators and balloon payments

Many leases and PPAs raise your payment every year. A 2.9% escalator nearly doubles the payment over 25 years (1.029 to the 24th power is about 1.98). See escalator clauses and our escalator guide.

Older solar loans often assumed you would put a tax credit refund toward the balance around month 18. If you didn’t, the payment jumped. Since there is no homeowner credit for 2026 installs, any loan still built this way is a trap. See reamortization balloon.

Warranty and company-survival claims

“25-year warranty” may mean the panel maker’s product warranty, not labor, roof leaks or the installer’s work. And a warranty is only as good as the company behind it. Many installers and lenders failed between 2023 and 2026, including SunPower, Sunnova, Mosaic and Freedom Forever. See misleading warranties, installer bankruptcy risk and what to do if your solar company goes out of business.

Robocalls and “rebate check” calls

Calls offering a free energy audit, a rebate check or a “solar program” are often lead harvesting. The caller collects your details and sells them to multiple installers. See robocall rebate scams.

Targeting seniors and people with limited English

Retirees on fixed incomes were often sold tax-credit-based deals when they had little or no tax to offset. Others were pitched in Spanish and handed an English-only contract. California requires solar contracts to be in the language of the sales negotiation and gives buyers 65 and older five business days to cancel a home solicitation sale. See targeting seniors and solar for retirees.

How to protect yourself before you sign

You don’t need to become a solar expert. You need a short list of non-negotiables.

Ask for this in writing	Why it matters
The cash price, even if you plan to finance	Reveals any dealer fee built into the loan
System size in kW (DC) and price per watt	Lets you compare quotes fairly. See what’s a good price per watt
Exact panel, inverter and battery model numbers	Prevents “Tier 1” vagueness and later substitution
The production estimate and how it was made	Lets you check it against PVWatts with our production checker
Who owns the system and who installs it	Exposes leases sold as purchases and sales-only subcontractors
Workmanship and roof-penetration warranty terms, and who backs them	Separates real coverage from marketing
The savings assumptions: rate increase, degradation, export credit	Exposes inflated math
Your cancellation rights and deadline	Protects your exit

Then do three more things:

1. Get at least three quotes, ideally including one local installer that does its own installs. Put them side by side in our quote comparison tool, and read how to compare solar quotes.
2. Check the license. Look up the installer on your state contractor board. Each state page lists the license type and lookup link where we have it.
3. Run your own numbers with our solar calculator. If the seller’s savings are much higher than yours, ask which assumption explains the gap.

Bottom line: A legitimate installer will give you a written total price, model numbers, and time to think. If someone won’t do all three, walk away. There is no solar deal so good that it can only exist tonight.

If you think you’ve been scammed

Act quickly. Your options shrink with time.

1. Check your cancellation window. If you signed at home, the federal FTC Cooling-Off Rule usually gives you until midnight of the third business day to cancel, and some states give more. Send a written cancellation right away. Our cancel a solar contract guide has a template letter, and the cancellation tool helps you work out your deadline.
2. Gather documents. Contract, loan agreement, any proposal or savings estimate, texts and emails, the salesperson’s name, and the date and time of signing.
3. Contact the lender in writing if a loan is involved. Ask for a copy of everything you signed and dispute anything you didn’t agree to.
4. Do not stop paying a loan without advice. Missed payments can hurt your credit and may lead to collections, even when the seller behaved badly. Talk to a consumer attorney or legal aid office first.

Where to report a solar scam

Reporting helps even when it doesn’t get your money back. Regulators use complaint patterns to decide whom to investigate.

Where	What it handles	How
Federal Trade Commission	Deceptive sales, telemarketing, Cooling-Off Rule violations	ReportFraud.ftc.gov
Your state attorney general	State consumer protection and deceptive practices laws; most solar enforcement happens here	Search “[your state] attorney general consumer complaint”
Consumer Financial Protection Bureau	Solar loans, dealer fees, loan servicing problems	consumerfinance.gov/complaint
State contractor licensing board	Unlicensed work, poor workmanship, abandoned jobs	Linked from your state page where available
Your utility	Anyone falsely claiming to represent the utility	Phone number on your bill
State public utility commission	Some states run solar consumer complaint processes (for example, California’s CPUC publishes a solar consumer protection guide)	Your state PUC website

When you file, include dates, names, the company’s legal name from the contract, and copies of what you were promised versus what you got.

When solar is not a scam

None of this means you should avoid solar. A fairly priced system on a good roof, paid in cash or with a low-fee loan, in a state with decent export credits, can be a solid investment even without the federal credit. Some leases and PPAs are reasonable too, especially prepaid ones that pass the provider’s tax credit through in price. The point is to make the decision on real numbers. Start with is solar worth it in 2026 and our calculator, and if you want to cut your bill without a big contract, see cheaper first steps and efficiency before solar.