Solar sales red flags
Solar can be a good investment. Many pitches aren't. These are 38 tactics we see over and over, what's actually true, and what to do when you hear them.
Pricing
- Serious Quotes That Show Only a Monthly Payment "Don't worry about the total. What matters is your payment is only $158 a month, which is less than your electric bill." A monthly payment hides the total price, the system size, the price per watt and any dealer fee built into the loan. Two quotes with similar payments can differ by thousands of dollars in total cost.
- Common Surprise Electrical Upgrades and Change Orders "The price I'm quoting you is all-in. If your electrical panel needs anything, it's minor and we'll take care of it." Many homes need electrical work before solar or a battery can connect, such as a main panel upgrade, a new breaker, a meter change or trenching. If the quote doesn't include it, it often shows up later as a change order after you've signed.
Financing
- Serious Hidden Dealer Fees Behind "Low APR" Solar Loans "We can get you financed at just 1.99% APR, which is way better than any bank. Cash or loan, the price is the same." Low-rate solar loans are usually paid for by a dealer fee the lender charges the installer, which is added to your price. The CFPB says these fees typically run 10% to 30% of the cash price and sometimes exceed 50%.
- Serious The Month-18 Payment Jump (Reamortization) "Your payment is only $144 a month. When your tax credit comes in, just put it toward the loan and it stays that low." The low payment is often calculated as if you will pay down about 30% of the loan early. If you don't, the loan re-amortizes and the payment can jump by 40% or more. Homeowners who buy in 2026 get no federal credit to make that paydown.
- Serious Loan Payments That Start Before the System Runs "Your first payment won't be due for a while, and by then your system will be up and running and covering it." Many solar loans start when the lender pays the installer, which can be at installation, long before the utility grants Permission to Operate. During that gap, you pay both the loan and your full utility bill.
- Serious PACE Loans Sold as a "Government Program" "This is a government-approved energy program. There's no credit check, and it's paid through your property taxes, so it's not really a loan." PACE is private financing repaid as an assessment on your property tax bill. It is a loan in practice, it creates a lien on your home that can make refinancing or selling harder, and missed payments put the home at risk the same way unpaid property taxes do.
Pressure tactics
- Serious "This Price Is Only Good Today" "My manager approved a special price, but only if you sign tonight. We have one spot left in your neighborhood program." Solar equipment and labor costs don't change overnight. A discount that disappears tomorrow was almost always built into a high starting price, and it exists to stop you from comparing quotes.
- Serious Rushed Tablet Signing at the Kitchen Table "This is just the standard paperwork. Tap here, here and here, and I'll fill in the rest so we can get you on the install schedule." Those screens can include a 25-year lease or loan, a lien filing, credit authorization and a waiver of your right to cancel. If you don't see the full document before you sign, you don't know what you agreed to.
- Serious Pressure to Waive Your Right to Cancel "We can get the crew out tomorrow to lock in your spot. Just sign here to waive the waiting period so we can get started." The FTC Cooling-Off Rule gives you 3 business days to cancel most sales made at your home, and some states add more, such as California's 5 business days for buyers 65 and older. Starting work right away or asking you to waive the right is a common way to discourage cancellation.
- Common Fake Urgency Around Tax Credit, Tariff and Net Metering Deadlines "The federal tax credit is ending and tariffs are about to raise prices. If you don't sign this week, you'll miss out for good." Some solar deadlines are real, but many benefit the company more than you. The homeowner tax credit already ended for systems installed after 2025. The deadlines still in play mostly affect lease and PPA providers' own tax credits, and none of them justify signing a contract you haven't checked.
Contracts
- Serious A Lease or PPA Sold as a "Purchase" or "Program" "You're going solar with no money down. The system is yours, you just make monthly payments like any other home improvement." In a lease or power purchase agreement (PPA), the company owns the panels. You rent the equipment or buy its power for 20 to 25 years. That affects who gets tax credits, what happens when you sell your house, and who fixes the system.
- Common Lease and PPA Escalator Clauses "Your solar rate starts 20% below the utility's and only goes up a little each year, much slower than utility rates." Escalators of 2.9% to 3.9% a year nearly double or more than double your payment over 25 years. If utility rates rise more slowly than your escalator, your solar price can end up higher than buying from the utility.
- Common "Transferring the Lease Is Easy When You Sell" "If you ever sell, the new owner just takes over the lease. It's a simple form, and buyers love getting solar." A lease transfer usually requires the buyer to apply and pass a credit check with the solar company. Some buyers don't want the payment, and the UCC-1 filing can raise questions with mortgage lenders. If the transfer fails, you may have to buy out the lease or pay to move the system.
- Common "Everything Is Covered for 25 Years" "You're covered for 25 years, bumper to bumper. If anything goes wrong, we take care of it." A solar system has several separate warranties: panel product, panel performance, inverter, and the installer's workmanship. They have different lengths, different backers, and often exclude labor or roof leaks. A warranty from an installer that goes out of business may be worth nothing.
- Serious Installer Bankruptcy Risk Brushed Aside "We've been around for years and we're one of the biggest installers in the country. Our 25-year warranty means you're covered no matter what." Several of the largest U.S. solar installers and lenders filed for bankruptcy between 2024 and 2026. When an installer disappears, its workmanship and roof warranties usually disappear too, but your loan or lease payments do not.
- Common Sales-Only Companies That Subcontract the Install "We handle everything from start to finish. Our certified team will take care of your install, permits and service." Many solar sales companies are dealers that sell the contract, then pass the installation to a separate company and the financing to a separate lender. When something goes wrong, each party can point at the others.
- Common Fast-Start Promises and Months of PTO Delays "We'll have you installed and saving money within a few weeks. We handle all the permits and utility paperwork." A solar system can't legally run until the local permit is approved, it passes inspection, and the utility grants Permission to Operate (PTO). That process can take weeks to months, depending on your city, utility and HOA, and the installer doesn't control most of it.
- Common Production Guarantees That Pay Pennies "We guarantee your production. If the system makes less than we promised, we'll pay you the difference." Many production guarantees cover only a portion of the estimate, pay shortfalls at a low per-kWh rate, measure over several years, and have exclusions for weather, shading and outages. In practice they rarely make you whole for an overstated estimate.
Misleading claims
- Serious "Free Solar" and "Government Solar Programs" "There's a new government program in your area that puts solar on your roof for free. You just pay a small monthly amount instead of your electric bill." No federal or state program installs free panels door to door. "Free" or "no-cost" almost always means a $0-down lease, PPA or loan with 20 to 25 years of payments.
- Common "Your Electric Bill Will Be $0" "Once the panels are on, your electric bill goes away. You'll just have your solar payment instead." Most homes with solar still get a utility bill every month. Fixed customer charges, minimum bills, low export credits under net billing, and winter months with less sun mean a $0 bill is rare.
- Common "Electric Rates Go Up 6% to 8% Every Year" "Utility rates go up 6 to 8 percent every single year, so over 25 years you'll save over $150,000 by locking in solar now." From 2005 to 2025, average U.S. residential electricity prices rose about 3.1% a year, or about 0.5% a year after inflation (EIA and BLS data). Some years and some states spike higher, but a 6% to 8% yearly assumption for 25 years inflates savings a lot.
- Serious Salespeople Posing as Your Utility "Hi, I'm with the utility. We're checking meters in the neighborhood and reviewing your rates. Can I see your latest bill?" Utilities don't send people door to door to sell solar or review your bill. A rep who implies a utility connection is using borrowed trust to start a sales pitch, and may be collecting your account information.
- Common "Can I See Your Electric Bill?" "Just grab your latest electric bill so I can see if you qualify. I'll snap a quick photo of it." A fair quote does need your usage history. But a photo of your bill also gives the rep your utility account number, which can be used to file paperwork in your name, and a single high bill is often used to exaggerate your savings.
- Minor "Solar Adds 4% to Your Home's Value" "Studies show solar adds about 4% to your home's value, so the system basically pays for itself the day it's installed." The two studies usually cited are from 2015 and 2019, and both cover owned systems. Premiums likely shrink as install prices fall. Leased systems usually add no value and can make a sale harder. Loans generally must be paid off at closing.
- Common "Refer Your Neighbors and Your System Is Free" "Just refer three or four neighbors and your system basically pays for itself. Lots of our customers end up with free solar." Referral bonuses are a marketing cost, usually paid only when a referred neighbor signs and the install is completed. They almost never come close to covering 20 to 25 years of payments, and they are rarely written into your contract.
- Serious Targeting Seniors and Non-English Speakers "This program is designed for seniors on a fixed income. You'll get a big tax refund and lock in low energy costs for the rest of your life." Retirees and households pitched in another language are frequent targets of misleading solar sales. Deals can rely on tax credits the buyer can't use, run longer than the buyer plans to stay, or come with a contract in a language the buyer can't read.
- Common Inflated 25-Year "Lifetime Savings" Numbers "Over 25 years this system will save you over $50,000. That's money straight back in your pocket." Lifetime savings headlines usually add up 25 years of future dollars as if they were worth the same as today's, assume you stay the whole time, and sometimes count tax credits or inflated rate increases as savings. The real value is usually much smaller and depends on what else you could do with the money.
- Common Fake Reviews and Pay-to-Play "Best Installer" Lists "We're rated the number one solar company in your area, with hundreds of five-star reviews. Just look us up." Some solar rankings are paid placements or are run by companies that sell homeowner leads to installers. Reviews can be filtered so only happy customers post, or written by the company. A high rating alone tells you little about how an installer handles problems.
- Serious Robocalls Offering Free Energy Audits and Rebate Checks "This is a courtesy call about your utility's energy rebate. Your home qualifies for a free solar audit. Can you confirm your address and your electric account number?" Unsolicited calls offering free audits, rebate checks or solar programs are usually telemarketing lead generation, and sometimes impersonate your utility. Your details may be sold to multiple installers, or used to submit applications you didn't authorize.
Equipment and sizing
- Serious Inflated Solar Production Estimates "This 8 kW system will produce about 12,800 kWh a year, which covers 120% of your usage." Production depends on your location, roof direction, tilt, shading and system losses. Estimates that ignore shading, skip degradation or use optimistic losses can overstate output, and every savings number built on it, by a wide margin.
- Common Solar Systems Sized Bigger Than You Need "Let's go with 10 kW so you're covered for the future. The extra power gets sold back to the utility, so it pays for itself." Panels beyond what your home uses often earn far less than retail, especially under net billing, where exports may be credited at a few cents per kWh. Extra capacity raises the price faster than it raises savings.
- Common Home Batteries Sold on Exaggerated Savings "Add the battery and you'll save another $150 a month, plus you'll never lose power again. It basically pays for itself." At about $1,130 per kWh installed, a 13.5 kWh battery costs roughly $15,000. Bill savings depend on your rate plan and export rules, and in many places they are a few hundred dollars a year. Backup power has real value, but it isn't bill savings.
- Common "Tier 1 Panels" With No Model Numbers "We only use Tier 1 panels and premium inverters, the best on the market. Exact models depend on availability, but it's all top quality." The BloombergNEF Tier 1 list ranks manufacturers by bankability for large financed projects. It is not a quality, reliability or warranty rating, and nearly every mainstream panel brand is on it. Without model numbers, you can't compare quotes or check warranties.
- Common No Real Roof Assessment Before Installing "Your roof looks fine from the satellite image. Panels actually protect your roof, so you don't need to worry about it." Satellite images can't show shingle wear, rot or structural problems. If your roof needs replacing during the life of the system, the panels have to come off and go back on, which adds a cost the quote didn't mention.
- Common Bait-and-Switch Equipment Substitution "We may need to use an equivalent model depending on supply, but don't worry, it'll be the same quality or better." Many solar contracts let the installer substitute equipment of equal or similar specifications without your approval. Equivalent is rarely defined, so a cheaper panel, a different inverter type or a weaker warranty can show up on install day.
Policy and tax credits
- Serious Quotes That Subtract the 30% Federal Tax Credit in 2026 "You'll get 30% back from the federal government, so your real cost is only $16,800 instead of $24,000." The Section 25D homeowner credit does not apply to systems whose installation was completed after December 31, 2025. If you buy with cash or a loan in 2026, your federal credit is $0.
- Common Overstated Tax Credits: "You'll Get a Check From the IRS" "You'll get a 30% rebate check from the IRS next spring, so use it to pay down the loan and your payment stays low." The Section 25D credit only reduced federal income tax you actually owed. It was never a check. Households with little tax liability got little or nothing in year one, and some never used all of it.
- Common "Net Metering Is Guaranteed Forever" "Once you're approved, you're locked into net metering for life. The utility has to buy every extra kilowatt-hour at full retail price forever." Net metering is set by state law and utility regulators, and it changes often. Grandfathering usually lasts a fixed number of years, and many states and utilities have already moved new customers to net billing, where exported power earns far less than retail.
Where to report a solar scam
- Federal Trade Commission: reportfraud.ftc.gov for deceptive sales and door-to-door issues.
- Consumer Financial Protection Bureau: consumerfinance.gov/complaint for solar loans and lenders.
- Your state attorney general consumer protection office, and your state contractor licensing board (linked on every state page).