In any rapidly growing industry, there is the unfortunate likelihood of opportunistic individuals seeking to deceive unsuspecting consumers. The solar industry is no exception. This article explores various solar scams and how to avoid them.
About solar panel scams
One of the most common solar energy scams is misrepresenting the benefits of solar panels.
In a recent case, a Dallas jury found the sales techniques used by a solar company to reel in customers were scam tactics. The customer believed he would receive $8,000 in refunds the first year and another $8,000 in the second year by purchasing 43 solar panels.
He was promised a guaranteed electricity supply during a blackout. Additionally, by taking a $60,000 loan to install the roof solar system, he was duped that his monthly electricity bill would drop to $50.
The assurances of receiving $8,000 in refunds and a significant reduction in monthly bills were unfulfilled. During the 2021 ice storm, the house lost power without backup electricity. Also, their most recent bill was more than $700.
A Texan couple fell for one of the many free solar panel scams. Although the homeowners first rejected the sales pitch, they agreed when told that a government grant would cover the costs. When the bills began arriving at their home, they learned they had fallen prey to a door-to-door solar scam.
Are there any solar power scams?
Besides the aforementioned unscrupulous sales practices that usually target seniors, other shady moves include:
- Overpriced systems
- Pressure tactics
- Lease traps
- Phantom companies
- Dodgy financing
- Bait & Switch tactics
- Fake reviews
- Subpar installations
- Unnecessary upgrades
- Forged documents
- Vanishing acts
How to avoid solar panel scams?
As solar system scams thrive on ignorance, spotting danger signs will help you navigate the solar installation landscape. Knowledge is power, so stay sharp and always do your research.
Avoid ‘get paid to go solar’ programs
Usually known as solar incentives or rebate programs, these are legit initiatives by governments, power boards, or solar providers. The objective is to drive solar energy adoption.
While these are legitimate programs, these ‘get-paid-to-go solar’ programs are possibly scams when there are:
- False promises of payments – such programs promise payments or rewards they don’t intend to deliver. Potential customers are enticed with offers that are too good to be true.
- Fake incentives – offering rewards or benefits that do not exist or will be provided as advertised, for example, cashback or discounts.
- Twisted terms – misleading or ambiguous terms and conditions within the program either through complex language or hidden clauses to confuse potential customers.
- Misleading communication – unclear information to misrepresent the benefits or advantages of the program.
- Information theft – personal information of customers is collected under pretenses or used for unauthorized purposes.
- Overcharges – higher charges than initially agreed upon due to hidden fees or unexpected costs that were not disclosed upfront.
Be wary of guaranteed savings sales pitches
Guaranteed savings in solar installation are an enticing proposition but can also be misleading or exaggerated. Exploitations include:
- Overstating savings
- Ignoring variables
- Hidden costs
- Fine print tricks
- Assumed factors
Understand the terms and conditions thoroughly and request detailed breakdowns. These savings vary on a case-by-case basis and may not apply to your specific situation or geographical location.
Be aware of guaranteed tax payouts
Such payouts typically mean a guaranteed sum received via a tax-related program or scheme for installing solar systems. Always approach such claims with caution. Considerations include:
- Tax rebates or credits depend on varying factors like eligibility criteria and tax liability.
- Tax payout through loans against expected tax refunds usually comes with high fees or interest.
Research the company – ensure it is not a fake solar company
Solar panel investment can cost a pretty penny. Conduct diligent research before you proceed with signing the contract. The use of pressure tactics raises alarm bells.
Assess the company background. Check its history, testimonials, credentials, and affiliations before you choose a solar panel installation company.
Go for a second opinion if needed. Do an online search and speak to friends. They might inform you of the solar companies to avoid.
Be wary of phishing emails that promise cash for going solar
Unsolicited emails that dangle cash incentives for solar energy adoption should put you on high alert. They usually promise enticing rewards or cash-back offers to lure unsuspecting recipients. By clicking on links or replying to the email, you might disclose sensitive personal information, including bank details, social security numbers, or passwords.
Scrutinize these emails by checking the sender’s email address, suspicious links, or grammar and spelling errors.
Be aware of solar lease scams
Misleading lease agreements that promise high savings but come with unexpected costs or long-term financial commitments raise an alert. Often presented as a shortcut to affordable solar power installation, read the fine print of the lease contract and understand the terms before putting down your signature.
There is no harm in asking for a day or even a week to read the agreement without being pressured to sign it.
Be aware of misleading contracts
Solar energy contracts are in hard-to-understand jargon. It is worse when scammers go out of their way to cloak their deceit in ambiguous language.
Always seek clarity for the clauses that you are doubtful of. Take your time to read through the entire contract. You do not want the burden of undisclosed fees, unexpected expenses, or subpar services.
Do not be pressured by sales tactics
One of the most common pressure tactics in sales is creating a sense of urgency or exclusivity. Terms that raise red flags are:
- Limited-time offer
- Only in your area
- Exclusive deal
- One-day offer price
- Final chance
Legitimate companies allow potential customers time to weigh and consider the pros and cons before committing to a long-term contract.
Be wary of free panels and equipment offers
The promise of “free” is a tactic used by unscrupulous companies to lure potential customers. “Free” is a major warning sign, so be extra cautious. Before accepting free solar panels or other free offers, check the following:
- Quality of the panels or equipment and warranty period
- Fees and hidden costs
- Length of contract
- Electricity tariff
- Forced upgrades or add-ons
Nothing is truly free. Always verify the legitimacy of such offers before committing.
Take your time to make the decision
Solar system installation requires significant investments. Never feel pressured to decide on the spot. Reputable solar panel installation services are transparent in what they offer. They take time to explain the terms and conditions of the solar contract. Decide at your own pace after you have gathered all the information.
Get several quotes
Research different companies by comparing prices, quality, and terms and conditions before deciding. Weigh the warranties, maintenance, and payment schedules. Assess the level of customer service offered. By requesting several quotes and comparing them, you can scrutinize the service agreements and understand any potential limitations.
Verify if the company is legitimate
Verify the legitimacy of the solar company by checking credentials, certifications, and licenses. Run a background check. Look into their track record. Read testimonials or reviews from independent sources.
If necessary, verify with industry organizations or regulatory bodies. Visit their office. Feel free to pose questions or ask to look at their documents to confirm their authenticity.
Be aware of the installation costs in your area
Solar panel installation costs can vary significantly in different locations. Some other factors are:
- Size of installation
- Specific requirements of the system
- Labor costs
Take these factors into account when comparing quotes. Besides the upfront installation expenses, check potential costs like permits, grid connection charges, and maintenance fees.
While understanding your expenses, look into available solar incentives, rebates, or tax credits for solar energy adoption in your area.
How to get out of misleading solar panel contract incentives, rebates, or tax credits?
It is a tricky situation, but there are several actionable steps.
- Review the contract: Reread the contract and look for inconsistencies or discrepancies between the written terms and what was provided.
Look for:
- Performance guarantees
- Warranty details
- Maintenance and Service
- Cancellation and Termination
- Payment and Financing Terms
- Permitting and Installation Clauses
- Ownership and Liens
- Contract Dispute Resolution
- Upgrades and Changes
2. Contact the company: Reach out to the solar company and bring attention to the discrepancies.
3. Consult legal advice: If the company is uncooperative, engage a lawyer experienced in contract law.
4. Keep records: Document all communication with the solar company.
5. File a complaint: Consumer protection agencies can assist in resolving disputes.
6. Cancellation rights: Check local consumer protection laws to see if you have a legal right to cancel the contract within a specific timeframe and without penalty. Do cooling-off periods apply?
7. Renegotiate: If there are substantial misrepresentations, consider negotiating an exit from the contract with the solar company.
Communication is key. Always try for an amicable settlement first. At the same time, explore your rights under consumer protection laws.
How to report a scam? Where to seek help?
Victims of solar panel scams or fraudulent practices should seek help. Some of the avenues to turn to are:
- Consumer protection agencies: They handle scam reports. Actions can be initiated against fraudulent companies if found to have engaged in deceptive practices.
- Better Business Bureau: Report to BBB. They can help resolve issues between consumers and companies.
- Federal Trade Commission: The FTC receives complaints online via its website. Each report is added to their database to track patterns of fraudulent behavior.
- Local authorities: Your local law enforcement agency or state attorney general office can investigate and take legal action.
- Consumer advocacy groups: Consumer reports and the Consumer Federation of America offer guidance and sometimes directly assist in resolving issues.
- Consumer protection lawyer: Get advice on your options and take legal action against the scam company, if needed.
- Consumer review forums: Share your experience online. As you receive feedback on your situation, you can also alert others and prevent further victims.
Before filing your report, gather all relevant documentation, conversation proof, and other evidence.
Conclusion
Safeguarding your solar energy investments demands time, attention, and knowledge. This comprehensive guide shares common solar panel scam tactics and gives invaluable insights and strategies for navigating them.
Understanding the latest trends in the various solar scams can help you recognize warning signs and preempt potential pitfalls. Contact Just Solar for expert guidance to ensure your solar investment is secure.
