Watch for solar panel scams targeting homeowners

Many homeowners are going solar to save money, to go “off the grid” or to make a positive impact on the environment. No matter the reason, installing a solar system is a big purchase with many aspects to consider.

Be cautious when evaluating installation offers, as scammers may use misleading sales tactics to trick homeowners out of money and personal information.

How the scam works

You may be contacted by someone claiming to represent a solar company through email, phone, social media or even in person. They promote a special deal, offering to install solar panels at little or no cost.

In reality those offers often involve financing that is not clearly explained. What sounds like a free or low-cost installation may actually be a long-term loan with monthly payments. Some offers also may require credit checks or quick contract approvals, which can be a sign to slow down and review the details carefully.

One Ohio consumer reported they were told they could get solar panels at no cost. After asking more questions, they learned they had actually been approved for a $52,000 loan with monthly payments. The consumer said the offer was misrepresented, and the financing details were not clearly explained.

How to avoid solar panel scams

—Ask for referrals and research local solar installers. Ask friends and family members who already went solar for referrals. Search online for local solar installers and research each company carefully. Read customer reviews and check out the company’s business rating at BBB.org. As you learn more about each installer, pay attention to the cost of installation, the equipment they use, the quality of their work and how many years of experience they have with solar systems.

—Get competing bids. Once you’ve narrowed down your search, get estimates from at least three installers. Make sure each estimate details the same kinds of systems and installations to better compare.

—Ask plenty of questions and consider the answers. Ask questions about any aspect of a contract or proposal you don’t understand. If the company gets upset about your questions, refuses to answer them or is vague with their answers, consider it a red flag.