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Home solar panels can help some households save money on energy — but be careful if a solar panel salesperson knocks on your door or calls without warning.
There are plenty of reputable companies who can install solar panels or help you make other clean energy improvements to your home. Unfortunately, some scammers use misleading sales tactics to trick homeowners out of money or personal information.
The scam starts when someone pretending to be a salesperson or a government employee contacts you through email, social media or at your door and offers to install residential solar panels for low or no cost. They might also offer an “energy audit” to reduce your energy costs or guarantee huge rebates or incentives.
From there, the scam can take several turns — the “salesperson” may ask you to fill out forms with personal information or pay a deposit up front. Disreputable companies may also install the panels poorly, or not finish the job and disappear with your money.
People filed roughly 13,000 complaints with BBB last year about solar energy companies including contractors, equipment dealers and installers. The St. Louis Consumer Fraud Task Force warned about misleading solar sales last year.
Remember: Well-intentioned companies will give you time to consider their offer. If a salesperson is pressuring you to make a decision on the spot, consider it a red flag.
How to avoid solar panel sales scams:
- Do your research. If you’re thinking about solar, be proactive and research trusted companies in advance at BBB.org. Don’t accept an unsolicited offer on the spot; instead, research the company to learn more about its reputation and business practices. Ask for a list of satisfied customers and look at customer reviews online.
- Know that the government won’t offer you free solar. The federal government does not install residential solar panels for free; if someone is claiming otherwise, it’s probably a scam.
- If it seems too good to be true, it probably is. If someone is promising that you’ll save huge amounts of money by installing solar panels, they might be exaggerating to make a sale. Research in advance to find out how much the panels will likely cost and how much they will realistically save you in energy costs. Request substantiation of the company’s claims.
- Don’t give in to high-pressure sales tactics. Scammers want you to make a snap decision without thinking it through. Remember that a reputable company would be happy to give you time to decide. If someone uses aggressive sales tactics on you, it’s best to decline the offer and cut contact.
- Get multiple quotes. Ask at least three companies for quotes based on the same requirements — BBB’s Get a Quote service can help you get quotes from BBB Accredited Businesses. The lowest bid might not be the best bid; extra-low prices could mean the contractor is cutting corners or doesn’t fully understand your needs.
- Ask questions. Ask for details 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.
- Ask about a warranty. Ask the company if there is a warranty on the products and a guarantee on the installation in case of leaks, damage or other problems.
- Don’t pay in full before work is done. BBB frequently receives reports from customers who paid a large deposit or paid in full up front, only for the contractor to disappear. In some cases, a contractor may need a down payment to cover materials, but the bulk of the money should not be due until the work is completed.
- Report bad actors. If someone uses high-pressure tactics on you or you suspect a scam, report it to BBB Scam Tracker, the FTC or your state’s attorney general.