Short answer
Solar panel scams usually involve misleading sales claims, such as promises of no cost, a bill that disappears, a tax credit you can't actually use, or a contract that is different from what the salesperson described.
- If you were misled, gather your contract, sales materials and bills, and write down what you were told.
- Report it to your state attorney general or consumer protection office, and the Federal Trade Commission.
- Keep making required payments while you look at options, to avoid collections and credit damage.
Warning signs in a solar sale
Most complaints about solar sales follow a few patterns. Be careful if a salesperson:
- says the system is free, or that a government program pays for it,
- promises your electric bill will disappear without showing how the numbers work,
- counts on a federal tax credit without asking if you owe enough tax to use it,
- pushes you to sign on a tablet right away, or skips through the contract,
- claims to be from your utility company or a government agency,
- or won't leave a copy of the contract for you to read.
Not every disappointing system is a scam. Panels can underperform because of shading, weather or utility rate changes. But if what you signed doesn't match what you were told, that is worth looking into.
Loan, lease or PPA: know what you signed
Solar deals come in three main forms, and each one changes your rights and your options.
- Solar loan. You own the panels and repay a loan, often over 20 years or more. Some loans assume you will use the tax credit to pay down the balance early; if you don't, the payment can jump.
- Solar lease. A company owns the panels and you pay a fixed monthly amount to use them, often with an annual increase built in.
- Power purchase agreement (PPA). A company owns the panels and you pay for the power they produce at a set rate, which may also rise each year.
Look at the first page of your contract and your monthly statement. They will tell you which one you have, who owns the system and who you pay.
What to check if something feels wrong
- The cancellation window. Under the federal cooling-off rule and many state laws, home solicitation sales often come with a few days to cancel. If you just signed, check your contract now.
- The real price. Compare the total cost over the life of the contract, including dealer fees and yearly increases, with what you were told.
- Production estimates. Compare the promised production with what your monitoring app or utility bills show.
- The tax credit. Check with a tax professional whether you could use the credit the salesperson counted on.
- Liens and filings. Some solar contracts include a filing on your property records, which can matter when you sell or refinance.
What to do if you were misled
- Collect your documents: the contract, any sales proposal, emails, texts, your bills before and after solar, and monitoring data.
- Write down what you were told, by whom and when, while you still remember it clearly.
- Contact the installer and the finance company in writing. Describe the problem and what you want, and keep copies.
- File complaints with your state attorney general or consumer protection office, the Federal Trade Commission, and the Consumer Financial Protection Bureau if a loan is involved.
- Keep paying what your contract requires while you work on it. Missed payments can lead to collections, credit damage and, with some contracts, a lien problem.
- Get a contract review from an attorney or a qualified review service if the amounts involved are large.
Options homeowners may have
What is possible depends on your contract, your state and what happened. Depending on the facts, homeowners sometimes:
- cancel within a cooling-off period,
- get repairs, adjustments or production promises in the contract honored,
- negotiate a change to the loan, lease or PPA terms,
- potentially recover money or get out of a contract through a negotiated settlement, a complaint process or legal action if the sale was misrepresented,
- or buy out a lease or PPA, or pay off a loan, especially when selling the home.
No outcome is certain, and anyone who promises you a specific result before reviewing your documents is a red flag in itself.
How we're paid: HomeownerPedia publishes free guides for homeowners. Some links on this site may lead to partners who pay us for referrals. We tell you on the page when that's the case. You decide whether to move forward. HomeownerPedia is not a law firm. Results are never guaranteed and depend on your contract and your state.
Selling a home with solar panels
If you own the system outright, it usually transfers with the house. With a loan, a lease or a PPA, you may need to pay off the balance or have the buyer take over the agreement, which requires the finance company's approval. Start that conversation early, because it can slow down a sale. Our guide to selling a house for cash covers fast sale options if timing is tight.
Questions homeowners ask
How do I know if I was scammed by a solar company?
Compare what you were told with what you signed. Warning signs include being told the system was free, that your bill would disappear, or that you would get a tax credit you can't use, and a contract that doesn't match the pitch. Not every underperforming system is a scam, so start by reviewing your documents.
Can I cancel a solar contract?
Many home sales come with a short cooling-off period to cancel, under federal and state rules. After that, cancelling depends on your contract and your situation, and may involve a negotiated release or legal claims if the sale was misrepresented.
Where do I report a solar scam?
Your state attorney general or consumer protection office, the Federal Trade Commission, and the Consumer Financial Protection Bureau if a loan is involved. Keep copies of everything you send.
Should I stop paying my solar loan if I was misled?
Stopping payments can lead to collections, credit damage and lien problems. Keep paying while you pursue a complaint or review, and get advice for your own situation before changing anything.
