A salesperson knocked on my door and told me I could get rooftop solar panels at little or no cost? He said government programs would cover most of the costs of solar installation. He said his company had installed them for one of my neighbors.
Fortunately, since it sounded too good to be true and I know that’s the sign of a scam, I figured out that the “offer” was likely a scam.
While there are some government-funded solar programs for households that qualify, “going solar” isn’t free or near. Honest businesses will tell you how much it’ll cost to get and install solar panels.
Steer clear of solar installation scams with these tips, advises Larissa Bungo, senior attorney for the Federal Trade Commission:
Do research. Avoid solar companies that say a government program will cover the whole cost of solar panels – or say they’re from, or affiliated with, the government. These are lies. If you’re looking at solar energy for your home, get quotes from reputable providers with a valid license. Then compare them. Check out the U.S. Department of Energy’s guide for homeowners and commonly asked questions to learn more.
Don’t pay advance fees. Steer clear of anyone promising big savings and demanding large upfront payments or deposits. To get you to pay, scammers promise you big savings if you act fast – but they’ll vanish with no intention of ever doing or finishing the work. Legitimate providers will work with you to figure out whether solar energy is right for you. Check out the U.S. Treasury Department’s guidance on clean energy.
Take your time. If someone is rushing you to sign a contract or insists you sign an agreement on an electronic tablet without showing you the full agreement, stop. That’s something scammers do. Take the time to read and understand the agreement with the provider. Pay attention to warranties, cancellation policies, and payment schedules and try to spot hidden fees. Honest businesses will give you time to go over the terms of the contract, understand the agreement, and let you sign it in writing.
Another item to watch out for when you buy solar panels is residential solar energy financing lenders who are using predatory methods including undisclosed profit arrangements with their preferred installers and expensive financing with hidden fees as a standard practice to target consumers for financial exploitation, according to the Center for Responsible Lending, a consumer advocacy group. In addition, lenders’ installers often perform improper or incomplete solar panel installations that prevent homeowners from receiving the full benefit of reduced fossil fuel usage.
For more information, visit ftc.gov/solar. And if you spot a scam, report it to the FTC.
