Protecting Yourself From The Top 5 Solar Energy Scams

Protecting Yourself From The Top 5 Solar Energy Scams

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Key Takeaways:

  1. Solar energy has become increasingly popular in recent years due to the falling cost of solar panels and technological advances.
  2. However, there are many scams associated with solar panel installation and purchase.
  3. Some common scams include free solar panel offers, upfront cost schemes, unrealistic saving predictions, and more.
  4. Home and business owners should look for red flags, like high-pressure sales tactics and no certification—deposit fee upfront and no insurance.
  5. Homeowners interested in installing solar panels should consider their energy usage, roof condition, budget, and more before deciding.

In recent years, solar energy has become an increasingly popular alternative to traditional forms of energy. In the past, solar panels only had an efficiency of around 15%. But new advancements in photovoltaic technology have increased that number to over 20%. The improvement has resulted in panel power ratings increasing from 250W to 370W. And it doesn’t stop there – by 2030, one report says solar panel efficiency will improve six-fold.

There are many reasons for this surge in popularity, including the falling cost of solar panels and technological advances that have made solar energy more efficient. In addition, concern over climate change and the need to reduce carbon emissions has helped spur interest in solar energy.

Are you interested in solar energy for your home or business? If so, it’s essential to be aware of the many solar scams. Core Home Innovations share tips on protecting yourself from scams in 2023 and beyond.

Solar Scams 101: Top Scams in the U.S.

As the solar energy industry grows, so does the number of scams. Here are some of the most common solar scams in the United States:

1. Free Solar Panel Scam

A solar installer will contact you out of the blue and offer free solar panels for your home or business. They may even say that the government has selected them to provide free panels to businesses in your area.

Of course, there’s no such thing as a free lunch. The truth is that these companies will install subpar panels on your roof and then sign you up for a long-term contract with high monthly fees. You may also be required to pay for maintenance and repairs, which can be very expensive.

Please note that the U.S. States only offer a tax credit for installing solar panels, and there are no free solar panel options.

2. Upfront Cost Scam

Some solar installers will promise low upfront costs and charge hidden fees later. For example, they may charge you an annual fee for the “privilege” of owning solar panels. They may also require you to buy an insurance policy from them, which can be very expensive.

3. Solar Panel Leasing Scam

In this scam, a solar company will offer to lease your solar panels with no money down. That sounds like a steal. In fact, it is, well, for solar companies anyway.

The leasing contract will have many hidden fees. You may end up paying much more than if you had purchased the panels outright. Scammers also tend to implement solar rebates and incentive scams while leasing panels. This way, they can pocket the money that is supposed to go to the homeowner.

4. Solar Incentive and Rebate Scam

State and local governments and utility companies offer solar incentives and rebates to encourage homeowners to switch to solar power.

Solar incentives or tax credits allow you to deduct a certain amount of money from your taxes for solar panels.

Solar rebates are cash payments that lower the cost of your solar panel installation. Both programs are great, but scammers have been taking advantage of them. They will promise significant incentives or rebates and then pocket the money instead of using it to offset the installation cost.

They can also acquire tax credits through leasing programs, as the state only offers credits to the owners of the solar installers. In other words, these are given to the solar companies, not those who lease from them.

5. Unrealistic Saving Predictions

Solar companies will often give you an estimate of how much money you can save by switching to solar. However, these predictions are often too good to be true. They do this because they want you to sign a contract with them.

They will lowball the estimates of your electric bill savings and installation cost. Then, once you’ve signed the contract, they will jack up the price. It is why getting a second opinion before signing anything is essential.


Factors To Consider Before Solar Installation

Many factors must be considered during solar installation to make an informed decision. The key is to avoid getting scammed and research before anything else. Consider the following factors:

1. Energy Usage

How much energy do you use? Do you live in a warm climate or a cold one? These are important questions because they will help solar installers determine how many panels you need for your home.

2. Roof

Does your roof get much sun? Is it in good condition? It is not ideal for solar installation if you have a shaded roof or one that needs repairs. Consider contacting a roofer first.

Related: 5 Least Expected Indicators Of Roof Damage

3. Budget

Solar installation can be expensive. You must ensure you can afford the initial and maintenance costs down the road.

Solar Installer Red Flags

There are some red flags that you should be aware of when hiring a solar installer during your home improvement project:

1. They use high-pressure sales tactics

2. They require a deposit upfront

3. They are not certified

4. They do not have insurance

5. They do not have references

6. They are not familiar with the solar rebates in your area

7. They are not willing to give you a written estimate

8. They are not familiar with the permitting process in your municipality

9. They are not using quality products

10. They do not have a warranty for their work


Researching solar scams ahead of time and being aware of the red flags can save you much money, time, and headaches down the road. When in doubt, always consult with a certified professional to get a second opinion on any offers that seem too good to be true.

Professional Solar Installers in Spring, TX

Core Home Innovationsis a company you can trust–we know that solar installation might be overwhelming with all the scams out there. Our exceptional team will help you through every step so that it’s as smooth as possible.

We focus on providing the best customer service and the highest quality solar installation and maintenance in Spring, TX.

Don’t hesitate to contact us if you’re considering switching to solar. Get in touch with us today and get a free quote.


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