“The number of homeowners opting for solar energy has grown rapidly in the US over the past decade,” says Josie Garcia, Chief Operating Officer and Vice President of Client Services of Solar Equity Solutions, “and, sadly, fraud has grown right alongside it. The Federal Trade Commission has issued repeated warnings about residential solar companies using deceptive sales practices. And officials in a number of states have launched investigations into aggressive marketing by solar power companies.”

Solar Equity Solutions has been at the crossroads of solar industry proficiency and consumer-protection law for years, helping homeowners terminate unfair solar contracts and restore financial freedom with trusted independent legal support. Its mission is to protect consumers from deceptive solar agreements and give them the support they deserve.

Garcia, who oversees operations at Solar Equity Solutions, plays a central role in aligning the company’s operational execution with its mission to protect homeowners navigating complex solar contracts. She is passionate about fostering meaningful connections with the homeowners Solar Equity Solutions serves and is dedicated to creating structured, client-first systems that deliver clarity and measurable results in a highly sensitive and legally nuanced industry.

It’s important to know the telltale signs of fraud to avoid becoming the victim of a scam when installing a solar system or when signing a contract on a power purchase agreement (PPA). The following explores the most common of those signs.

Avoid solar leases with short windows for savings

“Legitimate solar installers or companies offering PPAs want an informed customer,” Garcia says. “Scammers, on the other hand, want you to sign a contract before you've had time to think it over.”

The type of high-pressure sales tactics Garcia points to are a common sign of a solar scam. If a salesperson can get your signature before you've had a chance to carefully review a contract's fine print, they can get you locked in to a contract that may not be in your best interest. That’s why it’s best to steer clear of those who say their price is “only good today” or that the tax credits you’ll qualify for “expire this week.”

“A salesperson who says you need to decide ‘right now’ or that they can only hold the price until ‘the end of the day’ is a red flag,” Garcia says. “A fair contract can certainly survive a 24-hour delay. If they won’t let you sleep on it, you should probably pass on it.”

In addition to pushing for a quick close, scammers will often push consumers to financing options that benefit the third-party company selling the solar contract. If the contract doesn’t permit you to shop for your own solar financing, it’s probably a sign that the salesperson earns a commission on the loan, which is another red flag.

Be suspicious of salespeople who guarantee savings from solar energy

Those selling solar energy systems will often make impressive financial claims upfront, saying solar will do away with electric bills and even make money for homeowners who sell solar to the grid. The reality, however, is that savings are never guaranteed. 

“The numbers salespeople often cite as guaranteed savings come from best-case assumptions, and not studies involving your actual home,” Garcia explains. “Your savings will depend on your utility company’s rate structure, your home’s electricity consumption, weather patterns, and your system size. It’s also impossible to forecast rate hikes, policy shifts, and net metering credit values 10, 15, or 20 years from now.”

To ensure you get a reliable assessment of what you’ll save, require a written estimate that itemizes how much energy the solar power system will produce and how much it will remove from your utility bill. The estimate should take into consideration the specifics of your situation, including how much of your roof is shaded and your location’s actual energy costs.

Look for vague wording in solar contracts

Your solar contract defines roles and responsibilities for you and the solar company over the life of the contract. If its language is unclear, it could mean you are committing to something that will cost you in the long run.

“If the contract is legitimate, it will clearly spell out the size and brand of the system you’re getting, which is crucial to ensure that it’s a proper match for your home’s needs. We’ve seen several instances of homes with solar panel systems that are too small to be effective,” Garcia says. “A legitimate contract will also be transparent about the total cost and financing factors, the length of the warranty, and who will be responsible for maintenance and repairs on the system,” Garcia says. “With fraudulent contracts, those details are often left fuzzy or concealed in a separate document that isn’t presented to the homeowner until after signing.”

Key elements that should be covered in a solar contract include escalator clauses, equipment warranties, cancellation windows, lien disclosures, and total system cost. If not understood upfront, these factors can lead to unexpected costs that may not surface until months after a contract has been signed.

Overall, the best defense against a scam is asking a lot of questions on the front end. If salespeople aren’t willing to quickly provide assurances like proof of a state contractor’s license, proof of insurance, or references from local satisfied customers, then they’re probably trying to hide something.

“The most common scams used by solar salespersons don’t look like outright theft,” Garcia says. “What we see most often are sales pitches that look legitimate, but have a few important details left out on purpose.”