Common solar scams and how to avoid them

Your social media feed is probably full of them: ads promising free solar panels, guaranteed savings, or special government programs that'll pay you to go solar. Some even claim you'll get a check in the mail just for installing panels on your roof.

If it sounds too good to be true, it probably is.

The solar industry's explosive growth has created real opportunities for homeowners to save money and reduce their carbon footprint. But it's also attracted scammers who prey on people's desire to do the right thing for their wallet and the planet. Some use high-pressure tactics, others make promises that defy basic math, and a few are running outright frauds that can cost you tens of thousands of dollars.

The good news? Solar scammers aren't that creative. They typically use the same handful of tricks over and over—which means once you know what to look for, they're easy to spot. We'll walk you through the most common solar scams, the red flags that should make you pump the brakes, and how to find installers you can actually trust.

Disclaimer: This article is intended to provide an informational overview of consumer protections for interested homeowners. It's not intended to provide financial guidance. If you're interested in installing solar products, use your best judgment and seek advice from a licensed professional before making any purchase or investment.

You can be an informed solar shopper and increase your chances of avoiding scammers by being on the lookout for a few key things. Here are some of our recommendations for avoiding solar scams:

Avoid "Get paid to go solar" offers

The saying "there's no such thing as a free lunch" applies when shopping for solar. If you see ads on social media or have a door-to-door salesperson stop by your home and share special programs that pay you to go solar, they're likely not legitimate. Advertisements we've seen online that are usually an indication to avoid that company include messages such as:

• No cost solar

• Pay nothing for solar

• Get free solar panels and batteries

• Get a free Tesla Powerwall

While you can often qualify for $0-down solar financing, there is never a case where you won't see a cost for solar. With $0 down solar financing, you won't have a substantial upfront expense, which will help make purchasing your system much more accessible. For example, if you take out a loan for your solar panels, depending on interest rates, your monthly payments should be close to or below the electric bills you were paying. Then, once you pay off your solar panel system, you’ll get free electricity from the sun.

Solar leases and power purchase agreements (PPAs) are other $0-down solar options you may hear about. With leases and PPAs, you don't own the panels—you pay a monthly fee or per-kWh rate for the solar energy they produce. The right choice between purchasing, financing, or leasing depends on your financial priorities: Whether you want to maximize long-term returns, start saving immediately, preserve capital flexibility, or avoid maintenance responsibilities.

Some of the solar ads in your social media feeds are a bit misleading, so we recommend sticking with companies that are transparent about the costs, actual savings, and any specifics around qualifying for programs, incentives, credits, loans, or rebates.

Beware of anyone guaranteeing savings in a sales pitch

If someone tries to sell you on guaranteed savings, it's likely too good to be true. Some solar installers may guarantee that the solar panel system they size and install will cover a certain percentage of your energy usage based on your past electricity bills. This is normal, and if it’s covered under warranty, it’s actually a good protection for you.

Still, there's no way anyone can guarantee an exact amount you'll save because electricity rates fluctuate (though they are projected to continue rising), your energy usage may change over time, and solar panels will experience slight degradation as they age. You can also estimate the time it takes you to pay off your solar panel installation or break even on your investment by calculating your solar payback period.

In 2022, Fox 5 Atlanta aired an undercover report calling out some solar salespeople promising guaranteed savings that didn't come to fruition, costing the homeowners tens of thousands of dollars.

Don't believe claims of a guaranteed tax payout or check

Be cautious of anyone promising guaranteed tax payouts or making specific claims about how much you'll get back. While many state and local solar incentives still exist, they vary widely depending on your location, tax situation, and the type of system you install.

The federal solar investment tax credit (ITC) offered a 30% credit on solar installations, but it expires for systems installed after December 31, 2025. Here's where scammers often operate:

• False urgency: Companies claiming they can definitely get your system installed by year-end when you're just starting the process—most installers are already at capacity for 2025. If you see this claim, you’ll want to review the guarantee in writing and the company’s plan for if they fail to meet the deadline. 

• Post-expiration promises: Any company claiming you can claim the 30% credit for systems installed after December 31, 2025 (unless you're signing a lease or PPA, which do still qualify after this date—though the credit goes directly to the company that owns the system, not to you).

• Check promises: Claims that you'll receive the incentive as a check rather than as a tax credit.

• Guaranteed qualification: Promises that you'll definitely qualify regardless of your tax liability.

You'll need to speak with a qualified tax professional to learn about which incentives you qualify for, as eligibility depends on various personal financial factors. In general, you should avoid doing business with any company that claims incentives are guaranteed or that they can build incentives into your solar system price, even if you don't qualify for them. There are some legitimate prepaid lease and PPA models that do actually pass along the federal tax credit after 2025—just make sure to carefully review the contract and compare it against other solar quotes. 

Bottom line: Anyone promising and guaranteeing payouts to go solar is worth checking into a bit more.

To help you avoid solar scammers, you'll want to carefully review information about your installer (the company itself) and the quote you receive from them. When researching solar, compare quotes from a few different local solar installers. Comparison shopping for solar helps you learn about the installers, see reviews, and compare the equipment and size of the solar system they recommend.

You'll want to check a few details to confirm that your solar installer is legitimate and ensure you understand the terms of your solar contract, price, and, if applicable, solar loan, lease, or PPA. Here are the key things to check before signing any contracts:

Ensure your installer does quality work

Selecting a solar installer with a solid reputation is essential to know that you can trust their sizing, installation, and support. A few ways to confirm you use a reliable installer include checking reviews on EnergySage or Google and asking your neighbors or colleagues about their experiences. Look for company profiles that showcase installers' certifications, years in business, workmanship warranties offered, languages spoken, and success stories from past customers.

Know the average costs in your area

While solar pricing varies depending on your home's size, energy usage, and specific equipment, you can review the average cost of solar in your state. You can look at both price per watt ($/W) and total cost. The per-watt cost is a great way to ensure your price is in line with what others are paying nearby, regardless of the size of your system and how many panels you want. For example, as of November 2025, you'll pay approximately $2.07/W in Arizona; in Washington, D.C., you're looking at roughly $3.01/W.

A drastically low price isn't always a good thing. If a quote seems too good to be true, it probably is. Extremely low prices may indicate low-quality equipment, inexperienced installers, hidden fees that will surface later, or an undersized system that won't meet your energy needs.

Review system sizing and equipment details

Pricing from installers can vary substantially depending on the recommended size of your solar system and the types of equipment they quote you. As you might expect, the more solar panels you need, the higher the cost of going solar. However, getting too few solar panels may not cover enough energy usage, especially if you plan to install an EV charger or get a heat pump for more efficient heating and cooling. So, you want to make sure you have a large enough system. Also, the quality of your solar panels and inverter can mean a longer-lasting, higher-performing solar system (and can provide peace of mind if there's a solid warranty).

These are some additional ways to be an informed shopper and protect your solar investment:

There are some real ways you can save money using solar energy, including:

Reducing or eliminating your monthly electric bills

Solar can indeed help you decrease what you spend on electricity each month. Depending on your specific situation, you may reduce your bills or, in some cases, end up paying nothing each month by going solar. Your savings from solar will depend on various factors, such as your electricity rate, energy consumption, and solar panel system size.

The potential to get money back on your taxes

Many states offer rebates or tax incentives for solar installations, and programs like net metering can allow you to earn credits from solar energy you produce that you don't use.

Manufacturer rebates

Solar equipment manufacturers may offer rebates on certain products.

Here's the thing about solar scams: They work because they exploit your desire to save money and help the environment. That's not a character flaw—it's human nature. But the best defense against manipulation is information.

The solar industry has matured significantly, and there are plenty of reputable companies doing excellent work. The challenge is separating them from the scammers who've learned to mimic legitimacy. If something feels off—high-pressure tactics, vague answers about costs, promises that sound magical—trust that feeling. Good installers don't need to rush you or make unrealistic promises. They let the math speak for itself.

Real solar savings come from decades of reduced electric bills, not from "special programs" or guaranteed government payouts. When you approach solar as the long-term investment it actually is—and work with companies who are transparent about both the costs and the benefits—you can make a decision you'll feel good about for years to come.

Do your research. Compare multiple quotes. Check reviews. Ask hard questions. And if a company makes you feel uncomfortable at any point in the process, walk away. There are too many good options out there to settle for one that doesn't feel right.