• Business Business

Industry insiders reveal how to avoid the most common scams while going solar: 'Frauds … can cost you tens of thousands of dollars'

"Some use high-pressure tactics; others make promises that defy basic math."

As more homeowners consider solar energy to save on electricity, scammers are increasingly targeting unsuspecting buyers with flashy offers and misleading claims.

Photo Credit: iStock

As more homeowners consider solar energy to save on electricity, scammers are increasingly targeting unsuspecting buyers with flashy offers and unrealistic claims. While there are plenty of reputable companies to choose from, the solar industry has also attracted bad actors looking to make a quick buck. 

Industry experts Ellen Sirull and Emily Walker have shared common tricks and red flags to watch for with EnergySage that can help you protect your money and make a smart solar investment. 

What are solar scams?

Solar scams are fraudulent, misleading schemes used by illegitimate companies to sell overpriced or nonfunctional solar systems. They exploit the growing demand for solar by offering deals that seem too good to be true, pressuring homeowners into making hasty decisions or providing false promises. 

Going solar is one of the best ways to save money on energy bills and help the planet, but finding the right company can be challenging. Luckily, trusted resources like EnergySage make it easy to shop for solar with confidence, thanks to free tools that let you compare quotes from qualified, vetted contractors. 


Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers in your area.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best options for your needs, and their expert advisers can help you compare quotes and pick a winner.

The Cool Down may receive a commission on signups made through links on this page, but we only promote partners we vet and believe in. For more cool tips like this one, check out our solutions marketplace here.

What common solar scams should I watch for?

Sirull and Walker explained that many fake companies use social media to lure interested buyers with promises of free solar panels or equipment, guaranteed savings, tax payouts, or big checks simply for installing solar.

"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," they explained. 

While legitimate programs may offer $0-down financing, real solar systems always involve some cost, and genuine savings come from lower electric bills over time — not direct cash handouts. 

Scammers often say you can save a specific amount on your energy bill or receive guaranteed tax credit payouts. In reality, savings vary widely by energy usage, electricity rates, and system efficiency, and tax incentives will depend on your eligibility and location. Plus, the federal solar tax credit ended Dec. 31, so anyone claiming you can still take advantage of it isn't being truthful. 

FROM OUR PARTNER

Save $10,000 on solar panels without even sharing your phone number

Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner.

To see what tax incentives you're eligible for, you can use EnergySage's free mapping tool, which also provides a state-by-state breakdown of average solar system costs, making it easy to find the best deal and maximize savings. By using its free services, the average person can save up to $10,000 on solar purchases and installations — without worrying about scams. 

Adding battery storage can help you save even more by reducing nighttime energy use and will keep you safe during power outages. EnergySage also has free tools to explore home battery storage options and get competitive bids. 

What's the most you'd pay per month to put solar panels on your roof if there was no down payment?

$200 or more 💰

$100 💸

$30 💵

I'd only do it if someone else paid for it 😎

Click your choice to see results and speak your mind.

How to find a reputable solar company

To vet solar companies, the energy experts recommended comparing multiple quotes to understand typical prices and system sizes in your area. You'll also want to check their reviews and credentials, but be wary of any recent name changes or unresolved complaints — they might be trying to hide a bad reputation. 

Also, a reputable installer will answer your questions and explain costs, expected savings, warranties, and any available tax incentives or rebates. If they seem vague or evasive, that's usually a red flag. 

As a precaution, it's best to thoroughly research solar companies before signing any contracts and consider talking with a qualified tax professional to learn which incentives are available. 

Bottom line: Knowledge is power. Spotting red flags early can help you invest in solar safely and avoid costly scams.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.

Cool Divider