Homeowners interested in adding solar panels to their property can now feel more secure thanks to new regulations aimed at curbing deceptive sales practices in the industry. The Consumer Financial Protection Bureau has finalized rules to protect consumers who take out Property Assessed Clean Energy (PACE) loans.

The new regulations will prevent homeowners from being pushed into loans they cannot afford through aggressive sales tactics and other financing schemes. According to Consumer Affairs, most PACE loans are sold through door-to-door sales, promising energy savings and other benefits.

The Department of Financial Protection and Innovation found that property taxes can increase significantly with the added cost of a PACE contract. Further, homeowners who cannot afford the increased property taxes could lose their homes to foreclosure.

"[This] rule stops unscrupulous companies and salespeople from luring homeowners into unaffordable loans based on false promises of energy savings," said bureau director Rohit Chopra, per Consumer Affairs. "Homeowners deserve to know just how much they are paying when they put their home and financial future on the line."

The new rule complements ongoing efforts to subsidize costs for homeowners for solar panel installation under the Inflation Reduction Act. Through tax credits, homeowners can save thousands in installation costs and energy bills. Learn more about how you can take advantage of IRA tax credits. 

Couple the tax credits with the accumulating savings over time, and you've got yourself more bang for your buck. Check out EnergySage's free tool to compare solar panel estimations and quotes.

Going solar isn't just about protecting your wallet, it's a substantial way to combat climate change. While solar panels drastically reduce energy bills, they simultaneously reduce our reliance on fossil fuels, lowering planet-overheating pollution. Homeowners can now confidently embrace clean energy while saving money and contributing to a cleaner planet.

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