Solar Sales Misrepresentation and Scams: Red Flags

Short answer

Common red flags include free or no-cost panels, guaranteed savings, a tax credit described as a rebate or check, and loan terms presented as a lease. If you were misled, gather your documents, write down what you were told, and report it to your state attorney general and the FTC.

Pitches regulators warn about

The FTC and the Consumer Financial Protection Bureau have both described the same patterns in residential solar sales:

"The panels are free." The FTC says free or no-cost solar offers are a scam sign. Someone always pays, usually through a long lease, PPA or loan.
"You will save money from day one." Overpromised savings are a common complaint. Savings depend on your usage, utility rates and contract terms, none of which a salesperson can guarantee.
"The tax credit pays you back." The CFPB found marketing often assumes you will get the full federal credit and shows a net cost after it. For systems you own installed after 2025, the federal residential credit no longer applies.
"Your payment stays the same." Many solar loans re-amortize to a higher payment if you do not make a large prepayment, often around month 19.
"There is no lien." Solar lenders commonly file UCC fixture filings in your property records.
"We are with the utility" or "a government program." Impersonating a utility or agency is illegal under the FTC Impersonation Rule.
Hidden dealer fees. The CFPB found these can raise loan principal by 30% or more above the cash price.

Document what you were told

Collect the paper. Contract, loan or lease agreement, disclosures, the cancellation notice if any, utility bills before and after, and every text or email from the company.
Write a timeline. Who visited or called, when, what they promised and what you signed, while you still remember.
Compare promise to paper. Highlight every place the contract differs from the pitch.
Check the dates. If you signed recently, you may still be inside a cancellation window.

Where to report

Federal Trade Commission: reportfraud.ftc.gov for deceptive sales practices.
Consumer Financial Protection Bureau: consumerfinance.gov/complaint for problems with a loan, lender or servicer.
Your state attorney general: the FTC recommends reporting solar problems to your state AG as well.
Your state contractor or solar licensing agency: for example the Contractors State License Board in California or the Department of Licensing and Regulation for solar retailers in Texas.

A complaint does not cancel a contract on its own, but it creates a record, and regulators use complaints to find patterns.

How to vet a solar exit company

Once a solar contract goes bad, a second wave of pitches can follow. Before you hire anyone to help you get out:

Walk away from guarantees. No one can promise your contract will be cancelled or that you will get your money back.
Get every fee in writing. Ask what you pay, when you pay it and what is potentially refundable if they cannot help.
Ask who does the legal work. If they say attorneys handle your case, ask for names and check them with your state bar.
Keep paying until you have advice. Be wary of anyone who tells you to stop paying right away; see what can happen if you stop paying.
Never hand over account logins. No legitimate service needs your bank or utility password.

We refer homeowners to one independent solar exit company that pays us per referral. Read how that works and ask them the questions above too.

Questions people ask

Is free solar a scam?

The FTC says offers of free or no-cost panels are a sign of a scam. Someone pays for the system, usually you, through a lease, PPA or loan.

What counts as solar sales misrepresentation?

Examples include false savings promises, describing a loan as a lease, claiming a tax credit is a rebate or guaranteed, hiding fees or liens, and pretending to work for a utility or government program.

Can I cancel a solar contract for misrepresentation?

Possibly, depending on your state, your documents and what was said. It is not automatic. Speak with a consumer protection attorney or request a free review to understand your options.

Where do I report a solar company?

Report to the FTC at reportfraud.ftc.gov, to the CFPB for loan problems, to your state attorney general and to your state contractor licensing agency.

Solar sales misrepresentation and scams: red flags and what to do