- Solar scams are legal but deceptive practices that homeowners should be aware of.
- These include high-pressure sales tactics, leasing, and purchasing agreements.
- You can avoid solar scams by researching, asking questions, and understanding your rights.
- A good solar installation company will be transparent about its pricing, have a good reputation, and offer a warranty on its work.
Are you thinking of adding solar panels to your home? You’re not alone! A growing number of homeowners are switching to solar energy for a good reason. Solar panels are not only a great way to save money each month, but they also help you play a role in saving the environment.
If you’re one of those homeowners looking to switch to solar installation, you should be warned about solar scams. Solar scams are unfortunately common, but not all solar companies are out to scam their customers.
Can-Am Roofing of Central Florida, LLC. will discuss some of the deceptive but legal practices used by some solar companies to watch out for. We’ll also give you tips on avoiding scamming and choosing a quality solar company that will provide you with years of reliable service.
6 Solar Scams Yet Legal Practices to Be Aware Of
When looking into solar panels for your home, you need to entertain the fact that you could get scammed. These six scams are legal but deceptive, so watch out for them!
1. Misleading Solar Savings Estimates
Many solar companies will give you an estimate of the savings you’ll see on your electric bill after switching to solar. This estimate is often based on outdated information or inaccurate assumptions.
To get a more accurate assessment of your potential savings, ask the company for their methodology and references to support their claims. You can also use this solar calculator to understand better how much you could save with solar.
2. Pressure Sales Tactics
Some solar companies use high-pressure sales tactics to get customers to sign on the dotted line. They may employ scare tactics, such as saying that time is running out to take advantage of solar incentives, or they may try to rush you through the decision-making process.
If you feel like you’re being pressured into signing a solar contract, take a step back and do some more research. A reputable company will be happy to answer all your questions and give you the time you need to decide.
3. Promising to Lease or Sell Your Solar System
Some solar companies will try to lease or sell you a solar system rather than help you finance it yourself. While this arrangement has some benefits, it’s not always in your best interest.
When you lease a solar system, you may end up paying more for electricity over the long term than if you had financed the system yourself. And if you decide to sell your home before the lease is up, you may have to pay a hefty fee to cancel the contract.
The main drawback of solar leasing is that you’re not the solar PV system owner. The solar company is. It means you don’t get the 26% of the solar tax credit, but the solar installer does. Other than that, you may also miss out on other state incentives for going solar.
4. Solar Power Purchasing Agreement
Like solar leasing, another popular solar financing option is the Solar Power Purchase Agreement or SPPA. In this agreement, a third-party solar developer owns, operates, and maintains the solar PV system on your rooftop. You purchase the power generated by the system at a fixed rate lower than your current utility rate.
The advantage of this type of financing is that it requires little to no upfront investment from the business owner. The main disadvantage is that you are not the system owner, so you don’t get any tax breaks or other incentives. The installer will be reaping all the benefits. Also, if your business doesn’t stay put for the length of the contract, you may have to pay a hefty fee to cancel the agreement.
5. Misleading Solar System Sizing
A common solar scam is for installers to size the system too small for your needs to make a quick buck. They do this by using outdated information on your energy usage, or they don’t consider future energy needs. An appropriately sized system will cover most, if not all, of your energy requirements and help you save money on your electric bill.
6. Inflated Savings Estimates
Solar companies will often give you an estimate of how much money you’ll save on your electric bill after going solar, which is unrealistically high. They do this by estimating inflated utility rate increases and giving low estimates of how much power your system will produce. Be sure to get a few independent estimates to compare before going solar.
Helpful Tips To Avoid Solar Scams
1. Do Your Research
The number one way to avoid being scammed is by doing your research and knowing what you’re buying. Learn as much as possible about solar energy and the process of going solar. It will help you understand the process and what to expect from a solar company. Read reviews, check with the Better Business Bureau, and get multiple estimates before making any decisions.
2. Get Everything in Writing
Get everything in writing, including all estimates, warranties, contracts, and guarantees. It will protect you if something goes wrong or the company tries to back out of its commitments.
3. Hire a Licensed Contractor
If hiring someone to install your solar panels, be sure they are licensed and insured. It will protect you if any damage or injuries may occur during the installation process.
4. Avoid High-Pressure Sales Tactics
Solar energy is a big investment, so take your time to decide. Avoid any company that uses high-pressure sales tactics or tries to rush you into signing a contract.
5. Know Your Rights
Understand your state and local laws regarding solar energy before entering into any contracts. It will help you know your rights and what you can expect from the installation process.
Also Read: A Solar-Powered Roof: Will It Pay Off?
When it comes to solar energy, it’s essential to research and know your rights. There are several solar scams, but if you’re aware of them, you can avoid them. Look for a reputable solar company that offers a warranty on their work and avoid high-pressure sales tactics.
Expert Solar Installation in Palm Bay, FL
If you’re looking for reputable roof and solar installers in Palm Bay, FL, Can-Am Roofing of Central Florida LLC. is the company for you. Other than residential roofing, we also specialize in solar installations. We’re committed to providing our customers with the highest quality service possible.