Common Solar Panel Scams and How To Avoid Them

Solar panels have developed as a popular option for environmentally conscious individuals and businesses seeking sustainable and renewable energy sources. But as the demand for solar energy solutions grows, an alternate reality exists: a spike in solar panel scams.  

If you are facing this situation right now, we have your back. According to solar panel attorney Jesse J. Thaler, solar panel scams, or construction fraud, can occur in different types, such as false billing, collusion, material falsification, and diverting funds.

In this discussion, we will reveal the secrets behind these scams and provide you with the knowledge and tools to make informed decisions. Keep reading to discover the truth about common solar panel scams and how you can steer clear of them.

Fake Solar Panel Companies

These companies often present themselves as legitimate and trustworthy, but in reality, they’re just looking to take advantage of people who are interested in switching to solar energy. These scammers will promise you huge savings on your electricity bills and sell you low-quality solar panels at exorbitant prices. They may even pressure you into signing contracts without giving you enough time to read and understand the terms and conditions.

One common tactic used by these fake companies is to offer free solar panel installations. They’ll claim that the government or a reputable organization is funding the project, but this is just a ploy to get you to sign up quickly. Once they’ve got your signature, they’ll disappear, leaving you with subpar solar panels that aren’t properly installed or even functional.

To avoid falling victim to these scams, make sure to check their credentials, read reviews from other customers, and ask for references. Legitimate solar panel companies will be transparent about their pricing, warranties, and installation process.

If something sounds too good to be true, it probably is. Trust your instincts and be cautious when dealing with companies that are offering unbelievable deals. 

High-Pressure Sales Tactics

When considering solar panel companies, be cautious of those employing high-pressure sales tactics. These companies often use aggressive techniques to push customers into making hasty decisions. They may create a sense of urgency by offering limited-time deals or claiming that government incentives are about to expire. By pressuring you to sign contracts on the spot, they limit your ability to thoroughly research and compare your options.

High-pressure sales tactics can also involve misleading claims about the savings and benefits of solar panels. These companies may exaggerate the potential energy savings or downplay the costs involved in the installation and maintenance of solar panels. They may also use complex technical jargon to confuse and intimidate you into making a quick decision without fully understanding the terms and conditions of the agreement.

To protect yourself from falling victim to these tactics, it’s important to take your time and carefully consider all aspects of the solar panel installation. Research different companies, read customer reviews, and get multiple quotes. Ask for detailed information about the costs, warranties, and maintenance requirements. If a company is pressuring you to make an immediate decision, it’s a red flag and a sign to walk away.

Misleading Financing Options

While financing can make solar panel installations more affordable, some companies may try to take advantage of unsuspecting customers. One common tactic is to advertise low interest rates or no upfront costs, only to later reveal hidden fees or higher interest rates. 

To avoid falling victim to misleading financing options, it’s important to do your research and ask the right questions. Start by seeking multiple quotes from different solar companies and comparing their financing options. Look for transparency and clarity in the contract, ensuring that there are no hidden fees or unexpected charges. In addition, take the time to read and understand the terms and conditions before signing anything.

It’s also a good idea to check the reputation and credibility of the solar company you’re considering. Look for reviews and testimonials from previous customers to get an idea of their experiences. If possible, reach out to these customers directly to ask about their financing experience and any potential issues they encountered.

Shady Installation Practices and Process

Some solar panel companies engage in questionable practices during the installation process so it’s important to be aware of these shady installation practices and know how to avoid them.

  • One common tactic is the use of subpar materials. Some companies may cut corners by using low-quality panels, inverters, or mounting hardware. These inferior components can result in decreased energy production and may not withstand the test of time.
  • Another concerning practice is improper installation techniques. Some companies may rush through the installation process, neglecting critical steps such as proper sealing, grounding, and wiring. This can lead to leaks, electrical issues, and even fire hazards.
  • Some companies may fail to obtain the necessary permits and certifications for the installation. This not only violates local regulations but also puts you at risk of fines and potential system shutdowns.

To avoid falling victim, you can request references, read reviews, and ask about the materials and techniques they use. Investing in a reliable and professional installation will ensure the long-term performance and safety of your solar panel system.

False Promises of Energy Savings

While solar panels are a great way to reduce your carbon footprint and save on electricity bills, it’s important to be cautious of false claims that guarantee excessive energy savings. 

One common tactic used by these dishonest companies is to manipulate the data and calculations used to determine the potential energy savings. They may use unrealistic assumptions, such as assuming constant maximum sunlight exposure throughout the year or not accounting for factors like shading or system inefficiencies. By inflating the potential savings, they make their solar panels seem more appealing and financially advantageous.

To avoid falling victim to these false promises, do thorough research and gather information from reputable sources. Consult multiple solar installation companies, get multiple quotes to compare the projected energy savings, ask for references, and speak to previous customers to get a better understanding of the actual savings achieved.


Overall, it’s important to be vigilant and aware of common scams. By staying informed and doing your research, you can avoid falling victim to: fake companies, high-pressure sales tactics, misleading financing options, shady installation practices, and false promises of energy savings. Remember to trust reputable and certified solar panel providers for a safe and reliable investment in renewable energy.

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