What are the most common solar contractor scams?

Five solar contractor scams account for the bulk of state attorney general consumer complaints and class-action lawsuits in the solar industry. Each has a specific defense.

1. Door-to-door high-pressure same-day contracts. "We can only offer this rate if you sign tonight." "The federal tax credit is changing soon — sign before it does." "We're only doing your neighborhood this week." All three are scripts designed to prevent comparison shopping. The federal Residential Clean Energy Credit (ITC) is currently 30% through 2032 — verifiable at IRS.gov. Real solar economics don't change overnight. Defense: every door-to-door pitch should be met with "leave me the quote, I'll review it for a week and call you back." Any pressure to sign same-day is the single biggest signal of fraud.

2. Lease-vs-buy bait-and-switch. The pitch promises ownership: "You'll own this system in 20 years," "no more electric bill," "build equity in your home." The contract is actually a 25-year solar lease or Power Purchase Agreement (PPA). The homeowner discovers at the closing table when selling the house that the lease must be assumed by the buyer or bought out ($10,000-$30,000), often killing the sale. Defense: read the contract before signing. Words to look for: "lease," "PPA," "power purchase agreement," "monthly payment," "escalator," "system host." If those words appear, it's NOT ownership. Ownership = cash purchase or solar loan.

3. Inflated production estimates. The salesperson claims the system will produce X kWh/year and offset 100%+ of your electric bill. The actual production is often 60-80% of the estimate because the model didn't account for shading (trees on the south side), soiling losses (5-15% annual), inverter clipping, panel degradation (0.5-1% per year), and tilt/azimuth losses. Defense: require a stamped engineering production estimate based on PVWatts or HelioScope with site-specific shading analysis. Require the contract to include a production guarantee with a refund or true-up mechanism if actual production falls short of the estimate. Reputable installers offer 90-95% production guarantees.

4. "Free solar" pitches that are actually PPAs. "Free solar for your home" is the pitch. The mechanism is a 25-year Power Purchase Agreement — the homeowner pays for the electricity the system produces at a per-kWh rate (often with an annual escalator). It's not free; it's a long-term electricity contract that may or may not be cheaper than the utility. Defense: same as #2 — read the contract.

5. Panel-manufacturer warranty backing fraud. The installer pitches "25-year manufacturer warranty" on panels and "10-year workmanship warranty." Both warranties require the manufacturer and installer to still exist when the claim is made. Many panel manufacturers have gone bankrupt mid-warranty (Solyndra, Suniva, SunEdison, Helios USA). Many small installers dissolve within 5 years. Defense: choose Tier-1 panel manufacturers with multi-decade track records (Q CELLS, REC, Panasonic — though Panasonic exited the residential panel business in 2022, the warranty is honored — LG Solar before they exited, Canadian Solar, JinkoSolar, Trina Solar). For workmanship, prefer installers with at least 5 years of in-state operating history.

6. Tax-credit timing pressure. "Sign before December 31 or you'll lose the tax credit" is a scripted pressure tactic. The Residential Clean Energy Credit is 30% through 2032, then steps down to 26% in 2033 and 22% in 2034. The credit applies in the year the system is placed in service, not the year the contract is signed. The homeowner has months, not days, to make a decision.

7. (Bonus) Roof condition not assessed. A 25-year solar system installed on a 20-year-old roof with 5 years of life remaining means $3,000-$6,000 in remove-and-reinstall cost at year 5. Defense: require roof condition assessment as part of the proposal, and either replace the roof first or include a re-set quote.

8. (Bonus) Interconnection delays not disclosed. The system is installed but cannot turn on because the utility hasn't approved interconnection. The homeowner is making solar loan payments on a system that isn't producing. Defense: require interconnection approval BEFORE installation begins, not after.

Groundcheck (earthmove.io/trust) verifies state license (C-46 / C-10 / EC), NABCEP where listed, court records (including class-action lease disputes), and phoenix-company detection. For state-specific solar licensing, see earthmove.io/trust/license/solar/[state].