The 7 Most Common Solar Scams in 2026
The solar industry is expected to install over 6 million residential systems by the end of 2026. With that kind of growth comes a predictable wave of fraud, deception, and high-pressure sales tactics targeting homeowners who want to save money on electricity but don't know the details well enough to spot a bad deal.
These are the seven most common solar scams we're tracking this year, how they work, and how to protect yourself.
1. Door-to-Door High-Pressure Sales
A clean-cut rep shows up unannounced. They're friendly, urgent, and armed with a tablet showing your "personalized savings." The pitch escalates: "We're only in your neighborhood this week." "This price expires today." "Your neighbor just signed up — do you want to be the one still paying the utility company?"
How it works: Door-to-door solar reps are typically commission-only salespeople working for large national companies. Their entire income depends on getting you to sign today. The "limited time" pricing is artificial. The "custom quote" on the tablet is a template with your address plugged in. The savings projections are based on the most optimistic assumptions possible.
How to protect yourself: Never sign a solar contract on the same day someone knocks on your door. Take their card, tell them you'll research and call back. If the price is "only good today," it's not a price worth paying. Legitimate solar companies don't operate on artificial scarcity. If you did sign, you have a 3-business-day right of rescission under FTC rules for door-to-door sales.
2. Fake Government Solar Programs
"You've been selected for a government solar incentive program." "The Biden solar initiative covers 100% of your installation cost." "Free solar panels from the government." These claims appear in robocalls, social media ads, mailers, and door-to-door pitches.
How it works: There is no government program that gives homeowners free solar panels. The federal Investment Tax Credit (ITC) is a 30% tax credit — meaning you reduce your tax bill by 30% of the system cost. It's not a grant, not a rebate check, and not a free installation. Companies use the words "government program" or "federal incentive" to create the impression of a handout. What they're actually selling is a lease or PPA where you don't own the panels and the company claims the tax credit.
How to protect yourself: Any company claiming to represent a "government solar program" is misrepresenting the facts. The government offers tax credits through your tax return, not through solar companies. Check irs.gov for current ITC details and your state energy office for legitimate state incentives.
3. Bait-and-Switch Equipment
The proposal shows premium equipment — Tier 1 panels, Enphase microinverters, a Tesla Powerwall. The contract uses generic language like "comparable equipment" or "equivalent or better." What gets installed on your roof is budget-tier panels from a manufacturer you've never heard of.
How it works: The installer quotes premium equipment to win the deal, then substitutes cheaper components to increase their margin. The "comparable equipment" clause in the contract gives them legal cover. By the time the panels are on your roof, you're unlikely to climb up and check serial numbers against the proposal.
How to protect yourself: The contract must specify the exact make, model, and quantity of every component: panels, inverters, racking, and battery (if applicable). No "or equivalent" language. Get the serial numbers of installed equipment at completion and verify them against the manufacturer's database.
4. Inflated Production Estimates
The proposal says your system will produce 12,000 kWh per year and eliminate your electric bill. After installation, it produces 8,500 kWh. Your bill drops, but not nearly as much as promised. The installer points to weather, shading, and the fine print.
How it works: Sales reps use optimistic assumptions — perfect southern exposure, no shading, maximum sun hours, minimal degradation — to inflate production estimates by 20% to 40%. Some use outdated weather data or ignore partial shading from nearby trees and structures. Higher projected savings make the deal look better, especially when calculating loan payments vs. bill savings.
How to protect yourself: Ask the installer to run a site-specific shading analysis (using tools like Aurora Solar or Helioscope) and share the report with you. Compare their production estimate with the PVWatts calculator at pvwatts.nrel.gov — a free tool from the National Renewable Energy Laboratory that estimates output based on your location, roof orientation, and tilt. If the installer's estimate is more than 10% above the PVWatts estimate, demand an explanation.
5. Signing on a Tablet Without Reading
The rep hands you a tablet and asks you to sign. The contract is 20 pages of dense text on a 10-inch screen. You scroll through, sign at the bottom, and the rep leaves. You never receive a full printed copy. Two years later, you discover an escalator clause that increases your payments 2.9% annually, a 25-year term you thought was 20, and a buyout clause that costs $18,000.
How it works: Digital contracts on tablets are designed for speed. Small screens make it physically difficult to read the full text. The signing interface buries critical clauses behind scrollable pages. The rep controls the pace, swiping past sections and saying "this is just the standard stuff."
How to protect yourself: Demand a paper copy or PDF of the full contract before you sign anything. Take it home. Read it at your own pace. Have a family member or attorney review it. Any company that won't let you take the contract home overnight does not deserve your business.
6. The "Free Solar" Lie
"Get solar for $0 down!" "Free solar panels for qualifying homeowners!" These ads are everywhere — social media, Google, mailers, radio. They imply you get solar at no cost. The reality is very different.
How it works: "Free solar" means one of two things. Either you're signing a lease where you pay a monthly fee for 20 to 25 years (total cost: $30,000 to $45,000), or you're signing a Power Purchase Agreement (PPA) where you buy the electricity at a set rate that may increase annually. In both cases, you don't own the panels, you don't get the tax credit, and you can't sell them. The "free" part refers only to the upfront cost.
The math: A homeowner who buys an 8 kW system for $24,000 and claims the $7,200 ITC pays $16,800 net. A homeowner who gets "free solar" through a 25-year lease at $120/month pays $36,000 total. The "free" option costs more than twice as much.
How to protect yourself: Any time you see "free solar," mentally replace it with "solar with no money down." Then calculate the total cost over the full contract term. Compare that to the cost of ownership with financing.
7. Predatory Power Purchase Agreements
A PPA sounds reasonable: the solar company installs panels on your roof for free, and you buy the electricity they produce at a rate lower than your utility. But the devil lives in the escalator clause, the transfer terms, and the buyout penalties.
How it works: The PPA starts at a competitive rate — say $0.11/kWh when your utility charges $0.14/kWh. But a 2.9% annual escalator means you're paying $0.22/kWh by year 25. If utility rates don't keep pace (the national average increase is about 2% per year), you end up paying more for solar electricity than you would have paid the utility. Meanwhile, the panels are on your roof, you can't remove them, and the buyout to end the agreement is $12,000 to $25,000.
When you try to sell your house, the buyer must qualify for and agree to assume the PPA. Many buyers refuse, and you're left paying the buyout to close the sale.
How to protect yourself: If you sign a PPA, insist on 0% escalation or no more than 1%. Calculate the total cost at year 10, year 20, and year 25. Get the buyout schedule in writing. Understand the transfer requirements. Better yet, own your system — the total cost of ownership is almost always lower than a PPA over the full term.
How to Verify Any Solar Company
Before signing with any solar company, run this checklist:
- Verify their contractor's license with your state licensing board
- Check for complaints with the BBB and your state attorney general
- Search for lawsuits on your state's court records database
- Look up NABCEP certification at nabcep.org
- Read recent reviews on Google and the BBB (not their website testimonials)
- Ask for at least three references from customers with systems installed 2+ years ago
- Verify the specific equipment they propose with the manufacturer's dealer locator
Bottom Line
Solar technology is legitimate. Solar scams are about the business practices, not the panels. Every scam on this list relies on the same thing: the homeowner not reading the contract, not running the math, or not taking the time to verify claims. Get three quotes. Get the cash price. Read every page of the contract. Use PVWatts to check production estimates. And never, ever sign on the same day someone knocks on your door. The right deal will still be the right deal next week.
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The Consumer Clarity Editorial Team
Our editorial team researches consumer topics independently, analyzing contracts, complaints, and industry data. We accept no sponsored placements and disclose all affiliate relationships. Every guide is reviewed for accuracy before publication.