The solar industry has grown rapidly, and with that growth has come a wave of bad actors – companies that use high-pressure tactics, misleading claims, hidden fees, and subpar installations to maximize their profits at your expense. These companies give the entire industry a bad reputation and leave homeowners stuck with underperforming systems, inflated loan balances, and no support after the sale.
The good news is that solar scams are easy to spot once you know what to look for. This guide covers the most common red flags, the questions you should ask every installer, and what a trustworthy solar company actually looks like.
Most Common Solar Scams and Deceptive Practices
Are Free Solar Panel Offers a Scam?
The phrase “free solar panels” is one of the most common and misleading claims in the industry. There is no such thing as free solar panels.
What “free solar” typically means is one of two things:
- A solar lease or PPA: A third-party company owns the panels on your roof and charges you a monthly fee or per-kWh rate. You get solar with no upfront cost, but you also do not own the system, do not qualify for the tax credit, and may pay more over the lease term than you would have with a loan or cash purchase.
- $0-down financing: This is legitimate – it means you finance 100% of the system and own it from day one. But calling it “free” is misleading because you still have monthly loan payments.
If someone tells you solar is free, ask: “Who owns the system?” If the answer is not you, it is not free – it is a rental.
How Do High-Pressure Solar Sales Tactics Work?
Some solar companies use aggressive sales tactics designed to get you to sign a contract before you have time to think, compare options, or do your research. Common high-pressure moves include:
- “This price is only available today.” Legitimate solar pricing does not expire at midnight. If an installer cannot honor the same price tomorrow, the price was inflated to begin with.
- “Your neighbor just signed up.” Name-dropping neighbors (real or fictional) to create social pressure and urgency.
- Refusing to leave a written proposal. If a company will not give you a written quote to review on your own time, they do not want you comparing it to competitors.
- Multi-hour in-home presentations. Some companies send two-person “closing teams” to your home for 3–4 hour sessions designed to wear you down until you sign.
A trustworthy solar company presents information clearly, answers your questions, gives you a written proposal, and gives you time to make your decision. Period.
What Are Hidden Dealer Fees in Solar Financing?
This is one of the most widespread and least understood problems in the solar industry. Here is how it works:
- A solar company quotes you a system price of $25,000.
- They offer $0-down financing, which sounds great.
- But the lender charges the solar company a “dealer fee” of 15–30% to originate the loan.
- The solar company rolls that fee into your loan balance – so you are actually financing $29,000–$32,500 for a system worth $25,000.
- You are paying interest on $4,000–$7,500 of bank fees that provided zero value.
Many homeowners never realize this happened because the inflated number appears as a single “financed amount” on their loan documents. Always ask: “Is the financed amount the same as the system price? Are there any dealer fees, closing costs, or origination fees rolled into my loan?”
Gold Path Solar offers financing with zero closing costs – meaning your loan balance matches your actual system price. No dealer fees, no hidden charges, no inflated balances.
Get a transparent quote with no hidden fees – contact Gold Path Solar →
What Is a Solar Bait-and-Switch?
Some companies quote premium equipment during the sales presentation but install cheaper substitutes. The homeowner may not notice until they check the equipment labels on their roof – if they check at all.
Protect yourself by:
- Getting specific equipment makes and models listed in your contract
- Verifying the installed equipment matches the contract before signing off on the project
- Asking for equipment spec sheets so you can compare what was promised vs. what was installed
Are Door-to-Door Solar Sales Legitimate?
Door-to-door solar sales are legal, and some legitimate companies use this method. However, door-to-door is also the channel where the most aggressive and deceptive practices occur. Common issues include:
- Sales reps who are independent contractors paid on commission, incentivized to close at any cost
- Inflated savings projections designed to make the deal look better than it is
- Contracts signed under pressure before the homeowner has done any independent research
- Reps who misrepresent themselves as working for or with the utility company
If a door-to-door rep visits your home, there is nothing wrong with listening. But never sign anything on the spot. Take the information, do your own research, get competing quotes, and make your decision on your own timeline.
[INSERT IMAGE: Infographic showing the most common solar scam tactics with warning icons]
How to Choose a Trustworthy Solar Installer
What Questions Should I Ask a Solar Company Before Signing?
Before committing to any solar installer, ask these questions and evaluate the answers carefully:
About the company:
- How long have you been in business? Look for companies with at least 3–5 years of operating history. Fly-by-night companies may not be around to honor warranties.
- Do you use your own installation crews or subcontract? In-house crews mean better quality control, accountability, and communication.
- How do you find your customers? Companies that rely on expensive lead generation (purchased leads, door-to-door teams) build those costs into your price. Referral-driven companies have lower customer acquisition costs and pass the savings to you.
- What is your BBB rating and Google review average? Check independently – do not rely on claims.
- Will I have a single point of contact throughout the project? Or will I be handed off between departments?
About the quote:
- What specific equipment (panels, inverters, racking) will be installed? Get exact makes and models in writing.
- Are there any dealer fees, closing costs, or origination fees in my financing? If yes, how much?
- What is included in the price? Permitting, inspections, interconnection, monitoring setup, post-installation support?
- What production guarantee do you provide? How is it calculated, and what happens if the system underperforms?
About the installation:
- Do you provide a roof penetration warranty? If they drill into your roof, they should stand behind it.
- What is the total warranty coverage? Panels, inverters, workmanship, and labor – how long does each cover?
- What happens if I need service after installation? Who handles warranty claims and how quickly?
How Do I Check a Solar Company’s Reputation?
Do not rely solely on the company’s own website or marketing. Check these independent sources:
- Google Business Profile reviews – look for volume, recency, and consistency. A company with 100+ reviews averaging 4.8+ stars is a strong signal.
- BBB (Better Business Bureau) – check their rating, complaint history, and whether complaints were resolved.
- EnergySage – a trusted solar marketplace that lists installer profiles and customer reviews.
- SolarReviews – aggregates verified reviews from solar customers.
- Ask for references. A confident installer will happily connect you with recent customers in your area.
See verified Gold Path Solar customer stories →
What Does a Trustworthy Solar Company Look Like?
Here are the characteristics that separate reputable solar installers from the rest:
Transparent Pricing with No Hidden Fees
A good installer gives you a clear, itemized proposal that matches your financed amount. No dealer fees buried in your loan, no surprise charges after signing.
In-House Installation Crews
Companies that use their own trained employees – not subcontractors – maintain higher quality standards, better communication, and direct accountability. If something goes wrong, there is no finger-pointing between the sales company and the installation company.
Dedicated Point of Contact
You should have one person who knows your project inside and out, who you can call or text directly, from the first conversation through activation and beyond. The “call our 1-800 number and explain your situation to a new person every time” model is a recipe for frustration.
Referral-Driven Growth
Companies that grow primarily through customer referrals have aligned incentives – they can only grow if their customers are happy enough to recommend them. Companies that rely on purchased leads, aggressive advertising, or door-to-door sales teams are incentivized to close deals, not create satisfied customers.
Employee Ownership
An employee-owned company means every person involved in your project – from the designer to the installer to the support team – has a personal financial stake in the quality of their work and the satisfaction of their customers.
Gold Path Solar was founded specifically to address the three most common homeowner complaints in the solar industry: confusing high-pressure sales, poor communication with call centers and 1-800 numbers, and subpar installation quality from subcontractors. Our employee-owned, referral-driven model with dedicated Solar Advocates and in-house crews is the direct antidote to every problem described in this article.
Experience the difference – get a no-pressure quote from Gold Path Solar →
[INSERT IMAGE: “What Good Looks Like” – checklist graphic showing all the positive attributes of a trustworthy installer]
How to Compare Solar Quotes
What Should I Compare When Looking at Solar Quotes?
When evaluating multiple proposals, compare these factors – not just the bottom-line price:
| Factor | What to Compare | Why It Matters |
|---|---|---|
| Cost per watt | Total system price ÷ system size in watts | Normalizes pricing across different system sizes |
| Equipment quality | Panel brand, model, wattage, efficiency; inverter type and brand | Tier-1 equipment lasts longer and produces more over its lifetime |
| Estimated production | Annual kWh projected; production guarantee terms | Higher production = more savings; verify methodology |
| Financing terms | Interest rate, loan term, dealer fees, closing costs | Hidden fees inflate your loan and reduce ROI |
| Warranty coverage | Panel, inverter, workmanship, roof penetration | Comprehensive coverage protects your investment |
| Installation method | In-house crews vs. subcontractors | In-house = better quality and accountability |
| Company reviews | Google, BBB, EnergySage, SolarReviews | Verified track record of customer satisfaction |
A quote that is $2,000 cheaper but uses budget equipment, rolls $4,000 in dealer fees into your loan, and is installed by subcontractors is not actually cheaper – it is more expensive and riskier in every way that matters.
For a complete breakdown of what solar costs and what you should expect to pay, see our solar panel cost guide.
What to Do If You Think You Were Scammed by a Solar Company
If you have already signed a contract and believe you were misled, here are your options:
- Check your cancellation period. Most states require a 3-day right of rescission for contracts signed outside the seller’s place of business (including door-to-door sales). If you are within this window, cancel in writing immediately.
- Review your contract for discrepancies. Compare what was verbally promised to what is written in the contract. If there are material differences, document them.
- File a complaint. Report the company to your state’s Attorney General office, the Better Business Bureau, and the Federal Trade Commission (FTC).
- Consult a consumer protection attorney. If you believe you were defrauded, legal counsel can advise on your options.
- Leave detailed reviews. Sharing your experience on Google, BBB, and solar review platforms helps warn other homeowners.
Frequently Asked Questions About Solar Scams and Choosing an Installer
How do I know if a solar company is legitimate?
Check their BBB rating, Google reviews, years in business, state licensing, and whether they use in-house installation crews. A legitimate company provides written proposals, answers all questions transparently, and never pressures you to sign immediately.
Is solar a pyramid scheme?
No. Solar energy is a proven technology installed on millions of homes worldwide. The financial savings are real and well-documented. However, some individual companies within the industry use deceptive marketing or aggressive multi-level sales structures. The technology is legitimate – be careful about the company.
Should I get multiple solar quotes?
Yes. Getting 2–3 quotes allows you to compare pricing, equipment, warranties, and company quality. Just make sure you compare apples to apples – the cheapest quote is rarely the best value.
What is the biggest red flag when buying solar?
Any company that pressures you to sign a contract immediately, refuses to provide a written proposal for you to review independently, or cannot clearly explain every cost in your quote. Transparency and patience are the hallmarks of a trustworthy installer.
Are solar panels from Costco or Home Depot a good deal?
Big-box retailers sometimes offer solar through third-party installers. The equipment may be decent, but you lose the personalized service, dedicated project management, and in-house installation quality that a local, specialized installer provides. You are also adding a middleman that takes a cut, which either raises your price or reduces the quality of service.
Ready for a Solar Experience You Can Trust? Talk to Gold Path Solar →